Private Hard Money Lender in California, Texas and Arizona: Commercial Real Estate: How To Choose The Right Contractor For Your Fix and Flip

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Sunday, July 10, 2016

Commercial Real Estate: How To Choose The Right Contractor For Your Fix and Flip

When you are about to attempt a new flip you should have a checklist of what you are going to need. Having the best commercial real estate contractor should be at the top, or near it at least. Having a good one can save you a lot of money and headaches in the long run.

Having a good contractor is a major advantage in the commercial real estate business. At the end of every deal, once you finish the only thing that matters the most is your reputation. If you are one of the lazy commercial real estate investors that cut corners eventually no one will want to buy or rent from you. However, if you take the time to thoroughly vet your property to see the extent of rehabbing it needs you will make your money back tenfold.

This is why hiring an experienced contractor is a great investment. If they are a reputable contractor, they will be able to help you throughout the entire process of rehabbing your property. A good contractor can make sure you choose the right materials for your home. Anywhere from tiles to the type of hardwood you put in. A good contractor should be able to take direction well, however, in the event they have a better option for you, they should not hesitate to voice their opinion.

When you begin your search for a new commercial real estate contractor you want to make sure that you find a handful of potential companies. One of the best places to start your search for your nest contractor is a commercial real estate seminar. These are great places not only meet with other investors in your area but also, meet a plethora of contractors. Most of the time if the contractor is in the seminar they are working hard trying to find a new client. These are the companies you should start with first. It shows that they have the initiative to get in with other commercial real estate professionals on the ground level.

If you are not into the stuffy seminar scene get in your car and drive around your city. Find a house that is being rehabbed and speak to the contractor there. You could also go to your local lumber yard or hardware store and find a handful of contractors.

You now have a list of potential commercial real estate contractors, now what?

Now comes the hard word. You now have to sieve and dig through mountains of pictures showing the work of your potential contractor. You want to make sure that the contractor has a portfolio with full photo sets of their work. If they are currently working on a project, ask if you can visit them on site one day. Most of the time they will gladly show off their work without hesitation. If you can, go once or twice to see how long they take on certain projects. Pay attention to how they treat their employees, as well.

This is commercial real estate, make sure everyone can make money once the flip is completed

At this point, you want to compare all the bids and quotes that you have received. Make sure that the bids fit into the project that you want to accomplish. Discuss all the potential costs that you may have before you agree to have the contractor work with you. You want to make sure you make a profit at the end of the flip.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Texas Tel:      (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701    

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About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.