WEBVTT 00:00:00.000 --> 00:00:02.660 to pull back the curtain a little bit. We're 00:00:02.660 --> 00:00:04.620 buying this from another developer who has lost 00:00:04.620 --> 00:00:09.519 it. A multi -state developer, not a nationwide 00:00:09.519 --> 00:00:12.199 publicly traded company, but not small potatoes 00:00:12.199 --> 00:00:16.879 either. And he had partially started 15. The 00:00:16.879 --> 00:00:20.120 density for 79 is approved. 15 of the 31 are 00:00:20.120 --> 00:00:23.960 halfway built. It's five acres total. The zoning 00:00:23.960 --> 00:00:27.050 is there, but the map is not. So we're kind of 00:00:27.050 --> 00:00:30.050 picking up there. Real bills, real decisions. 00:00:30.589 --> 00:00:33.250 You see the finished houses and we uncover the 00:00:33.250 --> 00:00:35.570 steps it took to get there. I'm Christa here 00:00:35.570 --> 00:00:38.149 with Michael and this is Trust the Past has podcast 00:00:38.149 --> 00:00:41.390 where we talk construction, real estate and development. 00:00:41.969 --> 00:00:43.829 We pull back the curtain on the new home industry, 00:00:44.130 --> 00:00:46.030 the real estate market and the trends shaping 00:00:46.030 --> 00:00:49.130 it all. Discover the stories, insights and expertise 00:00:49.130 --> 00:00:52.420 behind building a new home. In today's episode 00:00:52.420 --> 00:00:55.479 we introduce a major next chapter for Trust Home 00:00:55.479 --> 00:00:58.759 Builders as we prepare to move into our first 00:00:58.759 --> 00:01:02.399 multi -family and town home development. We share 00:01:02.399 --> 00:01:05.099 how the latest downtown project found us and 00:01:05.099 --> 00:01:07.280 what it means to step into a partially built 00:01:07.280 --> 00:01:11.239 site. We also uncover how we're reimagining the 00:01:11.239 --> 00:01:13.379 product, the buyers that we're designing for 00:01:13.379 --> 00:01:17.340 and how flexibility, design and smart decision 00:01:17.340 --> 00:01:19.879 making allows small teams like us to take on 00:01:19.879 --> 00:01:23.310 big projects like this. So, if you're buying, 00:01:23.829 --> 00:01:26.829 selling, building, or just curious, this one's 00:01:26.829 --> 00:01:30.620 for you. Let's jump in. Welcome back to Trust 00:01:30.620 --> 00:01:33.859 the Process, the podcast where we chat about 00:01:33.859 --> 00:01:37.019 the construction industry, real estate, new homes, 00:01:37.200 --> 00:01:39.640 and everything happening in the housing market. 00:01:39.819 --> 00:01:42.000 So welcome back, Michael, and welcome back to 00:01:42.000 --> 00:01:44.620 all of you. Thanks for being here. We're going 00:01:44.620 --> 00:01:47.500 to talk today about, for those of you who follow 00:01:47.500 --> 00:01:50.400 often, we've dribbled a little bit of information 00:01:50.400 --> 00:01:52.540 about some of the new projects that we have upcoming 00:01:52.540 --> 00:01:54.939 this year and some of the land that we have and 00:01:54.939 --> 00:01:58.200 things that are changing. We are including some 00:01:58.200 --> 00:02:01.579 multifamily to our repertoire. So that's one 00:02:01.579 --> 00:02:03.159 of the things that's changing. We're going to 00:02:03.159 --> 00:02:05.379 continue doing our luxury homes. We love the 00:02:05.379 --> 00:02:08.080 custom world. We love that buyer. But just adding 00:02:08.080 --> 00:02:12.000 something a little bit different. in a multifamily 00:02:12.000 --> 00:02:15.460 world and as home prices go up and you know it 00:02:15.460 --> 00:02:17.219 gets harder and harder for people to get into 00:02:17.219 --> 00:02:19.979 the housing market feels like the right time 00:02:19.979 --> 00:02:23.020 to incorporate some sort of a multifamily product 00:02:23.020 --> 00:02:25.520 type that will allow a little bit lower price 00:02:25.520 --> 00:02:28.460 point with the trust flair of course so yeah 00:02:28.460 --> 00:02:30.900 that's what we are starting into and so with 00:02:30.900 --> 00:02:33.240 that I'm really excited about the multifamily 00:02:33.240 --> 00:02:36.860 because as as you know I come from a builder 00:02:36.860 --> 00:02:39.020 that did multifamily and so from the marketing 00:02:39.020 --> 00:02:41.830 and sales perspective I feel like I'm excited 00:02:41.830 --> 00:02:44.909 to be in that world. And prior to that, when 00:02:44.909 --> 00:02:48.889 I was with homes .com, I was an ad executive 00:02:48.889 --> 00:02:51.949 for homes .com back maybe 10, 15, I don't know, 00:02:52.009 --> 00:02:55.610 12, 13, 14, that window in there. And my book 00:02:55.610 --> 00:02:57.909 of business was in the multifamily sector. So 00:02:57.909 --> 00:03:00.629 it was condo, town, home, apartment, all rent. 00:03:01.310 --> 00:03:06.680 And so I managed their online and digital. services 00:03:06.680 --> 00:03:08.580 and actually at the time we were in print, I 00:03:08.580 --> 00:03:11.180 guess that kind of dates me. We were still in, 00:03:11.240 --> 00:03:13.659 remember you could go to the grocery store and 00:03:13.659 --> 00:03:17.020 you could grab the book and so yes I created 00:03:17.020 --> 00:03:19.340 those ads and then you know we would track and 00:03:19.340 --> 00:03:21.520 run the analytics on their accounts and it was 00:03:21.520 --> 00:03:24.620 really still just kind of fine -tuning that whole 00:03:24.620 --> 00:03:26.860 website thing when digital marketing was still 00:03:26.860 --> 00:03:29.580 in its infancy. There's a language that you speak 00:03:29.580 --> 00:03:32.300 to that multi -family buyer and so going back 00:03:32.300 --> 00:03:35.930 into that world kind of touches my roots a little 00:03:35.930 --> 00:03:38.669 bit in a way that is fun for me. I love the custom 00:03:38.669 --> 00:03:41.629 homes and I love that demographic too, but something 00:03:41.629 --> 00:03:44.409 nostalgic about circling back on multifamily 00:03:44.409 --> 00:03:47.110 and getting to do that again. So that will be 00:03:47.110 --> 00:03:50.250 fun for me. And with that, there's a lot of, 00:03:50.349 --> 00:03:52.490 I mean, I know for you, Michael, this is a world 00:03:52.490 --> 00:03:54.789 that trust has not been in before. So I'm sure 00:03:54.789 --> 00:03:57.169 there's a lot of trepidation and the way that 00:03:57.169 --> 00:03:59.750 we've acquired this parcel is unique in itself. 00:03:59.930 --> 00:04:05.000 So would love to hear more about how We got into 00:04:05.000 --> 00:04:06.759 it, where we're going with it, your thoughts, 00:04:07.039 --> 00:04:10.259 feelings, some of the hurdles and obstacles that 00:04:10.259 --> 00:04:14.060 we may or are already facing in taking over a 00:04:14.060 --> 00:04:17.040 project that once belonged to somebody else. 00:04:17.720 --> 00:04:21.120 So tell us more about it. Well, I want to start 00:04:21.120 --> 00:04:23.040 with... Thankfully, you're comfortable because 00:04:23.040 --> 00:04:26.980 I'm terrified. I didn't say comfortable. I said 00:04:26.980 --> 00:04:30.899 excited. Excited, okay. Okay, that's true. Not 00:04:30.899 --> 00:04:33.540 necessarily the same, but ready, ready for it. 00:04:33.680 --> 00:04:37.220 I mean, you know, come what may, it's happening. 00:04:38.000 --> 00:04:39.120 So I'm ready to embrace it. It's like how they 00:04:39.120 --> 00:04:40.639 say the opposite of love is indifference, not 00:04:40.639 --> 00:04:43.259 hate. It's like, okay, the opposite, terrified, 00:04:43.639 --> 00:04:49.339 is not exciting. So yeah, we've, this project 00:04:49.339 --> 00:04:52.899 found us. that being said, I've wanted to venture 00:04:52.899 --> 00:04:56.560 into this space for some time. And I wanted to 00:04:56.560 --> 00:05:00.480 see what we could do as a company, bringing our 00:05:00.480 --> 00:05:02.959 flair, which is a lot. I love the way you use 00:05:02.959 --> 00:05:06.060 that word, our flair to different price points. 00:05:06.519 --> 00:05:09.879 And this is a great opportunity to do that. It's 00:05:09.879 --> 00:05:11.819 also a really unique project in the downtown 00:05:11.819 --> 00:05:14.759 sec in downtown area of Las Vegas. So it's a 00:05:14.759 --> 00:05:18.139 very unique buyer. It's not a dime a dozen buyer. 00:05:18.480 --> 00:05:23.060 It's not. somebody who, uh, stumbled upon it. 00:05:23.160 --> 00:05:25.519 It's probably somebody who is seeking it out. 00:05:25.779 --> 00:05:28.339 So therefore even more reason for it to be a 00:05:28.339 --> 00:05:30.240 builder like us who's going to build a compelling 00:05:30.240 --> 00:05:34.199 product because some of these buyers may, may 00:05:34.199 --> 00:05:36.540 materialize, meaning they weren't going to buy 00:05:36.540 --> 00:05:39.120 anything anyway, but they were renting a luxury 00:05:39.120 --> 00:05:42.079 high rise or renting a luxury apartment or whatever, 00:05:42.319 --> 00:05:45.420 wanting that downtown lifestyle. And now they'll 00:05:45.420 --> 00:05:46.779 consider buying. They weren't going to buy it 00:05:46.779 --> 00:05:49.870 because previously It was a home in the suburbs, 00:05:50.449 --> 00:05:52.930 25 miles from anything they want to live near 00:05:52.930 --> 00:05:56.029 or work or their friends or their walkability. 00:05:56.430 --> 00:05:59.889 And it's a new product and something compelling 00:05:59.889 --> 00:06:02.829 to push them to say, I am going to stretch and 00:06:02.829 --> 00:06:06.610 look at buying something in the area. Our nearest 00:06:06.610 --> 00:06:10.370 competitors are no one. Uh, the only other housing 00:06:10.370 --> 00:06:15.319 stock is are either other similar town homes, 00:06:15.399 --> 00:06:19.300 but there's not many, and some very old Vegas 00:06:19.300 --> 00:06:24.920 Rambler homes that are in disrepair. It's a challenge 00:06:24.920 --> 00:06:28.040 zip code, real estate -wise. The sales comps 00:06:28.040 --> 00:06:30.870 are definitely not in our favor. But the sales 00:06:30.870 --> 00:06:32.310 comps are nothing like what we're going to be 00:06:32.310 --> 00:06:35.009 putting out. Beyond that, you have the mid -rise 00:06:35.009 --> 00:06:37.170 and luxury apartment market if you're looking 00:06:37.170 --> 00:06:40.750 at housing at large. So that is our buyer. There 00:06:40.750 --> 00:06:42.629 might be some out -of -state people who are drawn 00:06:42.629 --> 00:06:45.990 to downtown Las Vegas as a vacation home. I'm 00:06:45.990 --> 00:06:48.310 not ruling out that we could have a decent amount 00:06:48.310 --> 00:06:50.410 of retirees who are going to be splitting their 00:06:50.410 --> 00:06:54.730 time between townhome here and a... their main 00:06:54.730 --> 00:06:57.509 home in Santa Barbara or wherever, San Diego, 00:06:57.949 --> 00:07:00.230 and they want something in Vegas for tax reasons, 00:07:00.350 --> 00:07:01.509 but if they're going to be here, they want to 00:07:01.509 --> 00:07:02.949 have something close to the strip, and they want 00:07:02.949 --> 00:07:04.970 to be close to the airport, you could probably 00:07:04.970 --> 00:07:07.589 take the monorail and a $10 Uber and be from 00:07:07.589 --> 00:07:11.810 the airport to this house. So there's an appeal, 00:07:12.230 --> 00:07:14.310 and we have to make a product compelling to get 00:07:14.310 --> 00:07:16.550 those people to say, oh, we always rent a house 00:07:16.550 --> 00:07:20.029 here, we always rent a hotel here, let's own 00:07:20.029 --> 00:07:22.860 our own place and keep it stocked with... our 00:07:22.860 --> 00:07:24.899 stuff and have our, you know, we come here often 00:07:24.899 --> 00:07:27.579 enough that we can do that. We have a light point 00:07:27.579 --> 00:07:30.839 about who that is. So often when you're talking 00:07:30.839 --> 00:07:33.839 multifamily, you're thinking of an entry level 00:07:33.839 --> 00:07:36.160 buyer because they're buying a product type that 00:07:36.160 --> 00:07:38.000 probably gets them into the market for the first 00:07:38.000 --> 00:07:39.980 time. That's not necessarily going to be our 00:07:39.980 --> 00:07:42.120 demographic here. I don't think I mean that's 00:07:42.120 --> 00:07:46.310 not to say we won't have any of that, but I don't 00:07:46.310 --> 00:07:48.269 think that's who we're going to have primarily. 00:07:48.449 --> 00:07:50.670 Oftentimes it's a lifestyle choice more so than 00:07:50.670 --> 00:07:53.250 it is, you know, a product type. They want to 00:07:53.250 --> 00:07:55.889 be in that area. They want that minimal lifestyle. 00:07:56.029 --> 00:07:58.110 Like you said, they're only here part time. They 00:07:58.110 --> 00:08:00.750 want it as a vacation property. So I think, I 00:08:00.750 --> 00:08:02.629 think we're going to be talking to a very different 00:08:02.629 --> 00:08:05.670 audience than the typical multifamily product 00:08:05.670 --> 00:08:09.689 type. That's a great point. So town homes generally 00:08:09.689 --> 00:08:13.389 resonate with the entry level, someone afraid. 00:08:13.689 --> 00:08:18.120 So either upsizing or downsizing. And low maintenance 00:08:18.120 --> 00:08:22.160 cost is a big portion of it. And a lot of what 00:08:22.160 --> 00:08:25.019 buys town homes are divorced couples who sell 00:08:25.019 --> 00:08:26.740 their main home and each buy townhouses. I mean, 00:08:26.860 --> 00:08:29.720 that's kind of generally who are attracted to 00:08:29.720 --> 00:08:32.919 townhouses. And that's a different demographic 00:08:32.919 --> 00:08:34.419 than what I think we're going to get in this 00:08:34.419 --> 00:08:40.250 area. We will get some of it, but I'm... Purely 00:08:40.250 --> 00:08:42.490 spiring from the hip here. I'm thinking when 00:08:42.490 --> 00:08:45.529 we left our walk at the site on Tuesday I'm thinking 00:08:45.529 --> 00:08:47.710 it's probably only gonna be about 30 % will be 00:08:47.710 --> 00:08:51.009 that entry level Driven by cost driven by homeowner. 00:08:51.009 --> 00:08:53.509 The idea of homeownership is so exciting These 00:08:53.509 --> 00:08:56.429 might be third homes second homes. This might 00:08:56.429 --> 00:08:58.289 be the fifth home they've purchased, but maybe 00:08:58.289 --> 00:09:01.090 it's a primary residence Move up move out that 00:09:01.090 --> 00:09:05.950 type of thing Therefore we have to make our product 00:09:05.950 --> 00:09:09.980 offering from the ground up fit that demographic 00:09:09.980 --> 00:09:12.059 that goes down to the floor plans and everything. 00:09:12.720 --> 00:09:15.259 And we'll have to research it entirely, right? 00:09:15.299 --> 00:09:16.899 We're going to want to be completely informed. 00:09:16.940 --> 00:09:21.059 I don't want to enter into this without any absolutes 00:09:21.059 --> 00:09:23.379 about who's going to be buying. So more market 00:09:23.379 --> 00:09:26.779 research, more research into demographic and 00:09:26.779 --> 00:09:28.820 that type, the product type, the location, the 00:09:28.820 --> 00:09:30.580 place, you know, I mean, all of those pieces. 00:09:30.600 --> 00:09:33.419 And that's work that you and I will dive into 00:09:33.419 --> 00:09:36.409 over the next few. weeks. It's coming quickly. 00:09:36.610 --> 00:09:38.809 It's coming more quickly than I imagined. So 00:09:38.809 --> 00:09:40.509 I was going to say two months, but I don't know 00:09:40.509 --> 00:09:43.730 if we have months on this one. Well, so to pull 00:09:43.730 --> 00:09:46.029 back the curtain a little bit, we're buying this 00:09:46.029 --> 00:09:50.309 from another developer who has lost it. A multi 00:09:50.309 --> 00:09:53.129 -state developer, not a nationwide publicly traded 00:09:53.129 --> 00:09:58.129 company, but not small potatoes either. And he 00:09:58.129 --> 00:10:00.850 had partially started 15. The density for 79 00:10:00.850 --> 00:10:04.730 is approved. 31 are parceled and recorded as 00:10:04.730 --> 00:10:06.370 map. They have their own parcel number, their 00:10:06.370 --> 00:10:10.049 own address. 15 of the 31 are halfway built. 00:10:10.970 --> 00:10:13.429 The back parcel, so it's five acres total. The 00:10:13.429 --> 00:10:16.889 back parcel is 48. The zoning is there, but the 00:10:16.889 --> 00:10:19.750 map is not. So we're kind of picking up there. 00:10:20.710 --> 00:10:22.870 Our first goal is to close on the property, which 00:10:22.870 --> 00:10:25.889 will be imminently and getting the permits reactivated. 00:10:26.090 --> 00:10:28.590 Also working on that as well. If all of that 00:10:28.590 --> 00:10:30.720 goes according to plan, Some of these are going 00:10:30.720 --> 00:10:32.799 to be hitting the market in spring. Some of those 00:10:32.799 --> 00:10:35.120 partially built units we can finish very quickly. 00:10:35.379 --> 00:10:37.679 They're maybe eight week start to finish. We've 00:10:37.679 --> 00:10:39.159 got other things that are going to slow us up. 00:10:39.279 --> 00:10:41.279 The Envy energy power plan, things like that, 00:10:41.299 --> 00:10:43.620 getting all the utility work done. So we might 00:10:43.620 --> 00:10:45.419 have to slow roll it a little bit. I hope not 00:10:45.419 --> 00:10:47.779 too much. I don't want to have completed homes 00:10:47.779 --> 00:10:50.620 sitting there, like sitting ducks without any 00:10:50.620 --> 00:10:53.159 power or running on temp power. We can't sell 00:10:53.159 --> 00:10:55.820 them like that anyway. I'm assuming all the other 00:10:55.820 --> 00:10:58.220 point of connections are there because you can't 00:10:58.220 --> 00:11:01.899 really. pour your slabs until the sewer connections 00:11:01.899 --> 00:11:03.759 area, water supply lines are there. So I'm imagining 00:11:03.759 --> 00:11:05.460 we're going to be good to go on that. Really 00:11:05.460 --> 00:11:10.460 just power and the permitting. And to give some 00:11:10.460 --> 00:11:13.220 context, when you drive down that street, they 00:11:13.220 --> 00:11:15.399 look like homes on this street. I mean, we're 00:11:15.399 --> 00:11:18.600 not buying dirt. This is a project that's already 00:11:18.600 --> 00:11:21.299 well underway. There are some buildings that 00:11:21.299 --> 00:11:23.100 are stuck out. Garage doors are on. And I mean, 00:11:23.179 --> 00:11:27.000 they look like dwellings. Six of the 15 look 00:11:27.000 --> 00:11:29.100 done from the outside, if not for the lack of 00:11:29.100 --> 00:11:32.080 the street curb gutter driveways and landscaping. 00:11:32.460 --> 00:11:35.820 They look like homes. I mean, and inside they've 00:11:35.820 --> 00:11:37.879 been a little bit of vandalism, but nothing that... 00:11:37.850 --> 00:11:40.710 We haven't handled in the past and I mean, we'll 00:11:40.710 --> 00:11:43.690 get it up to shape quickly. Like I said, we'll 00:11:43.690 --> 00:11:46.929 probably be limited by the utilities and the 00:11:46.929 --> 00:11:49.769 connections there versus the homes themselves. 00:11:50.429 --> 00:11:52.610 So we'll, we're hitting the ground running and 00:11:52.610 --> 00:11:55.710 we're trying to get back to a rock home and then 00:11:55.710 --> 00:11:58.149 yeah, we'll remove anything that's damaged and 00:11:58.149 --> 00:12:00.070 we're going to end up rewiring and repiping the 00:12:00.070 --> 00:12:02.029 homes, which we would have likely wanted to do 00:12:02.029 --> 00:12:04.769 anyway. They have been sitting for about 18 months. 00:12:05.309 --> 00:12:06.870 So. there's a lot of things that we're going 00:12:06.870 --> 00:12:08.429 to want to do. I'm replacing a good amount of 00:12:08.429 --> 00:12:09.970 the windows, especially the operable windows, 00:12:10.090 --> 00:12:13.769 just because I want them to be new and feel like 00:12:13.769 --> 00:12:16.929 they're buying a new construction home. So that's 00:12:16.929 --> 00:12:19.190 kind of where we're at with it. And we're going 00:12:19.190 --> 00:12:22.950 to probably just finish the 15 that are there. 00:12:23.090 --> 00:12:25.169 I'm stuck with the footprints of those homes 00:12:25.169 --> 00:12:30.269 for the remaining 16. And the plat map is already 00:12:30.269 --> 00:12:33.129 kind of drawn for their back 48. So all that 00:12:33.129 --> 00:12:36.649 is to say is that I'm pretty stuck with the footprints 00:12:36.649 --> 00:12:39.289 for the four floor plans that the original developer 00:12:39.289 --> 00:12:41.909 had devised, but I'm not going to stick with 00:12:41.909 --> 00:12:44.710 those floor plans. We're going to create four 00:12:44.710 --> 00:12:47.429 new floor plans. We'll finish out the 15 and 00:12:47.429 --> 00:12:48.730 then we'll create four new floor plans. They're 00:12:48.730 --> 00:12:50.649 going to be very similar. There's small footprint 00:12:50.649 --> 00:12:52.190 townhomes. There's only so much I can do with 00:12:52.190 --> 00:12:55.210 them, but I've got some ideas. Square footage 00:12:55.210 --> 00:12:57.210 isn't bad on them. They're all really, I mean, 00:12:57.829 --> 00:13:01.289 Yeah, 18 to 22. That's a really good square footage 00:13:01.289 --> 00:13:03.389 to work with. It's a single family home square 00:13:03.389 --> 00:13:05.190 footage, yeah. I mean, they just happen to be 00:13:05.190 --> 00:13:08.789 connected. They're well used, high ceilings, 00:13:09.169 --> 00:13:12.070 comfortable spaces. They're nothing that we can't 00:13:12.070 --> 00:13:14.710 make fantastic. We can play with some ceiling 00:13:14.710 --> 00:13:16.830 heights and we can get creative with the floor 00:13:16.830 --> 00:13:19.629 plans. Maybe some live on the third floor versus 00:13:19.629 --> 00:13:22.019 all the... Currently they all have like a mezzanine 00:13:22.019 --> 00:13:24.019 level living space So the first floor is a garage 00:13:24.019 --> 00:13:26.259 some sort of flex space in a bedroom the middle 00:13:26.259 --> 00:13:29.259 floor the mezzanine level is all great room, 00:13:29.259 --> 00:13:31.740 communal space, and then the third floor's owner 00:13:31.740 --> 00:13:34.379 suite and other secondary bedrooms. So we're 00:13:34.379 --> 00:13:35.700 going to get really creative with them and I'm 00:13:35.700 --> 00:13:37.399 going to flip some around. That was fun. We almost 00:13:37.399 --> 00:13:39.720 stood there the other day together as a team 00:13:39.720 --> 00:13:41.720 and we're standing there talking about it and 00:13:41.720 --> 00:13:43.179 some of that stuff that you're saying, you know, 00:13:43.240 --> 00:13:45.019 what if this were on the third floor? What if 00:13:45.019 --> 00:13:46.659 we were on the first floor? How could we recon? 00:13:46.940 --> 00:13:48.899 So it was fun. It's fun to be able to reimagine 00:13:48.899 --> 00:13:51.799 the spaces in real time. I know it will make 00:13:51.799 --> 00:13:53.779 them great. That'd be amazing. Yeah. I mean, 00:13:53.799 --> 00:13:55.879 we'll be stuck with the confines of the footprints, 00:13:56.100 --> 00:13:58.200 but That's only the footprint. We can do a lot. 00:13:58.919 --> 00:14:01.159 There's so much we can do between here and there. 00:14:01.580 --> 00:14:03.620 So let's pretend the main footprint. Minus the 00:14:03.620 --> 00:14:05.799 garage is like 600 square feet. The second level 00:14:05.799 --> 00:14:08.080 is a thousand to play with or 800. And then you 00:14:08.080 --> 00:14:10.500 got another 800. You can see how you can get 00:14:10.500 --> 00:14:12.419 really creative in those spaces with windows 00:14:12.419 --> 00:14:15.059 and ceiling heights. Even just standing there, 00:14:15.059 --> 00:14:16.960 we started getting creative on the one shower. 00:14:17.059 --> 00:14:18.860 Like it has an oversized shower. Why wouldn't 00:14:18.860 --> 00:14:21.500 we turn this into a wet room and put a bathtub 00:14:21.500 --> 00:14:23.299 in there and put it, you know, I mean, it's just 00:14:23.299 --> 00:14:25.720 re -imagining some of the spaces, even within 00:14:25.720 --> 00:14:27.860 the walls that are already existing. Right. Just 00:14:27.860 --> 00:14:32.980 with what we have. It's just fun to, to re - 00:14:32.299 --> 00:14:36.240 imagine. I agree. I'm excited for it. I'm terrified. 00:14:36.659 --> 00:14:39.139 We'll get everything get a lot more clarity in 00:14:39.139 --> 00:14:40.919 the next two to three weeks. We've gotten a lot 00:14:40.919 --> 00:14:43.679 of clarity in the last four to five weeks. We've 00:14:43.679 --> 00:14:46.620 been on the project originally back in September, 00:14:46.620 --> 00:14:48.639 and then we thought we lost it to a nationwide 00:14:48.639 --> 00:14:52.100 home builder. So they came back to us. Uh, which 00:14:52.100 --> 00:14:53.679 either means that nationwide home builder didn't 00:14:53.679 --> 00:14:55.440 want it or didn't perform for whatever reason. 00:14:56.000 --> 00:14:59.200 So doesn't bode well, but should we be scared? 00:14:59.480 --> 00:15:01.759 Yeah, I was just crossed my mind. I just think 00:15:01.759 --> 00:15:03.860 they weren't up for the challenge. Yeah. You 00:15:03.860 --> 00:15:06.460 know, a nationwide home builder for us to control 00:15:06.460 --> 00:15:10.179 79 lots in one tract is I don't want to say once 00:15:10.179 --> 00:15:12.000 in a lifetime, because it's probably now going 00:15:12.000 --> 00:15:14.600 to unlock a lot more. But it's something that 00:15:14.600 --> 00:15:18.080 we couldn't say no on. Whereas they're used to 00:15:18.080 --> 00:15:21.019 controlling 80 to 150 parcel individual building 00:15:21.019 --> 00:15:23.679 lots. And that's new for us. It's nothing I've 00:15:23.679 --> 00:15:27.600 ever done. Yes. And it's a unique. demographic. 00:15:27.960 --> 00:15:29.740 They kind of stuck with those footprints, stuck 00:15:29.740 --> 00:15:31.419 with the 15, where they're going to demo those 00:15:31.419 --> 00:15:34.059 15 and start with their own product. I mean, 00:15:34.159 --> 00:15:35.620 there's just so many unanswered questions that 00:15:35.620 --> 00:15:36.799 they probably had that I was willing to take 00:15:36.799 --> 00:15:37.860 care of. And they probably just wanted the land, 00:15:38.159 --> 00:15:40.299 really. They wanted the land and the entitlements. 00:15:40.299 --> 00:15:43.679 They wanted the land, the location. Right. And 00:15:43.679 --> 00:15:45.139 the entitlements that came along with it, all 00:15:45.139 --> 00:15:49.940 the zoning. And it's on its surface a killer 00:15:49.940 --> 00:15:51.720 deal. And I'm sure there's going to be some unknowns 00:15:51.720 --> 00:15:54.919 that are going to make it. a maiming deal, maybe 00:15:54.919 --> 00:16:00.120 not a killer deal, but I still think there's 00:16:00.120 --> 00:16:02.259 enough wiggle room in the margins because of 00:16:02.259 --> 00:16:04.600 the way we're purchasing it that for a builder 00:16:04.600 --> 00:16:06.940 like us to take on this large of an undertaking, 00:16:07.159 --> 00:16:10.440 it'll be nice to have that cushion. because there's 00:16:10.440 --> 00:16:12.100 going to be things we run into that we didn't 00:16:12.100 --> 00:16:14.320 foresee or things that I didn't realize how fast 00:16:14.320 --> 00:16:18.100 could spiral when you're doing 79 versus we do 00:16:18.100 --> 00:16:20.740 four or five or six at a time, or just it's different 00:16:20.740 --> 00:16:22.519 scale that I'm not used to or we're not used 00:16:22.519 --> 00:16:25.419 to as a company. But that being said, I'm lucky. 00:16:25.539 --> 00:16:26.940 Different scale and a different build style. 00:16:27.399 --> 00:16:29.080 It's definitely a different build style. Even 00:16:29.080 --> 00:16:31.340 just the timelines are all going to be shuffled 00:16:31.340 --> 00:16:34.679 from what were typical timelines in our custom 00:16:34.679 --> 00:16:36.980 product type. you know, from the ground up, even 00:16:36.980 --> 00:16:38.679 though we're a little bit further along in this, 00:16:38.799 --> 00:16:41.539 because we're taking it over, just the build 00:16:41.539 --> 00:16:45.120 alone is going to be different than what it would 00:16:45.120 --> 00:16:47.259 be on a single family. It's going to be like 00:16:47.259 --> 00:16:48.720 how we've been building out of South Shore for 00:16:48.720 --> 00:16:50.879 six years. It's going to be like that. It's going 00:16:50.879 --> 00:16:52.419 to be something we're building out. I'm thinking 00:16:52.419 --> 00:16:55.279 conservatively three years, because that's probably 00:16:55.279 --> 00:16:58.600 right around 25 to 30 units sold per year, which 00:16:58.600 --> 00:17:01.440 is a pretty healthy sales base. Even a nationwide 00:17:01.440 --> 00:17:03.919 builder would probably not go much faster than 00:17:03.919 --> 00:17:07.700 that. So I'm seeing a world where it's four years 00:17:07.700 --> 00:17:09.859 by the time we're building out the last few units. 00:17:10.420 --> 00:17:13.369 And by then the Bullet train could be in, I think 00:17:13.369 --> 00:17:16.150 they're saying 2028 or 2029. I mean, we're or 00:17:16.150 --> 00:17:19.150 at least where's that station? Well, imminently, 00:17:19.170 --> 00:17:20.650 it's going to be in the south part of town. But 00:17:20.650 --> 00:17:23.130 I think there's a plan to connect it via light 00:17:23.130 --> 00:17:26.349 rail to downtown. But we'll see that only makes 00:17:26.349 --> 00:17:30.130 sense to have it. Yeah, that's a gift for Las 00:17:30.130 --> 00:17:33.470 Vegas at Brightline Come. If we can't finish 00:17:33.470 --> 00:17:36.269 the thought and get a light rail system like 00:17:36.269 --> 00:17:38.650 the Bart, like the Bay Area Transport that runs 00:17:38.650 --> 00:17:41.109 in the middle of the median. If we can't come 00:17:41.109 --> 00:17:42.369 up with something like that, then that's kind 00:17:42.369 --> 00:17:47.509 of a failing on our side. We as a city are a 00:17:47.509 --> 00:17:49.769 metro area, but it crosses a lot of jurisdictions. 00:17:49.769 --> 00:17:51.890 We've grown to the capacity. We need more than 00:17:51.890 --> 00:17:53.950 just that monorail down the strip. There needs 00:17:53.950 --> 00:17:58.009 to be a better central transport system within 00:17:58.009 --> 00:18:02.730 the city. Agreed. It'll be nice to go from, I 00:18:02.730 --> 00:18:07.359 think, LA, Rancho Cucamonga, and then maybe somewhere 00:18:07.359 --> 00:18:09.480 in Hispania and then Las Vegas. So it's gonna 00:18:09.480 --> 00:18:12.599 have quite a few stops and it's Brightline's 00:18:12.599 --> 00:18:14.140 building it. So anyone who's curious can look 00:18:14.140 --> 00:18:16.059 up Brightline's rail and it's already under construction. 00:18:16.160 --> 00:18:17.079 I mean, there was a world where they thought 00:18:17.079 --> 00:18:19.140 it was going to finish by the Olympics in LA, 00:18:19.339 --> 00:18:21.160 2028. And I don't know if we're gonna make that, 00:18:21.859 --> 00:18:23.460 but they were definitely hoping, cause it'll 00:18:23.460 --> 00:18:27.400 be huge. But you realize that when you're spanning 00:18:27.400 --> 00:18:30.539 three to four years of market, what we're selling 00:18:30.539 --> 00:18:34.339 in phase one for 470s might be 570s or 600s by 00:18:34.339 --> 00:18:36.720 the time we're out of there. So that is also 00:18:36.720 --> 00:18:38.480 exciting. And there's also nothing stopping us 00:18:38.480 --> 00:18:41.180 from, okay, we designed a couple of floor plans 00:18:41.180 --> 00:18:44.000 and let's recycle them. Let's change them. I 00:18:44.000 --> 00:18:47.339 mean, we have 26 other lots left. We're not stuck 00:18:47.339 --> 00:18:49.319 with those floor plans. If the needs change and 00:18:49.319 --> 00:18:51.220 the market changes, we can always kind of zig 00:18:51.220 --> 00:18:53.019 and zag and make a different product offering. 00:18:53.799 --> 00:18:56.359 Exactly. Exactly, because we own the land. We 00:18:56.359 --> 00:18:58.599 own the land. Whatever we decide, we might get 00:18:58.599 --> 00:19:00.799 halfway through the project and realize that 00:19:00.799 --> 00:19:02.960 we've had 100 people walk through the door who 00:19:02.960 --> 00:19:07.700 asked for XYZ. Because of our size, we can flip 00:19:07.700 --> 00:19:10.500 on a dime and now create that XYZ to serve the 00:19:10.500 --> 00:19:13.220 need that's being requested out there. That's 00:19:13.220 --> 00:19:16.759 really fun. It does lend itself to a really open 00:19:16.759 --> 00:19:20.089 -ended opportunity. I agree. I'm very thrilled 00:19:20.089 --> 00:19:23.170 not to overuse the word excited. I'm very, very 00:19:23.170 --> 00:19:26.250 excited. Because there's still a creative aspect 00:19:26.250 --> 00:19:28.029 to it, but there's also the scale that I've always 00:19:28.029 --> 00:19:30.369 wanted to accomplish. And I didn't think was 00:19:30.369 --> 00:19:32.710 possible in this decade. I thought maybe that 00:19:32.710 --> 00:19:36.650 was like, you know, in the 2030s that I could 00:19:36.650 --> 00:19:38.890 grow the company to that level where we have 00:19:38.890 --> 00:19:42.329 control over entire tracks. And oddly enough, 00:19:42.490 --> 00:19:44.289 another townhouse project found us that is a 00:19:44.289 --> 00:19:47.119 ground up project about Five miles away. Two 00:19:47.119 --> 00:19:49.940 more. Two more. Once for sure. You open yourself 00:19:49.940 --> 00:19:53.420 up to new ideas and all of a sudden... I couldn't 00:19:53.420 --> 00:19:55.980 believe it. I could not believe it when it came 00:19:55.980 --> 00:19:59.079 my way. Okay, yes, we will do it and we're doing 00:19:59.079 --> 00:20:02.839 it as a joint venture and they've signed their 00:20:02.839 --> 00:20:05.730 joint venture documents as of... Yesterday morning, 00:20:05.730 --> 00:20:08.869 so it is happening. That's another 24 most likely 00:20:08.869 --> 00:20:11.869 Units and that will be the entry level that will 00:20:11.869 --> 00:20:13.769 be price point all the way just based on where 00:20:13.769 --> 00:20:15.630 it is it's also in a little bit of a challenge 00:20:15.630 --> 00:20:18.390 zip code, but It's an established zip code. There's 00:20:18.390 --> 00:20:19.950 a lot of housing stock there, which means there's 00:20:19.950 --> 00:20:22.910 a lot of population in that land and not a lot 00:20:22.910 --> 00:20:25.609 of land so it's another info project which seems 00:20:25.609 --> 00:20:30.150 to be our specialty and Well, yeah, we'll we'll 00:20:30.150 --> 00:20:32.410 do the best we can within the confines and I 00:20:32.410 --> 00:20:35.289 know that price is going to be a huge you know, 00:20:35.490 --> 00:20:37.170 motivator for people in that area because they 00:20:37.170 --> 00:20:39.789 are going to be probably 90 % first time home 00:20:39.789 --> 00:20:42.150 buyers. And if they aren't, they're probably 00:20:42.150 --> 00:20:45.250 a really different project. Right. Could be an 00:20:45.250 --> 00:20:47.549 older, you know, person who wants to sell their 00:20:47.549 --> 00:20:49.609 high maintenance home. There's always that possibility, 00:20:49.849 --> 00:20:52.009 but I guess they weren't low. Yeah. No yard. 00:20:52.089 --> 00:20:53.690 They don't want the pool. They don't want, you 00:20:53.690 --> 00:20:56.210 know, they want a simple lifestyle or snowbirds 00:20:56.210 --> 00:20:58.250 who are really here a portion of the year or 00:20:58.250 --> 00:21:02.269 probably less of that, that parcel. But, you 00:21:02.269 --> 00:21:04.690 know, it's funny, my, the Last company that I 00:21:04.690 --> 00:21:07.349 was with, we had primarily a first time buyer 00:21:07.349 --> 00:21:11.109 profile and we had an 84 year old woman who bought 00:21:11.109 --> 00:21:14.200 her first home. her first home ever. I mean, 00:21:14.259 --> 00:21:16.779 the celebration that we had with this woman was 00:21:16.779 --> 00:21:20.299 so fun. I mean, we celebrate, you always celebrate 00:21:20.299 --> 00:21:22.339 purchases with anybody, but there's something 00:21:22.339 --> 00:21:24.339 really unique and special about a first time 00:21:24.339 --> 00:21:27.420 homebuyer. But that first time homebuyer profile 00:21:27.420 --> 00:21:31.640 is not just young anymore. It's, you know, and 00:21:31.640 --> 00:21:33.859 it has pushed further and further back. It used 00:21:33.859 --> 00:21:38.440 to be kind of that 25 to 28, 23 to 28. Now, really, 00:21:38.640 --> 00:21:42.380 it's 34 to 40, right? I mean, it's not If you 00:21:42.380 --> 00:21:46.200 pull the median, it's in your late 30s. Statistically, 00:21:46.960 --> 00:21:49.880 you're most likely to buy your first home in 00:21:49.880 --> 00:21:53.720 your late 30s, which is not a good sign for the 00:21:53.720 --> 00:21:56.980 overall... It's indicative of the market, right? 00:21:57.079 --> 00:22:00.180 It's where the world has pushed prices that people 00:22:00.180 --> 00:22:03.380 just can't get in any earlier. In Sunbelt cities 00:22:03.380 --> 00:22:07.339 and desirable cities, I mean, if you're in an 00:22:07.339 --> 00:22:10.920 exurb of... a city in Ohio, maybe that's not 00:22:10.920 --> 00:22:14.019 the case. I know I'm from upstate New York and 00:22:14.019 --> 00:22:15.819 all my cousins owned houses by the time they 00:22:15.819 --> 00:22:18.660 were 24 years old because they were all under 00:22:18.660 --> 00:22:21.099 $200 ,000 and they still are, by the way. 15 00:22:21.099 --> 00:22:23.460 years later, they're homes of value, you know, 00:22:23.819 --> 00:22:26.700 10 % maybe. And what we see in two years, you 00:22:26.700 --> 00:22:30.180 know, they see in 20 years. So, but that's... 00:22:30.839 --> 00:22:33.779 It's also a function of where we live. I mean, 00:22:33.880 --> 00:22:36.500 Las Vegas is not a cheap city anymore. The last 00:22:36.500 --> 00:22:38.500 10 years, I don't think it's been a cheap city 00:22:38.500 --> 00:22:41.180 for probably 10 years. For certainly the last 00:22:41.180 --> 00:22:45.579 four years and five years. We've outpaced some 00:22:45.579 --> 00:22:47.759 Inland Empire cities in California. We've outpaced 00:22:47.759 --> 00:22:53.359 some Northern California exurbs. We've become 00:22:53.359 --> 00:22:56.180 a... City in our own right in terms of sales 00:22:56.180 --> 00:22:58.519 price and the population and amenities So I guess 00:22:58.519 --> 00:23:01.500 there's no reason why we would expect homeownership 00:23:01.500 --> 00:23:04.539 to be any better than the national averages That's 00:23:04.539 --> 00:23:06.400 true. That's true So when you say first -time 00:23:06.400 --> 00:23:09.140 homebuyer, we're you know, what that's a really 00:23:09.140 --> 00:23:11.339 broad spectrum of people. Sometimes they're waiting 00:23:11.339 --> 00:23:13.470 until you know, maybe they've gone to college 00:23:13.470 --> 00:23:15.009 and they're waiting until they get that promotion 00:23:15.009 --> 00:23:16.670 or the next new job, or they're waiting until 00:23:16.670 --> 00:23:18.670 they have a partner in a dual income household 00:23:18.670 --> 00:23:22.069 or whatever it might be. But that's 24 homes 00:23:22.069 --> 00:23:25.490 that will be a pretty diverse opportunity of 00:23:25.490 --> 00:23:28.930 people to sell to. It will. I mean, it's definitely 00:23:28.930 --> 00:23:31.190 something that we'll have to phase in as well, 00:23:31.210 --> 00:23:34.609 you know, with demand. No one's going further 00:23:34.609 --> 00:23:39.089 out because it is stilter. Yes. I did have a 00:23:39.089 --> 00:23:42.009 meeting with my engineering firm. yesterday, 00:23:42.009 --> 00:23:44.349 and believe it or not, there's a world where 00:23:44.349 --> 00:23:47.390 we have a map recorded by the end of this year. 00:23:48.250 --> 00:23:52.210 Wow. Okay. Because the owners I JV'd with did 00:23:52.210 --> 00:23:56.049 all the zoning change. So all I have to do is 00:23:56.049 --> 00:23:58.009 do the drainage, hydrology studies, things like 00:23:58.009 --> 00:24:00.349 that, water network analysis, traffic, lay out 00:24:00.349 --> 00:24:04.829 the map. Zoning's approved. So we're in the fun 00:24:04.829 --> 00:24:07.579 part now where we get to... And I get creative 00:24:07.579 --> 00:24:13.900 so believe it or not it it will be started Finished 00:24:13.900 --> 00:24:16.779 and closed out probably before maybe even phase 00:24:16.779 --> 00:24:20.099 one the first 31 of downtown is Because the way 00:24:20.099 --> 00:24:22.259 the buildings are it's only three buildings of 00:24:22.259 --> 00:24:25.680 it's like a ten seven and seven So I can only 00:24:25.680 --> 00:24:27.660 goes quick. Yeah, I can only phase it so much. 00:24:27.680 --> 00:24:31.599 I can probably do seven then ten then seven Probably 00:24:31.599 --> 00:24:37.980 an 18 month project So yeah We'll see. Sounds 00:24:37.980 --> 00:24:40.000 big, but it is kind of a get in and get out. 00:24:40.420 --> 00:24:44.079 I'm targeting like 370s, 400s, you know, that's 00:24:44.079 --> 00:24:46.559 kind of, I don't think we'll get much more than 00:24:46.559 --> 00:24:48.859 $400 ,000 out of even a big model, even if we 00:24:48.859 --> 00:24:51.200 went to a three story concept and a couple of 00:24:51.200 --> 00:24:53.259 them. And they're smaller. They are smaller. 00:24:53.259 --> 00:24:57.019 24 foot, you know, square foot pads. You're really 00:24:57.019 --> 00:24:59.180 a narrow home. And so our square footage on those 00:24:59.180 --> 00:25:01.180 will be significantly less than they are on the 00:25:01.180 --> 00:25:03.640 downtown project. Correct. Yeah. We're probably 00:25:03.640 --> 00:25:06.420 looking at... you know, versus 1800, we're looking 00:25:06.420 --> 00:25:09.700 at more like 1300 square feet of livable. 1213, 00:25:09.779 --> 00:25:13.559 which is, you know, build a great home in that 00:25:13.559 --> 00:25:17.440 11 to 1400 square foot space. And if we can deliver 00:25:17.440 --> 00:25:20.740 something that's $150 ,000 below the median sales 00:25:20.740 --> 00:25:22.759 price for the county and it's new construction, 00:25:23.519 --> 00:25:25.220 that's exciting. I'd be pretty proud of that 00:25:25.220 --> 00:25:26.980 if we can do it. I mean, we'll see how our build 00:25:26.980 --> 00:25:29.220 comes coming, but yeah, well, I think we can 00:25:29.220 --> 00:25:31.339 get there. I'm not... Super worried about that 00:25:31.339 --> 00:25:33.440 because I know where we can make adjustments 00:25:33.440 --> 00:25:35.259 I don't want to say cuts but make adjustments 00:25:35.259 --> 00:25:37.380 to our product offering will still probably be 00:25:37.380 --> 00:25:39.759 better than Where a big production builder would 00:25:39.759 --> 00:25:42.660 be in that price point. I'll still opt for an 00:25:42.660 --> 00:25:45.119 extra $300 worth of baseboards. So they have 00:25:45.119 --> 00:25:47.099 five inch baseboards versus two inch. Yeah, I 00:25:47.099 --> 00:25:50.700 just know how I am It'll come out of the margin 00:25:50.700 --> 00:25:52.619 it won't come to the cell it won't be trickled 00:25:52.619 --> 00:25:53.900 up to the sales price It'll just come out of 00:25:53.900 --> 00:25:56.579 the margin. I know I know I know how I am So 00:25:56.579 --> 00:25:59.099 it'll be a compelling product for what it is 00:26:00.850 --> 00:26:03.170 That's exciting. And like you said, it's something 00:26:03.170 --> 00:26:04.869 to be proud of, to be able to put something in 00:26:04.869 --> 00:26:07.230 the marketplace that's going to be attainable 00:26:07.230 --> 00:26:09.049 for people who maybe didn't think they could 00:26:09.049 --> 00:26:13.029 afford a home. It's a passion of mine. I've put 00:26:13.029 --> 00:26:14.950 it out in the world a year and I've always wanted 00:26:14.950 --> 00:26:16.410 to do it when I got into home building, but I 00:26:16.410 --> 00:26:19.329 put it out, wish cast it into the universe that 00:26:19.329 --> 00:26:23.150 I want to do more attainable product. And these 00:26:23.150 --> 00:26:25.410 projects have found me. including our Western 00:26:25.410 --> 00:26:27.509 Nargos. Now, again, they're twice the median 00:26:27.509 --> 00:26:30.730 average, twice the median sales price, but that's, 00:26:30.730 --> 00:26:33.430 we're used to building four to six times the 00:26:33.430 --> 00:26:35.890 median sales price. And although I love that 00:26:35.890 --> 00:26:39.710 space, I'm tired of buying $60 ,000 worth of 00:26:39.710 --> 00:26:43.450 appliances for one house. It's going to be kind 00:26:43.450 --> 00:26:45.509 of nice to say, oh, $60 ,000 bought the whole 00:26:45.509 --> 00:26:51.089 phase if we're doing a phase of 10 or 20. Very 00:26:51.089 --> 00:26:53.309 different. So that's what we have going on and 00:26:53.309 --> 00:26:56.009 we're teasing it a little bit now and you know, 00:26:56.190 --> 00:26:58.569 stay tuned for more We'll definitely have more 00:26:58.569 --> 00:27:00.710 developments, especially once we officially own 00:27:00.710 --> 00:27:03.589 it. It is ours It's under contract and it's just 00:27:03.589 --> 00:27:07.549 got we got some hurdles to jump through logistically 00:27:07.549 --> 00:27:11.930 and legally and nothing that should Throw a major 00:27:11.930 --> 00:27:13.549 wrench in it, but it's just going through the 00:27:13.549 --> 00:27:16.549 motions of that. Meanwhile, we're doing all of 00:27:16.549 --> 00:27:19.900 our backend stuff to limit our downtime as soon 00:27:19.900 --> 00:27:21.859 as we do own it, as soon as we start paying interest, 00:27:22.400 --> 00:27:24.539 trying to limit our downtime on that as well. 00:27:25.299 --> 00:27:27.660 Had a meeting out there earlier this week with 00:27:27.660 --> 00:27:30.519 all of our subcontractors, just kind of getting 00:27:30.519 --> 00:27:32.240 them on board. This is what the electrical looks 00:27:32.240 --> 00:27:33.660 like, this is what it's going to need so that 00:27:33.660 --> 00:27:36.079 you can start collecting pricing, make sure that 00:27:36.079 --> 00:27:38.160 everybody has the time in their schedules and 00:27:38.160 --> 00:27:41.279 the labor available to be ready to hit the ground 00:27:41.279 --> 00:27:45.980 as soon as we sign to own it. Yeah, because there 00:27:45.980 --> 00:27:49.319 are things that... Right. There are things that 00:27:49.319 --> 00:27:52.119 we can do before our first permit. We can clean 00:27:52.119 --> 00:27:53.960 up the site. We can get rid of anything that's 00:27:53.960 --> 00:27:56.279 damaged. There's a lot of things we can do. We 00:27:56.279 --> 00:27:59.200 can do demo. We can't do any demo. We can do 00:27:59.200 --> 00:28:01.180 demo because of what we're doing. We're not taking 00:28:01.180 --> 00:28:04.220 down entire structures. We're just removing damaged 00:28:04.220 --> 00:28:06.960 drywall and leaving, you know, cutting access 00:28:06.960 --> 00:28:10.480 points for wiring and piping and all those things 00:28:10.480 --> 00:28:12.220 we can do. And it's been an abandoned site. So 00:28:12.220 --> 00:28:14.319 there's just leaves and there's trash that's 00:28:14.319 --> 00:28:16.039 blown down the street and all of that kind of 00:28:16.039 --> 00:28:18.319 stuff. And we've, you know, already got somebody 00:28:18.319 --> 00:28:21.299 who's going out to just do that part. But even 00:28:21.299 --> 00:28:24.099 just that is going to be a huge improvement. 00:28:24.740 --> 00:28:26.779 Agreed. Yeah, I'm excited. Just makes it feel 00:28:26.779 --> 00:28:29.319 alive when it's not covered in weeds or tumbleweeds 00:28:29.319 --> 00:28:34.500 and trash. Right. Yeah, and we'll have hiccups 00:28:34.500 --> 00:28:37.180 and we'll have drama and we're going to have 00:28:37.180 --> 00:28:38.700 great security as downtown. I mean, we're going 00:28:38.700 --> 00:28:40.579 to have great security, especially until the 00:28:40.579 --> 00:28:42.519 first few residents start moving in. We're going 00:28:42.519 --> 00:28:44.000 to have great security down there just to make 00:28:44.000 --> 00:28:47.210 sure we're covered. And construction sites notoriously 00:28:47.210 --> 00:28:51.930 have things that walk off. They do. It's just 00:28:51.930 --> 00:28:54.690 part of it. That's factored into the margin as 00:28:54.690 --> 00:28:59.049 well. Right. It is. Yeah, exactly. It is. It 00:28:59.049 --> 00:29:00.650 doesn't matter where you're building. Construction 00:29:00.650 --> 00:29:02.430 site, you know, people want the copper, people 00:29:02.430 --> 00:29:05.769 want the appliances. So having security on site 00:29:05.769 --> 00:29:09.500 is... really the only way to, you don't lose 00:29:09.500 --> 00:29:11.900 the quantity of inventory. Right, right. There's 00:29:11.900 --> 00:29:13.759 a lot of management that comes with that. Right 00:29:13.759 --> 00:29:17.099 timing things, right timing appliances and securing 00:29:17.099 --> 00:29:20.019 the houses and more onsite project management. 00:29:20.180 --> 00:29:22.279 And we're used to kind of having a little bit 00:29:22.279 --> 00:29:25.220 of a laissez -faire management style with some 00:29:25.220 --> 00:29:27.240 of our guard gated communities where we just 00:29:27.240 --> 00:29:30.220 know that now shoot the front door. I mean, I 00:29:30.220 --> 00:29:31.700 shouldn't say this, but a couple of our houses 00:29:31.700 --> 00:29:34.150 out. I'm going to say everything. We're going 00:29:34.150 --> 00:29:35.670 to get the addresses and everything. They weren't 00:29:35.670 --> 00:29:37.329 even locked for a month. What are you going to 00:29:37.329 --> 00:29:40.650 say? They weren't even locked for a month. They 00:29:40.650 --> 00:29:42.349 should probably lock these houses at the end 00:29:42.349 --> 00:29:44.769 of the day. They're fully done houses. Jeez. 00:29:45.279 --> 00:29:48.660 I know. We got a lazy, right? Not lazy, but complacent. 00:29:48.660 --> 00:29:51.039 Yeah, you know that you have guard gated. And 00:29:51.039 --> 00:29:53.539 out there, obviously, we're not only guard gated, 00:29:53.740 --> 00:29:56.519 but patrolled. And the patrol knows us. And so 00:29:56.519 --> 00:29:58.180 they're watching our homes a little bit more 00:29:58.180 --> 00:30:02.460 carefully. So it really isn't completely unattended. 00:30:02.880 --> 00:30:05.319 But as soon as some of those finishes and things 00:30:05.319 --> 00:30:09.940 start going into it, it's time to secure them 00:30:09.940 --> 00:30:11.660 up. It's just a new consideration. But in this 00:30:11.660 --> 00:30:15.640 case, we'll have to do it far sooner. Oh, for 00:30:15.640 --> 00:30:17.779 sure. Yeah. And because it's been abandoned, 00:30:18.319 --> 00:30:19.960 you and I know what's out there, but even you 00:30:19.960 --> 00:30:23.940 guys can imagine people have tried to make it 00:30:23.940 --> 00:30:25.740 a comfortable place for them when... Some of 00:30:25.740 --> 00:30:29.700 our first buyers, yeah. Exactly. Staying rent 00:30:29.700 --> 00:30:33.539 -free. Right. Yeah. So yeah, a little cleanup 00:30:33.539 --> 00:30:35.940 and a little start over on some of them, but 00:30:35.940 --> 00:30:39.190 it will be... will be a fun challenge. And the 00:30:39.190 --> 00:30:42.529 whole team is excited. I know you are, and obviously 00:30:42.529 --> 00:30:45.430 you can hear that I am, but the whole team is 00:30:45.430 --> 00:30:47.490 excited to get started on it. I don't think one 00:30:47.490 --> 00:30:49.210 person has said - Even our vendors, our contract, 00:30:49.390 --> 00:30:51.890 everybody. Everybody's excited. Yeah, everybody 00:30:51.890 --> 00:30:53.930 is. Yes, our vendors were excited when they were 00:30:53.930 --> 00:30:57.250 there. And yes, so we've definitely got the support. 00:30:58.750 --> 00:31:01.029 Yeah. It'll be a good one. Hopefully the market's 00:31:01.029 --> 00:31:03.490 excited. Yeah. Yeah. Yeah. And we'll keep you 00:31:03.490 --> 00:31:05.789 guys updated. Obviously, it's going to be taking 00:31:05.789 --> 00:31:07.750 up a lot of our bandwidth and a lot of our time 00:31:07.750 --> 00:31:10.490 and energy. And so conversations and new topics 00:31:10.490 --> 00:31:13.410 and things will come up regularly. So you can 00:31:13.410 --> 00:31:16.630 expect to hear a lot more about it as time goes. 00:31:17.630 --> 00:31:20.490 So this is just the first of many conversations 00:31:20.490 --> 00:31:23.529 we will be having about this project and other 00:31:23.529 --> 00:31:25.589 townhome projects that may come to us in the 00:31:25.589 --> 00:31:29.009 future. Thanks for your time, Michael. Thank 00:31:29.009 --> 00:31:31.970 you for your knowledge. Appreciate it. And thank 00:31:31.970 --> 00:31:35.009 you guys for being here, and we will see you 00:31:35.009 --> 00:31:37.470 on the next episode of Trust the Process podcast. 00:31:37.930 --> 00:31:40.109 Until then, be well. Bye -bye.