Stop Getting Burned: The Ultimate Contractor Vetting System for Real Estate Investors

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Hiring the wrong contractor can be the single most costly mistake in your house flipping journey. Missing deadlines, exceeding budgets, and delivering subpar work—these nightmares start with one critical error: choosing the wrong professional for your project.

Today I'm sharing my battle-tested system for contractor selection that has saved my flipping business thousands of dollars and countless headaches. You'll discover 20 powerful questions designed to separate the professionals from the pretenders. Each question serves as protective armor against the common pitfalls that trap unsuspecting investors. From verifying licensing and insurance to understanding payment schedules, from evaluating capacity to establishing communication protocols—these questions create a comprehensive vetting process that reveals red flags before they cost you money.

The most valuable insight? "Bad contractors avoid scrutiny. Good ones welcome it." This fundamental truth has guided my contractor selection process through dozens of successful flips. When you hear how a potential contractor responds to questions about their past legal issues, their workflow management, or their warranty policies, you'll gain invaluable insight into their professionalism and reliability. I explain exactly what answers to look for and which responses should send you running. These aren't theoretical concepts—they're practical, actionable strategies I've refined through years of real-world experience.

Ready to transform your contractor hiring process? Follow the link in the show notes to download the complete contractor vetting checklist for free. Use these questions as your protection on your next project, and watch how quickly you identify the right professionals who will respect your timeline, budget, and vision. Subscribe now and never miss another episode of practical, no-fluff advice that moves you closer to flipping success.

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

Episode Transcript

Ed Mathews (00:00):
These questions are your armor.
Use them.
Bad contractors avoid scrutiny.
Good ones welcome it.
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

(00:20):
blueprint.
Well, that changes today.
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.
Welcome back to Demo to Dollars, the podcast for real estate

(00:43):
investors who want real-worldtactical advice to grow your
house-flipping business, onesmart move at a time.
I'm your host, ed Matthews.
Hiring the wrong contractor canwreck your project.
Missed deadlines, blown budgets, shoddy work it all starts with
choosing the wrong contractor.
Before you sign a singlecontract, ask these 20 essential
questions.
Each one is designed to protectyour time, your money and your

(01:04):
margins.
Let's get into it.
Question one are you licensedand insured?
No license means noaccountability.
No insurance means you could beon the hook if someone gets
hurt on your job.
Question two can you pullpermits in this town?
If they can't, you'll be theone scrambling at City Hall or
dealing with stop work orders?

(01:25):
Question three what's yourtypical payment schedule?
A fair schedule ties paymentsto progress.
Anyone asking for 50% upfront,that's a big red flag.
Question four who's actuallydoing the work?
Is it their crew or are theyfarming it out to subs you've
never met?
You need to know.
Question five how many jobssubs you've never met you need

(01:48):
to know.
Question five how many jobs areyou running right now?
Too many means yours won't be apriority.
You want bandwidth, not burnout.
Question six can I talk torecent clients?
It's not just old reviews,actual humans they've worked
with in the last few months.
Question seven what happens ifyou go over budget or timeline?
You're looking for a process,not a promise.
If they can't answer clearly,that's a concern.

(02:11):
Question eight can you show meyour current schedule and
availability?
You need real start dates, notvague promises.
Question nine have you everbeen sued or had complaints
filed with the state?
Question nine have you everbeen sued or had complaints
filed with the state?
Watch how they answer, not justwhat they say.
Question 10, what's your processfor managing subs and site

(02:32):
supervision?
And if they don't have one,communication will break down
fast.
Question 11, how do you handleunexpected issues or change
orders?
Every job has surprises.
You want structure, notguesswork.
Question 12.

(02:52):
Will you provide lien waiversas payments are made?
This protects you from legalheadaches if subs aren't paid.
Question 13.
How do you handle materialpurchases?
Do you supply or do I?
And if you do, do you mark themup?
Question 14.
Can I get a detailed line itemestimate?
Lump sum quotes, hide fat.
You want transparency.
Question 15.
Can you send before and afterphotos from recent projects?

(03:14):
Visual proof matters.
If they can't provide it, digdeeper.
Question 16.
What's your warranty orguarantee policy?
You're testing how they standbehind their work after the
check clears.
Question 17.
How do you prefer tocommunicate and how often?
Set expectations now or chasethem later?
Question 18.

(03:35):
What's your crew's typical workschedule?
Are they showing up five days aweek or when they feel like it?
Question 19.
Have you ever walked off a jobmid-project?
If so, how come?
It's uncomfortable butrevealing.
Listen closely.
Question 20.
What separates you from othercontractors?
I'm interviewing You'relistening for pride,

(03:56):
professionalism and clarity.
These questions are your armor.
Use them.
Bad contractors avoid scrutiny.
Good ones welcome it.
Want the full printablechecklist?
Grab it free using the linkwe'll provide in the show notes.
This is Demo to Dollars.
I'm Ed Matthews and I'll seeyou in the next episode.
Thanks for listening to Demo toDollars.
If today's episode helped youmove one step closer to your

(04:19):
first or next deal, do me afavor Follow us wherever you get
your podcasts so you never missa show.
I'm grateful to be part of yourjourney.
Now get out there and getcracking.
Bye for now.