What investors should know before buying a fixer-upper home
Buying a fixer-upper home can be a profitable way for first-time property investors to get into the real estate market, ...
Finding the right people is an essential part of any investor’s journey, with a quality builder saving investors time and money.
In a recent episode of The Smart Property Investment Show, Builder Finder's Lynette Manciameli explained to investors the tips and tricks to finding the right builder.
Ms Manciameli said one of the most important things for investors to look at when they are trying to find a builder is to see if the builder is licensed.
“Make sure that they have a current licence and make sure that it is not expired because they may have it, but it may well have expired or lapsed,” Ms Manciameli said.
When looking for a builder, she also highlighted how investors can vet a builder to make sure they get the right builder before a project starts.
“I’ll start through my processes of how I vet builders. But references, so if the builder doesn’t want to give you references, you’d be wondering why. That’d be a real red flag,” she said.
“You want to be able to get some references from their client’s side. I’d be looking at their past clients over a period of perhaps the last five years. I’d be wanting to talk to their current clients, like people they’re actually building for right at this very moment.”
Ms Manciameli explained that investors should go beyond simply talking to references and also talk to the tradie’s suppliers.
“There are people that are supplying them things, but also their tradies that they’ve got on sight because that’s a real good indicator of how tight their crew is,” she said.
“If I get an electrician telling me, ‘Yes, I’ve been working with that builder for five years, 10 years, plus 20 years,’ even if they’ve been around for a long time, that’s a really good indicator that they’re maintaining a stable crew around them and they’re working well together.”
Ms Manciameli also noted how she personally would ask for a copy of an ID to make sure the builder is how they say they are.
“I like to verify their ID. I simply just ask them to have a look at their driver’s licence. I get a copy of their licence because you want to be able to verify the identity of who you’re dealing with. You want to make sure that that person you’ve met, Joe Blue, does actually own ABC construction company and he is a director or the nominated supervisor of that company,” Ms Manciameli continued.
Finally, she noted the importance of communications and making sure the builder is also comfortable, to make sure it’s an effective relationship.
“Communication is really right up there. If they don’t communicate well with you, initial transaction of getting to know one another, finding out your suitability, we don’t want to have it, because it does work both ways. Builders need to be comfortable with their client.
“I know builders that have rejected clients, just thinking that they can’t work comfortably with them. So, you want to make sure that the client can communicate well with the builder; they’re responsive on email or over the phone. And you want to be asking the references that question,” Ms Manciameli concluded.