House flipping has morphed into a popular real-estate trend. Individuals who engage in this practice purchase properties cheaply priced for a variety of reasons, make any needed repairs or upgrades and sell the dwelling for a potentially lofty profit.
That said, many wise decisions often go into achieving success in this endeavor. Amongst the most important choices house flipping professionals render is deciding upon the best contractor. Prior to hiring who will oversee the renovations, individuals should engage in the following actions:
Reputable and efficient contractors typically enjoy solid reputations. House flippers not familiar with a specific region should obtain referrals. Homeowners often recommend contractors who have performed work on their homes and done well. Industry professionals suggest obtaining anywhere from three to five references.
Ensure Contractor Possesses Appropriate Licenses And Insurance
Professional contractors will possess all the necessary licenses and insurance. Reputable professionals will not hesitate to display proof of licensure and be forthright about the insurance they carry. To confirm this information, house flipping professionals are encouraged to verify all information provided with their specific state’s contractor licensing board. All industry insiders caution individuals never to work with contractors who do not possess these vital assurances.
Obtain Multiple Bids
Do not ever jump at the first bid. Real estate professionals recommend obtaining at least three bids before making any final decision. Moreover, it is not prudent to always assume the cheapest bid is necessarily the best. Any bid that is seemingly too inexpensive is often a red flag. Remember the old adage you get what you pay for. There is nothing wrong with being economical but such aims should not come at the expense of quality.
Establish A Clear Contract
At the very beginning of the process, the flipper should disclose the work they expect to be performed and a establish a specific timeframe for the work to be completed. Legal officials suggest placing these parameters in a written contract that is read, signed and endorsed by all concerned parties.
Understand The Pay Schedule
The contractor in question should present a written cost assessment of the job’s detailing specific expenses and the expected fee schedule. This should also be read, understood, signed and endorsed by all involved parties.