WEBVTT 00:00:00.000 --> 00:00:03.060 Ever wonder what really happens behind the scenes 00:00:03.060 --> 00:00:05.360 in construction, real estate, and development? 00:00:06.080 --> 00:00:08.240 We pull back the curtain on the new home construction 00:00:08.240 --> 00:00:11.060 industry, the real estate market, and the trends 00:00:11.060 --> 00:00:14.080 shaping it all. Discover the stories, insights, 00:00:14.300 --> 00:00:16.239 and expertise behind the process of building 00:00:16.239 --> 00:00:19.640 a new home. Join us for Trust the Process podcast, 00:00:19.940 --> 00:00:22.539 and let's build something great together. Welcome 00:00:22.539 --> 00:00:25.820 back. to Trust the Process podcast where we talk 00:00:25.820 --> 00:00:29.500 about new homes, the real estate industry, construction, 00:00:30.039 --> 00:00:33.219 and everything in between. So today we're going 00:00:33.219 --> 00:00:38.159 to talk about product and pricing. So how does 00:00:38.159 --> 00:00:41.659 a builder come up with pricing? How do we decide 00:00:41.659 --> 00:00:44.399 what's going to go on any specific lot? It's 00:00:44.399 --> 00:00:47.600 kind of a catch -22 because you're building out 00:00:47.600 --> 00:00:50.659 to a product that you're going to market. Months 00:00:50.659 --> 00:00:53.700 from now, so it's anticipating what's going to 00:00:53.700 --> 00:00:55.619 what there might be an appetite in that area 00:00:55.619 --> 00:00:58.420 for and how you put that pricing together. So 00:00:58.420 --> 00:01:01.280 an interesting topic and one that seems really 00:01:01.280 --> 00:01:03.880 relevant for every area. These questions. It 00:01:03.880 --> 00:01:06.599 does, right? This is something you guys into 00:01:06.599 --> 00:01:08.799 play. So what I liked and I wanted to circle 00:01:08.799 --> 00:01:10.719 back to is that you're putting something out 00:01:10.719 --> 00:01:12.260 there that you're not marketing or you're trying 00:01:12.260 --> 00:01:13.739 to create manifest something that you're not 00:01:13.739 --> 00:01:17.079 going to even market. First seven to twelve months 00:01:17.079 --> 00:01:19.159 if it's a subdivision. I have two pieces of raw 00:01:19.159 --> 00:01:20.760 land right now. We're working through entitlements 00:01:20.760 --> 00:01:24.519 on I I even have I have tentative map approval 00:01:24.519 --> 00:01:27.319 on one and I won't even have The civils and all 00:01:27.319 --> 00:01:29.840 the off -site improvement permitted until October, 00:01:29.840 --> 00:01:32.620 which is in seven months from now We won't even 00:01:32.620 --> 00:01:34.280 be able to move any dirt over there for seven 00:01:34.280 --> 00:01:36.819 months Let alone building the homes and marketing 00:01:36.819 --> 00:01:39.299 the homes and selling the homes These are residences 00:01:39.299 --> 00:01:41.120 that will be moving. You know, these residents 00:01:41.120 --> 00:01:43.680 will be moving into their homes and probably 00:01:44.270 --> 00:01:47.349 Christmas of 26, potentially. I don't know. It 00:01:47.349 --> 00:01:50.549 could easily be Christmas of 2026. So to try 00:01:50.549 --> 00:01:54.030 to imagine what the market's going to want. It's 00:01:54.030 --> 00:01:57.129 just dirt and you have to conceptualize what 00:01:57.129 --> 00:01:58.549 you're going to put there, how much you're going 00:01:58.549 --> 00:02:00.310 to price it at, how much you want to put into 00:02:00.310 --> 00:02:02.530 it to know what you might get out of it. So it 00:02:02.530 --> 00:02:05.250 is. And that is that those have attended the 00:02:05.250 --> 00:02:07.930 map approved, which means the lot lines are there, 00:02:08.250 --> 00:02:10.110 the law sizes, everything's there. I can walk 00:02:10.110 --> 00:02:11.770 on. I know this is going to be a lot one. Once 00:02:11.770 --> 00:02:13.810 we build the street. And then we'll call this 00:02:13.810 --> 00:02:15.310 act. This is going to be a lot one. This is going 00:02:15.310 --> 00:02:17.069 to be a lot two. This is kind of views a lot 00:02:17.069 --> 00:02:19.610 two is going to have. So I am at least hemmed 00:02:19.610 --> 00:02:22.650 in a little bit by that, but they are pretty, 00:02:22.750 --> 00:02:24.650 they're like 6 ,800 square foot home sites. They're 00:02:24.650 --> 00:02:28.629 very regular. Do I build more custom semi -custom 00:02:28.629 --> 00:02:31.490 that will maximize the lots? Do I do a unique 00:02:31.490 --> 00:02:35.289 home for each lot? Do I hit the upper echelon 00:02:35.289 --> 00:02:37.270 of the price point in the median sales price? 00:02:37.270 --> 00:02:39.870 And that area is around 650 ,000, but there's 00:02:39.870 --> 00:02:41.919 some new construction. that are in the twos. 00:02:41.919 --> 00:02:44.180 There's some luxury homes. I'm talking within, 00:02:44.180 --> 00:02:45.620 you know, quarter mile, by the way, the crow 00:02:45.620 --> 00:02:48.340 flies that are up to 15 million. Some, some celebrities 00:02:48.340 --> 00:02:50.620 live within this same zip code within the same 00:02:50.620 --> 00:02:53.020 area. Well, they'll pass this neighborhood. So 00:02:53.020 --> 00:02:55.639 how high can I push it? Right. Right. But then 00:02:55.639 --> 00:02:58.060 there's other objections to this particular parcel 00:02:58.060 --> 00:03:00.840 there. It's pretty close to a major thoroughfare 00:03:00.840 --> 00:03:06.379 and it has a drainage, uh, wash on the other 00:03:06.379 --> 00:03:08.400 side of the road that I have to build. It's not 00:03:08.400 --> 00:03:11.250 touching my community, but it's It's an objection 00:03:11.250 --> 00:03:14.050 that might not matter for a $900 ,000 buyer, 00:03:14.210 --> 00:03:18.270 but will matter for a $1 ,900 ,000 buyer, and 00:03:18.270 --> 00:03:20.310 certainly up and above and beyond that. So I 00:03:20.310 --> 00:03:22.969 can put whatever I want there, but there are 00:03:22.969 --> 00:03:24.830 going to be objections that I'm going to hear. 00:03:24.949 --> 00:03:27.389 Two of those homes will back that street. All 00:03:27.389 --> 00:03:29.409 the homes will be able to see that street because 00:03:29.409 --> 00:03:32.370 the way it's kind of off at an L. So every single 00:03:32.370 --> 00:03:33.770 one of those, you'll stand in the garage and 00:03:33.770 --> 00:03:36.300 look down that thoroughfare. It's not an ugly 00:03:36.300 --> 00:03:38.419 thoroughfare. It's actually well managed and 00:03:38.419 --> 00:03:40.300 manicured thoroughfare, but people go around 00:03:40.300 --> 00:03:43.460 50 miles an hour on that thoroughfare. And another 00:03:43.460 --> 00:03:45.120 objection to that on the topic of the speed is 00:03:45.120 --> 00:03:46.479 that you can only make a right -hand turn and 00:03:46.479 --> 00:03:49.020 then do a U -turn to go out if you're going west. 00:03:49.580 --> 00:03:52.300 And beyond that, it's a bit of a view. There's 00:03:52.300 --> 00:03:54.300 something to be... I mean, it's a beautiful line. 00:03:54.860 --> 00:03:58.479 It has so many pluses. So, geographic's amazing. 00:03:58.620 --> 00:04:01.300 If you just looked at a map, you'd say, push 00:04:01.300 --> 00:04:04.439 it to 2 million because you can get it. If you 00:04:04.439 --> 00:04:08.580 walk the site, let's say 700 ,000, somewhere 00:04:08.580 --> 00:04:10.800 in between. The conservative side of me will 00:04:10.800 --> 00:04:12.259 say, oh, don't push it. You don't want to hear 00:04:12.259 --> 00:04:14.419 these objections. But then the other part of 00:04:14.419 --> 00:04:17.759 me thinks, gosh, there's two guard gated country 00:04:17.759 --> 00:04:20.160 clubs around the corner from here. There are 00:04:20.160 --> 00:04:23.680 $25 million homes that are visible from the parcel. 00:04:25.120 --> 00:04:27.120 All the new construction in that area. So if 00:04:27.120 --> 00:04:28.279 you want to be in that area, and it's a very 00:04:28.279 --> 00:04:30.420 desirable area, all the new construction is luxury. 00:04:30.970 --> 00:04:32.910 And the few production builders that are in that 00:04:32.910 --> 00:04:36.209 neighborhood are 1 .2 is the lowest So I know 00:04:36.209 --> 00:04:38.670 that is that my floor So I think my floor is 00:04:38.670 --> 00:04:40.910 probably 1 million and I think my ceiling is 00:04:40.910 --> 00:04:45.149 probably 1 .5. So now it comes to all right Let's 00:04:45.149 --> 00:04:47.329 find that price Let's find that product that 00:04:47.329 --> 00:04:49.470 will that will carry that sales price because 00:04:49.470 --> 00:04:51.829 we think the neighborhood and the lots can carry 00:04:51.829 --> 00:04:54.430 that sales price What kind of designs finishes 00:04:54.430 --> 00:04:56.970 and square footage and amenities are people going 00:04:56.970 --> 00:04:58.870 to expect for that sales price and that those 00:04:58.870 --> 00:05:01.220 are knowables I can get an idea of where the 00:05:01.220 --> 00:05:03.240 market is. Those can change a little bit. The 00:05:03.240 --> 00:05:05.759 finishes, the, you know, and we're going to use 00:05:05.759 --> 00:05:08.139 this quality of the product. Yeah, we can do 00:05:08.139 --> 00:05:11.060 Whirlpool versus Jenn Air if we find that. We've 00:05:11.060 --> 00:05:13.620 kind of maxed it or if, heaven forbid, anything 00:05:13.620 --> 00:05:15.839 should happen or something opens up and then 00:05:15.839 --> 00:05:17.879 you realize you want to build a little bit higher. 00:05:18.300 --> 00:05:20.180 Which I'm doing on my Serene project. You know, 00:05:20.180 --> 00:05:22.620 it was kind of slated to be in this 1 .5 and 00:05:22.620 --> 00:05:25.180 then I've based off of the preliminary interest 00:05:25.180 --> 00:05:26.819 we're getting. I'm realizing, no, these are probably 00:05:26.819 --> 00:05:29.040 $2 million homes and they will become $2 million 00:05:29.040 --> 00:05:31.399 homes if we do them right. Let's do black aluminum 00:05:31.399 --> 00:05:33.980 windows. Let's do glass garage doors. Let's do 00:05:33.980 --> 00:05:36.199 really nice finishes. We're working with plans 00:05:36.199 --> 00:05:38.860 that I have already finalized and designed. So 00:05:38.860 --> 00:05:41.079 that part now I can't change. So as you kind 00:05:41.079 --> 00:05:43.899 of use, you start making those decisions and 00:05:43.899 --> 00:05:49.500 then you have to try to right. So this parcel 00:05:49.500 --> 00:05:51.959 I bought with the tentative map approved. So 00:05:51.959 --> 00:05:53.800 that part was decided for me. Okay. I know they're 00:05:53.800 --> 00:05:56.000 going to be 6 ,500 square foot home sites. They're 00:05:56.000 --> 00:05:57.240 going to be irregular. It's going to be hard 00:05:57.240 --> 00:05:59.839 to get like two different models on these these 00:05:59.839 --> 00:06:03.420 lots. So I think that that made it a little bit 00:06:03.420 --> 00:06:05.279 easier for me. And then I said, okay, well, what 00:06:05.279 --> 00:06:07.540 can go here? And then once I designed those homes 00:06:07.540 --> 00:06:09.660 and finalized and pay for architects and engineers 00:06:09.660 --> 00:06:11.800 and get that process started, now I'm locked 00:06:11.800 --> 00:06:13.980 into the structures. And then there's only so 00:06:13.980 --> 00:06:16.000 much I can do from there to either save money 00:06:16.000 --> 00:06:19.939 or maximize returns. So you just kind of go as 00:06:19.939 --> 00:06:22.100 far as you can to the brink. And then as you 00:06:22.100 --> 00:06:24.199 make decisions, when I build in country clubs, 00:06:24.779 --> 00:06:27.040 I roughly know the lot. So I'm only doing usually 00:06:27.040 --> 00:06:28.759 one off. I mean, we have a batch running through 00:06:29.279 --> 00:06:32.319 for in that in South Shore. So those I had the 00:06:32.319 --> 00:06:34.339 lots and I was able to put the same plan on two 00:06:34.339 --> 00:06:36.019 of them and then a similar plan on the third 00:06:36.019 --> 00:06:37.540 and then a single story another just to mix up 00:06:37.540 --> 00:06:40.060 my product offering. But once I had all the architectural 00:06:40.060 --> 00:06:43.339 design now we're pouring those foundations this 00:06:43.339 --> 00:06:45.639 week. So I have to order windows. I ordered windows 00:06:45.639 --> 00:06:48.420 on one or windows, you know, this week I have 00:06:48.420 --> 00:06:49.519 to have all the windows order because they're 00:06:49.519 --> 00:06:52.319 six weeks out. So as the lead time item starts 00:06:52.319 --> 00:06:54.160 to come to where I need to have them order it 00:06:54.160 --> 00:06:56.019 so that they're here on time. That's when I start 00:06:56.019 --> 00:06:58.639 making decisions. Aluminum thermally broken bronze 00:06:58.639 --> 00:07:00.740 aluminum windows, bronze color aluminum windows 00:07:00.740 --> 00:07:04.060 are roughly twice as much as the same product 00:07:04.060 --> 00:07:06.579 in vinyl and then fiberglass somewhere in between. 00:07:07.120 --> 00:07:09.399 Energy efficiency. Yeah, there's some. Do I buy 00:07:09.399 --> 00:07:11.500 a name brand? And with that one, when you're 00:07:11.500 --> 00:07:13.420 building in South Shore, you're limited by the 00:07:13.420 --> 00:07:15.279 HOA too. They have criteria that you have to 00:07:15.279 --> 00:07:17.339 meet for the exterior. Oh, for sure. Yeah. Yeah. 00:07:17.629 --> 00:07:19.050 I just can't, I can't change anything on the 00:07:19.050 --> 00:07:21.149 outside. Once I submitted it to the HOA, submitted 00:07:21.149 --> 00:07:23.670 my design and my elevations. That's it. I can 00:07:23.670 --> 00:07:26.050 change windows, but I have to reapply. So this 00:07:26.050 --> 00:07:28.250 one, I'm deciding to do a bronze window. I just 00:07:28.250 --> 00:07:29.970 have to send it in. That's an approved window, 00:07:30.410 --> 00:07:32.209 but FYI on this one, I'm going to do that. So 00:07:32.209 --> 00:07:33.970 there's certain lots that I can, after I kind 00:07:33.970 --> 00:07:36.389 of walk them in and simmer on it, I think, okay, 00:07:36.449 --> 00:07:39.790 can I push this one? to 2 .5. Okay, this one 00:07:39.790 --> 00:07:41.589 has some objections and I've seen the flier where 00:07:41.589 --> 00:07:43.269 the foundation is and just kind of locked it 00:07:43.269 --> 00:07:45.829 in 3d space. This one might be a one eight fiver. 00:07:45.889 --> 00:07:48.149 Let's dial down the spec a little bit to vinyl 00:07:48.149 --> 00:07:51.029 windows. And then maybe I'll do a lower cabinet 00:07:51.029 --> 00:07:53.209 line that's not as custom that's still appropriate 00:07:53.209 --> 00:07:55.889 for 1 .9. But not something that would carry 00:07:55.889 --> 00:07:59.470 me up to 2 .5. But those are, you know, making 00:07:59.470 --> 00:08:03.009 those decisions on the fly, as we get hit certain 00:08:03.009 --> 00:08:06.189 cutoffs. So you got to go all the way back now 00:08:06.189 --> 00:08:08.790 to when it's a parcel. Thankfully, this one as 00:08:08.790 --> 00:08:10.930 an example is something that I had the lot sizes, 00:08:10.970 --> 00:08:13.649 but now is time now that the engineers are working 00:08:13.649 --> 00:08:15.670 on the civil improvement plans and the trains 00:08:15.670 --> 00:08:19.250 left the station, so to speak. I have to start 00:08:19.250 --> 00:08:21.029 conceptualizing the homes that are going to go 00:08:21.029 --> 00:08:22.970 there because that's another three to four months 00:08:22.970 --> 00:08:25.449 worth of architectural and engineering that I 00:08:25.449 --> 00:08:27.870 want to overlap with the engineering of the actual 00:08:27.870 --> 00:08:30.910 parcel and the site work so that I can have my 00:08:30.910 --> 00:08:33.950 homes in for permitting when I'm doing all the 00:08:33.950 --> 00:08:36.669 road, the curb, the gutter, the walls, the grading. 00:08:36.919 --> 00:08:39.039 So that when all that's done, I have a permit 00:08:39.039 --> 00:08:41.519 for the house. So it's actually sooner than you 00:08:41.519 --> 00:08:43.860 might think in the process. It's more upstream 00:08:43.860 --> 00:08:46.139 than you would think. Many people might think, 00:08:46.500 --> 00:08:48.639 oh, the developer just graded all these lots 00:08:48.639 --> 00:08:50.500 and the roads been built and the curb and gutters. 00:08:50.799 --> 00:08:52.580 And now they're probably starting to think about 00:08:52.580 --> 00:08:54.980 it. And now they're probably starting to think 00:08:54.980 --> 00:08:56.600 about homes they put there. By the time they're 00:08:56.600 --> 00:08:58.000 at that point, they better have their homes and 00:08:58.000 --> 00:09:00.039 permitting if not permitted because you want 00:09:00.039 --> 00:09:02.679 to get going. The cost of money is just astronomical. 00:09:02.679 --> 00:09:04.960 It's around 1 % a month. So if you're borrowing 00:09:04.960 --> 00:09:07.179 $2 million on that project, It's costing you 00:09:07.179 --> 00:09:09.500 $20 ,000 a month to sit on it. So you want to 00:09:09.500 --> 00:09:11.600 overlap as much of your time as possible. So 00:09:11.600 --> 00:09:14.139 you minimize that downtime. You have to go through 00:09:14.139 --> 00:09:15.559 engineering. You have to go through the civil 00:09:15.559 --> 00:09:17.659 improvement process. You have to go through public 00:09:17.659 --> 00:09:19.340 works and you have to go through actually developing 00:09:19.340 --> 00:09:20.980 it. You might as well. You have to go through 00:09:20.980 --> 00:09:22.519 that anyway. So you're paying carrying costs 00:09:22.519 --> 00:09:24.639 on that as it is, you might as well get all your 00:09:24.639 --> 00:09:26.519 engineering and architectural work done at the 00:09:26.519 --> 00:09:29.379 same time so that you can be ready to go. So 00:09:29.379 --> 00:09:31.659 that being said, you're doing this pretty upstream, 00:09:31.659 --> 00:09:36.549 right? You're, you're, you're year before you're 00:09:36.549 --> 00:09:38.889 breaking ground even on the site development 00:09:38.889 --> 00:09:40.789 on the site work your year and you're trying 00:09:40.789 --> 00:09:43.149 to conceptualize the plans so that's where i'm 00:09:43.149 --> 00:09:45.769 at on this particular project and then i have 00:09:45.769 --> 00:09:48.009 another project that's even farther upstream 00:09:48.009 --> 00:09:50.950 because that one is kind of in the same area 00:09:50.950 --> 00:09:54.450 has a lot of the same objections is hemmed in 00:09:54.450 --> 00:09:57.029 by two existing neighborhoods one more high -end 00:09:57.029 --> 00:10:00.190 and then one You know, I don't see lowering because 00:10:00.190 --> 00:10:02.269 it's still really desirable area, but it's below 00:10:02.269 --> 00:10:04.230 its production It's below the median sales price 00:10:04.230 --> 00:10:06.370 that right neighborhood So we've got those two 00:10:06.370 --> 00:10:08.110 things kind of working either fit with us or 00:10:08.110 --> 00:10:10.730 against us And then I also have to figure out 00:10:10.730 --> 00:10:12.250 how I want to lay that out because I have to 00:10:12.250 --> 00:10:13.950 go to the city either way for a zoning change 00:10:13.950 --> 00:10:17.370 So do I maximize it? It'll only hold about 11 00:10:17.370 --> 00:10:20.409 to 12. I could probably hold 19 total It'd be 00:10:20.409 --> 00:10:22.350 a lot of site work, but practically it can hold 00:10:22.350 --> 00:10:25.299 probably up to 12 And if I did a custom, it could 00:10:25.299 --> 00:10:28.059 be down to three or four, just luxury infill 00:10:28.059 --> 00:10:30.779 homes. So where do I go? So I'm going to shoot 00:10:30.779 --> 00:10:33.559 for the highest density possible, see if the 00:10:33.559 --> 00:10:36.340 city will let me do it, which would be, I don't 00:10:36.340 --> 00:10:37.679 want to say highest density possible because 00:10:37.679 --> 00:10:39.419 that'd be like around 19 or 20. So I'm going 00:10:39.419 --> 00:10:42.740 to shoot for 11, where it's like the most practical, 00:10:42.860 --> 00:10:45.799 highest density, that balancing act. And if they'll 00:10:45.799 --> 00:10:47.379 give me that kind of density, then we'll have 00:10:47.379 --> 00:10:51.059 11 homes approved with that 10 of the map. Then 00:10:51.059 --> 00:10:52.759 when I have that kind of clarity, then I can 00:10:52.759 --> 00:10:54.519 decide what kind of product is going to go there. 00:10:54.980 --> 00:10:57.179 So to get 11 homes are going to be like 35 by 00:10:57.179 --> 00:10:59.740 140 foot lots. So it's going to be a narrow home, 00:11:00.100 --> 00:11:01.720 about as wide as a garage and a front door. So 00:11:01.720 --> 00:11:03.080 you got to get real creative architecturally 00:11:03.080 --> 00:11:05.799 on the second floor to make it stand out. And 00:11:05.799 --> 00:11:08.399 then you have to pick your spec level to say, 00:11:09.120 --> 00:11:11.340 well, that's, I mean, there's some views there 00:11:11.340 --> 00:11:12.659 because you're getting farther up the mountain. 00:11:12.659 --> 00:11:14.919 When you're at that point, uh, the road is not 00:11:14.919 --> 00:11:18.159 as busy. It's about a quarter mile up. So, um, 00:11:18.159 --> 00:11:21.159 but it is also a right turn only U -turn. There's 00:11:21.159 --> 00:11:23.779 some objections there and you gate it. Do you 00:11:23.779 --> 00:11:25.259 not? So the reason I don't mean to dodge your 00:11:25.259 --> 00:11:26.960 question, but if you're going to do those things, 00:11:27.299 --> 00:11:29.600 if you're going to gate it, if you're going to 00:11:29.600 --> 00:11:31.840 make it an 11 home HOA, it's going to have high 00:11:31.840 --> 00:11:35.100 HOA fees because it's divided over only 11 homes. 00:11:35.539 --> 00:11:37.519 Then you better have a home that's going to carry 00:11:37.519 --> 00:11:39.899 that kind of HOA and then you better make it 00:11:39.899 --> 00:11:41.940 worth it to have it gated. So you probably need 00:11:41.940 --> 00:11:46.240 to maximize your building pads to get 29, 3 ,200 00:11:46.240 --> 00:11:48.700 square foot homes, maybe even do a third floor. 00:11:49.120 --> 00:11:51.120 Rec room observation deck because there are some 00:11:51.120 --> 00:11:53.480 views up there said pump up the square footage. 00:11:53.659 --> 00:11:56.539 So those are the decisions that I can't really 00:11:56.539 --> 00:11:59.240 get my head around it right now, but I want to 00:11:59.240 --> 00:12:01.460 go into that into that price point. You know 00:12:01.460 --> 00:12:03.600 what? I want to be at that one, one, two, one, 00:12:03.620 --> 00:12:06.059 three. So I'll just have to see if the city says 00:12:06.059 --> 00:12:08.039 you can only do seven in the lot while it's become 00:12:08.039 --> 00:12:12.000 a lot wider. And they're larger, lower density. 00:12:12.120 --> 00:12:13.899 Maybe I can push it to one vibe, but there is 00:12:13.899 --> 00:12:16.210 a number where I just, no matter how Even if 00:12:16.210 --> 00:12:17.850 I just did one home there, it's still going to 00:12:17.850 --> 00:12:20.889 hit some resistance. So there's just kind of 00:12:20.889 --> 00:12:22.830 that balancing act and that one is as far upstream 00:12:22.830 --> 00:12:25.529 as you can get. It's raw land and I'm working 00:12:25.529 --> 00:12:27.870 with the zoning changes as we speak. The engineers, 00:12:28.029 --> 00:12:31.049 we're going to have our tentative map by Monday. 00:12:31.409 --> 00:12:33.370 Oh, okay. So we'll have that submitted to the 00:12:33.370 --> 00:12:35.009 city and then we get comments back about two 00:12:35.009 --> 00:12:37.149 weeks later where they'll say, oh, too many homes. 00:12:37.690 --> 00:12:39.110 We don't like this. We don't like that. We're 00:12:39.110 --> 00:12:41.190 worried about the traffic on Horizon Ridge and 00:12:41.190 --> 00:12:43.409 the right turn only. And we're just We have these 00:12:43.409 --> 00:12:45.490 reservations. Could you do, could you either 00:12:45.490 --> 00:12:47.730 address these things or could you do eight or 00:12:47.730 --> 00:12:49.950 could you do seven? And then it'll change. It'll 00:12:49.950 --> 00:12:53.009 change what I put there. So those are the, that's 00:12:53.009 --> 00:12:55.690 the decision making. So I already risk on your 00:12:55.690 --> 00:12:57.909 part. You're just making decisions that had, 00:12:57.929 --> 00:13:00.990 like you said, upstream so far upstream from 00:13:00.990 --> 00:13:02.710 where the boats will actually float. Right. You're 00:13:02.710 --> 00:13:06.120 really making decisions. Right. Guessing that 00:13:06.120 --> 00:13:08.100 you've been any times and they're educated guesses. 00:13:08.100 --> 00:13:10.360 You've done it enough times. I have to know but 00:13:10.360 --> 00:13:12.980 there's still some uncertainty in it and a risk. 00:13:14.159 --> 00:13:17.720 It's a lot of uncertainty and we're talking on 00:13:17.720 --> 00:13:19.899 the one we just mentioned. Now we're talking 00:13:19.899 --> 00:13:22.460 some of those cells might the last four or five 00:13:22.460 --> 00:13:25.720 might easily be in 27 could easily be summer 00:13:25.720 --> 00:13:28.360 of 27. I'm not going to build all 11 at once. 00:13:28.360 --> 00:13:30.740 I will flood the market. So yeah, I might deliver 00:13:30.740 --> 00:13:35.440 some in 26 even that's really aggressive. Depending 00:13:35.440 --> 00:13:38.120 depending how much infrastructure there is and 00:13:38.120 --> 00:13:39.659 how much land moving you have to do in order 00:13:39.659 --> 00:13:41.419 to make the lots accommodate what you're talking 00:13:41.419 --> 00:13:43.740 about. It's a lot. It could be. It's time consuming. 00:13:44.679 --> 00:13:46.539 If you want to know how time consuming, you can 00:13:46.539 --> 00:13:52.279 go back to our codes episode. I know everyone's 00:13:52.279 --> 00:13:53.960 chomping at the bed to go to that codes episode. 00:13:55.580 --> 00:13:57.580 We also talked a lot about the timeline. We did. 00:13:57.600 --> 00:13:59.679 Not the bill to sue primarily, but on the timelines 00:13:59.679 --> 00:14:02.679 in general. It is. And our subdivisions episode 00:14:02.679 --> 00:14:04.460 as well, we talked about how long it takes to 00:14:04.460 --> 00:14:06.580 get through a tentative map and entitlements 00:14:06.580 --> 00:14:08.720 and zoning changes and civil improvement plans 00:14:08.720 --> 00:14:11.519 and public works and department of transportation. 00:14:11.899 --> 00:14:13.340 And thankfully these aren't affected by that. 00:14:13.399 --> 00:14:16.100 It's a city road, not a state road, but there's 00:14:16.100 --> 00:14:18.279 always something, there's always some weird thing 00:14:18.279 --> 00:14:20.289 that has a hillside overlay most likely. we'll 00:14:20.289 --> 00:14:23.049 see, which requires a lot more studies. We'll 00:14:23.049 --> 00:14:25.549 have to 3D map the slope. We'll have to say how 00:14:25.549 --> 00:14:28.970 many dead sage brushes we're removing and how 00:14:28.970 --> 00:14:31.690 many desert hairs we're removing and desert tortoises 00:14:31.690 --> 00:14:34.669 and scorpions and beetles might be displaced. 00:14:34.990 --> 00:14:39.389 Yeah. Yeah. So there's going to be, it's a developing 00:14:39.389 --> 00:14:41.909 story. About a six month timeline for that hillside 00:14:41.909 --> 00:14:45.090 overlay. Yeah. You can do other things during 00:14:45.090 --> 00:14:47.970 that time. So yeah, it's yeah. But more or less 00:14:47.970 --> 00:14:49.309 by the time you're through it all, by the time 00:14:49.309 --> 00:14:51.980 you do the 3D mapping and send it through and 00:14:51.980 --> 00:14:54.139 do all those studies. And it's probably, I don't 00:14:54.139 --> 00:14:57.360 know, in the order of around $50 ,000 worth of 00:14:57.360 --> 00:15:00.460 additional engineering and surveys and statements 00:15:00.460 --> 00:15:02.759 and legal fees. And it's usually advised to get 00:15:02.759 --> 00:15:05.259 a lawyer through those things, not in that adversarial 00:15:05.259 --> 00:15:08.059 position, but just to have a lawyer on your side, 00:15:08.519 --> 00:15:11.379 working you through it. Those are Those are the 00:15:11.379 --> 00:15:13.519 factors that affect the product and it's not 00:15:13.519 --> 00:15:15.899 that simple. It's not just oh, I've got this 00:15:15.899 --> 00:15:18.399 50 by 100 lot I think I'll put a 2 ,000 square 00:15:18.399 --> 00:15:20.840 foot home here and call it a day, right? And 00:15:20.840 --> 00:15:22.840 it's interesting because again, you know, it's 00:15:22.840 --> 00:15:25.580 kind of a pullback on the curtain now we're seeing 00:15:25.580 --> 00:15:27.740 some of those decisions that are made in advance 00:15:27.740 --> 00:15:30.320 and You know drive around town and you see the 00:15:30.320 --> 00:15:32.019 outcropping of homes pop up and you're like, 00:15:32.019 --> 00:15:34.179 oh that must have just started but to think about 00:15:34.179 --> 00:15:37.679 all of the time and it you know Right hours of 00:15:37.679 --> 00:15:40.679 thought in process and policy and all of those 00:15:40.679 --> 00:15:42.159 things and then like you're saying sort of a 00:15:42.159 --> 00:15:44.539 strategic pieces that you know if it were. pure 00:15:44.539 --> 00:15:47.240 homes. These will be the ramifications if you 00:15:47.240 --> 00:15:49.419 build a little bit larger homes these so all 00:15:49.419 --> 00:15:51.779 those pieces that go into it and all the brains 00:15:51.779 --> 00:15:54.240 and thoughts that have gone into it before it 00:15:54.240 --> 00:15:56.860 ever even starts to look like it could be a salt 00:15:56.860 --> 00:16:00.899 parcel. So it's interesting. Yeah, thanks for 00:16:00.899 --> 00:16:02.960 for the behind the scenes look. These are the 00:16:02.960 --> 00:16:05.279 kind of things that we hope to hear about and 00:16:05.279 --> 00:16:07.059 look forward to hearing more of them from you. 00:16:07.779 --> 00:16:09.860 Thanks to you guys for joining us on another 00:16:09.860 --> 00:16:12.559 episode of Trust the Process Podcast, and we 00:16:12.559 --> 00:16:14.340 will look forward to seeing you again next time. 00:16:15.039 --> 00:16:18.580 Thanks. Bye -bye. Thanks for tuning into the 00:16:18.580 --> 00:16:20.980 Trust the Process Podcast. Make sure to follow 00:16:20.980 --> 00:16:23.500 us on Spotify to stay in the loop with the latest 00:16:23.500 --> 00:16:26.120 insights, project updates, and everything in 00:16:26.120 --> 00:16:27.600 between. See you next time.