Sometimes, when dealing with contractors I want to pull my hair out.

It’s one aspect of the business that I absolutely hate, but it’s a necesary evil if you’re fixing up and flipping houses.

This past week, I’m talking with a guy named Phil that finishes hardwood floors for my latest rehab and I tell him where the house is.

He responds -”I know where it’s at… I did the roof on that house about 5 years ago.”

We agree to meet the following day to let him give me a quote.

I arrive around 15 minutes early to find a leak dripping in 3 places.

Irony at its best….

I walk outside to cut him off so that he doesn’t see the leak just yet and I said – “Is this the house you put the roof on?” He responds “yes”.

Then, I opened the door and said well take a look at this leak.

(HEHE – I’m thinking I just busted this guy’s bubble).

This guy starts telling me about the hail damage that had been done to the roof and that is why the roof is leaking and that “unfortunately” his warranty is only good for 3 years…

(To sum it up, he was shooting me a line of bull shit for a half assed job done to the roof)

Now, keep in mind, he’s there to give me a quote about refinishing hardwood floors – not a roof.

While, he’s figuring a quote – he starts asking questions about my business.

Then proceeds to say…

“Well, you’ll make $20K -$30K on this house”

Excuse me- did I tell you what I paid for it?

uhh No.

I proceeded to inform him that the one thing that pisses me off about contractors is some are more worried about what I make than doing the job right in a timely fashion.

Sorry – but I’ll not be using Phil.

And there are guys just like Phil in your market.

So here some rules for dealing with contractors when you’re fixing up to flip a house -

Don’t let’em shoot you a line of bs.

Don’t believe everything they say.

Get a second opinion. Ask for referalls at your local investment club, from other investors, from other contractors, and from the home improvement stores.

Ask to see 5 jobs they’ve done in the past year and if you can contact the owners for a reference.

And keep a good list of the contractors that work out.

This list will be a continued work in progress.

Start small.  Use your new contacts for small jobs to see how they do before handing them a big project.

Don’t tell anyone who you’re using or else word will get out and then it’ll be harder to have them work jobs in.

And never, ever reveal what you paid for the house to any contractor or else they try to gouge you.

And lastly, don’t be afraid to let ‘em go.

There’s more to come as time permits…

Derek