Originally Posted by JohnE
Congrats on the new home project. Not to threadjack, but I am in the same spot as you. Foundation goes in this week.
Cost plus is interesting. To build in that manner you have to REALLY trust who you've hired. I would not do that deal. Why wouldn't bank allow you to GC?
You are correct, it is a risky venture if you don't trust the guy you are working with but fortunately I do and the figures he provided me I have bid out myself and can't get it done any cheaper.
The banks in our area (Ohio) are no longer allowing anyone to GC their own home unless they are an approved contractor, which means, among other things, that they do it for a living and have built at least 3 homes in the past year. I could have GC'd it if I wanted to do an End Loan but my name is not Buffet or Gates unfortunately! So, in my scenario I agreed to a cost plus 8% set-up which, in my area, is well below the % that most GC's are charging.
Good luck on your home project, I hope it goes better than the start to mine!