How to Avoid Construction Fatigue and Manage Construction Loan Cash Flow

Show Notes:

You will learn how to evaluate your personal temperament, stress tolerance, and decision-making stamina to determine if acting as an owner-builder is right for you. You will discover how a well-coordinated set of architectural and engineering plans spreads major choices upfront, helping you avoid decision fatigue and costly change orders during construction. Additionally, you will learn how to navigate bank draw schedules, manage construction loan cash flow, and ensure your lender’s percentage-of-completion requirements align with actual job-site expenses. Finally, you will understand essential risk management strategies—including builder’s risk insurance, managing subcontractor relationships, establishing strong communication with local building departments, and maintaining momentum through the final 10% punch-list phase of your build.

Key Q&A Highlights from Episode 91

Q: How do I know if I have the right knowledge and temperament to be an owner-builder?

A: Being a successful owner-builder requires an honest self-assessment of your organizational skills, stress tolerance, and willingness to manage subcontractors. Rather than physically performing specialized construction trades yourself, managing the build as a project coordinator with clear plans and realistic schedules allows you to control the timeline without overwhelming your daily life.

Q: How do you prevent decision fatigue when building a custom home?

A: Decision fatigue is minimized by making the vast majority of choices—such as structural designs, window specifications, siding, and mechanical layouts—during the initial architectural design phase. Having a complete, well-engineered set of blueprints upfront spreads your decision-making over time, leaving you only to execute a well-thought-out plan during active construction.

Q: How do bank draw schedules affect custom home construction cash flow?

A: Bank draw schedules dictate when funds are released during construction, which can impact your cash flow if a lender’s arbitrary “percentage of completion” metrics do not align with actual job-site costs. You must review bank draw terms early to ensure funds cover upfront deposits for long-lead items like custom windows or cabinetry before work begins.

Q: How do you get subcontractors to take an owner-builder project seriously?

A: Subcontractors prioritize owner-builders who present complete, permit-ready blueprints, a clear building site, verified financing, and a realistic construction timeline. Demonstrating that you are organized and prepared proves there is a clear path to getting the job done and getting paid, leading to faster bids and reliable scheduling.

Q: Why does the final 10 percent of a home build feel like it takes the longest?

A: The final 10 percent of construction feels slow because major visual milestones like excavation and framing are replaced by subtle detail work like trim, painting, and fixture installation. High anticipation near the finish line distorts perception, making fine-detail punch-list items feel longer even though significant progress is occurring.

Transcript:

Steve Tuma: You just have to methodically put it into a process that’s realistic so that you can achieve the milestones and, and move forward.

Host: Hey everyone, and welcome to Episode 91 of the Panelized Prefab Kit Home Building Show. With me today, as he has been for the past 91 straight episodes of the podcast, is the President and founder of Landmark Home and Land Company, a company which has been helping people build their new homes where they want, exactly as they want, nationwide and around the globe since 1993. Mr. Steve Tuma. Steve, how you doing, buddy?

Steve Tuma: I’m doing great. You know, it’s another time to do another podcast, and I think we’ve got a variety of different topics that we’ve never really even gone over before. So this should be a, should be a good one. 91 of them. A lot of cool information, and now we’ve got even more information.

Host: We have, um, we have gone over a few of these briefly in the past, but I, I still think that the, this, these are, uh, these are concerns and questions that I don’t think have we’ve brought up nearly enough. Questions that no one ever thinks to ask when it comes to home owner builders show. So if you’re good with that, why don’t we just get started?

Steve Tuma: Sounds good. Let’s do it.

Host: Fantastic. Okay, let’s start with a fairly obvious let, yet rarely addressed question, one that should be obvious, of course, but for some reason, even though it’s of utmost importance in my opinion, and that is, uh, do I actually have the temperament for this? In other words, should people thinking of building their own, uh, their own home do, do an honest self-assessment of the time involved, the stress tolerance that they’ll need, the decision-making stamina, all that stuff? Should, should that, um, self-assessment happen before anyone even orders a package or looks at plans? And would doing, would doing all that, and answering those questions within one’s own mind, um, predict a, a project outcome as, as, you know, like plans or say the budget even? Would that predict, predict, uh, any sort of success if you dig deep and look inward to yourself before starting a project?

Steve Tuma: Well, it’s interesting, um, our, our customers are very successful in building their home, and I think a lot of them think about it. It’s not something where they just wake up some morning and say, “Hey, I want to be an owner-builder.” It’s been in their mind for a while. They’ve researched it. Maybe it’s been in their mind their whole adult life, that it’s something that they want to do. So a, lot of, a lot of people, uh, they’ll come to us and they’re, they’re pretty much ready to go, but sometimes I sense something in people where they’re trying to sort things out or figure out a path on how to make something like this work. And they’ll say, “Hey, what work do I have to do? What work don’t, don’t I have to do?” And it really gets varied by someone’s skill.

So if someone wants to be very involved, and we’ve had families that do that, you know, they’ve got friends and relatives in all the trades, and they could literally do everything, you know, a direct relationships they have. And other people are more managers of the process. Uh, so then they hire other people to do it. So my, my opinion on something like that is people should just be honest with themselves and understand what they choose to do. We never suggest that someone does, you know, a trade that they’re not familiar with. It just, it, you know, the trades, there’s a skill to it, there’s experience that’s involved, and a certain aptitude to do it.

So my suggestion to control the stress and understand what’s going on with home building is, is to be honest with yourself and say, “Hey, I’m good at managing, so let’s leave it at that. I’ll get a bunch of subcontractors and coordinate it.” Or other people say, “Hey, I’m good at managing, but I can do drywall, painting, and trim.” So they, they do the part that’s there. Um, so I would th, I, I believe, and this is kind of just a life thing, if, if you’re honest with yourself and schedule things properly and have a, a good schedule on how you’re going to build, have the finances in line, it greatly limits the, uh, the, the, the stress.

Now, obviously, you’re making a lot of decisions, you’re building a home, so things can be stressful at times, but, you know, to a certain degree, that’s life. You know, you get up in the morning, you go out and your car’s a flat tire, it’s kind of a little bit of a curveball. So what, what I always tell people is just understand the process. And that’s how working with us to, to really work through your project, understand your project, get a real set of plans from us so that you can then go through and have a strong understanding of your project, that really helps control the stress, because people have a thought-out plan, they know what they’re going to build, they work on their budget, they work on the schedule, and it comes together better.

The people that kind of haphazardly do things, um, yeah, it gets a little more stressful. Luckily, we don’t have a lot of people like that, because the process we work with the customers is thinking the, the, the project through, thinking the plans through, thinking the scheduling through. So a lot of it, just the nature of our process at Landmark, uh, with our panelized homes, is sets people up for it. So I’m sure there’s times where things get a little funky, and people are always welcome to call us and say, “Hey, Steve, I just got this call,” or, “Hey, we excavated and it rained,” or, “Hey, you know, something happened in the schedule, the HVAC guy can’t show up when he, when he scheduled. Um, you know, how does this affect the rest of my, the, you know, the domino effect of the follow-up people?”

So we’re always available to help, but yes, people, you know, to answer the question, yes, people should have an understanding of what they do, what they’re planning on doing, the, the what’s necessary to build a house. It’s not for everyone, but the ones that do it, it’s, it’s very rewarding, and I, I think they’re, they’re happy to do it. Um, but yes, you have to understand what you’re doing. It’s a big project. It’s kind of a long-haul project, you know, it takes a little while to design it, then there’s actual building phases, and some people build a house in 3 to 6 months, other people take 6 to 9 months, other people intentionally choose to spread it over a little bit of time just because they want to avoid banks, and they want to do it out of pocket, or, you know, as, as money comes in.

So to me, the management of the stress is understanding and acknowledging what you’re doing, developing a solid and realistic plan, and then executing it, and then dealing with it, you know, step by step. Um, you know, and if, if, if there are one of those days where, hey, you know, things just aren’t coming into play, you know, like I joke with people, how do you eat an elephant? It’s, it’s one bite at a time. It’s not one big gulp. So prioritize the situations, move forward and, and go with it, and what I’ve found is the customers that understand it, you know, take the time to think it through, and then work with good subcontractors and suppliers, uh, there, there are ups and downs in the process, but they enjoy it, and the end result is, is a beautiful home.

So it’s just like anything else, if, if you said, “Hey, I’m, I’m going to drive from New York to Los Angeles,” and you just randomly pick a road, yeah, it’s going to be a little more stressful than if you said, “Hey, I’m going to take this highway to that highway to this highway,” and go through. So, uh, it, it can be done, and, and we’re here to help people. If, if someone has questions of how to do things, we’re, we’re always available to talk to the people to, to review items of their project so that they have something that makes a lot of sense. So, uh, no. But it, it’s cool, it’s rewarding.

Host: Yeah, I mean, if you’re not careful with, you know, your own, uh, ability to, to handle stress and to handle timelines and everything, it can take a relationship on you, but also on your family, you know? It’s just the way it is.

Steve Tuma: Right, but, uh, a lot of people when they manage it, they, they understand it. Getting a home, you know, it’s not, it’s not like they woke up one day and said, “Hey, let’s just do it.” They’ve been thinking about it. They’ve been planning through it. They’ve been getting the financing, the schedules. They’re, they’re working around it, so our customer base, we’ve got a, a great group of customers, and they understand the process, and they, they work with it. It’s like, hey, they, they have their job, their regular life, their family, their hobbies, whatever, and they, they navigate through it. So yes, for a certain amount of time, building a house is going to be a, a big part of their, their life. But then when you consider when it’s done, you know, the enjoyment out of it for as long as they live at the home is, is exceptional.

So I, I think it’s just like anything in life, you know, hey, you get a, a new puppy. That sounds exciting, but it’s a puppy. You know, you got to train it, you got to, you know, do all the things. So, um, you know, you have to understand what you’re, what you’re dealing with, and it’s a kind of the same situation with a home, and if you have a plan that’s sensible, you’re honest with yourself, and you methodically work through the processes, I think it’s a situation where the, the family can enjoy it. We just delivered a house, um, a day ago, and, and, um, the grandfather’s putting an ADU on there so when the family comes over, it’s there. So he’s out there with his grandkids, you know, seeing the delivery, getting the contractors out there, getting it going. So you, you can say, “Hey, it’s a lot of work to do it,” but what’s the value of your kids seeing this? You know, whether your kid’s 5, just, you know, the enjoyment of big trucks and sounds, or, or it’s someone 12, 14, 20, you know, seeing the management of a, of a process like this. It’s kind of a cool life event, but yes, it has to be managed properly and understood what you’re doing.

Host: Yeah. But even when you get, uh, when you’re able to handle, we keep talking about stress, and, you know, that can be a thing, but I mean, it’s, you know, like you just said, if somebody, somebody’s been thinking about building a house, they’ve, they’ve already put a lot of the, the stress management in, into slotted it into the project. But there’s, you know, lots of decisions to be made in the whole, uh, that, um, you know, catch phrase “decision fatigue” can really happen. And, and what do you recommend to people, how they deal with that?

Steve Tuma: Well, what I look at decision fatigue, it’s, you know, people can make decisions, they’re making decisions every day, what coffee to have, you know, what side of the bed they’re waking up on, are they going to exercise, are they going to eat popcorn, what movie are they going to watch. So it’s more of a situation I think of the stressors, maybe a few things hitting at one time, where it’s like, “Oh, which way do I go? What do I have to do with this?” Or maybe not understanding the process. So somehow it makes a typical decision a, a little bit more, uh, a little harder to go through. So what we tell people, just like I mentioned about eating an elephant, you don’t do it in one gulp, you do it in, in bites, you, you prioritize the situation.

So if there are situations where suddenly you, you see, “Hey, this happened, this happened, and something else happened,” you got to prioritize how to deal with that. And I’m sure that people do that every single day in their own life. This is just the application of that same thought process for a house instead of your job or your family life or your hobby or your second job, or whatever it might be. So, um, you know, and sometimes I tell people, hey, if it’s one of those days, just like in your regular life, if it’s just one of those days, maybe take the afternoon off, get a good night’s sleep, hit it fresh and rock and roll in the morning, and, and it goes through.

So what, what’s interesting about this is a lot of people have asked me about this, but if, if people were to hear the, the conversations, the customers are actually energized because they’re choosing to do this and there’s a great benefit to them building their house. You know, it’s, it’s a personal choice, the financial gains out of it, the quality of it, the getting the house that they want. So this isn’t, I don’t want to put like a negative spin to this. It’s, it’s a lot of, a lot of stuff going on because there’s a very positive end to this. You get a new home, you know, with equity in there.

Host: That’s a bit of a perk.

Steve Tuma: Yeah, yeah, so, so in a sense, it, you know, I, I kind of look at it as a kid in a candy store thing. “Hey, do I get the chocolate bar, the caramel bar, the peanut butter bar?” You know, it’s kind of like, so at a certain point, you’ve got to make decisions and, and properly, uh, move forward. But what I, what I think happens is, uh, during our planning phases, uh, there’s a lot of decisions that are made. “Hey, do you want a recess shower? Do you want a tub-shower combo? Do you want a tub with a separate shower?” You know, what, what kind of siding, what kind of roofing, what kind of heating system, what kind of flooring?

So a lot of those during the design phase, those decisions are being made. So once you have a clear set of plans and you’re, you’re accurate with yourself, you, you spread the decisions over time, you know, mainly in the design phase, and then when you’re actually building, then you’re just executing your well-thought-out process. So that’s one of the benefits of our, our process, is working with customers to understand their project. This isn’t something like you would just go to lumberyard and say, “Hey, let’s go buy a bunch of wood and nail it together and hope it turns into a house.” We’re spending a lot of time with people, as I’m sure they’ve heard in our prior podcast, going through the process of designing the home, make sure it fits on the land, make sure structurally it’s sound, energy codes are right, it’s the design the customer wants, it’s, it’s a sensible design.

So through that process, I think people get pretty energized to say, “Hey, I’ve, I’ve done, I got this.” You know, I’m, let, let’s, let’s get building. So it’s, uh, it, it’s a lot going on, and if it is a customer’s first time, well, we’re always available, but it’s, it’s kind of interesting, the people call and say, “Hey, Steve, this is great.” Compliment to us is they’re like, “Hey, we really appreciate it. We thought we were just buying a panelized home, but it’s really been the relationship and the knowledge and the support we supply that has really made life a lot easier for them.” So at Landmark, we supply a lot more than just the panelized home package, it’s customer support, customer service, answering questions, providing guidance, and that is, is the, uh, the very important part of what we do, and I think why customers really enjoy working with us. It’s, it’s a lot more than just buying material.

Host: You know, and people get in the middle of a project, and, and money can become tight, or it can become, you know, just problematic. Cash flow timing, that’s, that’s something that I think people run into a lot. What, what would be your advice on how to, to manage your cash flow, um, and how it comes into the project, because it’s, it’s definitely not just financing we’re talking about.

Steve Tuma: Yeah, well, the, the interesting thing about that is, um, when customers work with us for the plans, they have a good set of plans, they’ve thought about these issues, so they’re able to get accurate budget numbers to create an accurate budget and move forward. Now, sometimes things happen, but the point that you’re bringing up here is cash flow, which is basically the timing of the money, it’s not just the availability of the money. Right.

So where this really comes into play, and people don’t realize, is when they work with banks. Uh, banks, each of them might be a little different, in general, they’re the same, they give a construction loan, which is when they put money out to you to build the house. The end mortgage is when you pay that back over, over whatever time you’ve worked with them. So where sometimes I tell people when they’re working with a bank, it’s not just, “Hey,” you know, “get a draw when they choose to give it to you,” have an understanding of what those draws are to cover.

And the main reason being, is some banks do a quote “percentage of completion,” where somehow the banks think that they can go through and say, “Hey, the foundation’s 20%, the framing’s 25%,” whatever it is, they have these arbitrary percentages which may or may not line up with your project. Right. So what I tell people is you have to have an understanding if they are going to do a percentage of completion, actually look at that to see what they expect to cover within a percentage of completion. So for easy money, easy calculations, if you had $100,000 project, and they say 20, 20% is for excavation and foundation, in theory, your excavation foundation should be $20,000. Now, hey, if it’s only 14, maybe you’re a little money ahead, but if it’s 23, you’re 3,000 behind.

So that’s, that’s what I tell people what it is, because a lot of banks are very flexible, some of them just give people the money as they need it, they disperse it, others there’s, um, a percentage of completion, others it’s by line item.

So with a line item, they’re able to go through and say, “Hey, we did these five processes according to our budget, these five processes are a certain amount of money, that money gets dispersed and it goes forward.” So that’s one of those things that people don’t think about, because a lot of banks will say, “Oh, we’ll get you money when you need it,” and I’m like, “Well, that’s great. What does that mean?” Right. What does that mean? Is it the, the money that’s necessary? So getting you money, you say, “Hey, I need money to pay for the foundation,” you want to make sure it’s the right amount of money.

So, so those, those are things that if someone’s working with a bank, I always have a little heart-to-heart talk with them so that they can understand. It’s not just the bank giving money, it’s making sure that the cash flow is right to do it. And, and one of the key points is, um, like if you go get cabinets, they could take 6 to 8 weeks, just as windows, you know, custom windows maybe, and those people will want a deposit to order. Will the bank put, you know, give you the money to put that deposit in? Some will, most do, but the point is you should understand it so you can work through the process to, to get it taken care of. And those are, you know, kind of specific things, you know, bank by bank, customer by customer, that I could review with a customer just so that they have an understanding of, uh, you know, how the, how the, how to structure the financing so it makes sense and it’s, it’s helping them through the process. It, it sounds complicated, it, it really isn’t, it might just be a little perspective, you know, shift to, to understand the process.

Host: Well, I think you brought something up that we, we had briefly hit upon on a podcast way, way back, but I think it holds true now and especially in this conversation that the, vagueness, vagaries can be a real red flag and make sure you’re getting solid information no matter who you’re working with seems like a good rule of thumb.

Steve Tuma: Well, that, that’s it. I mean, and if, if you’re working with a bank or a subcontractor and you can’t have the discussion of, “Hey, how do you get paid? How much is this? What are the specifications?” You know, the, it’s going to just lead to an issue down the road, so these are, you know, conversations that you have to have. It’s not hard and it’s not unreasonable to go through and do it, you just have to understand the process and, and to be able to go through. So we, we can help, uh, customers, you know, kind of get into position, so when they’re talking to a bank or subcontractors, they, they have a strong sense of the, the position that they’re in and why they need to understand it.

But again, a lot of our customers, you know, they, they’ve already talked to banks, they’ve kind of worked it through, but if they need a little brush up or a little change, you know, perspective or just ideas to let it settle in their mind, we’re more than happy to, to help a customer understand, you know, the, the ins and outs of financing.

Host: So I’m going to bump the subject here a little bit and talk about, um, well, overall people that you’re working with who, who come on to, uh, your project, any subcontractor, let’s say. What are your recommendations that people do, how you handle a subcontractor who walks off a project at some point for any reason, could be a million things, or just doesn’t show up, and that happens a lot? Give some advice to people on how best to deal with that.

Steve Tuma: The best way to deal that, with that is upfront, okay? Um, just, just like everyone’s got friends that they can rely on and then they got friends and family that they can’t rely on, and then there’s people that, you know, are there, it’s like, like clockwork they show up. So I tell people, “Hey, we need to get your plans going and detailed to the right point so that you can approach contractors.”

So you don’t want to cry wolf with people, just like people don’t like crying wolf on them, so you want to have a good set of plans to say, “Hey, here are the plans, here’s the land, we’re financed, and here’s my schedule.” The contractor will take you more seriously because they know there’s a chance to make money. Subcontractors and contractors don’t make money talking to you, they don’t take, make money, you know, changing bids 30 times, and there is a balance to this. There’s, getting good labor is hard, you want to work with good people, but those good people also want to work with a good customer, and part of being a good customer is being prepared and knowledgeable and understanding of what needs to be done. So with our plan sets, someone’s able to say, “Hey, these are plans, they’re pretty much finalized, they’re in, you know, this, we’re going to be building on this piece of land at this location, and we’re starting at, at whatever date.” The subcontractor will understand it, so by going through that process, there’s a relationship built up where, um, subcontractor respects the customer, customer respects the subcontractor, so chances of situations like that happening are, are minimized.

Um, you know, things happen in people’s lives, kids get sick, whatever, you know, rain happens and pushes a subcontractor’s schedule back or something, but, you know, what the, the, working with a good subcontractor, um, they want to work with a good customer. Even though they’re busy, they still want to be selective on getting the good customer and making sure that it’s a reasonable deal for them. So again, like working with the bank and pre-planning, working with your own project and pre-planning, it’s making sure you’re prepared when you go to a subcontractor, that you have all your ducks in a row. Um, subcontractors are busy, some call back right away, some don’t call back right away, but it’s the nature of, of, of the business, but they’re obviously working and busy, and they’re working with people that respect their time, respect their understanding of the project, and are prepared to move forward.

So, uh, I found that if customers like henpeck a contractor, you know, call them Saturday morning at 6:00 or Friday, you know, or just, “Hey, what about this? What color nail are you using?” You know, just stuff that’s ridiculous, it’s like, “Hey, you’re hiring a pro, let him do his job.” Yeah. Um, and then the subcontractor also wants to know that you’re serious about building, that, like I mentioned, they, they don’t make money talking to you. They make money, you know, getting a bid together and scheduling the project, and then executing the project. So, um, I’m sure it happens here and there, I hear about it every once in a while where stuff happens, but it, again, with a well-thought-out process, a schedule, and an understanding of it, the sub, a good subcontractor wants to work with you because he or she knows that they can get the job done, get paid, and move on.

Yeah. It’s being organized. I think that’s what we’re, you know, on all these things, the subcontractors, banks, stress, it’s be organized, understand what you’re doing, and move forward.

Host: Yeah, common sense, a lot of times this is all just common sense, but, you know, people get into a big project, especially if they’ve never done it before, I, I would imagine all this stuff can…

Steve Tuma: We’re reframing it. We’re reframing how they deal with their life, their kids, their grandkids, their job, we’re just putting it in the sense of a house. You know, it’s the same thing.

Host: Yeah, and let’s face it, that’s why we have this podcast, because you’re able to put things in perspective and, uh, again, it can, things like this can be daunting, but luckily if they’re dealing with Landmark, they’ve got, uh, they’ve got some solid support. What do you, um, what are your opinions, and you’ve said this before, but, uh, building relationships with building departments and building inspectors and how important is that again, if you don’t mind going through that again? I think it’s a, a question to really re-address because those relationships are important.

Steve Tuma: Well, you want to have a good relationship with everyone in the project, it just makes it easier. If, if someone’s being abrasive or pushy, it just becomes uncomfortable. You know, look at, “Hey, treat people the way you want to be treated.” Most building departments are just people that want to get paid and do their job, you know, maybe they’re a little disorganized, maybe some are very organized, maybe some are super nitpicky, but the reality is is they’re there to do the job for what they find to be important. So again, it’s, it’s a well-thought-out project. If you have a good set of plans, you submit a good set of plans, the details are taken care of, you’ll move forward.

Um, the building department’s there, sometimes they’ll kick back a little if they ask a customer for something and the customer doesn’t do it, you know, at a certain point, it’s, you know, ev, everyone’s, it’s the two-way street. So again, it’s be organized, and that’s part of our process is when a customer starts working with us, we, actually before they start working with us, we look at their building department details, find out what they need, get them a list of questions, and say, “Hey, we need this, you’re going to need that. Let’s get it all put together so that, so that you can approach it.”

And I think what, you know, once customers see this, again, just like the financing, the sub,, you know, the subcontractors, family situations, once they understand the process, they, they understand, they understand it’s on a winning team and a procedure that’s going to make sense. Um, now, you can’t expect a customer that’s never built before, maybe only built two or three or four or five homes to understand the newest codes or the newest nuances that a building department may just come up with, um, but that’s why we’re here, you know, to help it through, so someone doesn’t have to completely understand the building department, they just have to work with us and, and the building department, get the plans submitted, when they get a permit they can move forward, or if there’s a checklist of items saying, “Hey, we need clarification on a few items,” get us the list, we’ll, we’ll work through it.

But most building departments are, yeah, they’re just people doing their job, you know. I would say 80-85% of them are just, you know, just building departments doing their thing, and then, you know, 5 or 10% of them get a little, a little more specific, and those are generally, you know, in certain communities, you know, like you get by the oceans, you get in some of the very high-end, um, communities, or places where there’s extreme hurricane situations or, uh, you know, earthquake or super high snow loads where, where it just takes a little bit more double-checking.

So I, I would say in my 32 years, I could probably count on one hand the number of building departments that we’ve dealt with that are just purely unreasonable, but you know what’s cool about it? We’ve gotten through every single one. You just work through it, we figure out what they want and, and, uh, you know, get through it, and but general, generally, you know, when, when a building department asks for something strange, it’s, you know, usually they have some reason for it, whether it’s logical, you know, we could debate that, but, um, you know, we, we get the information, move on, and, and go from there, and we’ve been doing this for over three decades, so the chances of your building department coming up with something we’ve never heard about is probably extremely limiting, limited, but our ability, even if they do, to take care of it, we, we’ve got all the people necessary to get it taken care of, and most building departments will communicate to some degree to say, “Hey,, you know, what do, what are you asking here? You asked a question, it’s not clear, can we clarify this?”

Um, and, but I, we’ve actually gotten compliments from building departments. There’s a couple around the country that said they’re using our plans as examples because they were so well done. So when someone knows that it’s an organized project, that’s it, and I know in other, another, uh, another podcast I’ve, I’ve kind of talked about this a lot, but if you walk in a building department with bad plans, they, they’re kind of like, “What are you doing?” You know, so they’re going to give a little kickback, which is the reason you want to work with a company like us where you have a clear and accurate set of plans of what’s actually going to be built. It’ll avoid problems. A lot of people for some reason think, “Oh, I’ll go, you know, some guy down the road will do plans for $500, he’s the best guy on the bowling team,” and, you know, they go through, well, if the details aren’t on the plans, you’re just going to have problems going through building, going, going through the inspection processes because there’s too many unknowns. So in our case, we’ve got a very accurate and complete set of plans, so it just makes it easier. The building department wants to process plans and give permits. They don’t want to babysit people along the way that aren’t paying attention, and that’s, that’s why customers work with us to make it a lot easier on them.

Host: Yeah, I think that, uh, I think one thing about Landmark is, you know, in any, any kind of big project or anything that you take on where, you know, there’s a lot of, a lot at stake, um, mostly money and time, but I, I think it’s, uh, the customers that keep coming back to you guys or leave you guys such great reviews, which is, you know, everybody virtually, but, uh, I think it has to do with the fact that you don’t leave anybody out there just to the wolves. You guys are, once you start a project, Landmark is there the whole, it’s like a little kid all of a sudden they look up in a department store and they were holding their mom’s hand and then the mom’s gone, that’s a freaky situation. So, you know, Landmark has just, I think you guys have built this reputation to, to, you know, where people know that you don’t, you’re not, uh, bailing on them halfway through. You’re there every step of the way and it’s like they do have a, uh, they do have a safety net and that’s their relationship with Landmark.

Steve Tuma: Right, and that, that’s the point as to why we work with owner-builders. We understand the, our customer’s position, we understand they may or may not have a lot of experience in building, but we’ve, we’ve likely seen any problem they’re going to run into, so we can forecast it or say, “Hey, there’s a possibility of this, there’s a possibility of this, let’s, let’s manage through it to, uh, to get it taken care of.” So, you know, the, the thing about it is there, there’s, you know, life is just like that. You can go out one day and you have a flat tire, and then you’re low on gas, and then your air conditioner’s not working in your car, I mean, you get, you, you manage it and you get through it. So, so that, that’s what we’re able to help.

I don’t want to make it like a big downer, like, “Hey, this is, you know, the end of the world.” It’s, it’s just, it’s just a, a lot of, uh, thinking and processing and, and working through it, but, um, you know, I, I had a customer, uh, Cheryl, she just talked, she goes, “Steve, it’s like you’re my friend. I just call up and I ask you stuff, and we give answers, and we laugh a little bit, and then we move on, and then I call you back two hours later with another funny question.” And I’m like, “That’s what we’re here for.” And in that process, um, because the way we’re set up, we hear every single customer’s question and that, that, that puts us in position to be able to help them better.

So, it’s, uh, it’s pretty cool. We listen to our customers, we value our customers, we have a lot of fun working with our customers, so the support things, um, just, just, just part of it. It’s, it’s actually really enjoyable to help people understand, and, and the customers are really proud when they’re like, “Wow, I learned this, I got this, look at what we did.” Then I get pictures of them and it’s, it’s kind of cool, you know, the, the family dog going in the house for the first time, you know, or kids outside in front digging a hole or whatever it may be. So it, it’s kind of cool. Very cool, actually.

Host: Here’s something that we haven’t talked about in a while, if we’ve talked about it at all, I can’t remember, probably, but let’s go over it again. There’s, uh, builder’s risk insurance and owner-builder liability when acting as, you know, when you’re acting as your own general contractor. Can you go over that a little bit, exactly what that all entails with the builder’s risk insurance?

Steve Tuma: Yes, I’m not an insurance genius, but you should go to your insurance company and tell them you’re building a home, because while building a home, there’s different risks as than if you, if it was raw land or if it was an existing home. And what it basically covers, you know, situations that, that may happen on a building site, and it, it gives protection in case, um, you know, someone got hurt or something strange happened there. So you, you definitely want to be covered, and it’s, it’s just a different version of the property insurance that, that someone would have. You know, if, if you are a, a renter or homeowner, you probably have some type of liability insurance, so if someone, you know, walks up your driveway and a tree falls on them or something, you know, you’re, you’re covered. So that is something that people should get, and they should talk to their insurance agent to make sure that it’s, uh, they have the right coverage for what they’re doing on their property.

Host: Um, let’s, we have touched on this, I remember, um, at least once, but let’s talk about where you live as, as, you know, in comparison to where you’re actually building. And, uh, does that affect cost, or, or during the build, or how, how important is where you live to in comp, in comparison to where you’re building?

Steve Tuma: Well, what’s interesting about it is, uh, you know, some people live in different states while they’re building the home, and they, they visit every once in a while, they get a general contractor, but a lot of our owner-builder customers will, um, they’ll, they’ll have an existing home that they haven’t sold, they got a bridge loan on it, so when the new house is done they can just move into the new house. Other people rent an apartment, other people put a motorhome on the property, and live in the motorhome while, while they’re building it to, to save that extra money and living expenses during, during the process. So depending on someone’s personal lifestyle and how they choose to live, they, they could, you know, maybe rent another home, keep their existing home, live in a motorhome, move in with in-laws. I think all of it’s probably a little bit different for people, you know, it might not be optimal, but again, it’s one of those things. If you can save the money and, and control your living expenses during the build, that, it’s just more equity and lower cost that, that you’ve gotten in the home.

So, ev, every customer has a, a different, uh, scenario. We’ve had some people, if it’s a retirement home, they have an existing home, maybe they pulled a HELOC out of their main home to pay for the, uh, the, the new home, others they get bridge loans, others, you know, rent a place, move in with in-laws, live in a motorhome, get, get short-term housing, you know, to, to do it. So every family’s a little different, it all depends on how far it is from where they want to live. We’ve also had people that say, “Hey, I got to start building in a certain time to make sure my kids are registered in the school district.” So we’re able to work with them on, on the schedule. So that’s something that, you know, there isn’t really the tried and true direct answer for everyone, it’s just, you know, different options, and, uh, customers sort it out. They figure out what’s good for them. They, they move in with different family members, they rent a place, they stay at their place, they live in a motorhome, whatever it is. But, uh, amazingly, a lot of customers already have that in gear, they don’t really ask me about it. You know, as I talk to them, I find out what they’re doing, you know, just in passing conversation, but, uh, that, that’s basically what they do.

Host: Well, it’s like you said, there’s probably been a lot of preparation on the owner-builder’s part before they even start this. So, yeah, they’ve probably thought about 90% of this. Um, let’s go back to our, sort of our original, uh, thought during this podcast, and that was the, you know, just dealing with the, uh, overall issues, problems, stresses of, of being a homeowner builder. Um, let’s talk about the last 10% of the build. Uh, projects, they race to get to that dried-in and framed, uh, portion of the build, then call, they crawl through the, uh, you know, like a, their own personal punch list, you know? The finish drag, the trim, the touch-ups, the one missing part of the build is where, you know, momentum and morale can get, really be very low, and, and nobody asks how to power through that, and I’d like to know your opinion on how to get past that last, that final 10%.

Steve Tuma: Well, that final 10% is kind of an interesting thing. As I watch customers over three decades and talk to them and see how their projects come along, I think a lot of that last 10% is the anticipation, much like a little kid going, “Hey, my birthday’s next week.” That’s the longest week he’s, he or she’s ever lived through. Right. So when you start a project, there’s kind of big movements where you see stuff, excavating the land, installing the foundation, those are big things. It’s like every day there’s big movements, then the house package gets delivered, and the home gets framed, so those are all, you know, a lot of big things happening. Well, when you get to that final stage, you know, the 10%, 15% to finish it up, there’s a lot of stuff happening, but it’s not big movements. You don’t necessarily see light switches being put in, you don’t see door knobs being put in, I mean, you see it, but it’s not a big move. Right.

So there’s always this anticipation of, “Oh, when’s it going to be done? When’s it going to be done?” And I think it’s one of those things that because of the mental anticipation saying, “Hey, we’re two weeks away,” when in reality it might be four just because of all the little things that have to go into place. You know, the final stages, installing trim, putting carpeting down, you know, putting door knobs on, just little stuff, it just, it just doesn’t seem, you know, visually like as much is going on, but if you actually looked at the, the amount of stuff happening, there’s a lot going on, so, um, I think that’s something that once people realize that, and I always talk to them if they bring it up, it’s like, “Steve, it just, doesn’t seem to end.” It’s like, well, it does seem to end, you just don’t realize the amount of stuff that you’re getting done. Right. And then one day they call up and set, “Steve, we’re moving in.”

And, you know, everyone’s excited, you know, you start seeing pictures of the first time the kids run in the house, the dogs running around the yard, whatever it may be, and it’s a, a whole, you know, level of excitement of moving in, you know, the first holidays, the first birthdays, people text me pictures, and it’s kind of an amazing thing, so, yeah, there, there is a lot of, uh, excitement and emotion in building a home, and it’s, you think about it, a family’s kind of starting a brand new chapter, and it gets to be very exciting for them. And we’re always here to help them through, so, yeah, it’s, it’s kind of cool, actually.

Reminds me of the, when you see your, a kid every day, you’re raising a kid and you see him and you don’t really notice the growth, but the uncle comes around and goes, “Man, you’ve grown so much.” Really? It’s just hard to see sometimes from the outside. What about the other thing, uh, the, the part of being your own contractor, owner-builder, knowing what not to do yourself, what things that you should probably stay away from, which I think would be, uh, is probably good advice to, to kind of assess what your strengths are and not try to do things that, uh, that really aren’t your forte?

Steve Tuma: Right, well, the situation with that is kind of like being honest with the budget, being honest with the schedule, being honest with the reality of coordinating your project, it’s the same thing on what you do. You know, if people ask me saying, “Steve, you know, is it hard to do drywall, or is it hard,” I’m like, well, it, I don’t know if that it’s hard once you know how to do it, but there’s definitely a skill in a lot of these projects. So people really have to focus to say, “Hey, yes, I can do this, no, I can’t,” or, “Hey, my friend can help me, and, you know, I could be the labor.” So people have to be real honest with them on, on what they’re going to do, because you don’t want to go through and then plan something and find out you can’t do it. And that also ties into being honest about the budgeting, the scheduling, to make sure that everything’s there.

Sometimes when people sharpen their pencil too much to make something work, I kind of tell them, “Hey, hold back from that.” You know, you, you might be bending reality, we want to make sure that you’re putting a process together to build a home that makes sense, because you don’t want to convince yourself of something now and halfway through the build realize, “Hey, I’m not a pro drywaller, I can’t just go to YouTube and learn how to drywall.” You know, there’s, there’s an, there’s an art, and, uh, and a process and a skill to a lot of it. But amazingly within that, it’s, it’s pretty rare that someone convinces themselves to do something that they don’t,, you know, want to, want to do. I mean, not too many people are going to convince themselves to go walk in a 12/12 roof pitch. It’s steep, you got to have a, so I think when, when people come to us and through our processes of designing the home, thinking about the different stages, the different changes, the different processes of designing and getting the project going, I think a lot of people filter out the, the reality of it. So I get into discussions with customers about this here and there when they’re asking me more out of curiosity of how should they approach a project.

And, and that, that’s what I tell them, I’m like, “Be honest with yourself, it’s your project, it’s your house, you want it done right. Don’t, don’t convince yourself of something. If you’ve got to push yourself that much, you, you know your answer. You know, stay, stay in your lane on what you know how to do, or you can get qualified people that may be family and friends to help you with other stuff, hire it out to people that know what’s going on, it’ll be done quicker, it’ll be done right, and you won’t be paying for it twice.”

Host: Yeah, you save money in the long run, even when you think you’re saving pennies, you’re throwing dollars out the window.

Steve Tuma: Right, right, and that’s, that’s, that’s the thing. You know, so we’re able to help people on situations like this, you know, just to understand the project, what it takes, how, how to navigate the situations. And I think when you, when you look at the, or listen to this podcast, and you see the different topics, it’s all really just frame it in reality. You know, what’s the reality of your time? You got your family, you got your job. What’s the reality of the time you can put into this? And we have a lot of extremely busy people building houses, and they do a great job, but you just have to methodically put it into a process that’s realistic so that you can achieve the milestones, and, and move forward. And, uh, the people that do that, put the reality check on it, frame it properly, they enjoy the process. They might be like, “Steve, this is a lot of work, but you know what? Our foundation’s in. Here’s a picture of me and the kids in the foundation.”

You know, so it’s, it’s enjoy the wins as, as you move along the process, and a lot of people are building this home for a life experience, so they want to see the ins and outs of it. It’s, it’s kind of amazing. It’s part of, part of the journey for sure. Yeah.

Host: Well, that’s going to wrap it up for this, this edition of the Panelized Prefab Kit Home Building Show. But before we let you go, Steve, let the listeners know how to find out more about Landmark Home and Land Company and all that you guys are doing over there.

Steve Tuma: Well, the best thing to do is check out our website at LHLC.com. That’s kind of the initials of Landmark Home and Land Company, but it’s LHLC.com. And on our website, there’s thousands of plans, there’s videos, there’s these podcasts, there’s different descriptions of what we do, what we include in the package, and people can get real familiar with it. They can, uh, also look at the plans, and then send an inquiry and saying, “Hey, I like this plan, I’m, you know, I’m, I’m Joe Customer, I’m going to build here, and can someone contact us?” Or they can call at 800-830-9788, at 800-830-9788, and, uh, Mike will answer the phone, and we can talk, they can discuss the project.

Um, we’re very proactive in answering the phone and being very responsive, so if for some reason you do get a voicemail, someone will call you back right away. We are here to help you, and we do want to, you know, introduce ourselves and get to know each other in the process. At a certain stage then, it would be passed off to me where I would then work to, to finalize the details. And then we’re on all the, the main platforms: Instagram, Facebook, X, Pinterest, you know, Landmark Home and Land Company, you could search it and, and find us. So that, that’s it. And then if someone wanted to call me directly, my direct cell phone is 708-205-2043, so we’re looking forward to people contacting us to see how we can help them, and have some fun along the way.

Host: And fun is what it’s all about, well, that and building a good home, you know. All right then. Thanks again, Steve, and thanks to all of our listeners to, uh, for tuning in to the Panelized Prefab Kit Home Building Show. So for Landmark Home and Land Company President Steve Tuma and myself, have a great week ahead, and we will see you next time. Thanks again, Steve.

Steve Tuma: Yeah, this was an interesting, a lot of topics that weren’t covered in other, podcasts. It’s a, it’s an important set of details. I hope people enjoy it.

Host: I agree. Thanks again.

Steve Tuma: Thanks.