Subcontractors fill different specialties in the real estate, bringing their particular abilities at whatever point and any place they're expected to finish a project. Likewise, with most things, it's critical to be cautious before picking a subcontractor for a specific work. What is it that project managers and entrepreneurs need to be aware of to vet their new subcontractors before making all necessary endorsements appropriately? Go through the whole procedure and execute it properly. If you have one deal or several deals going on then you need a quality contractor or multiple quality contractors. It is the same as growing your real estate investing company through marketing. First you’’ connect with a construction coordinator who will go through some research process and once it is on-boarded then there will be a vetting process. Through the vetting process, a person will undergo different verifications to qualify and then a meeting will be set up. Once they clear all the steps, they can do business with you. You and your team need to document the process every step of the way to find and begin working with only the best contractors in your area. It’s a key to growth for your business. Thank you all for listening and I will see you in the next episode. When you're ready, head on over to https://easysell411.com https://billyalvaro.com https://billyssecrets.com To get some neat (and FREE) Tools | Tips | Tricks to help you in REI!
Subcontractors fill different specialties in the real estate, bringing their particular abilities at whatever point and any place they're expected to finish a project. Likewise, with most things, it's critical to be cautious before picking a subcontractor for a specific work.
What is it that project managers and entrepreneurs need to be aware of to vet their new subcontractors before making all necessary endorsements appropriately? Go through the whole procedure and execute it properly.
If you have one deal or several deals going on then you need a quality contractor or multiple quality contractors. It is the same as growing your real estate investing company through marketing. First you’’ connect with a construction coordinator who will go through some research process and once it is on-boarded then there will be a vetting process.
Through the vetting process, a person will undergo different verifications to qualify and then a meeting will be set up. Once they clear all the steps, they can do business with you. You and your team need to document the process every step of the way to find and begin working with only the best contractors in your area. It’s a key to growth for your business.
Thank you all for listening and I will see you in the next episode.
When you're ready, head on over to
To get some neat (and FREE) Tools | Tips | Tricks to help you in REI!
Billy :
What is going on everybody? Welcome back to another episode of unstoppable Rei. Well, I'm your host, Billy Alvaro, the unstoppable BA. And I'm doing a solo cast today. And the reason being is one of my people that was supposed to come on had computer problems. So I improvised, and it just makes shit happen. So I'm going to go through because we did one last week, regarding rehabbing systems, right, we were speaking about how to scale your company in the rehabbing market, and to take your company to the next level, utilizing the various systems that we use, what we do, how we have everything, like mapped out this, I gave you guys a look at if you're watching, if you were listening to the podcast, you really couldn't, you couldn't see what I was doing. But on YouTube, I was showing you guys like an in depth view of everything that we utilize inside build a trend. All of our folders, how it's structured, and the processes, one of the things that's going to come into play, when you're starting to scale your real estate investing company, you're going to start having some pains in many areas, one is going to be on the contracting side, right, you're always going to have to be recruiting and finding contractors to add to your team. Look, if you're doing a few deals a year, and you have one or two contractors and you're dealing with them, and that's it perfect. But if you're going to scale, the more you grow, the more that you're going to need good quality people to service your houses and renovate them. And if that's the case, you're going to have a process, you're going to need a process rather to find that and bring in quality contractors. So how do you do it? Well, you do it the same way you grow your real estate investing company, if you have a real estate investing company, how do you grow that you grow that by of course marketing, you have a marketing system, that gets sellers to pick up the phone and call you we have a whole process mapped out. And it's all these different systems in which you're putting marketing dollars out, you tracking what comes back in, probably have lead managers to pick up the phone, they'll vet the sellers, they'll set up appointments for your acquisition manager goes over the entity am he then goes out, gets the seller to know like and trust him converts that application into a contract that goes into your back this goes apartment with you wholesale or renovated. It's a process right? The same thing. When you read when you're recruiting for contractors. If you think about every step in your business, everything is a process. Everything has a workflow, everything has a process to it. And so it's no different with recruiting for contracts. So I'm going to give to you today on this podcast, you're not going to be able to see it, if you're listening, you'll be able to see it if you go over to YouTube, unstoppable Rei wealth, give me a like and you this, I'll actually send this over to you if you want this document. Give me some positive comments. And I'll definitely send you over the document no problem at all. So let me show you the documents you have an understanding of what it is really a basic recruiting document.
What this does is it gives our team an in depth understanding of if we're entering into a new market, and or if we're experiencing growth in the market we're in how do we go about finding, vetting and taking contractors in in an auto in an automated process that's going to get us an end result of quality people in the pipeline. And so if you're not watching, I'm going to spell this out for you. It's a workflow chart. On the upper right. It says in blue boxes, blue is our virtual assistant and is also a construction coordinator. The virtual assistant goes through this is 1 2 3 4 5. These six different main headers in his workflow. It's find and research. It's qualify. It's verified, scheduled time with the PM. PM then qualifies on site. And then we have onboarding. So if you think about this process, just like an acquisition, you market for sellers, we're going to be marketing for contractors. Those contractors come in. There's going to be a vetting process. We're going to vet, we're going to qualify them over the phone or in text or in email. From that process, it goes over, we're going to verify what they actually told us, then we're going to set up with the project coordinator, the construction coordinator, the VA, is going to set up a time after these contractors are vetted, and they meet a certain criteria, she's going to set up a time for a pm to actually talk with these contractors, then the PM is going to go through his whole process. And then once they pass, and it's somebody that we think we can do business with, and they seem like they're going to be a good fit. And we go through a whole process, then we have the whole onboarding thing. So let me break down each one of these to give you guys a really good understanding and overview. If you're going to be going out you're going to be recruiting for contractors man why recreate the wheel leverage the shit that I've utilized, like, it's right here. So number one ways in which you could find contractors civil, and again, you're gonna have your VA and or your construction coordinator. It's probably going to be a VA, and do this for you. And all each one of these boxes that's on here, you're going to want to have a little process flow or a video created. So he or she knows exactly what you want done. So one of the ways you can do it online, you can do a Google search, right? Go to Go contractor, general contractor, Suffolk County, New York, general contractor, marble, New Jersey, whatever it is, you can go to Yep, Angie's List, we've gotten a lot of contractors in the past off Ange Angie's List where we would go on there, we would see who was vetted. And believe it or not, you can get some quality contractors at decent prices. Now I'm not talking about quality contractors at above retail price, I'm talking about quality with a fair price. And you know, you're going to have to go through a lot of crap in order to get those types of people that are going to meet criteria, because look, we can't have the cheapest price and the highest quality, they just don't go together. Right? You can't have the highest price. Sometimes the highest people can't give you the lowest the lowest quality, but you can't have low price and high quality, it doesn't work, right. So there has to be some sort of a thing in the middle and be a meeting in the middle to figure out if you can get these people to come in at a fair price, and give you quality work based on the house that you're doing. Of course, if you're in a multimillion dollar area, you're going to have to get a higher caliber of contractor. If you're in the blue collar, Middle America 340 1000 $ depending on your median price, where you're at four or 500,000, you know, a decent contract is going to be good, then you have to just make sure you have quality control checklists, to show them the quality of the job that you want done. Here's your expectations. Here's what it looks like. When you go to the property of European goods or property, you're gonna want to, to walk through each phase of the construction process and point out to them any of the issues or potential issues that you see that don't meet your quality standards.
Continuing on online, you go through and vet people off of Craigslist, TaskRabbit, house BNI. I'm not a BNI fan. I don't like to go first thing in the morning and go to one of these networking groups, but you could meet and get contractors from the BNI groups for sure. Um nash uh is a good one as well, Facebook groups. Here's a great one man Facebook group and LinkedIn more Facebook groups than LinkedIn. Because what I found is the high caliber contractors are going to be on LinkedIn. But the more Mom and Pop smaller three to five people in their organization. They will be in Facebook groups. And so not only Facebook groups just posting on Facebook, to your whole sphere of influence. Like I had to go find somebody that the guy was using for mold remediation in Long Island. He went out of business. I called his cell phone number, I haven't used them in like a year and he just went out. And so I posted on Facebook real quick and I had you know six, seven people hit me back. I had a lot of people actually text me. they didn't post the name. And I got three really quality companies to do mold remediation. snap of a finger. So key Facebook, Facebook groups and your regular Facebook, just posting it online is key and also county records. Right. So what I mean by county records is, in a lot of the areas that you're going to want to do business in most if not all of the contractors have to be licensed. And generally that county that they're licensed in, will have a list of the contractors that are licensed in those areas. You can take down that list, you can have your VA have a whole process to call them to email them to text message to him just don't blast through a one off to see if they're interested in doing business with you as a company who finds fixes and flips properties. Offline. You could ask your existing contractors. This is a huge ask for your existing contractors for some references. You could attend association meetings a 10 networking meetings you can go to which is not on here, but it should be, you can go to, you can go to Home Depot, you can go to Lowe's, you can go to the pro department, you could ask them who they utilize, you could drive around and see what what house has been renovated. And just, you know, talk to the contractors and so Hey, you look at for any more work, it looks like you're doing quality work, I'm in the I'm in the business, we're actually renovating properties, we're doing things and I'm looking at a couple of more quality people, if you want to scale it driving around is obviously obviously not going to be the best use of your time, you want to try to get it to where you can leverage somebody else to do most of the heavy lifting to find and research contractors that are licensed to then bring them in to some sort of a funnel, almost like a sales funnel. Think about this, in order to get them to either disqualify themselves, or to rise, the cream rises to the top to see if this is somebody that you want to do business with. So once they come in your VA, she's going to identify those people that are raise their hands, if she's doing outbound marketing, she's posting ads on Facebook, these people are gonna respond in somehow, when they respond in, you're going to have a list of qualifying questions that she's going to ask now we have a one pager to think about, it's almost like a, an intake sheet for a seller lead. It's not the same question, but it's a questionnaire. And basically, on this questionnaire, what we're doing is we're asking questions of the sub of the contractor. So we can either get them qualified or have them disqualify themselves. And all we're looking to do is to get them to a point where we're able to hand them off to the next step. Think about your sales process. Your next step goes from, from marketing, to lead manager to acquisitions manager. And here we're looking to go from marketing, to your VA to your project manager, same process flow, just a different person who you're marketing for.
Your VA is gonna ask them questions, they're going to ask all qualifying questions, they're going to fill this out, we have this form in paper, we also have this form built out in our Podio system, which we utilize to house all of our contractors. She asked all the questions. She asked about their insurances. She asked about their licensing, she asked about their cruise, she asked about the pricing, she asked about a bunch of different things, to get it to a point to where we can say okay, this is somebody who is open to working with us or right off the bat, like, I don't deal with other contractors I don't do itself, I don't feel invested. So if that's the case, we kill it, we move on to the next one. Once all that information comes in the VA that is going to she's going to go through and she's going to do some searches before she sends it over to our project manager. She's going to search if this person has complaints in their license, what are the complaints for, are they actually licensed, is their insurance in good standing. We're gonna do Google searches online to see if there's any complaints against this person, any type of lawsuits with these people now, lawsuits happen shit goes down, you know, the guy might not be a bad guy, something might have happened in his life where he got involved with a lawsuit or two. But we just want to know the person that we're getting involved with, in regards to reference checks. 12 years ago, I got involved with somebody who was referred to me by a friend, I never vetted him the right way, because it was know, like and trust, I had a friend that referred to it, it was automatically that like, hey, came from a friend, it's gotta be good. I didn't follow my own rules back then, which is vet everybody didn't vet this guy, guy ended up taking I think was either 12 or $14,000, from me took the money, and fucking ran. And so reference checks, Google searches all this shit, I don't care. If they get in, if they refer to you by their father John, you're gonna want to do a reference check on this person just to see if anything pops up. Because guess what shit happens, you want to know who you're dealing with. So your VA is going to do all this. And then if it meets a certain threshold, you're going to come up with your old scorecard, for your VA for this for the vetting process to say, Okay, this is somebody that we're willing to now take and go and had scheduled time with their PM, if it's not, we simply part as friends, we tell them look, it doesn't look like we're going to be a good fit. We take that person, we mark them off in the database as they never market to them again, because they're not going to be a good fit. And we just parted as friends. And once you really go through the verification process, she scheduled the time with the PM, and the PM now here is his thing he's going to go through. And the first thing we want to do is we want to , he's going to well not the first thing but he's going to want to go through and he's going to want to verify with this contractor that he's able to meet the pricing structures that we had. And if you've been doing this business for any length of time, you kind of know what you're paying per square for roofing for siding, what your it's costing you per per window to install, what it's costing you per lineal foot of trim to put in what it's costing on average for it, you know, a kitchen that's, you know, 10 by 15 to install, so you're gonna have a general idea of what it's running you to run your business and if not, you're gonna have to start doing this with multiple people to see what their pricing structure is. But you're going to want to go through and have your project manager start this See if they're going to meet our expectations for pricing. Right. So as we're going through that, which we check the box, then we're going to want to go through and we're going to want to go and look at some of the work they've done. So they're going to go online, look at some of the pictures, then they're going to go do site visits, our PMs are going to go out to properties that these guys are currently on to see. And I can tell you, I did this when I had just moved to New Jersey and had to rebuild and start brand new in New Jersey because I had nobody out here. No, no PM, no contractors. And I can remember, following this process, it wasn't as thorough as this. But I remember following this process and going through a contractor site, and the first contractor I went to, he was in insulation he was doing on the inside of the property, he was on his finished work and the inside of the house was a freaking disaster. There was shit all over the floors, it was crap on the kitchen counters, brand new kitchen counters, tools everywhere, everything was getting scratched. And the first thing I said to myself is, there's no way this guy, he just doesn't care about his job sites. He literally had scratches on the floor from his tools on a brand new house that he just got done doing well rehabbed the house, but everything was renovated on the inside. So you're going to want to go to your properties, go to their properties and check the properties out. Because if the property looks like a disaster, if there's crap all over the place, I can tell you, if it's like that one it's going to be like that at all, on the flip side, you go to a house, nothing's ever going to be perfect. But if you go to a house and you see like, and this guy has his shit together, it's organized. He has his stuff, you know, in the garage. At the end of the jobsite, at the end of the day, you kind of show up at like 3:30, 4:00 or 4:30. And you're like, Man, this job is actually pretty cleaned up, you pop up in the middle of the day you see the guys at work and they're not jerking around, this is somebody you're going to want to to put in your shortlist to actually then take in and get on boarded, you're also going to want to take them through after you do the site visit, you're going to want to ask them for a sample bid, you're gonna say, hey, look, you always want to have one property with a scope. That's pretty general, but specific enough that they're going to be able to bid off of and use that because you've already done the property use that as a general guideline to see how they bid off that job. And when we do our bids, you know, for everything for exception of rough plumbing, rough electric and HVAC, we're having them bid out everything just with labor, we take care of all the materials, we do all of our take off some materials, because we realized that it saves us a few points right down to the bottom line. And every dollar to the bottom line is dollars in your pocket. So but when you're running with these subs, you're getting them to bid, give them a bid package for a job you already did. Because you know what the costs were, you know what your last contract that did the job at just doesn't fill out anything for fulfilling what the bids are worth, see what he comes in at. If you pass all of this, and you go through the backgrounds and the quality assurance procedures that we have in our protocols, and the expectations of what we look for on the jobs and how we do updates in build a trend and are they technologically advanced, and they pass it then it goes right over back to your construction coordinator or to your VA. And she does a whole entire onboarding process. And with that she collects and she gets all their insurances, she makes sure they have the general liability, their workers comp, if they need bonds, fill out a 1099. And then soon as that's ready, we have a job. Everything is on boarded inside build a trend, they're ready to go. RPM chooses them to have the job she hits the button contracts automatically go out the the contracts are signed in and they're ready to rock and roll ready to work. So this this just took me 20 minutes to go through this. This one page, this one simple onboarding, subcontract a vetting and workflow process is just like anything else. It works if you work it. It's a system and a process. But it's not It's only as good as the paper that is written on. If you and your company and your employees and your team members have these pieces of paper, these documents, and they're kind of sending out your number and you're not utilizing them consistently in your business, and you're not pulling them out and revising them and updating them and leveraging them in order to grow your business. They're worthless, don't use it, don't bother, don't waste a frickin minute, going out there and trying to do anything to build your business because it's not going to work if you don't work it right. If you take the time to do this shit and you implement it, execute on it and put it into your business and start using it on a daily basis. I'm telling you, it's gonna happen, you're gonna grow, you're going to have more money down to the bottom line, you're going to have less stress less struggle, you're going to be able to manage your business from afar I'm managing this business now multiple states from afar, never thought it was possible I'm doing it because of the systems and the processes that we have then, but equally as important, actually more important is the quality people that we have on the team. And that's a whole nother conversation quality people on your team internally. As much as externally your subs is key to growth add on processes and systems and you have an unbelievable, unstoppable business model. Alright guys hope this helps. This was the system process that we utilize for vetting, finding, researching, qualifying, verifying and onboarding, subs how to do it. What the process is, if you guys like this, this podcast do me a favor, give me a like, give me a thumbs up, give me a little statement. If you guys want a copy of this subcontract and vetting form, by all means, leave me a comment, take a picture of it, send it over via email Billy@easysell411.com That's billy@easysell411.com Hit me there show me that you left me a comment either on my podcast or YouTube. And I will make sure my assistant gets us out. Just say hey, here's the comment they left on YouTube or your podcast. Please send me over the subcontractor vetting workflow and my team will get that right out the hope you guys have a great day go out there kick ass, make sure happen. And remember, if you want to partner with me, JV with me or invest with me, go to Billyalvaro.com, fill out the form there. And a lot of people making money with me on the JV side, have a lot of people make money with me on the investment Billy's side and have a few people that are that I'm working with I'm showing them how to find deals, they're bringing in the deals, I kind of put them off to my team. And my team is actually working the deals for them and they're making money and so are we so it's a win win win all the way around. And I'll see you guys in the next one. Have a good one. Bye bye