This is really informative video on home builder, I have recently bought a lot and I want to build a single family house. I will buy the course and look forward to it.
I asked general contractor here in Duluth, MN about how much it would cost me to have a house built and he said about $350-400 per sqft. It's unbelievable to me that it would cost upwards of $400k for a 1000sqft house, not including the land.
Hi Keith, I'm so GLAD I found your video! This is very helpful! I just became a new real estate agent but what I really want to do is to be a homebuilder. The house market is very strong now, but in our area (Northern Alabama). Quality custom homebuilders build 2800+ sqft homes mainly on a designated subdivision with $450k more. Regular mass production homebuilders build 1700+sqft homes with 280k more. The new houses are bigger and bigger, and builders don't have time to have customers pick and choose what they want. Also, homes lack characters. I want to help families to be homeowners but the used houses here are on market in an average of 8 days and a lot of escalation happening.
That's a great plan. Take your time, study, and work moment to moment toward that goal. See more at howtobuildyourownhome.com. A more robust and better site gets launched jan 1st.
@@jj25945 Yes. As an educator and an organized builder, it brings the best of both worlds together, easy instruction and informative, all you need to replace a general contractor. See howtobuildyourownhome.com
Great video, however it was a little too basic on the information. I’m a commercial contractor (retail) who wants to by land and build my dream home, but before I head to the bank I wanna have all my ducks in a row. I bank with Chase - what exactly will I be asked to provide? What about tax return information, gross income and/or net income, P&L (because I’m self employed), debt to income ratio, etc. Please make a short video for me and others who may have the same questions on how to be better prepared. Finally, if approved for say 300K, I’m sure the bank doesn’t just deposit 300K into my checking account - how does it work, are there draws throughout construction for material and subs? Please help me and other with this information, thanks.
This was awesome and straight to the point. Do you have videos on loan types for first time owners who want to build? Are there benefits for first time owner/builders? Thanks man
Depends on your area and where you want to build. I always trust local credit unions, then regional banks. I just say shop around. You will find what you need.
Hey Keith, have done a video on insurance? I'm trying to figure out what type to carry as we have some great subs who are not individually insured and our GC consultant doesn't want to work with us unless we have them covered.
Pros are save on the realtor fees, builder profits, GC salary, material markup, labor markup, unnecessary extra square footage, unnecessary additions, marketing costs? The cons are the liabilities, rework if subs don’t do a good job, your time, some project management skills, some understanding and probably some experience with construction etc.?
Can you shade light on budgeting and how to connect with contractors and trades? Where do you announce your upcoming new project so that you will be able to collect some bids for your project.
Announce it on site, get a sign up fast with all your contact info so subs can reach out. I may do a post on this asap. To be honest, I get about a dozen new sub contractors who reach out to me every few months just with my sign up.
What about profits? The builder is going to want to make profits also, so it would be minus realtor fees gc fees and profits so it would possibly be less than that. But then in some instances you would have add impact fees, county fees and the cost for the architectural drawings.
Can obtain the same discounts on lumber, flooring, etc as builders get. How difficult is it to find subcontractors willing to do one off projects versus working more steadily with a builder?
That's a very old video. It is not the First Steps Course, and it is $49 dollars. If you get the Self Managed Course, it includes the First Steps Course.
Hey Keith, hoping you see this and have the time to answer. What do you do when the sub you hire is doing sloppy work? Assuming you check references and vet them but they've let their quality slip. I understand I could approach them and have them fix it and or fire them, but was wanting your experience and input. Thanks in advance and if not no worries keep the videos coming.
Jacob, I am curious. was this sub the lowest bid? Second, what is the sub contracted to do? This info would be helpful. As a general rule, if there is a huge list, then I give the sub this list of things to correct. Hold funds until the work is done. Never give a full check until work is done. Subcontractors do slip. I hired a painter who was top notch in his day but recently had a stroke and he really cannot perform the job anymore. Finding a great sub is harder than finding a good price. This is why I teach to focus on quality, then time and finally cost.
Interviewing builders now in Seattle WA. First guy wants 23% fee on a 1.5 million house. Is this acceptable? That’s around 350K…. I think it too much am I insane to think that?
You are not insane, that builder is not one you need. I do not charge more than 15%. If the build is outside my build area I may jump to 20%, but only because they want me and I need the extra cost for the headache.
and few more :get ready to fork out more then allocated loan out of your pocket, know what you are paying for or subs will eat you up (actually your money), never ever sign any contract without finish date! and the list may go on and on...
See my First Steps course at howtobuildyourownhome.com. Module 3 has a detailed formula to help you determine real cost per sq ft to build in your area.
He’s telling you how to estimate what you can build a house for so once you find a new construction home take that price and subtract the realtor fee and GC fees cuz those are built in the new home price. You don’t pay a realtor and GC if you build yourself
I own my lot I qualify for 325k loan what do I need to do to qualify for the banks builder program they want proven tract record of contracting experience I’ve been a carpenter for 20 years
Show them work you have done. Indicate value in dollars of work you have accomplished over that time, site jobs you have managed, give them a resume of work experience in the trades. See howtobuildyourownhome.com for more help.
It depends on market area, how you handle them when you first meet etc. If owner builders are tire kickers looking for the lowest price, they will not get subs to bid.
