GC cut of the profit on spec home

[Davey V.]

I have completed my first spec home sale, and it went extremely well. I had a GC build it turn key and it went under contract before it was completed. I made quite a bit on it and it was a complete success.

I did nothing except supply the lot and money. He picked all the finishes, built it, and worked with the buyers once we got it under contract. He is someone I know well and have done flips with. I am out of state so he managed it all from start to finish.

We have a contract to do a few more but I was wondering if any of you share your profits with GC’s, or if the price they quote to build is enough. I have found a honey hole and want to keep this relationship going well…..so what would you do? I could sense that he was unhappy with how much I made.