Here in British Columia Canada we have a huge housing shortage. To make this shortage worse, government has placed limits on how often a owner/builder can build. After the first home, we have to wait 3 years before we can build the second home. Then after 2nd home we have to wait 5 years, etc. This policy was placed into law to stop housing from being built. Why would government do this ? Governments want us housed in soviet style apartment blocks in the big cities such to easier control us. They do not want the small independent owner/builders messing up their New World Order plans of total control.

Your videos are great. Watching as many as I can. Thanks again!

Seriously you saved me money with this video. I hope more wealth and prosperity comes to you. I’ve remodeled maybe 2 or 3 dozen homes in my life and didn’t know about menards or the whole remnant thing. We just bought our first home but needs a full renovation and going to do a 400sqft master addition to it. God bless and have an amazing weekend. I need to get to your site and get in on your teachings. We plan to do this but didn’t know about the tax stuff either.

I also remember hearing about the charging 10% in building materials when building and keeping the 10% or less and then doing a flip on the material build for a 100% profit house.

You're awesome! God bless you and yours. This is patriotism

I just found you and your channel. Love what you're doing!!!!!!!!!

I am so happy I found this. I bought a lot for 16,000 and I want to build on our own.

@OpenBookBuild

4 жыл бұрын

Great to hear. Wish you the best of luck!

@alexeylozin7443

3 жыл бұрын

If you don't mind me asking in what state/city did you find a lot that cheap? Is it relatively close to schools/other amenities? Rural or urban?

@migue5955

3 жыл бұрын

Amen, I bought my piece of freedom 4 years ago and have been saving to build my home

@peterxyz3541

Жыл бұрын

@@alexeylozin7443 check your city. Some may have city own lots that may sell it for under market value. In northern Ohio city, an empty city lot is about 40k (asking). City lot I looked at is 4,000.00

@PianoKeyzOfficial

5 ай бұрын

how did it go?

Built a house with minimal contractor help. Some jobs are better left to contractors. It was not easy but very rewarding at the end. I broke down the sections like electrical, into smaller tasks making the electrical several tasks within itself. Yep, there's good money in it. Took a year and a half. Lived in that house for 7 years. Sold it for a fat profit and built another one. Supplies and economy is a problem right now but have the next house plans done and property prepped. Currently waiting it out for a bit.

@johnwhite2576

2 жыл бұрын

what jobs best left to contractors ?

@baronvolkov6172

Жыл бұрын

@@johnwhite2576 Id say foundation, electrical, plumbing, insulation, drywall. But its different for everyone depending on your skills and time available

this is very creative

My plan is to do this in the future. Building up cash right now. Ran all the numbers before the pandemic and it looked like I could make $70-110k a home depending on how much I subcontracted out and how big I built. Now commodities are way up. I was thinking I could always target smaller 1200-1500 sq ft slab on grade homes for rentals if the market tanks.

Between the Tax Codes, Building Codes, beauracracies, and nosy neighbors, that's a seriously complicated 'side hustle'. But $$$$ !

My wife and I moved down to Texas to do this. We had to rent a D.R. Horton home 1st and they SUCK as a home builder!!! The worst stuff I have ever seen…..

Being a contractor myself, I would say that most people (especially couples) do not have the temperament, stress management skills or experience completing projects to do owner / builder homes every 2 years. But maybe YOU do... what the hell, educate yourself, give it a go and see if your marriage and work life can handle it! Seriously, it's all in hiring the right GC who knows the right subs that will do great work ON TIME. If you cheap out on this critical part of your project, you're hosed. You will pay more down the road in project overruns and crappy bidding by subs than you would have if you just paid a great GC up front and let them do their thing. Less stress, better materials and better craftmanship AND it costs the same as going with the discount contractor before the project is finished - what's the debate? Find the best contractor, work WITH them and be successful. Or not. Cheers aspiring home builders!

@MrSteeDoo

3 жыл бұрын

So you make it sound like finding the "great" GC is so easy to determine. As if you should just select the high bidder and be done with it.

@akdrywallguy60

3 жыл бұрын

@@MrSteeDoo - It is simple. Do tons of research and don't be a cheapskate when you see that the good contractors are also the contractors who are compensated for their high skill and knowledge level. If you thought that I was trying to say that finding a great GC was going to be a quick and easy process, then I apologize. Perhaps you should pick the cheapest contractor because you can learn enough on KZread to pull off your new house project. Or, maybe not. Cheers!

@glynowilliams

2 жыл бұрын

Alot of couples get divorced after a build...I am a GC in SF bay .

@treeamigo8447

2 жыл бұрын

@@glynowilliams Why involve the wife with a build that's not intended to be the dream house. If you want to build your own house, do it without her involved. Her input will put you way over budget and make even the smallest decisions seem like a tug of war.

@MrWaterbugdesign

2 жыл бұрын

@@glynowilliams I got divorced over a remodel. So that's another plus. Life is so much better now. Back to having fun remodeling.

PHENOMENAL VIDEO! Thankful for this because I have been super interested in learning construction. REQUEST: Could you please make an educational construction video? Show us how to begin our own projects. Step by step from start to finish with all costs for each step included! I would truly appreciate such content.

@OpenBookBuild

4 жыл бұрын

So glad you liked it. We have a complete online course at Open Book Build on how to build your own home if you are interested. Thanks for watching.

@balla2828

4 жыл бұрын

Armchair Builder if you don’t mind me asking. Does the course include all pre-project steps and costs? Does it have step by step breakdowns from start to finish of a project?

@OpenBookBuild

4 жыл бұрын

BaLLa The course takes you from how to select a building lot through to move in. It covers how to create a budget for your new home, how to find subcontractors and get competitive pricing and then covers the build schedule with important quality checks. You follow along as a home is built from the ground up.

@balla2828

4 жыл бұрын

Armchair Builder Nice. This is Great!

@dustinhiggins710

3 жыл бұрын

Honestly, the foundation and frame work I'd hire professionals if you have no one to help and you've never done it. Basic wiring, drywall, installing cabinets, etc isn't hard and there's hundreds of videos to teach you. Just doing the basic work can save you tens of thousands.

The problem is getting financed to build your own home without a GC. The GC really jack up the price

@MrWaterbugdesign

2 жыл бұрын

I agree. I do the same thing but flip instead of building new. I get to live in the house as I work on it. That's sooooo much cheaper than a new build and the profit is just as good, maybe better.

Great video, but one hugeeeee benefit he Dsnt talk about is when u buy new construction, you don't pay property taxes for about about 1.5 years...or u pay next to nothing with just the lot tax.

@KetoKevin

2 жыл бұрын

What state? That is not how it is in CA.

@dennispetronack4011

2 жыл бұрын

@@KetoKevin MN

I lived that life, it killed my marriage and the kid hated it.

Where and how do you find and screen the foundation digger, the former, the brick layer for the foundation wall and the framers?

i have done this on 6 homes but i have construction experience. it sounds easy but its not. if you cant work yourself and dont know what you are doing it wont even get finished. it takes a year commitment of your time and a wife who will accept living in construction mess for a year. youtube is full of people trying to build their own house and never finishing it. then the problem of selling it. fsbo is almost impossible these days and the realtors will suck up your profit. the next hurdle you will face is financing. banks wont loan to owner builders because so many of them fail to finish so you have to build with cash. the next problem will be builders insurance there is only one company that will sell builders risk insurance to diy homebuilders and its hard to get. in conclusion it sounds easy but its not. if it was everyone would be doing it.

@OpenBookBuild

4 жыл бұрын

Try State Farm Insurance next time as they provide builder's risk and general liability up to $2M at very affordable rates for someone building their own home. Local banks that you have a relationship with are the best...or try one of the owner builder loan companies if available in your state. As for selling the house, Redfin offers the best deal now...check it out...if you buy and sell with them it's 1%. The mess isn't required but if you want to live in it while you do the finish work it's really no different than buying an existing home and remodeling it while you live there. Tons of people are doing that right now...stop by Home Depot or Lowe's on a Saturday and you'll see them. No, building your own home as the general contractor is not easy, but smart folks are doing it and making very good money. Take care

@r.a.5625

3 жыл бұрын

@@OpenBookBuild is there a minimum requirement of years to live in the house we built before selling it? Thank you

@MichaelLuckado

3 жыл бұрын

@@r.a.5625 Depends on your state law. Some locations do require you to live there a minimum of a year.

@seanm3226

3 жыл бұрын

@@r.a.5625 Generally one year. Depending on the municipality. For better or for worse, this rule is basically an attempt to stop someone from acting as an unlicensed contractor. But the rule is rarely enforced, as municipalities would have a difficult time preventing someone from selling their house.

@MrSteeDoo

3 жыл бұрын

"banks wont loan to owner builders" Of course they will. A mortgage broker can find the money. You don't need ALL banks to offer financing, you just need ONE.

I think you left off some of the tax breaks and rebates you may be eligible for as the original buyer. Energy rebates and tax credits in particular. Just a thought

@squidbeard492

2 жыл бұрын

I believe most rebates are by state. Also they might not qualify for rebates since your just building to the new code. I'm not sure since I haven't built my own from scratch yet

Do you guys do blueprints?

Do you know if you can air b&b a side of an owner built duplex during the time you're not allowed to sell or lease it? while living in the other half as primary residence.

@OpenBookBuild

2 жыл бұрын

That’s a great question. I believe if it’s your primary residence…yes. Probably need to dig into the ridiculously complicated tax code to verify for sure

@vhehn

2 жыл бұрын

no

Many thanks for the info. Will the 2 years start from move in after habitant certificate.

@OpenBookBuild

3 жыл бұрын

Yes...after certificate of occupancy has been issued

@squeekhobby4571

3 жыл бұрын

@@OpenBookBuild : thanks. Regarding tax saving if we sell after living for 2 years, we. Don’t have to pay fed tax for $500K. Is the total sale or the profit we get after paying the pending mortgage

@OpenBookBuild

3 жыл бұрын

@@squeekhobby4571 You don’t pay tax on the profit...which is final sales price minus total cost to build plus land cost

@squeekhobby4571

3 жыл бұрын

@@OpenBookBuild you are awesome. God bless you for your service

@simonorth2727

2 жыл бұрын

@@OpenBookBuild curious where you came up with the $93k number if $250k per person is the actual.

When does the 2 year timeframe start? From occupancy?

@OpenBookBuild

2 жыл бұрын

Hey Brad. Yes, the two years starts at time of occupancy as your primary residence.

Anybody know what the cheapest way to get a temporary power pole on a residential vacant Florida lot without a house building permit? The lot does not have houses for 1000sq ft, but there is a Duke pole 200' away. The road is very narrow and soft, yet I've been able to drive into the lot. Duke Power said they would provide temporary power up to 100a power with a permit (possibly at a cost), but the county needs to inspect first. What kind of permit will be allowed? irrigation? clearing? I have a shallow well I drilled that works very well, but not with permits. And finally, I'm looking to buy an EV truck and also need power to charge the truck, since no charge stations anywhere around.. just wondering how flexible and understanding the county is going to be me? I suspect the county is going to respond in one of two ways, 1. your lot is inaccessable 2. here's a fine for clearing and digging without a survery or permit. BTW, I had previously reached out to the county about possibly improving the roads and their response was there were not enough resources or customers on that street.

@matthewmoore202

2 жыл бұрын

Hey I do this in Florida with my properties. To get a temporary power pole you have to have 1 septic 2 sewer 3 rv special exemption permit 4 50amp power will be ran

@12vLife

2 жыл бұрын

@@matthewmoore202 any one of those? I heard you can get it with a building permit, or for irrgation permit for a well and pump only?

@johnteal5014

10 ай бұрын

What county? I can possibly help if I know which county

An honest builder will do time and materials with overhead and profit of 10% and tax on top. BUT they can still scam you. How? Let's say the plumber is my brother and the roofer is my cousin. I tell my brother to give me a quote as a 'subcontractor' for $25,000 even though it was really $12,000 and when I get the money, we split the "overcharge" of $13k behind the scenes. Anyone can make an invoice. Doesn't mean that's what was really paid once they have money. THEY MAKE INVOICING AND BILLING CONFUSING BY DESIGN!

Can you sell before 2 years?

@OpenBookBuild

3 жыл бұрын

Steven, it really depends on where you live. Most places allow it but check with your local building department.

@MrSteeDoo

3 жыл бұрын

Of course you can. You own it. But your proceeds from the house will be taxed as if it was ordinary income.

@dominickcally2735

Жыл бұрын

It’s not of course . Ca requirements is 1 year

Instead of living in your new home can you rent it out and sell it in two years and won't get tax

@willbass2869

2 жыл бұрын

Don't think so. The house has to be your primary residence

@vhehn

2 жыл бұрын

no

Can only do this every 5 years

@OpenBookBuild

2 жыл бұрын

You can do it every two years

subtract 6% for the real estate housing agent who helps you with the selling LOL

@OpenBookBuild

3 жыл бұрын

If you are building an affordable home like this one in today's crazy undersupplied real estate market where multiple offers are common, selling is the easiest part about this. So, many owner builders also choose to sell their own home and save the 6-7% commission.

@justinharper2614

3 жыл бұрын

@@OpenBookBuild as an owner/builder/flipper this is a horrible idea. If you really want to sell your home yourself become a licensed real estate agent, and take the time to learn the trade. That is what I did. FSBO’s statistically loose more in equity than the RE fees would had been as a result of not being on market. Most builders/homeowners have no idea how to effectively market a home, create ad campaigns, target out of state buyers, farm local markets to procure buyers, or how to create beautiful presentations that pull buyers in. It’s really an art. A fraction of buyers will see your home because agents avoid FSBO’s like the plague. Typically most first time home buyers work with an agent as they have no idea what they are doing. 51% of the market is first time home buyers. This just eliminated over half the pool of buyers because buyers that are working with agents are locked into buyers agencies as agents don’t like wasting their time. So unless the buyer wants to pay the commission out of pocket, they are just going to go with a home that is on market as sellers pay the commission in this scenario. Agents know good and well they are going to do the job of a buyers agent and a listing agent as homeowners typically have no idea what they are doing as far as the sales process of their home and they will usually make less than they would if they sold a home that is on market. Anyone is free to do what they want but this isn’t something I would recommend. It would be a better idea to get licensed. Not to mention you can also make a ton more money by taking on clients if you decide Real Estate is something you enjoy. I got my license just to sell my flips and spec homes. I ended up taking on clients and it has turned into another career making over $100/hour.

@OpenBookBuild

3 жыл бұрын

@@justinharper2614 I totally agree that owner builders should learn everything they can about real estate marketing and sales. But I would disagree with you that people selling a first time buyer home needs a "professional" to help with the sale. The Open Book Build house has had many offers from people wanting to buy it...even though it's not even for sale! Why? Because there is absolutely no inventory of quality, affordable homes in the area. And this is the theme I hear over and over again from folks around the country right now. Some quick tips for selling...get a quality title company to handle the transaction that can provide a contract that meets state requirements, list the property on one of the many online platforms using high quality photos, price the property competitively with recent sales in the neighborhood. I've heard real estate agents tell people they can get you more for your home if you list with them. The problem with the entry level home is, the appraisal will only match current market pricing in the area. So, if the selling price is over the appraised amount, first time buyers either need to come up with extra money at closing or they walk away. And the nature of the first time buyer is they don't have a ton of extra cash to spend. If this doesn't work, start offering a 2.5-3% commission to real estate agents who bring you a buyer. In this case, you will still save 3-4% and get your home sold more quickly.

@PDZ1122

2 жыл бұрын

@@justinharper2614 I think anything that cuts out useless middle men is a great idea. There probably wouldn't be ANY real estate agents if they actually got paid by the hour and not screw you by commssions.

@OutNAboutWithBrad

2 жыл бұрын

@@justinharper2614 Let's be real. Most agents just have pictures taken and pop it onto the local MLS and then sit and wait for the phone to ring. As a former real estate agent, I think it's a massively over priced industry. In the UK you get similar service for 1%, but they don't have buyers agents. I do believe buyers agents add value, but I don't know what the best solution is for their compensation as they usually do way more work than the listing agent. Perhaps, 3% fee. 1% to sellers agent and 2% to buyers agent?

How many years have we been watching people tell us to buy their book, so that we can also become wealthy in things like real estate. Always with them sipping a cool drink on a lovely patio with a pool or large very expensive boat in the background. lol And of coarse today since we have the internet, we now have this method, and an even larger audience. And all types of them are coming out of the woodwork in a desperate attempt to save us thousands of dollars. Home builders on average have a 10 to 15 percent profit margin above cost, assuming all goes well, and thats an actual fact. Larger builder developers might also have additional profit as a result of development of the land their homes are built on. Which is something smaller builders cant do for financial reasons. Land development has always been considered as a separate entity from building. At one time, there were those whose only business was developing land, and then selling the building lots. As for savings on materials, the larger the builder, the bigger the discounts on material, as well as subcontract labor cost. A one time builder cant possibly expect seeing the same costs as that. Those having no experience, or lack the time or ability to do much of the labor themselves, will be apt to spend more in building their home than they would have by hiring a legitimate contractor. Securing the financing for a construction loan will also be more difficult. Especially for those having no record of employment in the industry. Most banks will require you hire a legitimate contractor before agreeing to the loan. Make note of the word legitimate.

I thought Trump adjusted the tax thresholds under his tax plan.

@willbass2869

2 жыл бұрын

That was deductible property taxes

@Willsimp4tacos

2 жыл бұрын

@@willbass2869 no. Trump lowered capital gains from home ownership from 500k profit down to 250k.

@willbass2869

2 жыл бұрын

@@Willsimp4tacos yeah but didn't he put a cap on deductible mortgage interest & licsl property taxes? That's why NY, NJ, Conn and CA millionaires so pissed at him. They couldn't fully deduct all their mortgage interest and property taxes, right?

@Willsimp4tacos

2 жыл бұрын

@@willbass2869 I didn't know that. It seemed odd that his changes hurt real estate investors when he is one himself.

Yeah but you’re still going to pay taxes on the end of the year when it put you in another tax bracket. Rite?

@simonorth2727

2 жыл бұрын

Not an accountant or a financial advisor but not if you live there for 2 of the last 5 yrs. Do your own research. It's easy to find.

@one_hoop

2 жыл бұрын

I believe the point is that it's a capital gains, not income. The capital gains exemption for primary residence is the loophole.

You are repetitive in your videos, saying the same thing over and over. What most owner builders are interested in are details of the construction project and costs of separate parts like framing, electrical, etc., and problems they can encounter as owner builder. Thanks.

Why Americans are so scared of taxes?

@seanm3226

Жыл бұрын

Americans, historically speaking, cherish freedom. There is no greater assault on freedom as to someone taking your hard-earned money.

@solomonstello

4 ай бұрын

Who said we're scared?

That’s greed

@OutNAboutWithBrad

2 жыл бұрын

Why? The owner is putting the time and effort in, instead of paying someone else to do it. It's like installing your own laminate floor but on a bigger scale.

Why always had to be profitable,some people just need house for living or call home, make me sick all your videos

@baronvolkov6172

Жыл бұрын

Everything in the world that is man made is meant to generate profit. Thru trade of ones time or monetary investment. You go to work, why do you expect to be paid? The business owner just needs work done why you demanding pay and sht, makes me sick

@solomonstello

4 ай бұрын

Ignorant..