From Dirt to Doorways: Building a Single-Family Spec in 12 Months — Without Blowing Your Contingency

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 88 % LTC bridge from LoanFunders.com; five draws wired in ≤ 48 hrs each.

6 | 10-Item Pre-Build Binder List:

  1. Land contract + survey

  2. Geotech & soils report

  3. Full permit set (PDF + CAD)

  4. Line-item budget (digital)

  5. CPM schedule with float days

  6. Trade subcontracts w/ fixed pricing

  7. Insurance certs & builder’s risk

  8. Draw schedule (mirrors budget)

  9. Updated lumber & truss quotes

  10. 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.