Some owners decide to act as their own general contractor for a remodel or addition to their house. This approach is not for everybody, and you should research it thoroughly before undertaking a project as your own general contractor. Most people who have full-time jobs do not have time to also do the job of a general contractor.
Responsibilities of the Owner-Builder
As the general contractor, you pull all the building permits, order materials and make sure all supplier are paid. An owner/Builder is also responsible for supervising, scheduling and paying subcontractors. If you use anyone other than your immediate family or a licensed subcontrctor for work, you may be considered an "employer". Employers must register with the state and federal governments and are obligated to participate in state and federal income tax withholding, federal social security taxes, workers' compensation insurance, disability insurance costs, and unemployment compensation contributions.
Hiring only licensed subcontractors prevents you from being an "employer", but you will still spend time supervising, scheduling and paying subcontractors. Often the owner will purchase plumbing fixtures, light fixtures, cabinets, ceramic tile and stone. For most owners (especially those who have full-time jobs) this part of the job is as much as they have time for.
The Downside of Being an Owner-Builder
Unless you are knowledgeable about construction, mistakes can be costly and take additional time to repair. Good general contractors use their building experience to trouble-shoot the subcontractors' work and to keep the project running smoothly. Many homeowners underestimate just how costly inexperience can be. If in doubt, ask a contractor to tell stories about lessons he learned as he was starting out.
Subcontractors and suppliers who are not paid on schedule may file mechanic's liens against your property. Educate yourself about mechanic's liens and how to prevent them.
If your workers are injured, or your subcontractors are not licensed or do not carry liability insurance or worker's compensation and they are injured, you could be asked to pay for injuries and rehabilitation through your homeowner's insurance policy or face lawsuits.
Successful Owner-Builder Experiences
After 25 years in the architectural profession, I have seen only a few people who successfully managed owner-builder experiences. Most of these were people in the design or construction professions, or who had close friends in the building trades. The one exception was a housewife who spoke in glowing terms of having acted as general contractor for her kitchen remodel. She did not have a full-time job, she enjoyed managing people, and her husband (trained as an architect) was available for consultation.
Resources
The California Contractors State License Board www.cslb.ca - has excellent project planning tips and resources
The Building Education Center in Berkeley, CA www.bldgeductr.org provides a variety of seminars, short classes, and hands-on workshops aimed at educating the Owner-Contractor.
Friday, July 30, 2010
Wednesday, July 21, 2010
Tuesday, July 20, 2010
2010 is a great year to buy a home!
Home Buying Seminar Dates Available in Burlingame...
July 24th from 11-12:30pm
July 27th from 6-7:30pm
Space is limited. Please RSVP.
Topics
• Advantages of buying a home in 2010
• How the Stimulus Plan benefits first time homebuyers
• Tax Credits available for home ownership
• Owning vs renting comparison
• State of the San Mateo County real estate market
• Current mortgage interest rates and programs available
• Steps for a successful home or condo purchase
• Differences between owning a condo, townhome or single family home
• Steps to finance your home purchase
• Advantages of owning a home on the San Francisco Peninsula
• Survey of advice from other First Time Homebuyers
• How to select a good Realtor
• Real Estate Negotiations
Hosted by
Eileen Horan
Mortgage Broker
Mortgage California
Aimee Snodgrass Klarich
Realtor
Alain Pinel Realtors- Burlingame
DRE 01765417
Monday, July 19, 2010
7 Things NOT to do when applying for a Home Loan
This is a list of things to steer clear of when you are seeking to obtain financing for a home. The following items may prove to be a detriment when you wish to move forward with the loan process.
1. Don’t buy or lease an auto!
Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios by increasing your monthly debt and prevent you from qualifying for a home loan.
2. Don’t move assets from one bank account to another!
These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists.
3. Don’t change jobs!
A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
4. Don’t buy new furniture or major appliances for your “new home!”
If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet the closing costs.
5. Don’t run a Credit/TRW report on yourself!
This will show as an inquiry on your lender’s credit report. Inquiries must be explained in writing.
6. Don’t attempt to consolidate bills before speaking with your lender!
The lender can advise you if this needs to be done.
7. Don’t pack or ship information needed for the loan application!
Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
1. Don’t buy or lease an auto!
Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios by increasing your monthly debt and prevent you from qualifying for a home loan.
2. Don’t move assets from one bank account to another!
These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists.
3. Don’t change jobs!
A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
4. Don’t buy new furniture or major appliances for your “new home!”
If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet the closing costs.
5. Don’t run a Credit/TRW report on yourself!
This will show as an inquiry on your lender’s credit report. Inquiries must be explained in writing.
6. Don’t attempt to consolidate bills before speaking with your lender!
The lender can advise you if this needs to be done.
7. Don’t pack or ship information needed for the loan application!
Important paperwork such as W-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction.
Thursday, July 1, 2010
Women On Fire...Who are we?
Welcome to the Women on Fire blog - We thought we would start off our first blog post by introducing the members...
Who is Women on Fire?
We are a San Francisco Peninsula professional and supportive woman's group that connects on a regular basis. A time to learn, share and support each other through professional and personal endeavors.
The members of Women on Fire in no particular order...
As an experienced advisor with Ameriprise Financial I focus on working with clients that require more complex financial planning. At Ameriprise, our unique and collaborative Dream> Plan> Track> ® approach to financial planning starts with your dreams, not just the numbers. I will work with you to thoroughly understand your goals and review your current financial situation in order to create a financial plan that suits your specific needs, both in the short and long term. I understand that a financial plan is not just about the numbers, it is about understanding your hopes and dreams for the future and how a financial plan can help you get there. I appreciate that you’ve worked hard to build your financial stability and we’ll work together to ensure your plan is continually working just as hard for you and your dreams.
website: www.ameripriseadvisors.com/lois.s.wang
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Aimee Klarich, Realtor
Since 2006, Aimee has been driven to unite people and their homes. As the fifth generation in her family to live on the San Francisco Peninsula, her in-depth knowledge and appreciation of Peninsula neighborhoods and schools is one of her most valuable assets as a Realtor. Aimee enables her clients to negotiate the best sale price and terms through tireless market research and innovative online marketing. She knows your time is precious therefore, she provides timely and meaningful communication through email, texting and phone. Aimee’s extensive knowledge from working with a variety of Peninsula homebuyers and sellers is a benefit to her clients. She firmly believes that every client is special and she welcomes the opportunity of working with you.
website: www.aimeeklarich.com
Eileen Horan, Mortgage Broker
As a Mortgage Broker, Eileen believes her number one priority is securing the best financing available in the market for her clients while also educating them in the largest financial transaction of their life. Eileen takes the extra step with every client to ensure that all aspects are covered in detail to give them a smooth transaction. Whether the client is refinancing, purchasing, investing, or a first time home buyer, Eileen does the full research with each unique situation to provide the best experience.
website: www.mortgagecalifornia.com/eileenhoran
Elena Daciuk, Wardrobe Consultant
As a fashion wardrobe consultant, personal shopper and professional fashion stylist for the Jana Kos collection, Elena has helped her clients in every profession “Dress for Success”. She does this by teaching women & men across Northern California how to look their best and develop their own personal style in fashion wardrobes and appearance. As a personal shopper, Elena’s fashion expertise provides guidance on wardrobe building and how to update your closet with today’s styles. As a Jana Kos style partner, Elena can offer you fashionable designer clothing at sensible prices.
blog: www.fabulousfinds-elena.blogspot.com
Kerry Roth, Décor Staging - Home Renovation & Design
Kerry is the creative force behind Decor Staging's success as the mid-peninsula's premier full service home staging and renovation company. Her goal is to assist homeowner's in obtaining the maximum equity possible out of their homes with renovation and staging options that yield the highest possible return of investment. She offers her clients a full range of services including staging, renovation design, redesign, color consulting, space planning and outdoor living. With her extensive furnishing, art and accessory inventory she can transform any home into a showcase property that will attract the largest possible market share of potential buyers.
website: www.decorstaging.com
Crystal-Marie Mitchell – Graphic Design
Crystal-Marie Mitchell is the Owner/Creative Director of Isryldesigns. IsryDesigns is a bay area graphic design firm that believes graphic design is a unique tool that unites creatives and entrepreneurs on their journey to exciting company branding. IsrylDesigns design philosophy is simple: "We are a design firm that merges aesthetics, functionality, and sophistication while maintaining the professionalism that our clients look for in a design firm." "Let us turn your design dreams a reality!"
website: www.isryldesigns.com
Karen Drozda, Architect
Working with clients in the San Francisco Bay Area since 1989, Karen enjoys finding efficient and elegant solutions to design problems. Whether it involves commercial office space, manufacturing facilities, or single-family homes, each project is a complex response to context, function and design intent. Her ability to visualize solutions, and her sense of color and texture help create spaces that people enjoy. Included in each project is a concern for the efficient use of natural resources through thoughtful design and product selections.
website: www.dpluso.com
Virginia Trowbridge, Insurance Agent
As a key member of the Trowbridge Insurance team, Virginia brings 25 years of personal experience in management, problem solving and customer service. Always keeping her clients as her primary focus, is what sets her apart from other agents. She is committed in working with you to make sure you get the lowest premiums possible but will also focus on making sure you are properly insured. “We don’t plan to fail, we fail to plan.” Bad things can and do happen to good people, and when they do, she is there to help you through them.
website: www.trowbridgeins.com
If you are interested in membership opportunities - please contact us at membership@womenonfireca.com
You can also follow us on facebook: Women On Fire
Who is Women on Fire?
We are a San Francisco Peninsula professional and supportive woman's group that connects on a regular basis. A time to learn, share and support each other through professional and personal endeavors.
The members of Women on Fire in no particular order...
As an experienced advisor with Ameriprise Financial I focus on working with clients that require more complex financial planning. At Ameriprise, our unique and collaborative Dream> Plan> Track> ® approach to financial planning starts with your dreams, not just the numbers. I will work with you to thoroughly understand your goals and review your current financial situation in order to create a financial plan that suits your specific needs, both in the short and long term. I understand that a financial plan is not just about the numbers, it is about understanding your hopes and dreams for the future and how a financial plan can help you get there. I appreciate that you’ve worked hard to build your financial stability and we’ll work together to ensure your plan is continually working just as hard for you and your dreams.
website: www.ameripriseadvisors.com/lois.s.wang
.jpg)
Since 2006, Aimee has been driven to unite people and their homes. As the fifth generation in her family to live on the San Francisco Peninsula, her in-depth knowledge and appreciation of Peninsula neighborhoods and schools is one of her most valuable assets as a Realtor. Aimee enables her clients to negotiate the best sale price and terms through tireless market research and innovative online marketing. She knows your time is precious therefore, she provides timely and meaningful communication through email, texting and phone. Aimee’s extensive knowledge from working with a variety of Peninsula homebuyers and sellers is a benefit to her clients. She firmly believes that every client is special and she welcomes the opportunity of working with you.
website: www.aimeeklarich.com
Eileen Horan, Mortgage BrokerAs a Mortgage Broker, Eileen believes her number one priority is securing the best financing available in the market for her clients while also educating them in the largest financial transaction of their life. Eileen takes the extra step with every client to ensure that all aspects are covered in detail to give them a smooth transaction. Whether the client is refinancing, purchasing, investing, or a first time home buyer, Eileen does the full research with each unique situation to provide the best experience.
website: www.mortgagecalifornia.com/eileenhoran
As a fashion wardrobe consultant, personal shopper and professional fashion stylist for the Jana Kos collection, Elena has helped her clients in every profession “Dress for Success”. She does this by teaching women & men across Northern California how to look their best and develop their own personal style in fashion wardrobes and appearance. As a personal shopper, Elena’s fashion expertise provides guidance on wardrobe building and how to update your closet with today’s styles. As a Jana Kos style partner, Elena can offer you fashionable designer clothing at sensible prices.
blog: www.fabulousfinds-elena.blogspot.com
Kerry Roth, Décor Staging - Home Renovation & DesignKerry is the creative force behind Decor Staging's success as the mid-peninsula's premier full service home staging and renovation company. Her goal is to assist homeowner's in obtaining the maximum equity possible out of their homes with renovation and staging options that yield the highest possible return of investment. She offers her clients a full range of services including staging, renovation design, redesign, color consulting, space planning and outdoor living. With her extensive furnishing, art and accessory inventory she can transform any home into a showcase property that will attract the largest possible market share of potential buyers.
website: www.decorstaging.com
Crystal-Marie Mitchell is the Owner/Creative Director of Isryldesigns. IsryDesigns is a bay area graphic design firm that believes graphic design is a unique tool that unites creatives and entrepreneurs on their journey to exciting company branding. IsrylDesigns design philosophy is simple: "We are a design firm that merges aesthetics, functionality, and sophistication while maintaining the professionalism that our clients look for in a design firm." "Let us turn your design dreams a reality!"
website: www.isryldesigns.com
Karen Drozda, ArchitectWorking with clients in the San Francisco Bay Area since 1989, Karen enjoys finding efficient and elegant solutions to design problems. Whether it involves commercial office space, manufacturing facilities, or single-family homes, each project is a complex response to context, function and design intent. Her ability to visualize solutions, and her sense of color and texture help create spaces that people enjoy. Included in each project is a concern for the efficient use of natural resources through thoughtful design and product selections.
website: www.dpluso.com
As a key member of the Trowbridge Insurance team, Virginia brings 25 years of personal experience in management, problem solving and customer service. Always keeping her clients as her primary focus, is what sets her apart from other agents. She is committed in working with you to make sure you get the lowest premiums possible but will also focus on making sure you are properly insured. “We don’t plan to fail, we fail to plan.” Bad things can and do happen to good people, and when they do, she is there to help you through them.
website: www.trowbridgeins.com
If you are interested in membership opportunities - please contact us at membership@womenonfireca.com
You can also follow us on facebook: Women On Fire
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