Get Financing in Order with a Washington Hard Money Loan
The supply chain is at a standstill. There’s a shortage of labor. Contractors are scheduled out for months. And you’re committed to a house flip or home renovation project. What do you do?
Depending on the scope of work, you may want to consider stepping in as your own general contractor. It can be a daunting task. But with planning, smart budgeting, a lot of patience and flexibility, you can get the job done.
A new home build may not be a great fit unless you have the experience to manage a major construction project. However, many smaller-scale renovations or house flips are potentially doable. If you have the time, interest and commitment, read on.
Should I Be My Own General Contractor?
What is a general contractor
What, exactly, does a general contractor do? They are the manager of a project, responsible for coordinating all the details and moving parts including all subcontractors. A general contractor oversees hiring and scheduling, ordering of materials, permits and budgeting. They act as liaison between the client, designer and subcontractors.
Pros & cons of being your own general contractor
General contractors cost a good portion of any renovation project. As middle person, they add a percentage to labor and materials. So taking on the role of general contractor will save you money. Being GC also lets you take on any parts of the job you can do yourself, eliminating the need for as many subcontractors.
As GC, you directly manage bids, subcontractors and quality control. You can directly select and hire whoever is best for each phase of the job. And if work isn’t up to par, you’re able to deal with it first hand.
You are your own best advocate when it comes to your project. If a subcontractor doesn’t show or a much-needed part isn’t available, you don’t have to be left frustrated by an unresponsive GC. You can personally invest time and effort into keeping your project on track.
It can work both ways, however. Professional general contractors know the industry and how to work efficiently. They have a pool of subcontractors they know and trust. They’re experienced with requisite permitting. And they receive bulk discounts on materials. All of which can actually SAVE you dollars in the end.
When should you be your own general contractor?
So, when and why is it worth being your own general contractor? Time and expense are a big considerations in today’s market, with many contractors booked up months in advance and charging top dollar. If your project is on a small scale, you have experience in home renovation and working directly with subcontractors, have a good head for details, and have time to fully dedicate to the project to its completion, you might consider taking on the role of GC. Be ready to spend more hours (and dollars) than you anticipate and above all keep a sense humor – and you’ll have a successful experience!
Washington Hard Money Loans Make Financing Fast & Simple
We make the financing part of your real estate venture easy. Talk to our experienced team of hard money lenders at Gregory M. Russell, about an asset-based loan. We have been a trusted Washington private money lender for over three decades, helping self-starters in the real estate industry to reach their investment goals. Our application process is simple, our approval process is quick. Call 1-888-477-0444 to learn more or complete our online loan request form today if you’re ready to apply. We look forward to partnering with you.