Navigating the Shift: Is It Time to Adjust Our Real Estate Strategy

[Bubba McCants]

Hi everyone,

With talk of market fluctuations and interest rate changes, I think it's prime time for us to dive into strategic adaptations. I'd love to hear your insights on the following:

1. Are any of you pivoting your investment strategies in response to the current market trends?

2. For the "buy and hold" investors: How are rising interest rates affecting your approach to new properties?

3. Flippers: Are you finding it more challenging to source deals with solid margins, and if so, how are you adjusting?

4. Lastly, any contractors or investors that higher contractors to build spec houses out there that are having problems purchasing the land, and with cost of construction having problems finding projects that make sense?

I'm looking to build a couple spec houses and having a hard time making it work.  Would love to hear from others and see what you are doing.

Looking forward to a great discussion and connecting with you all!

[Joe Villeneuve]

I've been designing cost effective, energy efficient homes for over 40 years, and there are a few things that are musts to make both work.  These are, or should be standards in design and build, that translate to any and all economic markets:

1 - Treat the design as the first few times (changes) you will build, and pay for, the house.
2 - Treat the design as a system, made up of a series of interacting systems.
3 - Understand that design is a series of decisions, with each decision impacting more than just the immediate decision you are making.  For instance.  Choosing the most expensive insulation because it's the most energy efficient, should allow you to reduce and/or eliminate costs in other areas.
4 - Energy efficiency isn't made up of added costs.
5 - Energy efficiency is the product of reducing energy needs, not supplying added energy.
6 - Cost effectiveness is a product of maximum use of materials, as in little or no waste.

All of the above should be obvious, in parts.  The secret, and the biggest obstacle to success, is understanding that ALL, not just some. of the above list must be met.  The beauty of it is, ALL of it CAN be met, with an understanding of what energy efficiency really is, and how to use treat material sizes/dimensions as a positive,...not a restriction.

Why did I write the above?  The answer to your cost problem, can be found in the application of the above list.  The more efficient the design is in the use of materials, the less the cost per sq ft.  The more energy efficient the shell is, the lower the cost of energy, which is highly marketable.  Keep in mind, that the combination of energy efficiency and cost effective design, should not cost more to build than the lack thereof.