The #1 "expensive mistake" in this industry is the price tag on the kit. Many homeowners see an advertisement for a "Barndominium Kit" for $45,000 and assume they can build a home for under $100,000.

In our consulting sessions, we perform a Reality Check on the math. A kit is just the "skin and bones." To reach a finished, bankable home, you must account for:

• The Foundation: Steel buildings require specific engineered slabs to handle the point loads of the columns.
• The "Fit-Out": Drywall, insulation (typically spray foam for metal buildings), HVAC, plumbing, and electrical.
• The Finish: Custom kitchens, flooring, and interior framing.

The Consultant's Rule of Thumb: Generally, the cost of your kit should be multiplied by 3 or 4 to estimate your final "turnkey" price. If you buy a kit before understanding this math, you may find yourself with a pile of steel and no remaining budget to finish the interior.

3. Why You Need a Consultant Before You Buy Land

Not every piece of land is "Barndo-friendly." During your free consult, we discuss the Appraisal Gap.

Residential financing relies on "comparable sales" (Comps). If you are building a barndominium in a county where no other barndominiums exist, a traditional appraiser may struggle to find the value. This can lead to a "low appraisal," requiring you to bring significantly more cash to the closing table.

We help you evaluate:

• Land Position: Is the land zoned for a metal-clad residence?
• Infrastructure Needs: Does the lot require $50,000 in clearing, road-cutting, and utility extensions before the slab can even be poured?
• Comp Search: We look at the "as-completed" feasibility of your project in your specific market.

4. The "No-DIY" Policy: Protecting Your Investment

Many people are drawn to barndominiums because they want to "do it themselves." However, to qualify for a One-Time Close Construction Loan, we have a strict stance: All work must be performed by a licensed and experienced General Contractor.

Why we require this:

• Bankability: Lenders view "Owner-Builder" projects as high-risk. Stalled projects or code violations can lead to foreclosure.
• Vetting: We provide you with a General Contractor Screening Checklist. We help you interview your builder to ensure they have experience with the specific engineering of steel-frame homes.
• Draw Management: We ensure the contractor understands the "Draw Schedule"—how the bank releases funds as milestones are hit (e.g., foundation poured, shell erected, dried-in).

5. Financing Strategy: The One-Time Close Advantage

Most people think they need a "Land Loan," then a "Construction Loan," then a "Mortgage." This means three applications, three sets of closing costs, and three chances to be denied.

Our specialized One-Time Close program is the "Gold Standard" for barndominium builds:

1. Single Closing: You sign papers once.
2. Interest Rate Lock: You lock your permanent rate before the first shovel hits the ground.
3. Lot Equity: If you already own your land, that value is credited toward your project, often reducing or eliminating the need for a cash down payment. (RJ: Insert specific Max Loan-to-Value percentages here).
4. Permanent Conversion: When the GC finishes the house and the final inspection is passed, the loan automatically converts to a standard 15 or 30-year mortgage.

6. Common Mistakes We Help You Avoid

Through over 35 years of experience, RJ has seen every way a project can go wrong. Our consulting focuses on preventing:

• The "Un-Bankable" Kit: Buying a kit that isn't IRC-compliant (International Residential Code). If it isn't IRC-compliant, it's just a barn, and a bank won't give you a home mortgage for it.
• The Sequencing Error: Buying land, then a kit, then looking for money. Clarity comes first. Money and strategy must be in place before you commit to the physical components.
• The Infrastructure Underestimate: Forgetting that "rural living" means you are your own utility company (well, septic, and power poles).

7. Let’s Start Your Story

Building a barndominium is a relationship business. Because we work nationwide (48 states), we understand the regional nuances from Texas to Tennessee to Florida. Our initial consultation is free because we need to ensure that your project is a "right fit" for our specialized financing.

How to move forward:

• Schedule a Consult: Use the link below to book a 1-on-1 session with RJ Jaramillo. We will review your land position, your intended use, and your build timeline.
• Mutual Agreement: If your story aligns with a feasible path, we will move forward with a deep-dive into the numbers. If a 3rd party feasibility report is needed, we will guide you to the right partners.