Isn't That Rich Podcast

As many of you know, I’ve embarked on the ambitious and often overwhelming journey of building my dream home from the ground up. It’s been a wild ride full of excitement, stress, unexpected expenses, and a whole lot of learning. Today, I want to share with you where things stand, what I've learned along the way, and some tips for anyone considering taking on a similar project.

The Excitement of Seeing Progress: From Slab to Framing

When we last left off, I had just completed some of the early groundwork—literally. My property had been graded, the footings were in place, and termite treatment had been applied. It was a relief to get those initial steps completed, but I quickly learned that the real work was just beginning.

One of the first major milestones was pouring the concrete slab for my home. Since I opted for a slab foundation instead of a crawl space, this was a big deal. The day the slab was poured, I felt like things were really starting to happen. I could walk across the foundation and begin to imagine the layout of my future home. However, even this initial step wasn’t without its surprises.

For those considering a slab foundation, it’s important to remember that before the concrete is poured, all of your plumbing needs to be in place. This includes any pipes that will run under the slab, which means coordinating with your plumber early on. Once the slab was poured, we had to wait for it to cure before moving on to the next stage: framing.

Seeing the framing go up was probably one of the most exciting moments of this entire process. Within a matter of days, the skeleton of my house was standing tall. I could finally walk through what would soon be my kitchen, living room, and bedrooms. The sense of progress was thrilling. However, that excitement quickly gave way to the reality of managing timelines, budgets, and dealing with the inevitable delays.

The Reality of Bids and Unexpected Costs

One of the biggest lessons I’ve learned is that the bids you receive at the beginning of the project are just estimates—things can and will change. For example, when I first got bids for lumber, I was given a price that seemed reasonable. But as the months went by and supply chain issues continued to disrupt the market, those prices started to climb. What I initially thought would be a stable cost turned into one of the most significant budget increases.

The volatility in material costs was a tough pill to swallow. For instance, the price of a 2x4 piece of lumber jumped from $9 to $15 at one point. When you’re ordering hundreds of these, the cost adds up fast. It wasn’t just lumber, either. Other materials, like the zip system I used to seal my home, also saw price increases. The zip system is an energy-efficient alternative to the traditional OSB board with tarping. It’s a more modern solution, but it came with a 30% price increase over what I was originally quoted.

Despite these unexpected costs, I’ve learned that some investments are worth it. Spending a bit more now on things like energy efficiency can save a lot in the long run. For example, by choosing the zip system, I’m likely to see lower energy bills, which will help offset the higher upfront costs over time. It’s all about finding that balance between quality and cost.

The Financial Side: Navigating the Construction Loan Process

Financing a home build is another area where I’ve learned a lot. I started by paying for some of the initial costs out of pocket, using savings I had set aside specifically for this project. However, as the build progressed, I began tapping into my construction loan.

For those unfamiliar with how construction loans work, here’s a quick overview: A construction loan is typically short-term and used to cover the costs of building your home. Unlike a traditional mortgage, you don’t receive the full loan amount upfront. Instead, the funds are released in stages as the work progresses. Each time you draw from the loan, you start paying interest on that amount.

The tricky part is managing the timing. Delays in getting materials or scheduling contractors can extend the build time, which in turn increases the amount of interest you’re paying. For example, we had to wait about a month for my trusses to arrive, which stalled progress. During that time, I was still making interest payments on the loan without seeing any real advancement on the house.

To keep things moving, I’ve learned the importance of having the next trade lined up and ready to go. It’s crucial to coordinate with contractors so that as soon as one phase is complete, the next can begin. This is easier said than done, especially in the winter months when contractors are busy and the weather can cause further delays. But keeping the momentum going is key to staying on budget and on schedule.

Managing the Build: Organization and Planning Are Essential

If I had to give one piece of advice to anyone considering building a home, it would be to stay organized and plan as much as possible in advance. There are so many moving parts, and if one thing gets delayed, it can throw off the entire schedule.

One of the best decisions I made was ordering my windows well in advance. I placed the order in September, knowing they wouldn’t be needed for several months. Windows, along with doors, are one of those items that can have long lead times, so it’s crucial to get them ordered early.

Another area where planning ahead is critical is scheduling the trades. For example, once the framing was done, I had to coordinate with the roofer, who installed the shingles before the windows and doors were put in. This order of operations is essential because you don’t want to risk damaging newly installed windows with falling roofing materials.

From the Outside In: Insulation, Drywall, and the Finishing Touches

Once the exterior of the house was sealed with the zip system and the roof was shingled, it was time to focus on the interior. This phase includes insulation, drywall, and eventually all the finishes that make a house feel like a home.

Insulation is a critical step because it directly impacts the energy efficiency of the home. I opted for a combination of traditional insulation in the walls and spray foam insulation in the roof. The spray foam helps to keep the heat in during the winter and out during the summer, making the home more comfortable and energy-efficient year-round.

After insulation comes drywall, which is another significant cost. At this stage, I’m also thinking ahead to things like painting, flooring, and cabinetry. These decisions can be overwhelming because they’re what you’ll see and use every day in your home. I’m currently in the process of ordering cabinetry and planning for other interior details, like lighting and plumbing fixtures.

The Construction Loan Process: A Closer Look

Managing the construction loan has been a learning experience in itself. Every time I need to pay a contractor, I send the invoice to my lender, who then releases the funds into my construction account. From there, I request a cashier’s check made out to the contractor and send it off along with a lien waiver. The contractor signs the lien waiver, which releases me from any future claims, and sends it back to me.

This process has been relatively smooth, but it’s one that requires careful attention to detail. I keep a big binder with all my invoices, receipts, and lien waivers, organized by date and contractor. This helps me stay on top of what’s been paid and ensures that everything is properly documented.

One thing I was initially concerned about was whether contractors would actually sign and return the lien waivers. Thankfully, everyone I’ve worked with has been professional and prompt, likely because they’re experienced and know how the process works. However, I’ve heard horror stories from others about contractors who disappear after being paid, leaving homeowners with unfinished work and no recourse. That’s why it’s so important to work with reputable contractors and always get everything in writing.

What’s Next: The Home Stretch

As we move into the new year, I’m focused on getting the house ready for interior finishes. This includes everything from installing drywall and painting to choosing flooring and light fixtures. It’s the stage where the house starts to feel like a home, and I’m excited to see it all come together.

However, I’m also mindful of the fact that there’s still a lot to do. The winter months can be challenging, not just because of the weather, but also because contractors are often juggling multiple jobs. I’m doing my best to keep things moving, but I’ve learned to be patient and flexible when things don’t go according to plan.

Reflections on the Journey

Building a home is one of the most challenging things I’ve ever done, but it’s also been incredibly rewarding. I’ve learned so much about the construction process, budgeting, and project management. If I were to do it again, I could probably complete the project much faster because of everything I’ve learned.

For those of you considering building your own home, my advice is simple: be organized, stay on top of your budget, and be prepared for the unexpected. There will be moments when it feels overwhelming, but in the end, having a home that’s uniquely yours makes it all worth it.

I’m looking forward to the day when I can move in and start making memories in my new home. Stay tuned for the next update—I’m hoping to be moved in by spring, and I can’t wait to share the finished product with you all!