Starting a small building business

[sxturbo]

You need to make a business case,

I assume in the past you've used builders you've been happy with, I would advise sitting down with one and discussing your ideas and presenting monetary values to get buy in. If the figures work they might be interested.

There are builders out there that don't like dealing with the business side of things, so if you can take that away from them and save them having to hunt for work as you would be doing that, it could turn out quite fruitful.

 

[EddieM]

Rather than just a builder, serial house flippers rely on a team or teams of builders, who in order to stay on-board need a steady reliable stream of work, add onto that you also need or may well need an architect / designer. I'll hold my lip on amateur "property developers"

 

[pongoman]

You need to make a business case, I assume in the past you've used builders you've been happy with, I would advise sitting down with one and discussing your ideas and presenting monetary values to get buy in. If the figures work they might be interested. There are builders out there that don't like dealing with the business side of things, so if you can take that away from them and save them having to hunt for work as you would be doing that, it could turn out quite fruitful.

I'm looking for a builder to work with on an equal basis

 

[JohnD]

so you want a builder that will do the work and take the risk, while you take half the profit.

Look for one that plays rugby. There's a fair chance he has brain damage.

 

[RonnyRaygun]

so you want a builder that will do the work and take the risk, while you take half the profit

I agree. I don't see why the builder needs you. Are you going to take him on as an employee, and pay him 25 days' holiday a year, sick pay, NI contributions, guaranteed wage regardless of the amount of work?
If you take on the project management, you might get a skilled general builder who can do all the practical stuff but wants a guaranteed income and doesn't want to have to concern himself with winning work, managing clients, procuring materials etc etc. He might not cost you £75k and a Vectra...

 

[pongoman]

so you want a builder that will do the work and take the risk, while you take half the profit. Look for one that plays rugby. There's a fair chance he has brain damage.

The builder isn't taking any risk as he's not investing money

 

[pongoman]

I agree. I don't see why the builder needs you.

The builder isn't risking his money so he can gain without any risk.

Are you going to take him on as an employee, and pay him 25 days' holiday a year, sick pay, NI contributions, guaranteed wage regardless of the amount of work?
If you take on the project management, you might get a skilled general builder who can do all the practical stuff but wants a guaranteed income and doesn't want to have to concern himself with winning work, managing clients, procuring materials etc etc. He might not cost you £75k and a Vectra...

I'd take them on as regular employees

 

[JohnD]

If you take on the project management.....

which is a premium job, with much demand and high pay for people who are really good. It requires a lot of skill, experience, knowledge, ability and unending toil.

There are, of course, some people lacking one or more of those characteristics. They are not successful.

 

[JohnD]

he gets zero risk

risk of not getting paid.

 

[RonnyRaygun]

which is a premium job, with much demand and high pay for people who are really good. It requires a lot of skill, experience, knowledge, ability and unending toil.

There are, of course, some people lacking one or more of those characteristics. They are not successful.

I've been trying to find out if pongoman would be capable of taking on that role - I haven't quite got to the bottom of whether he would or not...

 

[pongoman]

risk of not getting paid.

Same risk applies to anybody working for a wage

 

[pongoman]

which is a premium job, with much demand and high pay for people who are really good. It requires a lot of skill, experience, knowledge, ability and unending toil. There are, of course, some people lacking one or more of those characteristics. They are not successful.

Let's not get this out of proportion, project management is not rocket science

 

[JohnD]

Builders go bust. I don't know the current rate but they used to be the least stable industry in the country. You are thinking of going into the building business and investing your life's savings and a loan secured on your home.

 

[JohnD]

Let's not get this out of proportion. Project management is not rocket science and you don't need a degree in astro physics to do it. I've been doing it already and I'm not even trained so it can't be that difficult otherwise I wouldn't have done it myself.

So you can pull in £60,000-£100,000 without risking your own money.

Go for it.

 

[RonnyRaygun]

That's no argument you might as well say that anybody who works for a living has a risk of not getting paid - It's not a risk in the scheme of things the person who is buying the house and paying for all the materials is taking the risk

Let's not get this out of proportion. Project management is not rocket science and you don't need a degree in astro physics to do it. I've been doing it already and I'm not even trained so it can't be that difficult otherwise I wouldn't have done it myself.

Right, let me get this straight:

• Your main source of income will be flipping houses.
• Rather than have to employ lots of different tradesmen on an ad-hoc basis, you would rather emply a skilled general builder full time to do most of the jobs that currently you have to organise lots of different tradesmen to do.
• You currently project manage flipping houses, as well as taking on some of the less skilled work.
• You would also like to take on smaller jobs for private clients that would keep your employee busy when there isn't enough work on the houses you are flipping.

1. If you also want your skilled general builder to project manage, what will you be doing?
2. Why do you need a general builder to do that for you?