New Spec Coastal North Carolina

New Spec Coastal North Carolina

Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes

Ok, I am brand new here and have spent the last 4hrs (at least) reading diaries and listening to the podcast episodes at the same time. I am so impressed with the complete openness in this community, it is truly amazing! 

I am located in Carolina Beach, NC (south of Wilmington, NC) and am just starting out on my own as a new home builder. I have been in construction for over 25yrs, and spent the last 3+ yrs as a project manager where I managed 150+ new homes and townhomes. A couple of months ago, my position as Project Manager was eliminated, and I was let go. I had already seen this was coming, I just thought I had until next year. 

This put me in panic mode, and I immediately started working on getting started. I had no plans designed, no funding, and no cash. Because I had foreseen my making this step eventually, I had pitched my ideas out to some friends with connections in the private investment realm. Nothing had come about by that at this point. 

As soon as I lost my job, I took a hard look at what little bit of cash I had and decided I could survive for a few months and decided to go full speed ahead at making this happen. I started my LLC, invested in a new design, researched competitive market analysis for where I wanted to live, etc...

I knew I wouldn't be able to get traditional financing, so continued courting private funding options. I finalized my plans and put the entire project out to bid. Armed with all this data, it made my project an easier sell. 

Long story (and helluva roller coaster ride), I partnered with an investor and we secured funding for my first three specs, including lots, last week. 

My plan is called "The Aruba", rendering and floorplans:

I have so much more to tell, but for now I will leave you with this:

Lot Cost: $91,500 (it's 5 blocks to ocean, yet out of flood zone, prime lots)

Construction Cost: $185,00 (just under $110/ft for build, I may be able to get that to $100/ft)

Sale Price: $359,900

I plan on closing on the lots in a few weeks, then starting 3 in a row (one every 30 days). 

Ultimately, I have a goal to buy and hold with my profits over my overhead/bills, actually I like to call it a build and hold. Areas I will likely do this will be off the beach, lots $30-$50k, build costs $80/ft, ultimately with no debt initially, so one per year starting in 2016. 

I look forward to learning from you all, and thanks to all of you for creating such a great community and sharing your stories!

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Investor · Raleigh, NC · Member since 2013 · 40 posts · 2 votes
11y
Thanks for journaling this experience- I look forward to hearing what comes next!
See this reply in the discussion

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  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Latest update, I have 4th lot under contract and moved my new home listing to that lot, was hoping to close Friday, but looking more like Monday or Tuesday, I heard a rumor that the seller raised prices on lots $7500 the day after I put my 4th lot under contract. So that makes me feel better that we ended up with the 4th lot. 

    I have my permits submitted and my clearing crew set to clear lot next week. Will post another update after I close on the lot. 

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Update:

    New appraisal FINALLY came back for construction loan, hoping to close on lot by end of week. New plot below, for some reason the town requires you to show parking that meets the requirements of how many spaces you have to have. (based on bedrooms I believe)

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Yesterday, we closed on the first lot and construction loan. It has been a long journey to get here, but I am scheduled to start clearing the lot tomorrow or Thursday. 

    Today, after having breakfast with my investor/partner and seeing him off back to Raleigh, I spent the morning scheduling, updating bids (my quotes for things like lumber, windows, doors, trusses, etc.. were from October and needed to be updated), which I ended up saving hundreds of dollars as lumber prices inched down over the winter, issuing PO's (first I created a template in Google Sheets with a sheet for every major vendor so I could easily get these PO's out in the future, that took me a few hours), sending my plans off to be printed, and sending out RFP's for my next build (will start another thread for that one). 

    This week clearing, next week Pilings, the following week slab/concrete work, and I hope to be framing in 3-4 weeks if scheduling allows. 

    Will post pics later this week when clearing and grading commences. 

  • Alana M.Pro Member
    Investor · Surf City, NC · Member since 2010 · 18 posts · 8 votes
    11y

    Wow - You have certainly kept your eye on the prize @Keith Bloemendaal .  Way to go!  So many people would just hang their head and dwell on a job loss...not you....what a blessing! 

    I live "Just up the road" from you on Topsail Island, NC - Looking forward to hearing more about your success story.  

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Picked up permit today, which brings up another topic, for this area, my municipality is close to double for all the fees. I am sure people that develop out west, or in other high cost of living areas are used to paying much more than I just did. Anyway, it's about 2x the cost here as it is the next municipality over. This is nothing new to me, as I knew it from previous builds as a project manager, it just wasn't my signature on the check then ;-)

    The lot is cleared, and I actually have my first video up on my Youtube channel: https://www.youtube.com/watch?v=UFAxudBPRYU

    I plan on utilizing video quite a bit for my builds, as much as I have time for anyway. 

    Fill dirt is supposed to start coming tomorrow, they said they can fill and grade in one day. Then my surveyor can pin the corners of the house and pilings can go in. 

    I'll keep you posted as more happens. 

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Forgot to post a pic of the cleared lot (50x100):

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Update:

    Made my first real video today, meaning I actually talk in it. Was nervous, took several takes, but here it is. It took place while the fill dirt was being delivered and graded.

    https://www.youtube.com/watch?v=-J_DAbvvcLw

  • Real Estate Broker · Triangle Area, NC · Member since 2012 · 587 posts · 214 votes
    11y

    Loving it Keith! This thread is awesome. Thanks for the continuous updates and pics/videos.

  • Investor · Chesapeake, VA · Member since 2011 · 47 posts · 15 votes
    11y

    Great thread Keith. I really appreciate you sharing your journey. This is something I've wanted to do, so it's especially meaningful to follow along with you. You've really set up a great model for anyone to follow that's interested in this form of investing. Thanks for sharing and I look forward to reading about your progress. I wish you much success.

  • Investor · Chesapeake, VA · Member since 2011 · 47 posts · 15 votes
    11y

    @Keith Bloemendaal  I watched your vids...good job. I just wanted to ask you if you had considered trying to sell the trees on the lots as firewood? Maybe they aren't any good for this, it was hard to tell just from the video. Also, you probably didn't want to bother with it due to time concerns. Just wondering, since in some circumstances, it could be a way for someone to basically pay you to clear the lot or clear it for you with the firewood being the payment.

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y
    Originally posted by @Jim Blatchley:

    @Keith Bloemendaal  I watched your vids...good job. I just wanted to ask you if you had considered trying to sell the trees on the lots as firewood? Maybe they aren't any good for this, it was hard to tell just from the video. Also, you probably didn't want to bother with it due to time concerns. Just wondering, since in some circumstances, it could be a way for someone to basically pay you to clear the lot or clear it for you with the firewood being the payment.

     Thanks! I have more videos coming up this week. I don't think it's feasible to do the firewood thing in this case, most of the bigger stuff was pine, and any hardwoods were mostly small brush. It may have even cost more in labor than I would have gotten in firewood. 

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Update:

    Water and sewer are installed, pilings installed, slab is formed, prepped and inspected, now I just need this cold snap to push on through so we can pour...

    I also added a couple more videos to my Youtube channel if anyone is interested in them, just go to YT and search "dutch built homes" and you should find my channel named the same. 

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Update:

    Slab was poured Saturday, framing package was delivered yesterday and framing will start tomorrow morning. Yay! 

    I should get my other three lots closed in a couple weeks and am planning 2 spec's to start immediately, and am working on a pre-sale on one of those lots for this plan (The Aruba) so that would have me building 4 by the end of next month.

  • Flipper/Rehabber · Sugar Land, TX · Member since 2015 · 142 posts · 64 votes
    11y
    Originally posted by @Keith Bloemendaal:
    Originally posted by @Michael Jobe:

    @Keith Bloemendaal 

    Merry Christmas indeed! I'm happy to hear that the ball is still rolling for you on this project. Gotta love the attorneys & accountants...can't live with them; can't live without them. Are you using your own crews or a tree company to clear out that forest?

     I have a clearing subcontractor. Merry Christmas to you as well!

     Hey Keith was wondering how things have been coming for you?

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

     Things are coming along nicely, this home is moving forward as you can see, and I have 3 more lots under contract on the same street I am trying to close on in next 2 weeks. 

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    One week ago yesterday we started framing, I was out of town most of the week for continuing education, but these guys rocked it for me! 

    They should be working on decks today. Windows and doors will be delivered Monday, and I should start to get trades in to start rough ins late next week. 

    We raised the price $5k yesterday on the listing, lot prices have gone up $10k since we started....

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    11y

    Nice progress!  Can you share the listing with us?

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    @Jon Klaus  Not sure if I am allowed to share the link here, but here it is:

    http://wrar.rapmls.com/scripts/mgrqispi.dll?APPNAM...

    MLS #516330 1517 Searay Ln. Carolina Beach NC 28428

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    11y

    I still struggle with whether or not to pre-list. Currently we wait until they are finished, but have pre-listed.  So many buyers don't have the vision for the finished home.  Are you getting inquiries?

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y
    Originally posted by @Jon Klaus:

    I still struggle with whether or not to pre-list. Currently we wait until they are finished, but have pre-listed.  So many buyers don't have the vision for the finished home.  Are you getting inquiries?

     I typically would have waited until it had drywall, or at least was framed like it is now, but this was my first and I was anxious to gain traction so we pre-listed. Yes, I have had a good amount of interest and feel like I will have a contract before it is completed. 

  • Contractor · washington, Washington D.C. · Member since 2011 · 204 posts · 64 votes
    11y

    Great story Keith I think by you getting down sized was the push you needed to get you in the game alot quicker. My self when I started was a project manager for a construction company and when I got my pink slip it caused me to go into  my construction company 15 years ago. The area is real nice on the costal Beach me and my family go on vacation there every year and spend about a month down there vacationing.I did look at some of the lots while I was their and thought it was a good price point to do a build . I also went into the wimimgton area I saw some good deals.The price points were great and I did not have to stick a ton of money in those area to make me a good return. I look at three area one being a high one being a mid high and one being a low. The high was on the beach a few lost a year ago a few were going for 100k to 150K  and the mid high looked at a few fixer uppers in there historic district in wilmington I think on market street saw some ok deals. I also saw the low but surprise had a good return rough area I think near  creekwood never will for get  the area but bottom feeders dream on property. Will make contact with you when we come down and sure I will get something this time.Please keep posting on your progress you have alot of people doing and going threw the same thing you area which you luck and great plan.

  • Contractor · Carolina Beach, NC · Member since 2014 · 157 posts · 89 votes
    11y

    Great news this weekend. The three lots I have had under contract (for over 3 months) were finally cleared to build on by the Army Corps Friday. On Sunday I received an offer to purchase a house on one of those lots. It's the same house I am currently building, they just were insistent on their home facing east. 

    Either way, my first house is under contract, full price offer with a few thousand in upgrades. Makes everyone happy!

  • Greensboro, NC · Member since 2014 · 212 posts · 143 votes
    11y

    @Keith Bloemendaal  awesome! Congrats

  • Investor · Chesapeake, VA · Member since 2011 · 47 posts · 15 votes
    11y

    @Keith Bloemendaal  Congratulations on your contract. Happy to hear all is going smoothly now. I'm sure everything will move along quicker as the weather and spring/summer buying season picks up. I think your timing with these lots/homes will work out great.

  • Flipper/Rehabber · Sugar Land, TX · Member since 2015 · 142 posts · 64 votes
    11y
    Originally posted by @Keith Bloemendaal:

    Great news this weekend. The three lots I have had under contract (for over 3 months) were finally cleared to build on by the Army Corps Friday. On Sunday I received an offer to purchase a house on one of those lots. It's the same house I am currently building, they just were insistent on their home facing east. 

    Either way, my first house is under contract, full price offer with a few thousand in upgrades. Makes everyone happy!

     WOW Keith...

    Good to see you rocking and rolling man! And with the 3 lots approved to go and 1 of them under contract, that officially makes you THE MAN! Great job!

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