Questions For Contractors
I will be beginning my first rehab project within the next 2 weeks (finally).
Here are the numbers:
ARV -70k
Purchase -17k.
My estimated repairs -12k (windows, carpet, paint, kitchen tile, bathroom, there is a hole in the floor and a hole in a bedroom wall, the roof and vinyl are new and new fixtures)
Holding 2500 (have to sell or refinance within 6 months)
This week IM having several different contractors give me estimates on repairs. I wanted to know are there any key questions I should ask. And when it comes to paying the contractors any sugestions?.....i know not to give all the money up front.
Tha ADVANCE nks[ Edited by bacardidark313 on Date 10/17/2004 ]
get current references. stay away if you cant. the low bid is not always the best bid, investigate carefully. looks can be deceiving. i know a guy drives a nices truck, pulls a nice trailer, laptop in truck, looks like a good guy to deal with, and have heard nothing good about him. if someone needs money up front, then you're financing his business. don't, unless you trust him enough to go into business with him. if they don't trust you to pay them and want money up front, offer to put into an escrow account with an attorney. if they still want money up front, find someone else.
Hi Bac,
Your state does have a licensing requirement.
you can go to www.michigan.gov/cis/0,1607,7-154-10557_12992_13953---,00,html
to verify a contractors license etc.
They should be licensed and insured.
Have them get you a copy of their workers comp and general liability certificates before they begin work.
This is a small job so payment is more negociable.
On larger jobs then it is common to have a deposit.........either way it is something that can be worked out between you and the contractor.
Ask for a flow schedule from the contractor.
You need to have a contract signed before work begins........there should be an estimated completion date as well as any details about delays that are a direct result of the contractor....penalties and such.
the site I listed is a good site full of information......you should read it.
Looks can be deceiving but at the same time, if he can afford a nice vehicle, equipment etc.......then in all liklihood he knows what he is doing....but still check references.......make sure they are references within the last year.
Hope it works out well for you.
NC_Yank
Thanks for all of your responses i really appreciate it....keep em coming
First off, it sounds like you have yourself a nice deal, congratulations. Seems everyone has given you very good information so far. Follow the advise given and you'll be fine. The work you mentioned sounds very basic (depending on what the bathroom needs). If you are saying the house is going to be worth $70k at the end of rehab, everything you or your contractor buy should be coming from Home Depot or Lowes. Good luck and remember to NEVER PAY THE CONTRACTOR MORE THAN THE WORK HE HAS DONE UP TO ! Even if he is "done" with the job, DO NOT fully pay until all the town inspections are complete. (CO's etc,etc.)
thanks for the advice ladys and gents...keep it coming i wanna know what U have to say. Yea YOU and you too