Dumb idea being my own contractor on commercial construction project.

[Arthur Kineard]

I think I want to be my own contractor for a pretty large commercial project. Am I crazy for doing this? I could just hire a contractor to do it but my experience here with contractors has been they are SLOW. In Panama City contractors are charging 10-20% of the construction cost and obviously marking up prices on materials when possible. I am guessing the project will cost and yes this is a guess at this point, $4 million. That means the contractor will make $400,000 to $800,000 on this project. This gets my brain going into lateral integration mode hardcore. I am thinking this is not going to be the last project I am going to do in this area. I plan to build an apartment complex on other property I own in the area. 

The GC contractor that is redoing my house has offered to allow me to use his license. So either use his license for a fee and hire a superintendent to oversee the project OR open my own GC company hire a RMO or RME with a Florida GC license internerally. I am leaning towards a hybrid of the two for insurance if someone flakes out.  This is construction afterall. 

Project will be 96000 Sq/Ft of warehouse space.  Six building 80'X200'. Each building is divisible into 4000 sq/ft, possibly 2000 sq/ft. 

I own the property free and clear and have entitled it for this project. It is about 8 acres undeveloped, so trees and fields. 

It is located on main hwy with all utilities accessible including sewage, slightly outside of Panama City FL. 15 min to east side of town, same for what we call downtown and same for what we call the west end of the beach. 10 minutes from the airport.  This is one of the areas Panama City is growing into. 

We have a serious shortage of small warehouse space like this. I believe at a minimum we can rent it out at $6 per sq/ft per year but we will shoot for $12. 

I think I can use the land as the down payment but regardless I can come up the difference if necessary. 

I own a business that affords me a lot of free time and my schedule is very flexible. 

My experience in construction is limited but I have some and fundamentals are there.

Please poke holes in my plan.