Real Estate Agent Turned GC, Tips/pointers??

JTC

Hey guys, this is my first post here and was hoping to get some help from the knowledgable folks on the boards.

A little background, I am a real estate agent in Washington State. About a year ago I had a couple lucky finds and picked up some 5 acre tracts of land for a great price. I decided to build a SFR on one for resale as well as a duplex on the other piece with the intention of keeping half the duplex for a rental and selling the other half.

Basically I used my friend as the GC even though I took care of alot of what would normally be his work. I paid him an administrative fee for handling portions of the buildout.

I have now found some more lots I would like to do the same thing on only this time I want to be the GC and handle the whole project. He is around to help me if I need it and is a great guy but I feel like to learn the process and become effecient I should handle this one the whole way.

My question is can any of you recommend some good books or classes I could take to streamline the process and allow me to learn enough to feel like I am one step ahead instead of two steps behind.

thanks for any insight/help guys!

Tabb

Cole

www.buildiq.com

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JustaFramer

What up brother? Check out craftsman-book.com. Where you at in WA. If you need a Carpentry sub let me know I can throw you some bids.

JTC

Thanks Cole and Justa,

Justa, I live in Monroe right now but am moving to the Greenlake area shortly. One of the projects is in Everett. I will keep you in mind when I get ready for some bids. One of the projects is in your neck of the woods (Everett)

Thanks again!

Tabb

JustaFramer

Cool. I work the sno/king area east and westside so I am flexible.

Teetorbilt

You will always be 2 steps behind, it comes with the territory. There will always be bad weather, late/damaged deliveries, broken equipment, sub screwups, on and on. Buy stock in PeptoBismal and have them ship the dividends to you.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

ConcreteGuy

My head is spinning...but it always does that. Ask yourself how many General Contractors want to get into Real Estate. Not many because they are specialized and demanding endeavors.

I could have great contractors like Justa and Teetor but I will never be their only customer. There will be days when they have to blow me off because they have a business to run. That is, even if you line up the greatest contractors available, you will have to be in constant communication with regards to readiness and doing the "squeaky wheel" thing when you are desperate. The ironic thing about GC'ing is that you need successful contractors, yet you want them to treat your work as though it was the only thing in town. Now imagine your bottom-line pressures creating a sense of urgency for signing less qualified subs and compare that to my comments regarding the good guys.

If being the GC is as rough as working for one, I can tell you to proceed with trepidation. To me, it is the worst job in the world. The only reason I'm doing it is because I was so busy working for a GC that I never mastered any trade skills and now it is the only way I know to feed my family, sob sob, boo-hoo for poor old gcman, lol.

I view my role as the radius point of a circle, ya know, like the old western movies' circling of the wagons against po'd injuns. All around me are the owner, the owner's rep, the architect, consultants, engineers, testing labs, my project management, my subcontractors, their project management, local authorities and their inspectors, suppliers, holes in contract buy-out to plug, my representation "the face" of my company, my presence and availability, the huge responsibility of creating readiness for work and removing obstacles for the same, and on and on.

I don't want to discourage a potential construction magnate from destiny, but don't let the apparent ease with which your friend manages the aforementioned responsibilities fool you. Like any craftsman, he prolly makes it look easy, and believes anyone can do it.

I know you have the good judgement to ask, so I expect you will continue to investigate what you propose to get into. I wish you well either way.

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A reasonable expectation becomes an assumption when it goes wrong.

noreast05

Well gcman...... to bad your in a warmer part of the earth. Seems like your services could be better of with another company. Seem like you had a bad day ... need a hug. Just because you have not had the experience outside a GC doesn't me you can't broaden your horizon. Maybe your expertise would be better off in a smaller company. Just my insight.

noreast05

I have had alot of dealing with real estate agents . There are a few select few who can pull of the GC position. The successful ones I have run into have actually swung a hammer in there life time, but that still did not give them gc rights. Most reason realtors turned gc's are successful is thier ability to sell and organize. With a good salesman the buyer will never know whether you swung a hammer or not.

Teetorbilt

Well put, GC! I often get the feeling that GC's, HO's and others think that I am just sitting around the pool waiting for THIER phone call. I once told an Interior Designer that I would have a person at her beck and call for $3,500 a week, I have no idea as to why she turned down the offer. LOL

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

noreast05

Teetor we stopped working with interior designers directly. I don't know how you guys do it. My only solution would be to put them on payroll. That way you can hopefully call the shots.

Teetorbilt

I put them on T & M. With all of their constant change orders, it's the only way to do business with them. I do quite well with them.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

ConcreteGuy

Hey Noreast, I'm way too old to learn a craft. My job is to know a little bit about a lot of things, with a dose of common sense, and to coordinate activities.

Yeah, Teetor, I try to respect the business side of subcontracting. What I hate about my approach is that it often leads to contractors abusing my sense of fairness. It gets so frustrating at times that I find myself behaving like the proverbial bad general contractor you despise.

I think it is a vicious cycle. Subs overcommit and GC's overexpect. Nobody is honest because that requires more effort than you are capable of, that is, to do as you say you will do.

Such is the life. Sheesh!

__________________
______________________________________________

A reasonable expectation becomes an assumption when it goes wrong.

Teetorbilt

GC, I despise few. I do my best to roll with the punches. In my biz. you have to. It's almost comedic. One day I'll post the current job. Name everything that can possibly go wrong and it has. Too funny!

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

ConcreteGuy

Roger that.

calchick

This is really cool. You are on the right track. You can do it all, without the help of a GC, but thats about all no other kind of life. Take your time, ask questions, line up your key people ( the highest paid ) let them know that your building more than one, better pricing. Scheduling start one and estimate how long and how much stick to it.

Id like to get into real estate myself. Like appraisals or ?

mdshunk

That trick doesn't work with me anymore.

GC: "Price this out based on 4 identical units"
ME: "Okay.."
GC: "Hey, the investors didn't come through, so we're only doing one right now. Same price, right"
ME: "Right "

noreast05

OK...........



I agree with MD. I've seen to many times.

trimgod

tabb is an outdated softdrink from the 70's. leave the homebuilding to the pros, if you want my advice start small, build sheds, dog houses, etc. work your way up the ladder like the rest of the pros, p.s. dont forget your pee-pouch

Chuckman

I agree a good pee-pouch is your best friend in the field