Contractor estimate for Investor...Newbie

[Stephen I.]

Hi All, 

I am a newbie from Westminster, MD. I have done quite some research and read a lot about REI and i am ready to get my first investment property.

As part of my research on learning how Contractors charge investors as opposed to retail, i met a contractor whom i seem to like and if i'm told on here that he's fair, i'll keep him. 

He told me he works with other investors and he charges them 15% of renovation cost. i.e; He bills for Materials and Labor and he charges 15% on total of both. My question is; isn't Labor part of his profit? Also, i am sure he would've marked up Material cost.