ehabbing houses is an Bureau choose your contractor.
outstanding way to increase
your profits from real You may be tempted to call your
estate investing. When you put local Better Business Bureau to
some work into a fixer upper, not see if they have anything on file
only are you virtually guaranteed for a prospective contractor.
to explode your profit potential, This might give you reason to
but you also make a positive eliminate a contractor from your
contribution to the neighborhood. list, but it won't tell you what
you need to choose one. Remember,
If you are an experienced the Better Business Bureau is
do-it-yourselfer, you may be primarily a collector of
tempted to do your own rehabbing complaints. The lack of
work. However, most real estate complaints against a contractor
investing experts recommend doesn't mean the contractor is
hiring a contractor to manage qualified.
your rehabbing project.
Don't over-value experience.
Choosing a competent contractor
requires more than a quick walk It's easy to compare contractors
through the yellow pages. You by the years of experience they
need to learn all you can about have. However, experience alone
prospective contractors. The doesn't always translate directly
contractor's ability to do into high-quality work. A
quality work is important, but contractor could have been doing
your focus should be on finding substandard work for his entire
someone you are comfortable career. Go beyond the numbers and
working with. evaluate their work.
Don't let the Better Business Beware of high-pressure pricing
tactics. same page. You're going to be
spending a lot of time working
Both of you are professionals and with each other. Being able to
there's really no need for the communicate with each other
use of force. If you feel accurately and effectively will
pressured when negotiating with a make the rehabbing project go
potential rehabbing contractor, much more smoothly.
don't be shy about asking him to
back off. If that doesn't work, The lowest bidder may not be your
don't hesitate to look for best bet.
another prospect.
Price should not be your only
Beware of big down payments. consideration for choosing a
rehabbing contractor. You should
You should be able to negotiate a decide ahead of time exactly what
reasonable down payment and a level of services you want done.
fair payment schedule. Typically, Your goal should be value. If the
you should expect to pay no more contractor you feel best about
a third of the total rehabbing has a bid that's too high, you
cost in a down payment, with the can always ask for a lower price.
remainder paid out as work is
completed. If the contractor asks A good general contractor will
for most of the money up front, make your rehabbing project go
that could indicate he has a more smoothly. A smoother, more
shaky financial condition. efficient rehab means more
profits for you. These tips
Good communication is a must. should help you find a contractor
that not only is competent, but
You and the contractor should is also enjoyable to work with.
easily find yourselves on the
About the Author:
Author - Mark Walters is a 3rd generation real estate investor and author. He offers a FREE Real Estate Investing Video & Audio Series at http://www.CashFlowInstitute.com
Read more articles by:
Mark Walters
Article Source: www.iSnare.com 
