All Forum Posts by: Todd S.

I use primary the same subs and they are all willing to come aboard and be paid hourly. I'd like to think they like working for me haha. It would be about 4 guys, who can all do carpentry (finish and frame), tiling, doors, cabinets, some some electrical and plumbing. Plus one project manager. Just trying to figure out if it would be more cost effective with payroll, insurance, etc.

I am getting to the point where I have 7-10 properties in various stages at any given time. I have a project manager, but was wondering if it makes sense to essentially start my own in house construction/remodeling crew and then only sub out specialty trades (HVAC, etc. )? Would this make sense or is paying them all as subs a better set up?

Moderators please remove this thread.

I am doing exactly that J Scott. He is well established and professional. I think the 10% of net profit for him will help keep him honest with hours as well.

No he's not full time. He will have is own jobs going on as well.

I should mention that years ago my hard money lender worked with this contractor for ten years with same arrangement.

I wanted to get some thoughts from the veteran flippers about the new structure my GC and I came up with. See the following: Previous Structure -GC bids job -I pay 30% at beginning, 30% halfway, 30% before final walk through, and the remaining 10% after punch out is to my satisfaction. New Structure -GC takes the time to get multiple bids from sub contractors. -GC is given revolving Home Depot credit card for material. -GC is paid $39 an hour for hours working on my jobs. -GC receives 10% of net profit to keep him vested in the outcome of the project. -All invoices from sub contractors come directly to me, in which I pay them directly (no mark up). -Material is paid directly by me (again no markup). So essentially he is working for me in the capacity of s project manger, but is not my payroll. Please provide your thoughts and opinions on this.

I had cash reserves from other deals plus private investor capital.

Yes, the house was bought cash from a private seller.

Thanks for the comments!!