TruLux | Construction Division

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Why Construction Is the Crown Jewel

The Revenue Multiplier

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The Logic Ken Pozek Made Explicit: "How do we monetize the same clients as many times as possible?" Pozek owns mortgage and title. TruLux goes further — owning construction means the same buyer who closes on a $350K home and finances through TruLux can then hire TruLux Construction for a $250K renovation. One client relationship, three revenue events: $8,000 mortgage + $8,375 RE commission + $25,000–$50,000 construction margin = $41,375–$66,375 from a single relationship. No other competitor in the Space Coast market offers this.

Space Coast Construction Demand Drivers

Aging housing stock — 40%+ of Brevard homes built before 1990, primed for renovation
Aerospace relocation buyers want turnkey homes — buyers who can't find perfect existing inventory will build or renovate
Waterfront/canal homes are premium — buyers routinely purchase and upgrade for $100K–$300K over purchase price
New construction lots remain available in Palm Bay and Titusville — ground-up builds are viable
Investor clients doing DSCR rentals need renovation management between tenants
Short-term rental conversions (Port Canaveral, Cocoa Beach) — STR owners pay premium for fast turnaround renovations

The Pure GC Model — Zero Tradespeople on Payroll

TruLux Construction operates as a General Contractor (GC) — it manages projects and subcontractors but employs zero tradespeople directly. This is the critical design decision that keeps overhead near zero and eliminates the largest operational risks in construction (workers comp, OSHA, tools, equipment, slow periods).

Revenue Model

Client pays project total$250,000

Subcontractor costs (80–85%)-$212,500

GC overhead (permits, supervision)-$12,500

TruLux GC Margin (10–12%)$25,000–$30,000

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Service Tiers & Revenue by Project Type

Phase-Gated Entry Strategy

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Tier 1 — Renovation & Updates

TruLux Margin: 15–20% · $10K–$40K/project

Kitchen remodels, bathroom renovations, flooring, painting, HVAC upgrades, roofing. Lowest complexity. Fastest turnaround (2–8 weeks). Primary pipeline comes from RE buyers who just closed. Phase 1 focus — build sub network here first.

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Tier 2 — Additions & Major Rehabs

TruLux Margin: 12–18% · $40K–$150K/project

Room additions, garage conversions, whole-house remodels, structural repairs, screened pool enclosures, outdoor kitchens. Medium complexity. 8–24 week timelines. Permits required. Florida CGC license mandatory for projects over $75K. Phase 2 focus.

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Tier 3 — Ground-Up New Construction

TruLux Margin: 10–15% · $100K–$500K+ /project

New residential builds on vacant lots, ADU/in-law suite construction, custom homes. Highest margin dollar amount but most complex. Requires Certified General Contractor license (CGC). 12–18 month timelines. Phase 3 only — after CGC licensure established and sub network proven.

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Phase Gate for Each Tier: Start with Tier 1 in Phase 1 — no CGC required under $75K for owner-occupied residential in Florida, subcontractors handle licensed trades. Move to Tier 2 in Phase 2 once you have CGC or a licensed GC partner. Tier 3 requires a fully operational sub network with proven performance, a licensed GC, and dedicated project management staff. Do not skip ahead — construction reputation is unforgiving.

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Florida Contractor Licensing Requirements

DBPR / CILB Governed

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Florida Unlicensed Contracting Is a Felony: Contracting without a license for projects over the threshold in Florida is a 3rd degree felony (F.S. 489.127). Unlicensed contracting is also a primary mechanism for homeowner fraud and DBPR enforcement. Start with smaller renovation projects (under $75K total project cost, under $25K for HVAC) that subcontractors execute under their own licenses while TruLux manages scope, pricing, and client relationship.

Certified General Contractor (CGC)

F.S. 489.105(3)(a) · CILB

Required for: new construction, structural work, projects over $75K, commercial projects. Exam: 4-hour written test covering project management, business/finance, and building codes. Requirements: 4-year degree OR 4+ years supervised experience, financial stability, background check. Exam pass rate: ~42%. CE: 14 hours every 2 years. Cost: $145 application + exam fees + ~$800–1,200 for prep course.

Required for Tier 3

Certified Building Contractor (CBC)

F.S. 489.105(3)(b) · CILB

Narrower scope than CGC — residential and commercial construction excluding structural. Alternative path if new residential is the primary focus. Same general exam process and requirements as CGC. Many TruLux-type operators take the CBC as the faster path, then add CGC later. Useful for major renovations and additions (Tier 2 upper end).

Required for Tier 2 Upper

Registered GC / CBC (County-Level)

F.S. 489.117 · County-Specific

An alternative for Phase 1: partner with or hire a state-licensed GC who operates under TruLux Construction's brand. The licensed GC is named on permits; TruLux handles sales, client management, project oversight. Common structure for new GC businesses — find an experienced CGC willing to license their name in exchange for salary or profit share while Traveus studies for CGC.

Phase 1 Bridge Strategy

Specialty Contractor Licenses (Subs)

Electrical, Plumbing, HVAC, Roofing

All trade work requires licensed subcontractors holding their own specialty licenses (EC, Master Plumber, CAC, CRC). TruLux as GC is NOT required to hold these — it hires subs who do. Verify active license status on DBPR website before engaging any sub. Require certificate of insurance from every sub before they set foot on a project.

Subcontractors Handle These

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Building the Subcontractor Network

The Asset That Compounds

The sub network is TruLux Construction's core asset — the same way YouTube subscribers compound over time, a reliable sub network takes 12–24 months to build but then becomes an uncopiable moat. Contractors who consistently give subs steady work, pay on time, and don't waste their time become the GC of choice. This is how you get pricing below market rates and priority scheduling.

Subs Required for Phase 1 Tier 1 Renovations

Trade	License Required	Typical Rate	How to Source
General Laborer / Demo	None	$25–40/hr	Craigslist, local FB groups
Flooring (tile, LVP, hardwood)	None required	$3–8/sqft installed	Floor stores, Angi/Thumbtack
Painting (interior/exterior)	None under $25K FL	$2–5/sqft	Local painters, referrals
Electrician	EC License (FL)	$75–125/hr	NECA directory, referrals
Plumber	Master Plumber (FL)	$80–150/hr	PHC association, referrals
HVAC	CAC License (FL)	$85–140/hr	ACCA Florida, referrals
Drywall / Texture	None	$1.50–3.50/sqft	Local crews, FB groups
Cabinets / Millwork	None typically	Project-based	Local shops, IKEA installers

Sub Vetting Checklist (Every Sub, Every Time)

1. Verify active license on DBPR.MyFloridaLicense.com before first engagement
2. Certificate of insurance — general liability ($1M minimum) + workers comp
3. Three past client references with specific project details
4. Signed subcontractor agreement (scope, timeline, payment schedule, lien waiver requirement)
5. IRS Form W-9 for 1099 reporting at year end
6. Payment terms: 50% at project start, 40% at milestone completion, 10% at punch-list sign-off
7. Lien waiver required at each payment — conditional waiver at time of payment, unconditional upon clearing
8. First project: low-risk Tier 1 job only. Evaluate quality, communication, and schedule adherence before bigger work

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Client Pipeline: How Construction Feeds from RE & Mortgage

The Integrated Revenue Engine

Construction doesn't need its own lead generation — it feeds from the existing RE and mortgage pipelines. Every transaction becomes a construction discovery conversation. The touch points below represent systematic integration points where a construction need can be identified and converted.

New buyer closing on fixer-upper"What would you want to update first?"
RE agent at closing
$25K–$150K
25–40% of buyers

Investor DSCR buyer

Needs rehab before rental

LO at application

$15K–$80K

40–60% of investors

Seller pre-listing prep

Updates to maximize sale price

Listing agent

$5K–$40K

15–25% of sellers

Post-close renovation

12-month post-close nurture sequence

Automated follow-up

$20K–$100K

10–15% of past clients

STR/Airbnb conversion

Port Canaveral, Cocoa Beach investors

YouTube content → inbound

$30K–$120K

Growing niche

Ground-up new constructionVacant lot buyer + construction-to-perm loan
RE + Mortgage integrated pitch
$250K–$600K+
Phase 3 only

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Construction-to-Perm Financing: The Mortgage Integration Play

Highest Revenue Per Client Event

Construction Loan Products Available Through TruLux Mortgage

Product	Structure	Best For	TruLux BPS
Construction-to-Perm (C2P)	Single close: construction draw period → converts to 30-yr perm	New builds, major additions	250–300 BPS on perm loan
203(k) Rehab Loan (FHA)	Renovation costs rolled into purchase mortgage	Fixer-uppers under $750K	225–250 BPS
Fannie Mae HomeStyle	Conventional rehab — includes luxury items	Conventional buyers w/ renovation plans	225–250 BPS
Fix & Flip Bridge Loan	Short-term hard money, 6–18 months	Investors, DSCR pre-stabilization	200–300 BPS
HELOC / Cash-Out Refi	Tap existing equity for renovation	Existing homeowners with equity	200–250 BPS

The Integrated Stack — Example Transaction

Scenario: Aerospace engineer relocating from California buys vacant lot in Viera for $90K, builds custom 2,500 sqft home for $450K using TruLux for all three verticals.

RE Commission (land purchase)$2,250

Construction-to-Perm mortgage (275 BPS on $450K)$12,375

Construction GC Margin (12% on $450K build)$54,000

RE Commission (when client sells in 5–10 years)$11,250

Total from one client relationship$79,875+

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Project Management System

Essential for GC Reputation

Construction Project Management Tools

Tool	Cost	Best For
Buildertrend	$199–$499/month	Phase 2–3 full GC — client portal, schedules, subs, financials, photos
Jobber	$69–$249/month	Phase 1 small remodels — job scheduling, invoicing, quotes
CoConstruct	$299+/month	Custom home builders specifically
Notion (DIY)	$10/user/month	Phase 1 — project boards, sub contact lists, inspection checklists

Recommendation: Start with Notion + Jobber in Phase 1. Graduate to Buildertrend in Phase 2 when managing 3+ simultaneous projects.

Critical Project SOPs (10 Minimum)

Estimating and bid process (line-item breakdown template)
Client contract and change order management
Permit pulling workflow by county (Brevard, Orange, Duval)
Sub scheduling and coordination protocol
Weekly client communication cadence (photos + progress update every Friday)
Material procurement and supplier accounts
Inspection scheduling and sign-off
Punch-list creation and completion
Lien waiver collection at every payment
Post-project client review request and referral ask

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Construction Division Phase-by-Phase Growth

Low-Risk, Milestone-Gated Entry

Phase 1 · Months 1–12

Foundation: Small Renovations

Service TierTier 1 only

Project Size$5K–$40K

Volume Target1–3 projects/month

Monthly Revenue$5K–$25K

Licensing NeededNone (sub trades licensed)

Team NeededTraveus + 1 VA coordinator

Key ObjectiveBuild sub network, prove quality

Phase 2 · Months 12–24

Scale: Additions & Major Rehabs

Service TierTier 1 + Tier 2

Project Size$40K–$150K

Volume Target3–6 projects/month

Monthly Revenue$25K–$80K

Licensing NeededCBC or GC partner

Team Needed+ Project Manager (US or PH)

Key ObjectiveTraveus CGC exam, Buildertrend

Phase 3 · Months 24–36

Full GC: New Construction

Service TierAll three tiers

Project Size$50K–$600K+

Volume Target5–10 concurrent projects

Monthly Revenue$60K–$150K+

Licensing NeededCGC active

Team Needed+ Estimator + Site Supervisor

Key ObjectiveFirst C2P loan closed, ground-up build

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The Long Game: A mature Construction division generating 6–10 projects/month at an average margin of $20,000 per project produces $120,000–$200,000/month in profit — more than the mortgage and real estate divisions combined. This is why PLACE Inc., Compass, and the largest real estate teams are all pushing into construction and renovation services. TruLux is building toward this from day one, just with a phased, low-risk entry that matches licensing, sub network maturity, and cash flow reality.

Construction Division Blueprint