Flipping Houses: DIY General Contractor or Hire a Pro?
Considering whether to become a general contractor yourself or hire a professional is a common dilemma in house flipping. Let’s weigh the pros and cons of each to help you decide what’s best for your project.
Going the DIY General Contractor Route:
Pros:
- Cost Savings: Acting as your own general contractor can potentially save on labor costs.
- Direct Control: You have complete control over the project timeline, material selection, and overall execution.
Cons:
- Time Commitment: Managing a construction project requires significant time and effort, potentially taking away from finding new deals.
- Skill and Experience Gap: Unless you have prior construction experience, you might lack the necessary expertise to handle complex renovations or unforeseen challenges.
- Licensing and Insurance: Depending on your location, you might need specific licenses or permits to act as a general contractor. Obtaining these can add complexity and cost.
Hiring a Professional General Contractor:
Pros:
- Expertise and Efficiency: A seasoned contractor brings a wealth of experience, proven techniques, and established relationships with subcontractors, streamlining the process.
- Risk Management: They can handle project risks, navigate building codes, and ensure everything is completed according to regulations.
- Time Efficiency: Allows you to focus on finding new deals and other investment opportunities.
Cons:
- Cost: Hiring a general contractor adds another layer of expense to your project budget.
- Less Control: You relinquish some control over decision-making and daily project operations.
The Right Choice for You:
The decision ultimately depends on your individual skills, experience, and comfort level. Here’s a quick breakdown to help you decide:
- DIY Might Be Right If: You have extensive construction experience, a strong network of subcontractors, and ample time to dedicate to project management.
- Hiring a Pro Might Be Better If: You lack hands-on construction experience, value your time, and prioritize a smooth, efficient renovation process.
Regardless of your choice, remember:
- Develop a Detailed Plan: Outline the project scope, budget, timeline, and material specifications. This keeps everyone on the same page.
- Clear Communication is Key: Maintain open and transparent communication with your team, whether it’s your own crew or a hired contractor.
If you do not have a contractor and permits are needed, CoreLend can give you a list preferred General Contractors that have been vetted, used on projects, and are trusted by CoreLend and its investors.
Financing Your Flip:
- House flipping requires capital. CoreLend Financial can help! We offer a variety of financing options, including hard money loans, tailored to your investment needs. Contact CoreLend Financial today to discuss your project and explore how we can empower you to achieve your house flipping goals.
