How to Vet and Hire a Rehab Contractor (That Won’t Ghost You)

The single biggest variable in a flip's outcome is the contractor. A great one keeps you on budget, on schedule, and sane. A bad one destroys margin and months of your life. Here is how to hire well.

Where to Find Contractors

• Referrals from other active flippers in your market
• Your REIA's preferred vendor list
• Your lender's referral network (we maintain one at Pimlico)
• Local suppliers (who works at the Home Depot pro desk every morning?)
• Drive neighborhoods with active flips, talk to contractors on-site

The Screening Process

1. Initial call. 15 minutes. Scope, timeline, availability.
2. Site walk. How do they assess the property? Do they ask good questions?
3. Bid. Written, line-itemed, with timelines.
4. References. Three recent investor clients. Visit finished projects.
5. Verification. License, insurance, bond, lien history.

What a Good Bid Looks Like

• Line items per trade and per room
• Clear scope of what is and is not included
• Payment schedule tied to milestones
• Timeline in weeks or days per phase
• Change-order process defined
• Price not dramatically lowest or highest of your bids

Red Flags

• Wants 50%+ upfront before any work
• Cannot provide proof of insurance
• Reluctant to give references
• Bid is 30%+ below others (they are missing something)
• No written contract — "we'll figure it out as we go"
• Bad reviews or lien history
• Cannot start for 4+ weeks but "totally available"

The Contract

Your contract should include:

• Scope of work (the SOW document, attached as exhibit)
• Total price with line-item breakout
• Payment schedule tied to completed milestones
• Change orders in writing, with signed approval before work starts
• Timeline with start date, milestone dates, completion date
• Daily cleanup and dumpster responsibility
• Lien waivers at each payment
• Insurance and license verification attached
• Termination clause
• Penalty for missed deadlines (optional but powerful)

Managing the Relationship

• Weekly on-site check-ins, minimum
• Photo updates for every major milestone
• Written change orders, no exceptions
• Prompt payment on approved work — good contractors work faster for investors who pay on time
• Address problems same day; do not let issues compound

When to Fire a Contractor

• Schedule slipping with no recovery plan
• Quality issues that keep recurring
• Dishonesty about scope, cost, or progress
• Subcontractors not paid, creating lien risk

Firing mid-project is painful but sometimes necessary. The longer you wait, the worse it gets.

Building a Bench

Once you find good contractors, keep them busy. Steady pipeline of work keeps them loyal, their crews fed, and their pricing consistent. Top investors maintain 2–3 preferred GCs and a bench of specialty subs.

The contractor is the single most important vendor in your business. Spend the time to hire well.