How much to pay a GC for spec build

[Rylie Cooke]

The goal is to get my own GC license but in AZ you need 4 years of experience (hands on or managerial) to even apply. The long term goal is to do custom homes, starting with spec builds. To start, and to earn my required experience I need to work with another GC, even if I do most of the work. What is a fair offer to make to that GC, and what kind of deal should I not accept? I would be providing the capital. I’m also willing to leverage future deals as part of my offer. Any info is appreciated.

[Jay Hinrichs]

not sure what your trying to learn or do.. but just pay them by the door.

IE  10k 20k 30 k 50k.. each GC will have their own fee.

Myself I pay on the low end because i do all the accounting for the GC he only has to cordinate the subs ..  I pay all the subs directly so there is no up charge to me.. and I make sure everyone is paid so their are no liens.

on the 90 lot development i am 3.4 through.. I gave the GC to work under the above program a contract for 1 mil.  Plus I pay his insurance .. its taken 3 years so 300k a year and I do all the admin etc.. And he lives right across the street from the project so spends NO money on commute .. And he still has his own projects going where he makes 100 to 150k per house usually doing 2 to 3 a year.. so depending on what one thinks good income is can determine if one thinks that is worth it.  To me its worth it.