Why Contractors Prefer To Work With Investors?
In the real estate business, it’s always useful to have reliable partners you can count on in times of need. Strong networks make for more work done and at a faster pace. One such partnership that is vital to the success of any real estate business is that between an investor and a contractor.
Independent contractors can be relied on to provide general maintenance or once-off jobs on a new property each year. Finding a good company that you can trust and get along with, will go a long way to making your property management a lot easier. Likewise, contractors also rely on good customers that they can build a relationship with and provide plenty of work to over the long term. To make the task of finding good contractors easier, it helps to know why a contractor would want to work with an investor in the first place. Here are the reasons why contractors prefer to work with investors.
- More Work. An investor who has multiple properties can provide continuous work for a contractor. Unlike homeowners, who won’t have any additional work after a project is done, an investor will have more than a few properties with work, that will need to be done all year round. As new properties are acquired, an investor will need a contractor to do whatever maintenance or extensions are needed, who better to choose then someone they worked with before?
- Network Of Other Investors. Real estate is all about relationships and that goes the same for contractors as well. When a contractor does a good job on a project and builds trust with an investor, he can be sure of receiving recommendations from this investor to others in the business. This can balloon out into an even-larger network making contacts with investors, very important to contractors.
- Better Wholesale Prices. Since an investor is providing constant work for a set of contractors, he’ll be expecting to receive wholesale prices. This can work out as an advantage for both parties as it gives the investor a better price and guarantees the contractor long-term work. They might earn more with a retail price, but there’s no security to this or certainty of work in the future.
- Proven System. Investors will usually have a broad vision of what they want for a property with a clear timeframe and deadlines. As they’ve gone through this process before they will be aware of the usual hiccups and have a system to streamline things for speed and efficiency. This makes the contractor’s job a lot easier as they know exactly what the client needs and what his expectations are.
- Faster Decision Making. Because of their clear goals and experience in the process, investors will have a firm idea of what they want and are not likely to change their minds on a whim. This makes for faster decisions and less backtracking which makes the contractor’s job much easier. Especially if they’ve worked with the investor before as they’ll have a pre-existing relationship.
- Business Cycle. Both the investor and contractor help each other reach their respective goals. For the investor, he makes his money when the property is sold but without the contractor, he can’t get there. Similarly, the contractor relies on the investor to keep new jobs and projects coming. This mutual business cycle benefits both and makes for a better working relationship.
With these six reasons, it’s pretty clear why contractors prefer to work with investors. An understanding of their motivations and the mutual benefits for both parties, will make it easier to find the right people you can work with.