[Dorota]

Hello Everyone!!

I have been reading the different threads on this site and have come to the conclusion to ask for advice...

Hmm..ok..this is how I will start:

I am a 25 year old woman from Chicago with NO personal experience with contracting of any form, but my husband is a framer. Eventhough I was born in the US I have a Polish heritage and my husband is "off the boat" or so to speak, with no knowledge of the way things work here in America...he just knows how to do his job.

I want to build houses!! The first step I am taking is I have signed up for a General Contracting course at our Community College that lasts 14 weeks for 3 hours a week. I believe that I CAN DO IT!

Many of you here that I from Chicago know that Chicago is a very competetive market amoung sub contractors ( and I know this because everyone that my parents know build houses and own their own contracting business etc..too bad my parents went the way of trucking!!). The thing is, I still believe that you can succeed here. That there is an immense value of building a home for someone as if you were building it for yourself.

My question is this, how difficult would it be for a women?? Where would I begin??

I was hoping that since we have some equity in our home, I would be able to refinance and take a cash out so that I can purchase some property. Then I would go to the bank to get a New Construction Loan. I have no idea how difficult this would be , but we have pretty good credit so that shouldn't be a problem. Another thing I have no idea about, is if I can turn around and sell this house after I am done building it? Do I have to BE GC in order to be the Owner/Builder? Should I incorporate, or do it personally see if I can do it, and then incorporate?? I know that I can call my dad's accountant and she can help me with the financial questions, but I feel that I would like an opinion from experience.

Please let me know, and thanks for reading this long post...what can I say, I am a woman--we LOVE TO TALK!!! He he he.. :cheesygri

 

[Dorota]

I understand that you think that there could be or should be a better way, you hear people all the time saying how cheaply everything seems like it is being built today, cheaply meaning lower quality, or not built like they used to.

Mike,

Thanks for the input. I apologize that my message may have come across as if I am trying to do something better to out smart the competition, but I didn't mean that at all. What I meant was that sometimes I see these developements of cookie cutter houses and feel as if the company or person building them are just "doing a job, blah blah blah". They seem to have "no heart put into them. Now I know that not all homes look like this, and that there are many that are very well built, and that's what I meant. Maybe some home owners don't notice these things, but regardless I don't know how to do anything without putting my heart and soul into it. Thanks again for the comments, and hope to hear from you soon!!

 

[Dorota]

You'll always have your husband out there putting his shoulder to the grindstone, day in and day out, making sure the family can eat and sleep easy at night.

Sorry Pipe Guy, but I think that it's not fair of you to assume that my husband is the breadwinner in the family, and that I can do whatever I please because I have a back up system in the fact that I am a woman. Maybe your wife has the opportunity to do what she wishes with your money and doesn't care if it "flies or dies", but I am not so rude as to assume that about you. Opening and operating a business is a difficult and scary decision. As so that you can be informed, I have already managed two succesful businesses for my parents, and so far no one has declared bankrupcy or had to shop at the Salvation Army.

What skills do you have? What would you think if your husband came home one day and said "Hey honey, I don't know jack about banking but since you know how to count money, and there's lots of banks around here, and our parents know bankers, and I'm sure I can be a banker, lets risk the little bit of home equity we've managed to accumulate and open a bank."? Does that sound good?

This also felt like a "low blow comment" because this is not as if I have just woke up one morning and decided "Lets build!! Everyone can do it for me, and if all else fails, Daddy's money will rescue us!!" I am willing to put a lot of hard work into educated my self before I undertake this type of venture. But again, I thank you for your opinion!!

 

[Dorota]

Thanks everyone for your support!!

Mike, as for my plan..here goes.

First of all I would like to complet the General Contracting course so that I have a better understanding of what I need to prepare for. I also feel that knowledge is key. Since the course begins on Feb 3 and runs for 14 weeks, I want to give myself that time to research different costs and requirements in the Chicagoland area. For instance, permit costs, schedules, contracts, etc. Before I begin I would like to have an idea of how long different aspects of the building process take, I have a good idea on the framing part, but I think that was obvious to all of you. Other than that, i already have a few people who do excavation and foundation work very well for very reasonable prices. I also have a few people that do Masonry and finish work that I have seen, and feel that they do good work, also for reasonable pricing. As I am sure all of you know, nothing beats experience, so with this I will learn with time. My family and I personally gutted a real estate office and turned it into a coffee shop, and also have worked on different things in the way of remodeling....So I think I have a good pool of resources to choose from. This and the fact that my brother started a re hab construction business a year ago (it is going quite well for him, so I have a little back up on experience). As for my idea about building a home, I know that right now I don't want to work with a customer and build to suit their needs. I want to build and sell based on my own plan. I have access to good lumber prices and a can do the framing at cost. I have also been friends with a union roofer, who is not doing this for the union any more, and would be able to have this done at a good price. My uncle (god bless him) is an electrician/HVAC guy with 30 years of experience, so that I know I could use him to at least make sure that I don't get killed financially in this department. The only thing that I don't have a good idea about is plumbing, and I know that this is huge, but I have faith that it will come through and that I will be able to find someone with good references and a fair price. We also plan to do as much work as possible ourselves (weighing time and money as factors of what we should put our hands into or not).
Our goal is to be able to have enough knowledge and research done so that we can begin sometime this year. For some reason I have a knack for finding good deals on property (knock on wood). For instance the condo that me and my husband bought last year when we got married was for 65k (and those of you who live in Chicago and know the prices in the SW suburbs, know that we have already doubled our value), but what can I say I found a little old lady who was moving to Alaska....and I have also been lucky in finding property for other family members at great prices!!! Sometimes a real estate deal would come along, and I felt like kicking myself for not having the capital to buy and turn it around for a profit, but that's life, right? I hope that this luck will follow me into finding a nice piece of land to build on, and we are not going to look for anything crazy, just something decent that an average house can be built on. The house that I am thinking about is not some type of mansions, just something simple to start with, maybe 2200-2500 sq ft. with a two car garage. The architect that my brother has been working with is a really nice guy, and he is thorough with his work. I was considering going to him.
I am not really sure how the financials work, so this is an obstacle for me, but I think that I can do some research and learn. I don't know the pros/cons/limitations of being an owner/builder or a GC of my own project. I am not sure how new construction loans work, how much of the property I have to own (30%? or 50%?). I also don't know how they figure out how much of a loan they give you, will I need to do a lot of leg work before I go to the bank?? Like having 3 estimates from each type of sub, and I also don't know how the bank pays out and monitors that money. Do they pay me? and then I just bring back the lien release papers? do I need reciepts? Truthfully, I have no idea, but hope that the class will help, and that speaking to a group of people, like yourselves, will also help. THE END.

What do you think?? Have I lost my mind (just kidding)?

 

[Dorota]

After I read this, it doesn't seem to be a ver defined plan, does it??