Fix & Flip - Where can you lose out? Part -3 - Contractors
Fix & Flip - Where can you lose out? Part - 3 - Contractor.
Number 3 is the contractors. Not all the contractors, but some contractors who will not be trustworthy and will not do the job.
Welcome to Wealthy Wednesday. So, finding the right contractor, finding the right handyman to get the repair done for your fix and flip is very important. So there are two things you can do either or.
If you have time to manage and monitor the work, then you can find one handyman or one contractor for each job. For example, someone is doing the bathroom, someone is doing the air conditioning unit, or someone is doing the painting inside and outside, someone doing the flooring. So that's the way you don't have to depend on only one contractor.
Then number two you can do is hire somebody. If you don't have time, hire somebody trustworthy because you need a trustworthy person. If you get a bad contractor, they can really eat up your profit.
A little story. One of my friends and he's been doing investment for a long time. And I was talking to him about one of the properties. A couple of years back, that property you can get repaired at around $30,000- $35,000. He ended up spending $60,000 on that property.
Why? Because he had to fire two contractors and get the work finished by the third contractor. So it's a hassle. It took time, the work, he could get it done in a month and a half, which took six months.
So be very careful picking up the right contractor because even though they're just the contractor, you are paying them the money. But they are actually your business partners indirectly, because they have to do a great job for you to flip the property and make a good profit on that property.
Feel free to give me a call if you have any questions. My name is Shawn Bhakta from Remax Presidential. I'll be happy to help you.