Fix and Flip Real Estate Investing | Types of Contractors

In today's video, we're going to talk about different type of contractors and which is the best one for your next flip. Coming up next. One of the most important and difficult things investing in real estate is finding a good contractor. Contractors can be hard to find, expensive, take a long time, or even quit on you. It's important that you take the time to find the right contractor for your job. Take my word for it. I have over 40 years of experience as a broker, mentor, and investor. This channel is for the new and experienced investor, those who want to create the life they've always wanted through real estate. Make sure that you subscribe so you never miss a thing. Let's go over the type of contractors. First, you have the low-end contractor. Then you've got the middle of the road, and then you have that high-end contractor. How many flips have you completed? Let me know in the comments section below. Let's talk about low-end contractors. These are the contractors that may not even be contractors. It can be subcontractors, they can be guys that do a great job but are not licensed, and then that's why you can get them for less than a contractor. But I would be careful with these type of contractors because if they do something wrong on the job site or, or do something that's not correct, you're on the hook for it, not them, or not the general contractor, which is what you should be looking for. Stick around because I'm going to give you some tips when meeting with contractors to make sure everything goes smooth for you. When's a good time to use a low-end contractor? I would say handyman type jobs, replacing a faucet, Installing a dishwasher, things of this nature that, you know, it's not really difficult to mess up on something like this. Next we have the average contractor. Now this is a contractor that you'll hear on websites or hear on talk radio or see on websites. Contractor-friendly. Okay, these are the middle of the road. These are the type of people that you should be looking for. Again, not the high-end contractor and then not the low-end contractor, but somebody right in the middle of the road. Has a contractor's license, has a crew of people that are competent to do the job. If they don't do the job, you go right back to that contractor and tell them to correct it. All errors are on them. Because they do have that expertise, but maybe not as expensive as a high-end contractor, which we'll talk about later. Last, we have our high-end contractors. These are contractors that work on high-end properties where, you know, people are expecting a lot more from their flip, so to speak. For example, You know, middle-of-the-road stuff comes, you know, maybe from Home Depot or Lowe's. High-end contractor stuff, tile work, and, you know, maybe imported from Italy, things like that. So the grade of material is going to be higher, and thus this high-end contractor is putting in better material so that at the end of the day, this house looks 10 times better than something at the lower end of the scale. Okay, and why don't I use these types? is because they're really expensive. And that's a great decision that you have to make. You could actually flip on the high end, and I'm talking about, you know, $1.5, $2 million and above. I don't flip in that high of a range because it takes a long time to do the flip through the general contractor. And also, once you put it on the market, it takes a long time to sell the property. So I'm right in the middle, $500,000 to $600,000 here in California. And that's pretty much my cookie-cutter range. And that's why I use the more investor-friendly, middle-of-the-road contractor. So how do you find an investor-friendly contractor? The best way to find a good contractor is through a referral from a house flipper, an investor, or property manager. Always get multiple bids from various contractors to make sure that you're getting a good deal. Here are a few tips when meeting with contractors. Be sure to get all the bids in writing and make sure that they're very detailed. If the contractor says, I will paint the exterior for $2,500, does that include the doors? Get down to the nitty-gritty. Make sure everything is in writing so it'll save you a lot of stress between you and the contractor in the future. Also, determine how you're going to pay the contractor for the work that's performed. Finding the right contractor can mean Finishing your job on time or going over budget. The difference between making a profit or breaking even. Take the time to communicate your expectations. Pay attention to detail and always do your due diligence. If you want to see some flips my team and I are working on right now, click on this video right here. And as always, make sure to subscribe and know that I'm always here to help.