Home building question

[TODO]

Dont know about Brandon but here in Desoto County there are plenty of spec houses sitting empty that the bank and/or developer would jump at about any offer. I would look around for something like that at a below market price first.

[duck_nutt]

I help a frined of mine build on my days off...he's been doing stuff around $80 a sq ft, but he isn't making any money...he's going up asap. only reason he took the last few jobs was to keep his crews working...at $80 a sq ft, they're the only ones making any money(and not very much)

[deltadukman]

Dont know about Brandon but here in Desoto County there are plenty of spec houses sitting empty that the bank and/or developer would jump at about any offer. I would look around for something like that at a below market price first.

The thing is, either the bank or the developer is holding onto them like they are gold, thinking they are going to get top dollar on them. I know a certain bank that forclosed on an entire development of $275k+ homes. Lots that were selling for about $40k. Had a friend(on here actually) made him a reasonable offer(not a low ball) and the guy at the bank laughed. He is still sitting on most of those too.

Another thing is, these realtors are getting with some friends that are investors and must be getting a kickback on the foreclosures. You cant hardly find them anywhere and when you get to inquiring, then they say they have something in the works. I dont think they are seeling to individuals, but rather bogarting them for their investor friends and most likely taking some type of kickback. Thats my opinion anyway. I've looked at a few and would pay the foreclosure price, only to check back after they sell and see a name of an investor who bought it way lower than what the bank was asking....someone is working the system for sure.

[Bonehead]

Dont know about Brandon but here in Desoto County there are plenty of spec houses sitting empty that the bank and/or developer would jump at about any offer. I would look around for something like that at a below market price first.

The thing is, either the bank or the developer is holding onto them like they are gold, thinking they are going to get top dollar on them. I know a certain bank that forclosed on an entire development of $275k+ homes. Lots that were selling for about $40k. Had a friend(on here actually) made him a reasonable offer(not a low ball) and the guy at the bank laughed. He is still sitting on most of those too.

Another thing is, these realtors are getting with some friends that are investors and must be getting a kickback on the foreclosures. You cant hardly find them anywhere and when you get to inquiring, then they say they have something in the works. I dont think they are seeling to individuals, but rather bogarting them for their investor friends and most likely taking some type of kickback. Thats my opinion anyway. I've looked at a few and would pay the foreclosure price, only to check back after they sell and see a name of an investor who bought it way lower than what the bank was asking....someone is working the system for sure.

Yep

[munyoz70]

To get you an idea of what/who I have working on my side.
Foundation-Good friend
Electrican-Best friend
Hvac- good friend
plumber-good friend
sheet rock-Best friend
trim-good friend

have contacts with
tile/floor sales
framer
brick mason
roofer

I can do these myself
landscape
floor
paint/stain
most trim
carnish work
insulation

[stang67]

The thing is, either the bank or the developer is holding onto them like they are gold, thinking they are going to get top dollar on them. I know a certain bank that forclosed on an entire development of $275k+ homes. Lots that were selling for about $40k. Had a friend(on here actually) made him a reasonable offer(not a low ball) and the guy at the bank laughed. He is still sitting on most of those too.

Another thing is, these realtors are getting with some friends that are investors and must be getting a kickback on the foreclosures. You cant hardly find them anywhere and when you get to inquiring, then they say they have something in the works. I dont think they are seeling to individuals, but rather bogarting them for their investor friends and most likely taking some type of kickback. Thats my opinion anyway. I've looked at a few and would pay the foreclosure price, only to check back after they sell and see a name of an investor who bought it way lower than what the bank was asking....someone is working the system for sure.

That's interesting stuff. How can banks afford to sit on them like that when they are supposed to be the hardest hit by the slow sales environment?

[TODO]

The thing is, either the bank or the developer is holding onto them like they are gold, thinking they are going to get top dollar on them. I know a certain bank that forclosed on an entire development of $275k+ homes. Lots that were selling for about $40k. Had a friend(on here actually) made him a reasonable offer(not a low ball) and the guy at the bank laughed. He is still sitting on most of those too.

Another thing is, these realtors are getting with some friends that are investors and must be getting a kickback on the foreclosures. You cant hardly find them anywhere and when you get to inquiring, then they say they have something in the works. I dont think they are seeling to individuals, but rather bogarting them for their investor friends and most likely taking some type of kickback. Thats my opinion anyway. I've looked at a few and would pay the foreclosure price, only to check back after they sell and see a name of an investor who bought it way lower than what the bank was asking....someone is working the system for sure.

That's interesting stuff. How can banks afford to sit on them like that when they are supposed to be the hardest hit by the slow sales environment?

They cant. Some are just oblivious to reality

[Hybrid Biscuit]

I hope I never have to build again! It was a nightmare! I have never been lied to so much by anyone.... trash everywhere on top of that! Sounds like you have a good list of contacts though. FWIW, avoid Classic Concepts at all cost!!!!

[deltadukman]

To get you an idea of what/who I have working on my side.
Foundation-Good friend
Electrican-Best friend
Hvac- good friend
plumber-good friend
sheet rock-Best friend
trim-good friend

have contacts with
tile/floor sales
framer
brick mason
roofer

I can do these myself
landscape
floor
paint/stain
most trim
carnish work
insulation

One thing I forgot to mention, if your gonna build in the city limits, you are going to have to have permits pulled or they will shut you down. Someone correct me if I am wrong, but the only one who can pull a "whole job" permit would be licensed and bonded contractor who is a GC and not a sub. I may be wrong though.

[munyoz70]

FWIW, avoid Classic Concepts at all cost!!!!

what does that mean?

[Hybrid Biscuit]

That's where I ordered my doors and windows..... stay away from them..... will never deal with them again!

[Deltaquack]

Every town is different.......some require a GC to pull permits. In a lot of delta towns, the homeowner can pull the building permit......then, all subs have to pull their own permits. I'd go out on a limb to say that any homeowner can pull a building permit but would have to get a builder's risk insurance policy......may have a problem with the code inspectors coming by all the time though.

I just built my own house and we were all together building 5 houses at the same time on my street. I as well had good friends doing several of the things in there. We even pulled subs from the Memphis area for CHEAP b/c the market is still bad there, and had Mexicans doing a lot of it as well. You still aren't going to build a very nice house for $80 a ft.....not one that 95% of the population would live in. If you go with things like energy efficient HVAC of at least 15 seer or so, spray in insulation, good energy efficient windows and doors, granite, decent custom cabinets, tile, hardwood, carpet........you won't do it for less than $100/ft.

[Lazy Drake]

The thing is, either the bank or the developer is holding onto them like they are gold, thinking they are going to get top dollar on them. I know a certain bank that forclosed on an entire development of $275k+ homes. Lots that were selling for about $40k. Had a friend(on here actually) made him a reasonable offer(not a low ball) and the guy at the bank laughed. He is still sitting on most of those too.

Another thing is, these realtors are getting with some friends that are investors and must be getting a kickback on the foreclosures. You cant hardly find them anywhere and when you get to inquiring, then they say they have something in the works. I dont think they are seeling to individuals, but rather bogarting them for their investor friends and most likely taking some type of kickback. Thats my opinion anyway. I've looked at a few and would pay the foreclosure price, only to check back after they sell and see a name of an investor who bought it way lower than what the bank was asking....someone is working the system for sure.

That's interesting stuff. How can banks afford to sit on them like that when they are supposed to be the hardest hit by the slow sales environment?

The only thing bankers are above average in is their appearance. Is this a local community bank?

[farmerc83]

Looking at an appraisal now on a new, 3/2, 1485 sqft (heated/cooled) house going for $161,000. Opinion of site value is $40,000 so thats $81.48 a ft on just the home. All brick exterior, architectural shingles, stainless appliances, separate whirpool tub and shower in master bath, 480 sq ft garage and 180 sq ft rear porch. Lows are that is has scored concrete and carpet and pre fab corner gas fireplace. Custom home builders normally take at least 20% on top of materials and labor, munyoz friend could be doing it for 10% or less if he's making money on other projects....that and the fact that the lot will be paid for separately means this could be doable.

The biggest thing I would worry about is losing half of those guys as friends when they are doing work at a discounted rate and you have a walk thru saying some work isn't satisfactory.

[huntersmky]

you can build up to 3 houses a year without being a licensed contractor but there is NO way around not pulling the permits. That has to be done.

To get you an idea of what/who I have working on my side.
Foundation-Good friend
Electrican-Best friend
Hvac- good friend
plumber-good friend
sheet rock-Best friend
trim-good friend

have contacts with
tile/floor sales
framer
brick mason
roofer

I can do these myself
landscape
floor
paint/stain
most trim
carnish work
insulation

One thing I forgot to mention, if your gonna build in the city limits, you are going to have to have permits pulled or they will shut you down. Someone correct me if I am wrong, but the only one who can pull a "whole job" permit would be licensed and bonded contractor who is a GC and not a sub. I may be wrong though.