All Forum Posts by: Sue Hough

@Emanuel Eyssallenne hello and good morning!  I understand you are new (from your tagline) to real estate.  I would like to point out some construction "facts" which may help you moving forward;

1. You may need to partner with a GC to build your duplex as most lenders will not consider you for the project due to lack of new construction experience.

2.  There are a multitude of variables which play into the development process well before construction even begins.  Here are the key items you need to address before the land is purchased;

• You will need PERC testing to determine if the land/soil can support septic and absorb water.
  
• You will, most likely, need an environmental survey.  Which tests the soil for toxicity and to determine the land is free from toxins, old oil tanks and anything which may be harmful in the land.
• You will also need soil borings to determine if the land can support a structure
• Check with the Fire department to determine if they require any access roads and the weight it needs to support
• Utility and water access and installation
• You may need a plat of survey and topographical survey - this is likely

Consulting with the local building department to determine what items are required is the best approach.

Good luck!!

I am incorporating several tree houses in a development I am working on and because they are such a unique experience I have found every tree house experience is rented out 12 months in advance and attracting top dollar.  You can search your local area to establish comps through visiting various short term vacations sites (Verbo and Airbnb).  The market is very impressive with a complete investment pay down in less than 36 months.

Good luck!

@Cody Woods great question.  How about taking the most direct route and...”ask” your friend what it would take to lock in your pricing now.  As a builder, there may be other incentives which are appealing to your friend, or he may be unable to accommodate your wishes. You will never know until you ask.

Good luck

@Edward Moore you most definitely need insurance for the property which is held in a separate entity. Your liability insurance as a GC does not cover the building itself, the land and any claims which happen at the home ie; a child walks by and falls on a rusty nail and claims you are negligent, a contractor injures himself claiming it was the owner of the home's fault, the buyer of the home claims the LLC was at fault and misrepresented some fact. The common thread here is the word "claim". Anyone can sue you for anything irregardless of fault and need the insurance to protect yourself.

Good luck!

Congratulations on your first investment property! As a builder and investor myself, I can’t help but notice the cabinets look like they are in very good shape. If this is a rental property, installing new cabinetry will not bring you more rent. A little trick are use is to find a nice boutique hardware store and install beautiful hardware on the cabinets. It makes all the difference in the world and can save you quite a bit of money.
If this is a property you will be selling, I do love Cabinets to go as well. Have use them in many projects and with some nice hardware it looks stunning. May I suggest running a bead of liquid nails how long the frame corners while you are building the cabinets. It makes the product much stronger for the long-haul.

Good luck!

Keith,

Can you please clarify what your question is and how this community can help?

@Deisy P.. Hello to you and I hope you are having a wonderful day!  I am a solo woman contractor without a male counterpart.  I totally feel your pain and understand where you are coming from.  Please don’t be discouraged because you are a “woman”, what you have described is being “green” and believe it or not, men go through the same thing.  Being in this business for over 20 years, I’ve had the opportunity to watch my male owned contractors struggle with just about everything I experienced, with the exception of Imposter Syndrome. Imposter Syndrome can get the best of me on a regular basis and it’s sneaky, even though to outsiders I appear to have my sh*t together, it still gets me down.

I would love to chat with you, if you like to support each other.  You can reach me directly from my bio or message me. Thank you  Daisy!

@Matt Nico I am working through a ground up development in Tennessee and have found the State has quite a few incentives and grant money available for the use of solar panels. This is coming from a Federal source, so I would imagine Florida may have opporunities as well. I would also like to recommend the new solar tiles produced by Tesla.  They are recyclable and look nice, I call that a win-win!

Good luck!

@Jay M. I misunderstood your investment portion, my apologies.  Then, if you will allow me to change my position, the deal structure seems fair all around if you are happy with it.  

Good luck!

@Jay M. At fist blush it appears the landowner is taking advantage of your naivety.  The question here is; why would you invest hundreds of thousands of dollars for the opportunity of the possibility of getting paid, and you do not know the exact price? (Based on the fact you will not get paid until the homes are sold)  The landowner holds the cards and you are at his/her mercy to pay you fairly and conduct his/her business in a manner which allows for profit.  As @Greg Dickerson stated you should NEVER discount your rates or profit for this type of venture, this puts you out of pocket even further. Please contact a great contract attorney to provide you with the advise necessary including legal rights to the homes you build.

Good luck!