Are You Wasting Time Getting Three Bids for Every Project?

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Most aspiring house flippers never get started because they lack a clear blueprint for success. This episode breaks down one critical aspect of the house flipping process: when to follow and when to break the common "three bids" rule for hiring contractors.

• The three-bid rule helps compare prices, avoid getting ripped off, and keep contractors honest
• Follow the rule when in new markets, for big-ticket items like roofs and HVAC, and for volume trades like flooring
• The goal isn't finding the cheapest bid but spotting outliers and confirming the average price
• Break the rule when you have trusted pros, when time is critical, or for simple scope jobs
• Standardize your scope in writing and send identical versions to all contractors 
• Pay attention to who shows up and follows up—this predicts their actual performance

If today's episode helped you move one step closer to your first or next deal, follow us wherever you get your podcasts so you never miss a show. I'm grateful to be part of your journey. Now get out there and get cracking!

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CLICK HERE to learn more about our upcoming boot camp, Flipper Camp.

Episode Transcript

Ed Mathews (00:00):
Speed, reliability, trust.
They're worth more than a cheapquote.
Ever sat in your car scrollingthrough Zillow and thought man,
if I just knew where to start Icould flip one of these.
Yeah, I've been there too.
Most people who want to fliphouses never even start, not
because they're lazy, butbecause they don't have the
blueprint.
Well, that changes today.

(00:20):
If you give me five minutes,I'll give you real world
flipping strategies thatactually work.
No fluff, no theories, nogatekeeping, just real how-to
information for you to applytoday.
So you're about to hire acontractor.
You've heard it before alwaysget three bids.
But is that always the smartestmove?

(00:41):
Let's break it down.
The three bid rule is simpleGet at least three quotes before
hiring.
Why?
To compare prices, to avoidgetting ripped off and to keep
contractors honest.
It's good advice, but not everytime.
You definitely follow the rule.
If you're in a new market, youdon't know the players.
You need a baseline and youalso follow it.
For big ticket items like roofs,hvac and siding, small

(01:04):
differences can equal bigdollars in the long run.
And you follow the rule forvolume trades like flooring or
paint, where price swings caneat your margins.
But here's the key the goalisn't to find the cheapest bid.
It's to spot outliers andconfirm the average.
Now, when should you ignore thethree-bid rule?
When you've got a trusted prowho shows up and delivers, when

(01:26):
the job is time sensitive anddelays are bleeding your holding
costs.
Also, when the scope is simple,like a one-off plumbing fix or
patch job, or when the effort ofchasing bids just isn't worth
it.
Speed, reliability, trustthey're worth more than a cheap
quote.
If you do go the three bidroute, standardize your scope,

(01:46):
write it down, send the sameversion to every contractor.
No apples to oranges, justclean comparable quotes and
watch for this.
Who shows up, who follows up?
That tells you everything abouthow they'll perform Bottom line
.
The three bid rule is a tool,not gospel.
Use it for leverage.
Break it for loyalty, speed orsanity.

(02:07):
Okay, that does it for today.
Thanks for hanging out.
Don't forget to follow and I'llsee you in the next episode.
Until then, this is Demo toDollars.
Catch you on the next episode.
Thanks for listening to Demo toDollars.
If today's episode helped youmove one step closer to your
first or next deal, do me afavor Follow us wherever you get

(02:27):
your podcasts so you never missa show.
I'm grateful to be part of yourjourney.
Now get out there and getcracking Bye for now.