Let's Build a Spec House!

[Real Deal Denver]

I'm pretty easy. If a realtor brings me a buyer, they get the next listing. Maybe go in with that "deal" and see where the relationship goes. I would recommend smaller builders too. The large ones try their best to sell them in-house.

I form most of my relationships outside of work. Philanthropies, church functions, parties etc. The more I "do" the more contacts I make and things fall in my lap.

Thanks for the great answers.

Yes, the big builders go to great lengths to keep everything in house. Their own sales teams that are top notch - but very limited in what they do. They only know their products.

Do you think having me in the office to help the buyers needing to sell their own homes would be an added bonus in *your* market appeal? Or do most buyers have that wrapped up by the time they talk to you?

 

[greenGabbard]

I must say this progress thread has me really pumped about getting into this real estate deeper. I have a couple questions for you sir.

What/where would you advise I can learn more about how to go about this particular build model?

I have already bought my plots, app. 10, and am looking to build on these lots as well.

I have a friend that is an architect. Another is a master carpenter. What other skilled person might I need to find in my network?

Are your lots/plats ideally the same size lots to minimize the amount of redesign/scale?

Thank you for this great progress thread and being very active and detailed throughout the whole adventure.

 

[Connor]

Please do! I love real estate and the forum could use a few more RE threads.

Already did! Waiting for a few more things to happen before posting an update to make it more interesting. You can find it here: Investing in Townhomes.

 

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[Blair]

good update, enjoy watching your progress. Do you let your clients make changes? I presell everything and lock down the specification. When you buy an iphone you cant make changes so why should housing be any different. Frees up massive time, makes job management easier and means all the contractors get into a good pattern from job to job.

 

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[Johnny Le]

Wow a 6% increase! How would you go about hitting 20% though?

 

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[steelandchrome]

Out of curiosity, what is your average cost per square foot to build not including the land?

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[reedracer]

I think your truss' are sexy! Thanks for the awesome journal! Great read.

 

[rc08234]

I just moved to Florida, I source lots and tear downs for builders. What part of FL are you in?

 

[rc08234]

Whats the end selling price?

 

[Striver]

but I spend way too much time on Facebook pissing people off.

That's my specialty!

 

[Johnny Le]

Awesome! Right on track for your goal. I'll be following along your new thread as well. Thanks for recommending that PM software, it really is making my life a lot easier. I do have a few questions for you.

Are your profit margins increasing with each spec?
With 2 project managers, how many hours are you putting in a week now? At what point did you feel the need to hire one?
Would you have any building tips/tricks to keep the build cost low?
Are you using the PM software's templates, or have you built a custom setup?

Pictures please!

 

[Get Right]

Out of curiosity, what is your average cost per square foot to build not including the land?

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$176/square foot

 

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[Johnny Le]

$176/square foot

Hey boss man!! It's been awhile since we've spoken/updated this thread! How has everything been going for you regarding your spec building business? I've got 2 on the market right now.

 

[Get Right]

Wow. Just got a notification from this thread!! Thanks for everything @Get Right!!

It's been five years since my journey began and I've been able to build 10 spec homes since. From finding financing to building it to selling it.

In my market I was building in the upper price range, but have since considered to begin building higher density homes. In order to do so, we've spent a good bit on consultants.

If you want more information I'd recommend Builder Partnerships. (I have no affiliation with them!)

Best of luck!

Congratulations on your success! 10 specs is pretty awesome.