All Forum Posts by: Jeremy England

Anyone use the advantage of putting new construction builds in an SDIRA? Grows your retirement savings tax free. Easy way to put down 20-25% on a new build, residential SFH, Duplex or Quad, turnkey PM'd, long term rental with Build 2 Rent model.

How do you mean? Like using someone's SDIRA to fund the build? or the SDIRA actually owning the property? I'm not sure how that works.

0 Votes

Columbus, Ohio

Quote from @Ryan Arth:

Quote from @Jeremy England:

Equity partners, from a builder perspective how would you structure that. in short, I only have so much cash. I can build one and sell 1. What if i want to build 5?

The same as any other investment you raise for. You can pay a fixed return, or get more complicated with a preferred return and waterfall structure on profits. Or anything in between.

On the one spec we are building on a client's land they are putting up all the money and we are doing a backend profit split. Nothing complicated.

Can you explain waterfall structure on profits? I haven't partnered with any investors on specs and am looking for ways I might do that.

0 Votes

Columbus, Ohio

Quote from @Ryan Arth:

Quote from @Jeremy England:

Equity partners, from a builder perspective how would you structure that. in short, I only have so much cash. I can build one and sell 1. What if i want to build 5?

The same as any other investment you raise for. You can pay a fixed return, or get more complicated with a preferred return and waterfall structure on profits. Or anything in between.

On the one spec we are building on a client's land they are putting up all the money and we are doing a backend profit split. Nothing complicated.

Whats the split? I50/50? Are you getting a fee or waiving any builder fee?

0 Votes

Columbus, Ohio

Equity partners, from a builder perspective how would you structure that. in short, I only have so much cash. I can build one and sell 1. What if i want to build 5?

1 Vote

Columbus, Ohio

I just built my first duplex in the Pensacola market.

I am the builder and investor. Its under contract now. Very successful project. I just made an offer for another parcel I intend to do the same structure on

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Quote from @Robert Ellis:

For those actively building new homes, what’s been your biggest hurdle lately? Rising costs, permitting delays, financing, labor shortages?

In markets like Columbus and other growing cities, new construction can be incredibly profitable, but managing risk is key. Some investors are using:

Fixed-cost contracts to control expenses
Pre-designed floor plans to streamline builds
Creative financing strategies to keep projects moving

What’s been your experience? Are you shifting strategies to keep margins strong? Let’s talk shop!

Biggest hurdles are finding the land suitable for my intended projects. Building duplexes and triplexes. And I don't want them next to trailer parks. Has to be the right zoning. Price of land is always an issue.

Wetland mitigation is what Im researching now. I really don't know much about building on wetlands. I mean I know the permitting process. But i mean the actual methods and techniques to reduce the impact. Do they want me to build on helical piles instead of a slab? Does it cost me mitigation credits for just the footprint of the house or the house, driveway and yard?

0 Votes

Columbus, Ohio

Quote from @Matthew Becker:

Quote from @Mike H.:

Quote from @Matthew Becker:

Labor and I have almost 40 guys. Banking is slow but still pretty good. Commercial loans just take a while. Running your own crew is the way to go. I know no one does this, but you can save 30% on a build. Also, buy materials in bulk. I bought a semi truckload of siding,g and it saved me 40%. I buy nails, screws, and little stuff like that. In Bulk, it saves me 50%. Framing materials buy in the off-season save 25%. Trim 40%. Pretty much everything in bulk is cheaper because the retailer does not have to handle it. Materials savings 35% and labor 40%. It is hard to buy land in bulk. You also have to have enough work to keep it moving.

Very interested in how you're able to buy framing material in bulk to save 25%. Are you buying direct from the mills? How much bulk are you needing to buy?

I buy semi-truck loads from a local lumber yard, and I spend several million a year at. He charges me a small margin, and the mills drop it directly to me. I have other direct supplies I have set up for cabinets, flooring, and other stuff where I buy from the same people that the store buys from. I also buy semi-truck loads of cabinets, siding, and trim. I have yet to be able to save a ton on drywall. I think it is just a low margin. My goal in the next 2 years is to have direct for everything it just takes a ton of time.

Do you just have warehouses you keep it all in?

0 Votes

Columbus, Ohio

Here is the thing. Its hard for investors to find good reliable contractors because typically investors want to pay below market prices for the work.

Not only that but they also want to make substandard repairs to homes with cheap materials.

This is the generalized view of investors among contractors.

And i also know the typical view of contractors investors have. That is likely because you are hiring unlicensed people to do the work. A license isnt the end all be all. But it does give someone peace of mind that the contractor is no criminal, credit worthy, insured, and experienced.

Stop hiring unlicensed contractors and your experience with contractors is likely to improve

A business license is not a contractors license. The state grants contractor licenses. Not a city or county

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No collapse here in Pensacola. Neighbor recently sold for 950k

That was about 15% from their list price but still.

But i hope oos people do steer clear of florida investing. More for the folks that live here

2 Votes

I dont know about Oklahoma. But in Florida and Alabama, if anything done requires a permit then only licensed contractors can do it. Owner builders can pull permits if its a personal residence but not investment properties

2 Votes

Tulsa, Oklahoma

All Forum Posts by: Jeremy England

Jeremy England has started 21 posts and replied 278 times.

Post: Why Aren’t More Investors Building Instead of Buying?

Post: Why Aren’t More Investors Building Instead of Buying?

Post: Why Aren’t More Investors Building Instead of Buying?

Post: Why Aren’t More Investors Building Instead of Buying?

Post: Building My First Houston 5 Duplexes in Sunnyside Area of Houston, Texas

Post: Biggest Challenges in New Construction? How Are You Overcoming Them?

Post: Biggest Challenges in New Construction? How Are You Overcoming Them?

Post: Which professional is the hardest for you to find?

Post: Investing in Florida

Post: Contractors versus running crews for fix and flips