Dallas-Fort Worth Real Estate Investor Club

New Build Cost

  • 05 Apr 2018 12:26 PM
    Message # 6027544

    I am thinking of getting into new builds. I have been doing fix and flips for about two years now. Need some advice as to what to expect in terms of per sqft cost for a basic builder grade house for about 1500 sqft. Any help will be appreciated


    Thanks

  • 07 Apr 2018 8:00 AM
    Reply # 6051715 on 6027544

    That is not a very easy question, a basic starter house can be from $75/ft to $125/ft.

    We stopped doing new build spec homes about a year ago, they can be profitable, but they can also take a long time to sell. Research your market.

    You need the plans, selections, location for planning and permits and a good schedule.

    What is your sub base relationship, do they work together and can you have more than one trade working at a time to overlap them.

    Time will kill your profits because of holding costs ($100/day), you need to plan and schedule each trade with no lag time.

    Get solid bids from each sub, completion fair date with chargebacks if they go over on their time.

    We were using Buildertrend software now we just use a simple house flipping software spreadsheet for both.

    https://getdpd.com/cart/hoplink/17288?referrer=1htchomtp7lwoc   


    Hope this helps, Make a schedule and an Itemized list for EVERYTHING

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