Becoming an Architect

I had no one educate me on the steps necessary to become an architect. All I knew is I wanted to be one. As a result, I made a lot of mistakes early in my architectural pursuit. Eventually, I got on track and have since enjoyed the successes of a budding career in architecture and urban design. The intent here is two-fold. First, to educate consumers of architectural services on the effort, money and time it takes to become an architect. Secondly, to provide a general guide for kids who have interests in pursuing a career in architecture - especially kids in black and minority communities where architecture does not receive enough promotion as a viable career path.

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Three stages of becoming an architect. 

Before steeping into a design studio and diving into the details of becoming an architect, there are few prerequisites that potential architecture students and practicioners should become familiar with. Start reading about the subject. Introduce yourself to some of the "gods of architecture". Learn about the tools of the trade. Architecture is an intense profession. The more you can prepare yourself before formal study the better. Now. Let's get into it!

Becoming an architect requires a candidate to complete three vetting phases: Education, Apprenticeship, and Testing. As a disclaimer, know that these three phases only represent the institutional requirements potential architects must meet. But more importantly, becoming an architect requires a mental and emotional toughness, something that needs to be found within the individual. This essential personal attribute is what most new architecture candidates are completely unprepared for. It is absolutely paramount. I’ll touch on this topic at the end. First, there are a few organizations to be familiar with.

Organizations to Know

NCARB (National Council of Architectural Registration Boards) - NCARB’s mission is to ensure architects uphold their legal duty to protect the health, safety, and welfare of the public through ethical and competent design. They test aspiring architects on required skills, award architectural licences, and keep record of an architect’s professional status.

NAAB (National Architectural Accrediting Board) - sets the requirements that schools of architecture must meet in order to receive and retain accreditation status.

AIA (The American Institute of Architects) - The primary professional membership association for licensed and aspiring architects. Its focus is to support the profession of the architecture through advocacy, education and fellowship.

Education

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NCARB requires that candidates for licensure hold a professional degree in architecture from an NAAB accredited program. There are three types of acceptable NAAB professional degrees...

Bachelors of Architecture (B.Arch) - This is a 5 year undergraduate program

Masters of Architecture (M.Arch) - 2 year or 3 ½ year program

Doctorate of Architecture (D.Arch) - 3 years+

There are also pre-professional degrees like the four year Bachelor of Science (or Arts) in Architecture and the 1-2 year post-professional Master of Science (or Arts) in Architecture. These are NOT accredited degrees but schools of architecture will often combine these programs with accredited degrees they do offer. This allows students the opportunity to get their professional degree or simply focus on a specific aspect of architectural study. For example, a school that has an accredited M.Arch graduate program will often offer an undergraduate pre-professional B.Sc.Arch degree. 

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If you’re absolutely sure that your end goal is to become an architect, there are a few degrees to steer clear from. Degrees in Architectural Technology, Architectural Engineering, Architectural Studies, and Architectural History. These are noble degrees. But they are incomprehensive in educating future architects on all the things they need to know. Recipients of these degrees find respectable careers as draftsmen, building systems experts, tradesmen, construction managers, historians, inspectors and professional builders, but not as architects. Obtaining one of these degrees will still require one to receive an accredited degree and potentially additional courses to compenstate for gaps in previous education. As college tuition costs continue to escalate, this can be a very expensive path to take. 

For those that do commit to architecture late, there is the “Path B” or “+3 Master of Architecture” option. This option is for individuals holding any type of degree in a non pre-professional architectural field or a completely different field altogether. Essentially it’s an accredited ‘crash course’ M.Arch degree that takes about 3 ½ years to complete.

Apprenticeship

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Apprenticeship is the second phase of becoming an architect. 

Before architecture became a field of study in universities, it was taught exclusively through apprenticeship. Apprenticeship still exists, but has been formalized as a prerequisite for attaining licensure. AXP (Architectural Experience Program) is the official architectural apprenticeship program managed by NCARB. It’s a completely digital system where aspiring architects can log and track of their training hours.

AXP is broken into six main categories that contain subcategories representing the skills architects must gain experience in. Each main category has a prescribed amount of hours required for completion, totalling 3,740 hours between them. These hours are then divided among the sub-divisions skill sets. Below are the main categories and their hourly requirements...

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The six apprenticeship categories for training architects under the NCARB (AXP) program.

Practice Management - skills required to run, manage, and market an architectural firm: 160 hours total

Project Management- skills relating to completing projects according to contractual requirements including budgets and scheduling: 360 hours total

Programming & Analysis - skills relating to the analysis and research into the client, legal, and regulatory implications of a project : 260 hours

Project Planning & Design - skills relating to the schematic design and layout of a building: 1,080 hours

Project Development & Documentation - skills relating to the refining of schematic plans, coordination with consultants, the creation of technical construction documentation and specifications, and refining project cost and time estimates 1,520 hours

Construction & Evaluation - skills relating to the post design phases of a project like meeting on construction site with contractors, responding to submittals, check completed work of the builder, and making field reports, and accepting the finished project: 360 hours.

It is important to note that AXP hours are baseline requirements. Some state jurisdictions require more hours, experience and/or testing before granting a license to practice. The architectural licensing board of Michigan requires 1,900 more apprenticeship hours in addition to the 3,740. Virginia’s board requires more hours and 3 years minimum working experience. California requires additional testing because of seismic conditions unique to the state. Be sure to research specific state requirements for states you’re seeking licensure in.

There are several ways to gain these hours. Visit NCARB’s website if you’d like to familiarize yourself with all of them. However, the primary method is to work in the office of a licensed architect who will oversee your work and validate your apprenticeship hours. An efficient benefit to this process is being able to log apprenticeship hours while taking your ARE exams. They can be completed in parallel.

Testing

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Testing is the third phase of becoming an archtiect. 

The completion of APX hours is not required to begin testing. But aspiring architects must hold one of the three acceptable professional degrees (B.Arch, M.Arch, D.Arch) before their first exam.

The ARE (Architect Registration Exam) is a set of exams that test candidate architects on the basic knowledge, skills and abilities required to successfully provide architectural services. In November of 2016, NCARB released ARE 5.0 which will phase out the previous version 4.0. This version will have six exams corresponding to the six APX apprenticeship categories. Here are the exams and there durations.

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The six exams of the ARE (Architectural Registration Exams). Each test is at a minimum four hours long. 

Practice Management Exam: 80 Questions - 3 hours and 30 minutes

Project Management Exam: 95 questions - 4 hours

Programming and Analysis Exam: 95 questions - 4 hours

Project Planning and Design Exam: 120 questions - 5 hours

Project Development and Documentation Exam: 120 questions - 5 hours

Construction and Evaluation: 95 questions - 4 hours

NCARB changes the testing format around every ten years to insure exams reflect current developments in the architectural profession. ARE 5.0 exams will cost $210 and will escalate to $235 in 2018 when version 4.0 is completely phased out. There is no specific order the exams must be completed in. But a popular strategy is to test according to the apprenticeship hours you are gaining through working.

A few housekeeping notes about ARE testing. If a test is failed, one can re-test after 60 days. However, you can only take the same test three times in one year. There is also a Rolling Clock rule which states that upon passing an exam you have five years to pass the rest of them. If you don’t you will lose credit for that exam and will have to re-test all over again. Lastly, there are a few study guides to help examinees prepare. The two most common study guides are published byBallast and Kaplan.

Once all three phases are complete, one will legally be able to call themselves an architect.

"Don't be fooled/[this] game is Mental"

For those thinking about pursuing architecture as a career, I urge you first to ask yourself, “Why?” It may not be what you think. For most it won’t be. For me it wasn’t. Whatever your answer is, I pray it touches you at the core of your soul. The answer to this simple question will need to have enough substance to motivate you through some very trying and frustrating times. This profession is not forthe faint of heart. I mean that with sincerity, not to discourage but to be honest and transparent. Being an architect is tremendously rewarding. I can’t think of anything else I’d rather be doing. The process it takes to become an architect is an arduous one. Architecture school in particular requires a certain mental resolve. At the core of any architectural education is the infamous studio course; a series of 6-7 credit, 5-6 hour long classes where students apply theory to a design problem. It will test your emotions. You might experience succesive all-nighters. You will face blunt and vulgar criticism from professors and peers. You will need tough skin. You will struggle with ideas. You will fail. Failure is good though. Get used to it. You might cry. You will need to control your feelings. It will demand a certain level of sacrifice of self, family, and friends and it will be up to you to manage that. Does this all sound loathsome and unwelcoming. Well it is. Like I said before, architecture isn’t for everyone. This 25 minute documentary, “Archiculture”, gives a good summary of what architecture students endure on the regular. And it’s pretty entertaining.  

Most architects would say all the stress and struggle was worth it. Afterall, architects are responsible for the successful execution and beauty of the built world. We have the ability to shape lifestyles. We should endure rigorous vetting. I remember asking myself the “Why?” question for the first time right after my worst project presentation ever. After some slices of college cafeteria pizza, a few rounds of Rock Band, some serious thought, and some sleep I answered myself. Why? Because I love it. To those future architects, you will too.

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The Value of an Architect

We'll Guide You Through The Approval Process

Designing a building is an exciting thing. However, to do so it will require certain legal approvals from governing jurisdictions before a permit to build can be issued. Depending on the project there are many approvals that apply. This pre-phase of a project can be very cumbersome, frustrating, and expensive for clients, especially if not done the correct way.

Designing a building is a very complex process. Many regulatory offices will put their hands on your project checking for compliance with codes and ordinances. This can be overwhelming. Architects are trained to decifer which codes and regulations apply and what documentation is needed to satisfy them. (Diagram by Marques King)

Architects are aware of all various approval processes and can help determine when or if they affect a particular project. They guide clients through these procedures by preparing the proper documentation, representing the client's project at public review hearings, and educate the client on the permitting process and fees making a stressful process much quicker and efficient. Contractors typically do not have this skill. They may be knowledgeable on building code, but are often unaware of the many other restrictions that will apply to a project. Oversight of these restrictions significantly slow down the progress of a project and even prevent it from moving forward at all. The cost to the client to fix compliance issues could easily be in the thousands and result in more convoluted legal paperwork. It is important to get this right the first time.

Contractors Build Buildings, Architects Design Experiences

The most valuable asset architects bring to any design project is the ability to craft buildings that offer unique experiences. Architectural training consists of a comprehensive study of buildings and cities throughout history. They study hundreds of ideas and concepts that have been developed and perfected over the course of time. From ancient to modern architecture, architect's dissect the core concepts, master them, and add them to their repertoire to replicate and progress in their own architecture. The understand how to organize and sequence space to evoke certain feelings and moods. The understand natural light and how to manipulate it to create spaces. The understand matters of style, scale, visual composition and proportion. Yes, ‘brick and mortar’ is the medium used to physically make a building. But it’s the creative relationships between these physical components that make the structure unique, influential, and even sentimental. Architecture is unlike any other art form, in that to be good, it must be both functional and memorable for people.

A sketch of the rooftops in Seaside, Flordia merged with a photograph of the sun setting over the Gulf of Mexico horizon. It is an accurate depiction of the sunset experiences afforded to residents and visitors of Seaside because of good design vision by the town's architects and urban designers. (Sketch by Marques King)

This is not to say that builders do not care how people experience their spaces. Most do and some don’t. But many contractors are not trained to create highly nuanced and memorable spatial experiences in buildings and cities. Contractors build. Their chief concern is with construction and not spatial experience. Contractor's are specialists. But even construction is not simply about the materials used, it’s how they’re used. And it’s not about the spaces made, it’s about how people experience them. Architects have the creative mind and ability to create these enjoyable spatial moments.

Architects See the Whole System

Architects visualize buildings as a holistic system consisting of many parts. They are a rare mix of artisan and scientist. Popular opinion suggests that architects are only concerned with how buildings look. Not so. They are trained and educated to be familiar with every aspect of a building’s functionality. There are many systems that must be coordinated in order for a building to function properly: Electrical, HVAC (Heating Ventilation and Cooling), plumbing, and structural systems to name a few. Architects allocate adequate space to each system and ensure their proper placement, resolving any conflicts that arise between them. An example of this is running ventilation ductwork in a ceiling. Each duct must comply with the mechanical code, which serves as the basis of design for sizing the duct. The duct is positioned in the ceiling. But its location must also be coordinated with other ducts, ceiling structure, plumbing pipes, thermal insulation, lighting, and finishes, all which require space. Finally, this assembly must meet building code requirements and the experiential intent of the overall design. Many contractors would see the installation of an individual system as a success. An architect would judge success based on the installation of all parts in support of the building’s visual and spatial purpose.  

An architect's working sketch that depicts how a building's systems, structure and components will work together. Buildings are very complex with many things that will have to occupy the same space. (Sketch my Marques King)

A architect's construction sketch coordinating the location of a supply duct in the ceiling of a corridor. (Sketch my Marques King)

The buildings themselves are also apart of the system that surrounds them. In every situation, urban or rural, a building will have a relationship to its context. On a farm, there are a collection of buildings - main house, barn, stable - that require certain relationships on the land. In cities and urbanized areas, there are master plans that detail an overall vision of how buildings should relate to one another. To retain the cohesiveness of this pattern, buildings must hold certain relationships with the street, adjacent buildings, sidewalks, open spaces as well as respond to an existing aesthetic character. Again, it is within the architect’s job and ability to determine how buildings - pieces of a whole - fit properly in the larger system.

Architects Can Save you Time and Money

Architectural services are too often seen as a cost rather than an investment. However, architects can save their clients enormous amounts of time and thousands of dollars throughout a project.

There are a lot parts and pieces that make even the smallest of buildings. Spending the money on an expereinced designer from the start can save you thousands of dollars during construction and throughout the life of the building. 

If given the proper amount of time to design a building, architects can craft a concise, complete, and well-thought out construction document set from which the project can be built from. From an upfront cost standpoint, this ‘extra’ time will certainly cost more than a hurried project. But from a life cycle stance, reducing an architect's fees by demanding unreasonable project schedules, will 99% of the time never save any money.What it will produce is an extremely lowered quality of drawings & documents, and inevitably increase the overall cost of the project substantially. Lower quality drawings and specifications will have details that are not completely thought out or missing. They will have building system coordination issues as well as a tremendous amount of ambiguity. Uncertainty in an architect's drawings will provoke builders and subcontractors to submit very high bid estimates to compensate for the confusion and unresolved issues. These ambiguities will eventually need to be resolved during the construction phase. Addressing an abundance of questions during this phase will seriously slow down construction and add even more cost to the project. In the end, the client will pay substantial amounts of additional money to the builder and architect, for issues that should have been resolved during the design phases.

So what’s the difference between a $15,000 set of drawings and $30,000 set? Tens of thousands of dollars in additional construction costs, prolonged project schedules, unnecessary paperwork, threats of legal action, a 'crappier' finished project, and a ton of ‘brain-damage”. The value of an architect is an investment, not a cost. Good architects are worth their fees. They will produce high quality drawings free of excessive ambiguity and exercise a high competence in constructibility procedures. 

Architects Provide Client Assurance and Insurance

Spending the money on an expereinced architect can prevent ugly details and labor inefficiencies like this poorly installed soilder brick course over an opening. For instance, the very slender pieces of brick above the slanted ones each had to be individually cut which translates to higher labor costs. Not to mention, it just doesn't look good. This could have easily been prevented with a properly dimensioned opening in the wall.

Once the documents required to build a project are completed, the client enters into a contractual agreement with a builder who agrees to build it for a set price. Most clients of architectural services are not familiar with the intricacies of constructing a building. Contractors have an unfair advantage in this regard. They have the ability to deviate from the design instructions, to cut corners, to slack on craftsmanship, and to substitute specified products and materials for cheaper ones of lesser quality. This is done ‘secretly’ with the sole interest of reducing a builder’s costs, overhead, and construction time to make more profit. The client is usually left with a building of lesser quality than the one paid for. This is the source of many people’s fears when it comes to construction and renovation.

Architects provide insurance and assurance to clients that their projects will be built according to the drawings, specifications, and other contractual documents. In dealings with contractors, architects are the legal agents representing the client in all matters of construction. Architects will execute certain duties like visit job sites to evaluate the progress of construction, make field notes, communicate progress to the client, resolve design issues on site, review construction submittals, control payments to the builder, and conduct a final check to insure the project is complete. Most importantly, architects insure that the project is being built the way it is was designed - a design that reflects the client’s desires, personality, and lifestyle. Buildings are huge investments. You should get exactly what you pay for.

Architects bring tremendous value to every stage of making a building filling many roles along the way. But most of all they are an investment that yields financial and sentimental dividends. 

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What is an Architect, Really?

In all honesty it’s a fair question. Of the major professions that require a licensure, architecture is the most unclear. Lawyers. Doctors. Therapists. Engineers. When thinking of these occupations most have a pretty good idea what each does.When thinking of an architect, that’s when things become a bit ambiguous. Begin to think of your own pre-conceived assumptions of what an architect is. Almost certainly it would be either a person who “draws” buildings or a person who “builds” buildings. Both descriptions are equal parts true and incorrect. But I’ll save that argument for later. In any case it’s best we start by detailing what an architect is,...for real.

“Players wanna play/Ballers wanna ball/ Rollers wanna roll/...”

— R.Kelly

The word ‘Architect’ originated in the Greek language as 'Arkhitekton'. Arkhi- meaning ‘chief’ and Tekton meaning ‘builder’, translates to “a chief builder”. The Latin progression of the word, 'Architectus', means “master builder” or a “director of works”. Notice there is no mention of anything relating to drawings. This suggests that architects have ancestral roots in building things rather than drawing them. For millenia this was the universal understanding of an architect’s role in bringing physical form to a society.

The monuments of antiquity were built from a combination of skilled and slave labor. This painting shows skilled Egyptian craftsmen quarrying, shaping, and transporting stones as well as making mud bricks. These ancient tradesmen were some of the first 'architects'.

Ancient monuments were often the visions of rulers and their "master builders". What we would call drawings today, did not exist in the time of the ancients. The masterpieces they left behind are the result of trail and error. Architects in these days were infact builders and coordinators of skilled tradesmen.

Today, architecture can be very difficult to grasp by most people because it is a convoluted and subjective profession. Unlike other professions, architecture is not a precise endeavour. There is never one concise answer. There are always many possibilities. It is an artistic expression, but it is also a scientific investigation. It is practical, but it is also allegorical.

Merriam-Webster defines 'Architect' as “a person who designs buildings and advises in its construction.” But, even this definition is a bit vague. Interpretations like this fuel the stereotype that all architects do is “draw pretty pictures" which could not be further from the truth. The aesthetics of a building are indeed the most enjoyable part of the job. But beauty is just one of many things architects must consider when designing space. It is often subordinate to other matters more functional, economic, sustainable and regulatory.

Design of any kind is the cyclical process used to solve a problem. It consists of two primary streams of thought: Analysis and Execution. Analysis is a cognitive process where information relating to a problem is discovered and collected. Execution is the act of making educated decisions based on the analysis. It is the process of doing and testing possible solutions. In order to refine solution(s), proposals are thrown back into the design loop and analyzed again. The process repeats itself until the designer feels a sufficient solution is reached that satisfies all defined analytical criteria.

The Architectural Design Problem is uniquely complex. Architects apply design methodology to each part of a building’s production, improving one issue at a time. There are many pieces of information that must be gathered before initial solutions can be proposed. The architect’s legal and moral duty to the general public is paramount. A licensed architect has a civil duty to ensure the health, safety and welfare of the general public and building users. This requires architects be knowledgeable and competent in a host of public health and safety restrictions: building codes, fire codes, energy codes, mechanical codes, ADA regulations (American Disabilities Act), FHA laws (Fair Housing Act requirements), sustainability codes and more. Regardless the project, architects are completely responsible for upholding this civic mandate.

One of the first things architects do is try to decipher what a client needs and wants. They question and interview the client, teasing out all important project requirements turning them into design guidelines. Then the analysis continues. In addition to life safety issues, architects must know private property and zoning statutes. Depending on the area the architect will often deal with special regions like historic districts which apply even more design constraints. Gathering information on surrounding ecology, climate, infrastructure and utilities is also an important task for the architect. This information will influence how a building fits and functions on a site. The architect is an estimator, economist, and time manager making sure projects can be built within budget & schedule. After all pertinent information is uncovered, design solutions of space and visual beauty can finally be proposed. But the aforementioned analysis remains the filters the design must constantly be tested against to produce a successful solution.

Arguably the most significant role of an architect during the design process is the task of coordinating consultants, engineers and contractors. Here is where the architect’s unique training is invaluable and irreplaceable. Why is it the architect’s job to coordinate and organize the work of other competent professionals? Because these are specialized disciplines that focus on one aspect of the whole work. Structural engineers concentrate on structural matters. Civil engineers are concerned with infrastructural matters. And so on and so forth. Their training is extremely valuable but one-dimensional. They are by definition “specialists”.

Note that this diagram is assuming a standard formal education and expereince as a baseline for criteria and is not relfective of the certain nuances that obviously exist between these disciplines. 

The role of the architect is not that of a specialist. Their training consists of all the previously mentioned disciplines and more. They are trained to foresee the entire system rather than one individual part. This makes the architect better equipped to lead the development of the entire project. Architects coordinate all the separate building sciences into a comprehensive whole, directing how the disparate parts visually and physically fit into space. Space. This word gets to the real essence of architecture. The ability to visualize and think spatially is a trait deeply embedded in the psyche of an architect. Architects ‘create’ and move space around - as if it could be grasped - to accommodate all the different restraints and components associated with producing a building. Architects do all this while simultaneously crafting the subjectively aesthetic style and look of a building. This sort of spatial “wizardry” along with a multi-disciplinary training is what distinguishes architects from other designers, professionals and construction occupations.

So what is an architect you say? An architect is a generalist; aploymath; a “jack of all trades” so to speak. Architects are concerned with the artistry of a building, but also the science of a building. Architects are coordinators and orchestrators. Architects are creators. Architects have an innate ability to manifest buildings and spaces in the mind as concepts and metaphors first. Through the process of design these concepts become reality. Architects are leaders, galvanizing many entities to achieve a single goal.

Think of the architect as Doctor Richard Weber, from the TV drama, Grey’s Anatomy. Dr. Weber, is a general surgeon. That means he is very proficient in a variety of surgical procedures across many surgical fields. He can effectively participate in cardiological surgeries, neurological surgeries, cosmetic, trauma and orthopedic surgeries as well. This makes him extremely valuable to the surgical team and the hospital. It makes him indispensable. Which is why Dr.Weber is(was) the Chief of Surgery for the entire hospital. It is Dr. Weber’s duty to be concerned with all fields of surgery in order to ensure that the hospital as a whole thrives and succeeds. What better person to lead a comprehensive surgical program than the person who is most knowledgeable in all forms of surgical thought and procedure.

In the same way Dr. Weber directs the complex workings of a hospital, so too does an architect direct the vast complexities associated with designing, constructing and maintaining a building.

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How to Properly Manage Your Property

One of the largest obstacles comtemporary home owners face is how to successfully operate and manage their property. There are many cost factors to be aware of besides your mortgage payment. Determining what these costs are is a crucial component in positioning yourself to budget property expenses properly and potentially build some equity.

Less than 100 years ago, estate management was more commonplace. For the modern homeowner, this may be a mysterious task. The millennial generation has been significantly slower to own, purchasing property much later than previous generations. There are many reasons for this, chief among them being ownership of extremely high college debt and having to live through a recession. But now confidence in property ownership is back on the rise for the world’s largest and wealthiest generation. In order to see proper returns on that investment coupled with equity growth, it is imperative that new property owners possess the knowledge to properly manage their asset. Here is a list of the principal operating and management cost factors to budget for. This is by no means meant to be comprehensive. Factors will vary from place to place.

• Utilities - Utilities are building services that power and sanitize your property. Typically utilities are billed from a service provider to the property owner, reoccurring monthly. They can be expected to show up every month for the duration of ownership. Common utility services include water, electricity, gas, cable/fiber-optic, telecom, internet, security system, storm sewer fees, and other specialty services.

• Land Management & Maintenance - These are costs associated with the upkeep of property grounds: services like lawn care, snow removal, tree/shrub pruning, landscaping & gardening, and others. These costs are often overlooked. There are those property owners who assume responsibility for these tasks and don’t do them or those that hire a grounds service without keeping track of the monthly cost. Regardless, grounds maintenance should be budgeted for. At the very least a monthly lawn care/snow removal should be assumed.

• Building Repair & Maintenance - Sooner or later something inside your property will need to be repaired or replaced: the boiler, furnace, roof, leaky pipe, broken window, and the list goes on. The question is when? That, we cannot know. Building repair and maintenance is not a monthly recurring cost but it will need to be budgeted for in preparation for the day. Common practice is to put aside a little cash every month. Some stash away the annual equivalent of 1% of the property purchase price ( [purchase price x 1%] ÷ 12 months = monthly repair budget). Others try to save the annual equivalent of whatever $1 per square foot of property amounts to ( [property area x $1] ÷ 12 months = monthly repair budget ). Choosing a number that falls in between these two figures is probably your best guess. And, remember older buildings will require more maintenance. So plan accordingly.

• Property/Homeowner's Insurance - This is insurance specific to home/property owners and is typically paid for in a monthly reoccurring fee. It covers losses and damages to an individual's home or other types of private property. It also covers accidents that happen on the property protecting your investment against things like fire, "Acts of God", break-ins, and bodily injuries. Because there are a lot of insurance products in the market, be sure to shop around for the best value.

• Property Taxes - This is a percentage tax levied on the value of the property and is a major source of income for the governing bodies that collect them helping to pay for services like transportation, trash removal, education, parks, and more. In the U.S. property taxes are calculated by a millage rate determined every year by the various governing bodies. That mill rate is multiplied by the taxable value of the assessed value of your house or property. The basic equation goes like this… Annual taxes due = [ mil rate x ( taxable value = assessed value x assessment rate)]. Tax breaks should they apply are usually included in the assessed rate as a lowered percentage. In Detroit for 2016, the total millage rate was 70.09 mills or 7.09%. Millage rates vary widely across the U.S.

• HOA Fees (Homeowner's Association Fees) - These are costs uniquely associated with condominiums or planned communities of condos. The fee is assessed based on property size and rates can vary widely, depending on the by laws of the HOA organization.

Add these costs to your monthly mortgage payments to get the operating and maintenance cost of your property. Rates typical change every year, so you will have to adjust this number annually. Operating costs are a critical component in determining the true equity you have gained or lost in a project. EQUITY = Assets ( Mortgage Payments +/- land/property value) - Liabilities (Capital Costs + Operation Costs + Maintenance Costs).

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How to Finance Your Construction Project

You've Been Pre-Approved

There are a few things you should do before buying property. First, start saving for a down payment. A typical down payment for a traditional mortgage or construction loan is 20%. However, there are financial products that require as low as 3% down in exchange for higher monthly payments. Bottom line? Just start saving. The more you put down the less expensive your borrowing will be.

Second -  get pre-approved for a loan. This means some financial institution has checked your credit & assets, and already pre-approved you for a certain loan amount. Sellers are typically more motivated to deal with those who have been pre-approved. It shows capability to make the transaction.

Feasibility Study (Possibility Package)

Next, you should begin looking for property if you haven’t already. Before purchasing land to build on you will need to collect the pertinent zoning and environmental information for each property. This will help you determine which sites are right for you and which ones will let you build what you want. This research and analysis is more commonly called a feasibility study and can be provided by most architects - usually at an extremely high expense. Fabric[K] Design has developed two products to make this service more robust, accessible, and cost effective for everyday hardworking people. Our Zoning and Possibility Packages are products that gather all the important regulatory information for you and help explore the possibilities of your potential project through schematic visuals. We also include other important data like a broad neighborhood analysis, all to guide you in choosing the right property for your project. 

Land Is King

Once you find the right property and you like the neighborhood it’s in, find a realtor and make an offer. Real estate climates can be very unpredictable. You may have to cycle through this process a few times if someone beats you to the punch or makes a better offer. The key is to find a focus area or neighborhood that really resonates with you so that you can concentrate your efforts and research.  

Design It or Buy It

Now, the design process really begins. You have two main options here. The first and most common route for individuals building a new home or similar residential product is to buy a plan set. Plan sets are pre-designed drawings of buildings that you can purchase turn-key ready. Find an architect or plan set provider, purchase the design you like and take the documents to a contractor. Depending on the set a licensed builder will be able to estimate, pull permits and build the building from these documents. Regulations vary from place to place, so there maybe some extra engineering and certification which can be handled by any licensed contractor. Plan sets are the most common way that people design their homes because it saves them time and money. The other route you can take is to have an architect design a custom building solution for you. This process takes more money and time. But the client also gets more value and service from the architect in return, not to mention a completely unique building.

Apply For Your Construction Loan

While the home is being designed or you’re choosing your plan set, you should be applying for a construction loan (unless you’ve got fat pockets). There are two main construction loan types. A Construction to Permanent Loan is two loans in one. Once approved you borrow from a line of credit to pay for construction. When the building is complete, you’ll receive a Certificate of Occupancy and the lender will then convert the construction debt into a standard permanent mortgage. Some benefits to this type of loan product are lower fees, options for 15 or 30 year paybacks, and interest is paid only during construction. A down side is that you will most likely have to put down 20%. The second is a Stand Alone Construction Loan which consists of two separate loans. One pays for construction and the other is a mortgage that pays off the cost of construction. This option is good for those with low cash flow, poor credit and the need for a lower down payment. A downside is that you pay two sets of closing costs & fees. Talk to you local lenders to determine the best option for you.

Build It

The contractor you choose will be determined by the financing product you choose. Most federal and state funded products require you to choose from a list of pre-approved contractors. If you use a private product then you (and your architect) have the liberty to choose which ever builder you’d like. Most basic architectural services will provide assistance in choosing a builder. Construction schedule for the building depends on many factors - size, complexity, weather. etc. - but as a general rule construction time for a house (building with 1-4 units inside) or small commercial building will take anywhere from 9 months to a year.

Enjoy

When the building is complete it will get inspected. If everything checks out, the inspector will give you a Certificate of Occupancy. At this point, the only thing you have to do now is move in and enjoy your newly built building.

DO YOU NEED HELP FIGURING OUT IF A CERTAIN PROPERTY IS WORTH INVESTING IN? ARE YOUR CURIOUS ABOUT A POTENTIAL DESIGN PROJECT in your neighborhood? OUR ZONING AND POSSIBILITY PACKAGES CAN HELP. LEARN MORE!