Building A New House With Cash Money

 
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Old 11-15-2014, 06:38 PM   #1
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Building A New House With Cash Money


My son in law is wanting to build a new house with cash.
we live in the Cincinnati area.
I am wondering a average sqft price for construction and expected saving by paying in cash 100 dollar bills.

also does anyone have a spreadsheet for estimating cost.
we will do most of the work ourselves except for the usual HVAC, Elec< Plumbing and drywall.
any pros or cons in using cash?

Thanks
Jeff
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Old 11-15-2014, 06:43 PM   #2
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Re: Building A New House With Cash Money


Not to get in your business, but how did he get together that much cash?

No way to help you estimate costs in your locale.

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Old 11-15-2014, 06:52 PM   #3
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Re: Building A New House With Cash Money


it was left to him by his grandmother. more than I could spend.
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Old 11-15-2014, 07:26 PM   #4
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Re: Building A New House With Cash Money


dont see much in savings by paying cash. unless someone is willing to try and skirt the feds, their expenses will be the same.

price per sqft varies depending on area.
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Old 11-15-2014, 07:27 PM   #5
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Re: Building A New House With Cash Money


I don't think hard currency is going to change anyone's operating costs, but who knows?
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Old 11-15-2014, 07:35 PM   #6
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Re: Building A New House With Cash Money


I think the only cost savings would be on interest paid out to the banks from a mortgage. Like others have said I Don't think your going to get a cash price from a contractor.
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Old 11-15-2014, 07:37 PM   #7
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Re: Building A New House With Cash Money


Not trying to be a goody two shoes on a soap box, thats not my bag. But if your son in laws grandma left the cash in a bank account and he is planning to build it cash to get a discount, it'll be a bigger pita than its worth imo.

If she left it in the back yard, and he doesn't intend to report it, making a big cash purchase would be the wrong way to go id imagine.

IRS is one bull I dont intend to lock horns with.
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Old 11-15-2014, 07:41 PM   #8
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Re: Building A New House With Cash Money


This line of thinking translates to ....how cheap can I build this for?

Low end materials, sub-grade lumber...

But, yes you can build a very cheap house with cash.

You will likely be dealing with illegals, guys who over inflate their abilities and pretty much unlicensed hacks.

Quality will be way down, mistakes & thievery will be through the roof.

Probably save a bunch shopping out of the trunk of a guys car also...

However, where cash can save you a tremendous amount of money is not having any carrying costs. This will amount to a huge savings.

Stick with legitimate pros. The quality, efficiency & piece of mind can be priceless...
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Old 11-15-2014, 08:12 PM   #9
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Re: Building A New House With Cash Money


not looking for cheap. and not hiding anything.
if you get a couple million handed to ya you want the best you can get for the money.
We will do most of the work ourselves
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Old 11-15-2014, 08:14 PM   #10
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Re: Building A New House With Cash Money


I know no one wants to admit it, but it does happen, even with legit contractors. A buddy of mine did it several years ago . He had green for about half the cost of the house, construction loan for the rest. He saved quite a bit, especially with the excavator, all legit companies and one of them pretty large company paid about 25g's. I would imagine all materials he paid for on the loan and who knows he didn't do all the work he could legally do himself...
I was showing a new 200k house this year to some oriental people of some sorts that could barely speak English, they felt the price was a little high, the lady looked at me and asked how much if we pay cash!!
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Old 11-15-2014, 08:18 PM   #11
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Re: Building A New House With Cash Money


cash is king and I've been in this business for 30 yrs and know many that will discount for cash.. Cash is King...
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Old 11-15-2014, 08:23 PM   #12
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Re: Building A New House With Cash Money


Quote:
Originally Posted by bodean614 View Post
cash is king and I've been in this business for 30 yrs and know many that will discount for cash.. Cash is King...
You need to read post #8
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Old 11-15-2014, 08:26 PM   #13
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Re: Building A New House With Cash Money


Buy silver with the cash. Get a mortgage for the house. Don't forget your foil cap.:sly:
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Old 11-15-2014, 09:05 PM   #14
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Re: Building A New House With Cash Money


I would ask for that money to be placed in an escrow acct. with a non biased person in charge of draws.
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Old 11-15-2014, 09:18 PM   #15
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Re: Building A New House With Cash Money


Quote:
Originally Posted by overanalyze View Post
I would ask for that money to be placed in an escrow acct. with a non biased person in charge of draws.
Was just about to say the same: Find a title company, do an escrow build.

Found money always, always has a way of sliding thru the fingers VERY FAST.

Might as well spend the money on new wood as anything else tho...
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Old 11-15-2014, 09:26 PM   #16
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Re: Building A New House With Cash Money


So the real reason why he thinks paying is cash is better is _____________

I wouldn't recommend actually answering that question on a publicly available site like this but.........
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Old 11-15-2014, 09:48 PM   #17
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Re: Building A New House With Cash Money


Quote:
Originally Posted by bodean614 View Post
cash is king and I've been in this business for 30 yrs and know many that will discount for cash.. Cash is King...
You have been in this business for 30 years, cash is king and you have estimating as one of the things you do.

Just wondering why you're asking this question when you should already know the answer.
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Old 11-15-2014, 09:53 PM   #18
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Re: Building A New House With Cash Money


I know the answer just wondering what percentage everyone thinks can be saved.
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Old 11-15-2014, 09:59 PM   #19
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Re: Building A New House With Cash Money


I would be surprised if it was more than 10 percent.

Better ways to save money building a house than just trying to get everyone to discount it for cash.
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Old 11-15-2014, 10:21 PM   #20
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Re: Building A New House With Cash Money


Pick subs that have quality and speed in which you pay them in a timely fashion can often make the cash job a priority as many builders postpone payments.Years ago the gov was talking about doing away with paper as they are losing billions of dollars each year to people doing cash deals.They try to combat this when they introduced an extra sales tax.Do they like paper no-the people do.

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