Should I create my own contract company or hire other contractors for my flips

[Dan K.]

Hi BP Community:

I debating on whether to start my own contracting company for my flipping business.  I currently pay a seasoned contractor to be my project manager for my flips.  He has a regular job but works for me part time.  We currently do about 1-2 flips per month.  My contractor and I are discussing whether to start our own contracting company.

Pros:  We can control the timeline of our flips better and hold down costs by keeping the work in house.   Often we are at the mercy of my contractors if they pull their subs for other projects.

Cons:  I'm not sure what the cons are. I guess there is increased liability and some minor overhead costs.  I'm not a contractor so I'm relying on my potential partner to give me the risks/benefits. So far I don't see much downside, however, I wanted to check with the BP community, especially those who are contractors doing flips.

thanks a bunch,

Dan