http://www.REIClub.com - How Do You Qualify Your Remodeling Contractor? Here Are Questions Real Estate Investors Can Ask Their Remodeling Contractors...
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on some good questions you can ask your Remodeling Contractors.
Be sure to grab a pen and paper, or click the the “show more” button in the description below to follow along.
Do You Carry General Liability Insurance?
- Best to find a remodel contractor that carries general liability insurance
- This type of insurance protects your property in case of damage caused by the contractor and/or his employees.
- Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance.
Will You Pull All the Required Building Permits?
- Pulling the required building permits, you know things will be done to “code."
- Not all contractors will do this
- Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors.
- Some contractors may ask YOU to get the permits - making you the General Contractor
- This could be a warning sign that they are not able to pull the permit because they are either unlicensed or the work is outside of their license.
- A reputable contractor will permit every job where a permit is required.
Do You Guarantee Your Work?
Your contractor should guarantee his work for at least one year from date of completion. They should also include any warranties from the material used if applicable.
Who Will Be in Charge of the Job?
- Make sure the contractor or his foreman is on the job whenever work is being performed
- Especially if sub-contractors will be used.
- The responsible party must be familiar with every aspect of your project.
- You should not have to worry about what is going on when you are not there.
Will You Provide Me with Written References?
- a good contractor will be happy to provide you with references
- Nice to get several customer references from the last 6 months to one year
How Do You Handle “Dirty Work”?
- Debris, disposal, clean-up.
How Is Payment Handled?
- Do you have capital to buy materials in case we need you to?
- Upon completion?
- Per job?
- Some money upfront?
- Weekly?
These are standard questions any real estate investor should be asking their remodel contractors before starting any job. By asking these basic questions, it will provide you with a good foundation of how to qualify and distinguish good contractors, from the less reliable ones. It’s always important to do your research, and check the references. You are investing just as much into the person,
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.
