The 7-Step Blueprint to Finding Trustworthy Contractors

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Every house flipper knows the pain of a contractor nightmare—blown budgets, missed deadlines, and quality issues that make you question your sanity. But what if you could build a team of reliable professionals who consistently deliver?

This episode of Demo to Dollars cuts through the fluff to deliver actionable strategies for finding trustworthy contractors who will become valuable assets to your flipping business. Host Ed Mathews shares seven proven tactics that separate the pros from the pretenders, including the surprising power of early morning supply house visits, the goldmine of connections waiting at your local Real Estate Investors Association, and why starting small with new contractors saves massive headaches later.

Beyond just finding good help, Ed walks through critical protection strategies every flipper needs: the right contract language, payment structures that incentivize performance not promises, and insurance requirements that keep you legally safe when things go sideways. These aren't theoretical concepts—they're battle-tested approaches from someone who's learned these lessons the expensive way.

The right contractor team transforms your flipping business, turning the most stressful aspect of renovations into a competitive advantage. Your margins get better, your timelines become predictable, and your stress levels drop dramatically. Whether you're on your first flip or your fiftieth, implementing these contractor-finding strategies will immediately impact your bottom line and sanity. Follow Demo to Dollars wherever you get your podcasts so you never miss these real-world flipping tactics that actually work!

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Episode Transcript

Ed Mathews (00:00):
Your Real Estate Investors Association is a
goldmine.
Every investor in that room hasa short list of contractors
they trust and a long list ofhorror stories.
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

(00:20):
because they're lazy, butbecause they don't have the
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.
What's up, fellow flippers?
Welcome back to Demo, toDollars, the podcast that gives

(00:42):
you real-world tactical adviceto grow your house flipping
business, one smart move at atime.
I'm Ed Mathews and today we'retalking about one of the most
important keys to flippingsuccess how to find good
contractors Real talk.
A bad contractor can slow downyour timeline, explode your
budget and test your sanity.

(01:02):
So how do you separate the prosfrom the pretenders?
Let's dive in.
Tip one start small.
Never and I mean never Handover a full gut job to a
contractor you just met.
Start with something small Abathroom demo, a small patch and
paint gig.
A quick tile job.
Let them prove they show up,communicate and finish the job

(01:24):
the right way before you trustthem with bigger dollars.
Tip two ask other contractorsthis one's gold.
Ask your current rock startrades who they like working
with Electricians, plumbers,framers the good ones hang
together.
They don't want their work heldup by someone sloppy.
When a great tile guy tells youyeah, I love working with Jose
the drywall guy, you take thatlead seriously.

(01:47):
Tip three be at the supply housebefore 7.30 am.
Want to know who the realprofessionals are?
Go hang out at the contractordesk at Lowe's Home Depot or
your local supply house before7.30.
That's when the real trades areloading up and heading out.
The guys that roll in at 10 amin pajama pants Hard pass.

(02:08):
Tip four Stop at job sitesDriving around town and see a
crew working.
Pull over, say hi, ask whatthey're working on, how long
they've been in business andgrab a card.
You get an instant look attheir craftsmanship, cleanliness
and crew culture and that'sworth more than any Google
review.
Tip five ask the supply housestaff.

(02:28):
The folks behind the counter atyour local electrical or
plumbing supply know who's legit.
They see who pays cash, whoorders the right materials and
who never has returns.
Build a relationship with thosepeople and ask them straight up
who are the best trades in town.
They'll tell you.
Tip six go to your local REIA.
Your real estate investorsassociation is a gold mine.

(02:50):
Every investor in that room hasa short list of contractors
they trust and a long list ofhorror stories.
Buy someone a beer and ask whothey use.
It could save you tens ofthousands of dollars and a whole
bunch of brain damage.
Tip seven ask your trustedrealtors.
Good agents are out in thefield every day.

(03:10):
They've walked more homes andsat through more contractor
disasters than most of us.
Ask them who their clients raveabout and who they'd never let
near a listing again.
Realtors are a secret weaponwhen vetting local
talent.
Now let's talk about how toprotect yourself once you've
found a potential hire.
Pro tip one never give a bigdeposit up front.

(03:32):
If a new contractor asks for50% down, that's a big red flag.
A small deposit is fine, butbig money should
be tied to progress milestones,not promises.
Pro tip two make them buy thematerials In the early stages of
the relationship.
Have them purchase materials.
It keeps them accountable andprevents you from ending up with
$1,000 in unused tile if theyvanish.

(03:55):
Also, if someone getshurt on the job site and you
supplied the plywood theyslipped on, guess who is liable?
Yep, you.
Pro tip three check forlicensing.
Always ask for their licenseand make sure it's current.
If they can'tproduce it, move on, no
exceptions.
Pro tip four verify insurancecoverage.
They need general liabilityinsurance and workers' comp if

(04:16):
they have a crew.
Otherwise, if someone gets hurton your site, you're the one
holding the bag.
Ask me how I know.
Pro tip five set expectations inwriting.
Get it all in writing Scope,payment schedule, timeline,
materials, who pulls permits,all of it.
A handshake doesn't hold up incourt.
Pro tip six use a contractoragreement with an

(04:39):
indemnification clause.
This is a must.
Your contractor agreementshould include an
indemnification clause whichprotects you if something goes
sideways, like damage, injury orviolations.
It forces the contractor totake full responsibility for
their work and their team.
Please do not skip this one.
Finding good contractors isn'teasy, but it's worth the legwork

(05:01):
.
When you get the right team inplace, your flips run smoother,
your margins get tighter andyour stress way down.
Thanks for listening to Demo toDollars.
If this episode helped you out.
Do me a favor, share it with afellow investor or leave a
review.
It helps us grow this community.
Until next time, keep yourboots dirty and your numbers

(05:21):
clean.
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 yourpodcasts so you never miss a
show.
I'm grateful to be part of yourjourney.
Now get out there and getcracking Bye for now.