Self Manage or Contractor?

Question

Looking for tips from people who have hired subcontractors/contractors for flip and fix projects. When approaching a flip/fix project, do you recommend hiring a general contractor to oversee the renovations? Or do you recommend managing the individual subcontractors yourself. If you have any experiences or knowledge let me know!

Thanks,

Ken Nyczaj · Answer

@Mason R Westover it's definitely a challenge. If you know any Generals that you can equity partner on a deal with that could be the best way, giving them skin in the game to motivate them to be on time and on budget. You bring the hustle and deals and cash, they bring the experience and cash. Not sure if that's even possible for you but it's how I got started...

AJ Leman · Answer

If that is the case then I would say go for it! First one will be a bit rocky, just expect that and keeping going!

Greg Dickerson · Answer

The best way to scale is turn key GC to handle everything. If you are only doing one or a few deals a year and you feel confident in your ability to manage the contractors and the project then go for it. Make sure you put together a complete thorough scope of work so you can get detailed estimates form everyone. You are the leader so its up to you to give everyone everything they need to be successful including clear direction in no uncertain terms of exactly what you expect and when then hold everyone accountable to the goals. Make sure you use good contracts, get lien waivers signed before you pay anyone and never pay up front for any work.

Mason R Westover · Answer

AJ,

Thanks for the reply. I have worked in construction for years, and have subcontractor coordination experience. Just seems like a lot of moving parts on my own. Something that would be challenging, yet exciting.

AJ Leman · Answer

Hey Mason,

Welcome to BP! I think it depends on your situation.  If you have the time, and general construction knowledge, then being the GC on *most* flips works well.  I say most because some can get pretty hairy.  I'm a high school teacher and I GC all my own flips.  I have built relationships with subs who are reliable and good at what they do. It works well, but it took me a few flips to get everything in place.  Like most things, it comes down to where you want to put your energy, time, and money.

Best of luck,

AJ

Rich Ramjatan · Answer

@Katharine Schmuff

Well said . I am GC and I’ve been called numerous times to clean out other peoples work , even from so Called contractors. Not all contractors are the same .

Katharine Schmuff · Answer

It depends on your comfort and skill level. You can get in way over your head contracting if you don't know what you are doing. Mistakes that can cost you a lot of time and money. Disclaimer, I do own a construction company with my husband. If you are savvy and have a good head on you then it can be done. Just remember you get what you pay for. If you want a bottom dollar contractor, you will get bottom dollar craftsmanship. Not all contractors are created equal. Get them to have their insurance company send you proof of insurance. Check their contractors license. Not business license, a contractors license.

Kerry Noble Jr · Answer

I actually want to GC my own.....ive been networking with all the subs in my area...

Mason R Westover · Answer

@Greg Dickerson, thank you for the response. Good info.

Self Manage or Contractor?

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