Category: resort properties

Resort Construction Costs

How do you keep resort area construction costs down? First of all, you have to understand what makes them go up. There are hundreds of factors that go into price fluctuations in construction materials. I want to touch on a few here. The first is fuel costs. The price of oil has a direct impact on almost every industry in the world. Especially if your vacation site has to be reached by boat. Building and construction are no exceptions to this rule. Construction components are bulky and heavy and have to be transported sometimes over great distances. To haul a crane halfway across the country for a project burns hundreds of gallons of fuel. Once it gets there, you have to put fuel in it as well. Those are small trips. Arrange your storage of supplies ahead of time. Jordan, one of the installers at S&S always tells his crew to have these things lined up to prevent delays. That’s why they are known for the best Wayne heater repair  services.

crane shipment

Think about all of the lumber, concrete, and wiring that has to also be transported to work sites. There are also things you don’t think about as well. A lot of rubber insulation uses petroleum-based products and their build-up. That also includes nail anchors, tile separators, can many issues of products that your use on the job. The second factor is basic supply and demand. When the vacation market is up everyone wants to build. That means components that go into building go through the roof. For one, construction retailers know when the demand is rising, and raise their prices as well to make the most of the boom market. Secondly, when there are shortages of supplies due to the amount of building taking place the price for the shortages rises again.

resort building supplies

It is not uncommon for there to be a bidding war between competing builders. A hint for such Builders would be to stock up on supplies while the price is low even if you don’t need them to avoid accelerated costs in the future. It may not seem wise to have a warehouse full of materials when there are no resort projects, but when things turn around you will be happy you did it. Important component is labor cost. You always want to plan ahead and secure the best people at the best price for any new project. If not, then you will be left scrambling in the end to gather the right labor force to get things underway. When such haste is taken, you may not end up with the right people for the right job. That creates a high turnover rate in your labor staff, and delays and project deadlines. There are many other factors which affect construction costs but these are some of the big ones. Keep them in mind at all times and you will be on your way to a profitable future.

Building Resort Properties

Getting the necessary funding for your vacation resort construction project may not be as easy as it sounds. There are lots of different ways to obtain funding, and also a lots of hoops you have to jump through. I’m going to discuss some of the basic methods, along with some more modern techniques. First there is the traditional bank loan. You marching to the bank with your project proposal and presented to a panel of investment bankers who go over your case with a fine-tooth comb. Most times there is a large down payment required and or collateral that has to be put forward. If your company has a good relationship with your bank, this is the easy way to go.

new vacation construction

Another technique is through insurance companies. Insurance companies are always looking for new investments and they really rally around construction projects for vacation spots. For the most part they are very profitable and are safe investments for insurance conglomerates. They will also require that your proposal be reviewed by a panel of loan officers. Maybe the angel investor is the way to go. This is someone who invests his own money into lucrative projects and is always on the hunt for something as tasty as resort real estate. Their formalities or not quite as formal. You may end up just meeting with the investor and his lawyer. These are men and women who are very keen investors and understand most markets through and through. Their interest rates are usually a little higher, but the loans are easier to get.

angel investor meeting

The next is a similar technique to the angel investor. This is the Shark Tank phenomena based on the popular TV show. There are smaller shark tanks in every state which comprised of multi-millionaires on the hunt for new investments. They are not televised but their money is just as good. In fact it may be a lot easier to concentrate on the task at hand without the cameras rolling. One thing that helps in any investment project is vacation reservations lined up before you even look for funding. For example, if you are building a hotel and up 50% of your rooms are reserved ahead of time, this will make the investment even more inviting. The investor will know right from the door that there will be in steady stream of income right off the bat. Or better yet if you can find a buyer for the entire building before construction even takes off that generally guarantees a loan from any entity. Whichever way you decide to go, weigh all your options carefully and don’t always take the first offer.