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How To Negotiate With Contractors And Keep Your Cool
By James Klobasa
One of the most frustrating aspects of getting an investment property ready for resale is dealing with the contractor. The right contractor can bring you in ahead of schedule and under budget, but these contractors are in high demand and tough to secure. In most cases, contractors need a little bit of prodding and nudging to get the project finished on time. Do it right and you get your project finished ahead of time; do it wrong and you get a ticked off contractor who can make your life miserable.
Before negotiations with any contractor can begin, you will have to go through an interview and selection process. Be sure to select a contractor that you feel comfortable communicating with. A pushy contractor, no matter how outstanding his credentials, can be a hassle to deal with. A contractor that you can communicate with, on the other hand, will likely be open to any suggestions that you have and any criticisms as well.
The first negotiation that you will have to make in any real estate investing project involves the total cost for renovations. This often comes in the form of a quote from your contractor and includes the cost of materials, labor, and other expenses. Never go into this type of negotiation blind. Research for yourself what materials will cost. This will give you leverage to negotiate if you think the estimate
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is too high. When bringing a discrepancy in the proposal to the contractor's attention strive to keep your comments neutral. Never attack the contractor personally or use a tone that will turn a potentially good working relationship sour. Remember; keeping good contractors is vital in the world of real estate investing. Opportunity for negotiation might also arise during the construction phase of the real estate investing project. These negotiations may include scheduling conflicts, issues with crew members, and general misunderstandings regarding materials or other matters. To be able to discuss these matters with your contractor easily, you need to first have a working relationship with him. Do not merely show up on the job site and begin issuing orders. Instead, take a genuine interest in the project and remember to give praise where praise is due. Do not be a stranger on the job site. Show up regularly to spot potential problems before they get out of hand. A contractor will be much more obliging to exchange the kitchen tile for a new style or color before it has been laid than after his crew has spent hours on the job. And remember to always treat your contractor with the respect and decency that you yourself wish to be treated with. A kind request sandwiched with praise will be honored a lot more quickly than a short command given in anger. James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing Article Source: ArticleTap.com
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PTIA to open new interchange
Piedmont Triad International Airport announced that it will open a new road interchange this weekend to handle all vehicular traffic in and out of the airport.
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UNC trustees approve higher tuition, fees
The University of North Carolina at Chapel Hill’s board of trustees on Thursday approved increases in tuition and fees for all students.
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FDIC chair Bair: More 'ammunition' coming to strengthen banks
Federal Deposit Insurance Corp. Chairman Sheila Bair is an optimist. (TROW)
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Lawsuit challenges N.C. CON law
The N.C. Institute for Constitutional Law has filed suit challenging whether the state’s process for approving new hospitals and other capital expenditures is constitutional.
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Report: Capital One looking at Chevy Chase Bank
McLean, Va.-based Capital One Financial Corp. (NYSE: COF) is on the short list of financial firms courting Chevy Chase, according to Reuters. It says Citigroup (NYSE: C) and JPMorgan Chase (NYSE: JPM) are also among final bidders, citing people familiar with talks. (COF) (C) (JPM) (STI) (BBT)
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Fed: Recession to last into mid-2009
The Federal Reserve Bank expects the U.S. economy to be in recession until at least mid-2009 as credit and lending troubles bite into business spending and prompt layoffs.
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Steve & Barry?s to liquidate
Steve & Barry’s stores will liquidate by early 2009 after its new owners said they would not be able to find financing, Reuters is reporting.
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W-S schools sends $2M back to state
The shortfall in the state budget will force Winston-Salem/Forsyth County Schools to send $2.03 million back to Raleigh, according to district officials.
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Green construction starts jump five-fold
McGraw-Hill Construction released a report on Wednesday that found the value of green building construction starts was up five-fold from 2005 to 2008. According to the Green Outlook 2009: Trends Driving Change report, starts were up from $10 billion in 2005, to between $36 billion and $49 billion this year, and could triple by 2013, reaching a range of $96 billion to $140 billion. (MHP)
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Steel: Wells deal is best for Charlotte
Wachovia Corp. Chief Executive Bob Steel said Thursday that Charlotte could eventually see more jobs under Wells Fargo & Co. than Wachovia’s current 20,000 employees here, but that will depend more on industry trends than the impact of the banks’ merger. (WB) (C) (WFC)
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PTIA to open new interchange
Piedmont Triad International Airport announced that it will open a new road interchange this weekend to handle all vehicular traffic in and out of the airport.
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UNC trustees approve higher tuition, fees
The University of North Carolina at Chapel Hill’s board of trustees on Thursday approved increases in tuition and fees for all students.
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FDIC chair Bair: More 'ammunition' coming to strengthen banks
Federal Deposit Insurance Corp. Chairman Sheila Bair is an optimist. (TROW)
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Lawsuit challenges N.C. CON law
The N.C. Institute for Constitutional Law has filed suit challenging whether the state’s process for approving new hospitals and other capital expenditures is constitutional.
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Report: Capital One looking at Chevy Chase Bank
McLean, Va.-based Capital One Financial Corp. (NYSE: COF) is on the short list of financial firms courting Chevy Chase, according to Reuters. It says Citigroup (NYSE: C) and JPMorgan Chase (NYSE: JPM) are also among final bidders, citing people familiar with talks. (COF) (C) (JPM) (STI) (BBT)
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Fed: Recession to last into mid-2009
The Federal Reserve Bank expects the U.S. economy to be in recession until at least mid-2009 as credit and lending troubles bite into business spending and prompt layoffs.
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Steve & Barry?s to liquidate
Steve & Barry’s stores will liquidate by early 2009 after its new owners said they would not be able to find financing, Reuters is reporting.
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W-S schools sends $2M back to state
The shortfall in the state budget will force Winston-Salem/Forsyth County Schools to send $2.03 million back to Raleigh, according to district officials.
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Green construction starts jump five-fold
McGraw-Hill Construction released a report on Wednesday that found the value of green building construction starts was up five-fold from 2005 to 2008. According to the Green Outlook 2009: Trends Driving Change report, starts were up from $10 billion in 2005, to between $36 billion and $49 billion this year, and could triple by 2013, reaching a range of $96 billion to $140 billion. (MHP)
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Steel: Wells deal is best for Charlotte
Wachovia Corp. Chief Executive Bob Steel said Thursday that Charlotte could eventually see more jobs under Wells Fargo & Co. than Wachovia’s current 20,000 employees here, but that will depend more on industry trends than the impact of the banks’ merger. (WB) (C) (WFC)
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