What is involved with building a house, and is it worth it?

[Byte Stryke]

With the housing market on the upturn, we have decided to sell our home (since we are no longer upside down) and purchase a new home. We are looking for a ranch style home on at least a couple of acres, preferably near the Dallas area but open to other locations for the right deal. Budget it $120K.

If we go the typical route, and buy a home that is already built, we need at least a 5% deposit. The problem with this route is, investors are scooping up all the homes with cash. This happened to a buddy of mine. He put bids on 10+ homes at or above asking price, but was outbid each time.

How difficult is it to go the other route? It would be cool to build a house to my design idea, and also save a little money in the process (or at least get more bang for the buck). I think acquiring the property would be easier, as investors arent knocking each other over to buy and then rent it out.

Would I need to get a loan for the property and another for the materials, and yet another for the contractors that I hire? How does that work. Thanks for the help, I am clueless here.

I bought a Fischer and I regret it...
I'd have been better off buying a doublewide

 

[roundhouse]

Lot cheaper to buy a foreclosure than to build a new one
Less headaches too

Just about every subcontractor you hire is going to try to cut every corner and that's presuming they actually know what they are doing which most dont

Plus whatever time they say it will take. Just double that
And you will be close to the actual completion date

Plus a lot of subs will buy materials collect the money from you pocket it, not pay the supplier and the supplier can and will come after you for the money

 

[JustAmused]

Lot cheaper to buy a foreclosure than to build a new one
Less headaches too

Just about every subcontractor you hire is going to try to cut every corner and that's presuming they actually know what they are doing which most dont

Plus whatever time they say it will take. Just double that
And you will be close to the actual completion date

Plus a lot of subs will buy materials collect the money from you pocket it, not pay the supplier and the supplier can and will come after you for the money

This is very true. If you have zero experience in dealing with subcontractors get someone to help you thats In the game and dont hire a guy because he was alot cheaper than the rest. He is because he missed something or is a POS and may never get the job done other than cashing the check you gave him. Hold there feet to the fire to stay on schedule and hold there check if they dont and let them know it. Set up joint check payments to them and there supplier. Check references and go look at work they have done. Good subs will be glad to show work they are proud of. Bad ones just show excuses.Many think of themselves as an "accountant with a hammer" just get in blow it out and get on to the next job. They want quantity over quality.Ive been on the GC end for almost 30 years and know all the games. If you have someone on your side to help out you will get through with alot less headaches and ulcers and have a nice ptoblem free home in the end