Anyone every build new?

Question

THIS ARTICLE really has me thinking and I want to connect with those who have built to sell or hold before. I was a carpenter and now work in commercial construction, so I'm no newb but I cam curious to know more about the challenges in building form scratch.

Any advice is greatly appreciated. PM me if you are in Charlotte and want to talk about this in person.

Lucero Sanchez · Answer

Hi, Manolo like I mentioned before we built the house in 2008 and since than we have learned a lot like workmens comp insurance and all that good stuff so we are prepared for that in this new project. The house we built in 2008 was not just built by my husband and I if you read my post I did mention that we gathered all the workers, we did simple things like sheet rock painting and since my husband is an HVAC tech he did all the AC work and yes Manolo we did get city permits they came and inspected the house every time we finished something in the house, everything passed inspection and we lived in it for 3 years that house was sold in 2011 and the money we made from the sell we have since made it grow even bigger in RE so now armed with capitol and all the knowledge we have absorbed through out all this time in RE we are ready for a bigger challange.

What we want is for people to see that even if you don't know much or have much money but you badly want it and are not scared then you take the RISK you put all your strength and the little you know into it, that is a leap that we chose to take and it was totally with it.

I wish you success ;)

Kyle H. · Answer

@Daniel Morey

My partner and I just finished our first project which was new construction.  We bought a city lot with a mobile on it and rented it short term and then sold and moved it off the property and have built two duplexes and a tiny home.  We have built to hold as long term rentals and were able to stay under 70% of appraised value with the build.  However my partner is a GC and I am his project manger in that company and we built for cost.  Our first unit was on a flatter section of property with a minimal crawl space and was built for about $85 sq/ft with hardwood floors/granite tops and stainless appliances.  Our next duplex was an over under with substantial foundation and ground work finished similarly for $96 sq/ft.

In terms of challenges new construction can definitely take some adjusting to the project management side of things versus rehabs.  We have the luxury of our own crews and subs which we use for our custom home builds and intimately know the code officers and zoning issues.  Even though it would seem to be easier budgeting can still be problematic as well.

I know that article might seem to make it appear that you can build that cheap I just don't see how its possible.  I know of some people who are building new in the $70 range but the materials used will not last quite as long and the finishes will not command higher rents.  Everyone has their own tastes and end goals but we are trying to make higher end rentals with quality materials and finishes that we can get 7-10 years of lower maintenence costs and then sell.

Manolo D. · Answer

@Lucero Sanchez Now that you have explained it better, I think you have a chance at a new build, make sure you have all contracts, receipts, a contact list, and all those subs are still in business, insured, and bonded. I was explaining to you that if you didn't have worker comp, it will be a whole new different story. Try to see a lender and get your ducks in a row. The best way to approach is, buy the land, get an approved permit, then face a lender, make sure you have 25% or more equity (free and clear land + soft costs or approved plans plus paid utility taps), by then, you should not have any problem going after that big bad wolf.

Lucero Sanchez · Answer

Oh yes I forgot to mention I do have all the receipts and all the names and company names that we used to buy lumber, roof tile kitchen cabinets and all that stuff so I guess I did kind off document all material and labor ")

Manolo D. · Answer

@Lucero Sanchez I assume you paid for everything cash, don't have a GC license, and all insurances associated with it, you probably didn't even document the whole thing, i hope you pulled the permit and all that. The bad thing is, lenders MIGHT see you as a risk (not a lender), due to the undocumented build, I do hope they will give you some credits for it. Here is from a legal view, you built a house, and you don't have workman's comp, that will only mean that you and your husband is the ONLY ones doing the work, which is unbelievable or close to impossible. You can take a loan 75% of your house, then use the funds to start building, now IF you are unsuccessful, that will mean you lose both houses. Try to see if you have the home-builder option, but that will mean you will have to live IN the house a year or two after it is built. I could not imagine it in any other way. Good luck.

Lucero Sanchez · Answer

We built a house in 2008 my husband and I are not contractors but my husband gathered all the man power we needed, he would go to construction sites and speak to the workers to see if they wanted to do a side job that's how we were able to get all the people we needed, we also did a lot of the work ourselves like sheet rock painting and HVAC the biggest challenge was not the fact that we had never done anything like this before or that we built in a bad area and people would steel material to buy drugs, which forced us to buy a fifth wheel trailer park it on the lot and live in it, it was the money and time we did everything cash, my husband was working a full time job 5:30am to 6 or 7 pm (he is an AC tech, and here in AZ the heat is brutal ) and doing AC side jobs after work he would get back around 10 or 11pm than he would pick up the hammer and work on this house we were building, and go to bed around 2 or 3 am sleep for a couple of hours and continue the same rutine. He was doing so many side jobs and putting extra hours to have enough money to finish this thing. We were able to finish a 2000 Sq ft home in less than 5 months. For us it came down to time and money.

We hope to build a 3100sq ft home this year, again we will be our own contractors and if we need to do some work ourselves, we will. Fingers crossed hopefully all goes well. ; )

Lucero Sanchez · Answer

You mentioned a track record, how do you make one or start one, all I have is the my bookkeeping and floorplans?

Anyone every build new?

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