All Forum Posts by: Eric Teran

@Mark Cruse and @Russell Brazil both of you have been playing this game for a while so I am sure you have the right relationships. I can tell you the bids I see a homeowner get compared to a developer/investor is significant. It also depends on the neighborhood. My Capital Hill and Georgetown homeowner clients pay significantly more than clients further north in DC like Petworth or Brookland for roughly the same project. Contractors know that certain neighborhoods have homeowners who make more money and are willing to spend more. A Capitol Hill client just received a bid for a cellar condo conversion for $180k! The lowest bid from four contractors was $100k. 

A full gut rehab is not expensive as long as it is all finishes. Once you start to do an addition, add a foundation, drop a slab, reconfigure the existing structure, and so forth is when the price starts to jump significantly. I agree with both Mark and Russell that they are getting those prices for a single-family gut but it will be extremely hard for a beginner to get those same prices on their first project with no relationships. 

@Mark Cruse my ballpark figure is for people just starting out. As @Arthur C. mentioned I was talking about a full gut where the slab has to be dropped, a third-floor pop-up, stairs reconfigured, all new utilities, and so on. I do have clients who have been developers for a long time and they have their own team in place and can do these types of projects for much lower than a beginner. They either have a GC who knows that they will get more projects from them and be paid quickly or they have their own crew and do not need to pay a GC. If there is no GC it can be done for a lot lot lot less. 

If @Muju Hussain finds a property and teams up with a developer who has his own team that may workout as well. Less return but a lot less risk and a good way to learn.

@Muju Hussain as an Architect I have helped numerous clients (developers and homeowners) in the last few years in DC and it all depends what you want to do. If you are in an RF zone you can create two dwelling units. If you are in a R zone you can creat an ADU. Both have pros and cons and different budgets for numerous reasons. You can also keep it as a single family residence.

Most basement separations that create a separate dwelling unit will be between $100k to $175k This is only the basement. There is a big range because it depends what needs to be done. Also, contractors are not hurting for work so they price everything higher.

For a third story pop up you are looking at another $100k. Maybe more if the structure needs to be upgraded. If you want a full gut, a unit in the cellar/1st floor and another on the 2nd/3rd floor it will easily cost $300k to 400k.

Once you establish some relationships then the soft cost will come down and the GC will be willing to make less profit on a job because they know another one is coming. However, that first project will be a pretty penny which is why it all depends on the price you buy the house.

You make your money when you buy the property.

@Mindy Jensen I appreciate the BP team getting this started. I read a few reviews and they were very detailed. How local can we go on our request? Can it be a lender or realtor or contractor, etc. that is only specific to a certain region like the DMV or LA Metro area?

@Marcus Olsson un I see this question a lot in the form. It is impossible for anGC to give a good estimate with no plans. There are so many questions and parts that it is impossible. For example, will the construction involve steel, are the appliances Wolf, what type of HVAC system, how many bathrooms, and so on.

If you want a very rough estimate look for contractors who have worked in that area. They may be willing to give a range like $1 - $1.5 million because they are familiar with the structures in that area. The other option is what @chris mason suggested and pay a contractor. You can tell them if they win the job to give you the credit on the tail end of the project.

@Ryan Mainwaring I'll add to the civil engineer's comment. A firewall is not technically rated unless it is called out as being rated. For example, in a hotel, I worked on we had numerous CMU walls. However, we only labeled a few of them as being 2-hour rated on the permit plans. Since we did not call out the other CMU walls as rated then they were not legally rated. Additionally, the same built wall was 1-hour rated in one location and 2-hours in another because that is what we labeled it as in our plans. 

A fire-rated wall is all about the entire assembly and where it is located. For example, a 1-hour rated wall has a 20-minute fire-rated door. The logic is that at a wall lots of items can be stored against it so there is more fuel. At a door, there is nothing in front of it so there is not as much fuel for the fire. Now you know. 

Finally, a brick veneer is not used for fire-rated walls. I believe it may be due to the air space behind the brick and the house structure. If it is a structural wall made from brick then it can be counted as a fire-rated wall. If the brick veneer is not included is a UL or ASTM or another agency listing then it isn't technically fire rated. 
 

@Sonam Gill you should be fine if you just add the note that states fire separation walls to folllow UL 263. If he told you to have an architect or engineer sign and seal the plans then you need one of us. If not try it yourself and see what happens. He might have suggested for you to consult with an architect because not all UL rated assemblies work for every scenario.

@Tyrone Marson everyone wants their piece of the pie. On your first project, you are not going to get a great deal. They have never worked with you and don't know what to expect and this may be just one project. They will try to do a great job to get another project from you and then probably lower their price but in the first one, it will be hard to get a great deal. Unless you partner with them. 

For example, I have had potential clients ask for a deal on the first project and that they promise to give me more jobs in the future. I tell them, pay my normal fee on the first project, and then I will lower my price on future projects if we are a good fit. I have some developer clients that want to see 20 options for a kitchen. I can't lower my price for them because they consume lots of my time. Other developers say yes to everything in the first option so then I know that I can lower my price on the next project because the developer knows how to make decisions and not waste anyone's time. 

The Contractors I recommend do not rip off my clients or I wouldn't recommend them. They earn a fair percentage. When you have a project size and style in mind I'll be happy to recommend one. I have one that only does million dollars plus homes in NW and he is expensive but amazing. I have a few that work anywhere and do nice work but I wouldn't recommend them for a million-dollar home. I have one or two in NOVA that do nice work but only for medium size projects. Some work better with homeowners and others with developers. Luckily I have gotten to know some Contractors that I like. 

@Christine Lai so Contractors are not really LEED certified. They build what they are told to build. That is why there are plans. Some do it better than others but that has nothing to do with a “green” building. For example, you can buy a toilet from Home Depot that comes from China. That is not environmentally friendly. You need to buy a toilet that is manufactured within 500 miles of the project site to be considered environmentally friendly. There are many categories but the point is you can’t just tell someone to go buy a toilet. You have to tell them from where.

Most small projects there is no need to go to crazy. The big factors are insulation, windows/doors, light bulbs, leaky faucets, and the right sized mechanical equipment. Start there and you are going in the right direction.

In addition to some of the other site recommended check out Building Science. There is a lot of good stuff and when a contractors tells you, “this is how we have always done it” then you can tell them they are wrong and back it up.

Good luck.

@Tyrone Marson what do you mean by investor friendly? I’m an Architect and have about 5-6 GC in the DMV area that I like to recommend to my clients depending on the type of project and your budget. Give me some more information and I may be able to help.