Avoiding construction costs and building rentals by myself

[Andrea Pagano]

Real estate development is super expensive, can't I cut the costs by just opening my own construction firm, paying architects, engineers and all other professional figures to do the job that the construction firm would do without paying additional money than just labour and primary materials? Or have a partner run all of the construction and give him a split of equity which would still be more profitable than paying a construction firm? 

[Greg Dickerson]

Originally posted by @Andrea Pagano:

Real estate development is super expensive, can't I cut the costs by just opening my own construction firm, paying architects, engineers and all other professional figures to do the job that the construction firm would do without paying additional money than just labour and primary materials? Or have a partner run all of the construction and give him a split of equity which would still be more profitable than paying a construction firm? 

 There is a huge learning curve and tons of risk trying to self perform especially if you do not have the experience. It is cheaper to hire a contractor turn key than it is to split profits. This is a very tough time to enter the industry as materials and labor are at all time highs and it's very competitive for the labor. Subs are very leery of working with people they do not know or who are very inexperienced. They will eat your lunch.