Owner-builders or Pro-Builders. (Vertnut?)

[JordonMusser]

Ive decided I want a 4+ car garage, and want to be closer to work. I had planned to expand my garage (5 car) but between the cost, and the fact I want to be closer to work.. I am thinking I want to build.

Found a few potential lots. I want to a modern home
Think something like this:

http://coodet.com/modern-minimalist-house-steve-kent/

I am considering being my own builder. I have a friend who is an engineer that can do the prints/etc (he does custom home engineering for a living).

Anybody here done the owner/builder thing? How bad was it? I work full time so I will have limited time I can be on site, but certainly before and after work, and if I need to stop by sometimes during lunch etc I can as well.

I have done a lot of remodeling myself, so I am not totally green (electrical/AC/basic framing/concrete).


I would also consider hiring a builder if the price was right, and I trusted them. I expect to spend about 85-100K on the land and 250K on the house (2500sqft living, 1200sqft garage). I have very inexpensive tastes when it comes to finish work (I want very simple base boards, no fancy trim... Ikea cabinets, etc).

A friend of mine just finished building his $800K, 6k sqft home himself, but he is a contractor anyway(just his first end to end house build). He thinks I can do it, he is going to give me all the subs he used on his house that he had success with.

I will skip the architect probably, and just draw up my own 3D model of the house and give it to my engineer as the basis of his drawings, unless I can find a good modern architect to work with (so far, they are all $$$$). I want simple, so I dont need anything revolutionary...

Thoughts/input?

[8mpg]

The biggest problem you will have is finding good subs. With your friend being a builder, you can try and leverage that but honestly you are one shot customer. There is no recourse when it comes to proper scheduling, taking your money and using it on other builds, etc. By the time they realize they can probably overcharge you, you probably wont save the 10% a builder would have charged you. Not having plenty of time will kill you. There is lots of lining up subs and making sure they do their work on time. Also, who will warranty their work? Usually you get a warranty with a builder, the subs probably wont warranty their work for the house. Also, will they come back and fix their mess ups after the job is basically done and they have cash in their pocket.

If you are financing the construction loan, most banks frown upon owner builders and wont loan you the money with major trade experience you can document or paying a site supervisor. You can try and get around this by using a owner builder network.

Most builders here in Texas (in this market) will build for 10%. I think its safer to just hire a builder as I honestly dont believe you will save that much money. Subs charging you 5-10% more per trade and taking longer will really hurt you.

[Sean88gt]

Where are you looking to build Jordan?

[Vertnut]

I wouldn't touch a build job without prints, and neither would a smart framer, plumber, concrete man, or electrician. It's the first thing any sub needs to properly bid a job. Any lending institution will need blueprints before they give you a dime. It's the only way they can appraise the house for a construction loan.

[naynay]

Id be sure to have an on site supervisor no matter what.

[Vertnut]

Jordon, as several board members will confirm, my advice is free. I don't/won't typically do work for other members for different reasons, but I would certainly help any way possible.

[JordonMusser]

Thanks guys. I am hoping to build along 75 between 635 and GB. Looking at a few spots in richardson, but would also entertain something off of GB between DNT and 75.

Looked at a spot today, but it is probably too large (AKA, too expensive).

Randomly another friend of mine who was a builder during the boom, just started working for a builder and swears up and down he can do it for cost +10%, with not additional markups. If that is true, it is probably worth it for peace of mind. Going to discuss tonight hopefully.

[Vertnut]

Thanks guys. I am hoping to build along 75 between 635 and GB. Looking at a few spots in richardson, but would also entertain something off of GB between DNT and 75.

Looked at a spot today, but it is probably too large (AKA, too expensive).

Randomly another friend of mine who was a builder during the boom, just started working for a builder and swears up and down he can do it for cost +10%, with not additional markups. If that is true, it is probably worth it for peace of mind. Going to discuss tonight hopefully.

If he's an honest guy, he would easily save you 10% on the subs (and a lot of worry), and end up costing you nothing.

[dblack1]

If he's an honest guy, he would easily save you 10% on the subs (and a lot of worry), and end up costing you nothing.

Easy to save the 10% or way more.

I spoke to a builder a couple weeks ago that actually told me a lot of prices he paid for subs/materials. His subs are coming in from over 100 miles away and he his paying framers around 25% less than the local guys get a foot. I'd planned to do a lot of the work and after looking at the numbers I'm down to flooring, ac (FIL/myself), roofing (friend/myself), and initial dirt work needed. There is no way I could build a house cheaper or in a 90-120 day timeline he can accomplish. That is a big thing too, as if you drag out the build at the end the construction loan interest will eat you alive. You want the last draw and closing out the loan to be as close together as possible.

[Sean88gt]

Cost plus is the way to go, and as stated, you'll save more than the 10% on trades as well as heart burn meds.