It is important to understand the difference between a contractor and a handyman. Many handymen will represent themselves as remodelers but lack the skills do all the tasks sometimes required to do the work. Most handymen don't have a contractor's license as it is not required in most states.

A bona-fide remodeling contractor is fully licensed by their state of residence and should be able to handle all aspects of a home improvement project or supervise those completing some tasks. These include, but are not limited to – carpentry, electrical, and plumbing.

Real estate investors need to do some footwork before hiring a contractor. Finding a contractor is fairly easy, but finding the right one to work for you requires some due diligence. A good place to start your search is through professional organizations, the Better Business Bureau, and the state itself. One effective trick is to talk to the local home improvement centers to see if they would recommend any local contractors.

Once you have contacted several contractors you should ensure they have the basic credentials. Are they licensed with the state? This gives you some extra clout should it come to dealing with any problems with the contractor that may arise. Some questions you might want ask:

1. Will the time frame for your project fit into their time schedule?
2. How much liability insurance coverage do they carry?
3. Do they have Workers Comp?
4. Can they provide you with references of home owners who are satisfied customers?
5. How soon can they get started?
6. Would they be willing to work in other locations away from their hometown?

These are basic screening questions only. As you get further into the hiring process more questions will arise.

Once you have narrowed down your choices to two or three candidates ask them to give you an estimate for the job in question if at all possible. Even if you don't yet own the home they should be able to access the property information online.

Once you have received all of the estimates take the time to compare them. Remember that cheapest isn't necessarily the best way to go. Compare estimated time for completion, supply costs, and labor prices. Meet with the contractors again to discuss their estimates if needed. Also do not let anyone try to persuade you to sign any agreement before you are ready.

You can become successful in real estate investing by being well informed, taking the time to completely research your remodeling options, and getting other opinions if necessary you will be able to confidently choose the contractor that will do the best possible job for you.