Looking for help

[cwhitford]

I’m looking to start a business building domes for residential housing in New Orleans. I’ve purchased 3 lots in NOLA (New Orleans, LA), and hope to start construction as soon as possible. The domes I’m going to build are similar to the India Dome, being 3 stories high with the 1st floor being used for parking only. I’ve done a lot of due diligence with people in the area, and the concept has been well received and seems to meet the muni-codes for the parish. But now I’m at the point where I don’t know what to do next. I don’t have any construction or business experience, but I’m working to learn as much as I can as quick as I can.

So far I have attended the MDI builders course, have purchased the property, and completed the word picture and the feasibility portion. I know that I want to put together a team of approx 8 builders to construct the dome shell, and I’m working with a GC in the area who says he’ll be able to finish out the dome (he’s questionable, though). I have a good amount of funds available, but I’m wondering if using loans would be wiser so I can use my current funds to purchase more property.

Can anyone help me figure out what I need to do next? I’m feeling lost because I’ve never done anything like this before, and any thoughts, suggestions, or help will be greatly appreciated.

[Ula Oh]

I don't know very much about business, but I do know about money. Congrats on buying property by the way. I would say that your best bet is to build the domes first, sell them, then buy more land.

This way if any thing should befall you or your endeavor you won't have a loan looming over your head. Just remember; the borrower is servant to the lender, don't borrow money unless you must.

If you happen upon a deal where you can buy the land and finish out all your domes, without a loan, by all means do so.

As for your GM, trash him. Politely. If you find any one questionable you should know in your gut he's no good. I've heard plenty of stories about shady contractors that take the money, do a little bit of work and then leave, without so much as a forwarding address. Be sure to fire him politely though, you want to stay good with people, if your gut is wrong.

I suggest you use locals, start with the people. New Orleans people are good people, they'll tell you who's good and who isn't. Look especially at finished houses in otherwise shabby neighborhoods. Go up to the door. Introduce your self by your first name, tell them what you are doing. Ask them for their time. Find out who they used, chances are they are still around.
Remember; be with wise men and become wise. Be with fools and become foolish.

As for your experience, you need to start somewhere, this is the place.
Also, if you have any free time their is tons of experience to be had all over the city, volunteer your time to the people who are living there. Or you can take a trip to the home improvement super store and spend a few hundred dollars on books, learn vicariously though the authors and gain a better understanding of materials and techniques.

Don't give up, Don't give up, DON'T GIVE UP.

Best of Luck

Ula

[Dome Dragon]

Caleb....I think you next step is to come up with a defitnite building plan with a set of blueprints to submit to the parish, "seems to meet the muni codes" is not good enough. If you are building in an historic district the dome plans probably won't fly.

Also, I would not use locals to build the shell, wait for a builder with dome experience and credentials to have an opening, many appear equipped to travel.

Think twice about financing this project, you have no idea how it will be received by the public. An unfinanced project may enable you to rent the properties without a negative cash flow, or offer prospective buyers a "rent with option" (try before you buy) which will help the domes "win people over" with all their desirable characteristics if they initially object to the design.....You do not state whether or not you are building for rental or sale....this strategy covers both.

[cwhitford]

Thanks for the thoughts and help. It is much appreciated. Let me fill in the blanks a bit more...

The area that my company is going to be constructing is not in a historical district, so that portion is covered. I’ve spoken with the Parish a few times already (director of Community Development), and they have assured me that this style of construction is acceptable where we are planning, as long as we follow the MUNI-Codes. The MUNI-Codes for the area are very specific about construction guidelines, and all those guidelines have been followed in the feasibility study. So now I see that the next step is to get the blueprints completed, stamped by an engineer and sent to the parish for final approval. Thanks for that info.

“I would not use locals…” I totally agree with this idea. I’m okay using locals to finish out the dome, but I want to bring in outside help to build the shell. My actual goal is to bring in a team of up to 8 builders from different areas of the country to build the initial 3 domes, with the future prospect of building 10 domes total in New Orleans. I would also like to hire a team from MDI to come and assist/train in the construction of the first 2-3 domes. After the 10 domes are completed the builders will return to their areas or origination and become “team leads” in their respective areas. The future of the business will be turning this into a franchise style business, where we will be purchasing property in disaster areas and turning the property over to the team leads to build the domes for resale. Then doing a profit sharing with the team lead.

The area that we are going to be building is in East NOLA, and is across the street from a FEMA trailer park. This will help to give us good visibility (with the crime rate, this might not always be a good thing). We have been working closely with a few real estate brokers in the area, and one in particular who has been amazing to deal with. He has 23 years of experience in the area, and is excited about the project. He has two sons, both of which are excited as well. One of his sons is the GC we may use, and has many years in home construction. The other son is the marketing director for a local agency, and will be working closely with us to get these as much coverage as possible.

Our construction goal is to complete the 1st dome (shell and finished out), and then begin construction of the 2nd dome in the adjacent lot. While the 2nd dome shell is being constructed, our broker will be doing open house showings of the 1st dome on weekends for 2-4 weeks. We are also looking to do some form of community involvement on the weekends (bar-b-q, car wash, etc) to help draw in people and get as many eyes on the project as possible. This will give people the opportunity to view a dome completed, as well as a dome under construction. We will also work to have as much info available concerning the domes disaster survivability, insurance savings, energy savings and long term cost savings. Then when the 2nd dome is completed we will place both domes up for sale, and begin the construction of the 3rd dome, and use the funds from the 1st and 2nd domes to purchase more property (providing they were well received).

If you see any holes or problems with this idea/project, please let me know. I welcome all the constructive thoughts and criticisms.

[Ula Oh]

Sorry, I didn't make my self understandable. When I said to use locals, I ment for the finish work Cabinetry, carpet and such.

The BBQ/ Car wash and such sound like great ideas. You might want to call local and mabie even national new services to see if they would like to cover the events, just an idea.

Good Luck!!!

Ula

[cwhitford]

Sorry Ula, that quote was about Dragon's comment. I should have posted the whole quote:

"Also, I would not use locals to build the shell,".

Sorry for the confusion on that one. I understand what you mean about using locals for the GC. I think that's a great idea. I've heard some horror stories about GCs there, but I've also heard some great things too. There are people there who are doing their best to see the New Orleans brought back to it's feet. Like you said, they are good peoplel

[Alyfe]

Caleb,

I have some other ideas to add to the already good advise you've gotten from the contributors here.

I suspect you've already done this, but if not, start by getting a book or two on the topic of "Real Estate Development". Barnes & Noble, Borders, and Amazon all have good selections. Remember, they may be domes, but the business process of getting them built isn't really all that different from other kinds of structures.

Second, go out and find someone in the area whose been doing it (Real Estate Development), for the last thirty years, if you can. Someone at or near retirement could make an ideal candidate. You want someone who likes the idea of what you're planning and is willing to help you through the process but who is not interested in doing it for you (or for themself). Someone who knows the players, and the (local) process. They may offer to help for the sheer joy of being involved, or you may have to work out some way to compensate them. But if so, pay them gladly. Given what you said about your (lack of) experience, their help can be invaluable.

If you are at a loss of who to ask, try getting an informal referral (or a list of possibilities) from one of the local law firms that specializes in real estate development work.

All the Best,
Richard

[cwhitford]

Richard,

Thank you for the excellent pointers. I will have to add “Real Estate Development” to the list of books I’m tying to make it through. I especially like your idea of finding someone who’s done it, basically find a mentor.

Great ideas, thanks!