Atlanta - Severe Shortage of Affordable and Licensed GCs

[Rashad Nelson]

All - I have a continual dilemma.  There's seems to be a rampant shortage of affordable, licensed general contractors in the Atlanta Metro market.  Key word being licensed.  I know the state of GA implemented a law that went into effect on July 1, 2008, that required general contractors / builders to be licensed when offering their services to the general public.  Because of this, I suspect the guys who are licensed are being bombarded with work and get pick and choose their projects - as they should.  

However, my main beef is that this law went into effect mid 2008, but it's now 2017 and there still doesn't seem to be an abundance of licensed GCs in this market, at least in investor circles.  Atlanta is a big market, so I really don't understand.  Every GC in this ATL market that's recommended to me by a fellow investor, agent, or mortgage broker are either unlicensed or a custom home builder charging $120 per square foot (how the hell can you make money off a deal if you're GC is charging $120 per square foot?) 

Another gripe is that contractor prices charged down here are on par with what's being charged in north eastern cities like Baltimore and Philadelphia.  However, in those cities, property and rent values can support those prices charged.  I have an expensive GC in Baltimore, but I can easily find deals to fit his renovation costs into my budget.  I can't do that in the ATL.  

Does anyone else have this dilemma here in Atlanta?  Obviously this a major pain point and if I were so inclined, I would put in my dues, get the necessary credentials including a license, and start my own contractor firm.  However, that's not where my passion or talent lies.  I enjoy being an investor - finding and putting together deals, getting the necessary talent together to make it happen, and spending my time and energy on finding the next one.  

Thoughts?

[Chance Bridges]

How many deals are you flipping a month in the Atlanta area? If you build a relationship with a contractor and start giving him a lot of jobs then a lot of times you can get his prices down. I refer out my contractor to investors when I wholesale deals. It keeps my contractor busy and I know the people I sold the deal too will get a good quality contractor. That will not do a million change orders on them during the process.

The down size is then he gets really busy and may turn down your jobs  so you have to go find another contractor.