When flipping properties, finding ways to save money works in concert with selling for the highest price in as efficient a time frame as possible. That doesn’t mean it’s time cut corners and slip on quality. It means making decisions after a thorough analysis. Or two. Your real estate agent will guide acting as your own contractoryou as you prepare your offer as well as arriving at the proper price point, getting as much out of the transaction as you can.

Your personal real estate agent is invaluable at this juncture as both the acquisition as well as final selling price is two of the three key ingredients for a successful flip. The other is the cost in terms of time and materials for the remodel. But maybe you can save some money and act as your own contractor?

That might be a way to save some valuable cash, right? After all, you may not need to know all the trades personally. It’s not a requirement that you’re a licensed electrician as long as you act as your own contractor and hire out, right? Maybe. If you’re financing the acquisition like most investors, your lender may have something to say about you being your own contractor to save money.

When a lender reviews an application for a major remodel, the initial cost is compared to the final value. The final value is the “after repaired” value that will be reached once all the work has been done. General contractors don’t have to do all they work but they do oversee the project from start to finish, making sure building codes are being followed and the rehabilitation work is performed by those who are licensed to do so.

But if the contractor is inexperienced, never having managed rehabilitation work, the lender may require you to go find one. Usually your new contractor is located on the lender’s Approved Contractor list which itemizes the names of contractors who have passed the lender’s litmus test in terms of work experience, bonding and creditworthiness. If you’re considering doing your own work and foregoing a contractor altogether with no prior experience, your lender may have other ideas.