How Can I Get That First Home Build?

haskl33

We are a carpentry contractor and we do commercial and residential work. We like both sides however we love building homes the most. As a company we havent built one for anyone yet. Back in the day working for another contractor we built many. Any suggestions on getting that first customer? My parents were going to be the first a couple years ago but my father passed away unexpectedly.

We have built a Culver's Resturaunt with another one coming in January. We've done dollar generals, dollar trees, a pilot travel center remodel etc...

Any ideas are welcomed!

cabinet runner

Sure . Build a spec house and sell it before it is finished or be prepared to move into it until you sell it . Or offer it as a lease option and collect rent on it for a couple of years . Or use your own money if you can .

If you want to be a home builder you have to put your balls on the line .

Or if you know someone who wants a house built cut them a sweet deal other than that there is no easy way to jump into building houses right now IMO .

A smalltime builder I work for is getting ready to build a spec and had to put his personel house up as collateral even though he's been in business for 10 years . He is taking that gamble .

Banks in my area aren't giving construction/perm loans easily , in fact it is very difficult to get one . They are afraid the homebuyer will lose his job before settlement . Only giving loans on finished homes UNLESS they have 25% cash to put down . No once I sell my existing house stuff allowed .

I agree with the banks to an extent , however 10% was the norm in the past and if they hadn't let a bunch of dummys do it with nothing down we wouldn't be in this mess . 25% is to tough for most to come up with .

If you want to do it you have to go for it and take the risks that come with that decision . Good luck .

genecarp

Want to build homes? Make friends with architects. GMOD

__________________

CookeCarpentry

You first need to answer a couple questions:

1. Do you want to build a home because you think it will make you money?

or

2. Do you want to build a home because you think it will look good in your portfolio?

BillD

I agree. If you are in an area that looks like the market is getting better and you start a spec soon you could be in a great position for the spring.

But, like cabinet runner says, you need brass ones especially in these times.

One way to try and get an architect on board is to offer him a job first. Hire him to design your spec then you have a relationship to build upon.

Good luck,

Bill