All Forum Posts by: Jeffrey Stasz

Air BnB in Charleston is subject to strict zoning rules. You can find an overlay on the muni-code website. I think you also need to be in a commercial space. Those properties are tough to come by and are generally snapped up pretty quick. 

I just am about 2 weeks away from my level 5 GC so take this with a grain of salt...I could be wrong. But here is what the book says: 

"An entity licensed on section 40-11-410(1),(2),(3) may act as the sole prime general contractor on a project if 40% or more of the total cost of construction falls under one or more of the licensee's license or subclassifications. A properly licensed mechanical contracting entity must have 51% of its licensee subclassifications in a construction project to be listed as the sole prime contractor." 

In reviewing the statue directly he might be able to go with a "General Contractor-Highway" and then go back to a "General Contractor-Building" to complete the build. Or you could probably go with a "General Contractor-Building" and, depending on the dollar value of the site work relative to the build (less then 40% of the project), they would be able to perform the site work as part of their license, or direct a "Mechanical Contractor" with a Grading and Paving license (eg. some guys with trucks and dozers) to perform the work and they would be able sign off on the adequacy of the build. 

Also, as an FYI, he will need to verify that you're under an acre otherwise you will need an environmental study to move that much dirt around. 

I hope this helps. From the sounds of things it may be easier to hire a Category 4 or Category 5 contractor and just have them GSD rather then trying to manage a bunch of specialty contractors. 

-Jeffrey

In SC you will still need a General Contractor to oversee/sign off on the build. Sounds like you're project is well north of 1.5mm so you will need a Category 5 "Unlimited Builder" to get the work done. 

In some states you can manage sub-contractors directly but South Carolina is not one of them. 

Hey guys. 

I am an investor and GC here in Charleston. I do flips and new builds but looking to expand a bit. Any one want to get together next week for a beer/club soda and talk strategy? I think we could probably all help each other a good deal 

@David Lowe I am a developer and GC in Charleston. Feel free to PM me if you have any questions. 

I disagree on the deflection comment. If the joist system can handle the load it can handle the load. The presence of an additional flooring layer should not matter unless the weight puts you over the bearing ability of your floor system. 

For remodels of this nature consider the Schluter floating floor system. It replaces cement board and acts as a floating mortar bed for your tiles. It is easier to level, water proof, and allows for movement of the subfloor . 

Sounds like you should start interviewing community lenders. I'd recommend looking for a construction partner as well. If you go to community banks with equity, a strong team and some additional cash on the balance sheet you should be able to get a construction loan. 

Typical terms are going to be around 40-50% LTV. 18 Months Interest Only, then a 4-5 year interest plus principal conversion. Expect interest rates around 5%.

I see community banks coming back into the spec market. You just need to find the team that is doing the deals in your area. Look for portfolio lenders with strong in house construction teams and you will be A Okay. 

Good luck 

What those guys said. It's a different animal. And if you're doing rehabs at 27/sqft it is probably fairly cosmetic. 

For example the last structural rehab I did was 211/sqft. Granted it was a lot of work and I made a ton of mistakes but still... 

If you want to get a general idea of cost of construction for you build I'd suggest modeling something out using this tool: http://www.building-cost.net/Valuation/QualityEsti...

It's far from perfect but it will get you moving. Also notice the level of difficulty you have with answering these questions. Guys like @J Scott and @Jay Hinrichs can probably run through this estimator in under ten minutes and then look at the line by line output and know where the estimator is running high or low. 

I love new construction and it's a great business to be in but it is a very different and more complicated process. I'd recommend trying to partner with a builder that is willing to put skin in the game. It's something I do and it can be a win win for everyone. If you can bring a good deal and some capital to the table you might find a builder that is interested in doing the build on spec especially if it has the potential to turn into something stable. 

Hey Gus. 

Shoot me a PM with the deal info. I am in SC and might be able to help you out. 

Ben. 

The best way to prepare is to learn more about construction and find a contractor you trust. Start by doing some research on the licensing requirements for your state. And then try to find a contractor whose license is most closely aligned with your needs. For example in SC license categories are done by the dollar amount. So if you have a 50K job you are going to want to find the license category aligned with that dollar amount. You can always go up a level or two but be prepared to pay more for the higher licenses as those are generally larger outfits bidding on bigger jobs. 

You can find document templates from the AIA and the ABC (Association of Building Contractors). 

If you are hiring a GC then all you need is a complete scope of work and a single contract governing your relationship. If you are worried about managing a build you can also hire a construction manager or Owners Rep. This person will be paid a flat fee to run the build for you. 

As a contractor I have my own docs that I have everyone sign. If an owner wants to use other docs then I have those reviewed by my attorney or just don't take the job. But generally people are happy to work with what I provide.

As a rule of thumb, the more buttoned up the contractor the more you're going to pay. If a contractor is able to create a super detailed SOW/Bid document and then comes to you with contract docs you can expect to pay a premium for that. Part of that is due to increased overhead and part of that is due to them probably being a better contractor and not as desperate for the work.