Allowing the builder to run their companies and grow their business is what we give them the ability to do WITHOUT having to hire full time construction management and the cost of the benefits to go with that position.
Go find lots, work with lenders, deal with clients, mess with the city on permits, how to take on even more builds when you may already be maxed out on time, spend time with family and what about actually taking a VACATION if there is such a thing for a builder . . . . SOUND FAMILIAR? Well, it's every builder, including your home construction business, that has to deal with all of those things. All that takes time, alot of time. With Investor Construction on board you no longer have to deal with the daily operations of running jobsites or worrying about having to hire construction supervision or having to supply that supervision with benefits. Even if a builder actually likes being on jobsites they also know they have all those other responsibilities to deal with and most find it impossible to grow their business.
Although it may seem odd having another builder build for an experienced builder it really should not been seen that way. In fact having an experienced custom builder take over construction of another builders construction projects can actually help out an experienced builder in several ways. First, overflow and just having too much work. Successful builders and contractors can get too busy and they fret turning down work knowing that in bad times they wished they had taken on the extra work. This is where Investor Construction solves the problem. We step in and help out. If a builder gets too much work we can step in and take over construction of one or multiple properties for you the builder all while your name is still out front as the public builder. Most of the time the public does NOT even know we are actually a different company. For a client they may only know us as your on-site project manager still under your company name. Second, if you have too much work coming up and you were worried you would have to turn down work using Investor Construction allows you to actually take on that work. Now, instead of turning down work you keep on building without the worry of being overwhelmed. Even though we charge a low cost, flat fee this is money well spent. The profit from these extra projects should be seen as extra profit that the builder would have had to turn down anyway so having Investor Construction take on these additional properties provides extra profit for builders they may not have been able to realize by turning down those extra projects.
We use the phrase private label, wholesale construction because in many ways that is exactly what we do. Since we work with other builders, realtors, lenders, and others in the real estate industry we typically build under your company name and your marketing. In scenario one for our investors, who are usually out of state or out of the local area, we traditionally build under the "private label" model where we take out the permit under our name but all the sales and marketing to the public as well as signs it the yard are under the investors or investment groups marketing name. Just as with any "private label" manufacturing arrangement we are producing product under another companies name. In scenario two for other builders and contractors we are extremely flexible on working with other builders to set up a model that works best for them but most of the time we are building "wholesale" for that builder. Because we charge a low cost, flat fee to build the end result is we are usually 1/3 to 1/2 what other builders charge for construction management fees and this reduction in cost is passed back to the builder or contractor we are building for. Many times we can build a property at a lower cost, faster, and higher quality than the builder who hires us.
We do not lock builders into long term commitments because we know construction comes and goes. Builders can choose to use Investor Construction as an independent contractor for 1 project or multiple projects or at various times on an as-need basis.
Since we build for builders, contractors, lenders, and other real estate industry professionals we understand to make it financially possible for us to build for these companies we know we have to make it as cost effective as possible. We require the hiring company to be responsible for the financial obligations of construction and pay all the bills and we understand the hiring party is taking all the financial risk so we greatly discount our fee in order to be a part of the construction project. Our fee is based on our determination of the scope and timeline of the project but we base our fee on a low cost, flat fee basis and we do NOT ask for any benefits. In comparison to a hired employee who is providing construction management many of our clients we build for realize our pricing model is actually more cost effective than hiring a full time construction manager who is going to want a salary and benefits. Our model eliminates that when the hiring company combines the low cost, flat fee pay structure along with our short or long term independent contractor model.
We know every builder is different and construction comes and goes for a lot of reason so we keep our business model flexible. If it makes sense for both parties then we are interested in discussing any project a builder or developer may have in mind.