How do I Become a Contractor?

Question

Hi!

I am a complete rookie when it comes to real estate. My plan is to become a contractor and rehab properties with my partner in Houston. However, there is no guide to becoming a contractor. Should I go to school for contracting? Or should I study on my own and take the state licensing test?

So my plan is to attend San Jacinto College for a Bachelor's in Construction Management, then take the state licensing to become a contractor once I graduate. I don't want to fail at this so I feel that school is must. I also plan on going to on-site jobs while in school and creating relationships with vendors.

I guess I need advice from people who have walked in my shoes. Is school necessary? Or can I succeed and save time by learning this trade myself?

Thanks for your time and consideration!

Emmy

Jay C. · Answer

Buy a Delorean and convert it into a time machine. Then travel back in time as a young child and hopefully your father can teach you.

The reality of it is my belief is you either have a knack for this type of thing or you do not. You cannot teach everyone everything. My dad had me wiring homes and plumbing them as a kid. No school can teach you that. You yourself stated you are a rookie when it comes to real estate. Well maybe hone in on that. Any Tom or Jane can be a realator but repairing homes is another deal that involves some skill and know how.

In this day and age there is a million ways to make money. Choose one you know something about as you will be far ahead of the game. If your passion is this well keep at the school and like others mention and get on site. You see a school only can give you so much. The very best contracters out there learned from the bottom up.  You are attemtping to learn from the top down. It will be tough.

Keith Belzner · Answer

The big question is what type of contractor do you want to be? There are 2 types, a paper contractor and a working contractor. Let me explain the difference.

1. Paper contractor - Has degrees in business management,  project management, finance management ect. . He is the one that will hire all subs and even an on site supervisor who knows the trades. He has learned knowledge of how to run a business.

2. Working contractor (As Cole said) - Has worked in the trades for years swinging a hammer and putting in the hard work and sweat learning his trade as a carpenter, plumber, mason ect. He has working knowledge of what it takes to repair a house.

I am not saying one is good or bad over the other, just that you cant decide to become either one overnight. Good luck.

Kerry Noble Jr · Answer

here in my county.....u have to apply....pay....have insurance.....boom, youre a GC

George W. · Answer

I can only speak for NJ at the moment because that's where I'm a licensed plumber. starting a contracting business is serious dedication. You have to be able to wear many hats to be successful at it: You need to be part tradesman, salesman, lawyer and accountant.

It takes a lot of effort to get your business off the ground and in most areas is cut throat. Building a solid customer base with great employees is key. Also there is a large shortage of skilled workers. If you plan on just hiring a top notch well rounded individual to do the work it will be a very large monthly expense for a newly formed business. Sometimes work comes in cycles and the Bill's keep on coming. Tools & trucks are things that constantly need repairs, maintenance etc.

My honest advice skip the construction management college class for now and go get your hands dirty first. Experience is everything in the construction industry. school will not help you become any better of a contractor if you have no experience in this field. If you get a wide range of experience in this industry you'll have a major one up.

Trade school will help you learn theory and codes. Also may be needed for your license. Learning the business law end will also give you a major one up because frankly most contractors are horrible at running the business end of their business.

Brandon Brown · Answer

On the job you learn 'HOW'. In school you learn 'WHY'. I recommend both. On the job experience as well as school.

Rachel H. · Answer

Many successful contractors I've met started from the ground up either working for a company as an employee or being an apprentice for someone else in a specific area. As with any business, it's best to learn the ins and outs in order to run it effectively.

Hope that helps!

Karen Margrave · Answer

@Emmeriah McDowell Each state has their own qualifications for licensing, so you will need to check with yours. A formal education isn't required, though having a good foundation and understanding in finance, business law (contracts), building standards, etc. is good.

As was mentioned above, the best route for you depends on what it is you want to do. There needs to be someone on the job that knows how to build; and can oversee the jobs. It takes time to learn everything that is involved, depending on if you are doing simple rehabs or new construction, etc. The best way to learn is by working in the trade. Getting a license isn't the issue, it's knowing the trade.

You can always hire a General Contractor, it's not necessary to do it yourself. The question is, what is your end goal, do you want to work as a contractor and do contract jobs, just your jobs, rehabs, development, etc.? Once you know that, you can decide what the best use of your time is. Is it going to school, or getting on construction jobs to learn the trades? Or possibly a combination of the two?

I am a licensed general contractor in California. I had to show experience in the trade and take the test. I do not however; work on the jobs. I do go out to the jobs and check them out at various stages. Our projects are all owner/builder, so it's not necessary for us to be licensed, howevver; many lenders require a licensed contractor.

Emmeriah McDowell · Answer

Thank you all so much for your advice! Very helpful and insightful!

Emmy

Cole Walker · Answer

@Emmeriah McDowell I am a contractor and I have been doing construction for about 16 years. Ill tell ya what, the thing that helps me out the most is being in the trade for what seems like eternity. You have to know what comes next, you have to know codes, you have to know people, you have to know suppliers ( I know some people just go to home depot and buy their stuff) but as you grow you realize that that is not the place to be! J Scott will get all over me about that one :)

If you are willing to take a management class that is a good start but in my humble opinion you may want to hire a project manager, foreman, or a superintendent to help you on your journey.

I have taken loads of classes, courses, certifications, blah blah blah but I feel experience is the real teacher. Bummer it takes so much time.

In my state I don't even think they require schooling or years of experience..... I could be wrong since its been  awhile since I filled out the paper work. But like I said, I may save you a few head aches by making friends with a couple and hiring them to help you out.

Best of luck whatever you choose.... and keep us updated on how it goes!

Bryan L. · Answer

@Emmeriah McDowell - In most locations, you don't have to have a license to rehab your own properties - or those of a partner.  I once looked into becoming a contractor so that I could build spec-houses.  The expenses (liability insurance) were quite high.

How do I Become a Contractor?

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