SHME Process Overview

 1

Land Acquisition

It all starts with the “dirt." When acquiring a property, there are things you must be aware of before you make a land purchase. SpecHomesMadeEasy will help you avoid the pitfalls and help you step-by-step.

 2

Budget Meeting

Market conditions and land acquisition cost will determine the type of home you will build. Based on this, SpecHomesMadeEasy will help you set the construction budget. Familiarity and knowledge of the market conditions are crucial before moving forward with the next step (plan design).

 3

Plan Design

Floor plans and elevations greatly impact the costs to finish a home. You can download plans or a SpecHomesMadeEasy designer will help you create the optimal design to fit your specific lot needs. We charge (ask for price) for design (includes client meeting time, code analysis and customization).

 4

CG Rendering

Once the conceptual designs are done, we can get it rendered in computer graphics. Once you have your plan design, SpecHomesMadeEasy can provide an amazingly life-like computer graphic rendering of the exterior of the home. Additionally a 360 degree interior rendering is available. Depending on specifications and design complexity, rendering can cost approximately $500-$1500 per image.

 5

Pre-Sale Marketing

Once you have the plan design, the home specifications, the CG renderings, and the home price established, it is time to start the pre-sale marketing activities. The key is to get a customer BEFORE you begin any part of the construction.

 6

Drafting and Engineering

Concurrent to your pre-sales activities, SpecHomesMadeEasy will create a complete set of construction plans and structural engineering from $1.85/SqFt to $3.25/Sqft depending on the complexity of the design (includes a full set of construction drawings, complete structural engineering with calculation books, truss- & wall panel engineering drawings and floor joist layout and calculations). If any questions arise regarding the drawings or structural engineering, SpecHomesMadeEasy will address all inquiries enabling you to focus on what is most important, marketing and sales.

 7

Building Permit

Following receipt of the construction plans, you must submit them to the appropriate authority to receive a building permit. SpecHomesMadeEasy can also provide the site plan for $300.

 8

OTC Loan Approval

You need to get your prospective buyer approved by the SpecHomesMadeEasy preferred lender. SpecHomesMadeEasy will provide the bank with the necessary cost breakdown (based upon current marketing conditions) which will be used to determine the amount of the construction loan.

 9

Purchase and Sale Agreement with the Buyer

Following approval of the customer for an OTC Loan, you and your customer must sign a Purchase and Sale Agreement (PSA). SpecHomesMadeEasy will provide a PSA specifically for the SHME process. This ensures you have all the applicable legal protections included without having to spend thousands of dollars in legal consultation fees.

 10

Earnest Money Deposit

The buyer will deposit 2% of the Home Sales Price into a designated escrow account to be held as an earnest money deposit.

 11

Closing and Pre-Con Meeting with SpecHomesMadeEasy

With OTC loans, closings occur before you begin construction. This ensures you have the funds secured before you start work on the home. Following your OTC closing, you will meet with SpecHomesMadeEasy to review your construction schedule. Remember, the key to making money on a spec home is to be your own builder which means managing the job-site and subcontractors and staying on-schedule. If you have to jump in and perform construction work, something is going wrong from a project management standpoint.

 12

SHME Construction

SHME can take over the hardest part of the construction process for you; the foundation and framing. With experienced, reliable foundation and framing crews, along with the SHME framing process, you will be amazed how quickly you will have a framed home structure. This is critical to your cash flow since the bank only releases funds once they have a lien-able structure.

 13

Remaining Construction

Once the roof sheathing is nailed off (indicating the completion of the SHME Framing System), it is time for your project management skills to shine. Your must coordinate the subcontractors to complete their trades on schedule. In certain areas, SpecHomesMadeEasy can provide a list of sub-contractors.

 14

Completion

Upon completion of the home, you will turn the keys over to the new homeowner and count your profits.