General Contractors and Sub contractors???

[Marcus J Richardson]

Hello,

I have a question for the rehab investors out there.  When flipping multiple homes at once should i hire a project manager and find individual sub contractors to do the houses? or should i hire a general contractor that will use his men to do the houses?  what is better to do being a real estate investor?  Thanks  Marcus

[Hugh Ayles]

@Marcus J Richardson

What is your experience level?

Are you starting brand new at this?

If you are brand new, consider that if you hire employees they expect to get paid weekly.

Say it takes two months for the first flip plus one month to sell.  That means you need 3 months of payroll before you get your first inflow of cash.  Perhaps this can be covered with the loan you get for rehabbing or perhaps you already have a significant amount of cash accumulated already.

Not ot mention you will need to carry workers' comp insurance.  You will need to pay a premium up front and depending on the carrier make weekly or monthly payments.

Your first employee, especially a PM, better be a really good hire.

IMHO, I think you are better served hiring a GC to begin with.  Let them carry some of the risk while you get established and learning the processes.