Choosing the right contractor for your home flipping project is one of the most critical parts of the entire project. To properly make this decision, it is best to interview several contractors before selecting the right one for your job.
Naturally, there are many things you can learn from your contractor while you are going through the interview process. But, not all of that information is valuable. To help fine tune the information you receive and make it more valuable, here are 10 questions you will definitely want to ask.
1. What history do you have in this industry?
This question has a couple of different benefits. For starters, it could help you determine whether the contractor is licensed and carries the proper amount of insurance. On the flip side, it also allows you to discover more about the contractor’s experience and knowledge.
2. Who will be on site throughout the project?
When you are going through the interview process, you need to determine how the contractor plans to manage your project. This is especially important when it comes to the supervision of subcontractors. You can also use this question to determine if your contractor has their own set of employees or if they plan to rely solely on subcontractors.
3. What timetable do you expect to follow?
Knowing when your project will be finished is important, especially when you are looking to flip the home. Your contractor should be able to detail the expected timetable so that you can plan for the finish date. Along with this question, you should also inquire how accurate their timetable normally is.
4. Do you have references I can contact?
References are one of the most important parts of any contractor interview. When you do ask for them, make sure they are ones you can contact. The best references are those that will actually allow you to see the work for yourself.
5. How will we communicate?
Deciding how and when you will communicate with your contractor is also something you will need to establish ahead of time. Along the way, both parties will need to ask questions and you need updates on the project as a whole. Having a timetable and a plan for communication is one of the best ways to keep the project on schedule and to avoid mistakes being made.
6. What type of contract will we create?
When you are creating a contract with your contractor, you should look for one that is as detailed as possible. It should include things like payment schedules, specific dates, the exact scope of the work and a number of other important sections.
7. When do you expect payments?
Paying a contractor a portion of the project fees upfront can be expected. For the most part, paying 1/3 of the total at the beginning, another third part way through, and the final third after the project, is complete is the best option. Avoid contractors who request the full amount at the beginning of the job, especially when their reason for needing the money doesn’t sound legitimate.
8. Do you provide itemized bids?
Receiving an itemized bid can allow you to determine the full cost of the project. Some contractors will only create a bid for a portion of the entire project, which could leave you well over budget when everything is said and done. An itemized bid can help you avoid this situation.
9. What suppliers do you use?
Knowing more about the suppliers the contractor uses will allow you to get a glimpse into the quality of work the contractor provides. If the contractor doesn’t use trustworthy or quality suppliers, this is likely to be a reflection of the completed project.
10. What guarantees do you offer?
Many contractors offer guarantees or warranties on the work they produce. This could be related to their actual craftsmanship or the products they have included in your project. Gathering these expectations at the beginning can help you make a better decision.
These questions will allow you to find the best contractor for your home flipping project. Make sure you keep them in mind while you are interviewing contractors for your project.
To learn more about financing for your home flipping project, contact us today. We will discuss with you all your lending options so you can find the best loan to fit your needs.
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.
