How To Build A House: The Ultimate OWNER BUILDER Guide!

My name is Case Robinson, and I am 26
old and I have successfully built 2 homes

As an owner-builder and right now I am
planning my third home build.

I've created this video to be the most
in-depth video on YouTube that will

actually teach you to build your own
house.

I'm going to be covering everything from
obtaining an owner-builder loan and

getting the financing you'll need to
actually designing the house, to finding

and hiring, to sub-contractors and
supplies that you'll need, to actually

building the house and actually managing
the job site.

And, then all the way to the final blue
tape walk-through and final inspection of

your completed home build.

If you are interested in building your
house,

Then you should click the link down below
and check out my digital course,

where I teach you everything you need to
know to actually take on your first build.

As long as I provide ten PDFs and
downloadable Excel sheets that will

assist you throughout your first home
build.

So, with that said, let's get into the
video.

So, the very first step in this building-
your-own-house process is figuring out

what I like to refer to as the initial
idea.

And, if you are watching this video, then
you probably already have this initial

idea appear in your head, and that is
likely one of the three options

that I am about to list.

Either you are thinking that you want to
build a house to rent,

or you're thinking you want to build a
house to sell,

or lastly, and probably the most popular,
you're thinking you want to build

a house to occupy and live in then for
your primary residence.

Building a house to rent can be building
a single family property to keep as a

rental property, long-term real estate
investment,

or secondly, you might be thinking of
building a duplex or a triplex

or a fourplex or maybe even a small scale
apartment complex,

or maybe even a big scale apartment
complex to keep as a long-term

real estate investment property.

And then, lastly, building a house to
occupy and live in for your primary

residence is obvious, you know, maybe
you're thinking you want to build a

slightly larger house than what you live
in right now with a pool.

That way, you can live there, you know,
5 to 15 years and have your family

grow into that house.

Or maybe you're like "Hey, I have all the
money in the world.

I have an unlimited budget and I'm ready
to retire and build my, you know, custom

dream home on 200 acres and wherever
that may be.

So, those are likely the three options for
your initial idea, and that is the very

first step to the building-your-own-
house process.

Just determining what that initial idea
is.

Are you going to build a house to rent,
to sell, or to live in as your primary

residence.

The second step to the building-your-own-
house process is determining your

preliminary budget for the project, and
this kind of depends on what financing

options you decide to go with on your home
building.

And, for the most part, there are two main
financing options.

The first one being cash in your own
personal resources, and then the second

one would be a construction loan of
some sort.

Cash in your own personal resources could
be considered a number of things.

One, and most importantly

cash that you have in the bank

Whether that be a checking account or a
savings account,

The second option may be a credit card of
some sort, that you think you can

utilize on the home build.

Third option might be just like
liquidating some stocks, or something

that you're investing into elsewhere.

Maybe you have a really good friend or
family member who is willing

to give you money to go out and build
your house.

Not that I know a friend that would
give me

money to go build my own house but hey

cash and your own personal resources is

essentially whatever you have directly
avaliable to you without getting

a construction loan. Right?

So, I actually built my first- two houses
using cash and credit cards,

so, I've never got a construction loan but

as of right now I'm getting one for my
next home build.

Determining your budget if you are
building with cash, and your own

personal recources, is simply a matter

of calculating how much you have and then

calculating how much you're willing to
take from that and invest into your

home build.

Whether that be you're building to rent,
or sell, or keep as your primary residence

right so thats how you determine your
preliminary budget, if you're going to

finance your home build with cash.

Now secondly, if you are considering to

build a house to rent, or to sell, and
you're interested in getting a

construction loan, then you can
probably pretty easily

obtain a commercial loan to build
that house to rent or sell.

You will notice that building a house
to rent or sell , both have in common

that you're building that project
to make money, in attempt to

make money, and that's why
commercial loans exist

So if you go in and meet with a commercial
lendor they can give you commercial loans

not based on your income situation,

instead they evaluate the project itself,

and they evaluate the deal.

If you're building a fourplex, they

evaluate all the numbers, they crunch
the numbers on the deal and they say

"This looks like a good investment, we
will give you a commercial loan

to fund your deal"

Right? And so if you're looking to build

a house to rent or sell, then you can

probably pretty easily get a commercial
loan but maybe we'll talk about that

in another video, because I'm sure most

of you people watching this video are
interested in building your own house

to occupy and live in as your primary
residence, and the most common type of

loan you will be able to get, especially

if you are considering building your own
house, as your own general contractor,

as an owner-builder, will be what's
called an 'owner-builder loan'

That is a construction to permenant loan,
with a one time close.

There are three main qualifications when

it comes to an owner-builder loan, of

course these qualifications are going to

vary from lender to lender,

but with the lender that I'm working

with currently, I'm getting my
owner-builder loan for the house that

I'm about to build, there are three main
qualifications, and they are:

A minimum of a 675 credit score

Secondly, they approve 45% debt to income
ratio

And then lastly, they require a
15% down payment.

so, the first one being credit score

that's a really easy one to check,
you've got to have a minumum of 675.

If you do not monitor your credit as of
right now, I highly reccomend you do so

you know- what are you doing with your
life if you're not checking your credit?

there are several free apps that you can
download on your handy-dandy iphone,

or whatever phone you may have, and the

most popular ones are Experian and
Credit Karma.

You can monitor your credit also through
your banking app, I'm sure if you have

something like Chase Bank or CapitalOne.

Anyways, here's Credit Karma

Credit Karma shows my credit to be
right there. 753 and 738 and then

on Experian, my credit score shows to be
771.

Yeah my credit score is not the best,

because my credit takes an absolute
beating

I applied for some kind of new credit