Tag Archives: owner-builder

Owner Barndominium Builder Construction Loans

Owner-Barndominium Builder Construction Loans

Qualifying for owner-barndominium builder construction loans can be a daunting task. Given 2007-2008’s housing market downturn, owner-builder construction loans are increasingly hard to get but not impossible. An owner-builder is a property owner who serves as general contractor on their own project. A General contractor coordinates everything from budget to hiring subcontractors. Serving as one’s own general coordinator requires work and patience but can provide a huge savings and equity into your property.

Serving as one’s own general contractor requires some research and knowledge. Since most people are not well versed in construction, it would be wise for a future barndominium owner to consult with someone with experience to get an understanding of how a project works from beginning to end. You should look at project size and develop a business plan. This business plan should include a projected budget listing labor and costs, building permits and any additional associated costs.

For further reading on things to complete before going to a barndominium lender: https://www.hansenpolebuildings.com/2020/06/things-to-complete-before-going-to-a-barndominium-lender/

In addition, a project timeline needs to be developed. This project timeline will forecast the anticipated building schedule. It should also include provisions for delays (they will occur).

Once you have completed a business plan, find a lender who specializes in construction loans. To determine if you are qualified for a construction loan, your lender will need to verify your income, cash reserves, debt–to-income ratio and credit score and know you can provide necessary down payment. Down payment will be up to 30 percent of requested loan amount. Borrowers may use land equity as a substitute for a down payment. These requirements will allow your lender to see if you are able to repay the loan. Lenders are skeptical about providing construction loans to individuals. Providing a business plan for them to review will demonstrate you have researched and understand what is involved in constructing your barndominium.

Upon loan approval, you can begin to assemble your construction team. You need to ensure all subcontractors are reputable and guarantee their work, by proper vetting. Request to see previous projects and ask for references. In addition, check to see if any complaints have been lodged through local building authorities.

How to vet subcontractors: https://www.hansenpolebuildings.com/2018/04/vetting-building-contractor/

After your team is assembled, establish frequent site visits and meetings with subcontractors to keep the project on schedule. By doing so, you will be able to adjust schedules should an issue arise causing a delay. Remember this is an investment. If you do not play an active role in your barndominium’s construction, your dream home could become your nightmare.

Your New Building: Can You Build It Yourself?

Can you really build your own pole building?

In short – of course you can!

For those who will look at the plans and read the directions, you will build a far better building than hiring it done. Why?  ‘Cause you will follow the instructions and take the time and care with your building! As I tell most clients who are doubtful they have what it takes –“Hey – it’s not rocket science!” You just have to be willing to read and follow all the directions.

Those people who say to me, “I can build anything” are the ones who really scare me.  I get far more phone calls from these types saying they are “short” or “long” on pieces…and neither one is the right answer. Just about every single time it’s because they did not read the directions!

 Take this simple test to see if you can build it yourself:

  1. Have you read this far and understand what I’m talking about?

Good!  One down and one to go!

2. Do you know what a hammer is because you’ve seen it in the garage or found

one in the kitchen drawer?

Yes? You SCORE!    You are my type of builder – you can build a nice building.

OK – maybe it’s not quite that simple.  But the attitude of “this is a kit and I will have to do cutting, pounding nails and reading the plans and directions” – goes a long way in my book.

Important factors to consider prior to taking on a build it yourself project are physical ability and …time. We’ve had individuals in their 80’s build their own buildings, but they were in good physical condition.  Nothing like Ma out there on top of the building putting on the roof steel – cuz’ Pa is afraid of heights!

Ok  – I’m tattling on myself here – because when my wife and I recently helped one of our grown sons to build a garage…well….yep – I confess – it was my darling bride up there on the roof in the hot Tennessee sun putting on the roof steel and ridge cap. Made me want to marry her all over again!

Time is….yes…money.  You need to weigh in the average number of hours involved in constructing your own building as compared to paying to have it built. The “break even” cost is about $20 an hour.  If you can make $40 an hour doing what you do for a living, you may want to consider paying to have your building constructed for you.  This assumes you are relatively “construction challenged”  – i.e. – “unskilled labor”.

And then there are those who really relish the whole “weekend warrior” thing and take pride in constructing their own building.  I’ve known guys who round up their buddies for a several weekends and take turns working on each other’s new garages.  The equipment, tools, labor…and the beers they tossed down at the end of the day were shared with camaraderie and pride in their joint accomplishment. One family got their entire host of relatives gathered while “Dad” was on vacation – and built him a new workshop/garage…as a surprise. The look they captured on his face when he returned home and had a new garage for his RV was amazing!

Whether you decide to construct your own building to save money, or just enjoy the challenge and adventure of a build it yourself project, make sure you get easy to read and understand plans and directions. These should be plans most engineers would endorse.  This is not a place to “make it up as you go along”.  And definitely is not where you take direction from an old friend because “he built a garage once and it looked ok”.  Do diligent research, get your tools (and friends or relatives) lined up, and then…have fun!

Your New Building: Can You Build It Yourself?

Can you really build your own pole building?

In short – of course you can!

For those who will look at the plans and read the directions, you will build a far better building than hiring it done. Why?  ‘Cause you will follow the instructions and take the time and care with your building! As I tell most clients who are doubtful they have what it takes –“Hey – it’s not rocket science!” You just have to be willing to read and follow all the directions.

Those people who say to me, “I can build anything” are the ones who really scare me.  I get far more phone calls from these types saying they are “short” or “long” on pieces…and neither one is the right answer. Just about every single time it’s because they did not read the directions!

 Take this simple test to see if you can build it yourself:

  1. Have you read this far and understand what I’m talking about?

Good!  One down and one to go!

2. Do you know what a hammer is because you’ve seen it in the garage or found

one in the kitchen drawer?

Yes? You SCORE!    You are my type of builder – you can build a nice building.

OK – maybe it’s not quite that simple.  But the attitude of “this is a kit and I will have to do cutting, pounding nails and reading the plans and directions” – goes a long way in my book.

Important factors to consider prior to taking on a build it yourself project are physical ability and …time. We’ve had individuals in their 80’s build their own buildings, but they were in good physical condition.  Nothing like Ma out there on top of the building putting on the roof steel – cuz’ Pa is afraid of heights!

Ok  – I’m tattling on myself here – because when my wife and I recently helped one of our grown sons to build a garage…well….yep – I confess – it was my darling bride up there on the roof in the hot Tennessee sun putting on the roof steel and ridge cap. Made me want to marry her all over again!

Time is….yes…money.  You need to weigh in the average number of hours involved in constructing your own building as compared to paying to have it built. The “break even” cost is about $20 an hour.  If you can make $40 an hour doing what you do for a living, you may want to consider paying to have your building constructed for you.  This assumes you are relatively “construction challenged”  – i.e. – “unskilled labor”.

And then there are those who really relish the whole “weekend warrior” thing and take pride in constructing their own building.  I’ve known guys who round up their buddies for a several weekends and take turns working on each other’s new garages.  The equipment, tools, labor…and the beers they tossed down at the end of the day were shared with camaraderie and pride in their joint accomplishment. One family got their entire host of relatives gathered while “Dad” was on vacation – and built him a new workshop/garage…as a surprise. The look they captured on his face when he returned home and had a new garage for his RV was amazing!

Whether you decide to construct your own building to save money, or just enjoy the challenge and adventure of a build it yourself project, make sure you get easy to read and understand plans and directions. These should be plans most engineers would endorse.  This is not a place to “make it up as you go along”.  And definitely is not where you take direction from an old friend because “he built a garage once and it looked ok”.  Do diligent research, get your tools (and friends or relatives) lined up, and then…have fun!