This is generally due to not knowing the true costs of materials, not accounting for all the work to be done, and surprise problems that were not expected.

Materials and laborThank u

If the interior of a house is almost empty with only wood frame, plumbing, electrial wiring, and HVAC duct, what building material (not including appliance) I need to buy?

Now, I read through a lot of material on this site and understood that it's better to have that under an LLC, to protect my private assets from any mishaps.

How about exterior material...stucco, siding, brick?

A single member LLC is usually eaisly defeated as most owners can't see themselves making out a minutes book authroizing themselves to go buy materials or make an offer on a property, but a well maintained entity would require these efforts as evidence that the LLC was actually a seperate entity from the owner/member.The more you treat your entity as a seperate being the better off you'll be in having it viewed that way.

Even if I have to hire labor it usually comes out to what I would have paid for materials on my own.

Maybe I am missing something, but in my experience with the Rich Dad materials, it has been some pretty good info.

Your goal is to have the nicest house in the neighborhood at the lowest price.That said, you don't want to be much nicer than your competition, just a half-notch nicer...use the same finishing materials, but ensure they're new.

Also further material that indicates the target segment he is probably commenting on: https://www.youtube.com/watch?