Building Systems

Ultimately money/profit is the best gauge in determining the success of any business. You can be the best builder in the world but if you are losing money, you are doomed to fail. Steven Nemiroff, owner of Perri Logan Group/SPL Development, has been in business for more than 29 years and is definitely not concerned with failure. His success is that he capitalizes on opportunities that other builders overlook.

Systemizing – Using Panels

The Perri Logan Group - Building Systems Steven began work in his family’s bathroom remodeling business. Here, he became familiar with package building. Bathrooms were remodeled using steel and porcelain pre-fabricated packages. Steve understood what time and money could be saved employing this system. He entered the panelized home business signing with Northern Homes. Today, he is using the Northern Design & Building Associates Ltd. products. These products save the clients time and money through reduced costs. Steve likes the product because he is better able to schedule his business commitments, meet finish dates for his clients and build more homes efficiently. His company serves New York and Connecticut. Mister Nemiroff extols one of the benefits of panels stating, “Panelisation helps my architects and my engineers resulting in major cost savings. I can save anywhere from $10,000 to $70,000 in fees for project house plans. In most cases we start with a standard house plan, then modify, to meet the clients need and wishes. The manufacturer will then adapt his product to the design changes made by the client. So my customers are thrilled because they are getting a customized home at a good price.” In the 29 years of business Steve has built over 1,000 homes.

An additional benefit working with a home manufacturer is that Mister Nemiroff can provide timely service to his clients. According to Steve, once the plans are in the hands of the manufacturer the revised plans will be returned to him in two days. The manufacturer has an in-house design staff so that there is little time wasted searching for architects to do plans.

Other Avenues For Profit

In addition to the framing crew, Nemiroff has a tile and linoleum crew, a finish crew, a normal construction crew, and real estate offices in two states. Nemiroff himself is a licensed broker and handles overseas sales as well. “These crews pay for themselves many times over”, confides Nemiroff. “I can keep a steady rotation of the crews from job to job with no interruption to work flow. I’m not trying to paint a larger than life picture of myself or my business. I just feel that covering as many bases as possible makes good sense”“. I usually leave the electric, plumbing and HVAC functions to sub-contractors. This is mainly because I build in several states and the ordinances and licensing restrictions vary from city to city and state to state. It’s just easier and more cost efficient to sub-contract these trades than to try to qualify them for each new job”.

Taking Part In Sales

After years of selling homes, Nemiroff believes that it is crucially important for the builder to speak directly to every customer who is interested in buying a home from his organization. “Regardless of how many sales people you have, the builder must talk to the customers himself at some point”, asserts Nemiroff. “People have heard all sorts of stories and advice about how to deal with a builder (what to believe and what not to believe). The Perri Logan Group - Building SystemsSo, to overcome the reservations and worries they may have, you must ease their minds by explaining your building process”. “I personally go over the construction process and time frame with every customer who purchases one of my homes. Consumers are worried about mortgage interest rates fluctuating. They are afraid that the builder will take longer than expected to finish the home and they’ll get stuck with a higher rate. So, I explain to them exactly when their new house will be completed and how I am able to guarantee a completion date. This is where the panel process starts to sell itself. As a side-note, I also tell them what could feasibly go wrong. By doing this, I win their trust because it shows that I am not just giving them a sales pitch”. Nemiroff also feels it is important to explain the home package in great detail to the customers. He points out that, after visiting a model, potential buyers often become confused over options and standard features. The buyer may see pull-down stairs from the attic and think they are standard when in reality, they are optional. The smallest things can become sore spots if not handled properly so it is just better to take care of them before they happen.

A 108-man framing crew enables Nemiroff to put up a shell on time, every time. When not working on one of his projects, the crew is working wold-wide and generating more profits to enhance his company's bottom line.

Making The Most Of Land Purchases

One of his specialties is developing and getting re-approval of properties that were once designated wetlands. According to Nemiroff, it’s all in knowing how to get the water off the land. “In a city like New York or even the immediate suburbs, most of the available land has some sort of a problem that falls in the wetland category”, Nemiroff asserts. “Often it is a pond, a drainage problem or a soil problem. But, this land can be developed if you get around these problems. And, the land can be purchased at a substantially lower price than parcels that so not have a problem. The thing to remember is that designated wetlands should not be ruled out when you are buying land for development”. Nemiroff states that the real key to using wetlands successfully is knowing how to deal with the numerous environmental protection agencies. He explains, “Getting the water off the land is often the easy part. It’s dealing with the various environmental departments that is tough. However, if you know what you’re doing, even this does not have to be a major problem. I am able to get approval in six months in cases that would normally take one to three years. You have to know the laws and know how to talk competently with the people working on your case”. The best advise Nemiroff can give is to address the problem with the land and don’t play games with the agency personnel. Solve the drainage problem or make adjustments to the soil. Just do what needs to be done and don’t try to get around the problem. Things will go a lot faster. Nemiroff confides, “You may have a sub-division that you can put 20 houses on but there are wetlands involved. Maybe you can re-cluster it and get 17 or 18 houses. But, you must bring things to reality, a real world situation or you may end up getting nothing on the property by fighting these people. Most people think that the environmentalists are there to take everybody’s land away. Because of this, many builders and developers are on the defensive when they walk into the agent’s office. This usually reflects on the way they talk to the wetlands people and unfortunately, when they jump down their throats, they make an enemy out of somebody that holds the key to their success or failure on a project. “Over time, things get worked out, but the idea is not to let that occur. You don’t want to take three years to get land approved. It’s not a game. It’s just a logical method of getting things through the system. If you have wetlands on land, you are not going to get what the land normally would yield in housing development. It’s a common thing that you won’t get it. So, now that you realize that you won’t get it, you must decide what is reasonable to get out of it. Then you attack what is reasonable. As a builder, you might put in two or three more lots to make the kind of profits you think you want”. According to Nemiroff, wetlands are low-lying areas that have moisture. The moisture can be a solid water base or simply water in the land. It is usually classified a wetland because of the soil content and/or the vegetation. Those things make up a true wetland. However, sometimes there may be water in an area because a developer, who did a project 20 years ago, didn’t allow for drainage and the water is now settling there. In this case, is it true wetland or simply a manmade problem? “That’s the difference and it’s the true problem,” stresses Nemiroff. “These areas are now being ruled out for development over a manmade situation. They were never planned or intended to be there so it really does not make sense to rule them out for development. But, if the land is completely covered by water (and there are animal species common to wetlands living there), you can pretty much forget doing any building. You’re just not going to get it approved”.

Summary

What's the point here? It is that money is to be made in many forms for builders who are really prepared to save money for their clients. A builder must make the effort to capitalize on all these areas. Time after time, builders find that what they thought was going to be a small addition to their normal business resulted in expanded building projects all because they utilized a systemized housing program that improved sales, made the job more cost effective, improved bottom line and satisfied the client.

  






I just wanted to write you a little note to let you know how absolutely thrilled we are with our new home! We have been enoying it immensely and can't thank you enough for all of your hard work! We also appreciate all of your support & "handholding" and patience with our many questions. You've been so wonderful in every way & we truly apreciate everything you've done for us! One day, when it is convenient for all of you, we would love to have you and your family over for dinner. Thank you again for everything!
D Ross - Greenwich, CT