All Forum Posts by: Kevin Martin

@Manolo D. & @Michael Keller  The $65k/per s.f. (total square feet including unconditioned/non-heated areas) is very close to a true cost of construction for only Labor & Material in my area and might be a little high depending on the city, lot, and finishes. Yes, I have the numbers to prove it for those that are skeptical. Obviously this will be different across the country depending a fair amount of variables but this is what it costs in our area. This does not include profit, overhead, or anything else not directly related to the build. 

Here is the problem....most builders don't really know what it actually costs them to build. Yes, there are some great builders out there that know how to run a business and not just swing a hammer but using the whole cost/s.f. number should only be a guideline and not something to base your final numbers on. This is true for both investors and contractors. 

In my opinion the costs need to be broken into two categories on every single new construction project: Vertical Construction and Horizontal Construction. If you are building the same house over and over then vertical costs should stay relatively the same with a few small variances. The horizontal costs (development) are the costs that can really get up there if you don't know what you are doing and can vary in thousands of $$$ from site to site. 

If this builder has built this same house already and knows his "true" costs then great do a couple houses with him and see how it goes. My concern is that he starts to look at the numbers (before, during, or after) and realizes he isn't really making any money for all the work involved and jumps ship leaving you holding the bag. 

I know builder trend works well and has a lot of nice tools on both scheduling and the accounting side of building. There are other programs out there that work very good as well. You just need to find a system and stick with it. I know some guys that just use google drive/drop box, excel, and outlook and do fine as well. Just depends on what your goals are and where you plan to be in the next few years. 

@Manolo D. ouch!..... They don’t need live in their trucks. They can move from house to house as they are building. Free living expenses, and get paid as you go. Brilliant! 

@April Thibodeaux for a “GC” license in Florida you need to show 4 years experience as a supervisor on buildings 3-4 stories or more. They have residential contractors licenses for only residential projects and “Building” contractors which is limited to buildings 3 stories or less. If you have a construction or engineering degree the required experience goes down to 2 years. Another kicker is you are required to hold a minimum 300k liability insurance policy and workman’s comp to stay active and current as a contractor. 

If you dont plan on starting a construction business then there is no need for the license in residential. You can pull the permits as the owner and hire the subs as needed. There are still a lot of things to watch out for if you go this route but essentially you are playing contractor without the need for license.  

@Huiping S. I will PM you with some details. We do mostly residential as well so I might be able to help you if you can’t find anyone depending on what you need. 

I was looking into this recently as it looks very interesting. Another company I came across was LightStream that is through suntrust. Looks like similar rates, terms, and maximums as Sofi but they do make you specify what you are using the funds for that determines your rate. There is an option for home improvements which could be used for rehab costs on a property and it looks like you will get a better rate but it might be for owner occupants only. Either way all these programs are very interesting and really save you those crazy HML fees they get you on.

@Huiping S. residential or commercial? Tampa isn’t too bad compared to South Florida but I might be able to point you in the right direction. 

The answer to this question is dependent on a fair amount of factors: cost, performance, maintenance, soils, drainage, fill requirements, location, ect. ect. Both options have their pros and cons but I would focus on what is typically done in the area you are investing in. Here in Florida the difference could add up to thousands in one way or the other but it varies from lot to lot.  

@Account Closed  I draw plans and do structural engineering in Florida and everyone else on this thread is exactly right. City requirements are vastly different from state to state and even county to county. I do work all across the state and the plan requirements, design, and a whole variety of other details can be night and day Depending on what municipality you need to permit through. 

Go online and find a few good layouts/ideas you like and take it to a designer/architect/engineer and let them take it from there. Don’t buy any plans online! I’ve seen people throw away thousands on those sites. 

@Jim Macedon there is no such thing as an “investor friendly” builder as @Jay Hinrichs explained. Builders want to make as much as possible just like investors no matter who is cutting the check. The only way to get your numbers down is to pull the permit yourself and hire the subs but you need to get a super involved and I recommend you cut him in the deal and give him a bonus if he builds it quicker.

Based on what you are saying I believe the path of least resistance would be to sell the land with a “permit ready” set of plans. If it’s a good area I’m sure lots are hard to find and it might be the best choice for you. Just my 2 cents worth.