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Listen "How newer builders & investors can navigate the changing market (with Greg Naughton, 22 years experience in construction and 10 years experience as an investor and builder) - Real Estate Real Fast EP6"
Episode Synopsis
Episode overview
New construction builds are becoming more challenging in the current real estate market. With shortages, shifting demand, and more, there’s a lot to consider when building new homes.
What can you do to have better margins when it’s time to sell a new house? How can you better prepare for any cost and demand changes?
And if you’re feeling tight on budget, how do you balance cost vs quality?
We’ll dive into how newer builders and investors can navigate the changing market with Greg Naughton, Owner of Magnets REI with 22+ years experience in construction and 10 years experience as an investor and builder.
Episode highlights
What are the primary challenges of building new construction in Austin
How long does the process to build a new home in Austin typically take after you acquire land
Here's what you should be doing as an investor or builder in the current real estate market
What factors do you need to consider when balancing cost vs quality while building new construction
How to approach marketing new construction to get it sold
What should investors and builders focus on in new construction to appeal to buyers
What is the most challenging new construction Greg has faced in 10 years as a builder
What are some ways new builders can secure their construction sites against theft or vandalism
Why the acquisition part is most important to margins as a builder and how you should strategize acquisitions
Why home size can make a big difference on profits for new builds
What Greg is doing now as an investor and builder compared to his strategy when he first started 10 years ago
How Greg approaches and thinks about partner deals
Episode links:
Follow ListingSpark on LinkedIn, Twitter, Instagram, Facebook, and YouTube
Connect with Aaron Jistel on LinkedIn
Connect with Greg Naughton on LinkedIn
Key takeaways
[00:03:46] What are the primary challenges of building new construction in Austin
In Austin, the biggest challenge for new construction builders is dealing with the land development process with the city of Austin. Even though there have been challenges with COVID, shutdowns, shortages, reduction in workforce, etc., the land process with the city is still the biggest challenge.
“First of all, there's the whole COVID era the last two years, which has added a level of challenges above and beyond what you would normally run into and face—shutdowns, factories, reduction in workforce, and so on.
But you know, I'd say all of the challenges here, could be rolled up into one major category. And that's navigating the process, the build process, the land development process with the city of Austin.”
[00:05:14] How long does the process to build a new home in Austin typically take after you acquire land
The timeline for new builds can vary depending on the time it takes to acquire permits. To have the right expectations, go into new builds thinking it will take the process about one year. The two biggest hurdles are waiting for the demo permit and waiting for the building permit.
“Just trying to get a permit with the city can take anywhere from a few weeks to a few months. So if you're buying a property or you're going to scrape it, first, you have to go through a
New construction builds are becoming more challenging in the current real estate market. With shortages, shifting demand, and more, there’s a lot to consider when building new homes.
What can you do to have better margins when it’s time to sell a new house? How can you better prepare for any cost and demand changes?
And if you’re feeling tight on budget, how do you balance cost vs quality?
We’ll dive into how newer builders and investors can navigate the changing market with Greg Naughton, Owner of Magnets REI with 22+ years experience in construction and 10 years experience as an investor and builder.
Episode highlights
What are the primary challenges of building new construction in Austin
How long does the process to build a new home in Austin typically take after you acquire land
Here's what you should be doing as an investor or builder in the current real estate market
What factors do you need to consider when balancing cost vs quality while building new construction
How to approach marketing new construction to get it sold
What should investors and builders focus on in new construction to appeal to buyers
What is the most challenging new construction Greg has faced in 10 years as a builder
What are some ways new builders can secure their construction sites against theft or vandalism
Why the acquisition part is most important to margins as a builder and how you should strategize acquisitions
Why home size can make a big difference on profits for new builds
What Greg is doing now as an investor and builder compared to his strategy when he first started 10 years ago
How Greg approaches and thinks about partner deals
Episode links:
Follow ListingSpark on LinkedIn, Twitter, Instagram, Facebook, and YouTube
Connect with Aaron Jistel on LinkedIn
Connect with Greg Naughton on LinkedIn
Key takeaways
[00:03:46] What are the primary challenges of building new construction in Austin
In Austin, the biggest challenge for new construction builders is dealing with the land development process with the city of Austin. Even though there have been challenges with COVID, shutdowns, shortages, reduction in workforce, etc., the land process with the city is still the biggest challenge.
“First of all, there's the whole COVID era the last two years, which has added a level of challenges above and beyond what you would normally run into and face—shutdowns, factories, reduction in workforce, and so on.
But you know, I'd say all of the challenges here, could be rolled up into one major category. And that's navigating the process, the build process, the land development process with the city of Austin.”
[00:05:14] How long does the process to build a new home in Austin typically take after you acquire land
The timeline for new builds can vary depending on the time it takes to acquire permits. To have the right expectations, go into new builds thinking it will take the process about one year. The two biggest hurdles are waiting for the demo permit and waiting for the building permit.
“Just trying to get a permit with the city can take anywhere from a few weeks to a few months. So if you're buying a property or you're going to scrape it, first, you have to go through a
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