Omaha daily bee., 1909-07-11

Success in any undertaking consists to a
large extent in a proper knowledge of the
details of that which is being undertaken.
Guide post No. /: The average house
builder has a very vague idea of how to
proceed in the building of a modern home.
The first thing to determine in the building
OF a home Is whether or not the funds at
hand or available are sufficient to build
the home which is desired. A great many
people nowadays build homes on either the
monthly payment or prearranged mortgage
plan, preferring to pay out interest for the
money borrowed and ave a home In the
end, than to continually pay rent year after
year and have nothing to show for II but
the receipts. To try and build a home on
a monthly payment plan with practically no
capital to start with Is not as easy as 1t
at first appears. In addition to the monthly
payments, there are the taxes, insurance
and occasional repairs to be taken care OF
and for the first year or two the payments
pay so little more than the running interest
that the principal is not reduced much. An
other objection to building on this plan is
that loan companies OF this nature almost
invariably insist on building the house
themselves. The owner is. therefore. un-
able to select his own contractors and
really has very little to say about the house
during the course of its construction. He
is not sure whether he is getting his
moneys worth or not, 4 casual glance at
homes that nave been built under this plan
Is sufficient proof that the results are not
always satisfactory. 1t is therefore best to
walt a few years until sufficient funds have
been gathered together to pay at least half
the expense OF building and obtain a loan
on the other half. The amount being re-
duced by one-half. a greater gain is made
on the principal on each payment and con-
siderable saved in this way Of interest. The
owner also has the privilege under this
method OF selecting whoever he chooses TO
build his home, profiting by the advantage
of being able to a k competitive figures
from different builders. II the loan Is mace
In advance, before the building Is built II
will usually require the paying OF an extra
commission OF 2 per cent. II the loan Is
made after the building is built this 2 per
cent is saved. II is therefore best to have
the house built by a contractor whose
financial condition makes It possible Tor
him TO carry half Of the expense OF build
ing until the house Is completed. Any con-
| tractor in good standing has credit enough
10 do this and is entirely secured for the
payment Of the money. since he can put a
lien upon the house. A contract OF this
kind should be prepared by an attorney and
be based upon carefully prepared plans so
that no matters will come up that VIII
cause any dispute.
Guide post No. ?: Do not let an architect
or contractor draw up your building con-
tract. The architect should confer with
your attorney when the contract Is being
drawn up, and look Il over carefully after
wards, 20 be sure that certain points
about which he Is familiar are properly
covered. An architect has 70 know the
rudiments OF a great many kinds OF bust
ness that come in connection with his
work. but he is not a lawyer and should
not be expected 10 know any more about
the pit-faIis OF the law than a lawyer does
about the strength OF building materials.