How to Find a Contractor Who Works FAST & Scopes Properties FOR You

"And that's not going to hurt your credibility much with the contractor."

"I think if you are walking properties with contractors before you have them under contract, if you do that too many times, it could damage your relationship with that contractor if you don't have a history of closing or doing deals before."

"And you'll have a whole lot more credibility when you say, "Hey, I've got this under contract. I need an accurate bid for the renovation.""

"Now, if you just have a contractor do this over and over again and not ever award them a job, then uh it's going to be hard to get them to want to continue to do these for free."

"And because you've paid them for their time and paid them to give you a bid, you're now probably going to get a much more detailed bid and get it in a timely manner."

"when you're speaking in hypotheticals, it's hard for a contractor to give you anything accurate. and they don't know you from Adam, so they don't know if you're actually going to do the things that you're saying you're going to do. So, they may struggle to want to give you the time of day in order to do that."

"But when you have a deal under contract, you have something tangible that they can go bid. That always helps build credibility because now they're bidding an actual job. You've already proven that you're willing to go out, make offers, and get things under contract. You've proven that you're trying to do a deal."

"I found that if I have contractors who know that I'm getting multiple bids, they're either going to give me a good bid and compete for the job or they're not going to compete for the job cuz they don't want to."

"So creating that sense of urgency and competition will sometimes help kind of shine a light on who the contractor is that you should go with before you even get a bid."

"For the record, this will happen to you. It happens to every real estate investor."

"And when you have a signed contract by both parties, it then gives you something that you can do when these situations come up because now you can hold them legally accountable to what they agreed to do. If there's no contract in place, you technically don't have any legal way to hold them accountable to anything because you guys never agreed to anything upfront."

"The problem with that is since there is no contract, there's nothing stopping the contractor from saying, "Well, I'm going to put a lean against this property since you're not paying me for work that I feel like has been done already." And it's really just your word against theirs. And it's very easy in almost every state for a contractor to just put a contractor's lean against your property."

"And now you can't sell that property until that lean is cleared up."

"I don't think you can have penalties without bonuses. I don't think you'll get a contractor to sign off on a contract that has penalties if they don't finish on time or on budget without having some bonuses if they finish ahead of time."

"if they have incentive to get done faster and they know they can get done faster, this will help them prioritize your job. Because if they're working multiple jobs, but they have some flexibility on the time frame of the other jobs, they're more inclined to shift resources to your jobs to finish your job faster because they're financially inclined to get paid sooner."