All Forum Posts by: Sue Hough

Hiring a good general contractor is key to the financial success of a project.  I would assume your brother is fair in his pricing and will have the success of the project top of mind.  Having said that, you should pay your brother a fair price for his services.
I have done multiple projects where I was the GC on joint ventures and always charge a fair market price.  Unless you are volunteering your time and services equal to that of your brother, he deserves to be paid.  Why would he lose other money making projects so he can devote his time and experience to this project, all the while making sure it is successful?  Unless you would not be hiring a GC to do this project and it is small enough where both of you do equal work, his role as a GC needs to be compensated.
Good luck,
Sue

@Derek Peterson hope this can help;

I have been in a similar situation and once I started adding the cost of “missed rent” to the project, it no longer was less expensive to do the work ourselves.  Hoping if you include this real expense to the cost of the repairs your friend he will see that quite often doing it yourself is more expensive than hiring out, not to mention a roofing company will include a warranty which is a value add.

Good luck and have a great day!

Sue

Hello All,

What an interesting question.  After having the honor of speaking at the Bigger Pockets Conference in Nashville this fall, I suddenly realized I am older than most of the attendees.  At first I was a bit taken back and felt "old", then I realized being older (not old) is to my benefit.  So here is my response, as a seasoned investor;

My 20's; were spent running and moving quite a bit.  My body was in peak condition and my stamina was at an all time high.  This is the time when I firmly believed I could change the world and it would be done in a few years because I was just that good at life.  I spend endless hours working hard.

My 30's; I spent figuring out how to get my mind and body to work together.  I started to think thing through more carefully and slowed down physically.  I started to focus on my people skills and working cohesively became prominent.  During this phase I realized the importance of delegating.

My 40's;  This was the most defining decade in my life.  My mind had enough information and experiences which allowed me to change my work role from physical to intellectual.  I became a strong business woman and began forging valuable relationships.  This is the time I realized people and how we related to one another became the most important aspect of business, and life.

My 50's;  So far this is the best time for me.  I don't want to or need to rush through life. I realize mistakes are opportunities to grow NOT a definition of any perceived failure.  I love business and replacing intensity for growth is far better.

Hope this gives you another perspective,

Sue

Nick,
Good luck to you, your brother and his co-worker.  I have never (for more than 10 minutes at a time :) looked back at my decision to form my own company in construction.  It's a tricky business, but your brothers model of starting small and growing organically sounds great.
So far as your questions;
I am an S-Corp for tax purposes and I include myself on payroll, which is a great benefit.
Renting machinery is far more expensive, but if you do not have the ability to purchase at this time, it is a viable alternative.  Just make sure your budgets include this additional expense.
I use a separate UPS mail box, which comes with a street address.  The expense is about $100 per quarter.  This keeps my business and personal life defined.  The UPS store can also accept packages, a great bonus.
Marketing; social media and build a strong networking group.

Good luck to you!!
Sue

I Love what @Greg M suggested!

I am very excited to offer this MeetUp group.  It is for Real Estate Investors who want a rare and exciting opportunity to take part in the hands-on construction of a new home! This thrilling hands-on learning experience takes us from excavation to the final punch list. We will be following the progress by meeting every other week at the job site then following up with discussions, learning, sharing and coffee. This is an unparalleled opportunity which will give you the secrets to grow your profits and learn from an experienced residential general contractor.

I hope you can join us and feel free to reach out to me with any questions you may have.  Hope to see you there!!

“Balloon”  is referred to a style of framing which allows open cavities from the top floor all the way to the basement, eliminating the lumber in between.  It was very common prior to 1930 in part due to the fact it allows heat to travel from the lowest floor up  when homes were relying on single boilers in the basement or small fireplaces on each floor. It is less expensive, although it’s not allowed in the Chicago market because it does pose  a higher spread of fire,  due to the fact there’s nothing between each floor preventing the fire moving.

 Good luck, 

Sue Hough

@William Coet I think our current housing growth would make it very difficult to achieve construction even close to $100 per square foot.  Having been a General Contractor in the Chicago market for over 15 years, we are experience a large labor shortage and the numerous and ever changing tariffs are driving material prices up.  Currently, I am experiencing prices for new residential construction at mid-level finishes with full basements between $180-$240 per sq ft. 

Matthew Permian’s prices are a lower due to the number of units and, based on the size, I believe it is a commercial building.  The taller you go with a building the lower the overall square footage costs for the following reasons; the foundation is smaller proportionality to each unit, the roof covers the same square footage irregardless of the amount of floors beneath it, permit costs are less at that level, framing becomes much simpler as well as plumbing.

Please be careful of soliciting workers who are out of work or do not want to put in grinding hours.  There are usually reasons for out of work construction contractors in this climate and they are not good for you.

Good luck,

Sue Hough

Congratulations to you and your wife!  It is a beautiful project and I wish more people would share your patience.  Well done to both of you and good luck in the future.

Sue Hough

Kevin,

Welcome!  The Myrtle Beach area is a haven for vacation rentals.  The new “Glamgrounds” are wonderful.  I am working on a project about an hour from Myrtle Beach and we are catering to vacationers and will be offering Tiny Homes, elaborate Tree Houses and some split log cabins.  

In my option, if you start with something more economical and less restrictive to build, such as Tiny Houses and Air Stream campers, I think you can be on to something good.  South Carolina has been very reasonable with their building codes especially sprinkler systems.  They only require sprinklers in permanent structures over a specified square footage.

Good luck to you!

Sue Hough