So you closed. The property is yours, the hard money clock is ticking, and now you’re standing in a house that needs a lot of work.
This is where most first-time flippers freeze up — not because the work is impossible, but because nobody explained who does what. Do you hire people yourself? Does someone manage all of this for you? What exactly is a General Contractor, and how much control do you actually hand over?
Let’s break it down.
Step 6: Finding a GC — And Why You Should Start Before Closing
Here’s something nobody tells you: start looking for a General Contractor before you close on the property.
Why? Because good GCs are busy. The ones worth hiring are booked out weeks in advance. If you wait until you own the property to start making calls, you’re losing money every day your hard money loan sits idle with no work happening.
Ideally you’re reaching out to GCs during your inspection period — before you’re even fully committed to the deal. You want to walk the property with a GC, get a rough estimate, and confirm your renovation budget is realistic before you’re locked in.
Where to find GCs:
- Referrals from other investors (best option by far)
- Local real estate investor meetups and Facebook groups
- Houzz, Angi, or Thumbtack (okay for leads, but verify everything)
- Your hard money lender — they’ve seen a lot of projects and often know good contractors
When you interview a GC, ask:
- How many projects are you currently running?
- Can I see photos of recent completed projects?
- Do you pull your own permits?
- How do you handle subcontractors — do you have your own crew or do you hire out?
- What does your payment schedule look like?
- Can you provide references from recent clients?
Get at least 2-3 estimates before you decide. Not just for price comparison — talking to multiple GCs teaches you a lot about what the scope of work actually involves.
Step 7: What a GC Actually Does (And What They Don’t)
This is the question I had for a long time and nobody gave me a straight answer on.
A General Contractor is essentially a project manager with a license and a network. They don’t necessarily do the physical work themselves — they coordinate everyone who does.
What a GC typically covers:
- Hiring and managing subcontractors (electricians, plumbers, HVAC, drywall, flooring)
- Pulling permits for the work that requires them
- Scheduling inspections at the right stages
- Managing the timeline and sequencing of work
- Ordering materials (sometimes — depends on your arrangement)
- Structural work, framing changes, roof, windows, doors
- Kitchen and bathroom renovations
- Flooring, painting, finishing work
What’s less clear — and you need to ask upfront:
Landscaping and curb appeal — some GCs include this, many don’t. Lawn, bushes, exterior cleanup often goes to a separate landscaping crew. Ask specifically.
Stucco and exterior work — usually covered, but confirm.
Interior design decisions — this is on you. A GC will build what you tell them to build. They’re not going to pick your tile, your cabinet color, your light fixtures. That’s your job, or you hire an interior designer separately.
Most flippers at the beginner level don’t hire a separate interior designer — they make the decisions themselves based on what sells in that market. Your realtor can actually be helpful here: ask them what finishes buyers in that price range expect.
Floor plan changes — if you want to move walls, open up a layout, add a bathroom — yes, you discuss this with your GC. They’ll tell you what’s structural (more expensive, needs permits) vs. what’s cosmetic. Get any scope changes in writing before work starts.
Step 8: Your Role During the Renovation
Here’s the honest answer: no, you don’t need to be on-site every day. That’s part of what you’re paying a GC for.
But “not every day” doesn’t mean “never.” Here’s what your actual involvement looks like:
Weekly check-ins — either in person or via photos/video. A good GC will send you regular updates. If they go silent for a week, that’s a red flag.
Decision points — there will be moments where you need to choose: this tile or that one, this cabinet hardware or that one, do we keep this wall or open it up. These decisions can’t wait — delays cost you money on a hard money loan. Be responsive.
Unexpected issues — and there will be unexpected issues. Open up a wall in a 1940s Philadelphia rowhouse and you might find knob-and-tube wiring, old pipes, or something nobody expected. Your GC will call you, explain the problem, and give you options. You decide how to proceed.
Don’t micromanage — if you hired a good GC, trust them. Showing up every day to second-guess decisions destroys the working relationship and slows everything down. Visit enough to stay informed, not so much that you become a problem.
A good rhythm for most projects: visit once or twice a week, have a standing check-in call, and be reachable by text for quick decisions.
Step 9: How to Pay a GC (Without Getting Burned)
This is important. Pay attention.
Never pay a GC in full upfront. Ever. A legitimate contractor will not ask you to.
The standard structure is called a draw schedule — you pay in installments tied to completed milestones, not to time passing.
A typical draw schedule might look like this:
- Draw 1 (10-15%): Project kickoff, materials ordered, demo complete
- Draw 2 (25%): Rough framing, electrical rough-in, plumbing rough-in complete
- Draw 3 (25%): Drywall, HVAC, inspections passed
- Draw 4 (25%): Flooring, cabinets, fixtures installed
- Draw 5 (10-15%): Final walkthrough complete, punch list done, everything finished
You verify each milestone before releasing the next payment. Walk the property, confirm the work is done, then pay.
If your hard money lender is managing draws — some lenders do this, especially for larger projects. They send their own inspector to verify work before releasing funds directly to the GC. This actually protects you and keeps everyone accountable.
Retain the final payment until everything on the punch list is complete. The punch list is your final walkthrough list — every small thing that still needs to be fixed or finished. Contractors are much more motivated to knock out that list when there’s still money on the table.
One more thing: get everything in writing. Scope of work, timeline, payment schedule, what happens if costs go over budget. A handshake deal with a contractor is a great way to lose money.
What’s Next
Part 3 covers the finish line: listing and selling the property, what to do if you want to rent it instead, how to find tenants or hand it off to a property management company, and if you’re going the BRRRR route — exactly when and how to refinance to pull your cash back out.
The renovation is the hard part. Getting paid is the fun part.
Use the checklist calculator below to track your renovation progress and make sure nothing falls through the cracks before you list.