All Forum Posts by: Kevin Breed

Welcome aboard @Will King

Welcome to the sit @Parker Lee

Welcome @Tre Soto and good luck!

Welcome to BP and to NC! The site is a great learning tool. 

Best of luck with your future deals.

Welcome Michael!  

I would like some more information about the loans you have. My company is located in Southeastern NC and looking to expand my business into the residential market. Lets connect and message some more details. Have a great week!

Kevin

With my general contracting business and with other GC's that I worked for as a project manager, there would be general requirements which is typically called Division 1 for the project. This would be an onsite superintendent with a weekly salary charged to the job. Then there will be a project manager for the job, his time is partially charged as he is managing other jobs at the same time. Then there are some items such as the wireless phone, the truck, gas for the truck, dumpsters, final cleaning and other items that can be charged to the job. The $90k for superintendent seems OK.

The GC will take all the costs of the job; materials, equipment, subcontractors, permits, etc. and add on overhead percentage (cost of doing business) which could be 3-5% to subtotal, then also add on the fee to come up with a grand total. In my area it is typical to see a home builder use a 15-25% fee to build a house. Commercial is usually much lower and the higher cost of the project, that rate could drop lower. I would expect with competitive bids in my area the fee would be 10-15% range. 

Say your project is $1,000,000 plus 3% overhead $30k / $1,030,000 plus 10% fee $103k / grand total of $1,133,000. Any changes, upgrades and such would be charged at 10% fee.

Thank you all

My name is Kevin Breed and I own a small general contracting firm in Carolina Beach, NC which is near Wilmington, NC. I came across the bigger pockets website while researching information about how deals are done between investors and builders. I found the site to be very helpful. Development has always been an interest of mine, and in the future I would like to create some small development projects of my own.