References are the number one way you can make sure a contractor is a good one. Ask the contractor for references to previous work and do some research to see what kind of information you can dig up. Remember that when you find a contractor he can trust, it will make things a lot easier for you in the future when he wants to get things done quickly. Build a good relationship with your contractor by choosing the right contractor to get started – spend as much time as it takes and research the quality of work you can expect! When looking for a good contractor, never underestimate the power of networking. Ask your fellow investors for references of good contractors they have used in the past, and reach out to your local REI meeting; this is a great place to build your network and find quality contractors to work with. Finding your contractors this way will also help ensure they are investor-friendly and experienced in meeting investor needs.
In the field of real estate investing, you’ll want to be able to bounce back from any “trouble” that may arise. That’s why it’s important that the contractor you get has the right types of insurance. Accidents can and will happen on the job, and if your contractor isn’t properly insured, no one may pay for these accidents besides you. A good contractor in the real estate investment business carries general liability insurance for property damage that may occur, as well as workers’ compensation insurance for situations where a worker is injured on the property.
Finally, you want to make sure your contractor is licensed (make sure you see the license and that it hasn’t expired), is a member of the National Association of the Remodeling Industry or the National Association of Home Builders, and is diligent in getting all permits out. of construction that are required for the area. A contractor who is diligent with the administrative aspects of the job, as well as the practicalities of the job, will be an invaluable service to you as you work in the real estate investment industry!