fliprent

I like to get at least three proposals for all my trades.  Plumbing, electrical, and HVAC are usually referred to as the trades.  Although I have specific subcontractors that I like to use, they are not all built the same.  Some are good for small jobs that don’t require permits.  Some are good for my large scale rehabs, which require new installation of pipes, duct-work, and electrical wiring.  Some subcontractors show up when they say they will, take pride in their work, and finish quickly.  Others will drag your job out, ask for more money, and drag it out some more.  When it comes to price and reliability, all contractors generally fit into three categories.  Fast and expensive, slow and cheap, or what I like to call buyer beware.  There is a gray area in each of the categories, but that’s generally what you get. 

Buyer beware is by far the worst kind of contractor and they exist everywhere.  The usual suspects will take a down payment, start the job, cry broke for another payment and disappear.  If you are working with a general contractor it can get even worse.  There will be strangers knocking at your door in a few days.  The conversation will start something like:

“I’m looking for Bob because he owes me money.  What money? you ask , I’ve already paid him for that job.” 

Yes but he was supposed to pay his subcontractors out of that money too.  When they disappear, they don’t normally stop to pay the subs on the way out of town.

How to protect yourself

The best way to find a reliable contractor is through referrals.  You want to ask as many people as you can. Ask if they know of a good reliable contractor for plumbing.  Normally folks are happy to give you the names of contractors that they have used in the past.  The exception to this is when you are in a rehab area.  When you are rehabbing houses in a hot area with other rehabbers, there will be a challenge to find good subcontractors.  No one wants to share them for fear of slowing down their own job.  The subs however, don’t care and are happy to take your job.  Be careful however.  This is a very competitive arena. 

If you do end up using the yellow pages, always get referrals.  Make sure to call the previous customers and ask questions.  Ask them if they are happy with the work.  Did the contractor show up when they said they would?  Did the contractor ask for additional money before finishing the job?  If there were problems with the job, did the contractor come back to fix them?  Also ask them if you to see the work that they did. 

I have used services like servicemagic.com and contractor.com to some degree of success.  You will nevertheless need to get names and phone numbers of past customers.  I use a great method that I like to call the drive by.  When I see contractors working on a house, I pull over to talk with them.  If I’m lucky, I accomplish two things this way.  Along with obtaining a contact, I get to see the work in progress.    

Once you have some contact information, schedule at least three to look at your job.  Flipping houses can be a steep learning curve in the beginning.  The contractors notice when you don’t know your stuff and some of them will use that against you. Be sure to get license and insurance information.  Many states now require home improvement licenses for contractors as well.  Avoid paying money up front for any service. In some cases the contractor will require money down in order to purchase materials. One third is the most that you will pay up front for any part of the job. I will write another post about working with contractors which will go into more detail. Do your homework, take multiple bids, and use referrals.  Follow these steps and you will surely find that right man (or woman) for the job.