In the world of real estate investing whether you’re flipping homes, rehabbing rental properties, or renovating your personal residence there’s one constant that can make or break your experience: contractors.
Let’s be honest. We’ve all heard the horror stories. Many of us have lived them. The job that never got finished. The craftsmanship that crumbled before inspection. The budget that exploded with mysterious charges. And the most devastating of all the contractor who vanished with your deposit and left nothing but dust and broken promises behind.
I say this not as an outsider, but as someone who’s been in this game for decades flipping properties, managing large-scale projects, and financing thousands of rehab loans. And yet, recently, I made a mistake I should’ve known better than to make. I ignored my gut. I didn’t follow process… I followed emotion. And I paid for it.
It started with a price that seemed too good to be true. And of course, it was. Like many of us, I wanted to save money. That’s human nature. But in real estate and construction, trying to save money the wrong way will almost always cost you more. That lowball quote came from someone who presented well at first, but when I pressed him with basic questions like when he could start, how many crew members he had, whether he worked alone he got defensive and aggressive.
That was my cue to walk away. But I didn’t. I rationalized it. I “gave grace.” And what followed was exactly what you’d expect: incomplete work, missed deadlines, constant trade-switching, and endless excuses. In the end, I had to pay twice once for the job done wrong, and again for it to be done right.
Now, I’m not telling this story to vent. I’m telling it because too many of us are making the same mistake. We don’t follow a clear vetting process. We hire based on word-of-mouth or emotion. We don’t ask enough questions. We don’t demand documentation. And when it falls apart, we blame the contractor without acknowledging our role in skipping the basics. But there’s something even deeper at play here and we need to talk about it.
The Dangerous Narrative About Black Contractors
Within our community, we’ve inherited a toxic mindset when it comes to doing business with each other. You’ve heard it. I’ve heard it. That casual but corrosive statement
“You can’t hire Black ” That narrative is not only hurtful it’s dangerous. It plants a seed of distrust within our own ecosystem. It reinforces the false idea that professionalism, skill, and integrity are only found outside our community. And it gives cover to a much larger issue the lack of process, accountability, and structure on both sides of the relationship.
Let’s be clear some of this criticism is rooted in real pain. Some of us have had bad experiences with Black contractors. But guess what? People of every race and culture have hired the wrong person. And yet, we don’t write off entire communities when someone outside of our own drops the ball. But when it’s one of us… That mistake gets passed from neighbor to neighbor like folklore. No forgiveness, No context, just judgment.
The Economics of Circulation: Why This Matters
Here’s the hard truth we can’t talk about Black homeownership, community development, or generational wealth without talking about the Black dollar. We spend over $1.6 trillion annually that’s more than the GDP of most nations. And yet, that dollar only circulates for 6 hours in our community before it leaves. Contrast that with 17 days in the white community, 20 days in the Jewish community, or 30 days in Asian communities. We are hemorrhaging economic power. You want to change our neighborhoods? Improve schools? Reduce crime? Create jobs? Build ownership? Then we have to start spending with each other and investing in Black excellence.
Supporting Black contractors, lenders, realtors, inspectors, appraisers, and developers isn’t just about business. It’s about strategy. It’s about liberation. Every dollar you redirect inward is a seed planted in the soil of collective power.
Truth, Standards & Love: A New Way Forward
Let me say this plainly: we can’t support each other without also holding each other accountable. We don’t build power by lowering standards. We build power by raising expectations and walking alongside each other to meet them.
That means:
- Stop hiring people because they’re your cousin, your barber, or your friend from church unless they’re qualified.
- Stop asking for “hook-ups” and favors from our own people when you’d never do that with someone outside our race.
- Stop punishing every Black-owned business for the failure of one.
Instead, let’s build a culture of excellence with love.
Here’s how:
Do Your Due Diligence
- Verify skills – If they’re an electrician, don’t let them “try” to do your HVAC.
- Hire specialists – Don’t give someone a whole house if they’ve never even tiled a bathroom.
- Check past work – Ask for photos, addresses, and referrals.
- Confirm licenses and insurance – No exceptions. Period.
Ask These 10 Questions Before You Sign Anything:
- Are you licensed and insured?
- How many projects like this have you completed?
- Can I see photos or addresses of your recent work?
- Will you be doing the work yourself or subcontracting it?
- What’s your timeline and how do you manage your projects?
- How many people are on your team?
- How do you handle delays or change orders?
- Do you provide written, itemized estimates and contracts?
- Can I speak to at least two recent clients?
- What’s your communication style?
Set the Right Structure
- Start small – Test a contractor before handing them a major job.
- Use contracts – Always in writing. With clear scope, deadlines, and payment terms.
- Pay in phases – Tied to completed work.
- Document everything – Emails. Texts. Photos. Receipts. Keep a record.
Final Thought
This is a two-way street. If you’re hiring someone, be a responsible client. Communicate clearly. Pay on time. Respect the schedule. Don’t micromanage or ghost them. Don’t ask for $10,000 of work for $2,000. To every hardworking Black contractor reading this we see you. Keep growing your business. Keep mastering your craft. Keep showing up with integrity. We need you.
And to every homeowner, investor, or developer your money is power. Where you spend it matters. Who you trust it with matters. If we want stronger communities, better infrastructure, more equity, and more legacy we need to start circulating our capital with intention.
Black excellence isn’t the exception. It’s the expectation. And together, we build.
Dr. Anthony O. Kellum – CEO of Kellum Mortgage, LLC
Homeownership Advocate, Speaker, Author
NMLS # 1267030 NMLS #1567030
O: 313-263-6388 W: www.KelluMortgage.com.
Property is Power! is a movement to promote home and community ownership. Studies indicate
homeownership leads to higher graduation rates, family wealth, and community involvement.
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