Jul 1 2008
Taking a page from Dell Computer's landmark "just in time" manufacturing model, New Millennial Homes has created the Ready When You Are! program that promises buyers to complete construction on their new home within 45 to 60 days after permits are pulled.
"We're taking advantage of the techniques and technologies originally developed in-house to control costs to totally change the 'on your lot' industry," notes Michael Shrenk, managing partner of New Millennial Homes." It typically takes a buyer about four to six weeks to finalize financing on a home -- with this program the house is complete right about the time they're ready to sign a mortgage."
Other "on your lot" builders typically take from six to eight months to complete a home, Shrenk said.
The Ready When You Are! program was originally conceived as an option for investors who had purchased vacant lots expecting prices to continue to escalate, but are now looking for opportunities to increase their cash flow.
"Without the rapid price increases investors had come to expect, they have three choices," he said. "They can continue to pay taxes, maintenance and insurance on empty land, sell their lots, or build rental homes that generate cash flow. The real advantage to this program is that there is no additional money required until an investor actually purchases a house that's ready to rent."
Families who already own lots or land also benefit because they can use the equity in the land as a down payment for the home, while other families may want to select their own finishes and colors in a new home.
The super-speedy construction process also ensures a high-quality home at an exceptionally good price. "We don't have time to make mistakes when we're working on this kind of schedule," notes Dan Waibel, NMH architect."We've mapped every step of the process before we dig the first footer."
Every home has two professionals working on it -- an on-site superintendent to ensure that work is completed correctly and on schedule and an in-house construction coordinator to make sure that deliveries and subcontractors are efficiently scheduled.
"Our floor plans have been designed to work for most families so we don't need to customize," Waibel adds. "That means our staff buys exactly the materials needed -- with no delivery delays and no waste. It also means that subcontractors know exactly how things go together so there are no questions that might cause a construction slow down. We pay subcontractors weekly so they can hire the best workers and minimize turnover. Finally, we work with independent engineers to ensure that inspections are timely and that all construction meets or exceeds applicable building codes."
The focus on controlling costs has helped New Millennial become Tampa Bay's top builder of affordable homes. "On your lot" homes are priced from $85,000 and can be built in Tampa, St. Petersburg, Lakeland as well as other communities across Hillsborough, Pinellas, Pasco, Polk or Manatee counties.