Today, we’re diving into New Construction 101 with special guest Nick Porazzo of Porazzo Construction — a seasoned contractor who recently completed a major renovation on my own home.
While many people think new construction is just about picking colors, flooring, and finishes, experienced builders and real estate investors know that’s only the fun part. The real work happens behind the scenes — and it’s critical to understand every step if you want your new build to be profitable.
The New Construction Process – Step by Step
Nick and I put together a quick overview of the major stages in a new build:
- Site Prep & Foundation Work
- Land clearing
- Setting forms
- Pouring foundations
- Passing initial inspections
- Framing & Weatherproofing
- Framing the structure
- Sheathing
- Getting the building “weather-tight”
- Framing the structure
- Rough-Ins by Subcontractors
- Plumbing, electrical, and HVAC installation
- Rough inspections before moving forward
- Plumbing, electrical, and HVAC installation
- Insulation & More Inspections
- Installing insulation
- Passing insulation inspection
- Installing insulation
- Interior Finishes
- Cabinets, vanities, tile, and flooring installation
- Interior painting and trim work
- Cabinets, vanities, tile, and flooring installation
- Exterior Work & Landscaping
- Driveways, walkways, retaining walls, and landscaping
- Driveways, walkways, retaining walls, and landscaping
- Punch List & Final Touches
- Correcting scratches, paint touch-ups, and flooring fixes
- Ensuring every last detail is perfect before listing or moving in
- Correcting scratches, paint touch-ups, and flooring fixes
Timeline Expectations
With today’s supply chain challenges and inspection schedules, a new build typically takes about six months from start to finish — assuming you have a strong, reliable crew in place.
Pro Tips for Real Estate Investors
Nick shared some invaluable advice for investors who want to succeed in new construction:
- Hire the Right Contractor
- Go by word of mouth, not flashy ads.
- Look for builders who are booked months in advance — it’s a sign of quality work.
- Go by word of mouth, not flashy ads.
- Pay On Time
- Even the best contractor can’t keep your project moving if they aren’t paid promptly.
- This goes for subcontractors, too. Late payments can stall or even sink your project.
- Even the best contractor can’t keep your project moving if they aren’t paid promptly.
- Verify Insurance & Licensing
- Ensure your contractor and all subs have proper licenses, workers’ comp, and liability insurance.
- Their insurance company should be able to send proof directly to you.
- Ensure your contractor and all subs have proper licenses, workers’ comp, and liability insurance.
Final Thoughts
Building new construction for profit isn’t just about picking pretty finishes — it’s about managing a process from bare land to move-in ready. With the right contractor, a clear plan, and attention to detail, you can maximize both your efficiency and your return on investment.