If you have done any kind of real estate investing, you must have at one point considered using a contractor and as such, you probably know that trying to manage a contractor is not an easy task.
Unfortunately, contractors do not have a very good reputation. Most real estate investors consider them difficult to work with, irritable, pugnacious, irrational and volatile. The good thing is that they are very good at what they do and this is what makes them worth the trouble.
The Four Step Formula To Success And Profit With Your Contractor
There are a few things that can help you manage your contractor and make a profit.
Setting A Defined Timeline
To avoid dragging your house flipping projects, ensure that you create a definite timeline because this will create a structure for your contractor. Contractors are normally extremely busy so giving them a definitive timeline is very important.
If you miss a target, and this will happen at one point, do not get stressed out provided it does not become a habit. Ensure that you always hold your contractor accountable and try as much as possible to stick to deadlines.
Do Not Be Afraid To Fire Your Contractor
Itâ€™s not fun firing contractors but sometimes it becomes necessary. if your contractor continues to miss deadlines and sets your projects back, first address the issue. If they still do not get on track then you should give them another warning. If you have to keep warning them about lagging behind over and over then you fire them.
A three strike policy is a great rule to apply when dealing with contractors. Donâ€™t blame your contractor if your house flipping career doesnâ€™t take off; you should blame yourself for not taking corrective action. Remember that firing your contractor should not affect you emotionally. Eventually you will be able to find a contractor who is willing to work as hard and see you succeed in house flipping.
Always Pay Your Contractors On Time
Paying your contractor on time is important because they also need to pay their people on time. this makes the entire house flipping process go smoothly. Not paying your contractor on time is a great way of running your relationship.
It is very important that you treat your contractors with respect. Once in a while you can treat them to beers after work or surprise them with a tray of coffee in the morning. Itâ€™s the little things that will make them appreciate working for you.
If you stick to the above tips, you will be able to manage your contractor better and your house flipping business will be much more profitable.
If youâ€™ve come this far, please leave a comment below. Iâ€™d love to know what you think of the above tips for managing a contractor.