I want to become a home builder in the New Braunfels and surrounding areas...... (Austin: 2014)

[chuys1414]

Ok well first things first.
I own a successful drywall company in the New Braunfels area and have been in business for 3 years (I'm not 30 yet either, Im in my early 20s). I work for a number of builders and have maintained a pretty solid relationship with them.
Like everyone, I plan on doing bigger and better things and my ultimate goal would be to become a custom home builder. I am more than friendly with all my customers and every mistake I have done in the past has helped me learn new things and I feel like I can actually take on something as big as home building.

Being in the construction industry, I see what people like. I hear their complaints about other contractors. I know how much houses are selling for and what exactly builders upcharge for and how they deal to make a profit. I dont just focus on the money side though. I examine all phases of construction. I visit job sites and talk to the framers and roofers, etc and even the builders and ask questions about whatever trade I bump into.

I do have other questions though:
How DO I become a home builder?
What licensing, if any, do I need? Do I come up with a name for my home building business and register with the city before anything else?
Lets say I have a registered name and any licensing requirements fulfilled. Do I have to hire an architect to design a home plan for me before I can advertise a home building service?

What would be the easiest way to become one and what are my options?
Cost plus builder, spec build, sell the plan and then build?

It doesn't have to be a step by step walkthrough, I just need a little guidance and how to start. I dont want to start by flipping foreclosures

[elnina]

If you want to be a successful builder, you need to learn how to search for answers.
Here are few links to start:

Texas
Buy, fix and flip in Austin area
Is flipping a home worth it in Austin?
Austin flipping foreclosures
Homebuilder Licensing
House Flipping for Beginners (Part 1)
How to Start a Business Flipping Houses | Chron.com
What You Should Know Before Dipping Into Home Flipping - US News
etc...etc...

Good luck!

[TexasRedneck]

I'm going to be brutally honest with you.....you've been doing one aspect of building for 3 years - and you propose to start building them from scratch. With all due respect - you're going to get your head handed to you at this point. Either from the trades (who know EVERY trick in the book), or a customer with the knowledge to blindside you on a deal.

Beyond that - you don't even know what you don't know. I'm NOT trying to be ugly here, but you need to educate yourself a LOT more, and get more experience under your belt, IMO. Spend some time studying the other trades - get to KNOW some of the old hands and get them to open up to you about the ins and outs, tell you what to watch out for, and tell you how to spot a GOOD hand when you see one.'

Were it me, I'd look around for a good, well-respected custom builder, and see if there wasn't a way to shadow him for at LEAST 6 months, and be willing to answer your questions beyond there. Just remember - he's going to be GIVING you a wealth of knowledge and understanding that took HIM years to develop, so be ready to be his BEST helper, go-to guy, or shoe shine boy if that's what it takes.

Good luck - but slow down and be patient. If not, it could get REAL ugly for you.......

[TrapperL]

Your best bet, get hired by a custom builder as a construction super assistant. You'll learn the processes and what to look for. AS crazy as it may sound, most subs don't have a clue. They hire folks with little to no education and throw them out on the job, kinda of like the blind leading the blind. You, as a super, it's your job to make sure they do it right or you don't sign off on the work so they can draw the money. Obviously, you haven't clue if the plumbing rough is right, or did the framer do the kitchen right and now the cabinets don't fit, or there's no blocking for the kitchens to be screwed to. You can't learn this in months, it'll take you about 5 years and even then you'll be short on the purchasing side, land positions, insurances, bonus structures, designs, code compliance, traffic details, the list is long. Unless you are just swimming in money and can afford to hire the folks that know how to do this, you're about 10 years from becoming a builder that can build a house right. Once you have the ability to write scopes for your company, then you're close to being ready to form your company. If you are swimming in money, I do know folks that can form the company and run it for you that have decades of experience. It will take a few million so you know.

[Eastcoasting]

1. Buy a plot
2. Build a house on weekends and slow times, follow all best practices and have all inspections done.
3. Sell house and hope to break even.
4. Be thankful that you didn't dissolve your drywall biz.

Honestly I would focus on something like building out/accessory buildings with scaleable size and finishes.

Anywhere from chicken coops all the way up thru high end shed/garage/home office outbuildings.

[huckster]

I have a friend that did the very thing you quote here. Built one house. Part time.
He bought a lot, built a custom home for he and his wife to retire in , this was the original plan- and it was so nice that after he completed it, he began to receive offers for the place that became too good to be true.
So they sold it.
Repeated the process, built another house and did the same thing again. Sold it. They were on to something they did not even realize would happen. So...
Next he bought five residential lots, all in a row, and then began those. So it went.

Originally Posted by Eastcoasting

1. Buy a plot
2. Build a house on weekends and slow times, follow all best practices and have all inspections done.
3. Sell house and hope to break even.
4. Be thankful that you didn't dissolve your drywall biz.

Honestly I would focus on something like building out/accessory buildings with scaleable size and finishes.

Anywhere from chicken coops all the way up thru high end shed/garage/home office outbuildings.

[handycowboy]

I live in New Braunfels and have been in the custom home field for around 20 years, albeit it was in another state. If you would like to meet up or chat over the phone pm me.