What Are the Real, Day-to-Day Challenges Contractors Face in Home Construction?

[Conrad Tillman]

Hi everyone,

I'm considering moving from real estate to construction and keep seeing articles about high interest rates and labor shortages affecting the construction industry, but they often only scratch the surface. I'm really interested in hearing directly from professionals in the field: What are main challenges contractors and developers are dealing with on daily basis while building homes?

Thanks in advance!

[Jay Hinrichs]

LOL  its kind of like 50 ways to leave your lover.

And its very much dependent on your jurisdiction.

however I will list the stuff I have gone through the last decade or so through about 200 new builds in 4 markets.

1. material price fluctuations. rarely down almost always up pretty much annually.

2. as we all know labor  scarce  and or unqualified and do poor work.. I do not put in price of labor because for me I will pay for good subs they are the key.

3. State, County, City rules and regs every one is different. Some areas its not bad other areas its horrid and you do one and leave like for me I will never build in the city of Portland OR again. Suburbs is were we end up.

4. Access to capital at reasonable rates IE from a Bank not a HML or PML this is also a big deal HML / PML is generally 14 to 18% apr on your projects.. Banks even today are 7 to 8 I only use banks. But Banks only fund the very well qualified generally no way a beginner is getting bank financing unless your basically borrowing your own money.

5. Resale  what retail buyers are paying for rates of course affects the business dramatically.

But I will say its worth the effort in the long run at least for us..