2B or Not 2B Your Own GC

Depending on your house flipping goals – a small side hustle or growing your business – it’s tempting to act as your own contractor to save money in a tight market. If you are have several properties, a general contractor might actually save you money by freeing you up to focus on your business. If you’re new to the game and have the time to devote to one or two properties a year, it might benefit you to get your license. So the answer to the question “Should I hire a General Contractor ” is “It depends.”

It depends on the condition of the flip. Did you have a good inspector help assess the property. Is the house more of a cosmetic rehab requiring paint, flooring, cabinetry, or a new roof? Much of that can be scheduled through a big box store such as Lowes or Home Depot. Or will the project need electrical or plumbing upgrades. Will you be adding square footage or making substantial changes such as moving or adding walls. This is where subcontracting out to a professional is critical and required by law.

It depends on your knowledge of code requirements, permitting, and licensing restrictions specific to your area. As a GC you will be responsible for pulling all permits, making sure all work is up to code, and arranging inspections. What type of license, if any, is required in your state? Check this guide by Procore “Contractor License Rules: The Ultimate Guide to Licensing in Every State.”

It depends on your connections and network in the community?   Do you have working relationships with available subcontractors you trust to do the jobs you are unable or unwilling to do? Ryan Pineda gives tips on finding subcontractors What is your knowledge of construction, construction skills, and construction management and supervision. You will be responsible for hiring, scheduling, and supervising the subcontractors. You will want to see recent work, and check references, insurance, and worker’s comp (check coverage limits).

Serving as your own general contractor can save you money but that’s not without a cost to you in terms of stress and time management. There is a steep learning curve and potential liability but if you are confident in your abilities, it can save you money.