Rental Property Investor · Nashville, TN · Member since 2022 · 7 posts · 2 votes
Hello,
I am hoping to get insight on what type of delays to expect in this region if I decide to invest with a builder in town, so that I can properly structure our contract and get some kind of reasonable project schedule (timeline with type of work to be performed).
If your builder/contractor has a good track record and experience then most of your delays will come at the beginning of the project. If you buy raw land that is in critical slope and has no previous septic approval then it will take a couple of months just to get the engineered footer reports and septic approval.
Once you break ground you will have a few weeks of delays through the life of the build....concrete, inspectors, weather, etc. A good contractor can manage anything else that arises.
Just finished one build and it was completed 5.5 months from the day we broke ground.
Literally anything, wood could be on back order, guys might get sick, take off for the holidays. You account for this by giving more time than the guys actually need and make a hard cutoff date. Penalize them if the date isn't met, I do $500 a day.
Do some investigating on your own and findout from the city/county how long is the permitting process. Also you may want to consider weather delays. When snow and ice hit that area, you may lose a few days of work. Hopefully the crews are local to that area but those roads in and out of town can be nasty.
If your builder/contractor has a good track record and experience then most of your delays will come at the beginning of the project. If you buy raw land that is in critical slope and has no previous septic approval then it will take a couple of months just to get the engineered footer reports and septic approval.
Once you break ground you will have a few weeks of delays through the life of the build....concrete, inspectors, weather, etc. A good contractor can manage anything else that arises.
Just finished one build and it was completed 5.5 months from the day we broke ground.
So many factors. Is this a basic cabin or a high end cabin with a lot of custom features? Pool? Sprinkler system? Steep grade? How much are you paying per square foot? Is it a spec?
I would assume 12-18 months right now to be safe. Some builders have a 2-3 year waiting list as well so that's something to factor in.
Thanks for all of the helpful information. I am in the middle of signing a Joint Venture where I provide the capital while he provides the land and the labor/materials for the new home(s). Any advice on what documentation I should be asking him for (project schedule with timelines, expected bill of materials, permits, surveys, utility plans, list of all of his subcontractors for each specialty, types of insurances required, etc)?
Also, any book recommendations on business as well as new home construction pitfalls/advice would be appreciated too.
Thanks for all of the helpful information. I am in the middle of signing a Joint Venture where I provide the capital while he provides the land and the labor/materials for the new home(s). Any advice on what documentation I should be asking him for (project schedule with timelines, expected bill of materials, permits, surveys, utility plans, list of all of his subcontractors for each specialty, types of insurances required, etc)?
Also, any book recommendations on business as well as new home construction pitfalls/advice would be appreciated too.
If you're in a JV with the builder you will want to have crystal clear expectations of what each of your roles is going to be... Hopefully, your JV will clearly outline the roles and responsibilities of you and the builder. You'll want good communication on both sides to stay in the loop. One thing to consider is who will have the final say in the design and material choice. Might want to consider a 49/51 balance in favor of either party depending on the role and what you have outlined, that's where disagreements can form and partnerships fall apart.
Can't think of any books specifically related to this topic but 'Never Split the Difference' by Chriss Voss is a good one when it comes to negotiations and human psychology.