General Contractor or Manage your own Sub-contractors

[Steve Rhine]

Hello, I'm an investor from Tulsa Ok and I have a question for the rehabbers out there.  Does it work better for you to hire a GC to oversee the project or do you have better luck hiring subs and managing it all yourself?  Which way is faster?  Which is less expensive?

[Michael Noto]

@Steve Rhine In our experiences it is more expensive to have a GC manage, but a good GC will likely get the project done faster than you will trying to manage the different moving parts of a project on your own.  Why?  They just have more experience and connections, that's all.

Now the key is to make sure you hire a GOOD GC.  Things can go terribly and be more expensive if the GC isn't good and/or experienced with rehabs.  So if you have to pay a little more for a guy with experience and a track record in your local market I would do that.

The problem I see with investors sometimes is they try and micromanage every single expense associated with a project and while they are busy crunching numbers they don't take a practical view of the time and stress they save by spending a few extra dollars and hiring better people.