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First Postgreen Sale and General Updates

by Chad Ludeman on July 17, 2008 · 8 comments

in Development,financing,sales

I’ve been having a hard time finding the time to post this week as I’ve had to actually act like a developer. With ground-breaking on the 100K project approaching and a second project beginning, I’ve had a lot of development duties to tend to.

The first bit of good news is that we officially sold our first house yesterday. We signed an agreement with the clients for the M&M 100K Plus House (I really should’ve done a better job naming that) yesterday as our due diligence period on the land is ending tomorrow. It’s a bit odd to me that we sold a home in our second project that we’ve only been working on for a few weeks prior to the 100K House project, but we are very please none the less.

Secondly, we met with our loan officer to discuss the second project in more detail to make sure everything looked good for two projects and four homes. When we first started this thing we had a hard enough time finding a bank that would trust us to build one or two homes. For this reason we have been a little anxious about getting four homes to fly at the same time. The combination of us committing to purchase the 100K House and pre-selling the larger house in the second project looks to be paying off. My lovely wife and business partner also made up a binder or scrap book of all the press that we have been getting an gave it to our loan officer today. He was impressed and said it would go a long way when he was seeking final approval now and in the future.

The last bit of development news has to do with our building permits for the 100K project. On Monday, I took the last pieces of the puzzle down to our assigned inspector. She got back to us today with a couple of questions it sounds like we will be wrapping up all the loose ends tomorrow and should have our official building permits by the end of the week or early next week at the latest. Now all we have to do is settle on the land.

That’s all for now. I still have a list of research topics to post on and we’ll dive back into the details of the budget soon as well. We still have some cuts to make to reach our 100K goal…

If you enjoyed reading this post I can promise you'll love our new writing over at Postgreen Homes. Yeah, we know that's the same thing your favorite band said and their new album is nowhere near as good as their early stuff, but seriously, we are actually still getting better.

There also isn't much conversation to be had here . . . at least not with us. So come on over to the Postgreen Homes Blog and tell us what you think of our new(ish) digs and crazy ideas. We will be sure to tell you what we think of your opinion.

{ 8 comments… read them below or add one }

1 moderns-r-us July 17, 2008 at 6:46 pm

I have been thinking about the future community concept of the 100k houses.

Will both of your first two houses (100k and 120k) be LEED certified separately? (different size, number of windows, exterior wall areas, etc.)

Will the new M&M 100k+ house be LEED certified separately as well?

How many homes of each design will you be able to call LEED certified without retesting?

What changes will be allowed without retesting each and every house?

2 moderns-r-us July 17, 2008 at 6:47 pm

We are talking about LEED-H, correct?

3 tracy July 17, 2008 at 6:59 pm

So what is your timetable for finishing at least the first 2 houses, once you break ground? In general, how long do you project that each house will take to actually build? I can’t wait to see all this come to life. And you may indeed want to revisit the names of the project(s). You could do numbers like Postgreen Level 1 House (100K), Level 1.2 House (120K), Level 1.5 House (150K), etc or come up with some basic names where they build off each other. Personally, I like numbers. But that’s just me.

4 chad July 17, 2008 at 7:18 pm

modern,

Good LEED-H questions. Each house will have to be certified separately even if the design is exactly the same. We have to go through the HERS testing process also for both homes, so the minor differences in size and windows will make each of those tests independent as well.

LEED-H requires a number of inspections during and after the build, so it is not like we can keep making the same house over and over and slap a LEED rating on it. This is one of the things that sets LEED-H apart from other self-assessed green rating systems and why we have decided to use it for our projects. It adds legitimacy to each house.

As far as the second project, we haven’t officially decided if the house that was sold will be LEED certified as this will add cost to the client. It may be an upgrade option or we may take it from the construction contingency if it is available.

Tracy,

Each project should take about 3-4 months to complete once we break ground. As we build more and get more comfortable with SIPs, I hope to decrease this substantially. I can only suppress the Manufacturing Engineer inside of me for so long. Eventually he will emerge and demand faster, better and greener construction.

5 Christina July 18, 2008 at 2:58 am

Did you inquire with The Reinvestment Fund? It is locally based and provides loans for projects such as yours.

6 chad July 18, 2008 at 2:21 pm

I did meet with TRF a long time back about a different project that fell through and led to the 100K project. They were also in the category of lenders that was not very please that I had never built a home from the ground up.

I plan to revisit them on future projects, especially if there are substantial green elements that may qualify for a lower rate.

7 tracy July 18, 2008 at 2:27 pm

thanks for responding on the timetable info. just read your comment #6…that’s partly what makes this project more compelling…that you’ve never built a house from the ground up. all it takes is a willingness to try something that first time…i think that’s a key motivating factor in the successful growth of the green industry, honestly.

8 Brian July 21, 2008 at 1:44 pm

Chad- my wife and I are very interested in learning more about purchasing a ’100k home’. Are you taking on more clients at this time? I’d like to make contact…
cheers,
Brian

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