It’s always an advantage to have a reliable partner in the real estate industry. These partnerships make real estate networks that help realtors and investors succeed. One partnership that we’d like to take a closer look at today is between the contractor and the investor.
Investors always need a helping hand with remodels. Whether its rental properties, residential-remodeling or personal repairs, they need someone to get the job done efficiently and quickly. This is where the contractor comes in. Contractors do most of the management when doing projects so they are mostly preferred by investors.
But, why would a contractor work with an investor?
It’s likely that an investor will need numerous repairs in different properties. This means that a contractor will have more work to do. Compare this with working with a homeowner. Usually, there will not be any additional projects after a contractor is done. Homeowners don’t hire contractors that often because they don’t need to. Investors, however, are constantly buying properties because it is their business.
Remember the partnerships that we mentioned earlier? Well, investors can be partners with other investors too. If a contractor does a job well, he can be sure that recommendations through word of mouth will spread. It isn’t only houses to buy that investors are looking for. They’re also looking for reliable contractors from people within their network.
Because an investor can provide constant work, he is expecting wholesale prices from a contractor. This price has a bit of difference with the usual retail prices but the main idea is that contractors are reasonably paid doing constant work. The wholesale price is actually an advantage for contractors compared to doing one job at a time with retail prices.
Most investors have a specific plan of how they want a project to go. They will most likely have a system to make a contractor’s work much easier and quicker to do. This may include a detailed description of the scope of work as well as an itemized list of materials to be used.
Definitely, contractors have encountered clients who constantly make changes on the project they want done. Investors are not like this because they already know what they want. This makes decision making quicker because investors are going to follow the system that they’ve already established and tested. Again, this will make the contractor’s work easier since he can concentrate solely on getting the job done.
An investor makes his money when he sells off a property. He cannot complete this without a contractor’s help. On the other hand, a contractor makes his money taking on construction or repair projects. If a contractor partners with an investor, the business just cycles back. The partnership is a means for good business to continue for both the contractor and investor.
With these 6 benefits, it’s evident that working with an investor is the way to go for contractors. Because a detailed plan is provided together with a tested system, contractors can concentrate on what they do best. The project becomes easier to manage and quicker to finish. A contractor will be able to complete the job quickly which will allow them to move on to the next job. This also means that a steady flow of income will be coming in.