When Should You Hire General Contractors?

Fix and flippers and builders need to think about various things, including outsourcing general contractors for projects. When you do not hire contractors you can save a lot of cash but there is a cost to that. General contractors are normally bringing in more experience and better knowledge. Gordon Tang says that there are situations when hiring general contractors is recommended and cases where you want to do some work alone.

When You Do Your Own General Contractor Work

In most world cities you can act as your very own general contractor if the job is small or you hire some licensed subcontractors. The general contractors are going to want to be paid for the brought value so when you do not hire one you can save a lot of cash. You pay less for rehabs so you can get increased profits.

You will also get experience as an extra benefit. Real estate investors that are successful have to have at least basic understanding of all that is needed to rehab houses. As you do some work alone you get help with the future projects and you will even realize it when contractors are bad.

Last but not least, you manage to control absolutely everything associated with the repair process. You can hire your own crew and oversee everything. Substantial savings can be gained.

Hiring General Contractors

The most experienced real estate investors do tend to work with general contractors. They hire the specialists because of various different reasons. One of them is that you gain a lot of time. The general contractors are those that take care of the rehab of the building while you can work hard on scaling the investing business. You are practically making more profit because of the fact that you have someone else handle a crucial part of the business. Besides shifting workload, you may also think about the following:

  • Proper understanding of building code

When the general contractor is good, money is saved as you are sure everything is done in a highly efficient way. Liability is shifted and you can be sure general contractors take care of everything associated with property building. Also, experienced builders have insurance and can manage warranty issues.

  • You save money

General contractors can help you out a lot with saving money since they do have really good working relationships with subcontractors. They are going to get highly preferred pricing. It is even the case with material suppliers in various cases.


The bottom line is that you should seriously consider hiring general contractors whenever you want to grow your business or you do not have the necessary experience to take care of the work alone. Some people will be much better at working as general contractors than others. Many that grow their business basically rely on partnerships with other businesses. Because of this, it is important that you seriously consider working with general contractors. You will eventually make more money in the process and it is not at all difficult to set up great working partnerships.