Hired Workers Vs Contractors/Handymen

I have a question for rehabbers. Is it better to have your own workers to rehab the house or use contractors or handymen? Business is picking up for me and I was thinking of having my own little crew of guys to work on the houses I purchase. I want to know whether it is worth it or not. If I do have my own workers then I have more questions:



Do you pay by the hour or job?



Do you pay cash or payroll or 1099?



I was wondering if there was savings or other benefits to having you own workers for the houses. I am at the point where I will always have something for a crew of about 3 guys. Just trying to find out if it is worth it. They are handy with several different trades but I would still get plumbers and electricians for major jobs.



Any help would be greatly appreciated.

Comments(3)

  • Stockpro998th August, 2006

    That is great advice!

    My lead guy is in Mexico right now visiting his dying mother. He will be gone for about 3 weeks and I am going crazy trying to keep everyone on task and busy.

    I pay him very well and he takes 90% of the headache out of the work for me. When he gets back I am going to give him a raise and healthcare!

    In order to run your own crew you need to have experience and knowledge on your side. When you have those you have to ask "do I want to be overseeing the projects or finding deals?"

    I find deals....
    [addsig]

  • bargain7611th August, 2006

    Great link, Mike....and good advice, too.
    [addsig]

  • estateXchange21st August, 2006

    If you 1099, who is responsible for insurance and workers comp? Do they have to have a license of any sort?

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