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Sean
You are starting down a road I went down 8 years ago. Let me say that if you can make a comfortable and reliable living building there is no finer thing to do. I started on the spec route and I can give you some tips.
First, if you have a wife, make sure she keeps her job with benefits. Second, make sure tha you have the credit and the assets to borrow at least $250,000 because you will need to build more than one house at a time. also you will need to have at least $40,000 In cash to take care of cost overruns and to bridge some draw payments and to pay interest. Sometimes a very well built house in the right location at the right price will sit unsold for many months for unexplained reasons. Be pprepared for this.
In many areas of the country lots are getting hard to find for a spec build. Large builders are making all of the new subdivisions for their own use. If you have the assets or partners to do your own this is the way to go. Today people buy the neighborhood befor the house.
Specs are the fastest way to get in the business, but the riskiest. Don’t let anyone tell you that access to working capital is not vital in this business. Good luck!
P.s. I am getting out ofconstruction, can’t take it anymore.
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For the past few years I have been learning about residential construction through both hands on and academic avenues. My ambition is to become a quality home builder. Some say that the best way to get into the pool is to just dive right in, others say it's easier to slowly slip in. I am more in favor of jumping right in and start things off with a spec build. I would be more than greatful for any comments or advice from those that have already traveled down that road.
*How many years are a few? You might want to consider getting in with a smaller contractor doing one home at a time or so. work for him for a "few" more years. This way you can have a hand in most all of the aspects of home construction.I think for you to "jump" in to home building may not be the right way at first for most likely you will encounter a million little things that you never contemplated. Heck, I've been at it all my life and I still learn something new on occasion. It never fails.. just when you think you know it all, something proves you wrong.You can get your butt in a sling if you move too hastilly. Besides physically building a house, there are so many other aspects you need to be familiar with such as finances/costs, contracts, products, scheduling, etc, etc.... If you really want to get your feet wet, try starting out with some smaller projects like garages or small additions perhaps. This way you can get the feel for it while building the job from start to end.Let me know how long you've been at it so far, how old you are and where you're from. Just curious.Good luck,Pete Draganic
*Sean,take Pete's advice make sure you're ready.Whatever you build is there for the world to see.It's the start of your reputation as a builder,you said you want to build quality homes this takes time and experence.Everyone has to build their first house sometime,make sure It's something you can be proud to sign your name on.Vince
*Unless you've hit the lottery and can buy your way out of messes I don't know about diving right into spec houses. I'm not a "builder", but I think that the remodeling route would be an easier way in. It would also teach you a hell of a lot about houses, how they are built right and wrong and what time does to them. I feel anyone can put one up square and plumb,although most don't. Dealing with other peoples mistakes is fertile ground for figuring how you would do it right if you had the chance. It may also let you get a little capital and contacts to make the spec work easier.
*Sean You are starting down a road I went down 8 years ago. Let me say that if you can make a comfortable and reliable living building there is no finer thing to do. I started on the spec route and I can give you some tips. First, if you have a wife, make sure she keeps her job with benefits. Second, make sure tha you have the credit and the assets to borrow at least $250,000 because you will need to build more than one house at a time. also you will need to have at least $40,000 In cash to take care of cost overruns and to bridge some draw payments and to pay interest. Sometimes a very well built house in the right location at the right price will sit unsold for many months for unexplained reasons. Be pprepared for this. In many areas of the country lots are getting hard to find for a spec build. Large builders are making all of the new subdivisions for their own use. If you have the assets or partners to do your own this is the way to go. Today people buy the neighborhood befor the house. Specs are the fastest way to get in the business, but the riskiest. Don't let anyone tell you that access to working capital is not vital in this business. Good luck! P.s. I am getting out ofconstruction, can't take it anymore.
*Pete, I am currently living in Calgary, Canada. I am 24 with many years of learning and practical experience ahead. I am also finishing a two year diploma in an Architectural Technologies program with an emphasis in Building Technologies at a technical college. I have also spent my summers doing work ranging from stucco wire, roofing/siding, painting as well as framing. I feel that as I intend to hire subs for all work it is essential for me to understand but not nessesarily be proficient in all aspects of construction. I agree that the administrative aspects of construction, esspecially residential, are critical to the success of the small builder. This is one of the biggest reasons I am currently a student, it certainly isn't the income :) I am however looking for additional resources which may help better prepare myself for the real world. I think that your suggestion of working a few more years with someone already having been in the industry would provide me with some excellent experience and is certainly an avenue which is also under consideration. Thanx for your thoughts, Sean