How to Find the Right Contractor

If you are planning to develop on your real estate, you are going to need a quality contractor. The right contractor can be the difference between profitability and financial ruin for a real estate investor. A good contractor will charge you a reasonable fee and add value to your property, while a bad one can overcharge you and do shoddy work that can cost you thousands.

Contractor Finding Tip No. 1: Check References

Your building contractor needs to be insured, licensed and bonded by the state where you are building. Contact the contractor state licensing board, either by phone or online, to get this information. You should also check with the Better Business Bureau to find out if anyone has registered any complaints about this particular contractor. Ideally, you found your contractor through other developers who have had a good experience. If not, you can ask the contractor to put you in touch with references as to the quality of his work.

Contractor Finding Tip No. 2 Comparison Shop

Get bids from a few different contractors just to see what the market rate is for the work that you need done. You won’t necessarily go with the cheapest contractor, as bad contracting work can cost you more money down the road. The idea is simply to get a sense of a range of what the contractor should be charging.

Contractor Tip No. 3: Watch Out For Con Artists

Some “contractors” may ask for all of the money for the job upfront, then disappear before the job is finished. Deal with this problem by agreeing to pay only for each step in the process as it is completed. Others may use substandard materials. Enlist a building inspector to make sure this kind of fraud is not taking place. If a contractor offers an unusually low price, much lower than other contractors, something may be amiss. Make sure the contractor is reputable and that you have a contract in writing for the work to be done and the price to be paid.

Contractor Finding Tip No. 4: Maintain The Relationship

Once you’ve found a great contractor, hang on to him. For one thing, a good, reliable, reasonably priced contractor can be heard to find. For another, if a contractor sees you as a source of repeat business, he may give you a considerable discount, which can save you a great deal of money over the long term.