I have heard arguments going both ways...
You will save money
You will learn more
You are entering the contracting business and not the investment business
You are tying up your time that you could be using to find new deals or do multiple deals at once
What are your thoughts on the subject either way?
IMO... it is great to have the knowledge and skill to do the work yourself to save money. How fast do you want to turn projects? Can you make more by finding the deals and sub out the work? Maybe take on a partner GC...
I've been in contracting and design for years, so for me it works well. Not to mention I deal with my own cash so there are no multiple deals at once...
For someone who has no history and can go after deals/spend their time elsewhere, it is probably better to hire someone. With that said, it will cost quite a bit more to do so.
I agree with Brian you will spend all of your time working with sub contractors and estimates you will have no time to do your work.
That would be great may you please share the GCs information with me? Thanks!
I did it as a newbie on new construction. Didn't turn out that well. Details in my episode of the podcast (see the link below). If you've never done it, you're better off hiring it out.
The short answer on whether or not you should be your own GC is “it depends”.
I think for most people it’s a mistake unless you really have a lot of time to devote to it. If it’s a small rehab you can try and manage it yourself, but if it’s a major rehab, I would look at finding a GC. Find a deal with enough of a spread that you can afford the GC. Most likely your time is better spent elsewhere.
@JD Martin seems a lot of ppl discount cost of their time
@Darren Budahn I agree!
Originally posted by @Ben C. :
Jd Martin seems a lot of ppl discount cost of their time
Well, I will say this: not only did I end up not getting paid for my time, I still lost a boatload of money. And the project took way longer than it should have .
@JD Martin and @Ben C. nailed it. If you have experience as a GC and it is the best use of your time to be your own GC, then go for it. If you have never been a GC and/or its not the best use of your time, then don't do it. Don't take a good investment (property or time) and ruin it.
You might save some money as your own GC, but if you are not the best candidate for it then it will end up costing you in the end. Also, you are investing your time and what other things could you be doing with that time that might be more valuable? Money is not the asset, time is the asset. The use of your time is what will bring you wealth, not saving a little bit of money here and there.
I think people also forget other things like...
You will have to schedule and be present for inspections. If your building, plumbing, electrical inspector has specific technical questions will you be able to answer with confidence on the spot? If not guess what... FAIL.
In addition to money I also run the happiness test on everything. Wouldn't you be happier allowing the professionals to run the contracting (but make sure you always stay on top of the job even if you have a GC!)
Just my two cents...
@Ben C. Who says you have to be present and answer technical questions with confidence during inspections? I have a lot of inspections that I was not present in, or have not answered his question or even told the wrong answer to the inspector, but guess what, my subs/crew did it correctly, it passed. As to present, YOU dont have to be, SOMEONE needs to be.