what is the builder fair fees other than a % of Tot cost ?

[Tarek Soliman]

HI BP community 

I have a land that I want to build several houses on it, and I am looking for a good a builder who I will going to have good sustainable long  term relationship. since I am building those houses for rent  and not my own dream house, so they must be as efficient as possible and quality for rent.  But the builders fees are determined by a percentage of the total cost, and I feel there is conflict of interest. I want to build with  lowest cost and good quality, but his fees build on the total cost. 

Question:

what are the good deals with the builders to replace the percentage of total cost? 

Pleas keep in mind that I want to keep him for the long term. and he is needs 

more projects. 

every suggestion is appreciated it 

[Tarek Soliman]

Thank you  @Mike Wood and @Manolo D. for sure 

I think I am getting great deal of the Market awareness. overall, the most important part for me is to find the right builder which I  think I have one already. I am going to open my mind with him try to make win win situation and him get what make it worth for him.  

I would like to mention that is building a house it might take an average of 4-6 month to build in my township. So the house that I am going to build it could cost a range 100K-120K . In this case the builder in my area looking for 15% -20% which translate to 15K-20K addition the total cost. 

[Manolo D.]

Tarek Soliman You might have lost me somewhere there, I thought you are hiring a GC? Or are you hiring a builder? Do you know what the difference and what similarities? Why do you expect that only 4-6 months of work? Is pre-construction timeline and permit pulling part of that timeline or is that a napkin sketch to doorbell timeline? I could build a house in two months, if inspectors are there the next day I request them, but, there will be a lot of finish cracks due to the building not fully settling yet.

[Tarek Soliman]

THANK YOU @Manolo D.

The building is not in austin, IN FCAT it will  be in one of those rural area, very small town. however the city is working pretty well with the builders here. for example the new building construction near austin would  take 12months -14months and here would take max with weather condition delay 8 month ( but usually 6month).  that's how fast in those small town I never get to build before but this is what know from each builder in those rural area.  Most of the builder in those rural area dont like to build near austin for the same reason as they say "whatever takes us 6 month here it will take us more than a year there, because of the permits and inspections are time consuming near austin" 

I am hiring a builde, who is  basically  is subcontracting each stage. we are using my finance loan (Interim loan). in this case we might calling him GC. we call them a builder here, and they are definitely not GC for rehab projects those are different, they only build costume and specs homes and commercials. 

Thank you 

[Manolo D.]

Tarek Soliman I still don't know about the timeline of 4 months or 6 months, planning alone takes a few weeks. Plus you have utility taps. Plus this and that. Doable, Possible, but highly improbable. Good luck though.