Are there any Contractors here that have started investing themselves?

Question

I have worked with many contractors that do all the work "FOR" the investors and I get feed back they would like to start working for themselves and make their own profit.

If you are one of them please DM me I can help you get started and know what to expect up front

Anthony Smith · Answer

I sit on the investor side of this in Detroit, and I work with contractors every week, so I'll give you the pattern I actually see. The contractors who make the jump successfully almost never fail on the construction side — they know what a rehab really costs better than anyone. Where they get hurt is everything around the construction: they price their own labor at zero, forget holding costs, taxes, insurance and vacancy, and buy the deal because the rehab number looked easy. The deal has to work with their labor priced like they'd charge anyone else, or they're just buying themselves a job.

The other thing I'd tell any contractor thinking about it: your first deal will take twice as long as your estimate, because you'll do it nights and weekends around paying work. Underwrite it that way. If it still pencils with real labor, a real timeline and a real exit, your trade knowledge is a genuine edge — most investors are guessing at the one number you actually know.

Ryan Cobb · Answer

That's exactly the pattern I see on the lending side too. The rehab budget is usually the most accurate number in the whole file, and holding costs and their own labor are where it falls apart. I always tell guys to run it like they're paying themselves a normal rate and to add a couple months to whatever timeline they're thinking.

Chris Seveney · Answer

I am actually looking for the opposite, which is contractors who want to come work specifically for an investor Versus running their own company

Ryan Cobb · Answer

Fair point. Not every good contractor wants to carry the risk, and a steady investor relationship is a great gig for a lot of them. For the ones who do want to make the jump, a first small deal with real numbers beats trying to go big right away.

Are there any Contractors here that have started investing themselves?

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