Contractor Partner vs Hiring Contractor

[Donna Ragan]

Hi everyone,

I just purchased my first fix-n-flip and am looking for some advice on saving $$$ and hassle.

Scenario 1:  Partner with a contractor (consists of 2 people) to save on building and split profits (split would be 4 ways because I am partnering with my sister)

Scenario 2:  Hire a few contractors (having a 'contractors bidding open house' this Saturday) to get multiple items done simultaneously and supply majority of materials myself.  I already have all the wood flooring, tile, kitchen cabinets, kitchen appliances and misc.  stuff.  I love auctions!!!

I am leaning toward scenario 2, but would love advice from more experienced flippers.  

I paid $22K for the flip and plan on listing for $75K-$92K. 

[Matthew Paul]

No real contractor will risk a " profit split " deal , too much to go wrong .  The second scenario sounds like you will be the general contractor , doing all the scheduling etc , its easy for someone with experience and contacts . But not to easy for a first time flip , time is your enemy , and it will take you more time .  As a contractor and you tell me you have a bunch of materials you bought at auction , I would pass personally . With you supplying auctioned materials  when you are short and cant find matching flooring , not my problem , when the kitchen cabinets dont fit right , Oh well , not my cabinets .   There is an old saying " Penny wise and dollar foolish "