Hi my name is John Chute I live in Boston ma. I am a carpenter. I cannot express in words how truly grateful I am for your series and how much positive influence you guys have had in my life in so many different ways. Thank you very very much
Scott, I have only ever wanted to do one other thing for a “job;” I am a certified Chef and my goal was to build and open my own restaurant, but I found myself severely burned out of running restaurants while I was in high school studying culinary arts. My ultimate goal was to be a Chef as my main work and a Carpenter/Woodworker as my side or secondary work. Since I started my Carpentry business in 1980 I have never sought to “find a way out.” I thoroughly enjoy crafting something beautiful with my hands, whether it’s remodeling an 1800s Queen Anne Victorian to a Second Empire or Cape Cod, crafting a custom piece of furniture for a client or supervising the building of a second and third hospital wing. Each of these segments of knowing that something that I laid my hands upon is going to be a dwelling or kitchen table or a place to help thousands of people for many, many years. It is very gratifying! I have never borne debt with my company. Being in debt has never made sense to me. I paid cash for materials, etc., and I have only ever bought three new vehicles in my life. Those were the three biggest and stupidest purchases I have ever made. I pay cash for my vehicles, tools, etc., that way I keep much more profit in my pocket. When I started out with my uncle at ten years old, I used his tools when working along side him. At twelve I received my very own “Carpenter’s hammer” for My twelfth birthday; an Estwing, Leather stacked handle, 20 oz. straight claw. It was the hammer I had been eyeing for a year and a half, I still have it to this day and use it for most finish/trim work. At twelve I began to add a tool per job - as money allowed me - into my Carpenter’s grip. I have continued this practice to this very day. If a tool is-starting to become worn I prepare to add a replacement or if it breaks I add a new one now. This method has served me well over the years. I also take great care of my tools and equipment. I have one-third of what I had back when I was doing this for a living, now I take smaller jobs, and I’m concentrating more on woodworking projects. Money, money and more money was never my provenir. While I made enough for what I needed, I have never been driven by the ‘all-mighty buck!’ This has kept me sane, stress-free, healthy and sane! I truly wish more people would quit being so money-driven and enjoy 1. Their life, 2. Time spent with their family and 3. What they do “for a living,” Quit living for the $$ and putting everything else second, third or fourth. We only have one life; we don’t get a second chance.
Biggest skill I've learnt is being able to pick a timewaster customer, *before* you offer your services. One that just wants free advice. One that wants your service below market rates or below cost. One that will haggle after the service has been delivered. One that frustrates you more than the income gained. One that will pay the invoice late or not at all. They might only be 5% of your customers, but will consume 25% of your time. 'I love the public, I just can't stand the people.'
Here is another big skill...Matt 123 Interviewing a contractor who wants to convince you his way is the only way. Interviewing a contractor who just meant you, but talks to you like you know nothing about the subject. Interviewing a contractor who arrives in a vehicle that is big enough to haul away both of your vehicles. Interviewing a contractor who hems and haws when trying to nail down a project schedule. Interviewing a contractor who refuses to discuss how the quoted price was reached. ( the response is usually... "you get what you pay for." ) Interviewing an empty chair when contractors never show, never return a call or apologize for being late for an appointment. Interviewing contractors who lack business acumen, personal hygiene or basic manners. Interviewing "pick-up truck" contractors. ( They never perform the work, just hire subcontractors for every thing.) I love the trades...just can't stand the modern day "tradesman".
Speaking electrically, every contractor I knew that was successful for the first 10 years worked 7 days a week with a minimum 12 hour workday. Personally, I much preferred to work for wages, I had a comfortable lifestyle, a roof over my head, food on the table and no bill collectors knocking on the door. And, I had my weekends off (pretty much) what I worked I got paid for. Contracting takes a single minded person with a lot of drive and a willingness to sacrifice just about everything. They are braver people than I am.
Scott - really appreciated your comments. As an owner of a Plumbing & Heating Service Contracting business I realized a long time ago that my main job is running the business. I've had a couple of plumbers leave to start their own thing. One went broke - one seems to be managing. But he's doing it all including working on the tools. With soon to be 7 service vans I can't afford to be on the tools. The key to going out on your own and owning a business is that the most important job is running the business not just installing that furnace or roughing-in the water lines in a new build. One man businesses or professional service Companies are okay - but understand that you're paying with time for the extra money and extra freedom of working for yourself.
You really should have kept this all on the same channel. I've been watching for years and didn't know you had this podcast. Great content as always. I think if you marketed this pod more you would get way more listeners.
A big thanks to you both for imparting your wisdom to us all that take the time to listen and watch. Not only are these videos full of amazing tips and tricks in the building trades that I take with me in my tool pouch on a daily basis as a renovation carpenter, they are also so filled with hope. And we all need that!!
Big fan of you guys. Just wanted to share my experiences. I’m 26, grew up in a logging family from Washington. 4 years ago I decided I wanted to be self employed and live in Alaska. So I bailed on logging, got a high paying job laying pipe, saved $10k, and moved. 3 years later I own my own dump truck outright, have no bills other than rent. And life is good. If you’re really wanting to be self employed, the hardest part is the first step! Quit financing and buying things you do not need.
This discussion Scott and Nate have is relevant to so many creative endeavours. As a commercial artist, working on one’s own spec work is exciting and invigorating, but commissioned or wage work pays the bills to support one’s family. A slick combination of both spec and wage work has been for me a true blessing. I love these guys, their “spec” RUclips videos are an educational pleasure. Keep up the good work.
we at the trades are all held hostage to bankers ,insurance,building dept.,owners,owners friends superintendents zoning dept ect . if the average home owner had to get a permit every time he mowed his lawn there would be an uprising. under the guise of [peoples saftey] we have all these hurdeles in our way. mechanics with no oversight work on cars that can go 70 + mph and more people die in cars than anything else . homes are seen as a cash cow for all these entitees that add little to any real value to projects
When I started my business 30 years ago my older brother who ended up a millionaire gave me a piece of advice that served me well during the 20 years I operated my business. That advice was to watch and avoid the costs of fixed assets. That is to say if you have a 25 year mortgage on premises and an office then that is an overhead you have regardless of if you are actually making enough to pay for it. Your comment on cars also applies, unless you are a taxi driver they don't earn you any money so watch what they cost you, especially if financed by a loan.
I think that one of the really underrated issues or untalked about issues in achieving business, well, life success, is family drama. If there is constant turmoil at home all the challenges and hardships of work and business are magnified to the overwhelming point.
Man, there is so much information here that is just impossible to find elsewhere. Your experience and knowledge in this field is invaluable. Thanks so much for putting these together to share that knowledge!
First time spec builder here! Building in Ventura County, Southern California. These videos and the ones of you building your spec home have been very helpful. Ive got my 120' retaining wall in and almost ready to break ground on the foundation. Thanks!
we had 7 kids i worked as a trim carpenter[ sub mostly]. many people were shocked when i would tell them this. built own home [mostly stayed out of debt]did almost all the trades myself . i would look over a lot of peoples shoulders of trades thru years ,
What you're doing with the spec house and other content is brave, generous, and admirable. Even though I am Scott's age, when he speaks I hear my now deceased father in my head. He also had mad shop skills. Thank you for your contributions to, and respect for, the tradesmen of the world. I await each contribution you both make to all of us out here. BTW, I hope you make a ton of money on the spec house. It is well thought out and put together by a true craftsman. Stay safe out there. Cheers
What a great video! I run a two man electrical shop and your advice is so spot on in this video it's amazing. Thanks for doing what you guys do. I love your channel
As someone who's watched many of your presentations in this series and also as the son of a builder of at least 50yrs., this conversation has a loud ring of truth to me.
If there was ever a mislabeled video this would be it. There is so much good information for aspiring people it's almost ridiculous. Most of the advice and lessons related are more like life coaching. Very real and very true. The number of successes and failures I've seen over the years in people was spinning through my mind like a pinwheel in a hurricane. Very relatable. Thanks for sharing
I am an older guy who has been in construction most of my life. Even during college I funded much of the cost by working construction. Over the years, I have been a painter, a wallpaper hanger, a carpenter (starting as a helper), I have even done roofing, plumbing and some some electrical work. I have multiple degrees as well. I have taught and even been an investment banker. I say all this because even though I could make a pretty good living as a carpenter, I was always looking for something better or easier, or even more socially acceptable. In the end I have discovered that I perfer to build houses to any job I have ever had. So to the young guys out there, being in the trades is the best job you can have. It is far more rewarding than just about anything I have ever done. Embrace it, submerge yourself in it. Learn from the old guys--not the bitter old farts, but guys like these, who have learned over time how to balance life and work.
I think the biggest trap people get into in their personal finances are credit cards. The sooner a young person learns that ‘credit cards are evil’, the sooner they’ll be on their way to financial freedom and then success. They are a necessary evil in today’s world AND you can turn the tables on them and make them work FOR you. But only if you pay them, in full, every month. So many people get tangled up on the wrong side of that compounded interest and it can become almost impossible to get out from under. The other thing I’ve found that people have a hard time learning, is to live within their means. When the day finally came when I earned that substantial raise, instead of going out and buying that new truck I’d had my eye on, I just continued to maintain the same, comfortable enough, lifestyle I had become accustomed too and all the additional income went into savings. The single best career move I ever made. The savings begins to add up quickly and then itself, becomes the motivational factor to stay the course. Very much in line with the patience aspect you referred to.
@psid....couldn't agree with you more! Banks have one and only one product for sale and that is debt. And once they lure you into debt, you are now a slave. The whole idea of the 'great american dream' was just a marketing ploy by the banksters to enslave an entire nation. If you have to borrow in order to purchase something, you need to wake up and smell the slime because you flat out cannot afford it. Freedom means no debt. I am debt free. I work for myself, pay my bills, put money back into my business and pay myself. My partner on the other hand, works his butt off and gives most of it directly to the banks, a great deal of which is to just pay interest. Free money to the banks. He is their slave.
This is exactly how I live my life. I fell into the trap of going to college and taking out loans to he able to pay for them and quickly found myself unable to find something in my field of study after graduation. Three years of 70 - 80 hour weeks later I paid them off in full, thanks to doing whatever trade work that I could get my hands on. The only debt I have now is for a small apartment that I plan on paying off in 6 years so that I am 100% free to do as I want.
I agree. I've used credit cards for most purchases since age 16. I don't write checks that can't be immediately cashed, and I don't use credit for anything I don't have funds ready for. I've used credit cards to pay hundreds of thousands of dollars over the years, and they've never been a burden, only a convenience. Compounding interest is a dark art.
Yup. Everybody overcomes every setback all the time. No reason the government shouldn't fuck with people's lives like this whenever they want. No reason to object when they shut us down over -global wa- climate change or when they take half our paycheck, because we'll always be fine.
goll'dang it that was fun. you guys are going full blast americana and everyone loves you for it. fresh honesty and olde timey wisdoms. there's nothin' better. goll'darnit. some kind of genius at work here-like nate said, "lightnin' in a bottle"
After spending 5 months in the hospital I reevaluated my goals and lifestyle. I reorganized my needs, cuts my wants and started setting back small amounts of money. Later when a crisis occurred I put that money in a CD and used it as collateral for a loan. I also was stashing 50 dollars a month in something similar to a 401k. Working that way allowed me to build ( builder did the work) on 10 acres away from town. That allowed me to retire with about 55% of our best income years in 2014 and escape that ratrace. My advice to young people is to put that 50 dollars a month where you cant touch it. Take advantage of any retirement options where they work. Reassess their life goals and cut back today. My retirement and social security provide me with what I need and some extras. Dont let a catastrophic illness wake you up like it did me. They can do the same by hearing and understanding what you just explained. The freedom gained is well worth the cuts.
Love your show and I learn a lot I'm Contractor too and past few years got a lot of work but not making any profit cause so many overhead. Since I cut back overhead after I while making good money. Its about how do handle a employee. Again for the tip appreciated.
I love the essential craftsman videos! That man has forgotten more than I will ever know. I hope his family realizes and appreciates what a wise humble man he is. I wish I could have been mentored by him.
Thank you for admitting thats it's hard to get a construction loan I am FINNALLY signing on mine tomorrow it has taken about twice as long to get than I thought it should and has put me a month behind what I had scheduled to be framing my house , but now I was able to build my shop and pour my foundation for house with profit from previous home, ANYWAY thanks Scott for the comfort in you saying it IS hard to get a construction loan with a bank with just on the job experience in construction..
I live and work in central CA as a second generation general contractor, in partnership with my brother. My dad and his brother started our small family business back in the early 70s, and we've been in the same smallish town the whole time, banking with the same bank. They came through on two construction loans for me personally as I built two homes for my own family for us to live in. 2014 and and again in 2019. I say this because it wasn't too hard (lots of paperwork, of course) to secure the construction loans, but I attribute this to the value of a stable reputation, and a relationship with the bank over decades.
That's way easier to say being in a small town, longtime bank relationship for decades. LOL. Most people trying to build and sell don't have 10, 20, 30 years of relationship with a bank nor a small town one at that. I think you missed the point made in the video of folks currently who's young, ambitious and just getting started.
I do windows almost as a career at this point, and I've met people who call me the "easy work guy", I dare anyone to work with me 1 day, but i appreciate and love your videos and i hope you and your viewers know my window experience involves roofing framing siding etc. Etc
Please explain what you meant by “the emotional cost of the channel.” I found that interesting, and probably something most viewers do not consider or understand.
Thanks so much for the work you've put into the house and into this channel. I'm just starting to venture out on my own (with a wife and now a baby on the way) -- and it's terrifying -- but knowing that it CAN be done is immensely encouraging, especially when a lot of the practices you commend are things I'm already doing.
Timely advise towards the end... For everybody, cash equals freedom, cash equals choices.... And most of all cash mitigates stress and that will extend all of our lives... Monster quote of the video.... “if you have to have a vehicle payment, you probably can’t afford it...” Bingo!
Ill tell you what im in Eugene and am looking to get a loan to buy my first house and i wish i could buy that house its amazingly beautiful and the house i wish to build one day. Love your channel and all the insight you guys are great i wish my dad and i got along like this!
Good talk, the saving money for my freedom comment is really making me think. I've heard it plenty of times before, maybe the status of the world has opened my eyes or something not sure but it its a little different this time.
Great talk guys, its advice that could have been useful a few years ago for me. Making mistakes while youre young often develops wisdom though, but it can sure be painful! Keep up the good work.
Steve Houde's an amazing carpenter, and a great person! It wasn't until I started building houses with a crew that I appreciated what he can do by himself. And Ace.
Καλησπέρα σε παρακολουθώ εδώ και ένα χρόνο και θέλω να σου εκφράσω τον θαυμασμό μου σε σένα γιατί είσαι ένας μαχητής τις ζωής καλός άνθρωπος, οικογενειαρχης, και πατριώτης σου εύχομαι καλή συνέχεια (God bless you) Keep an goen
Scott and Nate, If you hadn't bitten off more than you could chew you wouldn't have some great teaching moments in the details. Which was yhe driving concept from the beginning. Keep up the great work Jeff
We built a new home a few years ago and I cannot tell you how many times I said a new 4 door jacked-up 4x4 loaded to the max pickup would make this much easier !!!!
Interesting viewing this through UK eyes... you would have no problem ever shifting a spec house over here, there is so much demand and so little supply of housing. And the local planning board make sure you build something that fits in with the area from a style/taste perspective, so you don’t have to worry about that aspect. I hope one day you get to travel to the UK, I think you’d like it.
No matter how much you enjoy something, you'll always have days you'll wish you were doing something else. As soon as you have to do the thing you love, making a change becomes difficult and almost always comes with a big cost.
One of the best words of wisdom given to me was - Do not invest in depreciating assets. Case and point; a $70k camper and a $50k truck to pull it with. Also figure out how much your vehicle costs you per mile. Loan + Insurance + gas and maintenance x the miles you drive in a month. That can add up to an expensive drive to work everyday!
I've got a few things to mention about those who build a spec house and for those developers who build tract homes. They tend to provide only the minimum quality and functional materials such as garbage disposals, exhaust fans over the stove (recirculated air, really?) and in the bathrooms, minimal free standing ranges, cabinetry that doesn't meet up with a soffit, limited utility rooms and of course the big item we rarely see is a garage that is unattached and in the back yard vs. on the sidewalk attached. Most garages are too small, have no cabinets, no sink, no water etc. We could all agree that most garages are stuffed full and the vehicles are usually parked outside in the driveway. Garages are being used much more than they even have in the past which suggests the builders are not keeping up with the times in functional things. Also, vaulted ceilings? Two stories? No basements? Just how do we decide what is energy efficient about vaulted ceilings and two story homes? Other considerations are appliances and type of energy used such as gas or electric. HVAC systems, heat pump, gas cooling and heating or electric? We have purchased a few new homes and find they are not of much value for the asking price due to, no yards, no walls or fences, no window coverings, minimum considerations for exterior lighting such as flood lights, electrical receptacles exterior and interior, gas lines for the patios and in the right location, lighting for patios, covered patios, roof eaves and trim to accent the stucco and choices in windows. Some will also agree that stainless steel sinks, self rimming sinks, stainless and or black appliances are has beens and getting to be dated decore. It appears that the main focus with builders and developers today are about maximum margin or profit vs. building a reputation in construction. Sad.
10:10 capital gains rates are now 15%. Speculators should realize that the rule you speak of only applies if you live in the house 2 of the last 5 years which can be difficult for some people. In addition the last tax overhaul essentially eliminated anyone's ability to take taxes and interest as a deduction personally. This means that to take most deductions you have to do it as a business activity i.e. rent the house which makes it much more difficult to live in it for 2 years. Basically the answer is to house hack which can be daunting for some. Thank you EC for all you do. Really appreciate it
A little bit scattershot but the message was still clear in many ways. I'd like you folks to review and analyze this and then distill it into a linear and concise message for all those young contractors who want to expand
"The population of each family would be one child". So true. But then in our case we got twins, and the hard parts were memorable enough that there is no way we're adding any more to the family.
I sure hope that this might help somebody....I always lived with the idea that I must pay all my debts first before I could use any of the money I had earned. This idea brought decades of hurt and difficulties and no progress. Here is the right way...….pay YOURSELF FIRST, by saving something, no matter how little. Then pay your debtors.
if you live in a shitty neighbor Hood, because you can't "afford" a house, and all your tools get stolen then you are even further in the hole. I have roughly 6,000$ in equipment in my vehicle . There is no perfect solution
I am nearing the end of my own construction project in Maine. Construction loan was not difficult to obtain, which was helped by good credit credit scores. The lender sends out an inspector as monetary quarter marks hit. There are some requirements and the interest is higher during the construction phase before rolling into a mortgage.
Hey guys, love the podcast! I'm a young engineer who enjoys getting his hands dirty. My wife and I are on this journey right now, so it's fun to hear you talk about! We purchased a small house on a large flat lot. I'm currently drafting an addition which will roughly double the size of our home. We have saved enough to cash flow the building materials and buy my freedom for a 3-4 months to do the framing and (hopefully) get dried in. You are right it takes a lot of work to get to this point. Perhaps building is a good side job for an engineer :) I have family in the trades who can help as needed, and I've learned so much from watching Essential Craftsman (and others). So thank you for providing all of this knowledge.
Thank you for the great program. I have been a faithful fan since I stumbled upon your video about using a 2x4 for a jack maybe two years ago? I was watching a program recently and my wife said, "That guy has a great speaking voice and sounds really professional." You two do a great job making your program look and sound professional. As an avid dyi'er thanks for the great content and professionalism. God speed and let's keep on working through this Covid situation.
About the hamsterwheel, best advise I ever got was to put money aside every month, doesn’t have to be much, but start today. Look up compound investing if it doesn’t make sense to you.
Living within your means and saving money is good advise everyone should follow. The money comes in handy when an opportunity knocks. It takes money to make money. Also, the savings cushion is nice when a pandemic hits and you find yourself suddenly out of work. Not worrying about your next rent or a mortgage payment can save you a lot of stress.
Hi my name is John Chute I live in Boston ma. I am a carpenter. I cannot express in words how truly grateful I am for your series and how much positive influence you guys have had in my life in so many different ways. Thank you very very much
This man influenced me to join local 30 carpenters union in Seattle
Scott, I have only ever wanted to do one other thing for a “job;” I am a certified Chef and my goal was to build and open my own restaurant, but I found myself severely burned out of running restaurants while I was in high school studying culinary arts.
My ultimate goal was to be a Chef as my main work and a Carpenter/Woodworker as my side or secondary work.
Since I started my Carpentry business in 1980 I have never sought to “find a way out.” I thoroughly enjoy crafting something beautiful with my hands, whether it’s remodeling an 1800s Queen Anne Victorian to a Second Empire or Cape Cod, crafting a custom piece of furniture for a client or supervising the building of a second and third hospital wing. Each of these segments of knowing that something that I laid my hands upon is going to be a dwelling or kitchen table or a place to help thousands of people for many, many years. It is very gratifying!
I have never borne debt with my company. Being in debt has never made sense to me. I paid cash for materials, etc., and I have only ever bought three new vehicles in my life. Those were the three biggest and stupidest purchases I have ever made. I pay cash for my vehicles, tools, etc., that way I keep much more profit in my pocket.
When I started out with my uncle at ten years old, I used his tools when working along side him. At twelve I received my very own “Carpenter’s hammer” for
My twelfth birthday; an Estwing, Leather stacked handle, 20 oz. straight claw. It was the hammer I had been eyeing for a year and a half, I still have it to this day and use it for most finish/trim work.
At twelve I began to add a tool per job - as money allowed me - into my Carpenter’s grip. I have continued this practice to this very day. If a tool is-starting to become worn I prepare to add a replacement or if it breaks I add a new one now. This method has served me well over the years.
I also take great care of my tools and equipment. I have one-third of what I had back when I was doing this for a living, now I take smaller jobs, and I’m concentrating more on woodworking projects.
Money, money and more money was never my provenir. While I made enough for what I needed, I have never been driven by the ‘all-mighty buck!’ This has kept me sane, stress-free, healthy and sane!
I truly wish more people would quit being so money-driven and enjoy 1. Their life, 2. Time spent with their family and 3. What they do “for a living,” Quit living for the $$ and putting everything else second, third or fourth. We only have one life; we don’t get a second chance.
Biggest skill I've learnt is being able to pick a timewaster customer, *before* you offer your services.
One that just wants free advice.
One that wants your service below market rates or below cost.
One that will haggle after the service has been delivered.
One that frustrates you more than the income gained.
One that will pay the invoice late or not at all.
They might only be 5% of your customers, but will consume 25% of your time.
'I love the public, I just can't stand the people.'
333223223333336tyg! but333
Here is another big skill...Matt 123
Interviewing a contractor who wants to convince you his way is the only way.
Interviewing a contractor who just meant you, but talks to you like you know nothing about the subject.
Interviewing a contractor who arrives in a vehicle that is big enough to haul away both of your vehicles.
Interviewing a contractor who hems and haws when trying to nail down a project schedule.
Interviewing a contractor who refuses to discuss how the quoted price was reached. ( the response is usually... "you get what you pay for." )
Interviewing an empty chair when contractors never show, never return a call or apologize for being late for an appointment.
Interviewing contractors who lack business acumen, personal hygiene or basic manners.
Interviewing "pick-up truck" contractors. ( They never perform the work, just hire subcontractors for every thing.)
I love the trades...just can't stand the modern day "tradesman".
Last statement is right on money Matt.
My favorite is the guy who wants free advice so he can save money and do it himself. Try that with a doctor or lawyer.
Not gonna lie I love free advice. Its why I'm here :)
I'm glad to see Nate comming out of his shell he is a really intelligent guy, I'm trying to say Nate you bring alot to the table
Totally agree!!!
This is one smart, focused family. What a blessing - for them, and us.
marry the guy already.
Nice one Gabe
Speaking electrically, every contractor I knew that was successful for the first 10 years worked 7 days a week with a minimum 12 hour workday. Personally, I much preferred to work for wages, I had a comfortable lifestyle, a roof over my head, food on the table and no bill collectors knocking on the door. And, I had my weekends off (pretty much) what I worked I got paid for. Contracting takes a single minded person with a lot of drive and a willingness to sacrifice just about everything. They are braver people than I am.
Scott - really appreciated your comments. As an owner of a Plumbing & Heating Service Contracting business I realized a long time ago that my main job is running the business. I've had a couple of plumbers leave to start their own thing. One went broke - one seems to be managing. But he's doing it all including working on the tools. With soon to be 7 service vans I can't afford to be on the tools. The key to going out on your own and owning a business is that the most important job is running the business not just installing that furnace or roughing-in the water lines in a new build. One man businesses or professional service Companies are okay - but understand that you're paying with time for the extra money and extra freedom of working for yourself.
You really should have kept this all on the same channel. I've been watching for years and didn't know you had this podcast. Great content as always. I think if you marketed this pod more you would get way more listeners.
A big thanks to you both for imparting your wisdom to us all that take the time to listen and watch. Not only are these videos full of amazing tips and tricks in the building trades that I take with me in my tool pouch on a daily basis as a renovation carpenter, they are also so filled with hope. And we all need that!!
Don't let the title to this video fool you, it's packed with life wisdom from start to finish. This goes way beyond a side hustle. Love you guys.
Cash is king. Took me almost 50 years to figure out that everything is better without debt.
Big fan of you guys. Just wanted to share my experiences. I’m 26, grew up in a logging family from Washington. 4 years ago I decided I wanted to be self employed and live in Alaska. So I bailed on logging, got a high paying job laying pipe, saved $10k, and moved. 3 years later I own my own dump truck outright, have no bills other than rent. And life is good. If you’re really wanting to be self employed, the hardest part is the first step! Quit financing and buying things you do not need.
This discussion Scott and Nate have is relevant to so many creative endeavours. As a commercial artist, working on one’s own spec work is exciting and invigorating, but commissioned or wage work pays the bills to support one’s family. A slick combination of both spec and wage work has been for me a true blessing. I love these guys, their “spec” RUclips videos are an educational pleasure. Keep up the good work.
we at the trades are all held hostage to bankers ,insurance,building dept.,owners,owners friends superintendents zoning dept ect . if the average home owner had to get a permit every time he mowed his lawn there would be an uprising. under the guise of [peoples saftey] we have all these hurdeles in our way. mechanics with no oversight work on cars that can go 70 + mph and more people die in cars than anything else . homes are seen as a cash cow for all these entitees that add little to any real value to projects
Big government. I don't think that was the idea in 1776.
I agree!!!!! well said
When I started my business 30 years ago my older brother who ended up a millionaire gave me a piece of advice that served me well during the 20 years I operated my business. That advice was to watch and avoid the costs of fixed assets. That is to say if you have a 25 year mortgage on premises and an office then that is an overhead you have regardless of if you are actually making enough to pay for it. Your comment on cars also applies, unless you are a taxi driver they don't earn you any money so watch what they cost you, especially if financed by a loan.
Listening to you two talk about money reminded me of Dave Ramsey saying, "Be intentional with your money."
I think that one of the really underrated issues or untalked about issues in achieving business, well, life success, is family drama. If there is constant turmoil at home all the challenges and hardships of work and business are magnified to the overwhelming point.
Man, there is so much information here that is just impossible to find elsewhere. Your experience and knowledge in this field is invaluable. Thanks so much for putting these together to share that knowledge!
First time spec builder here! Building in Ventura County, Southern California. These videos and the ones of you building your spec home have been very helpful. Ive got my 120' retaining wall in and almost ready to break ground on the foundation. Thanks!
we had 7 kids i worked as a trim carpenter[ sub mostly]. many people were shocked when i would tell them this. built own home [mostly stayed out of debt]did almost all the trades myself . i would look over a lot of peoples shoulders of trades thru years ,
I really like the small business aspect of some of these podcasts. More More More!!
What you're doing with the spec house and other content is brave, generous, and admirable. Even though I am Scott's age, when he speaks I hear my now deceased father in my head. He also had mad shop skills. Thank you for your contributions to, and respect for, the tradesmen of the world. I await each contribution you both make to all of us out here. BTW, I hope you make a ton of money on the spec house. It is well thought out and put together by a true craftsman. Stay safe out there. Cheers
The amazing line so far has been tracing Nate's talents over the past few years. It's amazing to see his growth, very inspirational.
Thank you brothers and we will strive to survive. Keep the vids coming. Can’t wait to see the next one.
What a great video! I run a two man electrical shop and your advice is so spot on in this video it's amazing. Thanks for doing what you guys do. I love your channel
Great episode guys! Thanks guys. As a guy who is slowly starting a small remodel business, there's a lot of great things here. Thanks again
As someone who's watched many of your presentations in this series and also as the son of a builder of at least 50yrs., this conversation has a loud ring of truth to me.
If there was ever a mislabeled video this would be it. There is so much good information for aspiring people it's almost ridiculous. Most of the advice and lessons related are more like life coaching. Very real and very true. The number of successes and failures I've seen over the years in people was spinning through my mind like a pinwheel in a hurricane. Very relatable. Thanks for sharing
I am an older guy who has been in construction most of my life. Even during college I funded much of the cost by working construction. Over the years, I have been a painter, a wallpaper hanger, a carpenter (starting as a helper), I have even done roofing, plumbing and some some electrical work. I have multiple degrees as well. I have taught and even been an investment banker. I say all this because even though I could make a pretty good living as a carpenter, I was always looking for something better or easier, or even more socially acceptable. In the end I have discovered that I perfer to build houses to any job I have ever had. So to the young guys out there, being in the trades is the best job you can have. It is far more rewarding than just about anything I have ever done. Embrace it, submerge yourself in it. Learn from the old guys--not the bitter old farts, but guys like these, who have learned over time how to balance life and work.
Thanks for the time and effort spent presenting these important, and often overlooked, subjects.
Thanks guys. Good information.
Be Blessed
Enjoy Elohim!
You have a podcast?! Now I can catch up while working on houses all day. Thanks for all the content and knowledge you put out for all of us!
Thank you for these chats. I bought a place back in 2011 and did an extensive remodel. Hope to do same again soon when the time is right!
I think the biggest trap people get into in their personal finances are credit cards. The sooner a young person learns that ‘credit cards are evil’, the sooner they’ll be on their way to financial freedom and then success. They are a necessary evil in today’s world AND you can turn the tables on them and make them work FOR you. But only if you pay them, in full, every month. So many people get tangled up on the wrong side of that compounded interest and it can become almost impossible to get out from under.
The other thing I’ve found that people have a hard time learning, is to live within their means.
When the day finally came when I earned that substantial raise, instead of going out and buying that new truck I’d had my eye on, I just continued to maintain the same, comfortable enough, lifestyle I had become accustomed too and all the additional income went into savings. The single best career move I ever made. The savings begins to add up quickly and then itself, becomes the motivational factor to stay the course. Very much in line with the patience aspect you referred to.
@psid....couldn't agree with you more! Banks have one and only one product for sale and that is debt. And once they lure you into debt, you are now a slave. The whole idea of the 'great american dream' was just a marketing ploy by the banksters to enslave an entire nation.
If you have to borrow in order to purchase something, you need to wake up and smell the slime because you flat out cannot afford it. Freedom means no debt. I am debt free. I work for myself, pay my bills, put money back into my business and pay myself. My partner on the other hand, works his butt off and gives most of it directly to the banks, a great deal of which is to just pay interest. Free money to the banks. He is their slave.
This is exactly how I live my life. I fell into the trap of going to college and taking out loans to he able to pay for them and quickly found myself unable to find something in my field of study after graduation. Three years of 70 - 80 hour weeks later I paid them off in full, thanks to doing whatever trade work that I could get my hands on. The only debt I have now is for a small apartment that I plan on paying off in 6 years so that I am 100% free to do as I want.
I agree. I've used credit cards for most purchases since age 16. I don't write checks that can't be immediately cashed, and I don't use credit for anything I don't have funds ready for. I've used credit cards to pay hundreds of thousands of dollars over the years, and they've never been a burden, only a convenience. Compounding interest is a dark art.
Love the sentiments at the end - I couldn't agree more.
Yup. Everybody overcomes every setback all the time. No reason the government shouldn't fuck with people's lives like this whenever they want. No reason to object when they shut us down over -global wa- climate change or when they take half our paycheck, because we'll always be fine.
goll'dang it that was fun. you guys are going full blast americana and everyone loves you for it. fresh honesty and olde timey wisdoms. there's nothin' better. goll'darnit. some kind of genius at work here-like nate said, "lightnin' in a bottle"
I rode the hamster wheel for way too long. I finally got smart and got a job with benefits and retirement .
THANK YOU 🙏🏽 both. Great conversation and what gems you have shared.
After spending 5 months in the hospital I reevaluated my goals and lifestyle. I reorganized my needs, cuts my wants and started setting back small amounts of money. Later when a crisis occurred I put that money in a CD and used it as collateral for a loan. I also was stashing 50 dollars a month in something similar to a 401k. Working that way allowed me to build ( builder did the work) on 10 acres away from town. That allowed me to retire with about 55% of our best income years in 2014 and escape that ratrace. My advice to young people is to put that 50 dollars a month where you cant touch it. Take advantage of any retirement options where they work. Reassess their life goals and cut back today. My retirement and social security provide me with what I need and some extras. Dont let a catastrophic illness wake you up like it did me. They can do the same by hearing and understanding what you just explained. The freedom gained is well worth the cuts.
Love your show and I learn a lot I'm Contractor too and past few years got a lot of work but not making any profit cause so many overhead. Since I cut back overhead after I while making good money. Its about how do handle a employee. Again for the tip appreciated.
I love the essential craftsman videos! That man has forgotten more than I will ever know. I hope his family realizes and appreciates what a wise humble man he is. I wish I could have been mentored by him.
You're in luck 😉 he has a RUclips series where he mentors anyone willing to listen 😁...
...but I think you already know that.
(EDITED FOR GRAMMAR)
Great advice guys! Thanks for continuing to put out excellent content!
Thank you for admitting thats it's hard to get a construction loan I am FINNALLY signing on mine tomorrow it has taken about twice as long to get than I thought it should and has put me a month behind what I had scheduled to be framing my house , but now I was able to build my shop and pour my foundation for house with profit from previous home, ANYWAY thanks Scott for the comfort in you saying it IS hard to get a construction loan with a bank with just on the job experience in construction..
I live and work in central CA as a second generation general contractor, in partnership with my brother. My dad and his brother started our small family business back in the early 70s, and we've been in the same smallish town the whole time, banking with the same bank. They came through on two construction loans for me personally as I built two homes for my own family for us to live in. 2014 and and again in 2019. I say this because it wasn't too hard (lots of paperwork, of course) to secure the construction loans, but I attribute this to the value of a stable reputation, and a relationship with the bank over decades.
That's way easier to say being in a small town, longtime bank relationship for decades. LOL. Most people trying to build and sell don't have 10, 20, 30 years of relationship with a bank nor a small town one at that. I think you missed the point made in the video of folks currently who's young, ambitious and just getting started.
Very solid advice. Being realistic is so important!
I do windows almost as a career at this point, and I've met people who call me the "easy work guy", I dare anyone to work with me 1 day, but i appreciate and love your videos and i hope you and your viewers know my window experience involves roofing framing siding etc. Etc
Please explain what you meant by “the emotional cost of the channel.” I found that interesting, and probably something most viewers do not consider or understand.
Thanks so much for the work you've put into the house and into this channel. I'm just starting to venture out on my own (with a wife and now a baby on the way) -- and it's terrifying -- but knowing that it CAN be done is immensely encouraging, especially when a lot of the practices you commend are things I'm already doing.
Timely advise towards the end... For everybody, cash equals freedom, cash equals choices.... And most of all cash mitigates stress and that will extend all of our lives... Monster quote of the video.... “if you have to have a vehicle payment, you probably can’t afford it...” Bingo!
Outstanding advice! Thank you gents.
Ill tell you what im in Eugene and am looking to get a loan to buy my first house and i wish i could buy that house its amazingly beautiful and the house i wish to build one day. Love your channel and all the insight you guys are great i wish my dad and i got along like this!
You guys just get better and better.
All World Construction LLC from SD, got my license a year ago. Appreciate all the tips over the past couple years. My own man now killin it lol
I sure do love listening to y'all talk!
Good talk, the saving money for my freedom comment is really making me think. I've heard it plenty of times before, maybe the status of the world has opened my eyes or something not sure but it its a little different this time.
Great talk guys, its advice that could have been useful a few years ago for me. Making mistakes while youre young often develops wisdom though, but it can sure be painful! Keep up the good work.
Enjoyed the show. Wisdom. Thanks
The audio quality is superb!!!
Steve Houde's an amazing carpenter, and a great person! It wasn't until I started building houses with a crew that I appreciated what he can do by himself. And Ace.
Great advice for this journeyman apprentice. Thank you
Καλησπέρα σε παρακολουθώ εδώ και ένα χρόνο και θέλω να σου εκφράσω τον θαυμασμό μου σε σένα γιατί είσαι ένας μαχητής τις ζωής καλός άνθρωπος, οικογενειαρχης, και πατριώτης σου εύχομαι καλή συνέχεια (God bless you)
Keep an goen
Great discussion. I totally agree with learning to live life so you can save some amount of money.
Scott and Nate,
If you hadn't bitten off more than you could chew you wouldn't have some great teaching moments in the details. Which was yhe driving concept from the beginning.
Keep up the great work
Jeff
Thanks guys. Great to hear some life experience
I recommend the book Profit First to anyone starting a small business or side hustle.
I appreciate your wisdom, immensely....
We built a new home a few years ago and I cannot tell you how many times I said a new 4 door jacked-up 4x4 loaded to the max pickup would make this much easier !!!!
Great subject matter. Keep up the good work!
BTW, "Life is what happens to you while you're busy making other plans." is not a cliche it's a line from John Lennon's song, Beautiful Boy.
I hope you do another spec after this one is done. Maybe do a smaller one with a simpler design and do some videos on the business side and management
Excellent advice all around!
This advice is GOLD!
Scott has a very reassuring voice.
thanks for that last questions there. that's what I wanted to ask him myself
Thanks for sharing and take care. 👍
Thanks guys great advice
Interesting viewing this through UK eyes... you would have no problem ever shifting a spec house over here, there is so much demand and so little supply of housing. And the local planning board make sure you build something that fits in with the area from a style/taste perspective, so you don’t have to worry about that aspect. I hope one day you get to travel to the UK, I think you’d like it.
The Essential Craftsman, the better. Keep it coming!
I appreciate you guys!
Another great video Sir
No matter how much you enjoy something, you'll always have days you'll wish you were doing something else. As soon as you have to do the thing you love, making a change becomes difficult and almost always comes with a big cost.
One of the best words of wisdom given to me was - Do not invest in depreciating assets. Case and point; a $70k camper and a $50k truck to pull it with. Also figure out how much your vehicle costs you per mile. Loan + Insurance + gas and maintenance x the miles you drive in a month. That can add up to an expensive drive to work everyday!
enjoyed the podcast.
By the way the word you were looking for is bookkeeping.
awesome tips man thank you
I've got a few things to mention about those who build a spec house and for those developers who build tract homes. They tend to provide only the minimum quality and functional materials such as garbage disposals, exhaust fans over the stove (recirculated air, really?) and in the bathrooms, minimal free standing ranges, cabinetry that doesn't meet up with a soffit, limited utility rooms and of course the big item we rarely see is a garage that is unattached and in the back yard vs. on the sidewalk attached. Most garages are too small, have no cabinets, no sink, no water etc. We could all agree that most garages are stuffed full and the vehicles are usually parked outside in the driveway. Garages are being used much more than they even have in the past which suggests the builders are not keeping up with the times in functional things. Also, vaulted ceilings? Two stories? No basements? Just how do we decide what is energy efficient about vaulted ceilings and two story homes? Other considerations are appliances and type of energy used such as gas or electric. HVAC systems, heat pump, gas cooling and heating or electric?
We have purchased a few new homes and find they are not of much value for the asking price due to, no yards, no walls or fences, no window coverings, minimum considerations for exterior lighting such as flood lights, electrical receptacles exterior and interior, gas lines for the patios and in the right location, lighting for patios, covered patios, roof eaves and trim to accent the stucco and choices in windows. Some will also agree that stainless steel sinks, self rimming sinks, stainless and or black appliances are has beens and getting to be dated decore. It appears that the main focus with builders and developers today are about maximum margin or profit vs. building a reputation in construction. Sad.
10:10 capital gains rates are now 15%. Speculators should realize that the rule you speak of only applies if you live in the house 2 of the last 5 years which can be difficult for some people. In addition the last tax overhaul essentially eliminated anyone's ability to take taxes and interest as a deduction personally. This means that to take most deductions you have to do it as a business activity i.e. rent the house which makes it much more difficult to live in it for 2 years. Basically the answer is to house hack which can be daunting for some. Thank you EC for all you do. Really appreciate it
Keep up the good work!
Awesome life skills discussion
A little bit scattershot but the message was still clear in many ways. I'd like you folks to review and analyze this and then distill it into a linear and concise message for all those young contractors who want to expand
"The population of each family would be one child".
So true. But then in our case we got twins, and the hard parts were memorable enough that there is no way we're adding any more to the family.
I sure hope that this might help somebody....I always lived with the idea that I must pay all my debts first before I could use any of the money I had earned. This idea brought decades of hurt and difficulties and no progress. Here is the right way...….pay YOURSELF FIRST, by saving something, no matter how little. Then pay your debtors.
A 400 house development on 30 acres. Now that would be a series to watch on how you fit 13 1/3 houses per acre.
If you have a payment on a truck you can’t afford it! Awesome statement and way of thinking. A little Dave Ramsey advice.
could say the same for a house
if you live in a shitty neighbor Hood, because you can't "afford" a house, and all your tools get stolen then you are even further in the hole. I have roughly 6,000$ in equipment in my vehicle . There is no perfect solution
I am nearing the end of my own construction project in Maine. Construction loan was not difficult to obtain, which was helped by good credit credit scores. The lender sends out an inspector as monetary quarter marks hit. There are some requirements and the interest is higher during the construction phase before rolling into a mortgage.
oh shiiit your doing podcasts now?? this is great
Can you guys do a video on sheet metal, gutters, downspouts etc??
Hey guys, love the podcast! I'm a young engineer who enjoys getting his hands dirty.
My wife and I are on this journey right now, so it's fun to hear you talk about! We purchased a small house on a large flat lot. I'm currently drafting an addition which will roughly double the size of our home. We have saved enough to cash flow the building materials and buy my freedom for a 3-4 months to do the framing and (hopefully) get dried in. You are right it takes a lot of work to get to this point.
Perhaps building is a good side job for an engineer :) I have family in the trades who can help as needed, and I've learned so much from watching Essential Craftsman (and others). So thank you for providing all of this knowledge.
Thank you for the great program. I have been a faithful fan since I stumbled upon your video about using a 2x4 for a jack maybe two years ago? I was watching a program recently and my wife said, "That guy has a great speaking voice and sounds really professional."
You two do a great job making your program look and sound professional. As an avid dyi'er thanks for the great content and professionalism. God speed and let's keep on working through this Covid situation.
About the hamsterwheel, best advise I ever got was to put money aside every month, doesn’t have to be much, but start today. Look up compound investing if it doesn’t make sense to you.
Right. Amortized compound interest. Exactly how the credit card companies make so much money.
Just a thought, include access to the videos of the construction...
Living within your means and saving money is good advise everyone should follow. The money comes in handy when an opportunity knocks. It takes money to make money. Also, the savings cushion is nice when a pandemic hits and you find yourself suddenly out of work. Not worrying about your next rent or a mortgage payment can save you a lot of stress.
YES SIRR...THANKYOU