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General Real Estate Investing

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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
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Looking to build a custom home - where to start?

Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
Posted Aug 21 2012, 18:03

I am tired of looking for the "right" house and have decided to take a plunge into building one for myself. Where should I even start?

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Adam B.
  • Houston, TX
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Adam B.
  • Houston, TX
Replied Aug 21 2012, 18:33

If you have to ask this, then you should not build your own custom home. I've been building houses for nearly 15 years and can tell you there are so many things that can go wrong that will cost you money that at the end of the day, you would have been better off paying a professional builder.

If you are dead set on building your own home, then maybe you could talk with one of those "be your own builder" companies and hopefully they give you enough guidance to make it worth while.

Good luck either way you decide.

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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
Replied Aug 21 2012, 18:47

Thanks Adam. I was thinking about hiring a professional builder and not purchasing a home in an existing neighborhood. Already have the land so now trying to figure out what should be the next logical step

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Mark H.
  • SFR Investor
  • Phoenix, AZ
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Mark H.
  • SFR Investor
  • Phoenix, AZ
Replied Aug 21 2012, 18:55
Originally posted by Ossamah S.:
Thanks Adam. I was thinking about hiring a professional builder and not purchasing a home in an existing neighborhood. Already have the land so now trying to figure out what should be the next logical step

You might want to look at "boca" or "state code" modular homes. Some builders will let you customize them a bit, and the cost/speed can't be beat - you can go from bare ground to finished house in 90 days or less.

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Jason Grote
Pro Member
  • Developer
  • Austin, TX
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Jason Grote
Pro Member
  • Developer
  • Austin, TX
Replied Aug 21 2012, 21:47

Ossamah S.
This is some info that is very basic but may help you in some fashion:

There are 3 critical things you need to ask of your prospective custom homebuilder:

How much experience do you have with custom home building?
Building a home is a huge undertaking, and you can expect to be working with your builder for about a year to a year and a half. Before you undertake such a project, you need to know that you’re dealing with someone with extensive experience in the industry. Ideally, you want a new homebuilder that has been around for at least 2-3 decades. This is enough time to establish a track record for you to research and make an informed decision.

Do you have two or three references I can contact?
A couple decades of experience is great. It shows that the company has staying power and is not likely to pack up in the middle of the night and abandon your project. But it’s just as important to be able to talk with some others that they’ve built homes for in the past. Ask for two or three references and get their phone numbers. Then brainstorm and make a long list of questions to ask these references. List every possible concern you may have about your prospective new homebuilder. Most folks are generally very friendly and open and will tell you straight up if this builder is worth contracting with.

What are the length, terms and conditions of your warranty?
Even an experienced custom homebuilder with several good references can make mistakes. And if that should occur, you need to be protected with at least a one-year warranty (ideally two years would be better). Ask for the specifics of their home warranty – what is covered and what isn’t – and if you feel at all confused about it, bring it to a qualified attorney for review.

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Eric M.
  • Flipper/Rehabber
  • Louisville, KY
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Eric M.
  • Flipper/Rehabber
  • Louisville, KY
Replied Aug 21 2012, 21:51

Wish I could have voted for Adam's answer 100 times. I didn't think you were going to build it yourself and I still think you are over your head by asking that question.
Simply hiring a "professional builder" will not protect you from the incredible hassle, stress, cost overruns, etc of building a new home.
You need to know how homes are built and priced and how contractors work before you get into arranging to have one built for yourself. It is not as easy as you think.
A "professional builder" will fleece you and you won't even know it if you don't know what you are doing. The chances of you actually ending up with the "right" home which is well-built at a good price in a reasonable time frame are very low.
Also, by building, you are essentially tossing a bunch of money away to get your own design because homes can be bought for considerably less than building costs.

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied Aug 22 2012, 01:37

Ossamah, what price range are you thinking of? That will have a bearing on where to start.

You might begin with a drafting service to get a set of buildable plans and specifications of what you want. From those plans you can then get bids.

You can do alot of shopping for cabinets, fixtures and amenities and get the price you'll have to pay, use the contractors desk at box stores and Lyards, then as you get bids compare the contractors prices with them getting such items or you.

I strongly suggest you not attempt to act as a general contractor and sub out work.

Don't ask a builder for his referrences so much, they may give you his cousin and brother-in-law.

Talk to your bank about construction financing and who they like to work with, who comes in on budget and on time.

There should be a Home Builder's Association in your area, investigate who the members are and their standing. Ignore any BBB rating or endorsement, those are basically bought. You can check about complaints with the BBB.

Visit where the builder is or has worked and look at the subdivisions, if you see someone in the yard, strike up a conversation and ask the owner how their home build went! Get several opinions.

That, along with other good suggestions above is just the beginning...
good luck!

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Kama Ward
  • Investor
  • Asheville, NC
76
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184
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Kama Ward
  • Investor
  • Asheville, NC
Replied Aug 22 2012, 05:09

Don't try to save money!

What the heck does this mean?

Don't build yourself.

Don't listen to the guy who tells you what you want to hear (listen to the pro who tells you the tough stuff up front).

Don't use your fathers friend who hasn't built a house for a few years (codes and techniques change).

Don't use a carpenter friend who asks you to pull the permits.

Don't use your carpenter friend to put the tile in your bathroom.

I have seen several friends try each of these techniques: each cost more money, more time, more worry, more set backs! They did not get all that they wanted in the house. They all say they would take a new approach if they had to do it again:

Use a current custom home builder who has built several homes this year!!

Ask real estate investors who builds homes on time/ on budget. These are usually spec homes. Then ask them which builder can roll with changes to their standard house plans. Some builders can build dynamite homes, but are not flexible. Visit homes currently being built, not just ones that have finished. Pay attention to the work site and the workers, not just the house. Is it relatively neat? Do the workers look like they're on drugs?

Don't use an architect- unless you have to. Why? Architects can get you in all kinds of trouble with their fancy new ideas. Pour over the infinite supply of home plans and pick one or two that is closest to what you want. Better yet, work off the plans that the builder you hire uses. You may need an architect/drafter to put your plans on paper- depending on the municipality and the amount of changes.

Be realistic with your expectations:
You are going to get some of what you want in a house, but not all of what you want. It just doesn't work out that way. Budget, skill of builders, local regulations, the laws of physics all work to limit the final project.

You are going to spend more money than you can get out- at least for a while. There is no way a custom home can compete with current available stock, or even new spec homes. General home price rise is what it will take to get your money out-- and for most places in the country that is so slow right now.

Look after your pennies: How many choices will you make when building your home? More than 1000, that's for sure. What if you make choices that cost "only" $100 dollars more. 1000 x 100= $100, 000 dollars! Costs add up soooooo fast. My personal preference is a smaller square feet, energy efficient, and nicer (standard) finishes. I believe most people are happier with my approach over time. It's easy to draw lots of space on paper, and a lot more difficult to pay for, maintain and clean in real life.

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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
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5
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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
Replied Aug 22 2012, 07:00

wow thank you so much everyone! Its great hearing from all the experienced folks out there. I will be doing some research starting today and see where I end up. I am still looking for the "house" that meets 80% of my expectations and is not in a subdivision.

Again really appreciate it and this has given me the start needed. You might see more stupid posts from me in the near future :0

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Scott Williams
  • Real Estate Investor
  • Vancouver, WA
22
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78
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Scott Williams
  • Real Estate Investor
  • Vancouver, WA
Replied Aug 22 2012, 07:57

My $0.02
If you want a custom home, then go get one! Now that said there has been some good advice here. Be smart about it Meet with a designer tell them what you want. Have it drawn up. Meet with banker and builder. make sure it's what you want and can afford.
then build it.
It will drive you crazy, it will cost more then you thought, it will take longer then projected ( things happen, no ones fault) Just enjoy your creation
I've built houses I've drew on a napkin in a fast food resturant

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Larry K.
  • Investor and Architect
  • Ramsey, NJ
84
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305
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Larry K.
  • Investor and Architect
  • Ramsey, NJ
Replied Aug 22 2012, 10:36

If mean truly custom then

1. Hire an architect/find a site
2. Bid the job out to GC's

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David C.
  • Real Estate Professional
  • Mechanicsburg, PA
167
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319
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David C.
  • Real Estate Professional
  • Mechanicsburg, PA
Replied Aug 22 2012, 13:14

Just heard some horrors from a friend who's building a custom home:
contractor incorrectly sized his elevator shaft - now its impossible to put in an elevator.
elevator 'pit' is full of water - no sump drain set up
cracked septic tank installed with quick-fix patching to serious cracks.
plus the builder was drawing from the construction loan(not sure of my terminology here) - faster than in the contract for his general contractor fees- plus 'early' for materials before they were procured.
dumbwaiter shaft incorrectly sized.

House is 75%+ there? and friend is likely to fire his builder.

No thanks - I'll take cookie cutter any day!

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Steve K
  • Investor
  • Orlando, FL
106
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431
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Steve K
  • Investor
  • Orlando, FL
Replied Aug 22 2012, 13:26

Wow - there is a combination of good, bad, and ridiculous advice in this thread.

Ossamah S. If you have any questions feel free to send me a message. I've built over 100 custom homes and would be happy to answer any questions you have about pitfalls to watch out for, how to qualify your builder, etc.

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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
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5
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Ossamah S.
  • Real Estate Investor
  • Atlanta, GA
Replied Aug 22 2012, 15:42

I think people really got distracted with the word "Custom". What I am really looking at is building a home on the land using one of the several thousand plans using a builder. Essentially the home will look pretty similar to the ones in the subdivisions but will be more to my taste and I wont be part of any stupid HOA.

Steve K - Thank you for your help! Will be getting in touch.

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Cynthia J Vazquez
  • Toronto, ontatrio
0
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2
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Cynthia J Vazquez
  • Toronto, ontatrio
Replied Dec 5 2013, 22:08

'Right Decision' ossamah! Building a custom home with a good plan is the best way to get your 'Right Home'. Its good that your are hiring a professional builder.Its always good not to purchase a 'Ready to occupy' homes as we we wont be able to know the materials used for construction.

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Mauricio Botero
  • Investor
  • Stafford, VA
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45
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Mauricio Botero
  • Investor
  • Stafford, VA
Replied Nov 5 2014, 16:54

Hey @Ossamah S. , I was trying to learn about where to start as well with new home construction, just wondering what ever happened with your situation?

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Joe Urena
  • Beverly Hills, CA
0
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1
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Joe Urena
  • Beverly Hills, CA
Replied Jan 25 2016, 23:25

If you are looking to do some custom Mosaics please look us up. www.mosaiclegs.com

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Scott A.
  • Tampa Bay, FL
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Scott A.
  • Tampa Bay, FL
Replied May 23 2016, 11:27

Why don't you buy a house plan online that you like and build the home yourself?  You can just give the plan to a home builder... if you need to make adjustments, they will help you redesign.  This way you start with kind of a template that you can mold however you like... and it's brand new.  Hope that helps.

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Kevin Chan
  • Real Estate Investor
  • Issaquah, WA
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22
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Kevin Chan
  • Real Estate Investor
  • Issaquah, WA
Replied Aug 14 2016, 16:48

What are best sources for custom home designs?

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Carl Lim
  • Kingston, Ontario
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Carl Lim
  • Kingston, Ontario
Replied May 15 2017, 02:25

River View

I would recommend you using River View custom home builder, they're offering to build luxury new home or large scale renovation at affordable price rates than the other that I've googled, if you have questions or your interested, visit their site here: http://riverviewcustomhomes.ca I hope it helps

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Replied Aug 31 2018, 06:34

It’s a great idea to do it by your own but in some questions it’s better to ask professionals. For me the most challenging issue was the roof. I’ve wasted a lot of money until I realize that it is better to call professionals. Find some good contractors near you area. If you are from Toronto I recommend https://misterroof.net

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Replied Sep 15 2021, 02:07

So you just need to order a handyman service on the website https://www.mrdoesall.com/requ... - and the job will be done. Real specialists work here - each in his own field. The money issue is also presented by rather budgetary prices - on the site you can find various options for offers and service packages. I am sure that you will like what these people can do, because I myself have called such a master more than once in my everyday life - I spend a lot of time traveling, and my wife often needs help.