🚧 First time building – order of operations? 🚧

[Marcus B.]

Hello BiggerPockets,

My wife and I have dreamt of running AirBnBs and resorts since we were married. This year we want to take the plunge, take a risk, do something. Our goal is to build 2-3 geodesic domes as short-term rentals in the Blue Ridge mountains, taking heavy inspiration from Domes Charlevoix in Canada. Ideally, we would like to complete this project for $250-300k (maybe this is naive, but I have no basis). The problem? We don't know where to start. Things I know need to happen before construction:

• Find a lender. - I don't know what kind of lender to talk to, because I'm unsure what type of loan we will need. Business loan, construction mortgage, traditional mortgage?

• Find a property. - I don't know how much we can allocate to land because I'm unsure of the final cost of the domes.

• Get an estimate on the cost to construct our project. - Will a general contractor be willing to talk to me before the above two tasks?

My wife and I would like to live on-property as soon as one of the domes are livable (possibly in an airstream before), until a time where all domes are rentable, automated, and positive cash-flowing. It's worth noting that we do not own a house, we currently rent and have good flexibility of location with our jobs.

Where do I start? Who should I talk to first? Any and all advice is welcome and hugely appreciated.

[Nicholas Field]

This becomes slightly challenging. But I'll share my knowledge. Steps by steps are: 

1) Land

Pick your land. How will you secure it? Is it big enough. How much does it cost? What is it zoned?

2) Feasibility

Run your numbers. You'll have to get some construction costs, soft costs, land costs. Will the project make sense?

3) Municipal Approvals

Will a city allow you to do what you want to do? 

4) Design

Hire an architect to design it.

5) Construction

Hire a builder to build it. 

6) Financing 

Pay for it. 

That's obviously an overly simplified way to do it. But you really need to understand if the project is going to make sense. Have a good idea, and be able to present it to someone who's willing to listen. Run every number. How will you secure or option the land? How much does it cost to build in your area? How much do architects cost in your area? I live in two places (Vegas and Vancouver) where building costs in Vegas are half of what they are in Vancouver. Talking to builders will get you to understand that. 

Don't glaze over what the city will allow you to do and what they won't. Cities and approvals can kill projects and make people go broke. Be careful. 

Architects will make plans and get you design drawings you can then show to builders to get firm quotes. 

Banks will want to probably see 25% cash in the project and the remaining 75% guaranteed. Can you make that happen? A bank will not really talk to you too in depth until you have a full design and quotes from builders. That's really why it comes last. But have an IDEA before you spend $50k to get to that point. 

I can help you further if you'd like. Send me a message and we can chat more.