Anyone really interested in construction??
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
I just replied to a thread and it made me wonder. I'm not on BP very often any more, but I still have a vast experienced history. One thing I haven't seen much is a how to or step by step approach to actually building a home with info from start to finish. I've probably done close to 100 spec homes in 3 different states. I assure you it isn't rocket science.
I currently have 2 under const in UT and a couple more in so TX. I've also built in OR and CA at other times. I'm not a general contractor, just a speculator. There are many ways to make money on your own home with proper knowledge and location.
If there is enough interest, I'd be willing to post regular reports on the process. If not enough interest, no problem either. Have a good day. Rich
I think this thread has done a great job outlining the basic steps needed to build a house. It has also shown great examples of the potential profits available in spec home building. I would caution anyone who is considering building their first spec home to do your homework. Unless you are a GC, you probably don't want to start two new businesses at the same time. One business being spec home building and the other being General Contracting.
Here is a more detailed list of construction items you will have to consider when building a new home. I believe somewhere in this thread, absorption rate was mentioned and that could be the most important statistic to know. Just like a flip, you need to have multiple exit strategies for a spec home.
This list was poached from contractortalk.com
House/with attached Garage
General Conditions
Finalize plans and develop estimate with owner, architect
Sign contract and notice to proceed
Apply for Permits
Secure foundation permit
Secure framing permit
Secure electrical permit
Secure plumbing permit
Secure HVAC permit
Secure miscellaneous permits
Site Work
Clear and grub lot
Excavator estimated houly
Skid steer estimated hourly
Trucking estimated hourly
Topsoil stripping
Skid steer estimated hourly
Trucking estimated hourly
Pavement and sidewalk removal
Skid steer estimated hourly
Trucking estimated hourly
Rough grading
Skid steer estimated hourly
Relocation of existing natural drainage
Excavator estimated houly
Skid steer estimated hourly
Removal of unsuitable soil
Skid steer estimated hourly
Trucking estimated hourly
Access roads
Skid steer estimated hourly
Trucking estimated hourly
Detours
Protection of existing structures and utilities
Environmental considerations
Install temporary power service
Install underground utilities
Foundation
Locate building
Survey
Install batter boards
Excavate for foundations
Excavator estimated houly
Drilling for garage piles
Skid steer estimated hourly
Trucking estimated hourly
Forming
Footings
Total lineal feet of footing
Total width of footing
Total thickness of footings
Total cubic meters of footings
Foundations walls
Total lineal feet of walls
Total width of walls
Total height of walls
Total cubic meters of walls
Grade beams
Total lineal feet of beam
Total width of beam
Total height of beam
Total number of 12"x12' concrete pile
Total cubic meters of beams and piles
Cure basement walls for 7 days
Strip basement wall forms
Waterproof/insulate basement walls
Perform foundation inspection
Backfill foundation
Skid steer estimated hourly
Framing house and attached garge
Install 1st floor joists
Mud sill achor bolts
Sill gasket
2x6 Treated mud sill
2x10 Spruce 4 ply beam
3" Adjustable steel telepost
2x10 Spruce joisting
2x10 Spruce rim joists
2x2 bridging
Single joist hangers/nails
Double joist hangers/nails
3 1/4" coated nails
Lay 1st floor decking
3/4" T&G Fir sheating
1 1/2" flooring screws
Sub-floor adhesive
Frame 1st floor walls
Exterior walls
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3/8" spruce sheathing
2x10 spruce 2 ply header with 2x6 backer
2x6 garge door rough frame and Brick moulding
3 1/4" coated nails
1 1/2" sheathing staple
House wrap (Tyvek) and tape
3/8" house wrap staples
Interior walls
Top, bottom and cap plates 2x4 spruce
2x4 spruce studs 92 5/8"
2x4 spruce single plate door header
Plumbing wall
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3 1/4" coated nails
Cap plate and exterior wall backing poly flashing
2x10 Spruce 4 ply beam
2x6 drywall backing
Install 2nd floor joists
2x10 Spruce joisting
2x10 Spruce rim joists
2x2 bridging
Single joist hangers/nails
Double joist hangers/nails
3 1/4" coated nails
Lay 2nd floor decking
3/4" T&G Fir sheating
1 1/2" flooring screws
Sub-floor adhesive
Frame 2nd floor walls
Exterior walls
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3/8" spruce sheathing
2x10 spruce 2 ply header with 2x6 backer
3 1/4" coated nails
1 1/2" sheathing staple
House wrap (Tyvek) and tape
3/8" house wrap staples
Interior walls
Top, bottom and cap plates 2x4 spruce
2x4 spruce studs 92 5/8"
2x4 spruce single plate door header
Plumbing wall
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3 1/4" coated nails
Cap plate and exterior wall backing poly flashing
2x10 Spruce 4 ply beam
2x6 drywall backing
Interior stairs and landings
Complete roof framing
Manufactured Roof trusses and gables 24" o.c.
2x6 gable ladders and fascia
2x6 fasica
Cardboard insulation baffels
2x4 truss bracing and strapping
2x4 ridge blocking
1/2 roof sheathing
1/2 sheathing clips
3 1/4" coated nails
2" sheathing staples
3/8" insulation baffle staples
Conduct framing inspection
Dry In
Shingles
210 Asphalt shingles
Ice and water shield
Asphalt ridged cap
1 1/4" shingle nails
Aluminum gable flashing
Roof vents
1st floor exterior doors
Front door 36/80 6 panel with side lite
Weiser brush nickel passage and deadbolt
Back door 36/80 6 Panel
Weiser brush nickel passage and deadbolt
Garage man door to house 36/80 6 panel with closer
Weiser brush nickel passage and deadbolt
Garage doors 9x7 Barcol inusulated with Genie opener
1st floor windows
2nd floor windows
Exterior Finishes
Eaves
Aluminum vented soffit (white)
Aluminum fascia
5" Gutter and down spouts
Stucco
Scaffolding
1 1/2" styrofoam insulation
Stucco base coat
Stucco finish coat
Parging
Stone work
Shingle gables
Exterior Decks and Stairs
Utility Rough-Ins and Complete Concrete
Rough-in plumbing
Conduct rough-in plumbing inspection
Place concrete for basement floor
Rough-in electrical
Conduct rough-in electrical inspection
Rough-in HVAC
Conduct rough-in HVAC inspection
Rough-in communication - phone, cable, computer, alarm
Interior Finishes
Insulation
Wall insulation - 1st floor
R20 fiberglass batt 6ml vapor barrier
Wall insulation - 2nd floor
R20 fiberglass batt 6ml vapor barrier
Ceiling insulation - 2nd floor
R40 Blown in cellulose 6ml vapor barrier
Conduct insulation inspection
3/8" vapor barrier Staples
Tuck tape
Acostical chalking
Drywall
Install drywall - 1st floor walls
Install drywall - 1st floor overhead
Install drywall 2nd floor walls
Install drywall 2nd floor overhead
Tape and float 1st floor drywall
Tape and float 2nd floor drywall
Paint
Texture all except entry and kitchen - 1st floor
Paint all except entry and kitchen - 1st floor
Hang wallpaper entry and kitchen - 1st floor
Texture all - 2nd floor
Paint all - 2nd floor
Paint exterior siding & trim work
Cabinets
Install 1st floor - kitchen cabinets
Install 1st floor - master bath and guest cabinets
Install 2nd floor - hall bath and private bath cabinets
Install chair rails, crown moldings, trim
Finish Plumbing
Complete 1st floor - kitchen plumbing
Complete 1st floor - master bath and guest plumbing
Complete 2nd floor - hall bath and private bath plumbing
Conduct finish plumbing inspection
Finish Electrical
Complete 1st floor circuits to service panel
Complete 2nd floor circuits to service panel
Conduct finish electrical inspection
Complete communications wiring - phone, cable, computer, alarm
Finish HVAC
Complete 1st floor - zone 1 HVAC
Complete 2nd floor - zone 2 HVAC
Conduct HVAC inspection
Carpet, Tile and Appliances
Tile entry, kitchen and baths
Carpet 1st floor
Carpet 2nd floor
Install appliances
Landscaping and Grounds Work
Pour concrete driveway and sidewalks
Install backyard fence
Sod and complete plantings - front yard
Sod and complete plantings - backyard
Final Acceptance
Complete final inspection for certificate of occupancy
Cleanup for occupancy
Perform final walk-through inspection
Complete punch list items
Rich,
I would definitely be interested in reading/hearing about your reports. Have you given any thought on writing a new construction checklist or maybe a basic pdf on the steps.
Im not a GC but I have done more than my fair share of rehabs and new construction is something I would like to get into without relying on my GC soley.
Any info you can provide would be GREATLY appreciated :)
Hi Adrian,
As I stated before, I'm not on BP much any more, and leaving tuesday on a 7 week RV trip to find cooler weather! Yellowstone, Glacier, Jackson Hole, Missoula, Couerdalene, and the Canadian rockies. Just very busy. I've pretty much punted on the homes I'm currently building to my GC in TX and GC in UT. Rich
p.s. I don't know about a checklist. I'm not a licensed GC and there are probably some on BP that would do a better job.
I think this thread has done a great job outlining the basic steps needed to build a house. It has also shown great examples of the potential profits available in spec home building. I would caution anyone who is considering building their first spec home to do your homework. Unless you are a GC, you probably don't want to start two new businesses at the same time. One business being spec home building and the other being General Contracting.
Here is a more detailed list of construction items you will have to consider when building a new home. I believe somewhere in this thread, absorption rate was mentioned and that could be the most important statistic to know. Just like a flip, you need to have multiple exit strategies for a spec home.
This list was poached from contractortalk.com
House/with attached Garage
General Conditions
Finalize plans and develop estimate with owner, architect
Sign contract and notice to proceed
Apply for Permits
Secure foundation permit
Secure framing permit
Secure electrical permit
Secure plumbing permit
Secure HVAC permit
Secure miscellaneous permits
Site Work
Clear and grub lot
Excavator estimated houly
Skid steer estimated hourly
Trucking estimated hourly
Topsoil stripping
Skid steer estimated hourly
Trucking estimated hourly
Pavement and sidewalk removal
Skid steer estimated hourly
Trucking estimated hourly
Rough grading
Skid steer estimated hourly
Relocation of existing natural drainage
Excavator estimated houly
Skid steer estimated hourly
Removal of unsuitable soil
Skid steer estimated hourly
Trucking estimated hourly
Access roads
Skid steer estimated hourly
Trucking estimated hourly
Detours
Protection of existing structures and utilities
Environmental considerations
Install temporary power service
Install underground utilities
Foundation
Locate building
Survey
Install batter boards
Excavate for foundations
Excavator estimated houly
Drilling for garage piles
Skid steer estimated hourly
Trucking estimated hourly
Forming
Footings
Total lineal feet of footing
Total width of footing
Total thickness of footings
Total cubic meters of footings
Foundations walls
Total lineal feet of walls
Total width of walls
Total height of walls
Total cubic meters of walls
Grade beams
Total lineal feet of beam
Total width of beam
Total height of beam
Total number of 12"x12' concrete pile
Total cubic meters of beams and piles
Cure basement walls for 7 days
Strip basement wall forms
Waterproof/insulate basement walls
Perform foundation inspection
Backfill foundation
Skid steer estimated hourly
Framing house and attached garge
Install 1st floor joists
Mud sill achor bolts
Sill gasket
2x6 Treated mud sill
2x10 Spruce 4 ply beam
3" Adjustable steel telepost
2x10 Spruce joisting
2x10 Spruce rim joists
2x2 bridging
Single joist hangers/nails
Double joist hangers/nails
3 1/4" coated nails
Lay 1st floor decking
3/4" T&G Fir sheating
1 1/2" flooring screws
Sub-floor adhesive
Frame 1st floor walls
Exterior walls
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3/8" spruce sheathing
2x10 spruce 2 ply header with 2x6 backer
2x6 garge door rough frame and Brick moulding
3 1/4" coated nails
1 1/2" sheathing staple
House wrap (Tyvek) and tape
3/8" house wrap staples
Interior walls
Top, bottom and cap plates 2x4 spruce
2x4 spruce studs 92 5/8"
2x4 spruce single plate door header
Plumbing wall
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3 1/4" coated nails
Cap plate and exterior wall backing poly flashing
2x10 Spruce 4 ply beam
2x6 drywall backing
Install 2nd floor joists
2x10 Spruce joisting
2x10 Spruce rim joists
2x2 bridging
Single joist hangers/nails
Double joist hangers/nails
3 1/4" coated nails
Lay 2nd floor decking
3/4" T&G Fir sheating
1 1/2" flooring screws
Sub-floor adhesive
Frame 2nd floor walls
Exterior walls
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3/8" spruce sheathing
2x10 spruce 2 ply header with 2x6 backer
3 1/4" coated nails
1 1/2" sheathing staple
House wrap (Tyvek) and tape
3/8" house wrap staples
Interior walls
Top, bottom and cap plates 2x4 spruce
2x4 spruce studs 92 5/8"
2x4 spruce single plate door header
Plumbing wall
Top, bottom and cap plates 2x6 spruce
2x6 spruce studs 92 5/8"
3 1/4" coated nails
Cap plate and exterior wall backing poly flashing
2x10 Spruce 4 ply beam
2x6 drywall backing
Interior stairs and landings
Complete roof framing
Manufactured Roof trusses and gables 24" o.c.
2x6 gable ladders and fascia
2x6 fasica
Cardboard insulation baffels
2x4 truss bracing and strapping
2x4 ridge blocking
1/2 roof sheathing
1/2 sheathing clips
3 1/4" coated nails
2" sheathing staples
3/8" insulation baffle staples
Conduct framing inspection
Dry In
Shingles
210 Asphalt shingles
Ice and water shield
Asphalt ridged cap
1 1/4" shingle nails
Aluminum gable flashing
Roof vents
1st floor exterior doors
Front door 36/80 6 panel with side lite
Weiser brush nickel passage and deadbolt
Back door 36/80 6 Panel
Weiser brush nickel passage and deadbolt
Garage man door to house 36/80 6 panel with closer
Weiser brush nickel passage and deadbolt
Garage doors 9x7 Barcol inusulated with Genie opener
1st floor windows
2nd floor windows
Exterior Finishes
Eaves
Aluminum vented soffit (white)
Aluminum fascia
5" Gutter and down spouts
Stucco
Scaffolding
1 1/2" styrofoam insulation
Stucco base coat
Stucco finish coat
Parging
Stone work
Shingle gables
Exterior Decks and Stairs
Utility Rough-Ins and Complete Concrete
Rough-in plumbing
Conduct rough-in plumbing inspection
Place concrete for basement floor
Rough-in electrical
Conduct rough-in electrical inspection
Rough-in HVAC
Conduct rough-in HVAC inspection
Rough-in communication - phone, cable, computer, alarm
Interior Finishes
Insulation
Wall insulation - 1st floor
R20 fiberglass batt 6ml vapor barrier
Wall insulation - 2nd floor
R20 fiberglass batt 6ml vapor barrier
Ceiling insulation - 2nd floor
R40 Blown in cellulose 6ml vapor barrier
Conduct insulation inspection
3/8" vapor barrier Staples
Tuck tape
Acostical chalking
Drywall
Install drywall - 1st floor walls
Install drywall - 1st floor overhead
Install drywall 2nd floor walls
Install drywall 2nd floor overhead
Tape and float 1st floor drywall
Tape and float 2nd floor drywall
Paint
Texture all except entry and kitchen - 1st floor
Paint all except entry and kitchen - 1st floor
Hang wallpaper entry and kitchen - 1st floor
Texture all - 2nd floor
Paint all - 2nd floor
Paint exterior siding & trim work
Cabinets
Install 1st floor - kitchen cabinets
Install 1st floor - master bath and guest cabinets
Install 2nd floor - hall bath and private bath cabinets
Install chair rails, crown moldings, trim
Finish Plumbing
Complete 1st floor - kitchen plumbing
Complete 1st floor - master bath and guest plumbing
Complete 2nd floor - hall bath and private bath plumbing
Conduct finish plumbing inspection
Finish Electrical
Complete 1st floor circuits to service panel
Complete 2nd floor circuits to service panel
Conduct finish electrical inspection
Complete communications wiring - phone, cable, computer, alarm
Finish HVAC
Complete 1st floor - zone 1 HVAC
Complete 2nd floor - zone 2 HVAC
Conduct HVAC inspection
Carpet, Tile and Appliances
Tile entry, kitchen and baths
Carpet 1st floor
Carpet 2nd floor
Install appliances
Landscaping and Grounds Work
Pour concrete driveway and sidewalks
Install backyard fence
Sod and complete plantings - front yard
Sod and complete plantings - backyard
Final Acceptance
Complete final inspection for certificate of occupancy
Cleanup for occupancy
Perform final walk-through inspection
Complete punch list items
See! I knew that would happen! Great job Emilio. Anyone interested in Const, should copy this. Rich
p.s. This is a better list than mine!
Rich,
This is a very interesting topic, I actually have 3 parcel of land right n Newark,NJ in the north side area, much decent than the rest of Newark. I have had them for about 2 years now, and I keep on trying to find the right developer but the numbers dont make sense. It has come down to pretty much cutting them out and taking things into my own hands. I would really like some advise, and experience sharing, if you could please.
Wish you and yours well,
John Rod.
@Rich Weese great post!
@Emilio Ramirez That's a great list for people to begin with and modify as they do their own projects. I'm guessing your in a colder region than we have here in Virginia.
To all, other than traditional bank financing for our spec units, what options should we look into? Does anyone have any referral's? We build 2-3 homes a year and clients pay cash (yes, insane) or already have qualified for construction to perm financing. I'm aware of subordinating the owners land to the bank and buy downs. We are a very HOT market and I have several single lots and developments being offered all the time but, my hurdle to spec home building always is (and probably will always be) finacing.
Thanks for this post @Rich Weese ...Very interested in this topic myself as well.
Steve H- You might check with general contractors in your area. I know that here in UT most of the GC's use the SAME private lender on specs and I've used him also. 9% and 2 pts for 6 month loan is going rate. There are probably the same options in your area-most GC's have little cash,imo.
Douglas- thanks and good luck.Building 4-8 units would be a good way to start, if possible. Rich
@Rich Weese thinking yes to both haha...for sure my central objective is to break ground by the end of Q3 2014.
Brilliant minds think alike.....
Has anyone ever used preconstruction investors to fund their specs. I used too all the time and it worked great did know if anyone else does the same?
@Rich Weese thanks for the tip. I'm attending some up coming meetings and will start asking around. Those kind of rates would be acceptable. Cash flow IS king.
@Kenneth Bell This is a new one to me. Would you happen to have a web link or contact? Thx
Rich,
The concept is simple I build and sell to investors pre-construction at a lower price. When we market and sell, they get the spread. It works well in hot markets. I build a spec that pre appraises for 320k I give it to my pre construction investor at 285k he secures construction loan. My marketing team markets right away. When we sell that spread is his. He has the option to sell at whatever price he likes. 60% of my investors had contracts before the CO. Worked well in high demand markets. I made a little less but the leverage was in the house and investors got great returns. Not sure if anyone else used the strategy.
.. Any Woman owned mgmt companies there? I'd love to see how she has done. She was one of the best managers I ever had, and she was nearly brand new! Keep posting and welcome to BP. Rich
I'm happy to see how open minded you are Rich! Many developers that I know would prefer to work with men. I think we should all consider working with more businesses that are owned by women!