Can I be a General Contractor?

Question

When flipping or BRRRing is it possible for me to be a GC and just hire sub contractors? I'm looking to learn and save money. I know it may take longer because of this but besides keeping subs accountable to budget/time what else am I missing? Do I have to be licensed? Can anyone pull a permit or not? what else? Excuse my ignorance but I am just new and don't know, thanks as always BP!

Greg Dickerson · Answer

Every state is different regarding licensing requirements so it’s best to check with the local building permit office. One word of caution is it can end up costing way more trying to manage the project yourself instead of hiring turn key GC. You can still learn from them by watching and asking questions. The money in this business is made by finding, funding and selling the deals, getting in and getting out fast not trying to do the work yourself. That’s a while other business model.

Chris B. · Answer

It may vary by location, but I did just that.   I needed to "rebuild" a 700 foot guest house.  I hired an electrician, AC guy, framer, drywall guy, and roofer to help get the job done where I needed help.  I did the rest myself.  I could go down to the city office for permits myself.

What I learned was a ton of knowledge on all sorts of construction work.  From plumbing and sewers to electrical to foundations to framing, roofing, insulation, and so much more.  What I also learned is that because I went into this project with no prior experience, things take waaaaay longer than expected and it can also be a dice roll finding a tradesman who does good work at reasonable rates.  It is also difficult to find reliable unskilled labor for digging and demolition work.  While I learned a lot, which has its value, there was a large cost in lost rent opportunity given the project took so long.

Evan Polaski · Answer

@Bryan Cavellier, I am the third to say "it depends" in Cincinnati, to be a licensed contractor to work on 1-4 unit buildings, you need liability insurance and pay the license fee.  I am one.  If you are the titled homeowner, you can submit your own drawings for permits without being licensed.  If you own in an LLC, you are not the homeowner anymore so you need a licensed contractor to pull permits.

Everywhere will be different, but from my experience, and hearing the others here, most building departments are very nice and helpful to let you know what is needed.

Kris L. · Answer

@Evan Polaski

In FL, if you own the home you can be your own GC without a license, but my understanding is that if you do that, then you can’t rent or sell it for a year after.  If you want to get licensed, it’s at least a 4 year process here.

Can I be a General Contractor?

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