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- From Dirt to Doorways: Building a Single-Family Spec in 12 Months — Without Blowing Your Contingency
From Dirt to Doorways: Building a Single-Family Spec in 12 Months — Without Blowing Your Contingency
George Tsividakis
June 23, 2025
Field-tested tactics, month-by-month milestones, and the financing structure that keeps your cash safe while the slab cures.
1 | The 12-Month “Spec Sprint” at a Glance
0–1 mo | 2–3 mo | 4–6 mo | 7–9 mo | 10–11 mo | 12 mo |
|---|---|---|---|---|---|
Close on land & permits | Site prep & foundation | Framing & MEP rough-in | Dry-in & exterior | Interior finishes | Staging, inspection, list/sell |
Key: Hit every milestone on schedule and keep contingency < 10 % by front-loading due diligence and funding draws on autopilot.
2 | Budget Blueprint — Where Most Specs Bleed Cash
Phase | Common Overrun | Control Move |
|---|---|---|
Entitlement / Permits | Extra plan-check rounds | Submit complete civil & energy calcs Day 1; pay for priority review if city offers it. |
Foundation | Bad soils / unexpected rock | Order a geotech report before land close; add 5 % earthwork buffer. |
Framing Package | Lumber price spikes | Lock lumber at bid + escalation cap (supplier shares 50 % of upside). |
MEP Trades | Change-order crossfire | Weekly OAC* meeting; only GC signs change orders. |
Finishes | “Spec creep” (gold fixtures in C-class hood) | ARV matrix: if upgrade adds ≤ 50 % of cost to value, veto it. |
Soft Carry | Weather / inspection delays | Build 15 “float” days into CPM schedule; interest reserve funds them. |
*OAC = Owner-Architect-Contractor.
3 | Month-by-Month Checklist & Cost Guardrails
Month 0–1 | Close Dirt + Permits
Contingency risk: seller surprises (easements, liens).
Guardrail: run title+survey before signing; close land & construction loan same day to avoid two sets of fees.
Month 2–3 | Site Prep & Foundation
Stake lot, trench utilities, pour slab/footings.
Guardrail: video-record footer inspection → faster draw approval.
Month 4–6 | Frame, Roof, MEP Rough-In
Prefab trusses save 10–14 calendar days.
Guardrail: schedule building-inspection trio (framing, plumbing, electrical) on the same morning.
Month 7–9 | Windows, Siding, Drywall
Weather-tight by Week 28.
Guardrail: drywall delivery day = insulation inspection pass the day before—no reschedule fees.
Month 10–11 | Finishes & Punch List
Cabinets, flooring, paint; hire cleaner mid-punch, not after.
Guardrail: 5 % retention on GC until CO issued.
Month 12 | Stage, List, Close
Pro photos within 24 hrs of CO; push to MLS Friday 9 a.m.
Guardrail: stage on month-to-month contract; de-stage free if sold in 21 days.
4 | Financing Framework: 90 % LTC & 48-Hour Draws
Feature | LoanFunders.com GUC Program |
|---|---|
Up to 90 % LTC for builders with 10 + flips / 4 + GUCs | Lower cash-in = larger rainy-day reserve. |
100 % Construction Funding (reimbursed) | No dipping into equity mid-project. |
48-Hr Draw Wire | Subs stay on schedule → fewer idle-labor charges. |
Bad-Boy-Only Recourse | Shields personal balance sheet; partners love it. |
Interest Reserve Built-In | Carry costs already covered; no payment shocks if weather stalls. |
5 | Case Study — 2,400 sf Spec in Austin ETJ
Metric | Budget | Final | Variance |
|---|---|---|---|
Land + Closing | $110 K | $110 K | 0 % |
Hard Costs | $312 K | $323 K | +3.5 % |
Soft + Carry | $38 K | $40 K | +5 % |
Contingency (10 %) | $46 K | $18 K used | < 4 % total |
Sale Price | — | $665 K | — |
Profit (net of finance) | — | $154 K | — |
Timeline | 363 days contract-to-close | 358 days | 5 days early |
Financed with 85 % LTC bridge from LoanFunders.com; five draws wired in ≤ 48 hrs each.
6 | 10-Item Pre-Build Binder list:
Land contract + survey
Geotech & soils report
Full permit set (PDF + CAD)
Line-item budget (digital)
CPM schedule with float days
Trade subcontracts w/ fixed pricing
Insurance certs & builder’s risk
Draw schedule (mirrors budget)
Updated lumber & truss quotes
Exit comps & listing plan
7 | Key Takeaways
Front-load reports, lock materials, and bake float days—contingency is last-resort cash.
A 90 % LTC construction loan with fast draws beats “cheap” bank money that pays 30 days late.
The 12-month spec sprint lives or dies on inspection timing—schedule them like VIP meetings.
Track variance weekly; if you blow > 25 % of contingency by Month 6, re-forecast and cut upgrades early.
Ready to Break Ground?
Upload your lot address, budget, and experience résumé. LoanFunders.com will size your ground-up loan and send a term sheet within 24 hours—so you can pour, frame, and finish without bleeding contingency.
Pour the slab, not your savings.