Sometimes there is a fine line between trying to save on construction costs and doing a cheap job. There are no cutting corners but unfortunately real estate investors in their clamor for lower costs end up with shoddy workmanship, poorly chosen materials and overall poor construction.

Working withbeing your own contractor a quality builder with a solid reputation is an excellent way to make sure you get excellent work along with tips on what you can save money on and when you really shouldn’t scrimp.

You can get referrals from those who have recently finished their own new construction and you can even ask your construction lender who keeps an updated list on approved contractors with whom there is an established working relationship. However, a general contractor isn’t free and is in business to make a profit just like anyone else. But can you save money by acting as your own general contractor? Maybe you’ve got some construction experience or you’ve been involved with other residential projects that can not only come in handy but save a few bucks as well. Unless you’re in the business full time however, don’t expect your bank to approve you as the general contractor. Why is that?

The first question will be explaining just where you obtained the needed experience to be your own contractor. You may in fact have been involved with other projects and you might even have a license but you will need to be approved by the bank and that takes experience, credit and a surety bond. Let’s say that you have all that, will the bank still approve you? Probably not. Unless this is your full time job and you are a general contractor how will you pay the construction loan back if you’re trying to save money by not hiring a general?

At first glance being your own contractor might seem like a good idea if you have the relevant experience. If so, be prepared to convince your bank. It might be an uphill battle.