I Want To Build My First Spec House.
I am 23 years old, work in the construction industry, and believe I am good at what I do. I would like to build a spec house here in the near future. Just so happens my girlfriend is graduating this month from college in interior design. I understand that aquiring the property is one of the challenges. I have looked at buying rehab houses. The houses here in Skagit Valley, Wa , which is about 60 miles north of Seattle, all seem to be too far gone for me to want to take them on as projects. IE :bad foundations to start with. That is the worst I always see. I just bought my first house though. It is a newer house built in 2001 and I currently have it rented out but I am paying about $170 out of my pocket to meet the mortgage. Other than that it is the only debt that I have. I am basically trying to figure out the business side of construction and what would be my best way to start to be able to reach my goals. Also what books are reccomend for this such subject.
Thanks, Andy
The first one is the hardest.
Andy,
Judging from the title to your topic, I gather you want to spec homes. If this is so, I suggest you look at your market there to see how spec homes do, specifically, how long they sit unsold and if new homes buyers prefer to buy while they can still have some input into interior finish.
Selling spec homes seems to be market specific--some way spec homes are common in their area and others (myself included) are more cautious because I've seen spec homes sit in my area.
Perhaps one alternative for you would be to not start construction until you had a buyer in hand for the total package (lot and house). Then the construction loan is on the buyers.
Depending on the price tag and location, a property with a "dozable" house may be another option to vacant lots. Obviously, the numbers would have to work for you, and I don't know what your lot options are in your market.
Attend your local home builders association meeting. You will learn the licensing requirements for homebuilders.
Hello Andy,
If you have a good deal of money building a spec is a good means of getting started. Spec loans are rather tough to aquire, especially for those with limited building experience. Sold jobs are the best way to go, as Nancy suggested, however they are not always easy to get. A good source of books for the building industry is www.builderbooks.com Good Luck
Hi Andy:
Since you have a construction back-
ground I would recommend you start
buying houses that you could fix-up and
sell for a profit first. I would recommend
you buy Ron Legrands "Cash Flow" module on this site. Go to "shop" and
then click on "consignment". This course use to retail for $12k and now it is at a blow out price of a couple hundred
bucks. I would also recommend you purchase John Lockes "subject to" course. This will teach you how to buy houses with existing financing in place.
Once you educate yourself, you will be able to: Retail houses to end users,
Wholesale houses to other investors,
Lease Option houses to end-users.
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 03/09/2004 ]