All Forum Posts by: Eric Teran

@Marcus Olsson un I see this question a lot in the form. It is impossible for anGC to give a good estimate with no plans. There are so many questions and parts that it is impossible. For example, will the construction involve steel, are the appliances Wolf, what type of HVAC system, how many bathrooms, and so on.

If you want a very rough estimate look for contractors who have worked in that area. They may be willing to give a range like $1 - $1.5 million because they are familiar with the structures in that area. The other option is what @chris mason suggested and pay a contractor. You can tell them if they win the job to give you the credit on the tail end of the project.

@Ryan Mainwaring I'll add to the civil engineer's comment. A firewall is not technically rated unless it is called out as being rated. For example, in a hotel, I worked on we had numerous CMU walls. However, we only labeled a few of them as being 2-hour rated on the permit plans. Since we did not call out the other CMU walls as rated then they were not legally rated. Additionally, the same built wall was 1-hour rated in one location and 2-hours in another because that is what we labeled it as in our plans. 

A fire-rated wall is all about the entire assembly and where it is located. For example, a 1-hour rated wall has a 20-minute fire-rated door. The logic is that at a wall lots of items can be stored against it so there is more fuel. At a door, there is nothing in front of it so there is not as much fuel for the fire. Now you know. 

Finally, a brick veneer is not used for fire-rated walls. I believe it may be due to the air space behind the brick and the house structure. If it is a structural wall made from brick then it can be counted as a fire-rated wall. If the brick veneer is not included is a UL or ASTM or another agency listing then it isn't technically fire rated. 
 

@Sonam Gill you should be fine if you just add the note that states fire separation walls to folllow UL 263. If he told you to have an architect or engineer sign and seal the plans then you need one of us. If not try it yourself and see what happens. He might have suggested for you to consult with an architect because not all UL rated assemblies work for every scenario.

@Tyrone Marson everyone wants their piece of the pie. On your first project, you are not going to get a great deal. They have never worked with you and don't know what to expect and this may be just one project. They will try to do a great job to get another project from you and then probably lower their price but in the first one, it will be hard to get a great deal. Unless you partner with them. 

For example, I have had potential clients ask for a deal on the first project and that they promise to give me more jobs in the future. I tell them, pay my normal fee on the first project, and then I will lower my price on future projects if we are a good fit. I have some developer clients that want to see 20 options for a kitchen. I can't lower my price for them because they consume lots of my time. Other developers say yes to everything in the first option so then I know that I can lower my price on the next project because the developer knows how to make decisions and not waste anyone's time. 

The Contractors I recommend do not rip off my clients or I wouldn't recommend them. They earn a fair percentage. When you have a project size and style in mind I'll be happy to recommend one. I have one that only does million dollars plus homes in NW and he is expensive but amazing. I have a few that work anywhere and do nice work but I wouldn't recommend them for a million-dollar home. I have one or two in NOVA that do nice work but only for medium size projects. Some work better with homeowners and others with developers. Luckily I have gotten to know some Contractors that I like. 

@Christine Lai so Contractors are not really LEED certified. They build what they are told to build. That is why there are plans. Some do it better than others but that has nothing to do with a “green” building. For example, you can buy a toilet from Home Depot that comes from China. That is not environmentally friendly. You need to buy a toilet that is manufactured within 500 miles of the project site to be considered environmentally friendly. There are many categories but the point is you can’t just tell someone to go buy a toilet. You have to tell them from where.

Most small projects there is no need to go to crazy. The big factors are insulation, windows/doors, light bulbs, leaky faucets, and the right sized mechanical equipment. Start there and you are going in the right direction.

In addition to some of the other site recommended check out Building Science. There is a lot of good stuff and when a contractors tells you, “this is how we have always done it” then you can tell them they are wrong and back it up.

Good luck.

@Tyrone Marson what do you mean by investor friendly? I’m an Architect and have about 5-6 GC in the DMV area that I like to recommend to my clients depending on the type of project and your budget. Give me some more information and I may be able to help.

@Sebastian Jimenez you have a great attitude that you want to get out there and be successful. Be sure to work smarter and not harder to reach your goals. At your age you have time so be patient but don’t waste it.

Read as many books as you can, listen to podcast, watch videos. There will be one or two aspects that interest you more than others. For example, maybe the construction aspect, or loans, or finding deals. When you find that interest go get a job in that field. Go to a bank and learn how lenders work, go work for a developer and see how deals are made, go find a realtor to study the market, and so on. Stay at the job for a year and soak in all the information. Don’t be afraid to ask the boss if you can listen in on a call or be present at a presentation. Just ask. It never hurts to ask. Then move onto another aspect of real estate. Maybe you like to design a house so ask an Architect if you can help on the weekends, ask a property manager to let you shadow them for a month and learn all their tricks. Ask lots of questions.

You are young and can explore all these opportunities. Get a different job each summer. Tell everyone your goals. If you don’t speak up people cant help you. In a few years you will be well rounded in real estate investing and have a lot of connections. You will find mentors and your network will grow so when the time comes for your first deal you will be ready.

If you ever want to learn how to understand zoning regulations for properties just let me know. Just like that your network has started. Good luck.

@Jon H. I’m an Architect and as long as you build what is legally by right they can’t deny you a permit. If you asked for a variance or special exception or a change in use, etc. Then they can deny your application. However, it sounds like you will not be doing any of that so you will be fine. Just verify all the site requirements. You do this by going to the zoning or planning office in you jurisdiction and ask them what may be built on that lot. There will be setbacks, height limits, and so on. Just adhere to those code regulations and you are fine.

I’m regards to modular it is not different than stick built. The value of the house will not be affected. No one can tell it is a modular house. Don’t get confused with modular and manufactured. Modular site on a permanent foundation while manufactured is on a chasis and usually in a mobile home park.

If down correctly modular will save you money and it will definitely save you time. I built my own house using Superior Walls for the basement which are prefabricated and a modular system for the two upper floors. PM me and I can give you my website that shows my house and a daily blog that I kept during construction so you can have an idea what you are in for. BP always blocks my comments if I give out my website in the forum since it goes to my architecture site.

In conclusion built what is legally by right and there is no stress and look into modular to save time and money.

@Chris Vee so my $175 SQ FT does not include soft cost. Those are all the plans and permit fees. The soft cost can add between $20k to $50k for a new build or major remodel. I also got a lower price since I'm an Architect. I'm always surprised when my clients get their bids and how much the price is in the DMV market. The biggest factor is labor. Rough materials are more or less the same. The finishes are a big difference. You can find nice wood floor for $2 SF or pay $10 a SF for wood from Brazil. In a 3,000 SF house, the difference is $24k. Those finishes start to add up. As you mentioned labor is the biggest factor. When I built my house I went looking for a day laborer to help me for a day to install a silt fence prior to construction. I couldn't find anyone to do it for less than $20 an hour. I did the job myself. 

@Jason H. You asked earlier in the thread what is our advantage? I believe it is two things.

We know how to read zoning codes. We know how to use them to our advantage and are not scared at pushing those limitation. We also know when not to test the waters thinking that a variance is doable. Zoning knowledge is big.

The other factor is that we can go into a space and understand what may be built. Our creative thinking doesn’t limit or scare us. The wealthy Architects don’t get old a lot of money to produce a construction document set. They get paid the big bucks to find creative solutions. Architects need to use that to their advantage in real estate investing.