For those who don’t know me, my name is Donald Deadwyler, and I’m a full-time real estate investor or rehabber. I buy houses to rehab and bring refurbished houses to market to meet the needs of new homebuyers. I’ve learned how to work with general contractors and why they like working with me.
A contractor wants to know that the rehabber is a professional. He wants to know that the rehabber does quality work. Work the contractor wants to be proud of when he completes the project.
How to work with general contractors
- I never hire the cheapest contractor. I may get multiple bids for a project, but the cheapest bid gets thrown out. Usually, the cheapest bidder will deliver unacceptable work or find ways to bill me more money. I have learned that the contractor with the lowest bid has underestimated the job, which translates to him putting my job second to other jobs and the work becomes sub-par.
- Don’t always use the same contractor. I find I need a handful that I call on. If I use the same contractor all the time, the contractor tends to get complacent. Then things start getting slightly more expensive, your jobs start taking a back seat, and the work begins to become less quality. Competition is good.
- I always use a licensed and bonded contractor. Through my experience, licensed and insured contractors will be a little bit more expensive, but they typically do a better job and are safer at work. To me, it signals professionalism.
- I don’t pay contractors all upfront. I may pay 20% up front and the rest at the end or something similar. That keeps a general contractor motivated to continue the job and do it with excellence.
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