Start With Strategy, Not Panic

Here’s a scene we’ve all seen before (or lived): You’re under contract, closing is in five days, and suddenly you realize—you have no contractor. Cue the frantic Google searches, Craigslist disasters, and the guy named Ricky who shows up late, under-quotes everything, and brings his parrot named Taco to the job site. 🦜

That’s not a renovation strategy. That’s a sitcom episode.

The Fix: Plan Your Contractor Game Early

Before you swing a hammer—or even close on the property—you need a contractor strategy that matches your project scope. Not all flips require the same structure, and hiring the wrong help can destroy your budget, timeline, and reputation.

Know Your Options:

1. General Contractor (GC)

• Best for: Full renovations, structural work, or when you don’t want to coordinate trades

• Pros: Handles everything—permits, subs, timeline

• Cons: Higher cost, but worth it if you value time, accountability, and sanity
  
  

2. Subcontractors (Plumber, Electrician, HVAC, etc.)

• Best for: Cosmetic flips, partial rehabs, or if you’re hands-on

• Pros: Cheaper overall

• Cons: You become the project manager—hope you like juggling schedules and phone calls
  
  

3. Project Manager (Optional, but Gold for Remote Investors)

• Best for: When you’re investing out-of-state or can’t be on-site

• Pros: Keeps contractors honest, timelines tight, and you out of the daily grind

• Cons: Adds to cost, but saves your flip—and your sanity
  
  

The Pro Move:

• Vet your team early—before the deal closes

• Check licenses, reviews, and references

• Match the contractor setup to your project size and experience level
  
  

Because in this business, strategy before scramble is how you win. Wait too long, and you’re not managing a flip—you’re managing chaos.

So ditch the panic plan. Build your crew before you break ground.

2. Vet Like a Venture Capitalist

You wouldn’t dump $100K into a startup without checking their books, their leadership, and their track record—so why would you do it with your flip? Hiring a contractor is an investment. And just like a VC, you need to do some due diligence before you hand over the checkbook.

Because let’s be honest: your flip is a startup. You’ve got capital, risk, a timeline, a product to launch—and every dollar depends on execution.

Here’s What to Ask For (and Verify):

1. Licensing & Insurance (Non-Negotiable)

• No license? No deal.

• No general liability or workers' comp? You’re liable if something goes wrong.

• Verify the license number through the state website—don’t just take their word for it.
  

2. References & Past Projects

• Call at least 2–3 references. Ask what went wrong and how the contractor handled it.

• Bonus: Call other investors, not just homeowners. They’ll give it to you straight.

3. Project Photos, Before & Afters, and Timeline Proof

• You want visual receipts. If they say they finished in 6 weeks, ask for proof—photos, permits, or a timeline spreadsheet.

• Look for consistent quality, not just one lucky flip.
  
  

4. Verified Business Address

• A Gmail and a truck isn't a business.

• Look for an LLC, a business address, and active registration on Sunbiz, Secretary of State, or your local registry.

• A contractor who runs their biz like a biz is way more likely to respect your budget and deadlines.
  
  

Bonus Points: Investment Property Experience

Renovating for an investor is very different from renovating for a homeowner.

• Investors care about cost-efficiency, timelines, and resale value.

• Homeowners care about dream features and Pinterest aesthetics.
  
  

You want someone who knows the difference. Ask:
“Have you worked on flips before? How do you approach ARV-based rehab budgets?”

Bottom Line:

This isn’t just hiring help—it’s partnering with someone who can make or break your deal. Vet hard. Ask direct questions. And if they flinch or flounder? Walk.

Because your flip deserves more than blind trust and good vibes—it deserves a pro who treats your project like a business.

3. Quotes, Not Guesstimates

If your contractor’s “estimate” is scribbled on the back of a napkin or texted to you like a pizza order—run. That’s not a quote. That’s a guesstimate, and it’s the fastest way to watch your budget unravel while the contractor disappears with your down payment and zero accountability.

You’re not flipping a treehouse—you’re running a business. And that means every dollar needs to be backed by clarity, structure, and documentation.

What a Real Quote Should Include:

1. Detailed, Itemized Breakdown

• Labor and materials listed separately

• Line-by-line costs for each scope (demo, plumbing, electric, flooring, etc.)

• No vague “miscellaneous” charges—every dollar must have a name
  
  

2. Clear Timelines

• Start and end dates

• Milestones for each phase (demo, rough-in, finishes, punch list)

• What happens if they miss a deadline? (Hint: this better be in writing too)
  
  

3. Payment Schedule Tied to Milestones

• No paying 50% upfront for “materials”

• Pay only when specific stages are completed

• Example: 10% at contract, 25% after demo, 25% after rough-in, final 10% after punch list is done
  
  

4. Specified Materials & Brands

• Don’t get blindsided by bargain-basement substitutions

• You asked for Sherwin-Williams paint, not “Joe’s Discount Beige”

• Every finish, fixture, and faucet should be clearly listed with model or brand
  
  

Compare at Least 3 Bids—But Don’t Just Pick the Cheapest

Cheapest often means:

• Cutting corners

• Using cheap materials

• Rushing work

• Disappearing halfway through the job
  
  

Look for value, transparency, and track record. Ask:

• Who provided the most thorough breakdown?

• Who showed they understand the scope and intent of the flip?

• Who has proof of finishing on time and on budget?
  
  

Pro Tip:

A great quote isn’t just about cost—it’s about clarity and control.
You want a contractor who’s not just ready to build, but ready to be held accountable.

So if you can’t hold their bid to the light and see the whole plan laid out? It’s not a quote—it’s a warning.

4. Contracts Are Not Optional

Let’s say it louder for the flippers in the back: verbal agreements = expensive lessons. Handshakes, casual texts, and “we’ve known each other for years” don’t hold up when your project’s 3 weeks behind, your contractor’s ghosting you, and your budget is on life support.

A real estate flip is a business, and every business relationship—especially one involving tens of thousands of dollars—needs a rock-solid, written contract. No exceptions.

What Your Contract Must Include:

1. Scope of Work (SOW)

• Itemized tasks, room by room

• Materials specified by brand, model, color

• What’s included—and what’s not
  
  

2. Start & End Dates

• Define the project start date and the expected completion date

• Include what happens if delays occur (with or without valid reasons)
  
  

3. Payment Terms

• Amounts, due dates, and milestones

• NEVER pay in full up front—tie payments to completed work

• Include who buys materials, and how receipts are handled
  
  

4. Termination Clauses

• What happens if they quit mid-job

• What happens if you need to fire them

• Protect yourself if things go south
  
  

5. Warranty on Work

• Minimum 1-year warranty on labor

• Make sure it covers craftsmanship, not just materials
  

Add This Like a Boss:

• Penalty Clause for Delays:
  Example: “$100/day penalty for each day beyond agreed completion date unless caused by force majeure.”
  
  

• Bonus for Early Completion:
  Small cash bonus for finishing ahead of schedule (and passing inspections). Motivates hustle without sacrificing quality.
  
  

 Bonus Tip:

Even if your brother-in-law’s doing the tile or your “buddy from church” is handling the roof—get it in writing. It’s not about trust, it’s about clarity.

Because nothing kills relationships—or deals—faster than miscommunication, money disputes, and blown expectations.

Contracts don’t just protect your flip. They protect your future. Write it up, sign it, and run your projects like the professional you are.

5. Communication = Profit Protection

In real estate rehab, it’s not always the bad work that wrecks your flip—it’s the bad communication. Misunderstandings = delays. Delays = holding costs. And holding costs? They eat your profits for breakfast.

If you’re not communicating clearly and consistently, you’re not managing a renovation—you’re gambling on assumptions.

What Happens Without Clear Communication:

• Contractors assume instead of ask (“Oh, you didn’t want white grout with black tile?”)

• Materials get installed wrong—or twice

• Timelines drift without warning

• Problems don’t get caught until it’s way too late (and expensive)
  
  

The Fix: Set Up a Communication System That Works

1. Weekly Check-Ins (Minimum)

• Schedule a regular time for project updates—walk the site or jump on a call

• Ask what’s done, what’s next, what’s delayed, and what they need from you
  
  

2. Use Project Management Tools

• Trello, Asana, Buildertrend, or Google Sheets—pick your weapon

• Track task progress, budget changes, material orders, and punch lists in real time
  
  

3. Require Visual Updates

• If you’re remote, ask for photos and videos with timestamps

• Bonus: Require updates before releasing milestone payments
  
  

4. Designate ONE Point of Contact

• Whether it’s you or your project manager, only one person talks to the contractor

• Avoid the “too many cooks” disaster—your project isn’t a family group chat
  
  

 What Great Contractors Do:

• Document their work

• Over-communicate changes and delays

• Flag potential issues early and bring solutions, not just problems

• Respond within 24 hours, not 3 days into demolition radio silence
  
  

Pro Tip:

Profit is protected through clarity—not guesswork.
Even the best rehab plan will collapse under poor communication. But when your contractor knows exactly what you expect, when you expect it, and how you want updates? That’s how flips finish on time, on budget, and on point.

6. Red Flags You Should Run From (Fast)

Some mistakes cost you a few bucks. Hiring the wrong contractor? That can cost you your entire deal. One sketchy hire can blow your budget, torch your timeline, and leave you apologizing to buyers over crooked cabinets and peeling paint.

So when the warning signs start flashing, don’t second guess—run.

Red Flags That Scream "Nope":

1. “I Can Start Tomorrow!”
Sounds amazing… until you realize a good contractor is never just sitting around.

• Why aren't they booked?

• This often means they've been dropped—or they’re desperate.
  
  

2. No License or Insurance
This isn’t negotiable.

• No license = no accountability.

• No insurance = you pay if someone gets hurt or property gets damaged.
  → Instant deal-breaker.
  
  

3. They Ask for 50%+ Upfront

• Real pros don’t need huge deposits—they operate on milestone payments.

• Anything more than 25–30% upfront is a huge red flag, especially without materials delivered.
  
  

4. Won’t Put Anything in Writing
“If they’re not willing to sign it, they’re not willing to stick to it.”

• No written contract = no boundaries

• Verbal agreements are great for lunch plans—not five-figure rehabs
  
  

5. No Online Presence or Reviews

• A quick Google search should show something: website, photos, reviews, social media

• Sketchy profile, no projects, or nothing but low-res logo memes? Hard pass.
  
  

Bonus Red Flag: Your Gut Screams “NO”

Even if the price is right and the quote looks clean—if something feels off, trust it. Intuition is experience whispering before the data proves it right.

Pro Tip:

Hiring a contractor is like choosing a business partner. If they bring chaos, you inherit it. If they disappear mid-project, you’re the one paying to clean it up.

Don’t settle. Walk away early or pay for it later. And trust me—later hurts a lot more.

7. Your Contractors Are Partners—Treat Them That Way

Here’s the truth most flippers miss: your contractor isn’t just swinging a hammer—they’re swinging your reputation. Every decision they make, every corner they cut (or don’t), every timeline they hit or miss? It all reflects on you. That means you need more than just labor—you need a partner.

Real Estate Is a Relationship Business—So Is Contracting

The best investors know: when you find a contractor who’s reliable, skilled, and communicative, you treat them like gold.

• Pay them on time

• Be clear and direct with expectations

• Refer them when they deliver

• Thank them—because good contractors are worth their weight in profit
  
  

When you build a solid, fair relationship, they’ll go to war for you:

• Prioritize your jobs

• Call in favors to get materials or subs faster

• Fix problems without drama

• Stick with you deal after deal
  
  

But Let’s Be Clear: Respect ≠ Weakness

Being professional doesn’t mean being passive.

• Hold them accountable. Missed deadlines? Poor finishes? Speak up—early and often.

• Stick to the scope and the budget. No surprise “upgrades” without approval.

• Demand quality. If it wouldn’t pass for a buyer or appraiser, it’s not done.
  
  

You can be fair and firm. That’s leadership.

Pro Tip:

Your contractor’s work shows up in:

• Appraisals

• Buyer walkthroughs

• Online reviews

• Referrals

• Your next deal
  

So yes—they’re hammering nails. But they’re also building your brand.

 Bottom Line:

Treat great contractors like partners, not pawns. Elevate the relationship. Create mutual wins. And never forget—your flip is only as good as the people who help you build it.

Because in this business, who you work with determines what you’re worth.