Finding & Keeping Good Contractors!

TL;DR

Treat contractors as team members to find and keep the best.

Transcript

first I want to reiterate that point that too often we think of our employees as our team and our contractors as something other than our team but they're all on our team we should be treating our contractors the same way we treat our employees treat them with respect treat them fairly treat them well and treat them like demon worship so let's go o... Read More

Key Insights

• Treat contractors as team members, not adversaries, to foster better working relationships and ensure mutual success.
• Finding good contractors is challenging but can be facilitated through referrals from great contractors and investors.
• Visit supply stores early in the morning to identify hardworking and reliable contractors who start their day early.
• Maintain a continuous recruitment process for contractors to adapt to changing needs and unexpected circumstances.
• Set clear expectations and agreements with contractors through detailed contracts to avoid misunderstandings.
• Contracts should include terms for penalties, lien waivers, and handling of change orders to manage potential disputes.
• Balance the trade-off between quality, speed, and cost when selecting contractors, as achieving all three is unlikely.
• Developing expertise in contractor management is crucial for the profitability and success of real estate flipping projects.

Questions & Answers

Q: How can you find reliable contractors for house flipping?

Reliable contractors can be found through referrals from other great contractors and investors. Visiting supply stores early in the morning is another effective strategy, as it helps identify contractors who start their day early and are likely hardworking and dependable.

Q: What should you include in contracts with contractors?

Contracts with contractors should include clear terms on scope of work, payment schedules, penalties for non-performance, lien waivers, and procedures for handling change orders. These elements help manage expectations and provide a framework for resolving disputes if they arise.

Q: Why is it important to treat contractors as team members?

Treating contractors as team members fosters a collaborative environment where both parties work towards mutual success. It helps build trust, ensures better communication, and ultimately leads to more successful project outcomes. This approach also reduces adversarial relationships.

Q: What are the trade-offs when selecting contractors?

When selecting contractors, you typically have to choose between quality, speed, and cost. It's rare to find a contractor who excels in all three areas, so you must prioritize based on your project's needs. For instance, you might prioritize quality and cost over speed.

Q: How can you keep good contractors once you find them?

Keeping good contractors involves treating them with respect, maintaining clear communication, and ensuring fair compensation. Having clear contracts and managing expectations also helps. Building a long-term relationship by providing consistent work can incentivize contractors to stay.

Q: What role do early morning visits to supply stores play in finding contractors?

Early morning visits to supply stores help identify contractors who start their day early, indicating diligence and reliability. These contractors are likely to be more committed and organized, qualities that are valuable in ensuring timely and efficient project completion.

Q: Why is continuous recruitment of contractors important?

Continuous recruitment is important because contractor availability can change due to various reasons, such as business growth or personal issues. Having a recruitment process ensures you have a pool of contractors to draw from when needed, minimizing project delays.

Q: How can expertise in contractor management impact real estate flipping projects?

Expertise in contractor management is crucial for the profitability of real estate flipping projects. Effective management ensures projects are completed on time, within budget, and to quality standards, directly affecting the return on investment and overall success of the venture.

Summary & Key Takeaways

• Treat contractors as valuable team members to improve relationships and project outcomes. Seeking referrals from reputable contractors and investors helps build a network of reliable professionals. Early morning visits to supply stores can also help identify diligent contractors.

• Continuous recruitment and clear contracts are essential for managing contractors effectively. Contracts should outline expectations, penalties, and procedures for change orders to prevent disputes. Balancing quality, speed, and cost is key to selecting the right contractors.

• Understanding contractor management is vital for successful real estate projects. While the goal is to profit from flipping houses, expertise in handling contractors ensures the business remains profitable. Engaging with the community and learning from experienced investors can provide valuable insights.