Construction Loan: Owner serve as General Contractor?

[Anonymous]

All big bank construction loans I have found require the construction to be done by a licensed general contractor.  The only reason I am building a house is because *I* want to save money and do majority of the work myself over time.  I will sub out certain projects that are too daunting.  

Point proven, how does someone get a construction loan these days if they want to be the GC themselves rather than hiring one out?

Edit: I have found a couple online - but they are either credit unions or state specific companies.

[Anonymous]

Man thats a huge undertaking.  You're gonna front the money and line up all the subs.  Do you have contacts in the business?  (building that is).  I know how contractors work.  Not gonna work on Mondays and Fridays.  Fail to show up when they say they will.  When the money equals the job subject not to come back.  I can't tell you how many friends I've had went this route and say they'd never do it again.  Generally when the home gets about 80% complete hard to get anyone out there, because not much money in it, and they've moved on to other jobs, all the while the clock is ticking on your loan.

But if a guy knows what he's doing, has contacts, and able to do alot on his own, he can save some money.

[Anonymous]

In the beginning I looked in that myself and found it is a headache. Time limits are crucial with the loan. As already mentioned GCs are very unreliable if they have been given money up front. I worked for a GC for residential construction early on and I saw it first hand. If the client held the money till the end he would finish but if got the "70% now + materials" he would never want to finish.

I hope it all works out for you and you find what you are looking for.

[Anonymous]

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@Anonymous wrote:

In the beginning I looked in that myself and found it is a headache. Time limits are crucial with the loan. As already mentioned GCs are very unreliable if they have been given money up front. I worked for a GC for residential construction early on and I saw it first hand. If the client held the money till the end he would finish but if got the "70% now + materials" he would never want to finish.

I hope it all works out for you and you find what you are looking for.

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Exactly what happened to my nephew.  His house was 85-90% complete, and could no longer get anyone to work on it.  The job and the money were equaled out, so GC moved on to the next house where a bigger draw was on the table.  Landscaping was not close to being finished, and some detail on the inside needed doing.  He had to call around trying to find someone to do the driveway, he figured he'd have to landscape it himself.  He had to go back to the bank for more money and a extension.

He was outside working on his yard, when a truck with several workers drove up and made a offer to finish the house.  Lets just say they worked for cash only and finished the house in 10 days.  They make a living by coming in behind local contractors and finishing the jobs they left behind or refused to come to.

[Anonymous]

Well I can understand the skepticism.  I have experience with construction and have done a lot of research.  Personally I would love to be at the 80% done stage where 'there is not a lot of money to be made' because it is finish work that takes time but is cheap to finish compared to buying all the concrete and materials for foundation.

[kjel]

I'm a project manager by trade, the hardest phase of building new or finishing a house is that last 10-15% left to do...and I have a great GC and subs. Banks generally want to know that a licensed GC is running the job, the drawdown of the loan are typically based upon completion milestones and need to be fully documented with AIA forms, usually someone comes out to inspect the project as it progresses before they release funds. If I were you I'd try to find a reputable GC.

[DallasLoanGuy]

this has always been a problem.....  buyer = contractor has always been a deal killer.

i think the banks have long memories of deals gone bad in the past.