WEBVTT 00:00:00.000 --> 00:00:03.060 Ever wonder what really happens behind the scenes 00:00:03.060 --> 00:00:05.400 in construction, real estate and development? 00:00:06.040 --> 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 00:00:14.080 --> 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 00:00:19.640 --> 00:00:22.420 and let's build something great together. If 00:00:22.420 --> 00:00:26.980 we were to drop an alien into any major US city 00:00:26.980 --> 00:00:29.890 and you said Believe it or not, one of our scarcest 00:00:29.890 --> 00:00:33.210 assets as a city is our land. They would beam 00:00:33.210 --> 00:00:36.929 you up and shoot you into a comet. Especially 00:00:36.929 --> 00:00:38.689 in a state like Nevada, where you can get in 00:00:38.689 --> 00:00:40.869 the car and drive from here to Reno, northern 00:00:40.869 --> 00:00:43.229 Nevada, southern Nevada, and it's nothing but 00:00:43.229 --> 00:00:46.530 land. It's all land. Yeah, you can. Right. So 00:00:46.530 --> 00:00:49.250 it's something that I get asked a lot just in 00:00:49.250 --> 00:00:52.030 passing among friends and colleagues and people 00:00:52.030 --> 00:00:54.810 in the industry and people that I interact with. 00:00:55.390 --> 00:00:58.070 It's why, why is it said that there's a land 00:00:58.070 --> 00:01:00.729 shortage? So there's a lot of factors at play 00:01:00.729 --> 00:01:03.409 here. No one wants to live in a house with no 00:01:03.409 --> 00:01:04.989 running water. No one wants to live in a house 00:01:04.989 --> 00:01:08.109 with no electricity. So if you look at what limits 00:01:08.109 --> 00:01:11.010 a lot of development on the East Coast, it's 00:01:11.010 --> 00:01:13.870 a fragmented land ownership, right? Because all 00:01:13.870 --> 00:01:16.129 of that land is spoken for. Someone owns it. 00:01:16.269 --> 00:01:20.209 Most land east of the Mississippi is owned by 00:01:20.209 --> 00:01:23.939 private parties. Unless it's some sort of wildlife 00:01:23.939 --> 00:01:25.920 preserve or something that was maybe donated 00:01:25.920 --> 00:01:28.680 or something that was part of uh teddy roosevelt's 00:01:28.680 --> 00:01:30.959 push for national parks and there's definitely 00:01:30.959 --> 00:01:33.760 federal land east of the mississippi but for 00:01:33.760 --> 00:01:37.400 the most part land that is being developed east 00:01:37.400 --> 00:01:40.200 of the mississippi was bought by a private citizen 00:01:40.200 --> 00:01:44.200 and developed but why does all the raw land not 00:01:44.200 --> 00:01:47.730 just get developed then why what props up New 00:01:47.730 --> 00:01:50.790 York housing prices when there's so much raw 00:01:50.790 --> 00:01:53.730 land on Long Island when there's so much in Eastern 00:01:53.730 --> 00:01:56.129 Pennsylvania that could be a wonderful master 00:01:56.129 --> 00:01:59.430 plan suburb for New York City. Well a lot of 00:01:59.430 --> 00:02:03.629 it is infrastructure and the grid and the water 00:02:03.629 --> 00:02:06.090 grid I mean I'm not just the power grid but what 00:02:06.090 --> 00:02:08.349 what is the water supply look like what do we 00:02:08.349 --> 00:02:11.389 do with waste what do we do with streets where's 00:02:11.389 --> 00:02:13.689 the political will to spend money on improving. 00:02:14.379 --> 00:02:17.860 the roads and then making another exit ramp for 00:02:17.860 --> 00:02:21.780 a thousand rooftop master plan community outside 00:02:21.780 --> 00:02:24.400 of Philadelphia. Well, there's not much political 00:02:24.400 --> 00:02:26.300 will, right? Because people will say, why can't 00:02:26.300 --> 00:02:29.039 you improve my street corner? Why can't you improve 00:02:29.039 --> 00:02:31.919 my schools? Why are we building a new school 00:02:31.919 --> 00:02:35.960 for this community? So it is the land, but it 00:02:35.960 --> 00:02:39.219 is that land viable. Does that pencil out if 00:02:39.219 --> 00:02:42.539 you're building? That subdivision, let's say 00:02:42.539 --> 00:02:44.520 you're a master plan developer and you're putting 00:02:44.520 --> 00:02:47.719 a thousand or two thousand rooftops in What school 00:02:47.719 --> 00:02:49.319 district are they gonna go to? Are you going 00:02:49.319 --> 00:02:51.319 to fund those schools? Does the project still 00:02:51.319 --> 00:02:54.620 pencil if you do all that? Can you assemble enough 00:02:54.620 --> 00:02:57.560 land to make all that work? Can you assemble 00:02:57.560 --> 00:02:59.580 the capital? Can you deploy the capital? Can 00:02:59.580 --> 00:03:01.740 you get those things approved? Can you get the 00:03:01.740 --> 00:03:04.840 infrastructure in place? Do you have those headwinds? 00:03:04.860 --> 00:03:07.449 Are they insurmountable does the market? warrant 00:03:07.449 --> 00:03:09.849 the end -of -day sales price that it would take 00:03:09.849 --> 00:03:12.729 to get it to that. So that's why a lot of times 00:03:12.729 --> 00:03:14.810 on the East Coast you'll see much more spot building 00:03:14.810 --> 00:03:17.349 because it just doesn't make sense. It's too 00:03:17.349 --> 00:03:20.409 much to ask of a local jurisdiction. It's also 00:03:20.409 --> 00:03:22.990 much more fragmented back there. The landowners 00:03:22.990 --> 00:03:25.770 don't want to part with their land if the value 00:03:25.770 --> 00:03:27.629 of it is a tenth of what they thought because 00:03:27.629 --> 00:03:30.930 it's just not a commercially viable venture to 00:03:30.930 --> 00:03:35.610 develop it into whatever it is. You think about 00:03:35.610 --> 00:03:38.610 how few players there are in any industry and 00:03:38.610 --> 00:03:40.490 in our other episode where we talked about how 00:03:40.490 --> 00:03:42.509 many publicly traded home builders there are 00:03:42.509 --> 00:03:45.870 just nationwide and how many homes they put out 00:03:45.870 --> 00:03:49.430 and how much they can corner the market. One 00:03:49.430 --> 00:03:52.509 large publicly traded company in our market controls 00:03:52.509 --> 00:03:56.050 about 20 % of new rooftops and I won't name them, 00:03:56.409 --> 00:04:00.139 but it starts with a D and ends with an R. And 00:04:00.139 --> 00:04:06.039 they control about 20 % of our market. So yes, 00:04:06.180 --> 00:04:08.379 the free market should regulate everything, but 00:04:08.379 --> 00:04:10.280 that's with the assumption that there's enough 00:04:10.280 --> 00:04:14.680 choice in the market to allow customers to vote 00:04:14.680 --> 00:04:17.100 with their feet and to say, well, you don't build 00:04:17.100 --> 00:04:19.360 a sound home, so I'm going to choose this other 00:04:19.360 --> 00:04:22.740 home. So I understand the need for regulation. 00:04:23.079 --> 00:04:26.279 And I do love the idea that homes are better 00:04:26.279 --> 00:04:29.560 today than they were 30 or 40 years ago. And 00:04:29.560 --> 00:04:31.879 I appreciate the energy, the leaps and bounds 00:04:31.879 --> 00:04:36.060 we've made with energy efficiency and how much 00:04:36.060 --> 00:04:38.680 more earthquake resistant, fire resistant, weather 00:04:38.680 --> 00:04:42.220 resistant, age resistant our structures are today 00:04:42.220 --> 00:04:45.779 versus even 40 years, 30 years in the past, let 00:04:45.779 --> 00:04:48.920 alone 100 years in the past, where the adage 00:04:48.920 --> 00:04:50.399 of they don't build them like they used to, which 00:04:50.399 --> 00:04:52.689 makes my Hit the hair on the back of my neck 00:04:52.689 --> 00:04:55.670 stand up because tear apart at home built from 00:04:55.670 --> 00:04:58.910 1955 that thing is built out of cardboard and 00:04:58.910 --> 00:05:02.870 Paper that is not I'm grateful. They're not built 00:05:02.870 --> 00:05:05.490 like that You could punch a hole in the siding 00:05:05.490 --> 00:05:07.209 and your fist would go through into the bedroom. 00:05:07.589 --> 00:05:10.290 Sometimes they didn't even have insulation. So 00:05:10.290 --> 00:05:14.389 We're looking at the other extreme of it. I understand 00:05:14.389 --> 00:05:18.029 and I have to take a step back and breathe as 00:05:18.029 --> 00:05:23.779 to Give us to give myself Context in terms of 00:05:23.779 --> 00:05:26.860 why we have these regulations and you can't you 00:05:26.860 --> 00:05:31.339 can't count on the free market to iron all those 00:05:31.339 --> 00:05:34.839 hiccups out take a trip to a third world country 00:05:34.839 --> 00:05:39.879 and get in a 1984 Sentra that is your uber driver 00:05:39.879 --> 00:05:43.129 and drive through those streets and alleyways 00:05:43.129 --> 00:05:45.509 that are not regulated some are seven feet wide 00:05:45.509 --> 00:05:47.970 and some are 70 feet wide and The structures 00:05:47.970 --> 00:05:49.889 that are built over top of each other with the 00:05:49.889 --> 00:05:52.110 laundry hanging out and you think well I don't 00:05:52.110 --> 00:05:55.189 want zero regulation because this is what it 00:05:55.189 --> 00:05:58.629 looks like And just the standardized right there's 00:05:58.629 --> 00:06:01.290 a just just to know that that there is a general 00:06:01.290 --> 00:06:03.629 safety component That's been considered before 00:06:03.629 --> 00:06:05.990 that's right. That's right. It does give you 00:06:05.990 --> 00:06:09.699 a great sense of comfort to know that so Well, 00:06:09.839 --> 00:06:11.500 we're doing it temporary while we're dealing 00:06:11.500 --> 00:06:14.339 with the temporary pain of building the structure, 00:06:14.800 --> 00:06:18.120 which is a nine to 18 month process. We have 00:06:18.120 --> 00:06:20.279 to think that structure is going to be there 00:06:20.279 --> 00:06:24.220 for 100 to 200 to 300 years. We don't know. And 00:06:24.220 --> 00:06:26.879 there's homes in England that are 500, 600 years 00:06:26.879 --> 00:06:32.060 old. So I understand why. And I, and I, I want 00:06:32.060 --> 00:06:34.439 to, I wanted to give our viewers that context 00:06:34.439 --> 00:06:38.339 that I, I'm not anti -regulation. I love. the 00:06:38.339 --> 00:06:40.800 idea that we have better building standards today 00:06:40.800 --> 00:06:44.779 than we did even 20, 25 years ago. So that being 00:06:44.779 --> 00:06:49.100 said, I want to trash the coats for once. No, 00:06:49.120 --> 00:06:50.819 I think that's a good point to make though. I 00:06:50.819 --> 00:06:53.740 mean, it isn't an anti -regulation. It's a brutal 00:06:53.740 --> 00:06:56.740 crossing. It is. And I think what does get a 00:06:56.740 --> 00:06:59.379 little frustrating is that there's never a push 00:06:59.379 --> 00:07:03.980 to cut any regulations at all. That is so unpopular. 00:07:04.399 --> 00:07:09.079 And there's really no will In the regulatory 00:07:09.079 --> 00:07:12.000 agencies, because by doing that, they're shrinking 00:07:12.000 --> 00:07:14.920 their footprint. So the Department of Building 00:07:14.920 --> 00:07:18.740 and Safety wants robust codes. It's job security. 00:07:19.439 --> 00:07:23.360 And most home building permits are minimum of 00:07:23.360 --> 00:07:28.180 $5 ,000. You really could go up to 12, 15, 18, 00:07:28.319 --> 00:07:31.439 $20 ,000. And you look at a municipality like 00:07:31.439 --> 00:07:33.920 Clark County, now it's broken up. Sometimes the 00:07:33.920 --> 00:07:35.660 City of Henderson gets that permit fee or, you 00:07:35.660 --> 00:07:37.420 know, there's always County always collects a 00:07:37.420 --> 00:07:39.360 certain impact fee, but there's always something 00:07:39.360 --> 00:07:43.199 collected on every rooftop. And we know that 00:07:43.199 --> 00:07:47.920 last year we built around 12 ,500 rooftops by 00:07:47.920 --> 00:07:52.500 10 ,000 and my math doesn't even go. My mind 00:07:52.500 --> 00:07:54.819 doesn't work in numbers that commas that long. 00:07:55.240 --> 00:07:57.639 So I think that we have to remember that there 00:07:57.639 --> 00:08:02.019 are some perverse motives that people don't want 00:08:02.019 --> 00:08:04.560 to see regulations, any regulations roll back. 00:08:04.560 --> 00:08:08.279 In fact, They have a vested interest in increasing 00:08:08.279 --> 00:08:11.420 regulations, and I feel that certain agencies 00:08:11.420 --> 00:08:16.839 locally might exist for that purpose, and you 00:08:16.839 --> 00:08:19.060 might see them growing for the sake of growth. 00:08:19.639 --> 00:08:22.519 So I thought of something last week that I found 00:08:22.519 --> 00:08:28.519 exceptionally clever, but you might not. Regulations, 00:08:28.860 --> 00:08:31.000 i .e. building codes in our industry, is kind 00:08:31.000 --> 00:08:34.129 of like a garden, and once you plant it, the 00:08:34.129 --> 00:08:36.669 garden just keeps growing and germinating a bigger 00:08:36.669 --> 00:08:40.289 garden right and of course it wants to grow bigger 00:08:40.289 --> 00:08:43.750 it's just naturally plants and weeds want to 00:08:43.750 --> 00:08:47.730 grow it's not all crop it's just growth so if 00:08:47.730 --> 00:08:50.250 you have a garden and you're watering it it'll 00:08:50.250 --> 00:08:52.950 grow it might not be the stuff you want so you 00:08:52.950 --> 00:08:55.590 could make a case for that garden and say it's 00:08:55.590 --> 00:08:57.409 choked out by the weeds and that's kind of how 00:08:57.409 --> 00:09:00.309 i feel that many times when i'm scratching my 00:09:00.309 --> 00:09:02.899 head or Beating my head against the wall quite 00:09:02.899 --> 00:09:05.919 frankly. I wish I was only scratching it. It's 00:09:05.919 --> 00:09:10.940 not It's a lot of that. It's feels like regulation 00:09:10.940 --> 00:09:14.039 and regulation for regulations sake and I think 00:09:14.039 --> 00:09:15.820 that that's where my biggest frustrations come 00:09:15.820 --> 00:09:19.840 from because I believe in the spirit of regulations 00:09:19.840 --> 00:09:22.299 and I believe in the spirit of building codes 00:09:22.299 --> 00:09:28.240 But I did a little exercise on our local Clark 00:09:28.240 --> 00:09:31.830 County building codes and what is referenced 00:09:31.830 --> 00:09:36.110 on a general set of stamped blueprints that I 00:09:36.110 --> 00:09:40.370 submit to the city. And without boring our readers, 00:09:40.929 --> 00:09:44.389 I'm going to bore them. 2021 International Building 00:09:44.389 --> 00:09:48.669 Code, 2018 Universal Mechanical Code, 2018 International 00:09:48.669 --> 00:09:52.470 Energy Efficiency Code, 2018 International Residential 00:09:52.470 --> 00:09:56.960 Code, 2018 Uniform Plumbing Code. 2021 International 00:09:56.960 --> 00:10:03.220 Wildland Urban Interface Code, 2021 International 00:10:03.220 --> 00:10:06.440 Fire Code, 2017 National Electric Code, and the 00:10:06.440 --> 00:10:10.899 2009 ICC, which is kind of an accessibility, 00:10:11.080 --> 00:10:13.519 how structures are accessible to the population. 00:10:13.860 --> 00:10:16.200 These all have to be referenced on a set of plans 00:10:16.200 --> 00:10:19.360 that we've reviewed these plans to these codes. 00:10:20.299 --> 00:10:22.659 Then I did a little exercise, if our audience 00:10:22.659 --> 00:10:28.600 is still awake. How many pages those codes encompass? 00:10:28.919 --> 00:10:32.379 Total. Okay. If you had to just guess all those 00:10:32.379 --> 00:10:34.360 codes, how many pages, if we printed them out, 00:10:34.360 --> 00:10:36.600 how many pages would all those codes take up? 00:10:37.440 --> 00:10:42.019 How many reams of paper? Yeah. I'd say probably 00:10:42.019 --> 00:10:45.100 500 pages. I mean, if you're looking, it would 00:10:45.100 --> 00:10:48.240 sum up to... You libertarian. There is no way 00:10:48.240 --> 00:10:55.639 in hell it's only 500 pages. There is no way. 00:10:55.840 --> 00:11:04.340 It is 4912 pages of code. 4912 pages of code. 00:11:04.759 --> 00:11:08.539 That's pages of code. If you printed out all 00:11:08.539 --> 00:11:12.440 the codes that I just mentioned, mind you, those 00:11:12.440 --> 00:11:15.840 are the codes in their entirety. All of our codes 00:11:15.840 --> 00:11:19.620 have a parentheses that says with local amendments. 00:11:20.240 --> 00:11:23.279 So 2021 international building code with local 00:11:23.279 --> 00:11:26.620 amendments. So that's saying, yes, all of these 00:11:26.620 --> 00:11:29.980 codes, we're also going to amend it to our codes 00:11:29.980 --> 00:11:32.799 that pertain to this. So the uniform plumbing 00:11:32.799 --> 00:11:36.919 code is something that is observed nationwide. 00:11:37.340 --> 00:11:39.100 But then Clark County, our local jurisdictions, 00:11:39.480 --> 00:11:41.500 your local jurisdictions are going to have additional 00:11:41.500 --> 00:11:44.679 overlays and amendments. On top of that, I would 00:11:44.679 --> 00:11:48.919 imagine that's another three, 400 pages. We're 00:11:48.919 --> 00:11:56.490 over 5 ,000 pages of code. The design process 00:11:56.490 --> 00:11:58.610 is when you have an architect revisions back 00:11:58.610 --> 00:12:00.370 and forth and back and forth, sign off on that 00:12:00.370 --> 00:12:02.610 set of architectures, and then it goes through 00:12:02.610 --> 00:12:06.600 all the engineering. Approximately five engineers 00:12:06.600 --> 00:12:09.460 that touched the home during the design process 00:12:09.460 --> 00:12:12.480 and the pre -permitting process. Concurrently, 00:12:12.580 --> 00:12:14.539 if you're in an HOA, while you're doing that, 00:12:14.720 --> 00:12:17.340 you're generally getting your HOA design review 00:12:17.340 --> 00:12:19.259 board to sign off on your design. So they take 00:12:19.259 --> 00:12:21.500 a long time. So you want to start that early? 00:12:21.500 --> 00:12:24.100 Usually, yeah. Once you have a set of plans, 00:12:24.179 --> 00:12:25.820 you're going to meet with your design review 00:12:25.820 --> 00:12:28.120 board and your HOA if you have one, and they're 00:12:28.120 --> 00:12:30.629 going to see if your plan's... kind of fit from 00:12:30.629 --> 00:12:32.450 a technical standpoint and then also do they 00:12:32.450 --> 00:12:34.450 match with the theme of the neighborhood and 00:12:34.450 --> 00:12:38.100 I have A lot of back and forth. And it can be 00:12:38.100 --> 00:12:40.019 a lengthy process. It can be a very lengthy process. 00:12:40.019 --> 00:12:42.179 And it depends on the criteria within that HOA. 00:12:42.200 --> 00:12:44.620 That's right. As you mentioned, some are really 00:12:44.620 --> 00:12:46.659 strict and some are a little more fluid. And 00:12:46.659 --> 00:12:48.419 often, we're building in an area where there 00:12:48.419 --> 00:12:51.159 isn't any HOA. Exactly. And those are, you're 00:12:51.159 --> 00:12:53.139 tailoring your homes to taste. And it's true 00:12:53.139 --> 00:12:55.840 free market at its best. Just saying, okay, what 00:12:55.840 --> 00:12:58.120 does the market want? And with construction, 00:12:58.419 --> 00:13:00.019 especially when you're in the pre -planning and 00:13:00.019 --> 00:13:02.000 in the pre -permitting phase, you're a solid 00:13:02.000 --> 00:13:04.500 18 to 24 months away from that home being sold. 00:13:05.680 --> 00:13:07.580 Probably three months before that, you're marketing 00:13:07.580 --> 00:13:08.860 it. So you're trying to predict where is the 00:13:08.860 --> 00:13:10.879 market going to be? What does the market want 00:13:10.879 --> 00:13:12.539 in terms of size and price point, number one? 00:13:12.620 --> 00:13:14.500 What does it want in terms of style, number two? 00:13:14.779 --> 00:13:16.919 And then once you parse it down from there, do 00:13:16.919 --> 00:13:19.059 they want next -gen living? Do they want space 00:13:19.059 --> 00:13:20.779 for mother -in -laws? Do they want four -car 00:13:20.779 --> 00:13:22.639 garages? Do they want accessory structures, depending 00:13:22.639 --> 00:13:25.240 on the scale and scope of the house? You're taking 00:13:25.240 --> 00:13:28.940 all that into consideration. Once you've signed 00:13:28.940 --> 00:13:31.870 off on everything, design -wise, As I mentioned, 00:13:32.110 --> 00:13:33.610 it sees five different engineers. It's going 00:13:33.610 --> 00:13:35.210 to see an electrical engineer to lay out the 00:13:35.210 --> 00:13:37.049 electrical schematic and do the load calculations. 00:13:37.750 --> 00:13:39.169 It's going to see a plumbing engineer that's 00:13:39.169 --> 00:13:40.750 going to draw where all the gas lines, waste 00:13:40.750 --> 00:13:42.929 lines, and supply lines go. It's going to have 00:13:42.929 --> 00:13:45.830 an HVAC, what we call a mechanical engineer. 00:13:45.929 --> 00:13:48.769 These plans are called MEPs. So that's three 00:13:48.769 --> 00:13:51.009 engineers right there. And then you'll have your 00:13:51.009 --> 00:13:52.970 structural engineer after your soils engineer. 00:13:53.049 --> 00:13:55.210 That's why I hesitated to say five, because you 00:13:55.210 --> 00:13:57.350 could argue it's six. because we have a soils 00:13:57.350 --> 00:13:59.889 engineer that goes out and bores the soil and 00:13:59.889 --> 00:14:02.029 does compaction tests and says, okay, your footers 00:14:02.029 --> 00:14:04.870 need to be this deep and your load bearing on 00:14:04.870 --> 00:14:06.470 this soil, maybe the soil needs to come out, 00:14:06.549 --> 00:14:08.690 which we call over -exing. You're over -excavating 00:14:08.690 --> 00:14:12.409 it and then putting it back at a more compacted. 00:14:12.610 --> 00:14:14.990 And usually having third party engineers test 00:14:14.990 --> 00:14:17.830 that during construction or watch it, what we 00:14:17.830 --> 00:14:20.980 call lifts. So usually every foot That's down 00:14:20.980 --> 00:14:22.379 the road. That's once we've broken ground. But 00:14:22.379 --> 00:14:24.120 those are the things that are called out during 00:14:24.120 --> 00:14:26.039 those tests between the structural engineer, 00:14:26.299 --> 00:14:28.259 talking with the geotechnical engineer, working 00:14:28.259 --> 00:14:30.379 along with the architect and the MEP engineer. 00:14:30.460 --> 00:14:32.639 So they all do need to talk to each other. And 00:14:32.639 --> 00:14:34.139 then the other engineer, the final engineer, 00:14:34.220 --> 00:14:35.860 would be your civil engineer is creating your 00:14:35.860 --> 00:14:37.860 grading plan and creating your site plan and 00:14:37.860 --> 00:14:39.240 showing where all the water is going to go and 00:14:39.240 --> 00:14:41.039 how the home is going to sit and how high the 00:14:41.039 --> 00:14:44.039 pad elevations are. And that's your last engineer. 00:14:44.120 --> 00:14:46.980 And then you submit that to the city and there's 00:14:47.039 --> 00:14:50.100 rigorous plan checks, you might spend another 00:14:50.100 --> 00:14:51.960 three to four months getting your building permit 00:14:51.960 --> 00:14:54.100 issued. So they're checking all those engineering 00:14:54.100 --> 00:14:56.879 designs and drawings and they're basically calling 00:14:56.879 --> 00:14:58.940 out things that either contradict the drawing 00:14:58.940 --> 00:15:01.379 or contradict one of the other professions drawing. 00:15:01.600 --> 00:15:04.240 or is not in code, or it's a labeling convention 00:15:04.240 --> 00:15:06.440 that is one of my biggest pet peeves when something 00:15:06.440 --> 00:15:08.720 gets sent back to you because it was just labeled 00:15:08.720 --> 00:15:10.799 wrong. And they fine -tooth comb it in a way 00:15:10.799 --> 00:15:13.820 that keeps everything in sync, but also this 00:15:13.820 --> 00:15:15.620 T wasn't crossed or this, you know, I mean, there 00:15:15.620 --> 00:15:18.759 are some really very meticulous that don't necessarily 00:15:18.759 --> 00:15:21.659 affect the end result, but certainly slow that 00:15:21.659 --> 00:15:25.320 portion of the process. 100%. And in our jurisdiction, 00:15:25.629 --> 00:15:28.230 They have 21 days once you submit things. So 00:15:28.230 --> 00:15:30.769 every time you get a correction, you've lost 00:15:30.769 --> 00:15:33.830 three weeks. So you pretty much start back and 00:15:33.830 --> 00:15:36.210 they definitely 21 days starts. It starts all 00:15:36.210 --> 00:15:38.110 over again and they reserve the right to find 00:15:38.110 --> 00:15:39.950 new things. And sometimes it's being reviewed 00:15:39.950 --> 00:15:42.289 by a different person. Many times it is things 00:15:42.289 --> 00:15:44.350 might not necessarily be something that just 00:15:44.350 --> 00:15:46.309 something that someone else stopped. Exactly. 00:15:46.309 --> 00:15:49.250 You can be wrong. Just hot point for that particular 00:15:49.250 --> 00:15:52.789 exactly so those are the biggest things that 00:15:52.789 --> 00:15:54.809 kind of slow us down so when we say it's six 00:15:54.809 --> 00:15:58.710 to ten months of pre shovel work you can see 00:15:58.710 --> 00:16:00.929 how quickly that adds up if you're spending a 00:16:00.929 --> 00:16:02.529 month just figuring out what you want to build 00:16:02.529 --> 00:16:04.690 there and then a month with your architect and 00:16:04.690 --> 00:16:06.429 then two to three weeks worth of revisions with 00:16:06.429 --> 00:16:08.850 that architect because what he sent back wasn't 00:16:08.850 --> 00:16:11.480 exactly what you had in mind or as time has progressed 00:16:11.480 --> 00:16:13.120 you've decided something else is important to 00:16:13.120 --> 00:16:15.340 you or you forgot about something so we're generally 00:16:15.340 --> 00:16:18.019 seeing it with the architect for two to two and 00:16:18.019 --> 00:16:19.519 a half months so we're already at three and a 00:16:19.519 --> 00:16:21.000 half months and then it's going to sit with the 00:16:21.000 --> 00:16:23.480 engineers and you'll have to have surveys done 00:16:23.480 --> 00:16:26.120 topographical surveys and soils testing and those 00:16:26.120 --> 00:16:29.980 things all take time and the 800 pound grill 00:16:29.980 --> 00:16:32.179 in the room is that they cost a lot of money 00:16:32.179 --> 00:16:34.379 at the end of the day we're looking at anywhere 00:16:34.379 --> 00:16:37.700 between 12 and 13 dollars per square foot so 00:16:37.700 --> 00:16:40.450 if i'm building a 4 000 square foot home I'm 00:16:40.450 --> 00:16:44.190 spending on the order of $60 ,000 before my permit. 00:16:44.509 --> 00:16:46.429 And then the permit is generally based on the 00:16:46.429 --> 00:16:48.669 size of the home, how many fixtures are in it. 00:16:48.990 --> 00:16:51.210 So your permit is in our market is generally 00:16:51.210 --> 00:16:54.549 on a home like that, another 8 to 10 ,000. And 00:16:54.549 --> 00:16:57.470 plan check fees are another 1 ,500. HOAs usually 00:16:57.470 --> 00:17:00.149 charge a fee. So on one of our luxury homes in 00:17:00.149 --> 00:17:02.450 South Shore and like Las Vegas is just an example 00:17:02.450 --> 00:17:05.230 between the HOA and the permitting and all of 00:17:05.230 --> 00:17:07.029 the professions that go into the engineering 00:17:07.029 --> 00:17:09.920 and architecture, it's around $100 ,000. before 00:17:09.920 --> 00:17:13.839 I move my first speck of dirt, $100 ,000. Just 00:17:13.839 --> 00:17:15.940 a home on paper, that's all. Just a home on paper 00:17:15.940 --> 00:17:19.279 plus a half a million dollar lot, or $400 ,000 00:17:19.279 --> 00:17:23.240 lot, right. So there's a lot of guts and glory 00:17:23.240 --> 00:17:26.700 that goes into before you've mobilized your first 00:17:26.700 --> 00:17:31.160 laborer on site. So it's definitely a trying, 00:17:31.380 --> 00:17:34.680 challenging industry. And then the horizon of 00:17:34.680 --> 00:17:37.299 time, you're looking at six to eight months, 00:17:37.299 --> 00:17:40.579 it takes a lot of patience. Thanks for tuning 00:17:40.579 --> 00:17:43.119 into the Trust the Process podcast. Make sure 00:17:43.119 --> 00:17:45.559 to follow us on Spotify to stay in the loop with 00:17:45.559 --> 00:17:48.319 the latest insights, project updates, and everything 00:17:48.319 --> 00:17:50.099 in between. See you next time.