The Pro Design Builder Podcast
The Pro Design Builder Podcast
What is The Pro Design Builder Method
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What is up, my pro design builder family? How you doing? I'm Sam, also known as the Pro Design Builder. Uh, I'm the best in the business, and it's not even close. Uh, I'm I'm happy to bring you a video that's near and dear to my heart, which is the Pro Design Builder Method. What's in it and what it's about? Uh, I've been dropping a ton of trainings, I've taken some time off, but there's a good reason for that. Um, and I wanted to bring to you exactly what you get in our mastermind in the pro design builder method. So I truly look at my job as a guide, right? So uh I went through this long road myself, almost like 14-15 years ago, trying to figure out all this stuff to become a builder, right? So, if you don't know much about my story, my story began about 14-15 years ago as a real estate investor by accident. My wife was got into med school, she didn't want to go. She wrote me a letter. She's saying, Hey Sam, I don't want to go. Um, because I want to put family as a priority, da da da. And I remember asking her, What are we gonna do? And then that's when she handed me the book Rich Dad Poor Dad, and then that started me down the path of wholesaling, then house flipping, then becoming a builder. In the last eight years, I've spent my the majority of my time as a design build general contractor. So if you don't know what a design build general contractor slash builder is, is every aspect of the building process is done in-house, right? So that's the architect, that's the designer, that's the construction, that's all of the permitting, that's every aspect of the building process is done under one roof, and the reason for that is it allows for quality control and also knowing where all of the pieces fall um when a project is underway. It's a very good system to understand construction from start to finish. And what happened is I realized that there's tremendous value in what we do on a daily basis. So bringing it to the investment community, which I'm very passionate about, was going to be something that was very important to me, right? So I started my journey as a real estate investor, and I hired contractors, I fired contractors, hired more contractors, fired fired contractors, and on my third contractor, I finally got through my first project, and I realized that this business has contractor problems, and that's kind of how I got into uh construction, started managing my own projects, and from there I just kind of built and learned and and and scaled and did different projects, and and from there it just made sense to go into construction full-time. So now I'm in a place where I'm ready to give back to my community and continue to grow myself and continue to grow my ministry, which is in foster care, uh, and and have some more time flexibility to be able to do that. And the best way for me to do that is to show you guys the pro design builder method. So we're gonna jump right in. So this group is specifically, this method is specific for real estate investors that want to make the leap into new development, ground up development, and you want to build spec homes, duplexes, multifamily units. That's your wheelhouse, that's what you want to achieve, and we solve all of those problems with our method. So let's kind of just dive into some of the problems that we solve with our process. So lack of development knowledge. So investors that that don't know the steps to go through from dirt to uh to building, right? So we want to fill that particular gap. Fear of permitting zoning and red tape. There's so much red tape, and understanding the steps that are required and necessary to limit the confusion so that can minimize your fear and increase your opportunity, your chances of achieving that goal, which is something that's very important. So, understanding city requirements uh that kills deals, uh, overpaying for design and construction, that's something that could literally obliterate you on your first deal. But because we're so accustomed to hand holding and doing every single step and every single uh aspect, we'll dive into that a little bit later on how to value engineer and make sure that you create a system that controls the design decisions and the general contractor, right? So, inexperienced team, making sure that you hire the uh the right people on your team, like your architect, your GC, engineers, uh uh designers, attorneys, etc. Alright, so this is a system built for you to equip yourself with the A plus team walking in of professionals that know what they're doing. So, mismanaging construction process, equipping yourself with a construction process that allows you to know what are the next steps, how this system needs to look, what the contractor should be executing on, material orders, design, you know, every single aspect of the construction process that you should know will be solved with this particular program. So uh missed profit opportunities, not over-designing, um, poor market research, making sure that you have the right exit strategies, having multiple exit strategies in place at any given time, any given project is absolute must, and financial barriers, right? So understanding how to raise capital, um, joint venture with different people, make sure you have the right partners in place, or having the right um financial um education to acquire the funds necessary to get your project off the ground. So those are all the problems that we solved with the pro design builder method, and we kind of do a deep dive. And it first always starts with having the right foundation. Alright, so uh I'm gonna apologize about this, but I actually don't apologize about it because this is who I am and what I'm about. So I had to dive into scriptures for you so you could understand what laying the right foundation looks like. Alright, so this is in Matthew 24. Alright, so it says, Therefore, everyone who hears the words, words of mine, and puts them into practice is like a wise man who built his house on the rock. The rain came down, uh, the streams rose, and the winds blew and beat against the house. Yet it did not fall, because it had its foundation on the rock. Right, very important stuff. Alright, 26. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on the sand. The rain came down, the streams rose, and the winds blew and beat against the house, and it fell with a great crash. Alright, I just felt like that was just perfect wording for the type of business that we're in, which is actually building houses, right? And once you truly know and understand building a house on rock on a solid foundation, slab on grade, whether it's using piles to connect with the earth and all of the technical stuff that I don't want to bore you with, how important that is, especially having the right foundation, right? And because we are literally dealing with some of the elements that the scripture is talking about, it makes so much sense to kind of include that and making sure that you have the right foundation. So let's let's go over what the vision and land and laying the right foundation looks like. So this is kind of where we start. So understanding development versus flipping and the key differences between the two because they're not the same, right? Ground up construction takes takes a lot more time, and flipping is dealing with an existing structure. So understanding the key differences there, uh, defining your ideal product, whether you're going to be doing duplexes, spec homes, uh multifamily units, custom homes, you need to be a specialist in your particular um specialty, right? So don't be bouncing around in different areas, understanding zoning density and feasibility study, understanding what's necessary to include that in your financial package, how to analyze the lot setbacks, um, access to the property and topography on how to slope water away from you from your um from your structure. Very important stuff. Also, acquiring um off-market deals, understanding what to do that to what to do there, and having a checklist for all of these items, very important stuff, right? So um I cannot stress the foundation uh enough, and having the right foundation is gonna set you up for success in the future. So you'll you'll know exactly what to look for before you buy land and how to avoid hidden landmines, right? So one of the things I used to tell clients all the time when I was building for them is I know where all the booby traps are in the process, whether it's renovating a home or whether it's building a home, there's a system for everything, and there's a rhyme or a reason why we do what we do to avoid these particular landmines. So then we go into um module two where we start talking about uh design and pre-planning and what's important there. So before you draw any lines or you dig any holes, having the proper plan in place so you can secure your financing. So some of the things is building an A-team, like having the right architect, engineer, surveyor, designer, uh, attorney, and contractor on your team, those things are gonna be important, and understanding how to uh have questionnaires in place to make sure you hire the right person that is experienced is going to help move your process along. Site plan and building plan, what comes first? These are the types of things that we solve and get you a better understanding. Value engineering for profitable design. So value engineering is another word for cheap, right? So understanding how to manage your costs, but create a product that looks very good. So some of the big conglomerate builders like DR Horton and Lennar, right? They may have a bad reputation because they are value engineering so they can get in and out. No different for you, right? You want to build a better quality product, but also make sure that you are value engineering and controlling your costs so them so you're not overbuilding in that particular area. The worst thing that you could do is overbuild for a particular market. So getting uh conceptual plans first, submitting your um application to the city. So these are all steps that you need to know and nail down prior to taking on anything like this. So in the planning phase is going to be very important that you nail down what that looks like for you. So you'll avoid over-designing and keep the project profitable from the start. I cannot stress that enough. This is a numbers game, right? And a speed game. So understanding the numbers and getting in and out of the project and not overbuilding is going to be advantageous to you, especially in the building process, all right. So let's jump into uh module three where we talk about entitlements and permits, right? So I don't want to bore you in this particular area, but understanding how to navigate the city like a pro, right? So I'll take you even into some city commission meetings so you could understand what that looks like when you're when you're getting a variance or you're looking to get some entitlements uh for your particular parcel. It's gonna be very important. You may not have to do this, right? So uh one of the things that we teach is making sure that you buy a property that it has an existing structure on it, you know what is zoned, knock it down, and then rebuild a structure that's a little bit uh highest and best use, right? So you may not even have to deal with that, but here's some of the things that some of the challenges that come with that. So, what is entitlements? What do you what do you need it for? Uh, the types of permits, building, uh site, trees, utilities, demo, impact fees. You need to know all of these things and be up to speed on what those things are going to uh what what you're gonna be required to understand when you submit an application to the city. So working with plan reviewers and inspectors and building departments, very important stuff, handling variants, zoning changes, and conditional use. We we travel through all of these different topics to make sure that you have the base that you need and the confidence to walk into a city city uh building department and say, Hey, here's what I'm looking to do, here are my plans, here's my parcel, here's uh what I'm thinking, what are my limitations, what should I be looking at? Dah da da. We teach you all of those, all of those things. So we take you from fear and frustration out, we take the fear and frustration out of the permitting process. This process could hold up your project, so it's very important not to overlook it. So then from there, we go into the construction budgeting and financing plan, right? So this is the meat, the meat and potatoes to getting the money and making it work for you. Absolutely important. So uh creating a realistic construction budget, right? Understanding what each line item is and what it takes, but we put that together in a nice little spreadsheet formula for you. Understanding hard costs versus soft costs, what is it gonna take to um for the hard cost of the construction and the soft cost with the insulary fees and stuff like that with borrowing money, etc. How to structure a pro forma, which is absolutely necessary in re in gaining the funds and submitting your package to uh to the bank, uh also financing options, right? Whether it's hard money, DS, uh CR loans, joint venturing, or creative financing to structure your deals. These are gonna be very important in understanding what it's gonna take to raise capital, put together investment decks, pitching and partners, and stuff like that. Those are things gonna be that that may come later down the line, but it's gonna be important for you to have that understanding on what that's gonna look like for you, right? So you'll gain the confidence to fund um and financially model your entire development project. It's gonna be very important for you to uh understand that this is a numbers game, it will never change, right? So then we dive into project control systems. You're like, Sam, what are you talking about? So, how do you stay on time, stay on budget, and stay on mission, right? So, understanding what it's gonna take to put together a project binder that's gonna have all of the project information. So you could just go here to a project manager. Here you go, here's the project, run it. I'm in Hawaii, right? That's gonna take some time for you to figure that one out, but have the capability to be able to do that and have that understanding very early on and have that thought process is going to be pivotal in you structuring yourself as a developer, right? So this is not a one-off thing. This is not, hey, I'm gonna try to be a developer and do a one-off project. No, here's what we do, here's how we do it, here's our system, here's our binder, here's my project manager, here's how we streamline the construction project from start to completion, right? So that's the thought process that we bring with the pro design builder method. All right, and here's some of the things that we cover, right? How do you do week weekly meetings um with your contractor and the different um pieces involved in structuring your project? How do you read um Gantt charts? What are the key milestones um that you need to be aware of when it comes to the contractor uh financing with the banks, etc.? Right? See these are the types of things that you need to know. How do you have change order control and make sure that you're not changing your mind into the future and costing yourself money? Very important. Uh, something that I'm very strict on is making sure that you have change order control, and we do that with the planning process to limit any of that. Also, locking in your scope, right? So the more you're prepared that you are, and the more that you have documentation on what the scope is, the the easier it is to lock in the scope from the beginning, so the price doesn't increase through time, right? And it comes with preparation, and that's what I love about what we put together in this particular package. So managing draw schedules with the lenders and the general contractor, understanding what that is, and quality control and walking the site. So having templates in place for every single aspect that I talk about is going to be absolutely important for you to get through the project with quality and minimizing the hurdles and the mistakes, right? Because the mistakes will cost you money, and because I've made enough mistakes in my life, you don't need to make them, right? So that's the whole point in joining our mastermind group, right? So you're gaining control over the construction uh timeline like a true developer, right? So I can't I can't stress that stress that enough. So also you we're going to um show you how to read construction plans, right? Far surpasses what any anybody else is doing. Obviously, can't the contractor needs to know and understand how to read construction plans. You will eventually catch up and start learning how to read construction plans, but it's since it was something that was very important to me, I included that in our system of learning. Learning how to read construction plans, what are the key um uh factors, the key pages you need to know and understand? Looking at it at the project through the plans, and you could kind of see the end in mind. That's the point of plans, right? Architects put together the plans to be able to see the end in mind, and the contractor reads the plans and knows what the hurdles are based on the plans, um, and and how they're going to execute on those plans. But knowing and understanding what that looks like in advance is going to be very important for you. So, um, then it comes to managing the build. What what are different softwares that you're using to be able to manage this process? I would say in the beginning, you don't need softwares, but as you build your business and you build more than one home, having a software that allows you to really be up to date on where your project is at, especially if it's not necessarily close to you, you can't afford to drive there every day, right? You need different tools that's gonna help you understand what's going on on the job site and move things along. So, you know, working with GCs or acting as a owner builder. I don't recommend being an owner builder in the beginning, but once you gain your experience and you know uh the different facets of construction, then being an owner owner builder is completely okay, right? So you maximize and maximize um your uh your percentages and minimize your the markup that DGC. Will charge you to get the project off the ground, right? But you're gonna trade something for that, you're gonna trade time, right? And then you're gonna realize time is everything. Is it worth trading? You're gonna have to figure that one out. But understanding what that looks like, so managing subcontractors and inspections, uh, site safety, logistics, material delivery, these are all things that a pro design builder, you know, or um a design build firm typically handles, but understanding what those logistics look like because that's what construction is, is all logistics, weekly site reports, um, monitoring the process and how to handle delays or disputes with your trade partners. These are things going to be very important for you to know and understand how to navigate through these things because this process does have a lot of red tape, but if you have the right process in place, you have the right lens to see through the other side and to get there, right? So you'll develop a system to ensure the project gets done right, even with problems that arise, right? So there's nothing that's in life that's perfect, right? You're gonna have to navigate through a lot of different things, but if you have the right lens, it's easier to navigate through when you're all when you're already prepared versus when you're not, right? So, and then also having the right exit strategy, right? Whether you are going to sell right away or hold and maximize profit, so having a rent or a sell uh analysis, um you know, pricing the listing um strategy for a spec home, uh leasing your duplexes in multifamily units and then refinancing it, marketing plans for buyers, appraisals, etc. These are all your exit plans that you need to do and have to execute with confidence, profit, and and make sure that you keep your rep reputations intact, right? And then lastly, how we end is a rinse and repeat and scale process. So build a development business, not just a transaction, right? So having KPIs, automating your acquisitions pipeline, so building your brand as a developer, hiring staff, uh, and how to joint venture, right? So you'll leave with a roadmap roadmap on how to get started from concept to completion, how we do it in design build. Right? Very important stuff, right? This is this is not for the faint at heart, this is not for the inexperienced. Can you get it done without having experience? Yes, but you should have some sort of real estate background or real estate experience before you decide to take on such a big elephant uh as new development. So I I heard the saying. This is there, there's three types of people, right? So uh there's frequent people, all right. These are frequent people are people that consume information and they'll continue to consume information for free, and they'll gain the knowledge, gain the knowledge, and then they'll never do anything with it. All right, so this program is not for you. So if you want to just consume lives, consume videos, there's plenty of stuff on YouTube when it comes to new development. This program isn't for you, right? And then there's also cheap quint people, all right. So who cheap cheap quint people are is they're willing to do it as long as it's cheap, right? So there's this uh there's this notion that people are trading time for money, right? And that the people that are trading time for money and no disrespect or anything like that, these are typically W-2, you know, employees, you know, they're not um uh entrepreneurs. Uh the the affluent and rich people do not trade time for money. There is no cap on their time, right? So, and then there's prequent people, right? These people are willing to pay a premium for the right service and the speed to get to their destination, and this is what this program is for, all right? It's for prequent people that are looking to make a shift into new development and not waste a ton of time, right? So, those are the type of people that this program is ideal for, those are the type of people that I want to work with, and I feel like I'll continue to add value to the people in this group, no problem, all right. So, I wanted to just kind of give you guys a baseline on what is the pro design builder method, what's in it, what it's not, what it allows you to achieve, and how can you grow in this next chapter? I know for me, I'm looking forward to helping a lot of different people build generational wealth uh in their families. That's something that I'm passionate about. I'm also passionate about the work that I do in foster care and having the freedom and flexibility to continue to say yes to different kids and and and and help them work through their challenges. And you'll you'll understand more and more about why that's important to me. But I wanted to bring you this baseline. So some of the things that we do is we do a video um lesson, um, real life examples and walkthroughs through through a project. We include a real life development project in our system. Right, we have uh a weekly coaching call with Q ⁇ A's, we have a private uh group access, and that allows you to um get your questions answered, live deal review if you're actively working on on deals, and more importantly, what this is about is access to the community of people that want more, all right, that are doing more, that want to grow and achieve in new development projects. That's where the power is uh with being around like-minded people, right? You could really grow your vision and grow into the space that you want to be in a faster timeline, right? So that's that's the value that the Pro Design Builder uh system uh brings to the table. So I just want to say thank you for listening to uh me. Like I said, I'm Sam, also known as the Pro Design Builder, the best in the business, and it's not even close. If you have any questions, don't be afraid to message me. Have a good day.