Remodeling Can Be A Challenge

A major home addition or remodeling project can be a very daunting process for the homeowner. Defining your specific needs, finding an architect, working with them through the process of refining the design, and then selecting a qualified builder all can be very time consuming and frustrating. And there can be pitfalls and unforeseen expenses along the way.

To define your needs and acquire architectural drawings without knowing how much the project will cost to build can send you back to the drawing board if it doesn’t meet your budget, requiring you to go through the steps again and incur additional design costs. Once a project is underway, it is quite common for conflicts to arise between the architect or designer and the builder, especially if the homeowner asks for changes along the way.

The Design/Build Alternative

Design/Build is an alternative approach that streamlines the process and enables budget discipline from the beginning and all along the way. The design/build contractor takes full responsibility for design, construction, and satisfactory completion, delivering the project on time and on budget. In this method, as ideas are developed, all team members make decisions in a collaborative approach. This provides greater efficiency and a more satisfying result for the time and money invested.

A company with both design and construction expertise, as well as systems to control costs can provide pricing as soon as the scope of the project is determined. The architect, engineer and contractor are then able to focus on the project with an emphasis on quality, rather than protecting their own individual interests. The lines of communication are simplified and chances for misunderstanding are reduced. The construction expertise of the contractor and the aesthetic and ergonomics expertise of the design professionals are melded to produce a greater value for the homeowner than could be realized if both were working independently.

The client saves time and effort by dealing with a single source for all matters instead of separately with a contractor, an architect, an engineer, and subcontractors. Overall time to design and build the project is substantially reduced because design and construction activities overlap. For instance, a foundation can be poured to take advantage of favorable weather while choices of flooring finishes are still being finalized.

How the Process Works

The process begins with a meeting between the design/build contractor and the homeowner to discuss what they want to accomplish with the changes in their home, and to understand their budget parameters. Then an Existing Conditions Report is developed, a detailed survey of the property that includes measurements, photographs, structural elements and mechanical systems of the home.

Based on this report and the budget parameters set by the homeowner, a general budget range is provided and design discussion leads to a Design Contract. The next step is to develop conceptual floor plans and elevations utilizing “real time design.” This computer-based collaborative process makes it possible for the architect, engineer, and builder to meet with the homeowner to show renderings options for how the new remodeled space can actually look and integrate with the rest of the home before the investment is made in detailed drawings and plans.

Three-dimensional visuals are shown on computer screen or projected on an entire wall that visualize room layouts, surface materials and the location of built-in elements and major furniture pieces in the remodeled space. Real time design is a participatory process for the homeowner, making it easy for them to compare what options can look like and also to make changes in design and visualize them right on the spot. It also enables discussion of the budget implications for changes that are considered. With agreement to conceptual drawings, work is then begun on detailed plans for the project.

Selecting a Design/Build Contractor

In selecting a design/build contractor for your remodeling project, it is important to thoroughly research any company you are considering. Make sure they have done similar projects on homes like yours. Ask for references and be sure to ask about their satisfaction with the process, cost controls and of course the end result. Ask is you can visit them to view the completed projects for yourself. And be sure you meet the person who will manage your project. You may also want to also inquire about the real time design capabilities of the firm.

11 Niches for Mortgage Originators

Wednesday, October 25th, 2006

Marketing to a niche is my favorite way to get results. Why? Because you know better what your target customers need and want, compared to simply marketing to the general public. The more you know, the better you can tweak your marketing message and boost your return on investment (ROI). Niche marketing applies to many businesses but following is a list of eleven niches specific to originating mortgages:

Purchase Loans. We start with one of the basics. You can
find subsets of niches within the purchase niche like FSBOs, Investment Properties, Land/Farms/Ranches, and referrals from Realtors. The various sub-niches represent a different group to whom you can market, all of which have different needs and interests, therefore they will likely respond differently to your marketing materials.
  Construction Loans. Much like purchases, construction loans have sub-niches like Custom Home Builders, Subdividers, Condo/PUD Builders, Owner-Builders, Second Home/Vacation Home Builders.
  Loans for Home Repairs. There are a wide variety of needs home owners might have when it comes to home repairs, including: updating roofs, windows, doors, heating, air conditioning, or other worn or outdated basics of the home. Home Repair customers might also be interested in finishing a basement, remodeling an area of their home, or adding a pool in the backyard. All these repairs and updates require money. Imagine the opportunity of networking with roofers, HVAC companies, window and door companies, etc. They have customers that need the money you can provide them.
  Converting ARMs. This particular niche is hot right now, with rates on the rise and many ARMs set to make their first rate adjustment in the near future. You can get a list of borrowers with ARMs from your local county records and set up a simple mail merge in Microsoft Word to send a customized letter reminding the borrowers that their rate may soon increase. The more targeted you get, the better.
  Mobile / Manufactured Home Loans.  If you can find a good lender or two with some good programs for manufactured homes, you can make a nice living focusing on these types of loans.
  Foreclosure Bailout Loans. Yet another niche that requires knowing what wholesale programs are available to fund these loans. Find some good ones and you can make a good living working this niche.
  Chapter 13 Bankruptcy Loans. FHA is your best friend when it comes to Chapter 13 BKs. Study up on the requirements under FHA and find other wholesale programs that allow recent BKs and you’re well on your way to working a solid niche. Here’s a direct quote from HUD’s website:
A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower’s payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

Debt Consolidation Loans. This niche is almost too big to be called a niche, but it can’t be forgotten. The only problem I have with this one is that it’s one of the most competitive. SmartLeadz generates leads from qualified and motivated borrowers in need of a debt consolidation loan every day!
 

Cash-Out Loans. Same deal for this niche – not very specific and could probably be combined with debt consolidation.
  Rate and Term Refis. Perhaps “refis” should be the niche with debt consolidation, cash-out, and rate & term as the sub-niches. However, it is probably easier to find data that will allow you to target borrowers eligible for rate & terms than it would be to find those interested in debt consolidation or plain old cash-out refis.
  FHA Streamline Refis. This is it’s own niche because of the nature of the FHA Streamline. Easy, fast, and somewhat neglected. Loan Officers can do well focusing on this niche. REVERSE Mortgage: Target seniors in your area that either have a high amount of credit card debt (over $20k) or who have struggled with their mortgage payment. You can use CreditSure data to target qualified borrowers and use a targeted direct mail campaign to generate a steady flow of qualified leads.

Most people start a business because it’s their passion and they can’t imagine their lives doing anything else.  They also believe in the creed that “if you enjoy what you’re doing, the money will just follow”.  This is true.  Yet, sometimes, getting the green bucks to tag along is easier said than done.

If you are a budding contractor, your best bet lies in getting high quality contractor leads.  The leads will help you chase the elusive customers that will bring life to your company.  With today’s mad scramble for the proverbial place at the top of the heap, you should do more than just being there.

So, if you are curious as to where you can obtain high quality contractor leads, keep on reading.

One is to search for companies who can pair the services that you offer with the potential clients’ meticulous stipulations.  Sometimes, they can be found in online sites marketing their business while others have actual offices in the “real world”.  Checking your local trade and department agency might help you out if there is an available one near your vicinity.  The benefit of succumbing to this method is that you are given high chances of landing a good project while weeding out the ones who are not really interested in your services.  Typically, an account manager is assigned to be of assistance to you.  You may voice out your concerns to that person and they will answer your queries without undue hesitations.

Of course, as with everything else, it comes with a price tag.  Usually, they will charge you a minimum fee.  It may be as low as $5 or it may be as high as $80-$90, depending on the size of the project that necessitates implementation.  Don’t be too much of a spendthrift that you can easily disregard this idea.  Consider it as a vital investment to ensure your success in the long run.

You can also scan newspaper ads for prospective jobs.  Check out the local daily so that you are in the know about the latest happenings in your community.  It’s a surefire way to position your company in case there are ventures that need to be completed.

A promotional spot on the television might also help you in attracting high quality contractor leads. Majority of the people are glued in front of the boob tube for a few hours each day and airing an ad in this medium will help get your message across.  They can easily remember your firm should they want something in their house constructed or remodeled.

We often come across the woes of a home buyer in the consumer complaints column of the newspaper. For instance when the construction was started the building had a different plan and later the size of the floor plans for living space and even bedrooms were changed. There is no cross ventilation in the rooms which makes them unhygienic and unfit to reside in. The paint finishing is also floor and so is the wood polish. Within a few months of possession there is seepage problem in the kitchen and with the monsoons creating havoc in the city, life is unbearable. No sunshades were provided as promised and the tiles are placed in a poor fashion. The rates for modular switches he provided were double the market price of a quality brand. Even the sanitary fittings were not Parry ware.

Does this sound familiar in real life? Almost all of us must have heard such complaints from first time buyers. We have also read news upon how buildings have collapsed and ugly cracks have appeared on landmark Residential Projects with the passage of time. All this and many more reasons make it absolutely essential for a home buyer to be aware of the Construction Quality of a Project.

A home is for a lifetime unless we purchase it as an investment option. In India home buying is like a dream come true with thousands of sentiments attached to a new home and a new lifestyle. Yet simultaneously its also true that real estate is one of the best sectors to churn out money from and this generally leads to unscrupulous developers duping innocent home buyers.

Hence it becomes absolutely essential that while buying a home an individual buys the concept and reputation of a builder as well.  There are Builders in Hyderabad who have come out with techniques to ensure that there is no compromise on the quality while the construction progress slackens in the downturn. For instance Aliens Group has introduced a tower crane at the construction site which will help to fulfill the claim of the builder to build one of the tallest Residential Projects in Hyderabad. They have also introduced a raft foundation concept which will enable to speed up the construction process without compromising on the quality. Raft Foundation

Isolated footing is used as individual foundation helps in transferring the load to the earth however limits load and cannot withstand extra load as there are no links between individual footings. Raft foundation is a mass footing/foundation wherein a single mass takes the load distributes uniformly over a large area and to the earth. This builds stronger foundation and increases the life of the building.

The structure is built on RCC (Reinforced cement concrete) framework which gives well defined requirements during any eventuality.

Normal building consist of columns which is designed on concrete frame structure cannot withstand heavy wind and earthquake force along with the dead load (building weight) and live load (people living in the building and things being used by them) which are acting continuously on it where as sheer wall in a building uniformly disperses wind pressure and get strong grip to the ground thus resist any external force. Sheer wall helps in uniformly distributing wind and light at all direction hence benefiting people living in any part of the building with proper ventilation and light.

If you are considering a major kitchen remodel, you will certainly want to hire a quality kitchen contractor for home projects. Kitchens involve a number of specialized tasks, some specialized knowledge, and serious attention to safety. While most anybody can probably knock out a wall inside your home to enlarge a room, working with a kitchen remodel is a bit more challenging. Because there is so much opportunity for fire in a kitchen, it is critical that your kitchen contractor provide quality work at every step and attend to ways to reduce the risk of fire or other problems.

Key elements of a good kitchen remodel include:

Safety

Accessibility

Functionality

Attractiveness

Flow to the rest of the house

When you hire a quality kitchen contractor for home remodeling, you can have a high level of confidence that the contractor is knowledgeable of safety issues and ways to protect your family and your property. A quality kitchen contractor for home remodeling will also have experience with various kitchen designs and floor plans. This is important in creating a finished kitchen that is functional and accessible. A quality kitchen contractor will also have experience in designing and making the kinds of modifications to cabinets, counters, and the like in order to make your kitchen as attractive as it is functional.

A high quality kitchen contractor for home remodeling is accustomed to building kitchens in homes. This is different from building commercial kitchens. It is also different from most other rooms in your home. A high quality kitchen contractor for home remodeling will be able to advise you on materials and design, as well as building the kitchen you truly want. These specialized contractors can often help you avoid mistakes, such as putting the refrigerator at the opposite end of the kitchen from the stove. They also can help you save money by choosing materials and fixtures, such as cabinets, hardware, plumbing fixtures, etc., that are likely to meet your needs without over-building the room. For example, you might think you need to buy cabinets that go to the ceiling. A high quality kitchen contractor for home remodeling will be able to save you money and create a more attractive space by suggesting that you not use cabinets that go to the ceiling, but use the space on top as a shelf. Most people who have cabinets that go to the ceiling end up with a top shelf they cannot use because it is unreachable.

If you are investing in a kitchen remodel, it is important that you know the contractor will provide quality work. Cutting corners in a kitchen can result in fires, damage from water leaks, and other problems. A quality kitchen contractor will not only remodel your kitchen, he or she will do it in a way that protects your family and your property while creating an attractive and functional room that you will want to be a focal point of the home.

Copyright 2007 by ABCD Publishing

When buying a television or appliance it is best to shop around. But when looking for a service provider like a hairdresser or dentist do you really want the one that charges the cheapest price? The same is true with a home remodeling contractor. The general advice people receive when they are considering a construction project is to solicit bids from at least three contractors. But do you really want the cheapest contractor? Are you going to make your choice based only on price?

I’d like to introduce you to an alternative to competitive bidding which you may not be aware of, a negotiated bid. This is not a situation where you haggle the price with the contractor. Rather, you and the contractor become allies in making your project a reality.

The procedure for negotiating a bid goes usually goes something like this: First, you pick a contractor you like and trust before the design process has begun or is in its early stages (there are many ways to find a good contractor; referrals from friends, NARI.org or NKBA.com). You and the contractor work together as a team to develop a project which fits your needs as well as your budget. This is a simple explanation of the negotiated bid process. You’ll probably require a bit more information before being sold on the concept but before we move on let me draw your attention to a few key words which need to be understood in context: trust and team.

This is a different relationship than most people have with a contractor. The contractor is a valued member of the team. He gives his input during the design process and based on his knowledge of construction and what really happens on construction sites he contributes valuable information to tweak the design in order to maintain the budget. It is a powerful collaborative effort.

During this process you will become more educated about the impact of each decision you make and how they affect the overall cost of the project. You will be pushed to think through details and make decisions early in the process. This is one of the best ways to control the dreaded “budget creep”!

Additionally the contractor will be able to let you know what alternatives are available and how they can affect both cost and design. For example, suppose you want to add French doors and add a deck outside your kitchen. The initial design idea shows a door which will have to be custom made, with transom windows above. The contractor’s preliminary estimate on the deck and door work is more than your budget. However, by collaborating with the contractor it is determined that a simpler stock French door unit will significantly lower costs. As you can see, the contractor is working with you to create a project that call be built within your budget but still satisfy your desires.

Another significant point to consider is that you and the contractor will have developed a good working relationship. All too often in a competitive bid environment the potential exists for a design professional to be aligned with the owner against the contractor in an adversarial relationship. If all parties involved are working together this is less likely to happen.

It must be made clear that the contractor is most likely not going to give you his time and advice for free. Remember that he is bringing you a wealth of knowledge that may save you a substantial amount of money and aggravation. You should understand that during this pre-construction planning you will be charged for the time that your contractor spends. Some contractors request that they be paid an hourly rate for the planning work they do; others might request payment only if, for some reason, they don’t end up doing the job. In any case, this usually runs between 4 percent to 8 percent of the overall cost of the job, depending on the size of the project. This is well worth the investment as the contractor’s input before construction might save you thousands of dollars.

Should you put your project out to bid? Or should you find a contractor whom you can work with to negotiate the project? If you are concerned with overall value, the quality of the construction process, as well as the quality of the work itself, and you want few I surprises, I strongly suggest you negotiate the bid.