What are the biggest mistakes? PLAN to make money by sticking to a plan.
These are the most important decisions in the following order of importance.
New Builder’s most frequent mistake is being too cautious, too careful and procrastinating when it comes to make a decision.
1. New Builder’s will sacrifice good Location: Location, Location, Location: Don’t cheap out on your location. If you can afford to build in the GTA, that should be first choice.
2. New Builders wait too long to get pre-approval for your Construction Financing: If you are rate sensitive, fee sensitive, forget all about construction financing. You’re not in reality. This is the most expensive loan, and the riskiest loan for a lender. It’s more expensive then regular private loans and are high maintenance. I have already blogged about what it costs. Please see my blog.
3. Your a New Builder, Know What You Want: To be successful building small projects to make good money, you need to know what you want to build. You should have a plan where to build, what style of project whether it be modern, traditional, etc. All these decisions should be made in advance of starting this process.
4. New Builder Mistake Not Having a Professional Team: Have a solid relationship with a lawyer, your real estate agent, your subcontractors, architect, building department, inspectors and even if you have never met these people, you should meet them and they should be able to provide credentials if you have never worked with them before.
5. Wasting Time: Buying a property and then spending huge money to get permit ready, and not building because you’re not sure of the market, not sure about your financing, not sure about your mortgage broker, not sure about your trades, NOT SURE, NOT SURE, NOT SURE……. All these things should be done first before you spend huge money on permits and drawings.
I’m happy to finance and assist you in completing your project but I will have doubts about your abilities if you have wasted over a year of your time procrastinating and getting nothing done. I have seen this happen and its very difficult to work with them or move forward.