Replies

1. 
   JerraldHayes | Feb 16, 2003 06:09am | #1

   Just gotta ask...why do so many people start with "spec building" as

   a goal?

   Thought it was interesting when just a little while back when I realized

   that since starting my career 27 years ago I have never worked on a spec house

   project.

   I've been in on the remodeling of lots of specs but never been a part of

   one going up for the first time.

   In terms of making the "correct" business choice I'm not at all sure "spec

   building" vs "remodeling" is specific enough as far as defining a niche or

   creating a brand identity.

   I also think as far as advertising those ("spec building" vs "remodeling") are

   two wholly different realms to consider. I just mentioned one of the best things

   I ever did as advertising in the Advice

   on remodeling business  discussion.

   Probozo mentions another good idea there and since the whole topic is about

   starting out in the business you might want to read the whole thing. Right

   now it's only 13 posts so it's a short read.

   There have been a lot of other discussions like this over time that if you

   can be a little bit more specific about your particular ideas and goals I might

   be able to point you towards some topics that might help you out.

   ---

   View Image

   "Function is based

   on more than utilitarian factors. Ambiance invites use."- Sarah Susanka

1. 
   jacobelly | Feb 16, 2003 06:42pm | #5

   Jerrald,

   Im much more familiar with new construction, therefor it seems to be the logical choice build new. I say spec. because my license has been active for three months (brand new),thought maybe if I build one to sell poeple will see what I can do.

   Im leery of remodeling, primarily due to my difficulty with estimating and ability to convey to the customer that I am compitent. Dont know until I really get into it. Nobody wants to hear that. Thanks Bobby

1. 
   MikeSmith | Feb 17, 2003 08:20am | #6

   bobby.. spec. building is the fastest way to bankruptcy court..

   just comming here asking is a good indication that you don't have a business plan for your spec. homes...

   if you know about framing .. hire out as a framer to GC's..

   in the meantime chase down those leads.... you'll be surprised that you're often the only one who will respond to some homeowner, and the job is yours for the taking Mike Smith Rhode Island : Design / Build / Repair / Restore

2. 
   Mooney | Feb 17, 2003 04:50pm | #7

   Look up "Spec House From Hell" . More was said on specs here than anywhere else. At least I had my say in the matter. I do specs and repos. Others had good things to say that hasnt been said in this post.

   "Specs are built for the dollar and nothing else considered a close second . Thats investment law . Dont heed the law and end up to be one that used to invest."

   The only way to be successsful in spec building is numbers. Dont confuse custom work with production. You dont build specs to show off your work because they will eat you alive. They are not a game to be played with, but to be treated very seriously.

   Tim Mooney

3. 
   BobKovacs | Feb 17, 2003 10:32pm | #10

   Bobby-

   If you're uncomfortable with estimating, why in the world would you want to start out with something as large as a spec house??  Granted, new construction can sometimes be easier to estimate than remodels due to there being less unknowns hidden behind walls. But, it takes just as much, if not more accuracy in it's estimating.  Which would you rather do- bumble the labor rate for installing 15 lf of baseboard in a kitchen remodel, or miscalculate the rate for 1,500 lf of base in a whole house??

   I've built everything from $2,000 decks to $150 million movie studios in my short (15 year) career in construction, and I can tell you that if I was starting out on my own, I'd stick to the small, in-and-out type jobs.  Hanging doors, crown molding, drywall repairs, an occasional basement/bathroom/kitchen facelift. 

   Starting a spec is a sure path to bankruptcy, especially if you haven't got a good handle on your estimating (and a fat bank account to get started with, since the banks won't lend you money without a track record anyway). Ohh, and if you think you have a hard time conveying to a homeowner that you are competent, try conveying it to a loan officer.

   Just my two cents,

   Bob

   Edited 2/17/2003 2:33:27 PM ET by Bob

4. 
   JeffBuck | Feb 17, 2003 11:54pm | #11

   50-50 you're gonna hate remodeling.

   Whole different world working in homes people are living in......

   Whole different world working in homes people are picking your work apart as you do it......and even more so that nite after you go home.

   Last coupla years...I sub'd many the project where a new const guy was hired on.....haven't seen one stick around yet. That may reflect in part on the company owner.........but it is almost something different entirely.

   Not that you can't do it....just don't expect it to be the same. Probably not any more worries...just a different set of worries.

   Jeff

   Buck Construction   Pittsburgh,PA

    Fine Carpentery.....While U Waite                  

2. 
   BossHog | Feb 17, 2003 05:25pm | #8

   "Just gotta ask...why do so many people start with "spec building" as a goal?"

   I think it's because people don't want to deal with homeowners. Doing the labor part of the work is a lot easier than doing the business/PR end of it. If your dog is barking at the back door and your wife is yelling at the front door, who do you let in first?The dog, of course, at least he'll shut up after you let him in

2. 
   JDRHI | Feb 16, 2003 07:32am | #2

   Hey Bob, not to burst any bubbles here, but if you`re just starting out, forget the niche thing for now. Concentrate on lining up much work in a variety of areas that you are comfortable with. Dont pigeonhole yourself just yet. Over the years, and yes I said years, you`re niche will find you. If spec houses are what you truly want to do thats fine. Right now building a client base should be your main concern.

   As for advertising, I recomend you make contacts. Or use contacts you already have to kick start the business. I`ve found that advertising does little in comparison to word of mouth when it comes to drumming up work. Get to know your local distributors. Shake the trees of any architects you know. Give them a buzz and let them know you`re available.

   We`ve had a bunch of discussions here on getting started. Try using the search engine and see what you can find.

   Best of luck to ya!

   J. D. Reynolds

   Home Improvements

   "DO IT RIGHT, DO IT ONCE"

1. 
   RW | Feb 16, 2003 09:35am | #4

    "you`re niche will find you. . . Right now building a client base should be your main concern. "

   Truer words ne'er spoken.

   Game plan at the outset is survivability, learning curve, and finding out what you do well enough that you might have a competitive edge on someone else. I certainly don't have it perfected, but evolution occurs. Every job and every decision plays a role. Maybe you find you just don't do ladder work. So much for soffits. Or maybe you're fine at drywall, but slow as molasses. Sub it. Repeat business tends to define you. A friend of mine got in good with a property management company years ago. He's still "independent", but hasn't left a 4 block radius downtown in nearly a decade. High rise remodels, tenth floor moves out, someone else has a lease. And there he is. " To the noble mind / Rich gifts wax poor when givers prove unkind" - Wm Shakespeare, Hamlet, III,i,100

3. 
   RichBeckman | Feb 16, 2003 08:54am | #3

   Take business cards to lumbar yards, building supply places, etc. It is amazing how often they are referring customers to trades people.

   Talk to the counter people and let them know what kind of work your looking for so they don't refer the wrong people to you.

   Rich Beckman

   Another day, another tool.

4. 
   BossHog | Feb 17, 2003 05:26pm | #9

   Any newbie herre talking about spec houses is required to read the unofficial "Spec House from Hell" thread.

   My tire was thumping
   I thought it was flat
   When I looked at the tire
   I noticed your cat.