db71 hit it exactly - this is 100% how you get into it.
For example: you can subcontract all carpentry work, but you will have charge your client the price of the carpentry plus your fees to manage the work. Or if you have your own carpenters as employees you will have more room to bring the carpentry price of the project down. However you will have much bigger operating costs as you will need to make payroll every week. you can't have a week between projects with no work.Thanks Justin, you're basically spelling out my plan. May I ask, what do you mean by "You can start lowering those costs by brining portions of the work "in-house", but then your overhead increases..."?
Unfortunately there's really no other way to learn. You can't learn the actual construction part in a class room. However as I mentioned earlier you can learn a lot of good business practices in the class room.Thanks for the advice DB71 but I don't really like working for people, I like being independent, but I guess learning the business first hand is what I'll have to do.
I think I just might do this, seems like a sure fire way of learning the business and leading to success.In my personal opinion you should go work for a company building houses. Work in the field get out and do it. It might not pay that great or it might be good pay but it will be great experience. I worked construction and then later got a 2 yr degree in construction the degree was quite possibly the biggest waste of time in my life. Seeing something done and then doing it is a million times easier than reading a book and figuring it out.
Find a big custom home builder and go offer your services for free or call it a internship and when you are there pay attention to every detail and overhear every conversation this is the only way you are going to learn.
Make sure if you do this you work for a reputable company no point in learning the wrong way. Once you work a year or so then you can start rehabbing and doing all the work yourself at night and on weekends. While maintaining a day job. Then just grow from there. Sky's the limit.
I have absolutely no problem with this; I'd rather work hard now and play later anyways. Considering this is something I seem to like doing, it won't be that hard to stay focused and determined. Thanks again!Oh yeah and this is not a get rich quick business. It takes years of hard work to get to a comfortable level and while all your friends are out driving new cars you need to be driving a older pickup truck and putting it all back into your projects.
By the time you cover your expenses the above scenario is unlikely to make you $10kIf I'm going to make 10,000, I'd rather follow the path of least resistance and just sell it to another investor. Why go through the trouble and additional risk for roughly the same return?
Given that I don't know how to rehab, this method makes the most sense for me, if I were to start flipping houses.