How to Start a Home Building Business ($840K/Year)

[@emperorwulf5645]

Hope your channel grows, subscribed 🙂

[@nate_indiana_jones]

Thank you so much!

[@seangates1757]

What about draws, contract specifications, are you doing cost plus or fixed price? How are you managing scheduling and materials? Are you using BIM or a push schedule? 700k for a custom home in todays age is ridiculously cheap in most markets. Assuming your getting the client to carry the loan, what about interest calculations? How much is your jobsite costing you(or your client) per day for interest and insurance? Whats your cap for fees? Who covers schedule delays and the implied costs? Thats just from the business side let alone code, licensing. Permits, inspections....i get your trying to help, and create a channel. But you really are out of your scope on this and while i appreciate trying to inspire the next generation of builders. Your doing them a disservice by making it seem like its any other franchise you can just jump into...

[@nate_indiana_jones]

Thanks for the insight. Would you be open to having an interview and we can post it here?

[@seangates1757]

@nate_indiana_jones I wish I were qualified and confident enough to do interviews on shows like your making. One day maybe. I am currently trying to become a luxury home builder, 5 years actively working towards that goal. That breaks down to 55hr(ish) running a basic contracting company doing sub-contractor work and building references, 7-14 hr (1-2 daily) studying the IRC (international residential code), going to trade shows to start networking and building sub relationships, and squeezing in podcasts and any information I can about the industry. And still many hurdles to go and milestones too achieve. Next I take my ICC test and file an application to meet in front of the licensing board. Slight insider tip, a good (but kinda shady way) to get into the home building industry is to go to Texas for a few years where there is basically no regulations. Get experience, a reputation, a little money, and time to study, and use that to come back to your market too meet any refrence/experience requirements. Assuming your market is more expensive than Texas or just where you'd prefer to be. I live in colorado so that scenario works because the financial start up is much less than I could hope for in my market. But I'm a builder working on his business acumen not the other way around so conventional financing works best for me. Hard loan or construction loan is 12-17% with 20% down. My cost here would be 100k+. In Texas much less, especially because if I personally did it I would do spec homes until I was self-sufficient so a much lower initial investment, assuming a 200k home in suburbia build cost of like 150k (spitballing no idea off hand) youd only need 35kish (Kinda my back-up plan if the board here has issues).

[@nate_indiana_jones]

That’s awesome! You are doing it the right away, I am sure you will be crushing it soon!

[@mexicanboxingkartel8283]

It doesn't take that long to build a custom design home. With the right team will get it done

[@nate_indiana_jones]

Correct! I was trying to be somewhat conservative.

[@Bobberwatcher-l4t]

The first one does :)

[@garrettp.5018]

What was your experience prior to getting into the business? Also, what was your marketing plan to get home building contracts?

[@nate_indiana_jones]

I do not own a home building business. I was reviewing this business and how much you can make. To get contracts, I would create a local marketing plan, this would need to be a little bit more old school. Print ads in the community, home shows, etc.

[@Fi2037]

This dude completely skipped getting a general contractor’s license and other pertinent information. He’s literally never done this before. What BS clickbait.

[@nate_indiana_jones]

Obviously it’s hard to include every little detail. Just out here to help if possible.

[@JayWithTheJuice]

In Texas do you need a general contractor license ?

[@nate_indiana_jones]

Depends on the city and county.

[@All.ThingsRE]

@@JayWithTheJuiceno you no longer need one in Texas

[@teegreenburg]

In Missouri you don’t need one

[@Lukesh30253]

I do kitchen and bath remodels, I think I could build a house i understand how it all works now I just don’t know how to get funding

[@nate_indiana_jones]

A lot of times people get construction loans when a client wants to build.

[@robertsugarland]

But we need to wait 1 whole year to get that 10% of profit !

[@nate_indiana_jones]

Correct… this is a long term business. You need capital to float yourself.

[@JayUrbanMusic]

Love it

[@nate_indiana_jones]

Such a great business

[@AntoniGanchev]

thanks

[@nate_indiana_jones]

No problem!

[@miggys7]

Because people just have $35k lying around to start up this business smh

[@nate_indiana_jones]

Save up money create a plan start a business

[@mexicanboxingkartel8283]

But you do know what you are talking about

[@nate_indiana_jones]

Thanks, always trying to add value out here!

[@jetskispearfishingadventur9704]

As a Builder, I can tell you this guy is way off. Ignore this video. He has zero idea about being a builder. He is parroting some nonsence from other videos that are wrong.

[@nate_indiana_jones]

How am I off? Can you specify?