attention builders and subs. need advice >>

[MadJack]

with all the construction going on around here i have accumulated a nice list of good sub contractors for all phases from the ground up.

i have been toying with the idea of building a spec home and have my eye on several lots but before i buy the lot i need some questions answered and advice.

before i go to the county offices i decided to throw it out to you guys in the hopes your could save me time by pointing me in the right direction or maybe even talk me out of it.

1) do i really need a license and what kinds? i know i can build w/o but then i'm going to have to pay capital gains and i have to avoid that.

2) i have built 2 new homes but went thru a builder so i want to cut that link out. how much on a % can i expect to make on a, say, 2000 square foot home on a $30k 1.5 acre lot? iow, what is a conservative profit percentage for building a home w/o the middle man? 20%? 15%?

3) should i go with a smaller home or larger?

4) when should i put the 'for sale' sign up? as soon as i break ground? after it's framed? i plan to sell w/o a realty company.

please give tips, negatives about my idea, positives about my idea and anything else you can think of to point me in the right direction.

thanks in advance

jack@madjacksports.com

 

[Agent 0659]

I know 1 thing for sure, you will need Builders Risk Insurance

I know a ccouple good agents for your State Jack. :com:

 

[MadJack]

there's a start because i wasn't thinking about that!

thanks, sir.

 

[Agent 0659]

Covers for one thing theft of building materials which is ALWAYS a threat on this type thing. Yeah it has liability and also covers the structure if something happens during building but that theft of building materials is most important. That shit is just laying there all night for the taking.

 

[MadJack]

i know what you mean. some azzhole stole our refrigerator, right out of the garage, 7 days before we moved in and my builder didn't have that insurance and he wanted ME to turn it into MY insurance. i told him to bag that chit and get me a new one. plus, many tools were taken during the building of my house. i go to court tomorrow vs that azzhole, by the way. the fuker never finished my house. we settled and he disappeared. i doubt he shows up. that's another story though.

 

[Agent 0659]

WTF Jack I had nooooo idea! What a piece of shit. Email me the builder name please. I cant believe he tried to get you to pay for it, :fingerc:

 

[toastonastick]

This should be a good thread. I have thought of doing this myself.

 

[dawgball]

Very interested in this as well. I would like to see a checklist (of sorts) of things to consider before starting on a project like this.

 

[kneifl]

Get 12 mexicans, lay out the supplies for them, tell them no bread and no water until they get to work. Layout the groundwork and rules ahead of time this way they don't get out of line. Agree to pay them minimum wage for their work and say they can all stay there under one roof for low rent for an unspecified amount of time once they finish. Once they're finished pull out the rug from underneath them - it's eviction time.

:lol: :142smilie :mj07:

:joke:

kneifl

 

[Franky Wright]

Hire Johnny Knockdown as your expeditor, and you will have no problems :scared :SIB

Seriously, I have alot to add Jack, was in between phone calls, scanning this General Forum. Will get back here in a little bit.
Please dont construe this post as an attention whore, the advice will come shortly :mj07:

Franky :142smilie

 

[MadJack]

thanks, franky. maybe i can give you a call one day soon or vice versa.

 

[MadJack]

kneifl, this is a serious topic thanks

 

[MadJack]

i am 99% i'm going to do this and here's how i'm going to do it.

i'm going to take the advice from the builders, contractors, real estate people, etc, and post step by step through the whole process. from buying the lot, to getting the permits, to digging the foundation all the way on up to selling the house.

let's see a forum build a house step by step.

i'm countiong on the experts here.

this will wind up being a huge thread as i'll be asking for advice and posting progress daily.

when it's all over and the house is sold 6 months down the road (hopefully), i'm having a huge party for all the people that helped me with this project.

this should be interesting for the people that are thinking about doing the same, whether you're building for yourself or building to make a few bucks.

think we can pull this off? i do.

i saw a lot that i liked last night near otter creek golf course. it's a mini sub-division that's going to have 7 homes. they have simple covenants that i'll post if needed. they are asking 39,900 and i made an offer by email earlier today for 32K. he just wrote back and said the owner would take 35k.

it's a 1.65 acre lot, level, perked and approved for septic and public water.

i need to build a minimum 2000 square foot main floor if ranch home or any 2 story at 2000+ square feet above grade. home has to be all brick, stone or stucco.

need anymore info at this point?

yea or nay on this lot?

 

[freelancc]

i am just finishing the new construction of 3 homes, with the first 2 just coming on the market this month.

do the math first: estimate the real estate values of the homes you are building in this area first (before beginning), also, estimate construction costs and all hard costs (before beginning). allow 15 % contingency minimum. If the math shows a profit.. and you are up for a full time committment, then go to bank for construction loans and/or go to the building dept for permits.

subs are not as essential as are engineers, and architects. Some of the most successful builders never swing a hammer.

good luck.

 

[shamrock]

Holy shit, in my town Massachusetts, --- $140000 --- per acre ---

 

[MadJack]

subs are not as essential as are engineers, and architects. Some of the most successful builders never swing a hammer.

good luck.

why can't i just purchase a house plan online and use that to build the house from? that's what i was thinking because that's what i did for the house i'm living in now.

 

[freelancc]

why can't i just purchase a house plan online and use that to build the house from?

that's fine. just make sure local buiding dept. reviews plans and stamps them as approved prior to applying for a permit. Each building department has "in-house' engineers that should review the "calcs" beforehand. If they accept them as is then you are good to go.

 

[Captain Crunch]

Jack, I am getting ready to leave to go to a high school playoff BB game and don't have time to give you all of my thoughts right now. Our company has built about 15 spec homes in the past and I have been working in the concrete business for over 20 years. I know Raymond does similar work, but if there is any question you need answered regarding the foundation, driveway, sidewalk, etc. feel free to ask or I can call you, whichever way works best.

 

[treyburn]

Use reputable subs who carry their own workmans comp and general liability. They charge a little more but worth it in the long run.Also keep in mind that you are doing this to make a profit and not to live in.Use builders grade carpeting, lighting, plumbing fixtures, etc..Your local suppliers should be able point out these products.

 

[toastonastick]

This guy has great plans. Little pricey though. We had our choice of his plans whne our house was built. Of course did not build just picked the plan etc...

http://www.frankbetz.com/