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of your work When you are starting out, you can t provide references or work samples This can be a difficult obstacle to clear, but there are some ways to work around the problem If you are building your first house on speculation, you won t have to worry about references or work samples Potential buyers of the home will be able to see what they are getting This makes your job a little easier If you can t afford to take the risk of building on spec, you will have to be more creative in coming up with a way to get customers to accept you If you have been doing repair or remodeling work in your off hours, you might use these customers as references The first houses I built and sold were homes that I built without having buyers lined up for them Doing this created my references for me But when I moved to Maine, I didn t have any references And getting my first couple of contract homes to build was a bit more difficult People would come into my office and talk about building, but they wanted to see tangible proof of my abilities, which I could not show them So I had to come up with a plan To overcome the problem of not having a model or sample home to show people, I changed the types of advertisements I was running The ads offered people a chance to have a new house built at a reduced cost by a builder who would pay them a monthly fee for the first year they owned the home in exchange for allowing their home to be shown periodically as a reference I discounted my prices by 5 percent and offered buyers $150 a month for 12 months as a model-home fee The strategy worked Buyers came in, houses were built, and I was back up and running The discounted price and the $1200 per house for model fees cut my profit on the first two houses I built, but after those two homes were established as references, I didn t need to continue offering my special deal By giving up a little in the beginning, I was able to get off to a fast start You could try something similar, or maybe you will come up with a better idea The point is that there are ways to get around the problem of not having references and sample homes
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How much knowledge of construction do you need to succeed as a homebuilder The more you have, the better off you are But you can get started with a basic level of knowledge and earn while you learn As a general contractor, you don t have to do any of the physical work involved with construction Your primary function once a job is underway is to schedule and supervise workers It is obviously much easier to super-
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vise people when you understand what they are doing and how the work should be done But you don t have to be a drywall finisher to supervise drywall work If a job looks good, you know it When one looks bad, you can see it Code-enforcement officers from the local Building Department will be checking the work at various times during foundation work, framing, and electrical and plumbing rough-ins to ensure that the work meets code By sticking close to these officials during their routine inspections, you can pick up a lot of technical information In theory, you don t have to know much about construction to be a builder who subs all the work out to independent contractors, but as the general contractor it is you who will ultimately be responsible for the integrity of the work Builders with the most knowledge of construction are generally much more successful than people who don t know about the homebuilding process If you have good organizational skills and manage people, budgets, and schedules well, you should be able to become a viable homebuilder A lot of information can be obtained from watching various subcontractors perform their work Ask around, and you ll find subcontractors willing to discuss their work and answer your questions Reading books and trade magazines will add to your knowledge Many specialized trade magazines are free; when you visit a subcontractor s office and see some of those magazines on the table, look for the tear-out forms that will allow you to apply for a subscription There are numerous books and videos available for do-it-yourselfers that give step-by-step instructions for everything from plumbing to tile work You can educate yourself by reading and watching tradespeople at work, but field experience is surely helpful
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