Those in the real estate industry sometimes make the best real estate investors. After all, that’s their profession and they’re good at it. It’s not uncommon for an individual to get a real estate license then look for real estate deals for other investors. Soon, the agent realizes that instead of passing off the being your own contractorvarious real estate investment opportunities to others, the agent decides to get in the game instead and buys those investments instead of relying on sales commissions.


Anyone who has been around the industry can find ways to save funds during a transaction. But what if you’re pretty good with a hammer and nail and can read blueprints front and back. Should you be your own general contractor when building a newly constructed home? That could save some money, right? Sure. It could if the bank will let you. But let’s take a step or two back and evaluate why a bank would let you be your own general contractor.

When a bank approves a construction loan from a real estate investor, the bank must also approve the builder. If the builder is not already on the bank’s approved list, the builder will have to go through the required motions needed to obtain approval and receive construction funds. The banks want to see other completed projects, references, a cash bond and other qualifications including a license. If you don’t have those, the bank won’t approve you as the builder on the project and the construction loan won’t be approved.

Oh, and one other thing. Even if you were a licensed contractor and have a resume of previous projects, if you’re not a full time contractor already, will you have to take time off from your current job in order to build the new investment home? If so, then how will you make any money to pay the regular bills if you have to take off work?

Yes, you can save money by being your own contractor but getting there will be difficult if not impossible. Just like any other industry, leave the professionals to do the job they know so well. And you stay at yours.