It depends on your relationship with the contractors.

HMH then sells the contract to one of several buyers with whom Richard has a relationship.

*This post does not create a CPA-Client relationship.

*This post does not create a CPA-client relationship.

🏠When it comes to contractors, I’ve found that building solid relationships with a few reliable ones is key.

In this case, because you have a relationship with the seller, I would suggest either telling them of your plans to wholesale it OR attempting to find a buyer FIRST before you put the lot under contract.

It’s about learning, building relationships, and proving to yourself that you can make it.

If that's not the case and the GC still requires 1/3 payment up front,  it means they have other projects that are suffering or lack quality subcontract relationships and can't place them on net 30's and when contractors are moving money around to cover for other projects,  that's a slippery slope. 

Scale over time by building relationships with lenders and investors, networking with agents, attending REIAs, and learning direct-to-seller marketing strategies.

I know others may focus on the deal first but for me, I want to find someone with experience and integrity with an interest in a long term business relationship.