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Updated about 14 years ago,
Lowering rehab costs
I am on this site to get as much info as possible before I even look for my first investment. I would like to use flipping as a way to make enough money to eventually purchase a mid sized apartment complex. I have found a HML that will finance the purchase and rehab of a flip property. They will escrow the rehab money and release it upon completion of phases of rehab. I am a very skilled carpenter and can do a lot of the work in most cases, such as demolition, some drywall repairs, paint, hanging cabinets, tile, etc. My question is.. If I get a quote from a contractor for a rehab cost of say $15,000, and looking at the itemized quote I see at least $5,000 worth of work I can do myself. Would I be able to get the HML to pay me for the work instead of the contractor? Should I do the work and maybe impress the HML that I saved 1/3 of rehab costs, thus inprove his view of my abilities for future deals? Any info would be helpful.