Replies

1. 
   Bob_Walker | Apr 14, 2000 12:51pm | #1

   *
   My suggestion is to put together a full blown business plan with all of the details and take it to a lender/bank.

   If they agree to to lend, you've passed the test. If they don't, seriously reconsider investing your own money.

   Such a project involves a lot of diverse knowledge, much of which comes from experience. You might want to consider some sort of joint venture with some one who can fill in the holes in your knowledge base.

   Bob

1. 
   Mike_Smith | Apr 14, 2000 02:29pm | #2

   *DAVE..i think you need to set your priorities..you only have TWO house lots, so you could easily spend a year on each.. and then what?...i would keep the lots until you have a better knowledge of what you're doing....go buy a MUCH less expensive lot and put up a small spec house... and learn from that, sell that one and do it again... and then do it again... by your third SMALL spec house , you will start to have a feel for what works, and what doesn't .. then you can decide what you want to put up on your DREAM lot (one) and keep the second for your real DREAM house on your REAL DREAM lot...if you have the financing in hand, be careful to preserve it...one of the problems you will have is OVERBUILDING for your market....the desires you are expressing tend to manifest themselves into putting too much into your house... that you can not recover in the sale..at least not until you also develop your design and marketing abilities... and it sounds like you are still working on the mechanic side of the equation..here's the building development steps...land... design... mechanics (building).. and marketing... so far the only one yu got is the land..if you blow it on your first two times out of the gate, it would be the NORM, not the exception..go practise on something first....Kermit

1. 
   B._Dough | Jun 25, 2000 06:24am | #3

   *My company does custom homes under contract only. I want to start a spec program. Need advise on securing land and getting started in spec building. Any ideas and advise would be appreciated.Bill

1. 
   Ryan_C | Jun 25, 2000 02:18pm | #4

   *B Dough: start a new thread.David:Few in this business find that their own business gives them freedom. Having your own business, especially in the first few years will be more work than you will ever do in a "job". Most that are now home builders got there slowly starting out doing odd jobs or siding or windows, and after many years of losing money, estimating badly, hiring the wrong help, borrowning too much, negotiating poorly, selling weakly, marketing ineffectively, and just making every mistake there is to make, finally learned how to make a living at this.Jumping ship to start building spec homes on the only two lots you've got is taking a BIG risk. You will surely lose money on the first. The concensus here is that we all lost money on our first job.You will probably lose money on the second. Most of us did that too.After you've built and sold a dozen houses, if you're still afloat, you'll know what you're doing with the business end.

1. 
   GACC_DAllas | Jun 26, 2000 02:03am | #5

   *David,If you're not well versed in building and selling spec homes, you have just as big a chance coming out $300,000.00 in the hole.Be careful,Ed. Williams

2. 
   FredB | Jun 26, 2000 08:17pm | #6

   *David:From what you post you have two premium lots that you want to do something with. You also apparently don't want one of them for yourself. Apparently you also know very little about building or construction.Based on that I would say DON'T. Don't build on the lots unless you are the developer with a well reviewed business plan who is hiring a contractor to do the actual work. Anything less will be an insult to the premium property and to your profitability.I also think that if you want your own business that is a separate issue. In my experience the most successful small businesses have been where the owner knows a lot about business and has some good technicals to sell. For most folks that means they take an offshoot of their employment. Or, they ruin a perfectly good hobby by making a business out of it. Seldom does it work to start from scratch in a strange business where you know nothing.

3. 
   Mad_Dog | Jul 06, 2000 02:36am | #7

   *I say, go for it. Life's too short for worry, and you've got the money in the bank. I wish I had it, I'd build those specs. Just play your cards carefully. I like Mike Smith's idea of working into the process.MD

2. 
   DAVID_HASSELBERG | Jul 06, 2000 02:36am | #8

   *
   I have inherited some property (13 acres) and can build two homes on them. I would like to get into the construction trade and start by building these
   homes on land I already own. I have a good job now but would like the freedom of having my own business later. I figure I can come out with
   $300,000 in my pocket since the land has a view of Puget Sound. i'am I crazy to get into the building business. I would have my own money to invest .
   Thanks Dave