Well, I must confess that I don’t have a degree in either Finance or Economics - my degree is in Engineering. In addition, I graduated from college quite a few years ago and I don’t understand some of this new math. However, to me it seems absolutely ridiculous to lose $30,000 of the profit on a $200,000 house because you want to get it done in 5 days. Even if it took 3 months to do it on budget, you wouldn’t even begin to spend $30,000 on holding costs, bank fees, etc. In fact, here in Ohio, we’d just get a line of credit at the bank and only pay the interest on the loan for the length of time the project was being completed. Whether a realtor is involved or not has absolutely nothing to do with the timeline. So, whether you call it vertical integration, horizontal integration, or diagonal integration - I call it foolish!
I’m not suggesting that it’s the best method of how to do business, in fact I think in most instances it’s a less desireable method. I was just explaining why Trademark does it the way they do it.
If you have contractor to do the work and promise in that time frame and in writing to finish the job, then he should not have a problem paying 500 a day for any deadline or delay. If he balk at this then you know he can not get the job done.Check his refences.Find out if he is bonded and license. You can check it over the internet .You just need his contractor license number.