In this episode, I discuss another fear that a lot of new real estate investors have: what if the contractor quits in the middle of the rehab? Or just stops showing up?
This has never happened to me, but I know it has happened to other investors. Here are a few things that you can do to minimize the effect if this does happen to you:
- Interview/quote more than one contractor at the start of the job.
- Never give the contractor a ton of money at the start of the job.
- Show up on the job site regularly, be friendly, and stay involved with the process.
- Never pay for work before it is completed.
- If you have to switch contractors, change all lockbox codes.
- Don’t panic.
No one can completely explain to me why contractors do some of the things they do. If you find a contractor that is professional, prompt, and conscientious, make sure that you treat them well and keep them happy. A good, reliable contractor can really help you make your business a success.