Renovation Loan Requirements- Paperwork, Working Relationship w/ Contractor & Bank?

[David Robertson]

I am looking into using a renovation loan as a way to purchase properties that are too distressed to qualify for conventional lending.

I have gotten approved for the purchase & renovation loan, but had some general questions:

1. I have been told that a contractor is required to manage the renovation process. I was planning on doing a majority of the finish work myself (flooring, painting, carpentry, etc) as a way to cut cost and maximize profit. I am planning on subcontracting all of the systems work and even the drywall, but it does not make since to hire a painter for thousands to paint walls when I can do this myself. Will I still be able to self-perform this work?

2. What is the contractors role in the process? I am a commercial construction estimator and could solicit and manage scopes of work by myself. Why is the contractor required and what will his responsibilities be?

3. What kind of paperwork is involved? Is this all passed on to the contractor to handle and I just sign off on the work?

Any other information about the process would be very helpful.

Thanks.