Dream Homes Blog 4-23-13 – Rebuilding after Sandy? Show Me The Money! 7 Ways to Fund

Dream Homes Blog 4-23-13 – Rebuilding after Sandy?

               Show Me The Money! 7 Ways to Fund

Great Tips on Saving with Do-It-Yourself Options, an 

Exciting New Loan Program & Tips for Staying Sane

4-27-13

Greetings NJ –

Hopefully this post finds you doing well and enjoying the beautiful spring weather.

Today we’re talking about something near and dear to everyone’s heart – money. This topic is especially important if you are trying to figure out how to fund the rebuilding of your home, assuming that your insurance won’t cover the entire cost.

First, thanks to everyone who attended the FREE Rebuilding after Sandy Seminar last Thursday at Kate & Ally’s Restaurant in Forked River. We heard some great information from Scott Lepley, Tracey Giery, Sandra Guage, and Steve Brasslett. There was a lot of good material exchanged and everyone walked away a little bit clearer about the confusing Sandy issues. Special thanks to Steve Brasslett from Ivy First Bank for an innovative new financing product, which we will talk more about today.

Our next seminar will be in mid June at the Ocean County Library in Toms River. In the meantime, Tracy Giery will be hosting a Wine & Cheese Rebuilding Seminar at her home in Little Egg Harbor on one of the 2 Thursdays prior to Memorial Day. ( A good idea – the wine thing. Takes some of the edge off the subject matter…) Let me know if you would like to speak or attend either event, or both.

Ok, let’s talk about money, and specifically about bridging the gap between the money you will or have received from insurance and the total amount you need to rebuild. This amount is generally between $30,000 – $60,000.  There are basically 7 ways to fund your reconstruction.

• Homeowner’s insurance
• Flood insurance
• ICC (Increased cost of compliance)
• Savings
• Refinance or home equity line of credit
• FHA 203k Program
• Do some of the work yourself to save money
• SBA (Small Business Administration) Loan

Each option has positive and negative aspects. Savings and home equity lines of credit are the quickest, easiest option to bridge the gap between insurance money received and the total cost of the development. Neither requires refinancing your existing mortgage. The $30,000 ICC money is what you are entitled to under a rider in your flood insurance policy if you choose to bring your house into compliance with the new codes. Refinancing your existing mortgage under a construction loan, working with a FHA 203k loan, or getting an SBA loan for the reconstruction are all effective solutions, but involve a large amount of paperwork and diligence to accomplish. Most people are using a combination of the above solutions.

A new idea, which is a very creative twist on the home equity line concept, is a solution which comes courtesy of Steve Brasslett from Ivy First Bank. Seeing how all the existing solutions were coming up short in some way, Steve created a hybrid program with a fixed total fee of only $90, which is structured like a home equity line, but where money is released as work is completed, like a 203k or construction loan. The difference is the relatively modest fee of $90 as opposed to thousands of dollars for the other two programs, and the fact that you can leave your existing debt in place and don’t have to refinance.

The best part is a 1.9% rate for 12 months and then a conversion to a 20 year note at the prime rate plus .5% (currently that would be a 3.5% mortgage).

It’s a great program which will definitely help a lot of people. Once again Steve has come up with an innovative financing solution which directly addresses current needs. Give him a call at 609 383 3900 or email at sbrasslett@ivyfirst.com for a consultation. I’ve already referred 2 of our current clients to him and both will be utilizing the new program. Great job Steve!

An old-fashioned idea which we should all consider polishing off and using again…sweat equity. Sometimes you can just spend less money, and do some of the lighter work on your house yourself. Painting, removal of old cabinets, sheetrock, insulation, light mold remediation, trim and replacing fixtures can often easily be done by you on nights and weekends, saving you considerable money. More importantly, doing some of the interior work yourself lets you focus your contractors attention to the relatively more important matters of elevating your home.

Finally, in the category of keeping sane (or returning to sanity) while this is all happening and you are wondering what to do, I have a back-to-reality thought which may help. It’s as follows: If you find yourself stressed out your eyeballs, losing sleep, beating or berating your pet (or your spouse), and cursing the universe, remember: you don’t have to do anything right now.

That’s right. There are times in life that immediate, emergency action and rapid decisions are vitally necessary. This is not one of those times. Though you definitely need to be proactive to address the elevation of your home (since the underlying issue is not going away), you do not need to rush into that decision.  A delay of a week, a month, or even several months will not matter in the scheme of things and may help you deal with the entire process in a way that doesn’t take years off your life. Sometimes you need to give yourself a break, take a deep breath, think through your options and let the correct choice for you bubble up to the surface. It will definitely happen and you will sleep better and be more at peace with your decision. While there is a need on a macro level for all of us to work steadily towards rebuilding, there is no need for any individual person to inflict high stress and pressure on themselves on a moment to moment basis. Nothing is worth that level of self imposed grief.

I hope my post helps you today.

On another note, we actively purchase raw land, building lots and existing properties and have done so for many years. If you have property to sell, give me a call and let us evaluate it for you.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

 

 

Dream Homes Blog 4-23-13 – Rebuilding after Sandy – 13 Key Steps to Rebuilding

            Getting Started – 13 Key Steps to Rebuilding

4-23-13

Greetings NJ –

Hopefully this post finds you doing well.

Today we will focus on 13 steps you can take immediately to help you move forward with rebuilding your home. Recently, I’ve been talking to a lot of people that are confused about how to get started. Whether you choose to hire a consultant or undertake the project alone, it can be a daunting prospect. No matter how much information is out there and available for contemplation, sometimes it’s hard to focus on what’s important or relevant to your situation.

Remember – FREE Rebuilding after Sandy Seminar this Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We’re hosting an architect (Scott Lepley), realtor (Tracey Giery), attorney (Sandra Guage), mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself (Vince Simonelli, Dream Homes Ltd., builder) It’ll be an open forum for discussion so come get specific questions answered – bring your surveys and flood elevation certificates. Seating is limited and refreshments will be served. Call 732 300 5619 to reserve your space.

The first step in the rebuilding process is definitely a mental one. In general, you have to decide whether you are staying where you are or moving. Once you make that critical decision, you can start moving forward. 

Though each one of these steps is comprised of a number of details, they are all critical and necessary, regardless of whether you are a brave soul and decide to manage your own project, or retain a consultant to assist you with the process.

13 Key Steps – How to Get Started

• Retain a consultant (recommended) or read this Blog really carefully and perform the following steps yourself.
• Find or order a current Flood Elevation Certificate for your house
• Find or order a current survey
• Determine how high you need to elevate your home. Remember, the minimum is BFE + 2 (Base Flood Elevation + 2 feet) although we are recommending BFE + 3 or BFE + 4.*  Example – A Zone: If you are currently at a finished floor elevation of 6 in an A zone, and your new BFE is A 10, you will need to lift your house at least 6 feet to achieve BFE +2.  Example – V Zone: If you are currently at a finished floor elevation of 6 in a V zone, and your new BFE is V10, you will need to lift your house at least 8 feet to achieve BFE +2. ** A useful resource is always www.region2coastal.com .
• Do a feasibility/cost analysis of lifting your home versus demolishing and      rebuilding new. Get a proposal for demolishing your existing home and building a new home and compare with the cost of lifting and rebuilding your home. Note: If you are in a V zone now and were in an A zone, are on a slab and your home is over 15 years old, this option should be a serious consideration.
• If you decide to lift, and are in an A zone, order a Soil Boring/Compaction Test to determine the structural capacity of your ground.
• If you decide to lift, and are in an A zone, order an architectural or engineering study of your existing foundation (unless you are demolishing it and building new).     
• If you are in a V zone, order a piling plan from an architect or structural engineer for your new elevated home to rest upon once it is lifted.
• If you are choosing  to lift your slab home, commission an architect to design a new floor system. Remember – your house has a concrete floor which will not exist when it is raised.
• Make a claim to your insurance company for ICC (Increased Cost of Compliance) money
• Get written proposals for raising/moving/demolishing your home and (if you are doing your own general contracting) have a professional (architect, engineer, builder) review it.
• Begin filing permits to start your rebuilding project.
• Stock up on ibuprofen and antacid and keep in mind that the process won’t last      forever.

* Currently, the lowest flood insurance rates are for construction at BFE + 3, although FEMA and NJ recommend BFE+2. I recommend BFE+4 to allow for the vagaries of future FEMA decisions.

** In an A zone, BFE is measured to the top of the finished floor. In a V zone, BFE is measured to the bottom of the lowest structural member of the house.

To make the rebuilding process work, you will need a professional team, whether you are the one to manage them, or you have a consultant do so. You cannot complete the process without this team. You, or a competent consultant, will have to actively manage your professional team, which will consist of some or all of the following members: architect, engineer, flood insurance advisor, attorney, real estate professional, financial solution provider, and builder or project manager.

As I’ve stressed repeatedly in the past, although the process is similar in all cases, everyone’s specific circumstances are different. Every homeowner who has been affected by Sandy is in the situation of being displaced or inconvenienced, but each person has unique needs for their home. There is no one solution for everyone. Working with a good checklist will help you clarify your actions going forward.

I hope this helps you…if you use it, a good checklist is worth its weight in gold.

On another note, we actively purchase raw land, building lots and existing properties and have done so for many years. If you have property to sell, give me a call and let us evaluate it for you.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

 

 

Dream Homes Blog – Update! Deadline for SBA Loan application is 5/1/1/3

 

Dream Homes Blog 4-16-13 – Rebuilding after Sandy – Deadline for SBA Loan Application – 5/1/13 by Vincent Simonelli of Dream Homes     Dream Homes Blog 4-18-13 – Rebuilding after Sandy SBA Deadline for homeowner and renter loan application is 5/1/13 – Businesses have until 7/13/13 4-18-13 Greetings NJ – Hopefully this post finds you doing well. Just a short note today about the deadlines for filing your SBA loan applications. It has been extended for NJ residents until May 1, 2013. Homeowners can apply for up to $200,000 to repair their house and tenants can apply for up to $40,000 to replace furniture and belongings. Businesses can apply for up to $2 million and the deadline is July 13, 2013. Click on this link for more information. http://smallbusiness.foxbusiness.com/finance-accounting/2013/04/08/superstorm-sandy-loan-deadline-extended/ Stay well NJ. Vincent Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy Rebuilding NJ One Home at a Time… Residential Construction & Development for over 20 years in NJ 314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731 609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619 vince@dreamhomesltd.com  www.dreamhomesltd.com

Dream Homes Blog 4-16-13 – Rebuilding after Sandy – Estimates – Quick & Close or Slow and Exact

Dream Homes Blog 4-16-13 – Rebuilding after Sandy

                       Estimates and Costing –

Quick & Close or Slow & Exact…Usually You Have to Choose

4-16-13

Greetings NJ –

Hopefully this post finds you doing well.

Today I will write about estimates and ways of determining costs for your rebuilding project. I’ll also add some more comments from the AC Builder’s show of last week.

Remember – FREE Rebuilding after Sandy Seminar:  Next Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We’re hosting an architect (Scott Lepley), realtor (Tracey Giery), attorney (Sandra Guage), mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself (Vince Simonelli, Dream Homes Ltd., builder) It’ll be an open forum for discussion so come get specific questions answered – bring your surveys and flood elevation certificates. Seating is limited and refreshments will be served. We have 8 people signed up already and can handle about 30, so call 732 300 5619 to reserve your space. Click here for more info.

More notes from the AC Builder’s Show: One would think that Sandy and the repercussions would be a hot topic at the show, and it was certainly being discussed last week in nauseating detail. Unfortunately much of the conversations and discussions focused closely on the regulatory, legal and political aspects of the Sandy rebuilding process. There was not as much discussion and concentration on presenting total solutions to homeowners, with most attendees with whom I spoke expressing a real reluctance to handle the entire rebuild process needed for most homes. It seems we have too many specialists and not enough general contractors and builders who want to address this extremely large need. That is definitely not good for all of us in NJ.

            One excellent idea introduced at the show was for everyone who owns property or is involved with real estate in some way (which is everyone reading this), to attend town council meetings in their respective towns and encourage council members not to adopt ordinances that are even more restrictive than FEMA, in a misbegotten effort to keep town insurance premiums at the lowest level. This activity, which has been occurring in many of the shore communities, will potentially have a very serious effect on land use and rebuilding in general. The damage to the ratable base could and will be substantial – destroying crucial township revenues when they are they are needed the most. The expression locking the barn door after the horses have run away comes to mind.

            Onward to some discussion about estimates and job costing.

            The short version is this – you can have your estimates quick and approximate, or slow and exact. It is virtually impossible to have it immediate and highly accurate. Truly precision estimates take time and costs money to create.

            A good balance is one where most people wind up – developing a relationship with someone you like and trust, and working through the changes in the project as it unfolds. With budget numbers and approximate estimates you work with ranges in pricing for different portions of the job, and as the architectural, structural and renovation plans develop, you hone in on exact numbers.

            For instance, a normal house lift project starts with an estimate which describes different aspects of the proposed work (raising, moving, demolition, new foundation, new floor structure, new access, utility disconnection and connection, and interior renovation) and provides budget estimates for each phase. An example of a budget estimate is assuming 30 pieces of 25 foot, 10’ butt pilings for a foundation structure, while waiting for the piling plan to be developed. If there are 28 pilings and they are only driven 20’ in depth to achieve the correct compaction, a credit is due the homeowner. If there are 34 pilings, the price per piling, or per foot, is added to the contract.

Please remember – it is virtually impossible to quote any work exactly without architectural plans for foundation, floor system and interior renovation, as well as structural and soil boring work to determine the exact conditions. In other words, you have to know what you need and want before you know exactly what it will cost. You can get very close, but not exact pricing, until you have proper working documents.

Some cases are easier than others and very straightforward. An example of a very straightforward situation is a 4’ straight vertical lift with a house in an A zone on a solid crawl foundation, with installation of new stairs and utility connections, and no interior renovation work needed.

Some cases are challenging and almost impossible to quote exactly. An example is a house demolition or move, existing foundation demolition, soil borings, new piling plan and new floor system, with additional interior renovations.

Many homes fall somewhere in the middle. Regardless of which end of the spectrum illustrates your situation, you work through the process, proceeding one step at a time, starting with structural analysis, piling or foundation plans and floor system design. From this point, you can develop exact pricing.

As this crucial planning portion of the work is occurring, it is common to develop a scope of work for any additional renovations, whether it be exterior landscaping, entrances, new kitchens & baths, flooring and appliances. These can be accurately quoted while the outside work is being completed.

It just takes time to work through the process. If you wait until you have every item exactly figured to the penny, you might never start, or a 4-5 month project might take 12 months to complete. You will wind up in the same place as far as cost, but it takes a lot longer and exacts a greater toll on you. It is difficult for most people to know the entire scope of work when they start their process – it is normal and common for new ideas to develop as the project progresses.

            So getting it 90% there at the start is generally ok. That extra 10% takes forever and can make you crazy.

On another note, we actively purchase raw land, building lots and existing properties and have done so for many years. If you have property to sell, give me a call and let us evaluate it for you.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

 

 

Dream Homes Blog 4-13-13 – 4 Choices You Have About Rebuilding Your Home, Comments from the AC Builder’s Show & More about Emergency Power

Dream Homes Blog 4-13-13 – Rebuilding after Sandy

          4 Choices You Have About Rebuilding Your Home,

Comments from the AC Builder’s Show & MORE about emergency power??

4-13-13

Greetings NJ –

83 degrees to 54 and raining this week. Hello April in NJ.

Today I will write again about the 4 basic choices you have when rebuilding your home. Regardless of your situation, one of these scenarios applies to you. I’ll also include some additional thoughts on comments from the AC Builder’s show and (cheaper!) alternate backup power options.

Remember – FREE Rebuilding after Sandy Seminar: Mark your calendar: Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We will be hosting an architect (Scott Lepley), realtor (Tracey Giery), attorney (Sandra Guage), mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself (Vince Simonelli, Dream Homes Ltd., builder) It’ll be an open forum for discussion so come get your specific questions answered – bring your surveys and flood elevation certificates. Seating is limited and refreshments will be served. We have 6 people signed up already and can handle about 30, so call 732 300 5619 to reserve your space. Click here for more info.

Notes from the AC Builder’s Show – 4/10 & 4/11: I attended the show on Wednesday, April 10^th and took part in two 2 hour seminars on Rebuilding after Sandy and the Environmental Forecast in 2013 in NJ. Short version: The new FEMA rules probably won’t go into effect until 2015, by the time all the appeals are finished. Some zones will change, some won’t. Some will get worse, some won’t. No one knows. Current rules regarding the prohibition of commercial construction in V zones will (hopefully!!!) be relaxed, or else we risk 65% of the commercial ratable base in the affected shore towns. After about 4 hours I was sufficiently depressed enough to consider moving to Bimini, but I am still here. On a positive note, the DEP and CAFRA are both streamlining their permit approval processes, so the pain of rebuilding should conceivably be somewhat lessened. It’s NJ – we’ll see. On an additional negative note, there were very few builders interested in undertaking the complicated process of raising, new foundations and rebuilding for Sandy victims.

On to more positive notes.

SUMMARY ABOUT REBUILDING AFTER SANDY – YOU HAVE FOUR CHOICES  (I’ve covered all of these in previous blogs and will do so again – they’re important to help focus your thinking and efforts).

1. Stay where you, don’t raise your home and remodel your house in place. Pros:      Least expensive option in the short term. Cons: Your flood insurance, if you have a mortgage and have to have it, will be really expensive.
2. Sell your home as-is and move. Pro: Immediate resolution of issues with your home. Con: You will be selling your home for essentially a discounted lot price. REMEMBER THAT YOUR  LOT ALONE WAS WORTH $225,000 6 MONTHS AGO. YOU MAY GET $70,000 AS IS. That is not a good deal from an asset management point of view, but will end your pain immediately.
3. Lift your home to at least BFE + 3, install a new foundation and renovate. Pros:      Cost effective solution which addresses flood insurance costs and essentially eliminates the risk of future flood exposure. If your in an A zone, costs should be covered by the combination of homeowners insurance and ICC (Increased cost of compliance) money. Cons: If you are in a V zone, costs may be greater than the total amount of insurance. Also, you still have an older home, which is now raised and renovated. The bones of the home may or may not be built to current codes. Costs per square foot range from $40 – $65.
4. Demolish  your home and existing foundation and build a new foundation & new      home. Pros: The best all around solution for long-term value and least amount of maintenance and work for you. Cons: This will cost an average of $40,000 – $50,000 more than the raise and remodel option. Costs per square foot range from $115 – $145 per square foot.

That’s a decent summary of options, which hopefully will help to direct your thinking. The main variables to cost and feasibility are the age and size of your home, the current foundation structure (slab or crawl), and the specific flood zone where you are located.

Finally, more on backup power (Is this an obsession with me lately?) Another alternative to natural gas or propane backup generators when the power goes out (Thanks Pam Colon for reminding me of this one!) are regular gasoline powered generators. A 6500 amp generator from Home Depot will give you hot water, some lights, refrigerator, your computers and a TV or two. The civilized inexpensive method of accomplishing this is to purchase a disconnect box and transfer switch and mount it next to your existing panel. (the uncivilized really cheap method involves extension cords running from your generator into your house, or worse, connected directly into individual circuits in your main panel. Neither of the latter choices is a great option, but both are used.)

An electrician will then wire the important circuits (those needed to survive semi-comfortably) from your main panel into the disconnect box. If the power goes out, you shut the main, click the transfer switch on, fire up the generator, plug it into the transfer switch and back feed power through the main panel to the specific circuits you chose. The entire installation is about $500 – $600 (including the electrician and transfer switch) and the generator is about $650. The only downside is you have to keep filling it with gas – figure about 5-6 gallons to run it 16 – 18 hours a day. A good idea for any homeowner who doesn’t want to incur the expense of a natural gas whole house backup generator to be prepared like this – even if they weren’t affected by Sandy.

On another note, we actively purchase raw land, building lots and existing properties and have done so for many years. If you have property to sell, give me a call and let us evaluate it for you.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

 

Dream Homes Blog – 4-9-13 – Costs, Perceived Cost, and Total Cost – 5 Key Facts about Saving Money with Consultants

Dream Homes Blog 4-9-13 – Rebuilding after Sandy

          Costs, Perceived Cost, and Total Cost – 5 Key Facts about Saving Money with Consultants

4-9-13

Hello NJ –

Hope this post finds you well and enjoying the beautiful weather. That’s why we love NJ.

Today I will write about something near and dear to everyone’s heart – money and the saving of same. First a note from our sponsors… and then 5 Key Facts about Dealing with Consultants.

FREE Rebuilding after Sandy Seminar: Mark your calendar:Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We will be hosting an architect (Scott Lepley), realtor (Tracey Giery), attorney (Sandra Guage), mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself (Vince Simonelli, Dream Homes Ltd., builder). We’re trying to get Matt Bonaventura from FEMA also, but he is not confirmed. It’ll be an open forum for discussion so come get your specific questions answered – bring your surveys and flood elevation certificates. Seating is limited and refreshments will be served. Call 732 300 5619 to reserve your space. Click here for more info.

Ok, back to our regularly scheduled programming…J

FIVE KEY FACTS ABOUT UTILIZING CONSULTANTS FOR YOUR RENOVATION

Here are 5 Key Facts about Rebuilding using consultants. We’re all conscious of budgets in our rebuilding pursuits, and rightly so. Today I want to introduce and discuss the concept of total costs, which is not something we often consider.  I’m not specifically referring to homeowners here either – builders and contractors are prone to the same shortsighted approach to costs as anyone else.

When I as a builder, hire Plumber 1 to plumb a house and his price is less than Plumber 2, but he doesn’t include the water and sewer connections to the house, he doesn’t have email and it’s a challenge communicating with him for service or inspection calls, he doesn’t show up on time or complete the job in a timely manner (or at all), it actually costs me much more to deal with him. I haven’t considered total cost. There are dozens of excellent examples of this in our every day life.

My grandmother used to say, “Penny wise and pound foolish.”

When a homeowner decides to general contract their own home renovation, it reminds me of the old adage, “A person who represents himself has a fool for a client.” Be warned – do not try this at home.  It is complicated, will cost you more to do yourself, and you will risk going slightly insane.

Fact 1: When a homeowner thinks they will save money being their own general contractor, unless they are really experienced, they will often wind up spending 10%-20% more in total costs on their renovation than if they hired a consultant to navigate and steer the ship for them. When you retain an attorney, an accountant, an engineer, a real estate or mortgage broker, or a builder or general contractor, they save you money. When you hire a building consultant to lift/move/reorient your home, whether it be architect, attorney,  engineer or general contractor, they will easily save you in excess of the cost of their fees, and allow you to sleep at night knowing someone competent is overseeing the process.

Fact 2: Most subcontractors do not wish to deal directly with homeowners. No offense, gentle readers, but client contact and discourse is an art, and requires time and a semblance of personal skills. One must be able to communicate effectively. Some (most) contractors are lacking in social graces and efficient communication skills. This makes your life miserable. Remember: you have to live with the person you choose to help you in this process for a 5-7 month period.

(Incidentally, I think that having bad communication habits in any business is poor practice. IE: you may be offended by breathing air, but it is certainly difficult to go without it.)

Fact 3: As a homeowner, you will definitely receive higher prices from contractors and sub-contractors than your general contractor will. I have dozens and dozens of examples where the homeowner obtained a quote from a subcontractor and I obtained a quote for the same work on the same home, which was significantly cheaper than the original quote to the homeowner. And I’m not talking a few hundred dollars. In most cases, the amount of the difference exceeded the fees we would charge for general project management and oversite as well as actual contracting work. To repeat, subcontractors do not like to deal with homeowners – their preference is to deal with other businesses. In addition, when a professional utilizes wholesale buying services, like the Home Depot Bid Room,  there are normally material savings of 3%-8%.

Fact 4: General contractors get much quicker response from sub-contractors, by 2 or 3 orders of magnitude (that’s 200% – 300%). More importantly, 40%-60% of all contractors will not even respond to your inquiries – and of those that respond, 75 % will not even bother to visit your home. Truth. Everyone knows this and complains about so stop and think about it and how it will impact your life.

Fact 5: If you are rational and value your peace of mind, you will not try and general contract your own project. It can cause divorce, impotence, general marital discord and a severe loss of sense of humor. Custom home projects involve a 17 % divorce or separation rate – that is an actual sad statistic based on my experience. Be warned. That being said, there are degrees of unpleasantness – if you are reasonably competent, very organized and you are on a crawl foundation in an A zone with a relatively simple lift, you might be able to do the project yourself without completely losing your mind. Doubtful but certainly possible.

An excellent qualified building consultant costs anywhere from $125 – $250 an hour. This would include an architect, engineer or general contractor. We are working with a number of (brave) clients on a retainer basis where there is a fixed not to exceed cost for project management and oversite, which includes a number of hours of consultation work on our end, advising and guiding the project. That is not what I suggest for most clients, but some hardcore do-it-your-selfers think this is a great deal. It’s another option for you to consider.  

So think carefully about total cost. It’s an important concept and definitely something to consider in your calculations.

Off subject and a repeat from yesterday: In your remodeling project, consider installing a natural gas (or propane) backup generator. It’s the ultimate feeling of independence when the power goes out. This happens in many areas, especially those prone to flooding, and you want to be That Person whose house is lit up while the neighborhood is dark.

Gas backup generators are a logical extension to a storm damaged home rebuild. A 2 kw generator will run your house at about 70% of current capacity. The entire installation is about $6,000. Unless the natural gas stops flowing (much less likely than the electricity to go out), you are not affected in a storm event. You sit there comfortably in your house, watch the water run through your pilings and hope you don’t run out of wine.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

 

 

Dream Homes Blog 4-6-13 – HOAs, Gas Backup Generators, Vacuum Tube Elevators & other Interesting Notes on the Day

Dream Homes Rebuilding Blog 4-6-13

          HOAs, Gas Backup Generators, Vacuum Tube Elevators & other Interesting Notes on the Day

4-6-13

Greetings NJ –

Hope this post finds you well.

At the request of one of my clients on one of the barrier islands, I attended the Ocean Beach III Homeowners Association April meeting this morning. It was held at Toms River North Auditorium from 9 – 12 am and was certainly an interesting morning. Here are yet another 1000 people in NJ affected by Sandy and over half still don’t have any idea what they should do. Not a good thing at all.

Kudos to the Board of Trustees who gave a concise informative presentation and stuck to their agenda. The meeting ended at 11:10 am, which marks the first time in the annals of recorded history that a HOA meeting ended prior to it’s scheduled time. Excellent job, board members.

That being said, there was the Obligatory Jerk In the Audience, who tried repeatedly to disrupt proceedings. Happily he was shouted down, tarred and feathered and made to stand in the corner as contrition. Ok, he wasn’t really, but he should have been. The president of the board did an excellent job keeping order.  Thanks to the board for trying to facilitate rebuilding efforts as much as possible.

Interestingly enough, the board voted to accept Base Flood Elevation + four feet for all rebuilding projects, as opposed to the ABFE+ 2 approved by Governor Christie in January. A wise move which allows homeowners to (potentially) achieve the lowest cost flood insurance as well as be prepared when FEMA inevitably raises their existing ABFEs.

As a reminder, the current FEMA ABFEs are based on Hurricane Irene, not  Storm Sandy. Ponder that for a moment folks. Smart money is on an increase in ABFEs, although it may be a small one.

Anyway, I digress. With our current Ocean Beach II client, we are demolishing, installing pilings and rebuilding new. Generally, costs are running in the $130 – $150 per foot range for this range of work, depending on options. We continue to recommend ABFE + 4 as a precautionary step, as opposed to ABFE +2. Can’t hurt – will save you some money and may potentially save your home when another storm event occurs.

Mark your calendar: FREE Rebuilding after Sandy Seminar, Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We will be hosting an architect (Scott Lepley), realtor (Tracey Giery), attorney (Sandra Guage), mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself (Vince Simonelli, Dream Homes Ltd., builder) and it will be an open forum for discussion. Come get your specific questions answered – bring your surveys and flood elevation certificates. Seating is limited and there will be refreshments served. Call 732 300 5619 to reserve your space.

New idea for access to your elevated home: Vacuum tube elevators as opposed to traditional home elevators. The VT elevator requires no elevator pit below grade and is a slightly smaller footprint than a regular elevator. Most are clear plexiglass and work on the same principal as the bank drive through – air is hydraulically sucked out one end of a tube, causing the capsule (elevator) to move. Very cool as long as you don’t have issues imagining you are a deposit slip. VT Elevators are also a little cheaper than regular elevators and they are much more of a conversation piece…JJ

 Finally a really excellent idea, which I have somehow neglected to mention prior to today.

Natural gas (or propane) backup generators. The ultimate feeling of independence when the power goes out. Like one client said to me recently (Thanks Tracey!), “Girls love generators”. Well, boys do too. When the power goes out, you want to be That Person whose house is all lit up while the neighborhood is dark.

We’ve done a number of gas backup generators through the years and it is a logical extension to a storm damaged home rebuild. A 2 kw generator will run your house at about 70% of current capacity. The entire installation is about $6,000. Unless the natural gas stops flowing (much less likely than the electricity to go out), you are not affected in a storm event. You sit there in your house, let the water run through your pilings and hope you don’t run out of pasta.

More specifics on this topic later, but a worthwhile consideration when you are spending $150,000 on a new or newly remodeled raised home.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com

Dream Homes – Blog Post 4-3-13 8 Key Secrets to Rebuilding – Good Communication is Key!

Greetings NJ –

Hope this post finds you well and gaining clarity in your life each day.

Remember – each obstacle is an opportunity for learning and growth and betterment. No one said it was going to be easy though…J The Buddha didn’t have Storm Sandy to deal with.

I have a few thoughts today on communication and specifically how important it is to the rebuilding process. If you can set up some basic levels of expectation in the beginning of the process, you will be much calmer and happier throughout.

Mark your calendar: Sandy Seminar, Thursday 4/25/13 at 2:30 at Kate & Ally’s Restaurant in Forked River. We will be hosting an architect, realtor, attorney, mortgage professional (Steve Brasslett, Ivy First Mortgage) and myself and it will be an open forum for discussion. Seating is limited and there will be refreshments served. Call to reserve your space.

Here are 8 basic parameters that you should expect when dealing with a professional consultant or vendor of any type, whether it be an architect, builder, engineer, or contractor (or really, anyone else for that matter):

1. This person or firm should be able to communicate with you in the manner that      you are most comfortable with.  I placed this thought first for a reason. As the client, you should expect communication your way, whether it is by phone,      email, text, fax, mail, facebook, linked in or note in a bottle. Do not      change your habits to suit the consultant – find a consultant that      makes you comfortable with how you regularly communicate.
2. At the very least, you should have all documentation copied to you via email.      If you want a hard copy of everything sent as well, request it, but keeping      good email records is an important ingredient. You will sleep better. Also at the very least, keep good notes. Ben Franklin said, “The faintest pencil is better than the sharpest memory.” It is very easy to forget conversations and discussions.
3. You should expect to be updated regularly, but not unnecessarily. The process should be explained and a general time line outlined. Regularly monitoring and discussing the numerous steps in the process is very important. Sometimes (too often in NJ) you are simply waiting for the glacial wheels of progress to move and there is nothing to report.
4. One  person in your family should be the main point of contact with your      consultant. This does not mean that the entire family isn’t involved in the planning and concept stage, just that one person is the primary point of contact throughout. It makes your life easier.
5. A good consultant should have no issues or objections to your rational,      intelligent assistance throughout the process. The process of construction is complex but not esoteric – it can and should be understood by everyone involved. Generally the more eyes and brains monitoring the situation, the less errors there are. You should expect to assist as much as you can – the project will be the better for your efforts.
6. If it cannot be explained to you in plain English in small words, it is probably horse puckey. Do not tolerate jargon, slang, abbreviations or other unknowable referents. If you don’t understand something, ask that it be clarified until you do understand. If it cannot be explained to you, generally the person who is speaking is not sure of what they are saying.
7. It is perfectly ok to hear “I don’t know, but I will check on that and get back to you.” No one knows everything. As long as there is a willingness to research the facts, there is no shame in not having every piece of data immediately accessible.  Intelligent people know what they do not know.
8. You should expect a response to an inquiry within 1 business day, provided that you are willing to both leave a verbal message, as well as follow up with an email or text.  It is easy to miss a phone call or voice mail, but is not acceptable to miss a      voice mail, as well as an email, text or fax. It is not acceptable to not have regular access to your consultant, or a designated colleague throughout the process to get feedback on thoughts, changes and comments.

Hopefully these ideas will help you. They are relatively simple but also very important. If you use them, the inevitable stress of rebuilding might be a little less.

Stay well NJ.

Vincent

Rebuild, Renovate, Raise or Repair Your Home from Storm Sandy

Rebuilding NJ One Home at a Time…

Residential Construction & Development for over 20 years in NJ

314 Rt.9, Forked River, NJ 08731 Mailing: PO Box 627, Forked River, NJ 08731

609 693 8881 x 102 Fax: 609 693 3802 Cell: 732 300 5619

vince@dreamhomesltd.com  www.dreamhomesltd.com