Will Having a GC License Make It Easier To Obtain Financing?

2 Replies

Hello,

I'm really considering becoming a general contractor to project manage my properties & have a better chance at obtaining financing.

One thing has always being stuck in my head since I went to to see a mortgage broker & lender about 7 months ago. I went to him with the proposition of networking and introducing myself; I told him that I had a partnership which was a general contractor and myself (I have the experience; worked for a multifamily investor and a flipper as a general manager plus I have good credit & cash). At the meeting the GC canceled last minute and I attended the meeting myself, The lender was interested on the GC that he can work with the GC to obtain a loan and it looks good on paper, while for me he told me that I was pretty young and anyone can type up a resume saying they were a real estate asset general manager, I honestly think he didn't believe me when I told him I have 18+ flips and I had reposition 5 multifamily in Miami Beach. He said that I needed a track record. 

The partnership did not work out. A couple of months later I went in all cash (55K) and (8k for repair), that's all my savings. I  bought an apartment to flip. It's my very own first flip, but it sucks having all your cash tied up in a single property & eating cereal & sandwiches all the time haha. I did not have enough to hire workers so I've done all the work myself. I'm currently doing punchout, and will be listing the property on Tuesday through a flat fee broker. 

After the sale, I'm thinking of getting my GC license? I will like anyone's input if it will become easier to obtain financing.

Thanks,

I would not obtain a GC License based on the opportunity to gather financing. If you need a track record then show it on paper. Present every deal you have done with closing statements with all the numbers. Regardless of your title and what you do it comes down to your experience and track record. If you come in confident with proof of your experience you will look more appealing to a lender. I started young and struggled with the "age" factor. Prove to them you know what your doing and if they don't want to work with you then find someone else and thank them for their time.

Originally posted by @Eric Percival :

Hello,

I'm really considering becoming a general contractor to project manage my properties & have a better chance at obtaining financing.

One thing has always being stuck in my head since I went to to see a mortgage broker & lender about 7 months ago. I went to him with the proposition of networking and introducing myself; I told him that I had a partnership which was a general contractor and myself (I have the experience; worked for a multifamily investor and a flipper as a general manager plus I have good credit & cash). At the meeting the GC canceled last minute and I attended the meeting myself, The lender was interested on the GC that he can work with the GC to obtain a loan and it looks good on paper, while for me he told me that I was pretty young and anyone can type up a resume saying they were a real estate asset general manager, I honestly think he didn't believe me when I told him I have 18+ flips and I had reposition 5 multifamily in Miami Beach. He said that I needed a track record. 

The partnership did not work out. A couple of months later I went in all cash (55K) and (8k for repair), that's all my savings. I  bought an apartment to flip. It's my very own first flip, but it sucks having all your cash tied up in a single property & eating cereal & sandwiches all the time haha. I did not have enough to hire workers so I've done all the work myself. I'm currently doing punchout, and will be listing the property on Tuesday through a flat fee broker. 

After the sale, I'm thinking of getting my GC license? I will like anyone's input if it will become easier to obtain financing.

Thanks,

 It's not just being a GC with a business license, it's reporting all your income on tax returns. "Gig economy" and "odd job" type income is tough to use for mortgage purposes, often impossible. 

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

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