How much does it cost to start a home building business?

• $20,000 Marketing (Online, Physical, Mailers, Conferences, etc.)

• $500 - Website and Social Media Creation

• $10,000 - Home Blueprints

• ​$5,000 - Insurance - ​If you need insurance, reach out to Wexford Insurance. wexfordins.com they work with numerous home builders. 

• TOTAL START UP COST: $35,500

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How much money can you make building a custom home with a home building business?

• Average Gross Profit Per House: 20% - Average Net Income: 10%

• Average Custom House Price: $700,000

• Average Profit Per House: $140,000 - Net Income: $70,000

• Average Home Construction Time: 10-12 months

• TOTAL REVENUE: $840,000 a year.

  • 6 Houses a Year: Profit = $840,000 - Net Income: $420,000 a year.

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Are Custom Home Builder Businesses Profitable?​​

• Yes, if you can accurately project your raw material costs, fixed costs, and payments to subcontractors, you can easily profit 20% of the cost to build the house. 

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Positives of a Home Builder Business

• This business is semi-passive. If you subcontract out 100% of the work, you will just need to routinely check up on the job site for action items being completed. 

• This business does not require a ton of employees since you are subcontracting a lot of the work out. 

• If planned correctly, this business should always be profitable. 

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How do you get home building jobs? 

• Create a website with SEO (Search Engine Optimization) and post on social media apps. 

• Network with local realtors, home shows, contractors, community leaders etc. 

• Sign up with Contractor Back Office (contractorbackoffice.com) to get leads for home building jobs. 

 

How to Start a Home Building Business 

1. ​Save up money for expenses and down payments.

2. Form your LLC with the Federal Government and Local Government

3. Create your website and social media pages

4. Purchase Insurance

5. Find a Lawyer to draft your customer service contract

6. Implement local marketing. ​