Over the years I’ve had many of our builder students ask pertinent questions such as what size home do I build; what do I put in it; where do I build it? Looking back it’s easy for me to make these decisions now, but when I first started building in 1975 these were trial and error situations. And my hindsight is crystal clear. It’s very easy for me to look back and see things I wished I had known when I first started building. That’s what you’re going to learn in this article.
You’ll learn the pros and cons of being a speculative or spec builder (as opposed to a contract builder.) If you’re not familiar with those terms, a spec builder is one who will select a site, choose a design, build a home and then sell it to a client. A contract builder is a builder that you hire to build a home for you. By the way, spec building is how I suggest you begin rather than building a home for somebody else. I’ll explain why later.
I’ll begin by showing you how to be one of the best spec builders in your area, even if you’ve never before built a home. I’ll expand this information by discussing points that are unique to spec building. Next I’ll discuss points that are unique to contract building, and points that pertain to both spec and contract building.
A Word Of Caution
I want to stress that when starting your construction business, you must separate your business from your personal life. In the early 70’s I was in real estate commercial sales. I barely survived a major recession. Almost everything I owned was in my name and most of it was repossessed. Had I known then what I know now, I’d have retained that large home, that Mercedes and that airplane. บริษัทรับสร้างบ้าน
In the construction industry there are many things that can happen to you, some of which you have absolutely no control over. According to the 2008 Annual Report by the National Center for State Courts, in 2007 Americans filed over 90 million lawsuits, more than a third of which were civil cases. This does not include the volumes of legal disputes that were settled before a lawsuit was ever filed. Based on the sheer number of legal disputes that arise, in and out of court, one could say that most Americans run the risk of being involved in a legal dispute at some point in their lives – for many people, more than once. This is especially true for those who work in professions with high lawsuit vulnerability such as doctors, dentists and, yes, especially builders! You should invest in hiring professionals to help you protect your assets. It’s easier than you may realize. This is one time you can’t procrastinate. I can tell you some great horror stories but I don’t want to scare you this early in the game. Anyway, don’t live in fear of what might happen. You only lose if you don’t play.
I. Speculative Building
A. How To Be One Of The Best Spec Builders In Your Area
Before you buy a lot, before you buy any house plans, the first thing I want you to do is put together your success team. I call this the Henry Ford philosophy. If you read about Henry Ford, you’d learn that some people considered him to be illiterate. He once sued a Chicago newspaper that wrote an article claiming he was illiterate. In the lawsuit, Henry Ford emphasized that he didn’t need to know everything about everything because he hired experts to assist him in all that he wanted to do. This left his mind free and clear to do all the things that he really knew how to do. Well, I’ve learned from that philosophy myself over the years. I realize there is not enough time in this life to do everything. I now hire experts to assist me in my decision-making, and it has been a positive factor in my success building homes.