GC vs Subcontracting When Flipping

[Ethan Neumann]

Hey everyone. 

I'm currently flipping about 2 properties a month. For those of you that are flipping 5+ per month or know someone who is, do you recommend starting to build out your own subs and manage the projects yourself to save money and eventually hire an in-house project manager or continue to use a GC so you can focus more time on finding deals and raising money. 

For context:

-I have pretty limited construction experience, although I'm learning more on each project. 

-I plan on scaling to 5 flip per month by the end of next year. 

-Currently get all my deals through MLS and wholesalers

-Some of my projects are heavy rehabs (adding bathrooms, removing load-bearing walls, etc), others are more cosmetic.

[Harrison Jones]

Quote from @Ethan Neumann:

Hey everyone. 

I'm currently flipping about 2 properties a month. For those of you that are flipping 5+ per month or know someone who is, do you recommend starting to build out your own subs and manage the projects yourself to save money and eventually hire an in-house project manager or continue to use a GC so you can focus more time on finding deals and raising money. 

For context:

-I have pretty limited construction experience, although I'm learning more on each project. 

-I plan on scaling to 5 flip per month by the end of next year. 

-Currently get all my deals through MLS and wholesalers

-Some of my projects are heavy rehabs (adding bathrooms, removing load-bearing walls, etc), others are more cosmetic.

Both options are great. I work with a number of investors that carry out 5+ flips a month. Each of them have their own strategy. I know this might be a vague answer but play your strength. Some of my bigger investors are also contractors. So they heavily play into that aspect of it. As some very skilled contractors trying to keep there crews busy, I think it would be a good idea to partner with them. Based off what you said you know how to find the deals. I personally think that is one of the more difficult things in the process. If you are very capable of finding solid deals I would scale up with a GC that is looking to grow. I work with a number of GCs that are looking to scale. I know i didn't give you a solid answer but i hope that helps.