When you're purchasing fix and flip properties, one of the most critical parts of the equation is a great contractor. If you're worried that your contractor isn't up to par, however, there are several signs that you've hired a bad contractor--and that could land you in plenty of hot water. If you recognize any of these signs, it's time to take a hard look at your contract and see what other options you have.

1. Your contractor won't give you a cost up front. A good contractor can look at your job and give you an estimate of what it's going to cost them to take care of it--including overhead and profit for them. A bad contractor will keep adding to the initial estimate, finally offering you a bill that's much higher than you anticipated.

2. Your contractor is missing vital licensing or insurance information. You want a contractor who is appropriately licensed and insured in order to protect your property.

3. Your contractor didn't have any references to give you. They can't show examples of previous work--or what they did show you looked like stock images that could have been pulled off the internet. A good contractor will be able to offer references from previous clients who are happy with their work.

4. Your contractor is constantly late to the job--often by a lot. Extenuating circumstances happen. If your contractor is always late and constantly making excuses, however, it's a good sign that you've hired a bad one.

5. Your contractor consistently misses deadlines. You need to get your property fixed up and flipped in a reasonable period of time in order to make money off your investment. If your contractor constantly misses deadlines and there are several signs that work isn't progressing as it should be--barring, of course, things like the weather that are out of anyone's control--chances are, you've hired a bad one.

6. You've noticed your contractor using substandard materials. The things going into your home simply aren't the quality you asked for initially--and as a result, your contractor may be pocketing the money instead of putting it into your property.

Fix and flip properties are part of your income, and you want to be sure that you're doing it right! If you want to learn more about telling the difference between a good contractor and a bad one, contact us to learn how we can help.