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House flipping projects typically take between 45 and 90 days to complete. But when subcontractors have to put your renovations on the back burner, they might incline entrepreneurs serving as general contractors with the right skills to roll up their sleeves. Such scenarios beg whether fix-and-flip business owners are better off going it alone or relying on other construction professionals. It may come as something of a surprise, but the best course of action may lay somewhere in the middle.
Taking on the role of a general contractor involves coordinating every moving aspect of the construction renovation. Most general contractors provide either blueprints or explicit directions to subcontractors who usually have specialized skills. Examples of subcontractors include:
The contractor maintains a master set of plans and answers wide-reaching questions about how to overcome unanticipated obstacles. Experienced subcontractors run solutions by the general contractor because they understand critical next steps and how changes impact other facets of the project.
People in the house flipping industry routinely serve as general contractors. It allows them to track expenses such as material costs and keep the project moving along on time. On the other hand, it’s not unusual for one subcontractor to miss a deadline and disrupt the entire project’s timeline. In such cases, the entrepreneur/general contractor may have no choice but to strap on a tool belt.
The previous scenario highlights the fact that sometimes a need arises to get things done. But general contractors must also tread lightly. Stepping on a subcontractor's toes by completing a portion of their work can lead to financial disagreements. Sometimes workers feel like you’ve encroached on their territory. But because house-flipping general contractors don’t necessarily spend all day answering questions and resolving problems, there will be opportunities to take on work and lower labor costs.
For instance, most people with construction experience can take down a non-structural wall with a sledgehammer and Sawzall. Putting tasks on your plate that won’t delay subcontractors makes a certain degree of sense. You can also speed along the process by carrying materials or running out for coffee instead of sending one of the crew members.
These types of efforts also go a long way with subcontractors and crew members who recognize you’re a hard-working individual. That construction "credibility" alone is worth its weight in gold. However, the last thing a fix-and-flip professional wants to do is insert themselves out of necessity.
Nobility, necessity and saving money remain driving factors that prompt general contractors to wade into the fray. But that trails back to general contractors not having their ducks in a row. Subcontractors gravitate to two essential things: Highest paying jobs and consistent work.
House flippers who also serve as the general contractor would be wise to maintain a small orbit of quality subcontractors. Build relationships by providing consistently good-paying work and develop a family-like atmosphere. When subcontractors feel confident that you can keep them busy, they’ll prioritize your business. Then you won’t have to make renovations out of necessity.
Rebuilding the Economy One Home Sale at a Time
Gary has been in the Real Estate Business since 2005 and can be considered a seasoned Realtor. He has seen the down periods in the economy and the upward trends that we are experiencing recently. Through it all there has always been one unchanging need in our society: families want to purchase homes. And when they are ready to buy they need assistance to search through today's over-saturation of information released by our industry. In order to find that perfect home it can become a journey that requires perseverance and patience. And a seasoned Realtor can be the guide to assure a successful transaction from start to finish.
