Last year I found a house in the framing stage of construction. Long story short, I decided to buy it for my personal home. During the construction I got to know the builder pretty well.
Yesterday, I mentioned to him that im interested in flipping a few houses. Come to find out he currently flips houses for his RE attorney. I didn't have much time to get into all the details with him, but basically he said he floats the construction costs and gets paid after closing. He is willing to do that or just work for hire.
I was wondering if anyone has any experience with this type of deal... I can see how this could keep costs down because the contractor has skin in the game, but on the flip side if I negotiate a killer deal for the house and sell for a huge profit this may actually cost me more on the back side...
What Do Y'all think?!?
Call me silly, but I think this is a no brainer! Obviously you will want to have a contract to explain everything, exit strategy and such, but you have a solid GC wanting to help you flip properties. That alone saves you time and money! I think one of the biggest problems many people have is finding a solid GC.
As Brandon has said in the past 50% of something is better than nothing. Maybe he won't want 50% of the deal, but more of a commission plus cost. So I would dig in more, ask more questions, find out what he expectations are, see if you two are compatible with sense of urgency on getting things done and make sure he can meet deadlines.
Just my thoughts:)
Nicole has it right...figure out what exactly he is looking for percentage wise out of the projects, and go from there.
And I can attest to the fact that good GC's are hard to find, meeting mine in the morning to see why current project is taking so long!!
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