As a property investor, you know time is of the essence in house flipping. The longer the house sits on the market, the more it can cut into your profit.
One of the top tips to cut your fix and flip costs is: hire a contractor(s) to speed the rehab and repair work and get the house on the market fast.
The question many then pose is: should I hire a general contractor? Or various subcontractors? When it comes to property investing, your goal is to move fast and gain profit value.
General contractors can manage all aspects of the repair, rehab or fix and flip project. They can hire, schedule, supervise, get building permits, order supplies, schedule inspections and more. They oversee any subcontractors needed, from plumbers to painters to tree trimmers.
For property investors involved in various projects, there are several advantages to using a general contractor.
Advantages of a General Contractor:
- Expertise in various construction services. They can see the project to completion, whether that involves plumbing, roofing, foundation work or electrical repairs. If they subcontract out the work, they know exactly who to contact to get the job done right.It’s there job to oversee, manage and put all the pieces of the project together.
- Time management. As a property investor, you likely don’t have time to be collecting various quotes from subcontractors or being on site when these subcontractors arrive to work. Let a general contractor handle the quoting and work coordination.
- Less worry. You won’t need to worry about hiring a subcontractor who does subpar work. The general contractor has worked with these people and knows ultimately his reputation is on the line.
- Insurance coverage. General contractors typically are covered by a general liability insurance, lessening your chances of being liable if a construction accident were to happen on site.
- Money and time savings. A general contractor likely has specific building suppliers he uses that may be able to provide him materials quickly and at a reasonable rate for his bulk business. This can save you time and money in your investment.
Catalyst Funding is a hard money lender that wants to help you build your real estate investment opportunity. Because we are also investors, we have extensive experience on how to efficiently and effectively work with contractors. We strive to be more than a lender for you: we want to provide you with resources that will guide you through the entire process. For more information on a hard money lender that will work for you, call Catalyst Funding at (832) 648-3626.