General Contractors or Subcontractors

Hello, good day to all viewing this post, my inquiry is in regards to the rehab process and contractor selection.

  1. Do you hire specialized contractors for each section of the property that requires rehabbing?
    Example: You hire the electrician for week 1, roofers for week 2 and plumbers week 3


Do you hire a general contractor and he/she will be responsible for either performing the entire rehab work or he/she will disseminate the work to the subcontractors(electrician, plumbers, etc.)

Thank you for reviewing this post

I am still learning this, as I am starting out my first rehab project. I am using one general rehab guy because he has a turn key system that works. I think this way one person (my rehab guy) is held accountable to stay on schedule (time is money) and on budget! Otherwise, unless you are experienced with this kind of thing and have all the contacts in place, you will be running yourself ragged trying to micro-manage the project when you could be out finding more deals!
Hope this helps, I’ll let you know how it goes! ::slight_smile:

Hello Wealthinvestigator,

This depends entirely upon who you can find. Are you prepared to be your own General? Gathering bids from subs can be extremely time consuming. If you have a contractor (or can find one) you trust and plan on having them coordinate all your work – that is a great way to go. Fully understanding part of your profit is going to the General.

I do a lot of my work myself. Painting, fixture installations (including toilets), and landscaping, I do myself, so for me it’s better to higher subs to do the rest.

With all that said, I recently found a General I like to work with who lets me do my part and he takes care of the rest for me – especially where it concerns termite and/or moisture damage issues. What I like about him is we discuss at the beginning of the job what he will take care of and what I plan on doing. We work well together.

Good luck to you.

I am new to real estate investing and trying to get all my ducks in a row.

When hiring a general contractor, I have heard some investors say that they only pay after the work is completed. Many of the general contractors I have spoken with do not work this way. They expect a certain percentage before even starting a project, which makes sense to me, however, I will need to work with a hard money lender and they only supply funds after a part of the job has been completed.

Can anyone provide suggestions on how to overcome this obstacle?

Thanks in advance.

Thank you for the responses TamiSpartan and REFLA, with the responses that you have provided, I will probably elect to hire a general contractor so that I can have time to focus on other aspects that I will encounter after the rehab.

In addition would any of you elect to hire a general contractor that was not listed with the better business bureau? I have experienced problems with contractors in the past.

Additionally, if I am not asking to much, to you have any contract clauses or addendums that you would prefer to insert in a contract with a general contractor?

Thanks again for any feedback and reading this post.