8 Important Traits To Look For In A Construction Company For A Fix And Flip Property
Fix and flipping is a pretty simple concept to many. They think that all you need is to buy a home that needs some work, renovate it, and sell it. If you think so, you are certainly wrong.
Those who enter into the flipping business quickly realize that in order to succeed in this market, they need to be armed with the right skills, a detailed rehab budget, and most importantly a team of reputable home remodeling contractors on their side.
Remodeling contractors help flippers transform their homes into valuable investments. If you are a flipper or aspiring to be one in the future, here is what you should look for in a housing construction company to ensure you pick a great company that will help you increase the resale value of your house.
It is not surprising that proficiency tops our list of the things you should look for when hiring a construction company. The firm must have a team of contractors that are knowledgeable and have numerous successful projects under their names.
The best way to check the proficiency of a company is to go through their merits, credentials, recognition, accreditation, and licenses. If you make the mistake of hiring a construction company that has no experience and strategy, you will definitely fail in the flipping business.
House construction involves numerous tasks, and most contractors specialize in one area. You should, therefore, ensure you get a team of contractors who are familiar with the whole building process to get great value for your money.
It’s imperative to know that not every contractor is experienced. It is important to ensure the construction company you hire has a team of professionals with years of experience in the field. Seasoned contractors will be able to accurately tell the amount of time, labor and other resources needed to complete a project ahead of time.
How can you tell if a company has the experience you need? First, check to see how many years they have been in business. Remaining in business means they have skillful contractors on board. You should also ask the contractor in person how long he has been in the sector just to be sure.
Is the company allowed to operate in your area? Flippers should ask this question before they hire a construction company. Check every detail on the license to verify that the construction company you want to hire is legit and has the necessary experience.
If they are licensed, this means they are registered with a government body, which has already evaluated the company. However, you should not stop there.
When the construction company sends contractors to your site, you may ask them to produce their certification. Building contractors are required by law to have their licenses at hand to show to their customers. For this reason, you should insist they show you their licenses and don’t sign any papers until they prove that they are licensed.
4. Free Estimates
Let’s face it, the reason why you ventured into this business is to make a profit. It is, therefore, important to go for options that help you stay within your budget. A construction company that offers free estimates will help you know in advance what will be profitable and what will not.
Fortunately, most construction companies offer free estimates to clients. This means that the company will send someone to evaluate the job and give you a quote of the estimated cost. With the estimated cost, you will be able to adjust your current budget to avoid any surprises and also help you calculate the profit margin.
As a result, you should avoid engaging a construction firm that does not offer free estimates.
5. Warranties and Guarantees
Ensure you hire a construction company that offers warranties and guarantees. Thankfully, most companies offer a one-year warranty, and this gives you peace of mind knowing that they will take care of things in case of any damage.
It is also crucial to ensure you have the warranty and guarantee in writing. Avoid construction companies that don’t offer warranties and guarantees or any company that refuses to give them in writing.
What do critics say about the company you want to hire? Talk to a previous client and seek their opinion in person if possible. Visit the company’s social media pages and read comments from its followers.
You may also need to visit review websites to see what reviewers say about that company. Consult every source possible. Positive comments from people are a good sign. However, if a company has significant bad reviews, avoid it!
7. Rich Portfolios
You should go for a construction company that has a rich portfolio if you want to reach new echelons in the flipping business. Reputable construction companies take pride in their past executed jobs and will always show them to potential clients. Hire a construction company that uses their portfolios to speak of their expertise.
8. Timely Project Delivery
This is another trait that flippers should look out for when hiring a construction company because flipping is all about timing. You should be careful because most construction companies fail in this area.
Go for a company that delivers projects on time while adhering to all standard. How can you tell if a company will deliver on time? The best way to know if a firm will complete a project on time is to ask previous clients about their experience with a particular contractor.
Let Orchard Funding Help
Don’t have enough money to start a flipping business? Don’t worry, Orchard Funding is here to help. We provide flippers with loans to help them navigate the fix & flip market.
Submit your loan application today and get a loan within 24 hours or less. For more information, call us today at (310) 356 – 7373.