Owner builder edition

Being an owner-builder does not require you to perform any of the construction yourself, although you have the option of picking up a hammer to save even more. As you are responsible for obtaining the construction materials, you also have the ability to better control the types and quality of materials being used.

There are three important skills you should have if you wish to be an owner-builder. The first and foremost is budgeting skills. Without a good budget, you will be unable to provide the materials and payments required to get the job done. Second to budgeting is experience in construction. Not only will you need this experience when overseeing the contractors and for scheduling the work, but most lenders will not grant funds if you cannot prove construction experience.

One way around this is to hire either an on-site project manager or construction management firm. The final skill necessary is leadership. You will be coordinating a combined workforce on a complicated project. You may have to settle the occasional dispute when two subcontractors are trying to work in the same space.

At other times, you will need to relay information from one subcontractor to another and make important decisions on short notice when something goes wrong. One of the biggest benefits to having an owner-builder loan is the ability to oversee the project yourself. Unfortunately, obtaining the loan often requires someone with a certification in construction to be involved in the project.

Thankfully, there are two cheaper alternatives to hiring a general contractor, both with their own benefits and drawbacks. On-site project managers take a large portion of this responsibility off of your shoulders by managing your project during the day.

The downside is that project manager fees may reduce the amount of equity you earn. Hiring a construction management firm is by far the cheapest option. Unfortunately, these firms will also perform the least amount of work. This is a good option for when you plan to oversee the project yourself but require the assistance of someone with a certification in construction to obtain your loan. There are several benefits to having an owner-builder loan which can make life a little easier during and after construction.

The following tend to be the primary reasons people consider getting a loan of this type:. By building your own home, you can create instant equity. The same amount of equity can take years to build up normally, making the loan an investment with quick returns. Owner-builder loans can save anywhere up to 40 percent of your construction costs, depending upon whether you do everything yourself, hire help, or enlist project management. General contractors alone may charge as much as 20 percent for their services, so the more you do, the more money you save.

This money also translates to a smaller mortgage with smaller monthly payments. If you choose to put some of the money you saved back into the mortgage, you can drastically reduce the amount of interest you will be paying off years down the road.

Being an owner-builder means you have full control over the project, from materials to coordinating builders. You even have the option of building the entire home yourself, if you have the know-how. This means things are done to your specifications, and you have the satisfaction of knowing that you had a hand in every step of the construction. This can make your dream home even more special. In most cases, you may find these issues are worth the hassle, but they may prove too difficult if you are starting from scratch.

With the current economy, these loans are becoming increasingly difficult to find. Lenders who offer these loans consider them to be high-risk and often require a certification in construction before they will consider the loan. Due to the added risk of construction loans, lenders generally charge a higher fee for them. Owner-builder loans are no exception, so be prepared for the cost. In many cases, the lender will further protect their investment by requiring two closings: one before you break ground, and the other when construction is complete.

If you change to a traditional loan at some point, you may have to pay additional closing costs. Owner-builder construction loans are often very difficult to obtain due to factors such as risk and the economy. I sat down with the book. At first I was wanting to toss it out the window. Either this guy is clueless, or he's been there before. I finally realized that the realities of running your own project are right on target. You can run your own project and become your own construction manager.

Often the client doesn't have a clue and they are running fifteen subs and don't want to cut loose control and it turns into a nightmare. They are never there, but they hold the power of the purse. When the subs know that you're not cutting the check, they don't paying attention to you. It was very informative and very on target. And this is the wave of where construction will go. A great book to pass on to clients. I've got a client now where they can't get a hold of a contractor.

They've done a lot of footwork, but don't have enough information to take the reins and do it. It's very hard to get contractors right now and this is a great resource for people who could do this on their own. This will give them enough to know what they are getting into at the very least.

It gets crazy with people who don't know what they are doing. A contractor's perspective. We hear how to sell. And we find contractors that just slam dunk people, and we are trying to build a reputation for doing what's fair. I've laid my books open to people. Everyone talks about leveling the playing field, but that's difficult when there's no one to reinforce the certification of contractors.

We find scabs out here who undercut the price but don't carry the insurance, the workmens comp. We often have to go out and clean up a bad mess. If people really want to level the playing field they have to reinforce the certification of contractors. In stead, let's give everyone the information to be a true owner-builder. We're trying to run a square game. We try to make enough profits to stay in business for another day.

We get slammed with high liability insurance, workers comp. I'm all for people being fully informed. If someone had this information and had their project as well planned as it should be, it would be a joy to work for them. There would be very few problems.

That does everybody a service. Santa Rosa, CA. It was more than we could afford. We had two choices: shrink the house we had planned, or build it ourselves. The amazing thing was that we didn't sacrifice anything in the original plan.

In fact, we included dozens and dozens of upgrades on which we found great bargains along the way. We found very little published help on the key issue - saving money - when we were building. So we decided to make it easier for others by writing The Owner-Builder Book. We began by going to the Library of Congress and reading all the books out there on the subject. They were almost all written by general contractors. Believe me, they don't try to help you save money.

Next we conducted hundreds of interviews with subcontractors, generals, lenders, inspectors, and many other owner-builders. We found answers to all the sticking points like: "Where can I get a construction loan?

I also drew on my experience as a former construction industry executive and consultant. We provided templates for the reader to the three key tools needed for success: Written Budget, Written Schedule, and Written List of Features. These tools were almost nonexistent in the literature.

We have been honored by reviews or mentions in newspapers and 20 magazines and newsletters to date. People tell us that our book is enjoyable and gives them confidence to build. Convert currency. Add to Basket. Book Description Paperback. Condition: Good. Connecting readers with great books since Customer service is our top priority!.

More information about this seller Contact this seller. Book Description Condition: Good. Satisfaction Guaranteed! Book is in Used-Good condition. Pages and cover are clean and intact. Used items may not include supplementary materials such as CDs or access codes. May show signs of minor shelf wear and contain limited notes and highlighting.