Be Your Own General Contractor

Something recently I learned is from the world of construction. I had never really looked into the home builders or into the construction industry prior to this. I have a friend that has built their own homes in the past and as I started to talk to them more I realized how they did it and the process they took. I thought they had always hired out general contractors to build their homes, they in fact had not. They acted as the general contractor themselves and saved a ton of money while doing it.

They performed all the tasks of the general contractor like…

1) Project Planning and Coordination: They went out hired the architect and had the designs made up. They got all the things approved with the local municpality in which they lived.

2) They went out and hired the subcontractors themselves: Electricians, Plumbers, Roofers, etc.

3) They secured the building site and managed the operations of the build site.

4) They handled all the communication and project tasks.

Doing it this way requires more time and effort but you can pick up a skill doing it and apply that skill to future projects. They are going to be able to build their project for under $100 a square foot and if they ever wanted to sell they would be able to get market rate which the going rate for new construction builds in the market where they live is $200+ a square foot….effectively doubling their money (theoretically). Even if they only got $150 a square foot that is a 50% return on their capital invested and that is for new construction. Old homes in their area are selling for $250+ a square foot…a great way to give yourself a deal is do the build yourself according to them.

If you got money give yourself a new challenge and give a construction project a go. It could turn out to be really lucrative for you.