Understanding the why, the strategy and how to implement that strategy. The market cycle dictates the strategies we employ to stay ahead of volatile market conditions. Rick spends time walking a new project with operating partner and Fund 3 investor Dolmar Cross and discussing the unique concept of semi-custom home building which was fueled by customer input.
Dolmar: Opportunity, diversification and working with the right people are key and I wanted Rick to talk about and touch on some of the investments and opportunities that we have going on together right now.
Rick: Absolutely, well I’m actually really excited about this particular project and the reason why is because when you talk about educating investors it’s all about really understanding the why the strategy and then how to implement and so you’re literally in one of our projects that we’re funding right now through the fund. So, if you’re an investor in the fund you’re literally a part of this deal. What’s essential is this particular strategy that we’re doing right now in Georgia as we are building in a custom. Community is really high end luxury development so there’s a lot of beautiful homes and what’s interesting is during the cycle.
The cycle does not tell you one device, it shows you how to buy within each stage and so what I want to time briefly here is the fact that about two and a half years ago it would be too early for us to actually develop in this particular community but because we’re in the actual growth cycle in the growth stage of the real estate cycle. It allows us the ability to not only flip properties but also to implement the strategy of building what we call infill lots..
We’ve bought lots in this community, we have about 24 left and we’re building these semi custom homes and what that allows us to do is to build a quality product at a price that’s still reasonable within a market that has this huge demand why because there’s no more inventory in the marketplace and so that’s exactly what we’re executing right now. This is one of the strategies we’re implementing with Dolmar and we’re just super excited because we get to bring investors from all walks of life to be able to join us through the fund and be a part of deals just like this. All right guys so one of the other particular things that I like about being able to build from scratch doing.
These types of custom homes or semi custom homes as we call them is the fact that we’re able to create a product that’s unique, it’s different and every time we build a floor plan for example this particular property is called the cumberland. We’ve already built it in the past and we found some of the discrepancies that we could have done better and so we started doing is improving upon that strategy and working the floor plan and in fact, if you want why don’t we go upstairs and I’ll show you some examples of what we’ve done to improve this which is the reason why at this very stage we’re already under contract with an end buyer because again. It’s telling us what the market wants and we’ve been able to deliver it with the adjustments that we make all right so for example the last time we built this floor plan which is actually right across the street one of the things that we noticed within the plans is that there was a lot of inefficient use of space right and so for example if you look at this wall right here we had one window here another window to the right and another window to the left. The problem with that is if you look at the actual way that the ceilings were built the roof line, the roof line made it for very inefficient space and so you lost a lot of storage room and also the room felt darker but yet for whatever reason the closet had light in it so it just felt like yeah it was nice but there was ways to improve it so what we did is we actually moved the windows to the center. We opened it up so it brings a lot of lightning into the actual room itself and then what we started doing is actually in the original space that we had we started making this additional storage space for everyone it looks open it feels more open there’s a lot more lightning in the home and now we have even more storage space which everyone needs and wants.
Alright so here’s another example tomorrow that with this particular floor plan the way that it was designed just based on the stairs where they were they had brought them in about a foot over so the stairs were literally where my feet are right now right and the problem is it made this really narrow space that felt like a wasted space yeah now some people with the design team did some amazing things with it so the clients at bottom were super happy and they were excited but we realized that there was a room for improvement for us so what we’ve done in this space by actually moving the stairs slightly we’ve opened the space and made it wider so that now you can actually put a desk here and actually creates a nicer space with again windows and you can now still have a more functional space for somebody to have a mini office in the second story which is one of the appeals that we had a lot of feedback from the buyer they were so excited because again they’re working virtually and this gives them the ability to have their little mini office space on the second story with incredible views.
Dolmar: So we’re in the garage right now and one of the things I noticed as driving around neighborhood checking out some of the other development going on here I noticed some of the other two bedroom houses have attached garages but this one is detached and I wanted to hear from you what is the strategy behind that.
Rick: No, absolutely. Well in a community like this if you think about it we’re in Georgia this is a luxury low country home and so in Georgia there’s a style where they want you to make that feel like you ended up building later on and you added to your property line and you added another storage place for your car.
It’s just a really low country feel right and so this community loves that style and so what we’ve done in this particular property we’re building on the house next door is a one-story, it is an attached garage this is a detached garage because of the two stories so what we’ve done here is we’ve opened a pretty nice garage space so it just creates a beautiful exterior and a really good lifestyle feel for it for those people that are coming in here to a low country property its just feedback again we’re getting feedback from the actual people that are looking to buy these areas and you’re adjusting and we’re adjusting to that market and that’s the beauty of having those semi-custom homes based on the demand of the customer itself.
Dolmar: All right so there you have it Rick. I’m super blessed, humbled and honored to be able to be a part of opportunities like this with you and where anyone by the way can get started with as little as five thousand dollars can you please share with everyone how they too can be a part of this as well.
Rick: Yeah absolutely so one of the things you know over the last years that we’ve been doing this almost 20 years at this point we’ve mainly worked with accredited investors because that’s basically what the law required but with some of the new changes our company got approved to actually file what is called a reggae offering which is actually a fund it’s called this capital fund and with that fund its an open- ended fund that brings investors from all walks of life so literally as you just mentioned, investors can join our cause and be a part of projects just like this for as little as five thousand dollars so we want to encourage you if you’re interested in being in real estate staying diversified and mitigating your risk without having to do all the work.
This vehicle might be just for you.
Dolmar: Let’s go. Alright so to get started the details are somewhere on this page. Check it out or reach out to us directly and we’ll give you more details and information. Looking forward to working with you.