Quantum Builders LLC

This is a 1st of a 5 part post (one every other day) that will examine how to find a contractor for your real estate investing team. Picking teaming members is very important for a number of reasons and you need all types of team members but the one team member many people struggle with is finding a contractor.

We believe that a contractor is like a partner while the property is being rehabbed, because your contractor will be making decisions (sometime with your input and sometimes without) that can effect your investment and your profits. So picking a competent contractor is important and picking one that has experience has an investor maybe more helpful. Anyway here is the 1st tip.

1.    Don’t select a contractor based solely on price.
In this world you get what you pay for. Many times my company has been asked to bail  out an investor because his contractor was unable to do the work he agreed to do.

One of the biggest problems with choosing a contractor based on price is the level of both his subs and other labor. If the contractor is the lowest price, he is probably using sub-contractors and laborers that reflect his pricing which costs you both money and time in the long run.

So thats the first tip, look for the others.

Be success

I recently saw this article about appraisals. The basic idea is that appraisal rules where changed in the boom market to prevent abuse and now those changes are hurting appraisals in this market. The rules where created to isolate appraisers from the influence of real estate pros like brokers, lenders etc.

During the boom times, real estate pros often exerted pressure on appraisers to give good appraisals to prevent deals from failing.

In the down market the rule change created a problem. To insulate themselves from lawsuits, lenders are ordering appraisals from appraisal management companies. These companies isolate banks from individual appraisers and reduce the risk of lawsuits.

Because these appraisal management companies are often national, they don’t have appraisers in every area so the appraisals are often NOT reflecting the local real estate market.

Read more to and know in advance if your lender is using an appraisal management company.

Everyone knows the holidays are a great time to give back and share your knowledge and experience with the next generation. Friday , Wendy, Leon and I had the pleasure of talking to the next generation of Philadelphia contractors. We walked them through one of our projects on a class trip and talked to them about the business of contracting. There are some great lessons in this video for them and for you. Please leave a comment.. Happy holidays.

During this time of year it is important to reach back and help. We are giving back everyday by training the youth to strive to be better as contractors, as businessmen and as leaders. Here’s how….

The third tip is simple but important. Check the Crew.

3.    Check the Crew
Does the contractor have the people to do the work you need done? Is he using a licensed plumber that will provide your with a plumbing cert? Is his crew large enough to complete the work you need done? Does the contractor have multiple crews if there is an issue? I know an investor whose project was stopped because the contractor had family problems and didn’t have backup. The project took twice as long to complete.

Also, does the contractor have a company with other people that can keep you posted. There is not worse feeling than not being able to talk to your contractor and having no one else to call.

Be A Success

One of my favorite tips is this one. Not only should you do your homework but the contractor should do theirs and be prepared to demonstrate capability. Have they done the type of work you need done? Have they been on time and budget? All are important questions.

2.    Do Your Homework
Your contractor obviously should be licensed and insured. You should also get references from every contractor and when possible see his work. Does the contractor have testimonials from satisfied customers? Does the contractor have pictures and descriptions of previous work? These are just a few of the question you should ask any contractor

This is one of my favorites because a while ago, we decided to be overly transparent and post our work on the Internet. All of our videos are posted on this site and watch for more including testimonials from our clients.

Be a Success

Hey, TV star! I had a pretty good Thanksgiving, thanks. I hope yours was great, too!

I’d only be too happy to be used as a reference; you don’t even have to ask for it “humbly.” Actually, I thought of sending you another thank-you a little while ago, so I’ll do it now: I’d like to once more express my very deep gratitude for what you did on Osage. That thing just didn’t want to die, but you painstakingly got it done, going so far, I’m sure, as to absorb more than a reasonable amount of cost and trouble, yourself. You insulated me from the contractors—as much as I’d let you and less than you would have liked—and showed me that I could pretty much just tap into your experience and wherewithal and leave everything in your capable hands. Thanks so very much!

Many thanks again,
Serge

Bloopers that make you money. There is cursing so if you are offended pass on this one. Vic and Leon argue about how to fix this house and who will pay for upgrades. The important lesson is that someone needs to make decisions while the rehab is being done so arguements with contractors are unusual. Besides it is very very funny to watch these to fools