How do weekly labor draws work for rehab projects?

We quote your full project price upfront. Instead of paying 30-50% as a deposit, you pay weekly as labor progresses. Each payment is credited toward your project total. Draws start at $4k/week for smaller projects and scale with project size. Materials are separate: we provide detailed lists and you purchase directly, so you control the spend.

Is SLH a project manager or contractor?

We're the licensed general contractor. Our crews do the work: demo, framing, plumbing, electrical, finishes, everything. We're not a middleman coordinating other contractors.

Why do investors purchase materials separately?

Transparency. Traditional contractors mark up materials or bundle them so you can't see what you're paying. We provide detailed material lists with quantities and timing. You buy directly from suppliers at cost. No hidden markup, full visibility.

What payment methods do you accept for rehab projects?

The $150 scope fee can be paid by credit card. All other payments (weekly labor draws, final balances) are wire transfer, check, or cash only. No credit cards for project payments.

How do I qualify for Portfolio Partner pricing?

You qualify with either 3 or more concurrent projects OR a commitment to 5+ projects per year. This gives you 10% off weekly labor draw rates plus priority scheduling and included pre-acquisition estimates.

Do you handle permits for rehab projects?

Yes, as an add-on service. We manage the entire permit process including applications, coordinating inspections, and maintaining documentation. Permit fees are passed through at cost.

What is the most important thing to check when vetting a contractor?

Verify their state contractor license and insurance yourself. Don't take their word for it. Check the licensing board website and call the insurance company directly. This takes 30 minutes and prevents the biggest disasters.

How many bids should I get for a rehab project?

At least three. Compare line-item detail, labor vs. materials separation, timeline commitments, and payment terms. The cheapest bid is rarely the best value.

What payment structure should I use with a new contractor?

Weekly labor draws with no deposit. It limits your risk to one week of work, creates accountability, and tells you a lot about how the contractor runs their business based on whether they accept the terms.

What is included in the $150 scope visit?

Full property walkthrough, room-by-room scope of work, line-item cost breakdown with labor and materials separated, projected timeline, and a weekly draw schedule.

How do weekly draws help with contractor vetting?

A contractor willing to work on weekly draws with no deposit is telling you they are financially stable, confident in their work, and willing to be held accountable. It is the best vetting signal there is.

How to Vet a Contractor as a Real Estate Investor

I've watched investors hand $20,000 to a guy they met on Facebook Marketplace. No license check. No insurance verification. No references called. Then they're shocked when the project goes sideways.

Vetting a contractor takes about 2 hours. Fixing a bad contractor hire takes months and costs thousands. Pick your pain.

The Non-Negotiable Checks

Before you even talk about your project, verify these:

1. State contractor license. Look it up yourself on your state's licensing board website. Don't accept a photo of a license. Don't take their word for it. Licenses expire and get revoked. Check the current status.

2. General liability insurance. Ask for a certificate of insurance (COI) and call the insurance company to verify it's active. Minimum $1M in general liability. If they can't produce a COI in 24 hours, walk.

3. Workers comp insurance. If they have employees (not just subs), they need workers comp. If a worker gets hurt on your property and the contractor has no workers comp, guess who's liable? You.

4. Business registration. Are they an actual business entity (LLC, corp) or just a guy with a truck? Business registration means they have something to lose, which means they have incentive to perform.

The Reference Check That Actually Works

Don't ask for references. Every contractor has three happy clients they'll send you to. Instead:

Ask for the names of their last 5 clients, not their best 5
Ask those clients: "Would you use them again?" and "Did the project finish on time and on budget?"
Drive by completed projects if you can. Does the work look right from the outside?
Ask other investors at your local REIA. Word travels fast in this community.

The Bid Analysis

Get bids from at least three contractors. Then compare:

Line-item detail. A bid that says "kitchen remodel - $12,000" tells you nothing. You need line items: demo $800, cabinets $3,200, countertops $1,800, etc.
Labor vs. materials separation. If labor and materials are bundled into one number, you can't verify what you're paying for.
Timeline commitment. A bid without a timeline is a red flag. "We'll get to it when we can" is not a schedule.
Payment terms. If they want 30-50% upfront, that's your cue to ask about weekly draws.

The Conversation Test

Sit down with the contractor for 30 minutes. Ask these questions:

"What's the biggest project that went wrong for you, and what happened?" If they can't answer honestly, they're either lying or haven't done enough work.
"How do you handle change orders?" You want to hear "written, priced, and approved before work begins."
"What's your current workload?" If they say they can start tomorrow, be suspicious. Good contractors are usually booked 2-4 weeks out.
"Will you work on weekly draws instead of a deposit?" Their reaction tells you a lot. Professionals say yes. Guys who need your money to operate say no.

Red Flags That Should End the Conversation

No written contract. Walk away.
Pressure to pay a deposit immediately. Walk away.
"I don't need a license for this type of work." Maybe true, but it tells you about their professionalism. Walk away.
Can't provide proof of insurance within 24 hours. Walk away.
Bad-mouths every previous client. Walk away.
The bid is significantly lower than everyone else's. That's not a deal. That's a future problem.

The Payment Structure Test

Here's the ultimate vetting question: "Will you work on weekly labor draws with no deposit?"

A contractor who says yes is telling you:

They have the financial stability to float a week of labor
They're confident in their work
They don't need your money to fund other projects
They're willing to be held accountable weekly

A contractor who says no is telling you something too. Listen.

At Seller's Little Helpers, every project runs on weekly draws. It's how we vet ourselves to our clients every single week. We think that's how it should work.

Book a $150 scope visit at sellerslittlehelpers.com - skip the vetting headache. We'll walk your property, build a scope of work, and show you what weekly accountability looks like. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

How to Vet a Contractor as a Real Estate Investor (The Hard-Earned Checklist)