Why is Custom Building and Remodeling So Important Today?
By Ryan Siebert
We recently celebrated being in business for 10 years and have completed over 400 custom building and remodeling projects. Majority of the custom building and remodeling projects that we completed were for our own speculative inventory. Speculative simply means we build for our self with the intention to sell for a profit. However, in 2016 we decided to open up our services in custom building and remodeling to consumers. If you are wondering why it took up so long to start offering the custom building and remodeling services until now, well then my friend you will want to read this article.
When we first started our development company we didn’t have the need to give additional services other than to offer clients to purchase homes had already completed. Early on we were rehabbing 40, 50, 60 homes a year with little to no competition, that is until crowdfunding came along and brought every mom and pop investor out of the woodworks (see chart below).
Before 2016 anyone that did inquire about using our services for custom building and remodeling was quickly turned down, we were too busy. Ten years into our company we have gone through a variety of up and down markets. We realized the need to consistency with our cash flow versus waiting for the next market run to take place. We were literally banking on the investments to hit on a regular basis when lending was anything but consistent for our end buyers. We felt a strong need to establish cash flow and believe that we can accomplish this goal in the form of custom building and remodeling services.
Development Company to Builders
Had we been aware of the lack of cash flow earlier in our business, I don’t think custom construction would have been possible. The bottom line is we were not systematically set up for custom building and remodeling projects early on. We did not have the technology in place nor the experience to be able to provide this kind of service. We literally had to go from being an uneducated development company to a general construction company that can perform custom building and remodeling work for any project thinkable. It took years and hundreds of projects for us to get to where we are today with both construction knowledge and communication techniques, we had to go through a major transformation.
We respect and understand that the best subcontractors are busy consistently. We want to be sure that when our clients project is next in line that the best subcontractors are available to work with for their custom building and remodeling work. When we moved our business into higher priced homes we did not have as many projects to work on to keep all of our subcontractors busy. With custom remodeling and building projects added to the mix we are able to keep the work flow consistent for our subcontractors and keep the costs lower for our clientele.
The future for our business is always changing and a moving target when it comes to speculative real estate. We believe firmly that the custom building and remodeling services that we offer can help stabilize our business and allow us to properly forecast timelines to provide over the top customer service for our clients. In this industry communication and commitment is rare and our unique ability to provide both of these traits and a dynamite product is a combination that will surely shine in the custom building and remodeling industry.