Armando Montelongo | News and Information In Real Estate

Subcontractors or subs are an essential part of the house flipping process. Without people to do all the rehab work, you don’t have a fixed up house to flip. But subcontractors can also inflict added costs and turn a dream job into your worst nightmare. Follow these tips to keep them happy — and your deal on track.

Treat people like people

Treat people the way you would want to be treated. On TV, you’ll see all kinds of drama between investors and contractors.  In real life, investors treat subcontractors fairly and respectfully.

So should you.

But don’t be a doormat. If subs lie, delay their jobs for no good reason or try to charge change orders without approval, you need to let them know who’s boss.

Pay subcontractors on time

An easy way to lower stress and the number of subcontractor disputes is to pay people weekly and to pay on time.  Make sure you follow through and make that deadline. After all, the subcontractor is a small business and a sudden change in cash flow can really hurt.

If some issue comes up with a lender, make sure to notify your subcontractor as quickly as possible. You don’t want anybody taking advantage of you, and your subs don’t want to feel like you’re taking advantage of them.

Let people know up front

Make sure your subcontractors know your rules up front. Tell them that you understand they have been burned in the past and so have you, so these rules are to protect both of you.

Be honest about every clause and detail upfront. Don’t hide anything, tell them the rules, and let them in on your system. The better they understand your system, the better they will work for you.

Follow these tips and you’ll keep your house flipping machine running smoothly.

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