Certified General Contractor
License CGC1514929

FAQ

INVESTORS/GUARANTEE/COST/TIME/SALES/PROFIT

Guarantee

PROFIT FOR INVESTORS

TIMES

SALES PRICE

COSTS

FINANCE

FEES

CREDIT

OTHER QUESTIONS

Specifications



Guarantee

What guarantee I get from your company?
The lots you buy are at your name. We build on your property. The draws you pay us are when the money of the before activity is done. When you see an activity is almost done, you give us the next draw. We are licensed as Certified General Contractor and this profession is regulated by the Division of Business of Professional Regulation (DBPR). Our President of the company is Certified General Contractor, Certified Home Inspector and Real Estate Sales Agent. All professions regulated by DBPR.

The value of these licenses is invaluable. We do not put at risk a license for a few Dollars or many Dollars. As a reference you may ask JMJ Homes. (Investor/Owner Mr. Manuel Rios)

PROFIT FOR INVESTORS

If I am an investor how much money can I make as profit?
All depends how many houses you want to build at once.

These numbers below are just an example:
We get better prices for 10 houses than for only one.
If you build 10 houses at once and If you build a house for a total cost approximately of $172,000 and your sale price is for $202,000 you can get a profit approximately of $30,000 per house. (Closing costs are not included)

TIMES

How long takes to build a house of 4 Bedrooms, 2 bathrooms, double garage?
The time to build a house is approximately 3 months + 1 additional month for different things and documents = 4 months. If you build 10 houses in 4 months x 3 times in a year you can make $900,000 profit in 1 year. To do this you need a working capital as minimum of $1,500.000 in cash. This is a profit of 60% of the working capital.

What bank pay you 60% interest per year of your money?
NONE!
Even you make half of these numbers as profit, you still making $15,000 x 10 house=$150,000 every 4 months x 3 times in a year=$450,000 per year, approximately is 30% revenue as profit.

What bank pay you 30% interest per year of your money?
NONE!

How long takes to sale a house?
All depends of what Real Estate company or who is the Sales Agent you hire. (We have our affiliates Real Estate Agents very efficient dedicated to sales). Most of the houses are sold during the process under construction.

SALES PRICE

What is the average sale price for a brand-new house of 1744 sf heating area and 2450 total area or 4 bedrooms, 2 bathrooms, double garage?
All depends of the area you build the house and the market price but, the average price is approximately $202,000 or more.

COSTS

How much is the construction cost of a house?
All depends of the size of the house you want to build.
If you build 1 house only is very different than you build 10 houses.

How much money do I need to build Only One house of 4 bedrooms, 2 bathrooms, double garage?
Approximately $172,000 (including everything)

How much money you require to start?
$35,000 per house, approximately. 

How frequent do you need the draws?
Approximately all draws are for $35,000. In other words, 5 draws in 3 months or $35,000 every 12 days (Approximately) per house.

What is the cost of plans or Blueprints?
Plans/Blueprints are included in the total of the cost 

How many square feet 4 bedrooms, 2 bathrooms house has it?
Approximately, 1744 sf living area + Not living/heating area 756 sf =2,450 sf total 

How much is the cost per sf?
The cost per sf is calculated on the living/heating area.

The average cost just for direct cost of construction is around $67/sf.
If somebody offer you to build for less money than $67 per sf, be very careful because is possible they do not finish the construction. Is very Risky!

With, lot, impact fees, service connections, supervision, builder fees, Real Estate Commissions, closing costs and building permits = $100 sf approximately. If somebody offer you, to build including everything for less money than $100 sf be very careful. Again, it’s very risky.

Other important thing is to make sure the contractors have all liability insurance as standard requirements in the construction industry and Work Compensation.

Without worker’s compensation insurance, you could be held liable for injuries incurred on your property. Without liability insurance you could be held liable for all damages incurred on your property.

This is a Federal and State Law.

Some contractors don’t have liability insurance and they don’t have work-comp to get the business for a cheaper price.

The problem is the Owner/Investor and the contractor company assume all risks. If an accident happens they could finally be paying hundreds of thousand Dollars or may be millions of Dollars.

What are the impact fees?
The impact fees are certain type of taxes to pay to the County and/or City to build streets, fire-worker, school, etc. 

How much are the impact fees?
These are just examples and can varies at any time:
Depends on the county or city.
In Osceola County you pay $16,000 approximately.
In Polk County (Poinciana Area) you pay $10,000 approximately.
In Volusia County/Deltona you pay $10,000 approximately.
However, most of the lots in Volusia County/Deltona do not have sewer and you should install a Septic Tank for approximately $10,000.

How the impact fees are paid?
Each county is different. By now, Polk County ask approximately 20% at front when you pull the builder permit. The balance is paid at the end. (May varies)
Volusia/Deltona you should pay 100% at front when you pull the builder permit. (May varies) Osceola County requires approximately 20% at front when you pull the builder permit. The balance is paid at the end. (May varies)

How much can be the cost of a lot?
You can find good individual lots as average for $18,000 in Deltona area and Poinciana area in Osceola county and Polk county.

Why we find a lot for $8,000 and next to it we find same size lot for $20,000?
You should be very careful about this. Some lots are in “Flood Zone” and are cheaper than others. This is because a lot in flood zone you need to fill the lot with dirt material and/or you must build “Stem Wall”. This situation can cost between $10,000 to $30,000 as additional cost spending your profit on mentioned items. In addition of that a lot may have too much vegetation with many thick and high trees. The cost to clean and prepare the lot can be expensive.
Other reason affects the price of the lot, is if a lot has an easement. (less value)
Never buy a lot without the assistance of an honest contractor!
We provide free assistance if you build with us.

How much do we have to pay for closing costs?
Closing costs are expenses over and above the price of the property in a real estate transaction. Costs incurred, include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges. 

How much does it cost to close on a house?
Typically, home buyers will pay between about 2% to 5% of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing fees, according to a recent survey.
All depends of the agreement you can have with the buyer and the Real Estate Sales Agent.
Some investors pay for the buyer a percentage of the closing cost.
Some investors negotiate the commission with the Real Estate Sales Agent. The average closing costs for 1 house for the seller of $200,000 is 1.5% =$3,000 approximately.
The average closing costs for 1 house for the buyer of $200,000 is 3% = $6,000 approximately.
The commission for the Real Estate Sales Agent is around 5% for 1 house = $10,000
The commission for the Real Estate Sales Agent is around 3% for 10 houses. (May varies)
The investor to sale the house (for 10 houses) could pay around $3,000 + $8,000= $11,000 (May varies)

How long takes to make a contract?
30 days as average for a contract

How long takes a closing?
30-45 days for closing

How long is the total process?
Total of 90 days average. (May varies)

Are closing costs included in the mortgage loan?
It could be via a slightly higher negotiated sales price, a larger loan amount, a less attractive mortgage rate, or simply out-of-pocket. This explains why some borrowers choose to include closing costs in the mortgage, that is, pile them on top of the loan balance so they don't have any out-of-pocket expenses. 

How much can be the monthly payment for a buyer, for a house of $200,000?

How much money you pay as average for closing costs?

How much money you pay in Real Estate Commissions?

Who pays the real estate agent when buying a house?
Usually the seller pays the commission, unless buyer and seller negotiate a split or agree to the buyer assuming the full amount. The seller should factor the commission into the asking price. Commissions are paid to brokers, not directly to agents.

How much does a realtor charge to sell my house?
The commission rate to the listing agent and selling agent is negotiable, but typically 5 or 6 percent. That commission is often split between the two agents. Every area of the country is different depending on market conditions, plus the location and condition of your home.

Are commissions negotiable?
Commissions are always negotiable; that’s the law. 

FINANCE

Does your company finance a construction?
Our company does not finance a construction but, we can help you to get the best loan mortgage for you with our affiliate mortgage companies.

How much can be my saving If I build with your company compare with a large traditional construction company?
If our cost is approximately $172,000 our perception is: probably a similar house with a traditional construction company will be around $240,000.

Under our perception, if you build with us probably you will be saving $6,000+$68,000=$74,000 total We recommend check the market price, the sales price with the traditional construction company and our sale price before you make any decision.

If you have your own money, you can save some money such as interest (approximately $6,000 per house using the money for 4 months) This is for investors)
If the cost is $172,000 you will be paying approximately $762 per months per 360 months (30 years) =$283,000. Therefore, you will save $111,320. This saving is for people wants to live in the house as primary home.

How much money do I should have to start a financed house financed by a bank?
$35,000 approximately.

Do you help me to get a loan mortgage?
Yes. We help you to find the best loan mortgage for you, with our affiliate mortgage companies.

If I have my own money not financing with banks, do I save some money?
Yes.
If you are going to leave in the house, you will be saving:
CASE A: Real Estate Commissions $12,000 + Closing costs $18,882 + Interests $ 240,000 (4% per year on $200,000 x 30 years =$240,000 for a Total of $270,882.00 approximately.
CASE B: In case you want to sale the house (for business) You can save some money such as interest (approximately $6,000 per house using the money for 4 months).

Can I get a loan to build a house for sale when I have other financed primary home?
Yes. This should be through a private bank. Most of traditional banks normally do not finance a second home if you have a loan for a primary home. (This may varies from time to time)

FEES

Do you build by administration fee?
Yes.

How much you charge as a fee per house?
For 1 house costs under $200,000 the fee is $16,000
For 2 or more or several houses we reduced the fees significantly

Do you build by fix price contract?
Yes. But the cost will be a little bit higher.

How I know you are a serious company?
We are licensed as Certified General Contractor and this profession is regulated by the Division of Business of Professional Regulation (DBPR)
Our President of the company is Certified General Contractor, Certified Home Inspector and Real Estate Sales Agent. All professions regulated by DBPR.
The value of these licenses is invaluable. We do not put at risk a license for a few Dollars or many Dollars. As a reference you may ask JMJ Homes. (Investor/Owner Mr. Manuel Rios)
We provide you a detailed accounting of you project every week on Excel sheet, checks, bank statements, etc.

CREDIT

How good need to be my credit score?
600 points or more as a minimum but, depends of each bank. (May varies)

Do you help to improve my credit?
Yes. We have an affiliate company can help you.

Do you help me obtaining a good mortgage?
Yes. We help you to find the best loan mortgage for you with our affiliate mortgage companies.

If I have my own money how long takes to start to build?
Once you order the plans takes 2-3 weeks to get them. Then, we pull the building permits and we can start in a total of 3 or 4 weeks depending of the city or county involved.

If I have my own money how long takes to finish the construction?
For single-family homes, 4 bedrooms, 2 bathrooms, double garage approximately 3 months + 1 months for documents, closing and for final Certificate of Occupancy.
With your own money is faster because we do not have to wait until the bank inspectors authorized the draw.

OTHER QUESTIONS

How long a 4 bedroom 2 bathrooms double garage takes to build?
3 month+

What happens if during the construction I do not have more money to continuous?
We have to stop the construction until you have the money to continuous.

Can I pick-up some materials and colors?
In general terms the houses we offer you cannot change materials or colors but, If is possible we can make and adjustment in the price or should be an additional charge.
This must be discussed before the construction starts.

Do you build Custom Homes?
Yes. You can pick-up and design whatever you want. 

Can I visit and see one of your constructions?
Yes. By appointment only and with one of our representatives. (Insurance requirements) 

Can In visit your office?
Yes. By appointment only.

What materials are you using in these houses?
Standard construction materials. We can show you at office and/or in a visit to under construction home. 

Can I make changes in design of these houses?
Sometimes is possible. Depends of the structure can be affected.
However, has to be considered before we make the plans/blueprints.

Can you help me to find a lot?
Yes. We have our Real Estate affiliates companies to find a lot for you. This will be with our assistance. We tell you if is a good buy to build or not. 

In what areas are you building now?
We are now, building 9 houses in Poinciana area in Polk County 

Can I build duplex?
Yes. All depends if the duplex fit in a lot according to zoning approval and regulations. 

Can I build Townhomes?
Yes. All depends if the duplex fit in a lot according to zoning approval and regulations.

Can I build a single-family home?
Yes. 1 or 2 or 3 story homes are ok. All depends if the duplex fit in a lot according to zoning approval and regulations.

Can I build an apartment complex?
Yes. All depends if the duplex fit in a lot according to zoning approval and regulations.

Specifications

What are the specifications of the house your company build?

We use standard construction specifications

STANDARD SPECIFICATIONS FOR ORCHID HOUSE.

 STRUCTURAL FEATURES
Termite Soil Protection Guarantee.
Vapor Barrier.
2500 PSI Concrete Reinforced with Mesh and Steel.
Steel Reinforced Structural: Lintel with Structural Door and Window Header.
Design and Engineered in Accordance with Hurricane Resistant Requirements.
Engineered Roof: Wood Trusses.
Color Choice of Dimensional Fiberglass Roof Shingles with a 20 Year Warranty.
Maintenance Free Facia and Soffit. (Aluminum)

PLUMBING FEATURES
CPVC Water Lines.
Emergency Turn - Off Valves at Exposed Plumbing Lines.
2 Hose Bibs. (Front and rear)
Double Compartment Stainless Steel Sink with Spray.
Garbage Disposal.
Ice maker line
Washer and Dryer Laundry Hookups.

ELECTRICAL FEATURES
200 AMP Electrical Service.
Safety Ground Fault Electrical Receptacles in kitchen, baths and outside.
Phone pre-wires in every bedroom and kitchen.
Ceiling fan pre-wires in every bedroom and family room.
Cable Prewires in every bedroom and family room.  
Front door: Bell with chime.
Garage door opener
Smoke detector system

ENERGY SAVING FEATURES
High efficiency 13 Seer Heat Pump
R-30 ceiling insulation
Foil insulation on Exterior Masonry Walls.
50 Gallon Quick Recovery Hot Water Heater. (Tank Less IS OPTIONAL)
Roof and Soffit Ventilation.
Exterior Door Insulated with Weather Striping and Adjustable Threshold.

FLOORING
Kitchen and bathrooms: Tile

KITCHEN FEATURES
Wood Cabinets.

APPLIANCES
Dishwasher, Range and Range Hood, Stove, Refrigerator, Microwaves.

BATHROOM FEATURES
Wood Vanities.
Choice of Counter Top Color.
Shower walls and bathtub walls
Ceramic Wall Tile in Showers and Tubs (Optional).
Glass Shower Enclosure in Master Bath (Optional).

WINDOW DOORS AND INTERIOR TREEM
Steel 16 Panel Garage Door.
Six Panel Colonial Style Masonite Doors.
Six Panel Colonial Style Masonite Bi-folds.
Colonial Style Base Molding and Door Casings.
White aluminum windows with screens.
Marble or Wood Window Sills.

LANDSCAPE
5000 Sq. Ft. Sodded Lawn with Bahia Sod.
Plant Package with Mulch.

COLOR SELECTIONS
Exterior Paint Color.
Carpet and Vinyl Color
Interior Trim Color. (White or Off White).
Ceramic Tile Color. (White or Almond ).
Appliance Color. (White or Almond).
Plumbing Fixtures. (White or Almond).
Cabinets and top colors










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