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Rehabbing & House Flipping
Account Closed
  • Real Estate Investor
  • State College , Pa
173
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Subcontractors vs Employees

Account Closed
  • Real Estate Investor
  • State College , Pa
Posted Jan 14 2016, 09:18


Back in NY I was setup with a workers comp policy and had a handful of guys who worked for me.  I used them for flips and rentals repairs.  Since then I have moved to Pa and need to come up with a new solution.   As I see it I can do 1 of 2 options, setup a new workers comp in Pa or use subcontractors.

I have only used subcontractors on a handful of occasions, siding and roofs only.  With my employees I would act as manager and have anywhere from 1 to 3 guys working with me.  I would do all the electrical and plumbing and trim work, while they did the basic tasks like cleaned and painted.  

Now I am working full time as an investor and need to ramp up my workforce and get more done quicker.

As an employer I was paying my guys around 13/hour and the overall cost was small.  The problem with this approach is I am inconstantly baby sitting  them and still stuck doing half the work myself.

The problem I would expect to see with subs, is they are expensive and harder  to control.

I am sure some of you have been in my situation and I would like to know what you did to take your business to the next level.

Thanks.

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