WEBVTT

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Yeah, you're giving them choice. A lot of it's

00:00:03.629 --> 00:00:06.250
illusion of choice, like the small, medium, large

00:00:06.250 --> 00:00:09.109
jumbo popcorn at the movie theater. There really

00:00:09.109 --> 00:00:13.990
is no medium. It's the largest medium. But it

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pushes, right? It pushes you to jumbo. The jumbo's

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only 80 cents more. It makes us feel better.

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Yeah, exactly. It's only $0 .20. It's a dollar

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total. That's really what you're paying for,

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because the containers get a little more gross,

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but it's not really more. It just looks more

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impressive. You have more shame as you walk to

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your movie theater. Yeah, I'm going to eat this

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whole thing. Exactly. This is for the whole row.

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It's not just one. It's a whole row. I was going

00:00:38.960 --> 00:00:43.100
to share with everybody. Ever wonder what really

00:00:43.100 --> 00:00:45.780
happens behind the scenes in construction, real

00:00:45.780 --> 00:00:48.560
estate, and development? We pull back the curtain

00:00:48.560 --> 00:00:51.039
on the new home construction industry, the real

00:00:51.039 --> 00:00:53.399
estate market, and the trends shaping it all.

00:00:53.799 --> 00:00:56.460
Discover the stories, insights, and expertise

00:00:56.460 --> 00:00:59.119
behind the process of building a new home. Join

00:00:59.119 --> 00:01:02.100
us for Trust the Process podcast, and let's build

00:01:02.100 --> 00:01:12.980
something great together. Either way. Could we

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go, could we go three steps to our height limit

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or could that be? Yeah, we can go up to 31. So

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we can do a nine, eight and eight with two foot

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trusses. And then we probably on that product

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would have to do a flat roof or just do a really

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small gable just to not hit. Cause it's 31 to

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the peak of the roof. Oh, okay. Yeah. So the

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structure, structure height, not from the ground.

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So from your finished floor up. Yeah. So you

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don't have to, you don't have to account for

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the thickness of the slab or the. the pad elevation.

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Oh, that's interesting. I didn't even know that.

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Yeah. I didn't know that when we were, yeah,

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when you're looking at the threshold for how

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tall a building can be. I didn't realize. Well,

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where, where do you start? Where is the starting

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point? Yeah. There's a world there. So I'm debating

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all these things right now and I would never

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go all through store in this community, but I

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would love to maybe throw that offering in to

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go, you know, to have a larger product. And it

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might not even be, it might not be a suit, you

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know, in terms of price or spend or any of those

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pieces, but just to know that you have a little

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bit of opportunity. If you wanted to do a two

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story or three story, then it gives you, if you

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were looking for the extra square footage, that's

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one way to get it on a 24 foot. Yeah. Exactly.

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Right. Cause right now I think we're maxed out

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with that envelope. If you get a one car garage,

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the biggest you can get is around 1400, I think

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the math. And I have to talk to the engineer,

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I have to talk to zoning. Can I overhang the

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back? of the structure, you know, a foot or two

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feet. Can I overhang it from the front to create

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a shelter over the garage, but also some square

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footage on the second floor? When you drive through

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a production neighborhood, you see these in all

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50, or anywhere where they build production homes,

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you'll see these little tricks. Maximize your

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slabs, maximize your footprints, and get as much

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square footage. And ultimately people appreciate

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it because they need the square footage in that

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space. And it doesn't really materially add to

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the cost of the home. So all these little tricks

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that we'll do, but again, that's a zoning thing.

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Cause certain zoning overlays have, okay, if

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you have this kind of height, the second floor

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is to push in the third floor. There's just certain

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restrictions that you just can't always do a,

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a Brownstone basically. Right. Well, then you

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wouldn't want to I mean from an aesthetic perspective

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for it not only does that extra two feet that

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it bumps out Make the front of the home a little

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better and give you that extra square footage

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inside There's something about the appeal of

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a community when that you know when there's some

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dimension to a home Yes, yeah, yeah, that's why

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you add different colors and bump outs and trim

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around the way, you know You want it to have

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a little bit of interest in some character? Yeah,

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I've thought of it even that as you mentioned

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and I would love to maybe build row houses and

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they're built that way. They're built with bay

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windows. They're built like East Coast row houses

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where they, this one has red brick and this one

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has clapboard and this one has cedar shakes.

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It would be neat. We'll see if the market will

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bear. When I talk about what can trust add, it's

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flair. These are the things I'm talking about.

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Double stack cabinets in the uppers. You might

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only have three uppers in the entire kitchen.

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Let's double stack them. Let's include a backsplash.

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You know, we're going to buy 24 houses for the

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backsplash. Let's just include it. It costs us

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a thousand dollars. And then, you know, we find

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that people really appreciate those things. So

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backsplash or even we toured a home recently

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where they had that little kind of the section

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window in the backsplash area between the cabinet

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and the countertop. And it's just that little

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bit of extra light that made the whole kitchen

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feel so much bigger. It was a tiny space, but

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just giving some of that dimension a little bit

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of extra flair. And like you said, that's kind

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of. you know, little touches that might not ordinarily

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be found in that, necessarily in that entry -level

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product. Right. Some unexpected. Yeah, hey, you

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know, they say, I can't remember who said it.

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I think it was a fast food magnet. It said, you

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should always... delight your customers. So I

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kind of think of these things when I'm drawing

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plans, like when I was working on our Westridge

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product this weekend. Okay, how can we delight

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this customer? Okay, I'm going to give prep kitchens

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to four of the five houses. I'm going to do pool

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bathrooms. That's cool. I'm doing 12 foot ceilings

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on the first floor to switch gears a little bit

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on the Westridge. That's what we're doing to

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pull back the curtain. That's something that

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I worked on this weekend. It's going to be gorgeous.

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Yeah. What if you can have transom windows over

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interior door openings? I mean, think about the

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things that a 12 -foot lid will open up for us.

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Transoms over the windows. The sliders can go

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to 10 feet instead of 8 feet. I mean, there's

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all these little things that going to 12 will

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really help. And it's an area that... You're

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not seeing that in that price point. If we want

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to target one three to one five, you're not seeing

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that. Our nearest competitor, Richmond, American,

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built a 15 -home infill community that you can

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see from this neighborhood. And I did a deep

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dive into them before I scrapped all 50 homes

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I've drawn for this community. There's only five

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houses. I've drawn 50 of them. I scrapped every

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single one of those houses, Christa. Not one

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house has survived. But I did a deep dive on

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Friday. No, I'm done. I'm done now. You're done.

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But you were back to square one before you...

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We were. Friday afternoon, I was back to square

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one. Oh, I didn't know you were there. Yeah,

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I scrapped everything. I scrapped... Not even

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a set, so you did have a crazy weekend. I did.

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Yes, you were in the zone all weekend. I was

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in the zone. I did six hours of CE too, which

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don't tell Keegan that I was working anything

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else. But... Welcome back to Trust the Process,

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podcast where we talk about the new home industry,

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real estate, construction, and all things in

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between. Hello, Michael. Hello. Hi. Today we

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are going to have a little conversation about

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a couple of projects that we have going, a bit

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of a wrap -up on the year, and kind of see where

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the conversation takes us. So I know you have

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a few interesting tidbits that you'd like to

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share, so I'll let you take it over. Thank you.

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Well First let's talk about kind of the year

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wrap for the company and the market and then

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we can get into the weeds on some interesting

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new developments in our in our developments and

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Yeah, kind of hit on everything so The market

00:07:28.509 --> 00:07:30.850
it's obviously too early to tell a lot of the

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data won't be out till January my year -end data,

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but we have been working in this market on our

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brokerage business and in our build business,

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we feel a shift. We felt a shift this year into

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the softest market that I remember probably back

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to maybe 2019 or even softer still maybe 2015.

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If I think about the feeling of the market, no

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metrics, just the feeling. Really? You'd go all

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the way back to 2015? Think about what The production

00:08:02.759 --> 00:08:04.579
builders are throwing at buyers when I think

00:08:04.579 --> 00:08:07.319
about the price reductions and I think about

00:08:07.319 --> 00:08:10.060
days on market, when I think about concessions,

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when I look at just gross inventory numbers,

00:08:14.459 --> 00:08:16.860
yeah, it's different. 15 definitely had higher

00:08:16.860 --> 00:08:20.000
inventory, but it's also slower sales pace because

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there are just fewer buyers. And what's funny

00:08:22.740 --> 00:08:26.220
is that 25 undoubtedly will be a kind of a bummer

00:08:26.220 --> 00:08:30.279
year of this decade, right? 20 was great. 21

00:08:30.279 --> 00:08:32.139
is phenomenal in terms of sales price is not

00:08:32.139 --> 00:08:35.519
great for buyers. 22 held strong through rates.

00:08:35.840 --> 00:08:40.639
23 held strong. 24 cooled, but was still better

00:08:40.639 --> 00:08:43.559
than 25. Saw more price appreciation. We'll get

00:08:43.559 --> 00:08:45.519
the numbers, you know, January where the year

00:08:45.519 --> 00:08:48.879
ended, but still saw more appreciation that year.

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And the funny thing is rates are almost on average

00:08:53.419 --> 00:08:57.049
a whole point lower. overall in 25 versus where

00:08:57.049 --> 00:09:00.990
they were in 24. So we saw a, what does that

00:09:00.990 --> 00:09:04.389
come out to? Like a 15 % improvement in rates,

00:09:04.470 --> 00:09:07.509
in mortgage rates. It's hard to quantify that,

00:09:07.509 --> 00:09:09.049
but if you think about it, that's really what

00:09:09.049 --> 00:09:11.389
it came down to. Like a sixth, your interest

00:09:11.389 --> 00:09:15.490
costs were a sixth cheaper in 2025 versus 2024.

00:09:16.470 --> 00:09:19.070
Yeah. And odd that that wasn't necessarily reflected

00:09:19.070 --> 00:09:22.070
in, you know, a surge of sales or people jumping

00:09:22.070 --> 00:09:24.690
back into the market immediately. Yes. In fact,

00:09:24.840 --> 00:09:27.700
the market went in the other direction, which

00:09:27.700 --> 00:09:30.720
is crazy to me that it didn't do any of that.

00:09:30.740 --> 00:09:34.019
We had more inventory. We had lower rates. You

00:09:34.019 --> 00:09:36.860
should have seen a banner year in sales because

00:09:36.860 --> 00:09:39.399
the conventional wisdom for the last two years,

00:09:39.399 --> 00:09:41.379
three years, well, even five years, go back to

00:09:41.379 --> 00:09:44.039
COVID. As the people were locked in, people were

00:09:44.039 --> 00:09:46.379
locked into their houses. People would have bought

00:09:46.379 --> 00:09:49.440
if they had inventory and 21 weeks off. If every

00:09:49.440 --> 00:09:51.419
buyer had a house to buy, their numbers would

00:09:51.419 --> 00:09:54.980
have been off the charts. I mean, prices were

00:09:54.980 --> 00:09:57.379
significantly lower in 21. Maybe that's part

00:09:57.379 --> 00:10:00.860
of it. So buyers have been priced out, and obviously

00:10:00.860 --> 00:10:03.899
rates are much higher, but it's just funny that

00:10:03.899 --> 00:10:08.519
it didn't materialize. The increase in inventory

00:10:08.519 --> 00:10:11.419
and some of the lowest rates in two years did

00:10:11.419 --> 00:10:14.980
not materially impact home sales. In fact, it's

00:10:14.980 --> 00:10:18.179
been rather sluggish and we're just sitting on

00:10:18.179 --> 00:10:21.860
more and more inventory. I heard, I don't know

00:10:21.860 --> 00:10:25.000
on what kind of authority, but a certain massive

00:10:25.000 --> 00:10:26.980
home builder in our market, in Las Vegas market,

00:10:27.620 --> 00:10:29.779
who normally builds around 2000 homes a year

00:10:29.779 --> 00:10:34.179
is planning on doing 1500 next year. A huge drop

00:10:34.179 --> 00:10:37.919
in inventory, huge drop in projections. And I

00:10:37.919 --> 00:10:40.240
think that this particular buyer doesn't do a

00:10:40.240 --> 00:10:42.039
lot of customization. So I'm sorry, builder,

00:10:42.200 --> 00:10:44.779
it doesn't do a lot of customization. So I would

00:10:44.779 --> 00:10:46.299
imagine the reason I bring that up is I would

00:10:46.299 --> 00:10:47.940
imagine most of their turnaround times are between

00:10:47.940 --> 00:10:51.700
four and six months. They're finishing homes

00:10:51.700 --> 00:10:53.799
now that they started in June when they might

00:10:53.799 --> 00:10:56.740
when we knew the market was soft So, you know

00:10:56.740 --> 00:10:58.840
shows you that okay, even they thought well,

00:10:58.840 --> 00:11:00.980
it's gonna be better market Yeah, it's slow start

00:11:00.980 --> 00:11:03.220
to the year, but let's keep our initial drive

00:11:03.220 --> 00:11:05.360
Let's do our 2 ,000 homes that we do every year

00:11:05.360 --> 00:11:08.279
and they still will finish her on 2 ,000 homes

00:11:08.279 --> 00:11:11.580
this year that particular builder and It shows

00:11:11.580 --> 00:11:13.620
you that they're planning on either having that

00:11:13.620 --> 00:11:16.399
much overhang inventory from 25 going into 26

00:11:16.399 --> 00:11:19.899
or they can they can see demand dropping even

00:11:19.899 --> 00:11:22.659
farther or what they see as today's demand is

00:11:22.659 --> 00:11:25.500
not adequate for their model to make it make

00:11:25.500 --> 00:11:28.399
sense. So - Interesting to see how that plays

00:11:28.399 --> 00:11:31.000
out in the number of permits pulled, starts,

00:11:31.279 --> 00:11:33.440
complete, you know, all of that. Yeah, that's

00:11:33.440 --> 00:11:36.580
like any reflected there. Yeah, this is the kind

00:11:36.580 --> 00:11:40.120
of data that I'm yearning for once the new year

00:11:40.120 --> 00:11:43.740
starts. And we normally start to see that kind

00:11:43.740 --> 00:11:47.149
of publish, you know. mid to late January. So

00:11:47.149 --> 00:11:49.169
we'll see Clark County permits, where all those

00:11:49.169 --> 00:11:52.750
numbers came in at and get a better feel. We

00:11:52.750 --> 00:11:54.629
should have some sales data. I know they're saying

00:11:54.629 --> 00:11:56.590
the average sales price of a new home is in the

00:11:56.590 --> 00:12:00.009
low 500s in our county and that tracks. It's

00:12:00.009 --> 00:12:01.750
high. I mean, of a new home, and you got to think

00:12:01.750 --> 00:12:03.649
there's, there's never been more multifamily

00:12:03.649 --> 00:12:06.730
for sale inventory than I ever remember. Period.

00:12:06.809 --> 00:12:09.149
Would you agree in Las Vegas? I agree. A lot

00:12:09.149 --> 00:12:12.710
of builders are in that space. And I don't know,

00:12:12.889 --> 00:12:15.769
five years, I would say. Six years ago. I don't

00:12:15.769 --> 00:12:18.730
know that many were at all and now slowly each

00:12:18.730 --> 00:12:20.330
year They've all kind of started jumping into

00:12:20.330 --> 00:12:22.590
where all the builders are doing some a number

00:12:22.590 --> 00:12:25.250
see family exactly even our even told brothers

00:12:25.250 --> 00:12:27.769
I hate to name -drop but even our luxury builder

00:12:27.769 --> 00:12:30.309
is a lot of them. I think they have two minutes

00:12:30.309 --> 00:12:33.590
broader They have two or three in Summerlin I

00:12:33.590 --> 00:12:37.090
believe they're doing another one a fourth one

00:12:37.090 --> 00:12:41.049
in Summerlin It's wild for their premium. They're

00:12:41.049 --> 00:12:43.820
one and a half times the median sales price But

00:12:43.820 --> 00:12:46.860
doing what they can to get their sales prices

00:12:46.860 --> 00:12:49.100
to a position where people can afford to be in

00:12:49.100 --> 00:12:51.940
the market anymore. Right. That buyer who doesn't

00:12:51.940 --> 00:12:53.360
need the square footage doesn't need the yard,

00:12:53.460 --> 00:12:55.639
but still has a $750 ,000 or $800 ,000 budget.

00:12:57.059 --> 00:13:00.460
But that is the softest part of our market right

00:13:00.460 --> 00:13:04.519
now, our townhomes and condos. Of the new construction

00:13:04.519 --> 00:13:06.879
side, the resale stuff is generally so cheap

00:13:06.879 --> 00:13:10.019
being to get a condo for 250 ,000 in a nice neighborhood

00:13:10.019 --> 00:13:12.200
and good condition. Yeah, those are still going,

00:13:12.440 --> 00:13:15.820
but $350 ,000 new construction townhouse and

00:13:15.820 --> 00:13:19.299
a subpar zip code, um, with average finishes.

00:13:19.700 --> 00:13:21.620
Yeah, there's a hundred, you throw a stone and

00:13:21.620 --> 00:13:24.919
hit a hundred of those. So what we're seeing

00:13:24.919 --> 00:13:27.820
now is unless you're in a really premium master

00:13:27.820 --> 00:13:31.019
plan, there were kind of. underbuilt on luxury,

00:13:31.100 --> 00:13:33.559
which we find ourselves in a pretty good spot

00:13:33.559 --> 00:13:37.539
being in that space because a lot of the builders,

00:13:37.659 --> 00:13:39.500
we even mentioned a luxury builder moments ago

00:13:39.500 --> 00:13:41.960
that has pivoted, still has a luxury presence,

00:13:42.019 --> 00:13:43.940
but has pivoted some, at least some other bandwidth

00:13:43.940 --> 00:13:47.200
to a multifamily kind of move up level one or

00:13:47.200 --> 00:13:49.659
a downsize from a move up four, you know, someone

00:13:49.659 --> 00:13:51.620
maybe on their fourth move up home sells and

00:13:51.620 --> 00:13:54.320
moves to Las Vegas or moves within state and,

00:13:54.320 --> 00:13:58.200
um, and buys something like that. So, uh, we're

00:13:58.200 --> 00:14:01.879
seeing that some of the builders that had a high

00:14:01.879 --> 00:14:05.039
presence in luxury are shifting. And some of

00:14:05.039 --> 00:14:07.519
the luxury builders that we're building in big

00:14:07.519 --> 00:14:10.100
scale have pulled back on their starts and their

00:14:10.100 --> 00:14:12.899
projections. And in some of our areas, we're

00:14:12.899 --> 00:14:17.220
hoping to kind of fill that market, which is

00:14:17.220 --> 00:14:19.700
why I've decided to take those two subdivisions

00:14:19.700 --> 00:14:24.299
in Henderson to more luxury. Because I think

00:14:24.299 --> 00:14:26.360
that there's going to be a hole in the market.

00:14:26.759 --> 00:14:30.799
in, in 2026, that especially these infill projects,

00:14:30.960 --> 00:14:32.840
there's not much new construction in these areas

00:14:32.840 --> 00:14:36.279
that I'm mentioning, except custom seven to $15

00:14:36.279 --> 00:14:39.259
million homes behind guard gates. So I think

00:14:39.259 --> 00:14:44.039
that, that is always a recipe for, for success.

00:14:44.200 --> 00:14:46.659
If you can kind of be in that infill number one,

00:14:46.740 --> 00:14:48.700
number two, and a product offering that there's

00:14:48.700 --> 00:14:51.000
not a lot of resales in. Or if you can build

00:14:51.000 --> 00:14:53.379
a product that looks nothing like any resell

00:14:53.379 --> 00:14:56.559
has 12 foot ceilings on the main 10 foot on the

00:14:56.559 --> 00:14:59.000
second has takes advantage of views. Cause every

00:14:59.000 --> 00:15:02.080
home is custom, a true custom enclave. And I

00:15:02.080 --> 00:15:04.580
think that that's where we need to take our projects.

00:15:05.379 --> 00:15:07.159
Um, with the exception of a new one that we'll

00:15:07.159 --> 00:15:09.240
talk about when we get into what the company's

00:15:09.240 --> 00:15:12.100
done this year. Um, but for the most part, when

00:15:12.100 --> 00:15:13.720
we're doing it on Serene and we try to do that

00:15:13.720 --> 00:15:16.620
in Lake Las Vegas, we try to curate a home. to

00:15:16.620 --> 00:15:19.500
that lot and we have some replication, but for

00:15:19.500 --> 00:15:22.220
the most part it's unique site conditions tailor

00:15:22.220 --> 00:15:25.679
the home to the, to the site. So that's where

00:15:25.679 --> 00:15:28.879
we're hoping to fill. I do think that we'll see

00:15:28.879 --> 00:15:33.440
that, you know, move up level two, uh, and luxury

00:15:33.440 --> 00:15:35.879
market continue to get smaller and smaller from

00:15:35.879 --> 00:15:38.299
a builder standpoint, because that's a business

00:15:38.299 --> 00:15:42.100
model that's very challenging for the national

00:15:42.100 --> 00:15:45.289
builders to know what that. move up buyer wants

00:15:45.289 --> 00:15:48.649
at scale. And to build a product compelling enough

00:15:48.649 --> 00:15:53.210
to sell 2 .5 to $3 million homes at in bulk,

00:15:53.330 --> 00:15:56.110
you know, basically at 80 to 100 home neighborhoods.

00:15:56.889 --> 00:15:59.929
We're still seeing super premium zip codes 89138.

00:16:00.090 --> 00:16:03.009
Best part of summer. Absolutely 135 North Shore

00:16:03.009 --> 00:16:04.850
of Lake Las Vegas. Yeah, you're still going to

00:16:04.850 --> 00:16:07.870
see those. But whereas we used to see large estate

00:16:07.870 --> 00:16:11.610
style. We know three times the median sales price

00:16:11.610 --> 00:16:13.950
by toll brothers and Richmond. You've seen a

00:16:13.950 --> 00:16:16.669
little bit of that Absolutely, but not the scale

00:16:16.669 --> 00:16:20.169
that we're that we were used to so I think that

00:16:20.169 --> 00:16:23.690
that should Give us good Intel on where we need

00:16:23.690 --> 00:16:25.529
to be as a company and where we need to take

00:16:25.529 --> 00:16:30.110
our product offering Love it. I wish I had more

00:16:30.110 --> 00:16:32.149
numbers. I don't have the numbers and you know,

00:16:32.149 --> 00:16:34.710
I love throw the numbers I know and a bit of

00:16:34.710 --> 00:16:37.409
a disadvantage. We're kind of anticipating we

00:16:37.610 --> 00:16:40.389
know what has happened. But without that number,

00:16:40.549 --> 00:16:42.190
there's nothing tangible to actually weigh it

00:16:42.190 --> 00:16:45.789
against. So exactly. I mean, I really close out

00:16:45.789 --> 00:16:50.029
and then release. And that makes sense. But it's

00:16:50.029 --> 00:16:52.830
right. Let's go. We're going off a feeling. And

00:16:52.830 --> 00:16:55.509
I do feel what I believe what I've just said

00:16:55.509 --> 00:16:57.409
will bear out in the numbers. And I think when

00:16:57.409 --> 00:16:59.590
you look at what multifamily has done, the funny

00:16:59.590 --> 00:17:03.409
thing is that pullback in multifamily for rent,

00:17:03.590 --> 00:17:06.529
meaning apartments is notable. So I almost feel

00:17:06.529 --> 00:17:08.750
like we just shifted those permits over, which

00:17:08.750 --> 00:17:11.609
is great because that's more homeownership. I

00:17:11.609 --> 00:17:14.769
hate the build the rent idea. I get it as a business

00:17:14.769 --> 00:17:17.130
model. It's a wonderful business model, but I

00:17:17.130 --> 00:17:20.809
hate it as a notion. So it's kind of encouraging

00:17:20.809 --> 00:17:23.250
to see production builders trying to get into

00:17:23.250 --> 00:17:25.210
that space and try to give homeownership to all

00:17:25.210 --> 00:17:29.680
levels of the price tiers. That being said, we

00:17:29.680 --> 00:17:33.799
will have a multi -family townhome project for

00:17:33.799 --> 00:17:35.579
sale that we have not even talked about, and

00:17:35.579 --> 00:17:37.200
we have not even released anything, but it'll

00:17:37.200 --> 00:17:42.380
be 24 townhouses in a infill part of town, let's

00:17:42.380 --> 00:17:45.539
put it that way, and we'll be targeting an entry

00:17:45.539 --> 00:17:49.319
-level price point. And we will do our best to

00:17:49.319 --> 00:17:51.440
bring the Trust Home Builders flair to that entry

00:17:51.440 --> 00:17:54.000
-level price point, but we're going to be constrained

00:17:54.000 --> 00:17:57.140
by... where material costs are and labor costs,

00:17:57.240 --> 00:17:58.799
bill costs. It's going to be very challenging,

00:17:58.819 --> 00:18:02.160
but I'm ready for the challenge to see what we

00:18:02.160 --> 00:18:04.660
can put in there and to see what it's like to

00:18:04.660 --> 00:18:07.720
build in that entry -level space. And can we

00:18:07.720 --> 00:18:09.359
give it - That's the big news, guys. We're announcing

00:18:09.359 --> 00:18:12.140
this. Yeah, see, that's it. It's big news. Yeah.

00:18:12.819 --> 00:18:16.099
So big news, things coming in our next year.

00:18:16.720 --> 00:18:19.299
Yeah, we'll probably break ground for that project.

00:18:20.299 --> 00:18:22.059
Mid to late September, we still have to do all

00:18:22.059 --> 00:18:24.160
the civil improvement plans, the utility laterals,

00:18:24.279 --> 00:18:26.519
all the horizontal control, all those things

00:18:26.519 --> 00:18:28.039
have to be done. For selling in 27, we think?

00:18:28.779 --> 00:18:31.500
Yeah, we might pre -sell. I mean, depends. If

00:18:31.500 --> 00:18:34.299
it goes as quickly as the engineering firm thinks

00:18:34.299 --> 00:18:36.380
it can go, we could be pre -selling in the end

00:18:36.380 --> 00:18:39.559
of 26. That's very ambitious. But we could. We

00:18:39.559 --> 00:18:42.140
could technically be open for sales by this time

00:18:42.140 --> 00:18:43.940
next year. It's a long shot, but we could be.

00:18:44.059 --> 00:18:45.900
Most likely, yes, our recording and our sales

00:18:45.900 --> 00:18:51.890
move -ins. Yeah, and Q2, 2027. So we're a ways

00:18:51.890 --> 00:18:54.569
off and we're targeting the middle $300 ,000

00:18:54.569 --> 00:18:57.130
sales price right now, hoping that that number

00:18:57.130 --> 00:18:59.789
is better by then or maybe rates are better and

00:18:59.789 --> 00:19:01.450
that number is the same, but it's more affordable

00:19:01.450 --> 00:19:04.690
for a greater number of people. I'd love to see

00:19:04.690 --> 00:19:09.210
it do very, very well, but I'm completely prepared

00:19:09.210 --> 00:19:12.029
for a scenario where we struggle and we sell

00:19:12.029 --> 00:19:14.970
three or four a month and that takes us 10 months

00:19:14.970 --> 00:19:18.900
to get out of there. Very possible. And admittedly,

00:19:19.559 --> 00:19:22.720
it will be, it will be a time of discovery. There's,

00:19:22.839 --> 00:19:24.740
I mean, we haven't built in that space before.

00:19:24.940 --> 00:19:27.319
So that whole multifamily zoning is different.

00:19:27.640 --> 00:19:29.359
Permits are different. Build style is different.

00:19:29.640 --> 00:19:31.339
Product type is different. So it's really going

00:19:31.339 --> 00:19:35.460
to be a moment of learning for trust company.

00:19:36.200 --> 00:19:39.660
It'll be interesting. It's a zip code that I've

00:19:39.660 --> 00:19:42.059
never built in. It's a product I've never offered.

00:19:42.119 --> 00:19:44.099
It's a demographic I've never really catered

00:19:44.099 --> 00:19:48.339
to, but I'm excited for it. It's a pivot, but

00:19:48.339 --> 00:19:50.839
we're going to keep doing our luxury homes and

00:19:50.839 --> 00:19:52.799
we're going to keep doing our spectacular customs.

00:19:53.460 --> 00:19:57.960
And do this also. Yeah, try to build our portfolio

00:19:57.960 --> 00:20:00.809
and build our repertoire. I love it. I'm so excited

00:20:00.809 --> 00:20:03.490
for it. It'll be fun. It will be a challenge,

00:20:03.630 --> 00:20:06.029
but it will be exciting. We love the luxury buyer

00:20:06.029 --> 00:20:08.150
and we love the luxury homes, but there is a

00:20:08.150 --> 00:20:09.630
need in the marketplace. And knowing there's

00:20:09.630 --> 00:20:11.970
a housing crisis and being able to serve that

00:20:11.970 --> 00:20:14.609
need on some level, even if it's just minuscule

00:20:14.609 --> 00:20:17.970
with a few homes to start with, it gives us,

00:20:17.970 --> 00:20:19.890
you know, you're giving hope to somebody who

00:20:19.890 --> 00:20:21.849
otherwise couldn't be in the market. We never

00:20:21.849 --> 00:20:26.250
had it. It's a fun thought. It is. In the past,

00:20:26.309 --> 00:20:28.210
if I've maybe flipped a home or whatever, did

00:20:28.210 --> 00:20:31.109
a renovation, I love the challenge of, okay,

00:20:31.190 --> 00:20:33.049
this home's end -of -day sales price is $4 .50,

00:20:33.109 --> 00:20:35.970
but what's the nicest you can make it for $4

00:20:35.970 --> 00:20:39.849
.50 and still do well? And with those projects,

00:20:40.450 --> 00:20:43.400
if past is prologue. I've always chosen to shrink

00:20:43.400 --> 00:20:45.799
the margins, but make a compelling product. So

00:20:45.799 --> 00:20:49.579
if I know me, we'll probably make a little less.

00:20:50.140 --> 00:20:55.259
I don't know Michael, do you? Some days I think

00:20:55.259 --> 00:21:02.049
we're all questioning me. I think that it'll

00:21:02.049 --> 00:21:04.650
be interesting to see what we fit into that box.

00:21:05.069 --> 00:21:07.069
We don't have limitless budget. We don't have

00:21:07.069 --> 00:21:09.569
limitless build envelope. We don't have limitless

00:21:09.569 --> 00:21:12.509
size. We don't have limitless of anything really.

00:21:12.589 --> 00:21:14.710
We have limitless amenities. You want to be in

00:21:14.710 --> 00:21:17.049
a pool type box. It's a tight box. I mean, as

00:21:17.049 --> 00:21:20.369
far as creativity and some of the opportunities.

00:21:21.309 --> 00:21:25.190
Yeah. Yes. It is the last five squares of a Sudoku.

00:21:25.910 --> 00:21:27.250
Well, actually that's the easiest part of the

00:21:27.250 --> 00:21:30.099
Sudoku. It's the first... 20 squares of a Sudoku

00:21:30.099 --> 00:21:32.819
puzzle. It's that challenging, you know, there's

00:21:32.819 --> 00:21:35.220
only so many ways you can do it. You're boxed

00:21:35.220 --> 00:21:38.099
in. You don't know your constraints all the time.

00:21:38.119 --> 00:21:40.200
So you get there, you don't know, or maybe the

00:21:40.200 --> 00:21:42.240
market will be even softer. Maybe we'll have

00:21:42.240 --> 00:21:46.519
a 10 % correction by then and we're, yeah, we

00:21:46.519 --> 00:21:51.099
may be at 310. That's another unknown. Oh, for

00:21:51.099 --> 00:21:53.890
sure. And I'm very prepared for it. It's going

00:21:53.890 --> 00:21:56.150
to be interesting where the landowner is staying

00:21:56.150 --> 00:21:58.009
in the deal. So we're going to win together and

00:21:58.009 --> 00:22:00.329
we're going to lose together. Uh, which is a

00:22:00.329 --> 00:22:03.190
great, a great, uh, way to keep training wheels

00:22:03.190 --> 00:22:06.230
on, on us because we have the landowner in the

00:22:06.230 --> 00:22:08.769
deal. So we're only paying once we go vertical,

00:22:08.769 --> 00:22:10.789
which is great, great business model. It's actually

00:22:10.789 --> 00:22:12.809
how it first started. Started into luxury is

00:22:12.809 --> 00:22:15.910
the same entire starting and pivoting into true

00:22:15.910 --> 00:22:19.660
luxury. So. It'll be interesting. We'll have

00:22:19.660 --> 00:22:22.339
probably product needs to be determined by June

00:22:22.339 --> 00:22:25.559
of this year I'll know the widths of the townhomes

00:22:25.559 --> 00:22:27.920
and the widths of the building pads until then

00:22:27.920 --> 00:22:30.440
I don't exactly know what I can do in there so

00:22:30.440 --> 00:22:34.740
it's looking like maybe 23 24 wide by Potentially

00:22:34.740 --> 00:22:37.400
60 deep so there's only so much you can do with

00:22:37.400 --> 00:22:39.720
that now Maybe some go to 28 another go to 18

00:22:39.720 --> 00:22:42.220
and we kind of play with the product offering

00:22:42.220 --> 00:22:44.180
a little bit So we'll see it'll be interesting

00:22:44.180 --> 00:22:52.690
either way We can go up to 31. So we can do a

00:22:52.690 --> 00:22:55.430
nine, eight, and eight with two foot trusses.

00:22:55.430 --> 00:22:56.849
And then we probably on that product would have

00:22:56.849 --> 00:22:59.970
to do a flat roof or just do a really small gable

00:22:59.970 --> 00:23:02.009
just to not hit. Cause it's 31 to the peak of

00:23:02.009 --> 00:23:06.130
the roof. Oh, okay. Yeah. So the structure structure

00:23:06.130 --> 00:23:08.630
height, not from the ground. So from your finished

00:23:08.630 --> 00:23:10.630
floor up. Yeah. So you don't have to, you don't

00:23:10.630 --> 00:23:12.109
have to account for the thickness of the slab

00:23:12.109 --> 00:23:15.789
or the, the pad elevation. Oh, that's interesting.

00:23:15.789 --> 00:23:17.660
I didn't even know that. Yeah. I didn't know

00:23:17.660 --> 00:23:20.000
that when we were, yeah, when you're looking

00:23:20.000 --> 00:23:21.779
at the threshold for how tall a building can

00:23:21.779 --> 00:23:23.559
be. I didn't realize. Well, where, where do you

00:23:23.559 --> 00:23:27.140
start? Where is the starting point? There's a

00:23:27.140 --> 00:23:29.240
world there. So I'm debating all of these things

00:23:29.240 --> 00:23:30.960
right now and I would never go all through story

00:23:30.960 --> 00:23:32.740
in this community, but I would love to maybe

00:23:32.740 --> 00:23:35.359
throw that offering in to go, you know, to have

00:23:35.359 --> 00:23:39.589
a larger product. And it might not even be, it

00:23:39.589 --> 00:23:41.849
might not be a suit, you know, in terms of price

00:23:41.849 --> 00:23:43.970
or spend or any of those pieces, but just to

00:23:43.970 --> 00:23:45.529
know that you have a little bit of opportunity.

00:23:45.869 --> 00:23:48.190
If you wanted to do a two story or three story,

00:23:48.490 --> 00:23:50.349
then yeah, it gives you a few. We're looking

00:23:50.349 --> 00:23:51.890
for the extra square footage. That's one way

00:23:51.890 --> 00:23:55.670
to get it on a 24 foot. Yeah, exactly. Right.

00:23:56.210 --> 00:23:57.710
Yeah. Cause right now I think we're maxed out

00:23:57.710 --> 00:23:59.450
with that envelope. If you get a one car garage,

00:23:59.630 --> 00:24:02.269
the biggest you can get is around 1400, I think

00:24:02.269 --> 00:24:04.950
the math. And I have to talk to the engineer,

00:24:05.069 --> 00:24:06.950
I have to talk to zoning. Can I overhang the

00:24:06.950 --> 00:24:09.950
back of the structure, you know, a foot or two

00:24:09.950 --> 00:24:12.190
feet? Can I overhang it from the front to create

00:24:12.190 --> 00:24:14.309
a shelter over the garage, but also some square

00:24:14.309 --> 00:24:16.309
footage on the second floor? When you drive through

00:24:16.309 --> 00:24:18.390
a production neighborhood, you see these in all

00:24:18.390 --> 00:24:20.009
50, or anywhere where they build production homes,

00:24:20.130 --> 00:24:23.130
you'll see these little tricks. Maximize your

00:24:23.130 --> 00:24:25.750
slabs, maximize your footprints and get as much

00:24:25.750 --> 00:24:28.250
square footage. And ultimately people appreciate

00:24:28.250 --> 00:24:30.470
it because they need the square footage in that

00:24:30.470 --> 00:24:32.509
space. And it doesn't really materially add to

00:24:32.509 --> 00:24:35.069
the cost of the home. So all these little tricks

00:24:35.069 --> 00:24:36.869
that we'll do, but again, that's a zoning thing.

00:24:37.029 --> 00:24:38.990
Cause certain zoning overlays have, okay, if

00:24:38.990 --> 00:24:40.950
you have this kind of height, the second floor

00:24:40.950 --> 00:24:42.789
is to push in the third floor. There's just certain

00:24:42.789 --> 00:24:45.230
restrictions that you just can't always do a,

00:24:45.230 --> 00:24:48.200
a brownstone basically. Right. Well, then you

00:24:48.200 --> 00:24:50.640
wouldn't want to. I mean, from an aesthetic perspective,

00:24:50.839 --> 00:24:52.940
not only does that extra two feet that it bumps

00:24:52.940 --> 00:24:55.079
out make the front of the home a little better

00:24:55.079 --> 00:24:57.259
and give you that extra square footage inside,

00:24:57.619 --> 00:24:59.319
there's something about the appeal of a community

00:24:59.319 --> 00:25:02.059
when there's some dimension to a home. Some modulation.

00:25:03.099 --> 00:25:05.079
Yes. Yeah, exactly. That's why you add different

00:25:05.079 --> 00:25:06.980
colors and bump outs and trim around the way.

00:25:07.059 --> 00:25:08.900
You want it to have a little bit of interest

00:25:08.900 --> 00:25:12.180
in some character. Yeah. I've thought of it,

00:25:12.400 --> 00:25:13.940
even that, as you mentioned, and I would love

00:25:13.940 --> 00:25:17.309
to... maybe build row houses and they're built

00:25:17.309 --> 00:25:20.829
that way. They're built with bay windows. They're

00:25:20.829 --> 00:25:23.690
built like East Coast row houses where this one

00:25:23.690 --> 00:25:25.710
has red brick and this one has clapboard and

00:25:25.710 --> 00:25:29.670
this one has cedar shakes. It would be neat.

00:25:30.109 --> 00:25:31.990
We'll see if the market will bear them. When

00:25:31.990 --> 00:25:36.650
I talk about what can trust add its flair, these

00:25:36.650 --> 00:25:38.690
are the things I'm talking about. Double stack

00:25:38.690 --> 00:25:40.349
cabinets in the uppers. You might only have three

00:25:40.349 --> 00:25:42.109
uppers in the entire kitchen. Let's double stack

00:25:42.109 --> 00:25:45.079
them. Yeah. let's include a backsplash. You know,

00:25:45.079 --> 00:25:46.759
we're going to buy 24 houses for the backsplash.

00:25:46.839 --> 00:25:48.660
Let's just include it. It costs us a thousand

00:25:48.660 --> 00:25:52.160
dollars. And then, you know, we find that people

00:25:52.160 --> 00:25:54.460
really appreciate those things. So backsplash

00:25:54.460 --> 00:25:57.220
or even we toured a home recently where they

00:25:57.220 --> 00:25:59.680
have that little kind of the section window in

00:25:59.680 --> 00:26:01.640
the backsplash area between the cabinet and the

00:26:01.640 --> 00:26:03.900
countertop. And it's just that little bit of

00:26:03.900 --> 00:26:05.900
extra light that made the whole kitchen feel

00:26:05.900 --> 00:26:08.759
so much bigger. It was a tiny space, but just

00:26:08.759 --> 00:26:10.660
giving some of that dimension a little bit of

00:26:10.660 --> 00:26:12.420
extra flair. And like you said, that's kind of.

00:26:12.569 --> 00:26:15.170
you know, little touches that might not ordinarily

00:26:15.170 --> 00:26:19.029
be found in that, necessarily in that entry -level

00:26:19.029 --> 00:26:23.329
product. Right. Some unexpected. Yeah, hey, you

00:26:23.329 --> 00:26:25.190
know, they say, I can't remember who said it.

00:26:25.190 --> 00:26:27.750
I think it was a fast food magnet. It said, you

00:26:27.750 --> 00:26:30.490
should always delight your customers. So I kind

00:26:30.490 --> 00:26:32.630
of think of these things when I'm drawing plans,

00:26:32.670 --> 00:26:34.569
like when I was working on our Westridge product

00:26:34.569 --> 00:26:36.829
this weekend. Okay, how can we delight? this

00:26:36.829 --> 00:26:39.029
customer. Okay, I'm going to give prep kitchens

00:26:39.029 --> 00:26:42.049
to four of the five houses. I'm going to do pool

00:26:42.049 --> 00:26:46.029
bathrooms. That's cool. I'm doing 12th ceilings

00:26:46.029 --> 00:26:47.650
on the first floor to switch gears a little bit

00:26:47.650 --> 00:26:49.470
on the Westridge. That's what we're doing to

00:26:49.470 --> 00:26:52.009
pull back the curtain. That's something that

00:26:52.009 --> 00:26:54.569
I worked on this weekend. It's going to be gorgeous.

00:26:57.930 --> 00:27:01.809
What if you can have transom windows over interior

00:27:01.809 --> 00:27:03.809
door openings? I mean, think about the things

00:27:03.809 --> 00:27:07.549
that A 12 foot lid will open up for us. Transoms

00:27:07.549 --> 00:27:11.589
over the windows. The sliders can go to 10 feet

00:27:11.589 --> 00:27:13.069
instead of eight feet. I mean, there's all these

00:27:13.069 --> 00:27:16.369
little things that going to 12 will really help.

00:27:16.769 --> 00:27:22.250
And it's a, it's a area that is not, you're not

00:27:22.250 --> 00:27:23.750
seeing that in that price point. If we want to

00:27:23.750 --> 00:27:26.150
target one three to one five, you're not seeing

00:27:26.150 --> 00:27:28.569
that our nearest competitor, Richmond. American

00:27:28.569 --> 00:27:30.829
built a 15 -home infill community that you can

00:27:30.829 --> 00:27:33.250
see from this neighborhood. And I did a deep

00:27:33.250 --> 00:27:36.210
dive into them before I scrapped all 50 homes

00:27:36.210 --> 00:27:37.930
I've drawn for this community. There's only five

00:27:37.930 --> 00:27:40.970
houses. I've drawn 50 of them. Amazing. Scrapped

00:27:40.970 --> 00:27:42.849
every single one of those houses, Christa. Not

00:27:42.849 --> 00:27:45.869
one house has survived. But I did a deep dive

00:27:45.869 --> 00:27:47.910
on Friday. You're back to square one? No, I'm

00:27:47.910 --> 00:27:50.069
done. I'm done now. You're done. I drew all through

00:27:50.069 --> 00:27:50.490
the weekend. But you were back to square one

00:27:50.490 --> 00:27:52.549
before you, yeah. We were. Friday afternoon,

00:27:52.569 --> 00:27:55.269
I was back to square one. Oh, I didn't have any

00:27:55.269 --> 00:28:00.039
either. Yeah, I scrapped everything. You did

00:28:00.039 --> 00:28:03.220
have a crazy weekend. I did. Yes, you were in

00:28:03.220 --> 00:28:04.619
the zone all weekend. I was in the zone. I did

00:28:04.619 --> 00:28:09.119
six hours of CE too, which, don't tell Keegan

00:28:09.119 --> 00:28:14.119
that I was working anything else. But I've just

00:28:14.119 --> 00:28:16.019
looked at the competition. So these are one three

00:28:16.019 --> 00:28:18.880
to one five. They have nine foot ceilings. They

00:28:18.880 --> 00:28:21.319
do have the floating stairs. They have nice appliance

00:28:21.319 --> 00:28:23.500
packages. They have nice cabinet packages. They

00:28:23.500 --> 00:28:25.900
have nice finishes overall. The lots are a little

00:28:25.900 --> 00:28:30.400
weird, but so are Westridge. Their lots are irregular.

00:28:30.440 --> 00:28:32.940
Our lots are better, but this other community

00:28:32.940 --> 00:28:35.740
called Crestorosa... is gated, we're not gonna

00:28:35.740 --> 00:28:38.819
be gated. You know, there's advantages there,

00:28:39.059 --> 00:28:41.940
4 ,000 square feet, we're gonna be like 32 to

00:28:41.940 --> 00:28:44.920
3 ,800. So I thought, well, what ways can we

00:28:44.920 --> 00:28:47.019
do, you know, how can we delight the customers?

00:28:47.119 --> 00:28:49.640
How can we delight the people that come in? How

00:28:49.640 --> 00:28:51.160
can we be a compelling product? So I thought,

00:28:51.259 --> 00:28:53.440
okay, well, they're doing nine foot, we always

00:28:53.440 --> 00:28:57.769
do 10, let's do 12. They're doing... you know,

00:28:57.829 --> 00:28:59.750
no consideration for views, things like that.

00:28:59.789 --> 00:29:02.650
Let's curate every home to the assets that that

00:29:02.650 --> 00:29:05.130
lot has. One lot, for instance, lot three has

00:29:05.130 --> 00:29:08.450
mountain views and strip views. So that has two

00:29:08.450 --> 00:29:12.109
viewpoints, which is really cool. And by the

00:29:12.109 --> 00:29:14.410
way, when we go over to Argos with just six homes,

00:29:15.009 --> 00:29:17.309
we're going to do the same thing. We're going

00:29:17.309 --> 00:29:19.950
to delight the customer at every turn, right?

00:29:20.049 --> 00:29:24.049
Like, okay, this lot has these advantages. Let's

00:29:24.049 --> 00:29:28.519
do it. That's really kind of... squeeze as much

00:29:28.519 --> 00:29:30.920
as we can. And that's the only niche that I can

00:29:30.920 --> 00:29:33.200
feel good about. And I know we've gone back and

00:29:33.200 --> 00:29:35.019
forth on it, but that's the only niche. This

00:29:35.019 --> 00:29:37.900
is a very premium zip code. This is an infill

00:29:37.900 --> 00:29:40.500
project, which means there is somebody sitting

00:29:40.500 --> 00:29:43.339
there right now in an 1800 square foot home that

00:29:43.339 --> 00:29:45.259
would buy bigger, that has the money to go bigger.

00:29:45.740 --> 00:29:48.400
but they don't want to leave the school. They're

00:29:48.400 --> 00:29:50.619
super close to their babysitter. Their brother

00:29:50.619 --> 00:29:53.259
lives around the corner. There's all these kind

00:29:53.259 --> 00:29:55.819
of things. It becomes this little microcosm market

00:29:55.819 --> 00:29:58.220
that you see a lot in Los Angeles or New York,

00:29:58.279 --> 00:30:00.819
these kind of established markets. We're getting

00:30:00.819 --> 00:30:03.720
to be such an established city now that we're

00:30:03.720 --> 00:30:06.519
seeing. We're getting these little envelopes.

00:30:09.240 --> 00:30:11.640
Everything is nearby. You're really close proximity

00:30:11.640 --> 00:30:14.200
to anything you could need, including freeways.

00:30:14.539 --> 00:30:16.119
It's right off of Horizon Village, which is a

00:30:16.119 --> 00:30:18.599
really, you know, desirable area. Most people

00:30:18.599 --> 00:30:20.980
know that section of town. And if you want to

00:30:20.980 --> 00:30:23.259
be in Henderson, you want to be in Henderson.

00:30:23.720 --> 00:30:27.299
That's it. So, yes, I could build a product that

00:30:27.299 --> 00:30:31.460
works for a certain audience. There's multiple

00:30:31.460 --> 00:30:34.420
right answers. I chose this audience. I think

00:30:34.420 --> 00:30:37.660
that as we go closer to 1 .7 or even over 1 .5,

00:30:37.980 --> 00:30:40.039
Horizon Ridge is kind of a busy road. You're

00:30:40.039 --> 00:30:42.140
going to get some road noise on lots 1 and 2.

00:30:42.720 --> 00:30:45.079
You know, we're not gated. We're not guarded.

00:30:45.299 --> 00:30:47.039
We don't have any amenities. So I just figured

00:30:47.039 --> 00:30:49.940
what is the tippy, tippy top we can push these.

00:30:50.539 --> 00:30:54.259
And I think I feel good with that. And ultimately,

00:30:54.500 --> 00:30:57.259
our build costs on the infrastructure and subdivision

00:30:57.259 --> 00:30:58.799
is going to be the same, whether we're building

00:30:59.770 --> 00:31:02.210
3 ,800 square foot homes or 1 ,800 square foot

00:31:02.210 --> 00:31:04.049
homes. So at the end of the day, it's really

00:31:04.049 --> 00:31:07.269
challenging to get it to pencil. Yeah. Well,

00:31:07.289 --> 00:31:09.150
I'm excited to see those plans. Can't wait to...

00:31:09.150 --> 00:31:10.869
Yeah. I'm going to save them as PDFs. I'm going

00:31:10.869 --> 00:31:12.269
to still work on them a little bit tomorrow and

00:31:12.269 --> 00:31:15.730
get a kind of a whole presentation together and

00:31:15.730 --> 00:31:18.180
send... Probably sit on it and simmer on it.

00:31:18.259 --> 00:31:20.700
Maybe I'll have you simmer on it, have Ryan simmer

00:31:20.700 --> 00:31:22.720
on it. And the whole team actually is simmer

00:31:22.720 --> 00:31:24.180
on it and just say, what do you see on these

00:31:24.180 --> 00:31:26.980
plans that we're missing? And if it can be done

00:31:26.980 --> 00:31:28.660
and added, they'll do that. And then we'll probably

00:31:28.660 --> 00:31:31.000
fire them off to the architects. Just sometime

00:31:31.000 --> 00:31:33.339
before Christmas, just so he can get started

00:31:33.339 --> 00:31:35.480
on them and we can get a study set back by mid

00:31:35.480 --> 00:31:38.880
January on all five and full set of plans by

00:31:38.880 --> 00:31:40.980
end of February engineering, by end of April

00:31:40.980 --> 00:31:47.019
or early April. So yeah, should be pretty. Pretty

00:31:47.019 --> 00:31:48.160
exciting to see it come out. So what do you think

00:31:48.160 --> 00:31:50.779
will be, if we're end of April that we're getting

00:31:50.779 --> 00:31:53.759
those finalized, then we're, are we building

00:31:53.759 --> 00:32:00.680
in 26? Well, what a great leading question. Because

00:32:00.680 --> 00:32:03.880
we had, all of our grading plans are done. They're

00:32:03.880 --> 00:32:06.420
not stamped by the city, but I sent it off to

00:32:06.420 --> 00:32:09.279
a couple of grading companies and we can share

00:32:09.279 --> 00:32:12.420
our screen. I have the, I call them a heat map,

00:32:12.680 --> 00:32:16.259
right? I love the way, yeah. I'll just go. It's

00:32:16.259 --> 00:32:18.440
so cool. Yeah. Where's the site low? Where's

00:32:18.440 --> 00:32:21.980
it high? Red is usually the highest site. Blue

00:32:21.980 --> 00:32:23.680
is the lowest and yellow. So it kind of runs

00:32:23.680 --> 00:32:28.180
on that gradient. And Argos, our other six -home

00:32:28.180 --> 00:32:32.019
subdivision is approximately 1 ,500, maybe 2

00:32:32.019 --> 00:32:35.579
,500 feet from our Westridge project. It is running

00:32:35.579 --> 00:32:38.180
two months behind Westridge in terms of approval

00:32:38.180 --> 00:32:41.359
and City Henderson, all those things. And the

00:32:41.359 --> 00:32:47.190
export from Argos is exactly, I'm not even kidding,

00:32:47.509 --> 00:32:51.829
down to the cubic yard of import needed at Westridge.

00:32:53.150 --> 00:32:55.569
Isn't that funny? So of course we need what's

00:32:55.569 --> 00:33:00.150
at Argos at Westridge. Westridge is ready in

00:33:00.150 --> 00:33:03.529
April. Argos is ready in June. So do you save

00:33:03.529 --> 00:33:08.650
approximately $70 ,000 per subdivision? $140

00:33:08.650 --> 00:33:13.710
,000 total over 11 houses. That's a lot. It's

00:33:13.710 --> 00:33:16.450
about $12 ,000. I mean, when we're talking $1

00:33:16.450 --> 00:33:21.569
.5 million homes, do you stall on essentially

00:33:21.569 --> 00:33:26.269
$13, $14 million worth of houses for $140 ,000?

00:33:27.130 --> 00:33:30.410
I don't know. Those are the things that we have

00:33:30.410 --> 00:33:33.170
to figure out. Now, is there a strategy to be

00:33:33.170 --> 00:33:35.230
building? I think those decisions will be dictated

00:33:35.230 --> 00:33:37.630
by the market at the time. If we're in a hot

00:33:37.630 --> 00:33:39.990
market, maybe that $140 ,000 doesn't, you know,

00:33:39.990 --> 00:33:42.119
if you get get the homes on the ground sooner,

00:33:42.480 --> 00:33:45.680
then we can, you know, keep that moving. If the

00:33:45.680 --> 00:33:47.579
market's a little bit stalemate, then we haven't

00:33:47.579 --> 00:33:50.940
lost anything in that timeframe, because... Yeah.

00:33:50.940 --> 00:33:54.019
Yeah, so I think those... Yeah, if we were...

00:33:54.019 --> 00:33:58.779
If 26 or mid -26 looks like... It's hard to believe

00:33:58.779 --> 00:34:00.940
we're in December and we're already talking these

00:34:00.940 --> 00:34:03.519
neighborhoods could be started in first quarter,

00:34:03.619 --> 00:34:07.099
let's say, early second quarter. Both will likely

00:34:07.099 --> 00:34:09.039
start inside a second quarter, which is pretty

00:34:09.039 --> 00:34:15.690
cool. It's just, I don't know. I was hoping the

00:34:15.690 --> 00:34:17.469
market would get hotter by the end of the year.

00:34:17.670 --> 00:34:20.869
And don't get me wrong, I read that mortgage

00:34:20.869 --> 00:34:23.130
applications are up 11%. They're the highest

00:34:23.130 --> 00:34:27.309
they've been all year. So that is a good indication.

00:34:27.409 --> 00:34:28.989
We were celebrating that back in October. That's

00:34:28.989 --> 00:34:32.869
continued to rise. Yeah, that has steadily risen

00:34:32.869 --> 00:34:35.269
throughout the year. So yeah. It has. Great to

00:34:35.269 --> 00:34:38.010
see that it's continued. I think what we're seeing

00:34:38.010 --> 00:34:41.920
is that you've got the rates that are one full

00:34:41.920 --> 00:34:43.719
point lower on average than they were on average

00:34:43.719 --> 00:34:46.940
last year. More inventory, more to look at, and

00:34:46.940 --> 00:34:48.679
maybe people are hunkered down for Christmas

00:34:48.679 --> 00:34:50.400
right now and you see a little bit of a surge

00:34:50.400 --> 00:34:53.199
in spring, I hope. You also see more listings

00:34:53.199 --> 00:34:56.119
in spring, so I don't know. Your guess is as

00:34:56.119 --> 00:34:57.780
good as mine, but if we have the buyer demand

00:34:57.780 --> 00:35:00.719
there and ultimately we only have to pull 11

00:35:00.719 --> 00:35:02.559
luxury buyers out of the market and we don't

00:35:02.559 --> 00:35:04.320
have to do it all next year, we could do half

00:35:04.320 --> 00:35:06.739
of it. Like you mentioned, If we're slow rolling

00:35:06.739 --> 00:35:09.019
it, maybe there's a strategy there. And I also

00:35:09.019 --> 00:35:14.199
love the idea of homes that are designed all

00:35:14.199 --> 00:35:15.880
the way up through engineering, but maybe not

00:35:15.880 --> 00:35:18.840
permitted. And we have 11 lots to pick from,

00:35:18.860 --> 00:35:21.619
but we have two in the ground, maybe one at each

00:35:21.619 --> 00:35:24.840
neighborhood. And then we sell that off of...

00:35:24.940 --> 00:35:27.519
the other, we sell the other lots off of those

00:35:27.519 --> 00:35:30.099
objections. So, oh, this person's really bothered

00:35:30.099 --> 00:35:32.239
by the noise on Horizon Ridge. Well, they need

00:35:32.239 --> 00:35:34.980
to go over to Argos and buy one of our four rear

00:35:34.980 --> 00:35:38.199
facing lots that back to the mountain. And these

00:35:38.199 --> 00:35:40.579
are the plans that fit those. And if you want

00:35:40.579 --> 00:35:42.480
to go to contract now, when we're just in the

00:35:42.480 --> 00:35:44.860
planning phases, or even if I'm completely permit

00:35:44.860 --> 00:35:47.420
ready, we can still make these changes now before

00:35:47.420 --> 00:35:49.840
we break ground and run it through that way.

00:35:50.199 --> 00:35:52.940
There's all these little things that Trying to

00:35:52.940 --> 00:35:55.380
strategize and think about and I don't think

00:35:55.380 --> 00:35:59.239
that I'll do what we did on serene, which was

00:35:59.239 --> 00:36:01.480
Bound out six houses. I think it's gonna work

00:36:01.480 --> 00:36:03.619
out just fine permitting ended up slowing us

00:36:03.619 --> 00:36:05.860
down on some friends anyway So they're not gonna

00:36:05.860 --> 00:36:07.940
finish all at the same time as it is There's

00:36:07.940 --> 00:36:09.940
probably from the time the very first one lot

00:36:09.940 --> 00:36:12.820
five finishes To the very last one, which is

00:36:12.820 --> 00:36:14.519
looking like a lot six oddly enough. They're

00:36:14.519 --> 00:36:16.380
extorted each other So they're gonna have to

00:36:16.380 --> 00:36:17.940
live next to that construction that might not

00:36:17.940 --> 00:36:21.199
finish until July of next year, maybe August

00:36:21.199 --> 00:36:22.719
of next year, the first one finishing in April

00:36:22.719 --> 00:36:25.920
or May. So there's as much as a four -month window

00:36:25.920 --> 00:36:30.039
between the two. So that being said, I don't

00:36:30.039 --> 00:36:32.480
mind if it goes that way, but I do not intend

00:36:32.480 --> 00:36:35.719
to pull all 11 permits or even all five permits,

00:36:35.860 --> 00:36:37.639
all six permits, whichever neighborhood we're

00:36:37.639 --> 00:36:41.039
working on. I don't intend to do that based on

00:36:41.039 --> 00:36:44.679
today's market conditions. I'd rather slow roll

00:36:44.679 --> 00:36:46.880
it a little bit and just pretend that these lots

00:36:46.880 --> 00:36:49.920
are in our inventory the way that every other

00:36:49.920 --> 00:36:52.639
nationwide builder has lots in inventory. They're

00:36:52.639 --> 00:36:54.880
just not, and I guess you're paying money and

00:36:54.880 --> 00:36:57.239
costs on them, interest taxes care. I get it.

00:36:57.659 --> 00:37:01.179
But sometimes slow rolling it, selling the upgrades

00:37:01.179 --> 00:37:04.159
as we hone in our process of selling people upgrades.

00:37:05.280 --> 00:37:08.059
We can see additional margins on that front too.

00:37:08.800 --> 00:37:11.139
uh, more guardrails. And I think, you know, having

00:37:11.139 --> 00:37:13.159
a, a director of marketing, client relations

00:37:13.159 --> 00:37:16.800
and youth has helped us to kind of craft that

00:37:16.800 --> 00:37:19.559
system and that craft that set up to say, okay,

00:37:19.619 --> 00:37:21.480
here's our policies and here's how we upgrade

00:37:21.480 --> 00:37:23.960
it. And you've got seven different checkpoints

00:37:23.960 --> 00:37:26.360
and you continue to build that out while we're

00:37:26.360 --> 00:37:27.739
working through Serene. You're building that

00:37:27.739 --> 00:37:30.219
out as we speak and we'll have that to build

00:37:30.219 --> 00:37:34.039
out and we'll have, um, kind of the restaurant

00:37:34.039 --> 00:37:35.960
open when the lunch rush comes in. That's kind

00:37:35.960 --> 00:37:39.239
of where I'm at right now. And I'm okay with

00:37:39.239 --> 00:37:42.000
that. I'm okay with... I love what we do. So

00:37:42.000 --> 00:37:44.239
if it takes us three years to build out our next

00:37:44.239 --> 00:37:45.880
few communities, that's cool. It's just more

00:37:45.880 --> 00:37:48.239
time doing what we love. And we've got other

00:37:48.239 --> 00:37:50.980
exciting things in the works, such as that townhome

00:37:50.980 --> 00:37:53.590
community. That's going to be one that... You're

00:37:53.590 --> 00:37:55.170
not going to build all 24 at once, but you're

00:37:55.170 --> 00:37:56.849
going to probably have to build two buildings

00:37:56.849 --> 00:37:59.329
at once. And if they're buildings of four, right,

00:37:59.329 --> 00:38:00.469
you're going to have to at least build eight

00:38:00.469 --> 00:38:03.449
at a time, but they're $300 ,000, $350 ,000 units.

00:38:03.489 --> 00:38:06.070
So it's not as big of a, a big of an ask, but

00:38:06.070 --> 00:38:07.150
that's something you have to solve. And then

00:38:07.150 --> 00:38:08.969
as a matter of strategy in that with the town

00:38:08.969 --> 00:38:11.769
home community, you have to decide, do we sell

00:38:11.769 --> 00:38:14.690
all, you know, if they're one building, do we

00:38:14.690 --> 00:38:16.550
sell that whole building before we release another

00:38:16.550 --> 00:38:19.070
building? Whereas in a, in a community where

00:38:19.070 --> 00:38:21.170
we're building, you know, five or six homes at

00:38:21.170 --> 00:38:24.750
a time, you don't. necessarily have to strategize

00:38:24.750 --> 00:38:26.889
exactly about that, right? Because can they get

00:38:26.889 --> 00:38:29.329
a certificate of occupancy if the home's next

00:38:29.329 --> 00:38:31.530
door, if the whole building isn't done? I mean,

00:38:31.590 --> 00:38:33.570
so some of those things that go into multi -family

00:38:33.570 --> 00:38:36.849
that we don't have to worry about on Argos or

00:38:36.849 --> 00:38:39.510
Westridge. Exactly. And they're really just one

00:38:39.510 --> 00:38:42.250
-off lots. And I think there is a buyer. And

00:38:42.250 --> 00:38:44.650
let the rest of the community sit. It could.

00:38:45.050 --> 00:38:47.989
And the only reason I'm not, I'm wanting to do

00:38:47.989 --> 00:38:49.889
at least like one or two and planning the next

00:38:49.889 --> 00:38:52.210
few lots is that I just know how much unknowns

00:38:53.259 --> 00:38:55.460
kill the sales. So I'm trying to have at least

00:38:55.460 --> 00:38:58.280
everything planned and maybe rendered. But other

00:38:58.280 --> 00:39:01.079
than that, yeah, I'm not opposed to one was completely

00:39:01.079 --> 00:39:02.719
built and sold and done and they're living in

00:39:02.719 --> 00:39:04.019
there and then we got a break ground. No, they're

00:39:04.019 --> 00:39:05.059
going to love us because they're going to have

00:39:05.059 --> 00:39:08.099
to be working next door to us. Right. But maybe

00:39:08.099 --> 00:39:10.940
not. But yeah. Right. Ultimately, I think that

00:39:10.940 --> 00:39:12.420
that might be what it looks like. I think it's

00:39:12.420 --> 00:39:16.539
going to look more like that than phased, meaning

00:39:16.539 --> 00:39:18.960
all one phase or even two phases of three. I

00:39:18.960 --> 00:39:21.559
mean, there's Just don't think that's where these

00:39:21.559 --> 00:39:23.880
neighborhoods go. And the beauty of it is that,

00:39:24.039 --> 00:39:25.719
yes, I've spent some money on, in this scenario,

00:39:26.300 --> 00:39:28.480
I've spent some money on architectural and engineering

00:39:28.480 --> 00:39:31.659
so that when I am ready, I'm ready, but it's

00:39:31.659 --> 00:39:33.480
cheaper to change it now. Let's say the market

00:39:33.480 --> 00:39:36.599
changes really for the best, the best case scenario.

00:39:36.760 --> 00:39:39.340
Like, wow, these actually became $2 million homes.

00:39:39.500 --> 00:39:41.449
Maybe we should bump out the... back of this

00:39:41.449 --> 00:39:43.469
house five feet and running all through architectural

00:39:43.469 --> 00:39:46.409
engineering. And now it went from 3 ,600 to 4

00:39:46.409 --> 00:39:49.269
,100 and we can sell it from little changes like

00:39:49.269 --> 00:39:50.969
that. Oh, I didn't plan on having another ensuite.

00:39:51.050 --> 00:39:53.690
Let's change this to a second master suite or

00:39:53.690 --> 00:39:55.949
something along those lines. So that's the beauty.

00:39:55.969 --> 00:39:58.530
You can kind of adapt and, and, and zig and zag

00:39:58.530 --> 00:40:02.030
as the market gives you that feedback. Sure.

00:40:03.110 --> 00:40:06.150
Sure. So, and we, we are now big enough to almost

00:40:06.150 --> 00:40:10.579
always have a house ready. So we sold a lot of

00:40:10.579 --> 00:40:13.800
lot one off of Serene, off of a house that's

00:40:13.800 --> 00:40:16.099
done and staged in a showcase home in Lake Las

00:40:16.099 --> 00:40:18.320
Vegas. We would have never been able to do that

00:40:18.320 --> 00:40:21.099
a year ago even. So imagine what this looks like

00:40:21.099 --> 00:40:23.639
in a couple of years. And I wasn't sure how that

00:40:23.639 --> 00:40:25.800
was going to translate going to Lake Las Vegas

00:40:25.800 --> 00:40:27.400
to see a house that's going to be built at Eastern.

00:40:27.539 --> 00:40:29.800
It's a different plan. Just trust us. But it

00:40:29.800 --> 00:40:31.920
was show and tell. And our sales agent was able

00:40:31.920 --> 00:40:34.420
to show them these upgrades and this is included,

00:40:34.420 --> 00:40:36.380
this is not. And then you're able to reference

00:40:36.380 --> 00:40:39.329
when you're walking them through. their, their

00:40:39.329 --> 00:40:42.030
upgrades and say, remember that tray ceiling

00:40:42.030 --> 00:40:45.550
at the house you saw that's $1 ,100. And you

00:40:45.550 --> 00:40:47.650
want how many of these and you know, those, you

00:40:47.650 --> 00:40:50.289
know, the double stack cabinets you saw that's

00:40:50.289 --> 00:40:52.610
included, but the curios on the side with the

00:40:52.610 --> 00:40:55.190
lights are not included. Do you want that? So

00:40:55.190 --> 00:40:57.590
it's just nice to have kind of a visual reference.

00:40:57.989 --> 00:40:59.590
And as you build out our website too, I know

00:40:59.590 --> 00:41:02.039
you have these little links that say. Here's

00:41:02.039 --> 00:41:03.519
without a tray. Here's with the tray. Here's

00:41:03.519 --> 00:41:05.940
a reverse tray. It's lit up. Here's the cabinets.

00:41:06.079 --> 00:41:07.639
So it'd be really nice. Maybe we can do something

00:41:07.639 --> 00:41:10.059
like that with concealed appliances. And we kind

00:41:10.059 --> 00:41:11.860
of have gone through all this already to say,

00:41:12.179 --> 00:41:14.860
this is a really great show and tell for us.

00:41:15.659 --> 00:41:18.119
And I think that's how Westridge and Argos are

00:41:18.119 --> 00:41:21.940
going to build out. I mean, in my gut. So, I

00:41:21.940 --> 00:41:24.199
mean, there's a world where I just decide and

00:41:24.199 --> 00:41:25.980
I'm having, this is why I want to get all these

00:41:25.980 --> 00:41:28.989
together. Maybe I just... do the architectural

00:41:28.989 --> 00:41:31.010
and engineering for lots one through three. Maybe

00:41:31.010 --> 00:41:33.030
I don't even touch four and five until one through

00:41:33.030 --> 00:41:34.969
three are sold. And if, well, what's going there?

00:41:35.230 --> 00:41:38.710
A similar home. Similar. If you can't get past

00:41:38.710 --> 00:41:40.070
that, then I don't have to tell you, because

00:41:40.070 --> 00:41:41.269
at the end of the day, I'm not going to be able

00:41:41.269 --> 00:41:43.869
to answer every single objection. It's all owned

00:41:43.869 --> 00:41:45.989
by us. There is a disadvantage though, because

00:41:45.989 --> 00:41:49.369
they're all different. If you want something

00:41:49.369 --> 00:41:52.829
slightly different, then you can kind of leverage

00:41:52.829 --> 00:41:54.969
each floor plan against itself and make sure

00:41:54.969 --> 00:41:57.670
that you're getting people who really love exactly

00:41:57.670 --> 00:42:01.210
that. Yeah. You're giving them choice. A lot

00:42:01.210 --> 00:42:04.010
of it's illusion of choice, like the small, medium,

00:42:04.210 --> 00:42:07.050
large jumbo popcorn at the movie theater. There

00:42:07.050 --> 00:42:09.289
really is no medium. It's the largest medium.

00:42:10.590 --> 00:42:13.829
But it pushes, right? It pushes you to jumbo.

00:42:13.829 --> 00:42:19.280
The jumbo's only 80 cents more. And it's just

00:42:19.280 --> 00:42:21.739
a little better. Yeah, exactly. It's only 20

00:42:21.739 --> 00:42:23.639
cents more. It's a dollar total. That's really

00:42:23.639 --> 00:42:25.559
what you're paying for because, you know, the

00:42:25.559 --> 00:42:28.400
containers get a little more, they get skinnier.

00:42:28.460 --> 00:42:31.480
So it's not really more. It just looks more impressive.

00:42:31.519 --> 00:42:33.199
You have more shame as you walk to your movie

00:42:33.199 --> 00:42:34.900
theater. Yeah, I'm going to eat this whole thing.

00:42:35.300 --> 00:42:39.019
Exactly. This is for the whole row. I was going

00:42:39.019 --> 00:42:43.159
to share with everybody. Anyway, so those are

00:42:43.159 --> 00:42:46.510
the exciting things that we're working on. This

00:42:46.510 --> 00:42:49.849
is 25 and Serene's doing well. And I know you

00:42:49.849 --> 00:42:53.429
post content of the Serene project. And it's

00:42:53.429 --> 00:42:55.269
going to be right around this time that we'll

00:42:55.269 --> 00:42:56.690
be talking about the Westridge and the Argos,

00:42:56.789 --> 00:42:59.190
which is really cool. Maybe every quarter three,

00:42:59.289 --> 00:43:00.530
quarter four, we're kind of in the thick of it

00:43:00.530 --> 00:43:03.590
with another subdivision. Yeah. And we always

00:43:03.590 --> 00:43:05.389
have stuff going on in Lake Las Vegas. We're

00:43:05.389 --> 00:43:08.269
closing on another lot, Christmas Eve, actually

00:43:08.269 --> 00:43:11.510
23rd, probably. So that'll be another large two

00:43:11.510 --> 00:43:14.019
story, 4 ,200 square foot home. did the 12 foot

00:43:14.019 --> 00:43:15.739
ceilings on that one on the main level, trying

00:43:15.739 --> 00:43:18.000
to make that maybe a little bit of a signature

00:43:18.000 --> 00:43:19.840
move that we do when I think about what kind

00:43:19.840 --> 00:43:22.000
of cool features I would want to home. I would

00:43:22.000 --> 00:43:23.940
love it. Those types of little things. Prep kitchens.

00:43:23.960 --> 00:43:27.019
I'd love it. A pool bathroom. I'd love it. Let's

00:43:27.019 --> 00:43:29.579
do it when we can. If we can, let's do it. And

00:43:29.579 --> 00:43:31.420
it's something that most builders are not taking

00:43:31.420 --> 00:43:34.260
that time to think about. And I can't underestimate

00:43:34.260 --> 00:43:37.139
that, that draw that we have that we've taken

00:43:37.139 --> 00:43:39.579
the time to think about those things. Right.

00:43:39.739 --> 00:43:42.670
Because you're not putting... Yeah, you're not

00:43:42.670 --> 00:43:45.710
putting the in a typical community. They're not

00:43:45.710 --> 00:43:48.909
putting those floor plans back through the architectural

00:43:48.909 --> 00:43:50.630
and engineering They've got their floor plan.

00:43:50.630 --> 00:43:52.269
It's approved. They're gonna cookie -cutter that

00:43:52.269 --> 00:43:54.289
all across the whole community However, many

00:43:54.289 --> 00:43:57.170
lots they have each of these, you know like that

00:43:57.170 --> 00:44:00.030
so you come up with the concept let's let's find

00:44:00.030 --> 00:44:03.809
a way to incorporate this I don't know what it

00:44:03.809 --> 00:44:08.030
is the the Prep kitchen because that's kind of

00:44:08.030 --> 00:44:09.530
the thing that people are looking for now. So

00:44:09.530 --> 00:44:11.969
we do that so But you're not afraid to put the

00:44:11.969 --> 00:44:14.530
money into doing that so that you can build exactly

00:44:14.530 --> 00:44:16.469
what's current and what the market is asking.

00:44:16.769 --> 00:44:20.070
We're in that area. Exactly. And Taylor, and

00:44:20.070 --> 00:44:23.130
let's face it, demographics are, we're not, you

00:44:23.130 --> 00:44:24.389
know, probably not supposed to talk about this,

00:44:24.389 --> 00:44:27.449
but we know what is in that area. It's younger

00:44:27.449 --> 00:44:30.190
families, it's affluent families. It's a great

00:44:30.190 --> 00:44:33.190
school district, maybe some multi -generational,

00:44:33.309 --> 00:44:36.190
different ethnicities. And let's cater to them

00:44:36.190 --> 00:44:39.050
and give them what they want, what we know they

00:44:39.050 --> 00:44:41.789
want. and be successful in that. And we know

00:44:41.789 --> 00:44:45.369
the price point. So we know what that buyer specifically

00:44:45.369 --> 00:44:47.269
would expect in a home, typically where they've

00:44:47.269 --> 00:44:50.670
been, what kind of home they've lived in previously.

00:44:50.769 --> 00:44:54.190
And if that spend is going to get them XYZ with

00:44:54.190 --> 00:44:56.070
this builder, then we want to be able to match

00:44:56.070 --> 00:45:01.469
and offer even more of what that would mean in

00:45:01.469 --> 00:45:04.989
another community. Exactly. And yes, hopefully

00:45:04.989 --> 00:45:07.670
we're building something that resonates. Everything

00:45:07.670 --> 00:45:10.090
you mentioned is exactly what keeps me up at

00:45:10.090 --> 00:45:12.710
night, which is why I've scrapped 50 other floor

00:45:12.710 --> 00:45:17.329
plans, because you draw it. I wish I could laugh

00:45:17.329 --> 00:45:19.510
thinking that's, you know, you're exaggerating.

00:45:19.630 --> 00:45:22.329
No, but you really are. You really, there have

00:45:22.329 --> 00:45:25.889
been that many. It probably is. Honestly, I wish

00:45:25.889 --> 00:45:28.090
I were exaggerating. I know. That's what I'm

00:45:28.090 --> 00:45:30.150
saying, is I wish we could laugh together about

00:45:30.150 --> 00:45:31.730
the, you know, your exaggeration. Oh, that's

00:45:31.730 --> 00:45:35.219
ridiculous. I know how many, I mean, I've seen

00:45:35.219 --> 00:45:38.219
how many there have been. Yes. Do we go small?

00:45:38.300 --> 00:45:40.639
Do we go medium? Do we go extra large? I have

00:45:40.639 --> 00:45:42.559
four different versions of an extra large product

00:45:42.559 --> 00:45:44.340
for all five lots. We started with townhomes

00:45:44.340 --> 00:45:47.320
on that lot, so we were definitely... We've come

00:45:47.320 --> 00:45:52.159
a long way on that one. Yeah. So lots of exciting

00:45:52.159 --> 00:45:55.900
stuff in the Trust Home Builders next year, really.

00:45:56.059 --> 00:45:57.900
I mean, I think this kind of builds us out through

00:45:57.900 --> 00:46:01.000
the next few years. And I know you're looking

00:46:01.000 --> 00:46:03.840
at other lots. There are other parcels and projects

00:46:03.840 --> 00:46:09.380
and potential out there for us too. Yeah, there's

00:46:09.380 --> 00:46:12.679
definitely a goal in mind of another serene type

00:46:12.679 --> 00:46:15.440
project, maybe in another area, low density area,

00:46:15.519 --> 00:46:17.940
but that same product has done really well to

00:46:17.940 --> 00:46:21.079
resonate with people. Um, as it finishes, there's

00:46:21.079 --> 00:46:23.059
certain things, just like for instance, I designed

00:46:23.059 --> 00:46:25.860
those 18 months ago. And although prep kitchens

00:46:25.860 --> 00:46:27.840
were big at the time, they weren't nearly as

00:46:27.840 --> 00:46:30.059
big as they are now. They're in every home magazine.

00:46:30.079 --> 00:46:32.559
And just not as easy to put in. It just was,

00:46:32.559 --> 00:46:35.360
it was a bigger, yeah, it was a bigger. And none

00:46:35.360 --> 00:46:37.719
of our serene homes have a prep kitchen. So it

00:46:37.719 --> 00:46:39.929
already shows you that well. We probably could

00:46:39.929 --> 00:46:41.630
have done better on that, or we probably, but

00:46:41.630 --> 00:46:44.690
who... Well, 18 months ago, and they all have

00:46:44.690 --> 00:46:46.590
a good pantry, so I think that's another thing

00:46:46.590 --> 00:46:48.369
that people are looking for. So I think that

00:46:48.369 --> 00:46:51.389
the pantry is sort of the previous prep kitchen.

00:46:51.690 --> 00:46:54.150
Now the prep kitchen is the new pantry. So now

00:46:54.150 --> 00:46:56.190
what I'm doing, just to give a little teaser,

00:46:56.630 --> 00:46:59.670
is I'm doing a prep kitchen, and then through

00:46:59.670 --> 00:47:02.349
that, I'm calling it dry storage because it's

00:47:02.349 --> 00:47:05.320
not quite a pantry. but it's dry storage. So

00:47:05.320 --> 00:47:07.579
it's an L shaped prep kitchen or a linear shaped

00:47:07.579 --> 00:47:10.139
prep kitchen with another, let's say that's six

00:47:10.139 --> 00:47:12.900
feet here and 12 wide. There's another six by

00:47:12.900 --> 00:47:17.559
six fully shelved storage, either behind or through

00:47:17.559 --> 00:47:21.000
one plan has it accessible from the kitchen,

00:47:21.179 --> 00:47:23.139
from the prep kitchen. So you can get and go

00:47:23.139 --> 00:47:26.619
around the back stove area and go to the prep

00:47:26.619 --> 00:47:28.159
kitchen. You can get to the dry storage from

00:47:28.159 --> 00:47:31.289
the prep kitchen or from the kitchen. Yeah, that

00:47:31.289 --> 00:47:33.309
this is the little things that are I really can't

00:47:33.309 --> 00:47:35.849
wait to see these designs really cool And I imagine

00:47:35.849 --> 00:47:38.269
that whole thing with great finishes 12 foot

00:47:38.269 --> 00:47:40.550
ceilings Maybe that interior door to the prep

00:47:40.550 --> 00:47:42.730
kitchen has a transom window above it because

00:47:42.730 --> 00:47:45.030
there's so much room between 8 foot door with

00:47:45.030 --> 00:47:48.389
a 2 foot transom above it of glass like old Craftsman

00:47:48.389 --> 00:47:52.110
style homes had I mean we can get really Really

00:47:52.110 --> 00:47:54.110
creative that stuff that people just don't see

00:47:54.110 --> 00:47:55.849
especially under one five Maybe they're seeing

00:47:55.849 --> 00:47:57.969
it in four to five million, but they're not seeing

00:47:57.969 --> 00:48:00.289
it in these price points. It's scaled down Yes,

00:48:00.289 --> 00:48:01.909
is it only three or four of those doors that

00:48:01.909 --> 00:48:03.769
are really cool? Yeah, but that's pretty neat

00:48:03.769 --> 00:48:06.809
One has an office with the double door. I want

00:48:06.809 --> 00:48:09.110
to do double French doors transom window above

00:48:09.110 --> 00:48:12.210
it How cool is that? So that's why it's been

00:48:12.210 --> 00:48:14.630
hard to pull the trigger on it until we knew

00:48:14.630 --> 00:48:20.670
for sure what we were going in So love it Yeah.

00:48:20.710 --> 00:48:23.030
Love it. Lots of great stuff on the horizon.

00:48:23.329 --> 00:48:25.889
And once we have numbers in, once we can tally

00:48:25.889 --> 00:48:28.289
up what has happened throughout 2025, obviously

00:48:28.289 --> 00:48:31.650
we'll be doing for you guys an episode, early

00:48:31.650 --> 00:48:35.050
Q1, where we kind of wrap up in 2025 as we start

00:48:35.050 --> 00:48:37.889
talking about some of what we see happening in

00:48:37.889 --> 00:48:40.690
the market as a whole in 2026, what some of the

00:48:40.690 --> 00:48:42.750
economists and analysts are predicting and what

00:48:42.750 --> 00:48:45.469
we have seen that gives us some sort of historical

00:48:45.469 --> 00:48:48.210
reference for where we think we're going. Right.

00:48:48.519 --> 00:48:50.619
Yeah, we'll give you guys more information on

00:48:50.619 --> 00:48:54.940
all of that. So we will have more coming. So

00:48:54.940 --> 00:48:57.780
thanks. All right. Appreciate you, Michael. We

00:48:57.780 --> 00:49:00.260
appreciate your insight. And thank you guys for

00:49:00.260 --> 00:49:02.800
joining us on another episode of Trust the Process

00:49:02.800 --> 00:49:05.760
podcast. And we will see you again next time.

00:49:06.079 --> 00:49:10.340
Thanks. Bye -bye. Thanks for tuning into the

00:49:10.340 --> 00:49:12.719
Trust the Process podcast. Make sure to follow

00:49:12.719 --> 00:49:15.260
us on Spotify to stay in the loop with the latest

00:49:15.260 --> 00:49:17.860
insights, project updates, and everything in

00:49:17.860 --> 00:49:19.440
between. See you next time.