QUICK QUESTION: NEWBIE

[Shayla Keyes]

Hi guys

    so i just purchase my first real estate deal from a sherrif sale that im going to rehab and than rent out. I would prefer to sub contract  each component of the rehab so i can get a better understanding  of cost estimates/ labor estimates/ and timing of the trades for future projects. I estimated my materials to cost around 10K - my ideal budget to complete the rehab is 30K with the hopes of getting all my money back with refi/heloc. Do you guys think this a good idea or should i hire a GC?

[Matt Crusinberry]

@Shayla Keyes, I understand your thought process, but I do believe having a GC is a better way to do it. Shopping around for specialist is going to be difficult, and time consuming (holding cost is going to be higher as well, fyi). The benefit of having a GC or project manager is they already have personnel that they use, and ideally are well priced and produce a good product. This gives you the opportunity to begin to build your team, and meet some of the people that are good at their trade (e.g. getting their contact info for future projects that require their specific skill). If the GC is able to do it from start to finish, well priced, and in a timely manner, this may be your guy. As you do more properties, and have other projects that are beyond your GC's capabilities (i.e. being in 2 places at once), this would be a time to start bringing in different tradesmen. I hope this helps, and good luck on your first deal!