1. In The Beginning
It’s a fact that you can build two homes as cheap if not cheaper than one. However, when you start out in this industry, I highly recommend you only build one home. In building that first home, not only are you going to get a tremendous education but also you’re going to discover if you truly like this industry. Many people hate this industry.
A number of years ago I had a computer software salesman take my construction training program. He was very successful in selling software, had accumulated quite a bit of cash and wanted to use it to finance a home building career. He took my course and planned to start three homes. I told him, “Don’t start three homes; just start one and find out if you really like this industry.” I couldn’t talk him out of it so he started three homes.
I lost touch with him for a while, but a year or so later I ran into him at a party and asked him if he built those three homes? He said he had. I ask him if he sold them? He said he had. I ask him if he made a profit? He said he made over $75,000 profit on those three homes! I said that was fantastic! I then asked him what he was building now. He said, “I’m not. I HATE this industry! I hate it with a passion and I’ll never, ever build another home again.”
Therefore, regardless of how much profit you can earn, you may truly hate this industry. Don’t multiply your hate by two or three. Multiply it by one, and after you build that one home, you’ll know if you truly like this industry. If you do, then go out and build multiple homes.
2. After The First One
If you build multiple homes, build them all in the same general area or the same subdivision. If you have five homes scattered around town you’re going to feel like you’re building 500 homes. I believe the most homes you can effectively manage by yourself, provided they’re in the same area, is five. If you have more than five, you should consider hiring a full-time job superintendent.
