Why are you building your own and how are you paying for it?

[Jared Drake]

How many are paying cash to finance your house? If (and it's starting to look like a huge "if") I ever get to build mine, I want to do it with cash a little at a time. The reason why is because I want to be debt free. Or at the very least only 20 or so thousand in debt for a house. Which limits me to house design, land size and how nicely the house is finished out as far as moulding and cabinets go. I'm seriously considering trying to build a cabinet in my garage (once we get some credit cards paid off) just to see if I can build a cabinet. I'd like to do as much of it myself as possible.
Jared

[ScottA]

I'm paying cash. It can be done but you've got to have discipline. Once you have some land sit down and look at your budget. You need to have enough cash ready to get dried in as fast as you can build it. I'm shooting for 60-90 days to get dried in after foundation. I'm about 30 days into it and the walls are up and I'm working on the loft floors. Once it's dried in you can slow down and only build as fast as your budget allows but it's going to mean giving up shopping anywhere other than home depot for a year or two. What do you want for christmas? Boards 

[n74tg]

Why am I building my own...lots of reasons.
1.  I've always wanted to build a house for myself, by myself, probably as much as anything just to see if I can do it.  I like big challenges.   
2.  It's cheaper by a long shot. 
3.  I've watched houses being built by others for a long time; it's kind of a hobby of mine.  I love to see how other people did something.  I learn from it.  I compare how they did it to how I would do it.  If I like their method better; I'll adopt it.
4.  Likewise, I've seen lots of poor, sloppy construction done by professionals.  I don't like that and I want it done right in my home.  If I do it myself, I can live with the results, even if they turn out less than perfect. 
5.  I have built lots of other things in my life; bigger projects, like a two car garage/workshop and a full sized airplane (from a kit).
6.  I have all the tools necessary to do a house project.
7.  Probably the most important reason of all; I'm retired and I have the time to do it. 

How am I paying for it...cash, as I go along. 

If you want to see what I've done so far, check out the blog address below.

Good luck with your project; I'll bet you can do it.

[Okie_Bob]

Looking good Tony~ Keep it up.
Okie Bob

[MountainDon]

Why are we planning on doing it ourselves?
A good chunk of that is personal satisfaction. The other good size chunk is it keeps the total cost down.

How are we paying for it?
Cash, via credit card for convenience and cash back rewards.

[Redoverfarm]

Scott don't forget about those neat little toys at Christmas . Finish or brad nailers, Drywall screw gun and the likes.

[phalynx]

We are building it for cash.  100%.  We are building it to prove that we can and because very few people can say they built their own house.  I can't think of a better family project, except maybe a fruitful garden.. 

[Willy]

I am building my own because I learned being in construction all my life it is way cheaper and if you want it done the way you want it, do it yourself. I paid cash for the land and putting the rest on a credit card till I get paid for the fire season around Sept-Oct. My home I paid cash for the property and did the rest as I could afford it. Now I have 6 buildings over 6,000 sq ft of covered space the Tax Man is ripping me off for! You will learn fast what they appraise it for is way more then it costs to build. Like around 3 to 5 times more depending on the building! Mark

[MikeT]

Why did I undertake this big DIY project?  I turned 40, and decided I needed to start setting goals relating to things I always wanted to do and reaching for them.  Took up ice hockey (love it!).  Ran two marathons (didn't love it).  Wanted a yurt off the grid but my wife wanted something more substantial--so now I am neck deep in year two of "scope creep",  and I love it.

How are we paying for this project?  Cash and some refinancing at the right time.  Still getting close to the end of the budget and we will have to slow down and do some "value engineering" if we are going to get to completion with only being marginally over budget.

mt

[n74tg]

Awww, come on Mike.  "Hitting the Wall" at mile 20 really isn't all that bad.

Tony
Houston Tenneco Marathon '92 '93 '94

==============================
Now, so this thread doesn't become hijacked, I just thought of another reason for building my own house.

8.  I like solving problems (and heaven knows there are about a million problems to solve once you reach the construction stage, no matter how meticulous you were in your planning).

[MikeT]

Re: marathons.  Mile 20/hitting the wall was only a small part of it.  The training was a drag--too much time taken out of a day for those long runs.  I recall hearing a quote from Bill Rogers, the longtime marathon runner who said that he really had respect for those people who took 4+ hours to complete the races and prepare because that is a long time compared to the 2+ hours it took him. 

I have actually used the mental determination that I somewhat developed with the training to get over the humps in building this beach house.  I have had to focus on short term goals and keep plugging a way at them so that I was not too daunted  by the big project.  I have also needed the encouragement and positive feedback from others to keep at it.

Final marathon-related comment:  when a go to bed after a weekend of long hours on the project, I find I have the same trouble sleeping that I did when I was training for and running those marathons.  I was so fatigued and in enough minor pain, and mentally ampted up that I had trouble staying asleep.

Anyway....  on to building.

mt

[Jared Drake]

Ok, so far it seems like everybody is building/wanting to build for some sort of personal satisfaction. Here's why I want to build, even though it looks like it may never happen now: The economy. Things are going downhill fast, and this upcoming tax rebate makes things worse. The leaders of this country are so financially stupid that they can't see they're building a disaster. I don't want to be one more factory worker that is suddenly out of a job yet still has a mortgage and car payments and credit cards to pay for and kids and a wife to feed. (In my defense, my wife developed a neurological disorder that took a year to diagnose. It left her unable to work so in order to pay our bills, tons of doctor bills had to go on credit cards. Not to mention lawyer bills that we had to have in order to fight our exes) I want to know that if need be, I can take a podunk job at the chicken processing plant here in town and still be able to live on 7.50/hr.
Jared

[Drew]

I'm owned by a house in the San Francisco Bay Area.  I've had too much going on earning a living and raising my kids to learn what I should know about plumbing, electricity, appliance repair, and carpentry to take care of the things I should be able to.  One bad earthquake and what I do for a living won't get me a job.

The kids are almost in college.  We have 20 acres 3 hours away and have been learning all those things I mentioned above.  We volunteer at a farm to learn how to build and run our own.  We're teaching kids how to manage a laying flock for all of our enrichment.  We get to keep the experience on everything we build.  And Phalynx had it right:  There's no better project!

Mark has a good point too.  I'd rather have the county tax my 20'x30' and leave my railroad container and hoop houses alone.

I do IT project management.  I have enough background in development and infrastructure to tell when a software engineer or architect is padding his estimate or is "under-skilled" for the project.  We call it the "BS Detector" and it is by no means unique to my industry.  This work lets me develop one calibrated for building and dealing with local government.

And:  Five hours into digging a trench in rock-filled clay soil I realized I was having a better time than I had all week at work.

It's all being paid for with cash.  Slowly, sometimes painfully so, but with cash.  Sometimes I come up with a better, cheaper solution while I've been waiting for the money.

[travcojim]

Jared, have you found any land yet?  You do live in siloam springs right? 

[glenn kangiser]

I was so fatigued and in enough minor pain, and mentally ampted up that I had trouble staying asleep.

Anyway....  on to building.

mt

Mike, do you find that you do building related problem solving during your sleep.  Do you go to bed wondering how you will do something and wake up knowing the answer?  Mike Oehler mentioned something like this.  He said when you come to a hard part - take a break - do something else -- the answer will come to you -- or something to that effect.

[glenn kangiser]

I'm owned by a house in the San Francisco Bay Area.  I've had too much going on earning a living and raising my kids to learn what I should know about plumbing, electricity, appliance repair, and carpentry to take care of the things I should be able to.  One bad earthquake and what I do for a living won't get me a job.

The kids are almost in college.  We have 20 acres 3 hours away and have been learning all those things I mentioned above.  We volunteer at a farm to learn how to build and run our own.  We're teaching kids how to manage a laying flock for all of our enrichment.  We get to keep the experience on everything we build.  And Phalynx had it right:  There's no better project!

Mark has a good point too.  I'd rather have the county tax my 20'x30' and leave my railroad container and hoop houses alone.

I do IT project management.  I have enough background in development and infrastructure to tell when a software engineer or architect is padding his estimate or is "under-skilled" for the project.  We call it the "BS Detector" and it is by no means unique to my industry.  This work lets me develop one calibrated for building and dealing with local government.

And:  Five hours into digging a trench in rock-filled clay soil I realized I was having a better time than I had all week at work.

It's all being paid for with cash.  Slowly, sometimes painfully so, but with cash.  Sometimes I come up with a better, cheaper solution while I've been waiting for the money.

Drew, you are a great example for the city people.  I know of others there who will be totally lost if the city fails.  They are totally dependent on the city and government aside from their jobs.  My hats off to you.

Is the reflection of the sun blinding you over there to the West?  hmm

[Jared Drake]

Jared, have you found any land yet?  You do live in siloam springs right? 

No, and right now I'm not looking. My concern right now is paying cars and credit cards off so that I can save enough for 2 or 3 acres and pay cash. I'm hoping, but not expecting, to be able to do it next year at tax time. I believe in God and I believe that things will happen when they should. In the meantime, I don't sweat it.

Jared

[ScottA]

Jared If your in Siloam Springs you're only about 30 miles from us.  Keep the faith. I'm sure things will work out for you.

[MaineRhino]

Why build?
- As mentioned above, we want to be ready for anything (almost) and somewhat self-sufficient.

How to pay?
- ALL cash, NO credit cards. By choice. Saving and spending cash makes one think more clearly. Do I really need that? Do I have the cash for it?  Don has a great idea with using the CC and paying it off monthly, but the majority of folks don't have the discipline for that.


As odd as it may sound, we found our land when we stopped looking. It sort of found us.

[Drew]

That's the ticket, Jared.  Instead of figuring out how to get more we figure out how to thrive (Not survive, but thrive) with less.  It's counterintuitive, but the more we can do for ourselves the less we'll count on the dollar staying strong or government programs to help us out.    There are a lot of people with variable rate mortgages and fixed incomes that are really sweating the economic downturn.

And thanks, Glenn.  It's good to come out here and sound off every so often.  I found myself giving a lecture (rant) on local food and certification bodies at the beginning of class last night.  Fortunately it was a music class with kindred souls.  That's not the case so much at work.   

[travcojim]

Scott, Springdale here, building out in Kingston.  Or at least daydreaming out there....

[ScottA]

Wow that's great travcojim! Lots of independent souls in these parts.

[Redoverfarm]

Glenn I have built the majority of my cabin going to sleep.  I guess this is usual  .  I think it is the one time of the day where your mind is relacked and not cluttered with everything else.  Yes hard to solve problems come easier to me at bedtime.  I'm thinking if I sleep more then it will be built faster

[peternap]

Scott and Don pretty much summed up my feelings. I am paying out of my pocket.

Scott don't forget about those neat little toys at Christmas . Finish or brad nailers, Drywall screw gun and the likes.

And sawmills...and new nail guns...

[StinkerBell]

Well I was planning on selling the kids on eBay, but alas they have rules. Then I thought maybe I could sell one of my extra organs. Can't do that. Then I thought I will sell my house. Ummmmm that would have been a good idea 18 months ago. I am left with cashing out the IRA, I am hoping (need to talk to a cpa) that if I do that I can get my structure up and then turn around and write off that new structure thus regaining back some of the penalty I have to pay.

I want to build most of it cause I am cheap and I want to know how to do it and how to repair it. I want to be independent.