How to come to be a professional Home builder - Part I

Homes For Rent In Columbus Ga By Owners - How to come to be a professional Home builder - Part I

Good afternoon. Now, I discovered Homes For Rent In Columbus Ga By Owners - How to come to be a professional Home builder - Part I. Which could be very helpful for me and also you. How to come to be a professional Home builder - Part I

Over the years I've had many of our maker students ask pertinent questions such as what size home do I build; what do I put in it; where do I build it? finding back it's easy for me to make these decisions now, but when I first started construction in 1975 these were trial and error situations. And my hindsight is crystal clear. It's very easy for me to look back and see things I wished I had known when I first started building. That's what you're going to learn in this article.

What I said. It shouldn't be the actual final outcome that the true about Homes For Rent In Columbus Ga By Owners. You check this out article for facts about what you wish to know is Homes For Rent In Columbus Ga By Owners.

Homes For Rent In Columbus Ga By Owners

You'll learn the pros and cons of being a speculative or spec maker (as opposed to a contract builder.) If you're not familiar with those terms, a spec maker is one who will settle on a site, select a design, build a home and then sell it to a client. A contract maker is a maker that you hire to build a home for you. By the way, spec construction is how I recommend you begin rather than construction a home for somebody else. I'll illustrate why later.

I'll begin by showing you how to be one of the best spec builders in your area, even if you've never before built a home. I'll expand this information by discussing points that are unique to spec building. Next I'll discuss points that are unique to contract building, and points that pertain to both spec and contract building.

A Word Of Caution

I want to stress that when starting your construction business, you must isolate your firm from your personal life. In the early 70's I was in real estate commercial sales. I barely survived a major recession. Approximately everything I owned was in my name and most of it was repossessed. Had I known then what I know now, I'd have retained that large home, that Mercedes and that airplane.

In the construction manufactures there are many things that can happen to you, some of which you have unmistakably no control over. According to the 2008 each year description by the National town for State Courts, in 2007 Americans filed over 90 million lawsuits, more than a third of which were civil cases. This does not consist of the volumes of legal disputes that were placed before a lawsuit was ever filed. Based on the sheer whole of legal disputes that arise, in and out of court, one could say that most Americans run the risk of being complex in a legal dispute at some point in their lives - for many people, more than once. This is especially true for those who work in professions with high lawsuit vulnerability such as doctors, dentists and, yes, especially builders! You should invest in hiring professionals to help you protect your assets. It's easier than you may realize. This is one time you can't procrastinate. I can tell you some great nightmare stories but I don't want to scare you this early in the game. Anyway, don't live in fear of what might happen. You only lose if you don't play.

I. Speculative Building

A. How To Be One Of The Best Spec Builders In Your Area

Before you buy a lot, before you buy any house plans, the first thing I want you to do is put together your success team. I call this the Henry Ford philosophy. If you read about Henry Ford, you'd learn that some people determined him to be illiterate. He once sued a Chicago newspaper that wrote an description claiming he was illiterate. In the lawsuit, Henry Ford emphasized that he didn't need to know everything about everything because he hired experts to assist him in all that he wanted to do. This left his mind free and clear to do all the things that he unmistakably knew how to do. Well, I've learned from that doctrine myself over the years. I perceive there is not sufficient time in this life to do everything. I now hire experts to assist me in my decision-making, and it has been a positive factor in my success construction homes.

Your success team should consist of the following:

1. Real Estate Agent

2. Landscape Architect

3. Artist/Architect

4. Kitchen/Bath Designer

5. Interior Designer

6. Lighting Designer

I'll discuss each of these team members in information as we go straight through the course. Don't be concerned. When you start out, you don't need the best. These team members are more affordable than you could perhaps imagine.

B. Obtaining Your First Loan

Let me tell you a story. And the further you get away from this story, the harder it's going to be to borrow money to get started.

Let's assume that you're gainfully employed. If you're not employed, but instead are self-employed, then you have to have a high credit score or produce tax returns for the past three years to qualify for the loan. If you currently rent a home or apartment and you want to build a home for yourself, you're a prime candidate to borrow money to build a home - for yourself. So, you get the money. You build a home. You put it on the store while construction. You sell it. You go to the bank. You borrow money under the same premise. You get the money. You build a home. Put it up for sale. Sell it. Do it over and over again and pretty soon you walk into the bank and the banker looks at you and says, gosh, you should come to be a home builder. And you are.

Now, that's the easiest way to get started. Most every maker I know got started in the manufactures this way. This method will also furnish you with the least risk. Why? Because if you don't sell the home you'll simply move into it. In turn, this will make it easier for you to sell because a home that is furnished will commonly sell faster than an unfurnished home. You'll finally sell it and can start the process again. The bad news is that you may be sharp a lot. I remember one merge that wanted to own a home free and clear. They used this method on five homes, plowing their profit back into each home. Their sixth home was constructed wholly from cash. They owned it free and clear and got out of the construction business. They simply wanted to do what it took to own their home free and clear.

The further you get away from the above scenario, the harder it is to get the preliminary loan when you're just getting started.

For example, let's say that you currently own a home and you want to borrow money to build other home for yourself. A banker will generally be negative. They tend to look at the downside and might comment something like this. "That sounds real good but you currently own a home. What are you going to do with your current home?" Your response is, "I'll put it up for sale while the construction of this new home and then I'll sell it." The banker comments, "That sounds pretty good, but what if you don't sell your current home?" The banker generally looks at the downside - that is you're going to be stuck with two house payments. If you're able to show you can afford two house payments, you may very well get the money.

You always have to have a flourishing closing to your story you tell the banker. Never look at the banker and say, "Well gosh; I'm only borrowing 70% of the appraised value. If the bank had to repossess the home the bank would have a bargain. The bank could sell the home, and make a good return on its investment." Never use this kind of logic on a banker. Bankers don't want to be in the homeowner business. Never imply or even think in your mind this will happen.

If you're not gainfully employed or you have a qoute with your credit or you have no cash, your next best method is to find an investor that will joint speculation a task with you. I've done this on many large projects when I didn't have the finances to afford it myself. What I commonly did was to structure the speculation so that the joint speculation partner would put up very itsybitsy or no money. Investors unmistakably like that! What I needed was their strong financial statement. Understand, there are many investors, such as medical doctors, who have expansive financial statements but they have very itsybitsy cash. So if you can structure the speculation so that it requires very itsybitsy or no cash, it becomes a relatively easy speculation to sell. When I've worked with a joint speculation partner, after selling the investment, the investor would be repaid any cash he had invested, plus a fair interest rate that was agreed upon up front. All remaining profits would be split 50% to me and 50% to the investor. commonly in a situation like this, the investor would let me deduct any out-of-pocket expenses but, understandably, they would not let me take any salary.

You would not believe some of the wild, crazy, ridiculous investments requiring large amounts of cash I've seen these people put money into. Many of them have the same luck in the stock store that I have. These people should feel blessed that you came into their lives with a viable real estate investment. I've found these people by talking to friends, going to speculation seminars and running ads in the paper.

I hope you have new knowledge about Homes For Rent In Columbus Ga By Owners. Where you possibly can put to utilization in your daily life. And most significantly, your reaction is passed about Homes For Rent In Columbus Ga By Owners.