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How do I begin to assemble a team of Contractors? - Posted by Newbie
Posted by Newbie on June 22, 2005 at 10:03:12:
I’m just starting out and have a good line of credit lined up (up to 100K).
I have never done a rehab project, but feel that I’m up for the risk. I realize that even experienced people have unexpected things happen, etc… so I want to prepare as best as I can and then just do it.
I live in a middle class type neighborhood, so I don’t have too many junkers near where I live, but I believe I can make money updating older homes, making additions, finishing basements, etc…
My questions for you, rehabbers, are as follows:
Do you rehab where you live or where the deal is? To start with, should I start where I live or should I go to where the deal is?
How do I get a team of people that will do my work?
If I hire subs to do the work (plumbing, electrical, etc…) do I need to have work man’s comp? Or is builder’s risk policy sufficient?
How do I find the subs that will do quality work, but won’t rip me off? I doubt local investors would share this info
Thanks,
Newbie - IL (Chicagoland)
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assemble a team of Contractors? - Posted by Natalie-VA
Posted by Natalie-VA on June 23, 2005 at 11:37:03:
We rehab where we live.
Getting the right team of people (whether it’s title people or contractors or whatever) takes a lot of trial and error.
Builder’s risk is not sufficient. You need general liability also.
Finding subs who do quality work is a huge challenge. Everyone seems to want to make general contractor money and they all want to take shortcuts. This might be your biggest challenge. Don’t pay anyone in advance unless it’s for material. Even then, you pick up the material and deliver it to the property as it’s needed.
–Natalie
How do I begin to assemble a team of Contractors? - Posted by Newbie Builder
Posted by Newbie Builder on June 22, 2005 at 12:25:01:
Rehab where you feel comfortable buying and is convenient enough for you to stop by after work.
Look in the newspaper, phonebook, community paper - stop by the lumber yard and network. Call different subs up and ask them to quote you a price on a hypothetical job ie. how much do you charge to rewire a 1,500 sq. ft. house. This will give you a starting point.
If you are building a new house, you should get builders risk. I only hire subs that have their own workers comp and I get their policy number and call the Insurance Company to make sure it is current.
Get a few bids and see what the job is going to cost ballpark. Then ask the sub you’re interested in hiring for referrals of past jobs. Call the referrals and ask questions.
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