Where do we start?

Question

We are closing soon on a multi use building, we plan to live in the apartment but it needs a complete rehab. Not even sure where to start? I understand we will need a GC since it’s almost a full gut rehab but do they help us get plans together or do I get those and then hire?

These seem like simple questions but google doesn’t seem to have a simple answer.

Jonathan Klemm · Answer

Hey there @Monica Staple - You got some very good information above from @John Warren!

So when you say it needs a complete renovation what does that include?  New plumbing, electrical, and mechanical behind the walls?  Also, are you only renovating the unit you are going to live in or other ones as well?  Lastly, is this a renovation loan?

Typically, a good GC can guide you through the entire process and has architects that tend to partner with on most projects.  Chicago is MIXED BAG of general contractors and architects PLEASE be sure not to rush or use the cheap guys...one of my favorite sayings (that I have learned the hard way):

"BEING CHEAP IS EXPENSIVE"

John Warren · Answer

@Monica Staple I have always found that the term GC gets thrown around a lot without a ton of context. Most of the time, the general contractor is the hub for bringing in sub contactors since you don't know all of them (licensed plumbers, electricians, roofers, framers, concrete, hvac, etc). Also, the GC typically (though not always) will have an in house "crew" that can do all the stuff the subs don't do much of. The GC is mostly a project manager, and if they are good, this adds so much value.

On the other hand, if the renovation is a true gut with plans and permits, you will need an architect. I have done projects where I would have been well served to have an architect (but I cut corners). An architect knows the stuff most GC's don't know, and often times on a full project will get the permits and get you moving through the project.

Now if you are just doing a kitchen or a bathroom, most folks on here are looking for a small crew.... not really a GC but sort of. This is typically one to three folks who work together and can do most stuff (sort of). Framing, drywall, tile, installation of cabinets, etc.

What size project are you really doing and where is it located?

Shannon Mogilinski · Answer

Hi Monica--I'm in Chicago suburbs.  You need an architect absolutley and that is where you start.  I have a couple of referrals for you if you need one.  (Interview them like anyone else and price shop).  I have been a GC for 15 years and licensed in Chicago.  (Now I only work my GC role through my own investments).  I say this to all who are working in the fix/flip arena--architects are pivotal in protecting you from liability.  Permits are pivotal for the same. A tried and true veteran of the construction shark tank both commercial and residential, you really want to take the extra few dollars and protect yourself.  Priortize it in your budget as the most crucial elements of a project.  A GC will add another layer of accontability as well.  We all tend to take more risks until suddenly you need to answer for an issue.  ANYONE can decide at anytime to sue you because they don't like the color of your shirt.  You will always be left to defend it or negotitate it no matter how ridiculouos, so don't cut yourself short by not having the correct professional sign off on your projects.  And that pricey insurance really only comes in handy for catastrophic events.

John Warren · Answer

@Monica Staple this is definitely something you need an architect involved with, and a really great GC a well. Plan to update the electrical service to the building and potentially the plumbing service coming in. Those are the two things that catch most folks in Chicago by surprise when they do a big renovation to a unit. The renovation will trigger upgrades to the systems.

Paul De Luca · Answer

This is where a little planning ahead of time can go a long way. Having your contractor in place and ready to begin work upon closing is key for a smooth rehab process.

Jacob Sherman · Answer

I would definitely get a gc to run the project and make sure its done correctly especially on a commercial mixed use building

Monica Staple · Answer

For plumbing it would be necessary to move the kitchen sink but otherwise bathrooms will remain where they are. Electrical will be necessary since we will be creating new bedrooms.

The store front has a 2 year lease that we intend to honor while we decide if we are going to use the space ourselves or continue leasing it out so at this time we are only updating the apartment. It’s not a renovation loan, we got the place cheap and have a decent budget (thanks to family & savings) to update.

Monica Staple · Answer

Great points! I have seen what happens when someone doesn't check the work along the way so we absolutely plan to do that! From my understanding of the permit process I believe we will need a GC.

Monica Staple · Answer

Thanks for the information! Absolutely, we plan to live there and eventually sell so we want to make sure we do things correctly so we can have a nice living space that also increases the value of the property! I would love recommendations for an architect, I have no idea how to find one!

Where do we start?

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