All Forum Posts by: Patrick Philip

If I'm having something built by a General Contractor, how can I make sure that no subcontractor (mechanic's) liens will come up? Is there wording in the contract that we can use to make sure this doesn't happen?

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Originally posted by @Greg Dickerson:

It may appear that way but it will save you money in the long run. You can never build as cheap as you think you can on your own and it will take you way longer. Also you would have to get a license, insurance, and warrenton the houses for years after they are built.

Your time is better spent finding deals, raising and capital. That’s how you scale and build real wealth.

Unless you are going to start a construction company and hire seasoned experienced superintendents to run the projects you should hire a GC.

If I can only sell something for "x" and a builder is only willing to build for "y," then there has to be a big enough spread between x and y for anything to work. That is the problem I need to solve.

"Finding deals" to build houses is as easy as hopping on Zillow and searching for vacant lots.

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Originally posted by @Greg Dickerson:

Your time is better spent finding deals, raising and capital. That’s how you scale and build real wealth.

Unless you are going to start a construction company and hire seasoned experienced superintendents to run the projects you should hire a GC.

That still doesn't solve the problem of them charging too much. If there is not a big enough spread between what they charge me to build and what I can sell it for, then I can never make a profit.

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Originally posted by @Greg Dickerson:

Patrick,

There is a lot to learn in the business. You definitely want to hire a professional and reputable GC to do your projects for you. You want to be the developer as becoming a builder has a huge learning curve. You can either find a mentor to teach you or partner with a successful developer but you will need to bring something to the table for that scenario.

I've found that most GC's charge such a high price per SF that it makes the projects not profitable.

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What tricks of the trade can you give? I'm going to start building SFH and then probably condominiums. I don't really want to hold and rent anything even if I could refinance and get everything back.

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Originally posted by @Greg Dickerson:

Hi Patrick,

You can hire a management company to handle the HOA for you until you sell all the units. Once you sell the last unit or some other specified timeframe the HOA responsibility as decelrant is over and everything is turned over to the community and your out. Every state is different so check with a real estate attorney in your area and they can tell you spefeics.

I've been reading that the management of the HOA usually takes place when 51% of units are sold.

How am I supposed to trust a bunch of strangers to make competent managers, treasurers, etc.?

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Aside from drafting all the bylaws of the condo association and the construction itself...

What is involved in the continuing operation of the HOA? Ideally, I would want to have it built, sell all the units and then have nothing to do with it after all the units are sold.

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Originally posted by @Adam Stonestreet:

Never wait. You can update the listing as you go, and you can generate virtual images in the meantime with an architect. Why not take advantage of the extra time to find someone?

Do I let potential buyers visit the construction site?

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Should I list it a few months before construction is done? Or wait until construction is finished so I can have good pictures, etc.?

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For example, if a house is 5000sf, that will appeal to less buyers than an 1800sf house. At what size square footage should I expect the Days on Market to increase significantly?

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All Forum Posts by: Patrick Philip

Patrick Philip has started 262 posts and replied 908 times.

Post: How to avoid subcontractor liens?

Post: Any developers here?

Post: Any developers here?

Post: Any developers here?

Post: Any developers here?

Post: What's involved in building new condos?

Post: What's involved in building new condos?

Post: If I'm building a home, when should I list it?

Post: If I'm building a home, when should I list it?

Post: At what square footage do houses take much longer to sell?