Advice for Aspiring Spec Builder?

[Josh Ennis]

As the title says, I am new to real estate. I will graduate with my BS in Electrical Engineering in May 2025. After I save up some money, I want to start building spec homes in the DFW area. If you are an experienced spec home builder, do you have any advice you can give me?

[Ryan Cheek]

Jello - Josh

I am a real estate agent for a brokerage with a in house builder. We are building duplexes/Quads for investors all the time (currently at 2/week). While I am the agent and not the project manager/builder, I am in construction meetings and see what they do on a daily basis. By no means an expert but feel very knowledgeable in how they move. 

My biggest piece of advice would be to fire fast and get cameras/alarm systems in place. There is tons of things I would be able to share, but this is at the top of the list. When I say fire fast - do not get emotionally attached to the contractors. People either take pride in their work and do a good job or are just chasing a paycheck. Keep the good let go of the bad. 

Feel free to contact me for questions. 

[Jay Hinrichs]

Quote from @Ryan Cheek:

Jello - Josh

I am a real estate agent for a brokerage with a in house builder. We are building duplexes/Quads for investors all the time (currently at 2/week). While I am the agent and not the project manager/builder, I am in construction meetings and see what they do on a daily basis. By no means an expert but feel very knowledgeable in how they move. 

My biggest piece of advice would be to fire fast and get cameras/alarm systems in place. There is tons of things I would be able to share, but this is at the top of the list. When I say fire fast - do not get emotionally attached to the contractors. People either take pride in their work and do a good job or are just chasing a paycheck. Keep the good let go of the bad. 

Feel free to contact me for questions. 

sounds like theft is a big issue for you guys.. that sucks.. I knock on wood my current projects have had very little of this..  My advice for start up builder is U need to pay cash for the dirt to get your best loan terms.. also going to have to partner with a GC that has good experince your GC is going to either make you or break you as noted above.

[Kristin Flores-Brockman]

Quote from @Josh Ennis:

As the title says, I am new to real estate. I will graduate with my BS in Electrical Engineering in May 2025. After I save up some money, I want to start building spec homes in the DFW area. If you are an experienced spec home builder, do you have any advice you can give me?

You need a strong team of contractors, vendor partners, and a Realtor who truly understands the market, can spot great land deals, and sell homes quickly. As a DFW Realtor with deep market knowledge and a trusted team, I’m here to help. Let's connect and discuss how we can collaborate.

[Brooke Dyer]

Congratulations on pursuing your Electrical Engineering degree and setting your sights on an exciting goal right after graduation!

I'm a Realtor in Northeast Georgia who specializes in working with investors—and my husband builds single-family residential homes—we’ve learned that a key first step you can take now is to start assembling a strong team. This includes subcontractors, realtors, lenders, and building relationships with experienced investors. These connections will be essential as you begin identifying growing markets, securing land deals, and navigating new construction loans or cash investments. Having a reliable team of subcontractors that you trust to deliver high-quality work within your timeline is vital when you begin your building projects.

If construction is a new area for you, I highly recommend finding a mentor in your region. A mentor will be invaluable in helping you navigate floor plans, budgets, and the logistics of permits and inspections specific to certain areas. Having this guidance will fast-track your learning and set you up for success as you move forward.

Best of luck! Feel free to reach out if you'd like to connect!

[Josh Ennis]

Quote from @Brooke Dyer:

Congratulations on pursuing your Electrical Engineering degree and setting your sights on an exciting goal right after graduation!

I'm a Realtor in Northeast Georgia who specializes in working with investors—and my husband builds single-family residential homes—we’ve learned that a key first step you can take now is to start assembling a strong team. This includes subcontractors, realtors, lenders, and building relationships with experienced investors. These connections will be essential as you begin identifying growing markets, securing land deals, and navigating new construction loans or cash investments. Having a reliable team of subcontractors that you trust to deliver high-quality work within your timeline is vital when you begin your building projects.

If construction is a new area for you, I highly recommend finding a mentor in your region. A mentor will be invaluable in helping you navigate floor plans, budgets, and the logistics of permits and inspections specific to certain areas. Having this guidance will fast-track your learning and set you up for success as you move forward.

Best of luck! Feel free to reach out if you'd like to connect!

 Thank you for the advice, I definitely would like to connect!

[Bruce Lynn]

Seems like there is all kinds in and around Denton, especially all around 380 and 35.

#1 I would say, be fast, don't let things drag out.  You don't want to do loan extensions, pay more taxes, pay more holding costs.   Have plenty of reserve cash saved up in case you need to bonus your trades to do your job next.  Know what your holding costs are so in case it takes 4months to sell vs 2 months you can still profit.

#2 have/know well six trades for every major....so six masons, six HVAC, six framers, six foundation guys, six roofers.  If you're building one at a time and one of the big monster production builders needs work done from your #1 go to, you need a backup plan, and a backup plan to that backup plan.

#3.  Less fun and takes more time, but I would suggest before you start on your own, is to go work for any builder in the area.  Maybe as a construction manager, warranty guy, quality control or something.  You'll probably learn a lot from the big guys, but even small/smaller builder would be a good idea.  Learn on someone elses dime.  Backup plan, go to work for the city building inspections department or a third party inspector contracting for the county.

#4. Know your market inside/out backwards/forwards.  Know lot prices where you want to build.  Know every vacant lot where you want to build.  Build your database, who owns them, do they want to sell, sell at what price, what are other builders paying?   Know the prices of your trades, know your material costs, know your end sales prices.  Start visiting building sites so you can meet the trades and see finishouts in different price ranges.  If you're going to start with one at a time, know and study your competition.

Good luck....you are right in the heat of things.  I just think there is probably no better market in the country to do what you want to do and have the best opportunity for success.