The Secret to Getting Paid Upfront in Custom Home Building

Want to know how successful builders get paid upfront instead of chasing payments? It’s simpler than you think. Let’s break down the basics of smart payment collection.

The Traditional (Risky) Way:

• Wait until project end for profit
• Cover all costs upfront
• Chase late payments
• Hope clients pay on time

The Smarter Way to Get Paid

1. Start with the Right Agreement
   • Get paid for your expertise from the beginning with a Design & Discovery agreement after their complimentary initial consultation:
     • Small design fee ($1,000-$2,500)
     • Shows client commitment
     • Helps builds trust and allows you to get paid for pricing out the home
     • Starts cash flow to cover designer fees
2. Structure Smart Deposits
   • Before breaking ground:
     • Agreement signing: $25,000
     • Permit stage: $100,000
     • Clear timeline of deposits and payments in your Constructions Specifications Agreement
     • Written expectations
3. Regular Payment Points
   • Set clear milestones and get paid for as many milestones as they star.  Some examples in your draw schedule:
     • Foundation started
     • Framing started
     • Windows ordered
     • Cabinets ordered
     • Rough-ins started

Success Story:
“I was so grateful when I got my first check on the custom home job of $190,000 before we even started.” – JR Plante of Plante Custom Homes in CT

Why This Works:

• Clients understand the process
• You have money to start strong 
• Everyone knows what to expect
• Less stress on you about cash flow
• You don’t have to become the bank and finance the construction of their project

Common Questions:

• “Will clients really pay upfront?”
  • Yes, when you present it professionally and explain the benefits.
• “What if they say no?”
  • That’s actually good – it helps identify serious clients early.  If clients aren’t willing to pay in the beginning of the relationships, then this is a red flag that they may not be the right fit for you.

Keys to Success:

1. Clear communication
2. Professional approach
3. Written agreements
4. Confident presentation

Ready to Start Getting Paid Upfront?

Our Fast Track Ready-To-Go Toolkit shows you:

• How to discuss money confidently
• Basic payment structures
• Client communication tips
• Simple agreement guidelines

For just $50, learn the fundamental payment strategies that successful builders use to start getting paid upfront.  Learn more here.