Building A New House With Cash Money

 
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Old 11-15-2014, 10:09 PM   #21
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Re: Building A New House With Cash Money


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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.
Not to mention that since NO subs worked on the house, they are clear from handling warranty work legally.

Kind of dim and short sighted thinking, but hey, he asked.
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Old 11-15-2014, 10:30 PM   #22
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Re: Building A New House With Cash Money


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Not to mention that since NO subs worked on the house, they are clear from handling warranty work legally.

Kind of dim and short sighted thinking, but hey, he asked.
Good point..if a true cash job happens and there is no paper trail...who done it?
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Old 11-15-2014, 10:36 PM   #23
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Re: Building A New House With Cash Money


Savy contractors will do a percentage in cash and the rest on the books.Subs are much more happier that way.
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Old 11-15-2014, 10:57 PM   #24
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Re: Building A New House With Cash Money


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Savy contractors will do a percentage in cash and the rest on the books.Subs are much more happier that way.
Savy or Savvy? And how do you know this?
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Old 11-15-2014, 10:57 PM   #25
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Re: Building A New House With Cash Money


So what's the CRA think about that?
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Old 11-15-2014, 11:05 PM   #26
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Re: Building A New House With Cash Money


That's what keeps job security for those investigators
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Old 11-15-2014, 11:09 PM   #27
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Re: Building A New House With Cash Money


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Savy or Savvy? And how do you know this?
His vast experience as a GC. In his previous life perhaps he was a tax attorney, because the IRS gets them all eventually. Death and taxes, they coming whether you are ready or not.....
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Old 11-15-2014, 11:32 PM   #28
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Re: Building A New House With Cash Money


This thread isn't about building cheaply; it's about breaking the law by evading taxes, not paying workers comp, and cutting other corners.
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Old 11-16-2014, 01:01 AM   #29
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Re: Building A New House With Cash Money


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This thread isn't about building cheaply; it's about breaking the law by evading taxes, not paying workers comp, and cutting other corners.
everyone would have to have comp and insurance. its not about breaking the law its about being able to pay one when done with job and not waiting on bank draws...
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Old 11-16-2014, 01:09 AM   #30
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everyone would have to have comp and insurance. its not about breaking the law its about being able to pay one when done with job and not waiting on bank draws...
I'm not buying it. You can get on your phone and transfer money in 30 seconds.
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Old 11-16-2014, 01:53 AM   #31
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Re: Building A New House With Cash Money


I don't think he is trying to do this off the books.

I think he is talking about paying a sub upfront in cash/certified check in hope of a discount.

Kind of like walking to a used car lot, buying cash can get a price slashed very quickly on a used lot.

Either way, you do sound like a complete cheap ass DB HO that posts on craigslist about needing their bathroom tiled and are paying 10 an hour, bring your own thinset.
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Old 11-16-2014, 02:32 AM   #32
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Re: Building A New House With Cash Money


What legitimate difference does it make whether I come onto the jobsite Friday with a checkbook or an envelope?
I don't offer a discount for cash and none of the quality guys I use do either. If my margin is 10% you can pay me now or in 30 days, but the price would be the same. Sign a contract to have me roof ten properties instead of one and I'm more incline to adjust my numbers over you paying me out of your wallet.
I pay cash for my rehab/flips and I paid cash for my last home, but all work is paid by a business check and is on the books and even so, waiting on draws is just business as usual.
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Old 11-16-2014, 04:34 AM   #33
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Re: Building A New House With Cash Money


It's Sunday, I'm feeling all sorts of piety. Not gonna second guess the motive here. There was a time when "Cash Is King".

However, in a day and age where so much emphasis is now on licensing and insurance and slap-happy law suits, a quality driven contractor with a reputation of good standing in the community, is far more likely to work for a "builder" of limited reputation if there is a direct pathway to payment by a 3rd party - AKA the title company controlling escrow.

Every time somebody wags a a wedge of Franklins, I'm only thinking about who already rolled 'em to snort coke, and wonder if they pass the counterfeit felt pen test.

Oh, and Yes Sir, Mr OP - if you were a builder with any standing in the community, you would already know the answer to your question, now wouldn't you?


Whoops - there went my piety...
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Old 11-16-2014, 05:19 AM   #34
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Re: Building A New House With Cash Money


Wouldn't receive any discount from me. Cash, check or card - all goes into the same account.
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Old 11-16-2014, 05:52 AM   #35
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Re: Building A New House With Cash Money


My biggest concern is this---You have set off many of my warning bells---and the warning bells will cost you either money or the opportunity to have the most desirable contractors work on your new home.

"we will be doing most of the work ourselves"---usually means "We want your ideas of how to do this job so we can do it ourselves"

A 6 month project will turn into a year and a half because you are inexperienced.

Most 'cash discount' customers have made the job so time wasting ,in my experience, that I either do not bid or add on extra for the delays I know will come.
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Old 11-16-2014, 06:59 AM   #36
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Re: Building A New House With Cash Money


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I know the answer just wondering what percentage everyone thinks can be saved.
Why would I give any discount? If I build for someone with a bank loan, the money is wired into my bank account in 1 day, no muss no fuss.

If someone is funding without a bank loan, then they mail/deliver check.

If you are talking greenbacks, what a pia. I have to count the money, worry about safety of carrying that much cash to bank, then worry about IRS. I would not give any discount.

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Old 11-16-2014, 09:04 AM   #37
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Re: Building A New House With Cash Money


While I'm making no advocation for lawbreaking, you can't beat stealing from your own company. Cash enables this perfectly.

Take a big fat wad of bills home to momma and see if you get a lecture on business ethics or a big smile as she grabs the car keys to go shopping.
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Old 11-16-2014, 10:36 AM   #38
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Re: Building A New House With Cash Money


And it happens in larger scale than home building, the cash game goes all the way to the top, not thinking so you're naïve. I've witnessed a large road paving company do it a few times with driveways.....I would be willing to bet Obama himself has accepted cash a few times
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Old 11-16-2014, 10:57 AM   #39
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Re: Building A New House With Cash Money


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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
Kind of like winning the lottery.....................
First thing most people do is talk to a financial consultant,not go on
the internet and announce it to a bunch of strangers.

Depending on your son's age and income.it could be better invested,having an income come in off the dividends,and pay a
regular mortgage for tax reasons.

Save the money over the long term,rather than up front.
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Old 11-16-2014, 11:17 AM   #40
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Re: Building A New House With Cash Money


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Kind of like winning the lottery.....................
First thing most people do is talk to a financial consultant,not go on
the internet and announce it to a bunch of strangers.

Depending on your son's age and income.it could be better invested,having an income come in off the dividends,and pay a
regular mortgage for tax reasons.

Save the money over the long term,rather than up front.
Exactly, as long as he's not the type to blow all his money this could be the best advice so far with todays rates

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