Transcription: Colorado Springs Mortgage
Clay Clark’s in the house people. Hey. Hey. I’m in Clay Clark studios and THE Clay Clark just walked in. I had to stop the podcast midstream because, Clark was here. That is pretty cool when you see that guy. He’s an entrepreneur, extraordinaire, stopped in, waved kind of as he walk through. What we’re talking about today is construction costs. We just said there’s a margin you want to build in there to make sure that if you have any overages, if there’s anything that Colorado Springs Mortgage is going to cost a little bit more that you didn’t plan for, that you build a buffer,a hold back, a contingency fund, savings, something like that so that you’re not overpaying. Let’s go to the books, see what the book says about what some life figures on how you can calculate this cost when we come back.
Announcer: Broadcasting live from the Koala studios in Tulsa Oklahoma, you’re listening to the Steven and Tyler show.
Steve: All right, here is what we got. Let’s figure how much money you’ll need by simply adding the cost together. So let’s say your land is going to cost you– the lot of land that you’re buying is 50 grand. Your plans, respect, your permits all that cost you 20 grand. So now it’s 70. It’s 200 grand for the materials and labor and your closing costs are 10,000 bucks. What are we at now? The total cost for you to build it would be 280,000. To figure in that contingency or that whole back of that amount that would kind of cover you, you got to build in your cost of another 28,000 bucks.
That’s easy math right? 10% 0f 280,000 get 28,000. What you can do, and this is just a suggestion from Stevecurrington.com, your favorite mortgage lender is, if you’re really diligent and you get under budget, you go under budget. Let’s say it only cost you 278,000, you can take Colorado Springs Mortgage that $28,000 contingency that you had and that other 2,000 that you got under. So, you’re $30,000 under. You can give that to stevecurrington.com.
I think it’s reasonable. I think that if you did that, you’re not losing any money because you already built that and you already built 308,000 into it. You already thought it was going to cost you that much. So, why shouldn’t I get a commission? No. But seriously, I really want the 30,000 but really, the great thing about that is now if your house is worth 325, 333, 350,000, you just increased the amount of equity that you have in your house when you do go to sell it. Your loan-to-value is going to be lower. This is good. Right? Because now I thought this house was going to cost me 280,000 plus a 10% buffer and it only cost me 278. I’m winning hashtag, hashtag winning. This is good, this is real good.
Announcer: This is Stevecurrington.com and the Steven and Tyler show. Go to getkoalified.com.
Steve: And that’s where you can give me the 30,000 bucks that you’re over. But no, the 30,000 was built into your construction loan. You don’t have to go to the construction lender and get that last draw unless, we built in a buffer we didn’t use it. “Honey, let’s build a pool.” Maybe you can do that, I don’t Colorado Springs Mortgage know. Just something to think about. But you know, anytime in business when you’re building, your doing anything, you just want to [music] maybe try to focus on–
this is the song that I wrote. But be under budget. If you’re under budget, that’s a good thing. You thought it was going to cost you 280, but it cost you 278. You’re well under budget, and you’re well below your contingency. Nobody’s upset. Not Yolanda, I’ll tell you that. Steve Currington will give you a high five. Steve Currington will give you a slap on the back. I’ll be so proud of you. I just like that song. [laughs] I think maybe at the end of the podcast, it just gets people a little excited. A little happy.
I’ve given you some steps to what your costs should be to build a house. But you’re not going to be able to build a house, and do all this by listening to this 10 or 15-minute podcast. Here’s what you’re going to want to do. You’re going to want to go getkoalified.com. You’re going to Colorado Springs Mortgage want to fill out a form and send me a note. Then, you and I can have a conversation about your specific situation so that you can make sure that whatever it is that you do, is the right thing to do. That’s all.
There’s nothing wrong with that. You don’t want to get the koala [koala sound] mad. You do that, you’ll know, and you don’t have to worry about it. You’re not going to learn on a 12-minute podcast, that’s for sure. When you do, when you get all that done, this is the point of it. You’re going to be so excited when you get a new house [yell]. You’re going to be screaming this. This guy goes on for like 40 seconds. I don’t know how he does it. This is going to be a “We’ll run around the house together screaming.”
Nate’s in the studio looking at me like I’m crazy. That’s all we got. Got to getkoalified.com people.
Announcer: Broadcasting live from the Koala Studios in Tulsa, Oklahoma, you’re Colorado Springs Mortgage listening to the Steve N’ Tyler Show.
[00:11:58] [END OF AUDIO]