House flipping tip of the week: Finding good contractors is a huge key to your success when flipping houses. There are 2 kinds of contractors, General Contractors, or GC’s, and Sub-Contractors. Most investors hire a GC who then brings in his own sub-contractors, oversees all their work and tacks on about 30% to your price.
This works great for people who have little construction knowledge or don’t want to spend the time ordering materials, checking in deliveries, writing checks on Fridays to subs and overseeing work.
My feelings are that most investors are doing this anyway and basically acting as their own GC, so shouldn’t be paying for one. Homeowners these days are even acting as GC to save the 30% and hiring subs themselves while building their new home.
There’s even a national company called U-BuildIt that sets you up with the list of subs for a fee. So, the key to the savings is finding the subs and managing them yourself. (more)
Another good tip for flipping is the get a mentor who can help you and you will fast track your career.
Good luck and Happy House Flipping!