re: Questions about building a house and costs

I don't understand. What is the difference between a builder and a contractor in your mind. This guy is contracting your house. I call myself a builder. Either way your paying someone to schedule, check, advise.
The biggest red flag I think of when people talk about this is the guy is probably not liscensed or insured and it is illegal. Where I build there are some frame carpenters that help people line guys up and schedule. I would not go this route. You pay slightly less but are open to risk. If something goes wrong and you pulled the permit and notarized the affidavid saying you are the contractor, if shite hits the fan it's on you.