| Introduction |
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1 | (1) |
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1 | (1) |
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Conventions Used in This Book |
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2 | (1) |
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2 | (1) |
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3 | (1) |
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How This Book Is Organized |
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4 | (1) |
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Part I: Getting Started: The 411 on Custom Home Building |
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4 | (1) |
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Part II: All You Need Is Dough: Financing Your Custom Home |
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4 | (1) |
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Part III: Hammers and Nails: The Construction Process |
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4 | (1) |
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Part IV: All the After Stuff |
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4 | (1) |
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5 | (1) |
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5 | (1) |
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6 | (1) |
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Part I: Getting Started: The 411 on Custom Home Building |
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7 | (116) |
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The Custom Home Process in a Nutshell |
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9 | (14) |
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Where Do You Start? Preparing to Build Your Home |
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10 | (1) |
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Money Makes the World Go Round --- Paying for Your Home |
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11 | (2) |
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Asking yourself about affordability |
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11 | (1) |
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Them that has the gold makes the rules: If you finance, the bank will dictate process |
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12 | (1) |
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Introducing the Custom Home Life Cycle |
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13 | (6) |
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It takes (more than) two to tango --- A quick guide to the players |
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13 | (3) |
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So many tasks, so little time --- 50 steps to a custom home |
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16 | (2) |
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Patience is a virtue --- A true timeline for building your home |
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18 | (1) |
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Being an Owner-Builder: More Power to You! |
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19 | (4) |
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Analyzing the truth about savings |
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20 | (1) |
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Finding and managing subs |
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21 | (1) |
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21 | (2) |
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Preparing for the Process |
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23 | (18) |
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Organizing and Documenting |
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23 | (4) |
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Building a workbook and portable file system |
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24 | (1) |
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Calendar and communication --- Your PDA is your friend |
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25 | (1) |
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Being the bean counter --- Keeping track of your finances |
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26 | (1) |
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Shopping and sharing --- Collecting material information |
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27 | (1) |
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27 | (5) |
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Looking at your finances and cash flow |
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27 | (1) |
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Defining ``dollars per square foot'' |
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28 | (3) |
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Using a budgeting template |
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31 | (1) |
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32 | (4) |
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Understanding the contractor's role |
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32 | (1) |
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Getting bids --- Comparing apples to apples |
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33 | (1) |
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Evaluating a contractor's 3 Cs --- Cost, craftsmanship, and compatibility |
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34 | (1) |
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Using expert interviewing techniques |
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35 | (1) |
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Identifying Insurance Issues |
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36 | (2) |
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36 | (1) |
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37 | (1) |
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Course of construction policy |
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37 | (1) |
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Managing Your Expectations |
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38 | (3) |
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Planning a timeline --- A custom home is forever (So what's the hurry?) |
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38 | (1) |
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Making hard choices --- What you can (and can't) afford |
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38 | (1) |
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Patience --- Not everything must be perfect right away |
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39 | (1) |
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40 | (1) |
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The Land Grab: Selecting the Perfect Site |
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41 | (22) |
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Knowing the Difference between ``Land'' and a ``Lot'' |
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41 | (1) |
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Location, Location, Location --- Refining Your Lot-Buying Needs |
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42 | (2) |
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44 | (2) |
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44 | (1) |
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Engaging a real estate agent/lot specialist |
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44 | (1) |
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Doing the legwork on your own |
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45 | (1) |
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Finding a lot when there isn't one |
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45 | (1) |
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Evaluating a Particular Lot --- The True Value of Dirt |
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46 | (6) |
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Examining amenities and utilities |
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46 | (1) |
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Zoning in on zoning's limitations |
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47 | (1) |
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Understanding setbacks and footprints |
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48 | (2) |
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Size matters --- Assessing the land's value with the house |
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50 | (1) |
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A tale of two lot buyers --- How square footage impacts value |
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51 | (1) |
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Dealing with a Tear-Down Property |
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52 | (2) |
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Accounting for demolition costs |
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52 | (1) |
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Assessing neighborhood tolerance |
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52 | (1) |
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53 | (1) |
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54 | (9) |
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Understanding the purchase process |
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54 | (2) |
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56 | (3) |
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Finding other land loan alternatives |
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59 | (1) |
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Making sure the loan period is long enough |
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60 | (1) |
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Stop! Don't pay off your lot yet! |
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61 | (2) |
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Defining Your House Style |
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63 | (20) |
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Getting to Know Your Style Preferences and Limitations |
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63 | (4) |
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64 | (1) |
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Discovering your local style |
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64 | (1) |
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Playing by community rules |
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65 | (1) |
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Tapping the wisdom of the pros |
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66 | (1) |
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Considering Conventional Construction: Wood versus Steel |
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67 | (1) |
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Enjoying the Warmth of a Log Home |
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68 | (4) |
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69 | (2) |
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Purchasing your log package |
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71 | (1) |
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Highlighting Wood Inside --- Timber Frame or Post-and-Beam |
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72 | (3) |
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Considering a System Approach |
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75 | (4) |
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75 | (2) |
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77 | (1) |
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78 | (1) |
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Unearthing Alternative Construction Methods |
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79 | (4) |
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Architects and Design: Time Spent Is Money Saved |
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83 | (26) |
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Arming Yourself with an Architect |
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84 | (5) |
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Deciding whether you even need an architect |
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84 | (1) |
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Finding the right architect |
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85 | (1) |
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Managing the architecture process |
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86 | (1) |
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87 | (2) |
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Looking at Architect Alternatives |
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89 | (2) |
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Published floor plans --- Picking a home from books or online |
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89 | (1) |
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Software programs --- Designing your own plans |
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90 | (1) |
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90 | (1) |
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Placing the House on the Lot |
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91 | (3) |
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91 | (1) |
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Which orientation is best? North, south, east, or west |
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91 | (2) |
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Taking advantage of natural elements |
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93 | (1) |
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Planning the Size and Shape of Your Home |
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94 | (3) |
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Size matters --- Figuring the right square footage |
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95 | (1) |
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Designing for resale --- Create a house everyone wants to buy |
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96 | (1) |
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Exterior styles --- Considering architecture examples |
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96 | (1) |
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Designing Your Home's Interior |
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97 | (6) |
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Ten general floor-plan considerations |
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97 | (2) |
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Special considerations room by room |
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99 | (4) |
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The Devil Is in the Details |
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103 | (6) |
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Materials, hardware, fixtures, and finishes |
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104 | (1) |
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Make all your decisions now --- Allowance is a dirty word |
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105 | (1) |
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Energy efficiency --- Saving the earth (and your money!) |
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106 | (1) |
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Considering technology options |
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107 | (2) |
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Engineering and Plan Approval: Bureaucracy Made Somewhat Easy |
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109 | (14) |
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Understanding Plans and Blueprints |
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109 | (5) |
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Prelims --- Floor plans, site plans, and elevations |
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110 | (1) |
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Working drawings: The how-to-build-it papers |
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111 | (3) |
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Working with the Building and Planning Departments |
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114 | (2) |
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Submitting Your Prelims for Approval |
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116 | (4) |
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Addressing grading, septic, and well issues |
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116 | (1) |
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Understanding design guidelines |
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117 | (1) |
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Requesting variances and exceptions --- Don't be Don Quixote |
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118 | (1) |
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Not so fast --- Acquiring neighbor approval |
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119 | (1) |
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Gathering the Permits You Need |
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120 | (3) |
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Submitting and revising the working drawings |
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121 | (1) |
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Picking up permits and paying the fees |
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121 | (2) |
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Part II: All You Need Is Dough: Financing Your Custom Home |
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123 | (78) |
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Cash Is King: Using Debt to Your Advantage |
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125 | (14) |
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Accepting the Need for Cash, Cash, and More Cash |
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126 | (1) |
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Breaking the Emotional Barriers --- This Is Not Your Father's Depression |
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127 | (4) |
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Evaluating real estate within your net worth |
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128 | (1) |
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Acquiring secured debt can be good |
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129 | (1) |
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Getting on the same page --- How banks evaluate risk |
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129 | (1) |
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Changing perspective --- Home equity isn't a savings account |
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130 | (1) |
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Understanding the benefits of liquidity |
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131 | (1) |
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Okay, So You Have All This Cash --- Now Manage It |
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131 | (3) |
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Finding and working with a financial advisor |
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132 | (1) |
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Diversifying your portfolio |
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133 | (1) |
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Exploring alternative investments |
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133 | (1) |
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Turning Your House Into a Money-Making Machine |
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134 | (3) |
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More house for less cash --- Benefiting from leverage and appreciation |
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135 | (1) |
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Protecting your investment by making it marketable |
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135 | (1) |
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Understanding taxes --- Many parts of a home project are deductible |
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136 | (1) |
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Safely Deferring Financial Decisions Until the End of the Construction Project |
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137 | (2) |
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Knowledge Is Power: What You Don't Know About Construction Loans Can Hurt You |
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139 | (22) |
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Exploring Your Construction Loan Options |
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140 | (3) |
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Getting it done all in one --- Benefiting from a single-close |
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140 | (1) |
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Construction-only loans --- The double-close process |
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141 | (1) |
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Full documentation versus no-income-qualifier programs |
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142 | (1) |
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Poor credit and odd-property options |
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142 | (1) |
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Finding a Good Construction Lender |
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143 | (4) |
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Choosing a broker or a bank |
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144 | (1) |
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Testing a loan officer's knowledge |
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145 | (1) |
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Getting value added --- Education and experience are worth the money |
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146 | (1) |
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Private money --- The last resort |
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147 | (1) |
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The Loan Process from Start to Finish --- When to Do What |
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147 | (5) |
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Deciding when to sell your existing house |
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148 | (1) |
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149 | (1) |
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Getting the loan after construction starts |
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149 | (1) |
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150 | (1) |
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Locking in an interest rate |
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151 | (1) |
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Determining the length of your construction loan |
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152 | (1) |
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Understanding All the Fees |
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152 | (6) |
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154 | (1) |
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Escrow and title are more than other loans |
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155 | (1) |
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My goodness so many appraisal fees |
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156 | (1) |
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157 | (1) |
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Figuring all the little stuff |
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157 | (1) |
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Letting the Lender Carry Your Burden |
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158 | (3) |
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If someone offers you money, take it |
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159 | (1) |
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No payments --- Taking an interest reserve |
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159 | (2) |
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Qualifying: It's the Bank's Way or the Highway |
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161 | (24) |
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Stepping Behind the Desk --- How a Construction Lender Views Your Project |
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162 | (4) |
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Why some lenders may seem uncaring |
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162 | (1) |
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Understanding risk assessment |
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163 | (1) |
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How banks view your property |
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163 | (1) |
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How lenders view contractors |
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164 | (1) |
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How lenders view occupancy |
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164 | (1) |
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How lenders view spec projects |
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165 | (1) |
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Recognizing What a Construction Lender Really Wants to See |
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166 | (9) |
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167 | (2) |
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169 | (2) |
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171 | (2) |
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173 | (2) |
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Building the Bank's Construction Budget |
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175 | (4) |
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Figuring the land: Factor A |
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175 | (1) |
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Soft or indirect costs: Factor B |
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176 | (1) |
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Hard costs (board and nail): Factor C |
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176 | (1) |
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The contingency: Factor D |
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177 | (1) |
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Calculating the interest reserve: Factor E |
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177 | (1) |
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Loan closing costs: Factor F |
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178 | (1) |
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Totaling up the cost-to-build |
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178 | (1) |
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Calculating the Loan Amount and Cash |
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179 | (4) |
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Basing the loan on finished value --- LTV |
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179 | (1) |
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Basing the loan on cost-to-build --- LTC |
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180 | (1) |
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Calculating the cash needed for the project |
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181 | (2) |
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Solving Other Budget Problems |
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183 | (2) |
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Landscaping and finish work can kill the project |
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183 | (1) |
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Costing --- What if I can build on the cheap? |
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184 | (1) |
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What if I need more cash than is in my budget? |
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184 | (1) |
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185 | (16) |
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Managing a Self-Funded Project |
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185 | (1) |
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186 | (3) |
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Of course, you don't get all the money upfront |
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186 | (1) |
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187 | (1) |
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188 | (1) |
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Understanding How the Voucher System Works |
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189 | (1) |
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Taking a Closer Look at the Draw Reimbursement System |
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190 | (6) |
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Figuring which costs are which |
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191 | (3) |
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Managing the flow of funds with percentages and contingencies |
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194 | (1) |
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194 | (1) |
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195 | (1) |
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Using the draw system to pay for your log or kit home deposits |
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195 | (1) |
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Acing your finals --- Final completion and final funds |
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196 | (1) |
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Figuring Out Who Gets the Money --- You or the Contractor |
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196 | (2) |
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Using Credit Cards Responsibly Can Buy You a Trip to Europe |
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198 | (3) |
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Part III: Hammers and Nails: The Construction Process |
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201 | (74) |
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All the King's Men: The Contractor and His Cohorts |
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203 | (14) |
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Working with Your Contractor |
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203 | (3) |
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Fostering good communication --- A meeting a day keeps the anger away |
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204 | (1) |
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Maintaining a productive work environment |
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205 | (1) |
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Change orders --- Dealing with indecision |
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205 | (1) |
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Keeping a happy and healthy relationship with your contractor |
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206 | (1) |
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Managing Your Time and Money |
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206 | (4) |
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207 | (2) |
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209 | (1) |
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Controlling the funds --- How to manage the checkbook |
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209 | (1) |
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Introducing Other Important Players |
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210 | (3) |
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210 | (1) |
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Working with subs --- Each one is an expert |
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211 | (1) |
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Preparing for building and bank inspectors |
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212 | (1) |
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213 | (4) |
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Avoiding mechanic's liens --- The contractor's weapons |
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213 | (1) |
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Using legal remedies --- Arbitration and attorneys |
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214 | (3) |
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Excavation and Foundation: Getting a Solid Start |
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217 | (14) |
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Surveying and Site Preparation |
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218 | (7) |
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218 | (2) |
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Preparing your site before the first shovelful |
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220 | (1) |
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220 | (1) |
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221 | (1) |
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Constructing retaining walls |
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222 | (1) |
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223 | (1) |
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224 | (1) |
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Spot-check --- Surveying and site preparation |
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224 | (1) |
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Preparing for the Utilities |
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225 | (2) |
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225 | (1) |
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226 | (1) |
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Installing septic systems |
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226 | (1) |
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226 | (1) |
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227 | (1) |
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227 | (1) |
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227 | (4) |
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228 | (1) |
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Installing the foundation |
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229 | (1) |
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Spot-check --- Foundations |
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230 | (1) |
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Framing and Rough: So Much Goes Behind Those Walls! |
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231 | (20) |
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Things to Consider Before Framing and Rough Work Begin |
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231 | (3) |
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Questions to ask your contractor |
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232 | (1) |
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232 | (1) |
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Trusses and I-beams: Yes or no? |
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233 | (1) |
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Looking at What's Involved in Framing Your House |
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234 | (5) |
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Understanding the framing process |
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234 | (4) |
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238 | (1) |
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Installing the Rough Systems with Ease |
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239 | (8) |
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239 | (3) |
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242 | (1) |
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243 | (1) |
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Spot-check --- HVAC system |
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244 | (1) |
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245 | (2) |
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Spot-check --- Rough electrical |
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247 | (1) |
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Sheathing, Flashing, and Insulation |
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247 | (4) |
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Covering the framing --- Sheathing and flashing with your clothes on |
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248 | (1) |
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Rolling out the insulation |
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249 | (1) |
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Spot-check --- Sheathing, flashing, and insulation |
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249 | (2) |
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Heading for the Finish: So Much Detail |
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251 | (24) |
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The Icing on the Cake --- Exterior Finishing |
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251 | (8) |
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252 | (1) |
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Finishing an attached deck |
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253 | (1) |
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Up on the roof --- Roofing and rain gutters |
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254 | (3) |
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Installing the driveway --- Finish options |
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257 | (1) |
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258 | (1) |
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Spot-check --- Exterior finishing |
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258 | (1) |
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Moving Inside --- Completing Fireplaces and Walls |
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259 | (3) |
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259 | (1) |
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Drywall and wall textures |
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260 | (1) |
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Spot-check --- Fireplaces and walls |
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261 | (1) |
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The Finish Carpenters --- Doors, Windows, Molding, Cabinets, and Countertops |
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262 | (6) |
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263 | (1) |
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264 | (1) |
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Cabinetry and countertops |
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265 | (2) |
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Spot-check --- The finish carpenters |
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267 | (1) |
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268 | (7) |
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268 | (1) |
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269 | (1) |
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270 | (3) |
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273 | (1) |
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Spot-check --- Painting, fixtures, flooring, and appliances |
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273 | (2) |
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Part IV: All the After Stuff |
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275 | (42) |
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Home Sweet Nest Egg: Moving In and Managing Your New Investment |
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277 | (10) |
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Finishing Up the Custom Home Project |
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277 | (3) |
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Getting your certificate of occupancy |
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278 | (1) |
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Obtaining the mechanic's lien releases |
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278 | (1) |
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Rolling the construction loan --- Choosing a final loan amount and program |
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279 | (1) |
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Taking the Final Contractor Walk-Through |
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280 | (1) |
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Selling the Old Home and Moving |
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281 | (1) |
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Managing Maintenance and Repairs |
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282 | (2) |
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The builder's long-term responsibilities and warranties |
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283 | (1) |
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Dealing with construction defects |
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283 | (1) |
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Should You Stay or Should You Go? |
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284 | (3) |
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Being aware of neighborhood trends |
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|
285 | (1) |
|
Two-year capital gains tax implications |
|
|
286 | (1) |
|
Refinancing: More Money, Cheaper Payments |
|
|
287 | (14) |
|
You Still May Want Another Loan |
|
|
287 | (2) |
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Filling the need for more cash |
|
|
288 | (1) |
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Reconsidering how long you will stay |
|
|
288 | (1) |
|
|
|
289 | (1) |
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Three Things You Should Know About Refinancing |
|
|
289 | (3) |
|
You aren't the bank's customer |
|
|
289 | (2) |
|
The banks view new custom homes differently than existing homes |
|
|
291 | (1) |
|
Rates and fees are only part of the big picture |
|
|
291 | (1) |
|
Picking the Right Mortgage Program |
|
|
292 | (6) |
|
A mediocre loan officer can cost you big time |
|
|
292 | (1) |
|
Home equity lines of credit (HELOCs) |
|
|
293 | (1) |
|
Adjustable rate mortgages (ARMs) |
|
|
293 | (3) |
|
|
|
296 | (1) |
|
Zero-cost loans can be expensive |
|
|
296 | (2) |
|
Paying Off Your Home May Be Fiscally Irresponsible |
|
|
298 | (3) |
|
|
|
298 | (1) |
|
|
|
299 | (2) |
|
Taking It Outside: The Art of Landscaping |
|
|
301 | (16) |
|
Designing Your Dream Landscape |
|
|
302 | (7) |
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Using a designer -- yes or no? |
|
|
302 | (2) |
|
Revisiting your site plan |
|
|
304 | (1) |
|
Considering your wants and needs |
|
|
305 | (2) |
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Dealing with your climate |
|
|
307 | (1) |
|
Saving time and money by design |
|
|
307 | (1) |
|
Getting your plan on paper |
|
|
308 | (1) |
|
Putting Your Plan in Action --- Hardscaping |
|
|
309 | (5) |
|
Planning a patio, Daddy-o |
|
|
310 | (1) |
|
|
|
310 | (1) |
|
|
|
311 | (1) |
|
|
|
312 | (1) |
|
|
|
313 | (1) |
|
|
|
313 | (1) |
|
Leafing Out --- Softscaping with Plants |
|
|
314 | (3) |
|
Planting trees after construction |
|
|
314 | (1) |
|
Adding texture with shrubs |
|
|
315 | (1) |
|
Bloom time --- Annuals and perennials |
|
|
315 | (2) |
|
|
|
317 | (32) |
|
Ten Common Custom Home Mistakes and How to Avoid 'Em |
|
|
319 | (6) |
|
Ten Great Ways to Lower Construction Costs |
|
|
325 | (6) |
|
Ten Common Stuck-in-the-Middle Problems and Their Fixes |
|
|
331 | (6) |
|
Ten Helpful Custom Home Resources |
|
|
337 | (6) |
|
Ten Ways to Make Your Home Green |
|
|
343 | (6) |
| Index |
|
349 | |
Other versions by this Author