58 min listen
41: Even As Rates Rise, Builders Aren’t Worried About an “Overbuilding” Problem w/Chris Funk
FromOn The Market
41: Even As Rates Rise, Builders Aren’t Worried About an “Overbuilding” Problem w/Chris Funk
FromOn The Market
ratings:
Length:
59 minutes
Released:
Oct 7, 2022
Format:
Podcast episode
Description
The 2020-caused supply chain shortage went from bad to worse over the span of just a month. By the summer of 2020, builders were facing massive delays, a lack of labor, and material prices that made new homes look almost comically unaffordable. Lumber skyrocketed in price, basic building materials sat on ships for weeks, even months at times, and subcontractors left to get paid more by working for themselves. Is this nightmare finally over for the new construction industry?
Joining us today is build-to-rent expert Chris Funk from Southern Impression Homes. Chris got into real estate investing around the same time as the last crash. He was buying foreclosed homes off the courthouse steps, then later built a property management company and a new development company he still owns and operates today. He realized that buying new build homes as rental properties significantly reduced his maintenance and management costs, without adding too much of a price premium.
Now, he’s working with investors across the nation to offer new-build quality at regular residential pricing to those who want a headache-free investing experience. But Chris doesn’t just supply the homes, he also works with investors to get property management set up from day one, so it’s as turnkey as can be. Chris gives his read on today’s market, what investors should look for before they buy, and whether or not our supply chain nightmare is over!
In This Episode We Cover
Why build-to-rent investment properties are a great option for the average investor
The most important metrics to look at when analyzing a real estate market
Supply chain shortages, labor setbacks, and where construction companies stand in 2022
Price drops and how far new home listing prices could fall as demand dries up
The risk of investing in a renter-only subdivision and why homeowner/renter diversity matters
A crucial clause to look for when signing to buy a new build home
And So Much More!
Links from the Show
BiggerPockets Forums
BiggerPockets Agent
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Find an Investor Friendly Agent in Your Area
Dave’s BiggerPockets Profile
Dave’s Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
4 Vital Points to Consider BEFORE Getting Into New Construction
The FRED Producer Price Index
Connect with Chris:
Chris' Website
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-41
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!
Joining us today is build-to-rent expert Chris Funk from Southern Impression Homes. Chris got into real estate investing around the same time as the last crash. He was buying foreclosed homes off the courthouse steps, then later built a property management company and a new development company he still owns and operates today. He realized that buying new build homes as rental properties significantly reduced his maintenance and management costs, without adding too much of a price premium.
Now, he’s working with investors across the nation to offer new-build quality at regular residential pricing to those who want a headache-free investing experience. But Chris doesn’t just supply the homes, he also works with investors to get property management set up from day one, so it’s as turnkey as can be. Chris gives his read on today’s market, what investors should look for before they buy, and whether or not our supply chain nightmare is over!
In This Episode We Cover
Why build-to-rent investment properties are a great option for the average investor
The most important metrics to look at when analyzing a real estate market
Supply chain shortages, labor setbacks, and where construction companies stand in 2022
Price drops and how far new home listing prices could fall as demand dries up
The risk of investing in a renter-only subdivision and why homeowner/renter diversity matters
A crucial clause to look for when signing to buy a new build home
And So Much More!
Links from the Show
BiggerPockets Forums
BiggerPockets Agent
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Find an Investor Friendly Agent in Your Area
Dave’s BiggerPockets Profile
Dave’s Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
4 Vital Points to Consider BEFORE Getting Into New Construction
The FRED Producer Price Index
Connect with Chris:
Chris' Website
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-41
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!
Released:
Oct 7, 2022
Format:
Podcast episode
Titles in the series (100)
21: A Supply-Starved Market and How Investors Are Already Taking Advantage: Is some alleviation from inflated home prices headed our way? Over the past two years, sellers have taken the housing market for a ride, getting dozens of offers on every listed house. No matter the condition, area, or age of the property, buyers were filling open houses every weekend just to make an over-asking offer on what should be a reasonably priced house. Now, the tables are starting to turn, and as a result, sellers are getting desperate. Interest rates are rising and buyers are backing out of the market by the dozen. Instead of twenty offers in a weekend, sellers are looking at two, and none of them are over asking price. This is good news for home buyers and great news for investors, as deals are becoming easier to come by while the housing market hysteria takes a breather. We brought the entire On The Market panel in this week to see where they’re finding deals, how their own markets are fairing, and by On The Market