All Forum Posts by: Rogers Smith

@Joseph Dasmerces As a general rule of thumb, your lot should account for 1/5th or less of the total cost of the house. For example, if the cost to build the house is $200,000, the lot price should be no more than $40,000. As a builder, I average about a 15% return. Most of my specs sell for around $400,000, so I expect a profit of roughly $60,000. Obviously, I don't have to pay for a GC, so that tends to raise my profit over someone hiring a GC. Hope this helps.

Trump strikes again! According to the National Home Builder Association, the Department of Labor is walking away from their previous efforts to try and classify subcontractors as employees:

"In a victory for NAHB members and the small business community, Secretary of Labor Alexander Acosta on June 7 announced the withdrawal of the Department of Labor’s (DOL) 2015 and 2016 informal guidance on independent contractors and joint employment — two Obama-era documents that expanded the tests for what constitutes a joint employer and an independent contractor, respectively."

This is a huge victory for builders, and in fact vast swaths of small businesses. By classifying subs as employees, labor costs increase by an estimated +30%. Such costs can kill bottom lines, not to mention retard economic growth.

Further, if the DOL was ultimately successful in such contractor/employee misclassifications, it would open up a brand new avenue for unionization into the residential construction industry. Rarely is unionization a good thing for industry, competitiveness, and the economy as a whole.

Nice work NHBA!

 Ouch. I guess he didn't vote for Trump.

Wow, over the last 24 hours this thread has turned into a s**t storm! Again, well-done @Diane G. I would be curious @JD Martin in what discipline is your PhD? It seems you are arguing from the standpoint of the free market as a philosophy, rather than a system. @Account Closed what can I say? You seem to be a very smart fellow. Your arguments are well formed, and your delivery is crisp. I would not like to be the opposing counsel on the opposite side of the bench. Fun thread!

@Tristan Cortez very cool profile pic!

@Miles Stanley where is the property? More specifically, is it in an area prone to foundation problems? In south Louisiana, foundation problems are common. 

A hydrostatic test may provide clues to a foundation problem. But it may also provide a false positive, with the issue simply being plumbing. I suggest getting an engineer involved for foundation data, but also following through with the pipe test. Plumbing does not improve with age.

@David Dachtera I did not even consider local code. Crap, that may be a big issue. I'll look into it. I have a pretty good relationship with the parish planning department.

You're right, plywood and OSB will still be used. But the joists, rafters and load-bearing members will all be steel. It's an interesting, Erector Set kind of concept. I'll attach pics soon. 

Romex and other wiring is run through pre-existing holes in the steel through poly grommets.

You brought up another thing that I overlooked. Electromagnetic signal breakdown, radio, wifi. This could present a whole set of problems. I need to sit down with the supplier.

I really appreciate your, @John Blackman, @Karen Margrave 's inputs. BP is an incredibly helpful sounding board for such things.

I'm not attempting a paradigm-shifting idea. It's been done before. But it is outside of my personal experience. So I remain apprehensive. 

@John Blackman you're spot on with tweaks and adjustments, along with a lot of other potential issues. I'm simply trying to get my arms around the idea. Interestingly, in addition to the manufacture and framing, I believe the supplier can provide preset windows, and even water and waste water plumbing rough in.

Yes @Karen Margrave it's an interesting proposition. They ship it to the site and put it together, all for one price. As you pointed out, heat may be an issue. But my main concern is simple unfamiliarity by the subs. I'll update.

I'm being courted by a steel manufacturer who specializes in metal framing for residential construction. They cut according to plans and ship in joined sections. It sounds intriguing for a few reasons:

• No termites. This is a big issue in south Louisiana.
• Fewer mold issues. Again, considering my location.
• Better wind protection. Ditto.
• No wood rot.
• Dramatically improved fire resistance.
• Solid longevity. 50 year warranty.
• Lower insurance costs.

The pricing is roughly equal to wood framing, so it seems almost like a no brainer. I am considering using this for by build-to-hold SFRs, where I will use standardized plans on small houses. This would not work for my normal specs because of no standardization. They need to do at least 4 houses at once for the math to work.

Has anyone had any experience with metal framing in the residential space? I'd love to chat.