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The Right Way to Hire Contractors (No One Teaches This) | Ep 22
Hiring contractors can either make you money or completely destroy your deal.
In this episode of The Real Wealth Formula, Brad breaks down the exact rules he follows when hiring contractors, built from years of experience, millions in rehab projects, and painful (expensive) lessons learned the hard way.
He shares why you should never give contractors deposits, how to protect yourself from disappearing crews, and how one mistake cost him $18,000 in a matter of days.
This is a no-fluff, real-world guide for real estate investors who want to:
-protect their capital
-finish projects on time
-avoid scams
-and build wealth without unnecessary stress
If you’re buying, rehabbing, or managing property—or plan to—this episode can save you thousands.
Real talk.
Real numbers.
Real freedom.
💡 Key Takeaways
✔ Why giving a contractor a deposit is one of the biggest mistakes investors make
✔ The safer alternative: paying vendors directly for materials
✔ Why you should never pay for incomplete work
✔ How fast payment after completion attracts the best crews
✔ The “big boy date” rule that prevents delays and excuses
✔ Why contracts protect both sides when done right
✔ How lien laws actually work (and how they can hurt you)
✔ The true story of losing $18,000 by breaking one rule
✔ Why discipline in rehabs directly impacts your freedom and cash flow
🔗 Resources and Links Mentioned
REIBIZ: reibiz.com
FreedomSoft: realwealthformula.com/sponsors
PropStream: realwealthformula.com/sponsors
🤝 Connect With Us
Website: www.realwealthformula.com
Phone: 877-77-MOGUL
Email: Real Wealth Formula
LinkedIn: Real Wealth Formula
Instagram: @realwealthformula
X (Twitter): @realwealthshow
TikTok: @realwealthformula
YouTube: Real Wealth Formula
⏳ Chapters
00:00 – Introduction
01:18 – Why This Rule Matters for Real Wealth
02:02 – The Right and Wrong Way to Hire Contractors
03:00 – Roofing Scams & Why Deposits Disappear
04:05 – Pay the Vendor, Not the Contractor
05:22 – Why Materials Should Always Be Yours
06:48 – A $100K Pool Scam Story
07:25 – Never Pay for Incomplete Work
08:59 – Why Big Companies Cost More (Same Workers)
09:24 – Paying Fast After the Job Is Done
10:28 – The “Last 5%” That Never Gets Finished
11:15 – Why Speed Matters in Real Estate
12:05 – Asking for the “Big Boy Dates”
13:35 – Holding Contractors Accountable for Timelines
14:20 – Why Every Job Needs a Contract
15:46 – Lien Laws Every Investor Must Understand
17:08 – Contractors, Liens, and Leverage
18:17 – The $18,000 Mistake Brad Made
20:55 – How Contractors Hold Investors Hostage
22:38 – The One Rule That Would’ve Prevented It All
23:47 – Final Advice on Hiring Contractors
View all episodes
By Brad HovisHiring contractors can either make you money or completely destroy your deal.
In this episode of The Real Wealth Formula, Brad breaks down the exact rules he follows when hiring contractors, built from years of experience, millions in rehab projects, and painful (expensive) lessons learned the hard way.
He shares why you should never give contractors deposits, how to protect yourself from disappearing crews, and how one mistake cost him $18,000 in a matter of days.
This is a no-fluff, real-world guide for real estate investors who want to:
-protect their capital
-finish projects on time
-avoid scams
-and build wealth without unnecessary stress
If you’re buying, rehabbing, or managing property—or plan to—this episode can save you thousands.
Real talk.
Real numbers.
Real freedom.
💡 Key Takeaways
✔ Why giving a contractor a deposit is one of the biggest mistakes investors make
✔ The safer alternative: paying vendors directly for materials
✔ Why you should never pay for incomplete work
✔ How fast payment after completion attracts the best crews
✔ The “big boy date” rule that prevents delays and excuses
✔ Why contracts protect both sides when done right
✔ How lien laws actually work (and how they can hurt you)
✔ The true story of losing $18,000 by breaking one rule
✔ Why discipline in rehabs directly impacts your freedom and cash flow
🔗 Resources and Links Mentioned
REIBIZ: reibiz.com
FreedomSoft: realwealthformula.com/sponsors
PropStream: realwealthformula.com/sponsors
🤝 Connect With Us
Website: www.realwealthformula.com
Phone: 877-77-MOGUL
Email: Real Wealth Formula
LinkedIn: Real Wealth Formula
Instagram: @realwealthformula
X (Twitter): @realwealthshow
TikTok: @realwealthformula
YouTube: Real Wealth Formula
⏳ Chapters
00:00 – Introduction
01:18 – Why This Rule Matters for Real Wealth
02:02 – The Right and Wrong Way to Hire Contractors
03:00 – Roofing Scams & Why Deposits Disappear
04:05 – Pay the Vendor, Not the Contractor
05:22 – Why Materials Should Always Be Yours
06:48 – A $100K Pool Scam Story
07:25 – Never Pay for Incomplete Work
08:59 – Why Big Companies Cost More (Same Workers)
09:24 – Paying Fast After the Job Is Done
10:28 – The “Last 5%” That Never Gets Finished
11:15 – Why Speed Matters in Real Estate
12:05 – Asking for the “Big Boy Dates”
13:35 – Holding Contractors Accountable for Timelines
14:20 – Why Every Job Needs a Contract
15:46 – Lien Laws Every Investor Must Understand
17:08 – Contractors, Liens, and Leverage
18:17 – The $18,000 Mistake Brad Made
20:55 – How Contractors Hold Investors Hostage
22:38 – The One Rule That Would’ve Prevented It All
23:47 – Final Advice on Hiring Contractors