Dave Ramsey's Guide To Building Your Own Home

Dave I'm thinking about building a house any suggestions absolutely definitely got suggestions when you're thinking about building a house there's three and maybe four things you must do if you're gonna build a house maybe five but I'll walk you through here's what we do okay there's some sub pieces so three maybe four the maybe four is if you've already picked out the property and bought it and you've already got your Builder and you're doing kind of an independent standalone type of a deal then we will pass on number one but number one is if you haven't then I would get a good buyer's agent realtor at Dave Ramsey calm click on the LP for real estate ELP and get them to represent you through the whole transaction with the Builder help you navigate with the Builder if you haven't already selected it so if you're going in where somebody's building houses a builders got a subdivision going and they're doing a whole bunch of deals and they got houses popping up everywhere and you're gonna run down there go I want that one on that lot and you haven't done that yet and yeah I'd get a realtor in your corner a buyer's agent in your corner because they'll work as your liaison during the construction process and they're gonna work their butts off for their Commission I promise you now number the other three are with everybody okay there are three things that run a building job a building job is simply a project it's project management's all it is if we're doing a project here developing a product we're writing a book with Chris Hogan on millionaires okay Chris Hogan's writing a book on millionaire so that's a project how you do that well projects all need basically three things I need a blueprint which is how the project is going to be built what's the house going to be you need a detailed blueprint that you and the Builder are in agreement on if you don't already have that while you're drawing it involve your Builder with the architect so the two of them are working together to develop the plan so the architects not drawing something stupid that's that's ridiculous to be built our super expensive because they went to art class and don't know anything about building okay so you got to have the balance in there but if you've already got your blueprint you got your blueprint that's thing one this is one of the three pieces of paper that manages a building job the second piece of paper is do not engage in a building project without a detailed schedule a schedule when we built the homes that we built we had a spreadsheet and before we broke ground we knew the week the trim Carpenter was going to show up we knew the week the painter was going to show up we knew the week the roofer was going to show up we knew the week the grading was going to be done on this or that oh you know with bushes are going in on this date we're gonna get the co the certificate of occupancy on this date and so you've got you begin with the end in mind on the schedule you got your blueprint you got the schedule that we're gonna build it then you could tell if the builders off-track because he's building something that's not on the blueprint or he's off scheduled because weather's been bad or he hadn't done a good job of keeping the sub scheduled in but if you start a house in October and you know March the 4th the trim carpenters supposed to be there you can already schedule the trim carpenter and so you don't end up without a dad gum trim carpenter when you're supposed to and right now there's a shortage labor in the building business and if you don't have your subs lined up all the way out you're gonna get messed over on your schedule so a schedule and a blueprint the third piece of paper is a budget you know budget which we're building to and when they come in go well we're oh you know when we can't we can do this on budget what do you mean you can do it on budget this is the budget this is what we said and it keeps you from doing stupid stuff we're building a house and the decorator came in and picked that expensive carpet for the downstairs nobody goes downstairs much and she's blowing our whole carpet budget our flooring budget only stupid downstairs carpet because decorators being a decorator right I'm like no you're just Dave Ramsey building this house kiddo so put the cheaper carpet downstairs nobody goes down there anyway and get your dadgum flooring budget back into because we're not going a bazillion dollars over a flooring budget and so you can build a house on budget on schedule and then every Friday we met with the Builder and we looked at the blueprint the schedule in the budget and made sure everything that was done that week was lining up with all of that the blueprint the schedule and the budget the blueprint the scheduling the budget every Friday morning and of course we had the money lined up so we paid them every Friday morning and they were able to pay their subs everybody's happy everything stays on track we finished the houses early and under budget the last two houses we built can you imagine that can you imagine building the house for me how big a pain in the butt that is but you know what we didn't change 63 things during the way if you did more change orders you do the more you're gonna lose your but there it's hard on the Builder it's hard on the subs it hard on the schedule it's hard on the budget so make your mind up and stick with it we did two three change orders on both houses I mean almost no change orders we had some big stuff we got in their way now this isn't right we got changed this and we spent and it was on us and then if it's on me and then mixed in this is you as the person building the stinking house have to do your job and that is stay ahead of them on the selections when you don't go pick out the carpet you don't go pick out the light fixtures you don't go pick out the the faucets you don't go pick out the plumbing fixtures months and months and months ahead of when you need to then you're slowing the whole thing down and then you go ahead experience building because you were so freakin indecisive you were impossible to work with every time I give this talk builders all go god I wish I could get all my people to do this but you need to demand it because they're that you stay mad at your builder and it's your fault now sometimes builders are you know doofuses to like any other business but if you've got a quality realtor helping you lead your way through this and you'll do the budget the blueprint and the schedule the budget the blueprint in the schedule manage to that and you stay ahead of them don't you be the problem you make your decisions and a friend of mine took him an extra year to build his house because he couldn't get his wife to go pick out the crap I mean I'm having a fit and she couldn't maybe run I'm gonna kill her well you telling me she came back over my a year you know we enjoy the process I don't enjoy process I want to get it done I'm like why am i building a house so because it's a game number build it to move into it so you stay ahead of them you don't stop them from anything you don't cause you don't get in the way you don't be a problem child and don't you go over on the site and start telling sub stuffs wrong you're not running the job that general contractors run the job if you're gonna go around the site the only thing you do is take food smile and tell everybody wonderful they are and if you've got a problem you call your builder you call your general contractor don't you go telling the electrician of plugs in the wrong place they get confused who the boss says then stay out stay in the chain of command keep stuff picked out be a pleasant experience and you will have a pleasant experience manage you don't like it's a project I mean people wander around the barn building these houses and it takes you forever to get them done I've got some friends that build houses here in the area and they refuse to build houses for people they build them the specs and when they're done you can move in them you can buy but they won't they won't but they won't let you be in vogue because because people drive the Builder crazy by being indecisive and you know changing stuff halfway through on a country-music girl in our area was building a house and you know she and her decorator changed everything it took him an extra year and they spent an extra 4 million dollars under nightmare as opposed to before me another house end up being 8 million dollars and took him an extra year to build it all because she changed everything she built stupid house twice as she was going up just change change change change change change change change change the whole house has change orders I mean is ridiculous no that's that's a dumb way to build a house it drives everybody crazy and makes the decorator money makes the Builder money makes the Builder crazy and makes you the customer crazy and broke figure out what you're gonna do and do it have a clear path to building a house and you'll have a great experience if you do that I have had great experiences now nothing had no project of that size happens with that glitches and without you having to have some discussions from time to time like get your butt in gear kind of discussion but that's true of managing any project you gotta line the the labor sources up and get things moving like Duke you guys are two weeks behind how're you gonna make it up I don't know it's been raining well make it up I mean wasn't we I come over here you ain't working it's two o'clock now afternoon or the flip are you you know you have some of those discussions right but you don't can't have those discussions if you're not on schedule and there's not a schedule so lay that stuff out and again if you're starting from scratch get a good buyer's agent on the front end to walk you through the process and use those three things the budget the blueprint and the schedule the budget the blueprint in the schedule this is the Dave Ramsey show

Channel: The Dave Ramsey Show

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Keywords: Dave Ramsey's Guide To Building Your Own Home, dave ramsey home, home dave ramsey, dave ramsey, dave ramsey mortgage, the dave ramsey show, dave ramsey home buying, dave ramsey buying a house, debt, money, dave ramsey home mortgage, mortgage, dave ramsey baby steps, dave ramsey how to buy a house, dave ramsey on buying a house, dave ramsey buying a home, dave ramsey first time home buyer, dave ramsey show, dave ramsey live, dave ramsey house buying

Id: 99vVvznj0P8

Length: 9min 31sec (571 seconds)

Published: Thu Feb 01 2018