Dealing with a Contractor Rehab Project

[Alfred Troy Smith, Jr.]

Hello Everyone,

I am new to BiggerPockets; However, I find this site very useful for informative facts moving forward into real estate investing. Here is a few questions that I have and I want to say thank you in advance.

1) How does the process of paying for materials for the general contractor to use work? Especially if I am using  hard money lender financing for my project.

2) I understand the General Contractor will be paid once the project is finished and I have made my earnings on the property. Is that something that has to be negotiated and legally documented before I begin the project? 

3) How accessible are the funds you need in order to delegate the work for renovations? For instance I have a property being financed and now I need to gather a scope of the rehab cost and communicate this information with my lender. So here is my question, from that point does the rehab expense become another loan created with separate guidelines, or is the same loan but just more money borrowed?

5) How do I use a lenders money to buy the materials for the GC to perform the work? I want to have a good grip on how much money  is being spent for materials. Would you consider this?  

4) From experience! Is buying foreclosures and giving them TLC renovations a good way to collect big numbers? 

Sincerely,

Alfred Smith.