1:17

Welcome everybody to this

1:19

week's edition of the Not Your Average

1:21

Investor Show. We are talking

1:23

about the state of

1:25

construction in 2024.

1:28

We're talking about where prices are. We're talking about where permitting

1:31

is. We're talking about, the ability

1:33

to create impact through a vertically

1:35

integrated company that

1:37

takes construction real seriously. By

1:40

bringing on some really, really great teammates

1:42

and, we're joined by no other than

1:45

what do they call you? Chief construction man. Is

1:47

that what they call you? William? That guy, that

1:49

guy. Uh, he is, uh, he is, uh,

1:51

returning to the show today. He is,

1:54

sneaky, funny. He has a.

1:57

Name that could be everything from like a

1:59

Heisman quarterback name to

2:01

like an 80s bad guy name Like,

2:03

you know, I could I could see like the gym teacher yelling His

2:07

name big Willie style William Bricksteiner

2:09

welcome to the show. Thank you. Appreciate it. Thanks for having me

2:11

back Can't believe you let me back on I

2:13

you know, I'm just glad you made it through the whole

2:16

Nick Saban retirement thing I was really worried

2:18

for you there for a little you know What as far as I'm concerned

2:20

he can he could do whatever he chooses I

2:23

agree. I agree. I agree with the idea of

2:25

giving people free will and

2:28

letting them exercise. good

2:30

to have you back, man. We have our community

2:32

in full effect already checking in here.

2:35

do you remember how we, how we start the show normally? Do you remember

2:37

the little tradition that we have? Uh,

2:38

yeah, a lot of excitement, a lot of action,

2:41

a lot of movement. Yeah.

2:42

What do you know what it's

2:43

called?

2:44

I

2:44

don't remember.

2:44

It's called the roll call, William. Let's go. We got the

2:46

MVP. We

2:49

got the Maven from the mountains of Colorado,

2:51

Leslie Wilson. We got Christopher Lee

2:53

from Fernandina Beach checking in. We got Mama Bear,

2:55

Cody Adams in the studio with us per the usual.

2:58

We got the ringmaster Drew Barnhill

3:00

in the house. We got Pamela Myers,

3:02

always a good vibe from the Seattle area. We

3:05

got the legend, the man who has a hockey

3:07

arena named after him, the number one referral source

3:09

for JWB, Roger Voicena. Did you know

3:11

that? He's got an arena, arena named after

3:13

him. Very cool. No joke, son. We got Leo Faragunat. We

3:18

got our regulars, Rosalyn and Gary

3:20

Reilly from Marietta, California.

3:23

We regard you, you're We got Reggie Fonse

3:25

from the Inland Empire on the

3:27

East Coast currently. Reggie, welcome. Welcome to the,

3:29

uh, the humid coast. We got big,

3:32

we got big Papa in the house. You know, big Papa

3:34

is he's the co founder of the co founder.

3:36

The co founder of

3:37

branch at J. Cohen. Yeah, we love,

3:39

we love him when he calls in big Papa. Uh, good

3:41

to have you. We've got the shaman of the natural investor show community.

3:44

Nadeem Shaw from the West coast. Who

3:46

else we got in here checking and we got the early bird a

3:48

little late today, Dean for the early bird early

3:50

bird.

3:50

Yeah, but

3:51

you know, no big deal. Good to have you Dean. back

3:53

in the house, Marty Quinn from golden Colorado

3:56

and our growing Colorado community,

3:58

Eric Kilo from Minnesota.

4:00

We got a growing group of people. We're hitting all corners

4:02

here. Yeah. Well, Minnesota just keeps

4:04

popping up. It's like, I keep meeting people from Minnesota.

4:07

I don't know what it means. It's, it's gotta mean something. We got,

4:09

sir, Jeff Bolton, Bolton.

4:11

Good to have you, Jeff. Jonathan Lubin from

4:13

Jack's beach. the first families in the

4:15

house. We've got the patriarch and matriarch Ken

4:17

and Carolyn Malin. We salute you.

4:20

All right, man, let's kick this off. Let's do it.

4:22

first of all, First time that you were on the Not Your

4:24

Average Investor Show. Did it change your life in any way?

4:26

I mean, I thought I was going to get a lot more recognition.

4:29

Like people around the office would recognize who I am.

4:31

But, you know, I guess you spend that much time out in the

4:33

field. It's life changing humility.

4:36

Fair enough. I'm kind of wondering though, like at

4:38

this point, this is my second, like, My second go

4:40

around. What do I gotta do to get like some, not your

4:42

average investor swag.

4:44

Mm,

4:44

right. Mm. T-shirt. I see you got

4:46

a sticker on the computer. Like we, we can get

4:48

you a stick. What's the guy, what's the guy gotta do to get some swag

4:50

up in here?

4:51

Man? I, I can, I can get you a look at this.

4:53

Look at this. Oh. Live, live

4:55

inch screen right now. Stickers. Are

4:57

we just gonna, we're just making it rain. We got stickers,

5:00

we got stickers. We got it. Rain baby.

5:01

Yeah. Yeah. Now you can use that. You're definitely not

5:03

average William. I can tell you that right now. Sophia

5:06

Tat is asking. Do you send recording

5:08

out as I have to drop a 1245 for work? Oh, absolutely.

5:10

Sophia. Right now we are live on YouTube.

5:13

So you can always see it live on YouTube.

5:15

next week we publish it, post edit it on YouTube. It

5:18

also goes live on our podcast next week. So

5:20

there is plenty of ways to watch this stuff.

5:23

If you follow the JWB

5:25

YouTube channel and, or look up the natural average

5:27

of a show on. Whatever podcast

5:29

you like. So happy to do that. Sophia, welcome

5:31

to the show. Venus D Y K

5:34

Dyke. I would say that is good to have you

5:36

Venus. Anybody else checking in? All right, let's

5:38

get this off, man. Seat of construction 2024.

5:41

William, the 1st thing that I would like to just

5:43

talk about is for those of us that didn't join us on the

5:45

1st time that you're here, highly,

5:47

highly reviewed 1st time that you're here. Critically

5:49

acclaimed. Can you just give us a kind

5:52

of like an overview of the JWB

5:54

construction department and what what

5:56

it does and kind of like your role in it?

5:58

Yeah, absolutely. So I would say JWB

6:01

construction, we kind of have two buckets, if

6:03

you will, right? You have Jim Marshall,

6:05

our director of construction who oversees

6:07

everything construction wise. But there's

6:09

two buckets. You have a new construction

6:11

renovations, right? So new

6:13

construction. Basically,

6:15

you know, we buy a piece of land, we determine what

6:18

we're going to build on it, and we hand it over

6:20

to one of our two builder partners. From

6:22

there, we're managing the relationship with the builder

6:24

managing the project itself

6:27

not necessarily with the subs, but more

6:29

so managing the relationship between our

6:31

team and the superintendents of our builder

6:33

partners, making sure that the projects stay on track.

6:36

If any type of, you know, unforeseen circumstances

6:38

additional approvals needed, what have you

6:41

really making sure that from start to finish, we make it

6:43

as smooth as possible. And then

6:45

on the other side of that, we are at renovations department

6:48

and really kind of 3 subcategories of

6:50

that you have property turns, which

6:52

is going to be the most volume that we're going to do.

6:54

Renovation wise, we'll do about 1200

6:56

property turns this year. More

6:58

or less. Somebody's been living in the house for a period

7:00

of time. Could be, you know,

7:02

a month, could be five years, who knows?

7:05

I mean, I've seen, we've done property turns where

7:07

some people have been living there for 10 years, right?

7:09

That's going to be the most volume that we're going to do on

7:11

an annual basis.

7:12

Volume as in amount of projects

7:14

started and ended, right? Correct. Also spending

7:17

money volume. Or,

7:19

yeah, I mean, yeah, I would say definitely

7:21

volume project wise, our average budgets

7:23

around about 4100 dollars. And that's

7:25

everything from. Hey, man, I walk up and I put

7:28

a sign in the yard and a lock box and

7:30

we're on our way. We don't have to do anything and

7:32

that could be on the other end of the spectrum doing a full

7:34

renovation just depending on how long

7:36

somebody has been been living in there. So,

7:38

but definitely on a project wise, Per project

7:41

basis, the most we're going to do, we do

7:43

renovations, both turnkey renovations

7:45

for JWB as well as

7:47

renovations for our clients that are,

7:49

you know, looking for our expertise and

7:51

our purchasing power to, to get a quality product.

7:54

There got it just to, just to

7:55

clarify that that is. When you're saying

7:58

that you're doing it for turnkey, it means

8:00

renovating a home before selling it to

8:02

an investor so that it's already an operating

8:04

asset. That's the turnkey renovation. Yep.

8:06

And then the other side of the renovation is if

8:09

you have purchased a turnkey property through

8:11

JWB. 10 years, 15

8:13

years, 20 years later it needs a

8:15

new roof or needs something like that. You're able to handle

8:17

that as well as folks that bring

8:19

over property. Yeah,

8:20

absolutely. More along the lines, renovation

8:23

wise of more of a non JWB

8:25

product. So somebody who's maybe owned

8:27

the property for a period of time, they've been managing

8:29

it themselves. Maybe they had another property

8:31

manager. They've brought it to us for management.

8:34

And it needs a renovation. But to your

8:36

point, you know, house within. Usually

8:38

a property turn or a maintenance work order. Yeah, we

8:40

handle all the big stuff. If it needs a new roof, some

8:42

of those capital expenditures. And

8:44

then that last bucket, if you will, of

8:47

renovations, we have our construction services

8:49

department really think about that

8:51

kind of as a an extension

8:53

of our property management maintenance team

8:56

to where, you know, resident calls

8:58

in and we've got some type of issue

9:00

in the home that's just outside of

9:02

the realm of what somebody. You know,

9:04

sitting in the office behind a desk answering

9:06

the phone can be expected

9:09

to manage, right? Whether it

9:11

be that there's multiple trades and multiple

9:13

vendors involved whether it be,

9:15

Hey, you know, roofers are saying

9:17

that it's a leak in the duct work and the AC

9:20

guys are saying it's a roof leak. What is it? Right?

9:22

So something that needs active project management

9:24

needs the experience of the construction team to

9:27

come in and kind of diagnose and pinpoint what the

9:29

actual issue is there. Right. So

9:31

really, like I said, the overall structure,

9:33

you've got those two main buckets, so new construction,

9:35

renovations,

9:36

construction, renovations, inside

9:38

of renovation is the renovate

9:41

before you give it to an investor side. there's

9:43

an ongoing issue and it's going to require

9:46

multiple trades. So now you

9:48

need an actual construction manager, not just a property

9:50

manager. Yep. To deal with it. And then

9:52

there's also the most often one

9:54

when you're managing 6, 000 properties. There's

9:56

going to be a certain amount of turns every single year.

9:59

And that varies in scope

10:01

and dollar amount, but it is

10:03

the thing that you do most in quantity as

10:05

far as name of project. Right. And

10:07

anybody that wants to kind of get like a deeper

10:09

understanding on those different

10:12

things and how Williams department

10:14

deals with it. Go back to his original episode,

10:17

Cody. I don't know if maybe you can look up his original episode.

10:19

I should have had it handy. So that's my bad, but Cody

10:21

will share it in the chat. If anybody wants to go back and

10:23

see that. Cause I, now that we're like double

10:26

tapping back into that, right. I remember you going into

10:28

detail of, it was, it was right. When you said

10:30

when you need more than one trade involved, what

10:33

you do and just how valuable that is. Right. Because

10:35

there is a, I know that the team

10:37

here takes like great pride

10:39

in how much. How much they

10:41

save on maintenance based on phone

10:43

calls that come in and being able to talk a resident

10:46

through like, Oh, all you got to do is this instead

10:48

of having a call in work orders. But the other

10:50

side of that equation is. Hey,

10:52

if it isn't just like a send this one guy

10:54

out to fix it. And now there's been a couple,

10:57

you know, at bats here and it hasn't fixed

10:59

it. You need a adult in the room

11:01

and the construction trades that well, and I'll say

11:03

a

11:03

huge, huge shout out to our maintenance department

11:06

in the TMN presentation this

11:08

morning our maintenance department gave a presentation

11:10

and it was a staggering number. It was, it

11:12

was either 750

11:16

or 775, 000. That they have saved

11:18

by troubleshooting a maintenance

11:21

item over that initial phone call

11:23

with the resident. We don't have to open the work

11:25

order. We don't have to send somebody out. So

11:29

You know that that's a that's a that's an astonishing

11:31

number.

11:32

It is a number I know that we've we've announced

11:34

it every once in a while like when those numbers roll

11:36

in greg Like brings it to the show and yeah the idea

11:38

that you can save people Tens,

11:41

potentially hundreds of thousands of dollars

11:43

based on, Hey, this is something

11:45

that we can resolve over the phone, crack

11:48

that, bring that, you know, that is, that is value to

11:50

everybody involved. But speaking of numbers,

11:53

I think the, I think the number that

11:55

we've thrown around here in the past, and maybe you can

11:57

correct me, but it's essentially that JWB

12:00

spends about 7 million a month

12:02

in construction costs, something like that. Is that

12:04

something you're familiar with?

12:05

Not entirely, but I wouldn't be shocked.

12:07

Okay. I wouldn't be shocked at all. Yeah. So

12:09

that we're, we're anticipating on building close

12:11

to 400 new houses this year outside

12:14

of anything that we're doing, you know, renovations

12:16

wise, property turn wise, just solely

12:18

new construction, 400 new houses. Yeah.

12:21

And we're going to talk about the whole. Absolutely. Absolutely. Absolutely. construction

12:24

side of it. And, you know, not so much.

12:26

And we're, we're going to get into the

12:28

details of like infill construction and what that represents.

12:31

What I'm trying to do right now is just give everybody

12:33

a breath of, we're reporting on some numbers

12:35

because JWB has large purchasing

12:37

power. It works with a

12:40

big amount of the construction market here

12:42

in Jacksonville, right. By number and by

12:44

amount of money spent and like,

12:47

you know, economic driving. You

12:49

know, cutting out checks and whatnot. So

12:51

you have really good insights

12:53

into essentially the climate here and

12:56

what's happening with cost and what's happening with permitting

12:58

and stuff like that. So the first thing

13:00

that I would love to talk about is

13:03

you just mentioned that

13:06

that average kind of like turn dollar

13:08

amount per project is somewhere around 4,

13:11

000. Yeah, about 4, 100. Yeah, 4, 100.

13:13

And I feel like that's the same number I was

13:15

talking about four years ago when we started

13:17

this show. Yeah. Have

13:19

but that in juxtaposition to

13:21

the idea that I keep hearing that

13:23

construction costs have gone up and inflation is

13:25

going crazy I mean, am I hearing

13:28

that correctly? Has it been that steady for that

13:30

long?

13:30

Yeah Yeah, and I think really what that comes

13:32

down to from a turn's perspective has to do

13:34

with the amount of volume that we're doing Right the

13:37

amount of volume that we're doing the relationships

13:39

that we've built with our vendor base, you know, we talked

13:41

last time I was on the show of And

13:44

we don't really treat it as

13:46

a vendor. If you will, we treat

13:48

it as a partnership to where I'm

13:50

looking out for you. You're looking out for me. We've

13:53

got each other's best interest in mind. So,

13:55

it comes down to the relationships

13:57

there, the purchasing power. We

14:01

explore a lot of different avenues to

14:03

make sure that we have product availability

14:06

Which is a big part part of that. We're not having to constantly

14:08

search for new products if you will

14:10

When I say new products, we're always

14:12

looking for the the next big

14:15

thing if you will that could make a difference for

14:17

us but when I say new products i'm not

14:19

necessarily always having to constantly switch

14:21

a flooring product or constantly having to switch

14:24

paint product yep, so that

14:26

that definitely helps with the predictability and pricing

14:28

of

14:28

it Okay, so before we jump too

14:30

deep into that, because I think I can nerd out on all that that

14:32

you said, what has what

14:34

have construction prices in general done over the

14:36

last the past couple of years? Do you have a sense

14:38

of even though you're getting these, like, better

14:41

terms, you know, better purchasing, better availability?

14:44

Do you get a sense of what prices

14:46

have done either year over year

14:48

or in a past like certain amount of time?

14:51

Yeah, I mean, as far as new construction goes,

14:53

and we're still looking at a lot of like, surcharges

14:55

on lumber packages and things of that

14:57

number, things of that nature, I should say

15:00

that, you know, who knows when, when that's

15:02

going to change. But yeah, I mean, across

15:04

the board, you, you've certainly seen increases,

15:07

just some materials, doors, doors, Windows

15:10

especially windows has been a big thing

15:12

for us. It's harder to find windows It's

15:14

harder to find a good price point on windows

15:16

but yeah materials across the board just in

15:18

general Year every year man. It's

15:20

just the the nature

15:23

of inflation What

15:24

about labor prices has has there been

15:26

anything to this idea of there's

15:28

a labor shortage, right? Like you keep hearing that there's labor

15:30

shortages. You've heard a lot of smoke about

15:33

kind of like these ordinance of um

15:35

You You know, past around

15:37

like immigration and stuff like that. Do you

15:39

guys get a sense that there's less labor out

15:42

there that you're fighting for?

15:42

It really hasn't been too much of an issue for

15:45

us, and I think it all comes back to the volume that

15:47

we're doing, right? One of the, one of the biggest benefits,

15:49

you know, with working with JWB is

15:51

that We're always going to have that next property

15:54

turn, right? We're always going to have that next renovation.

15:56

So, you know, whereas we see prices

15:58

go up when it comes to, you know, a pass

16:01

through material costs, for the most

16:03

part, the labor stayed the same because our vendors

16:05

know that they can count on us to provide

16:07

them with constant steady work. Yep.

16:09

And you're saying the advantage of working with

16:12

JWB from the subcontractor

16:14

contractor level and that

16:16

is you provide steady work,

16:18

you treat them as partners, you're not

16:21

constantly beating them up like a lot of construction managers

16:23

do that then translates

16:25

to this idea of working with JWB as an investor

16:28

in the sense that I get passed through this

16:31

preferential treatment when I need something. There

16:33

is, I have availability of materials and labor, you

16:35

get this preferential pricing

16:38

because you're able to buy in bulk and you're able to

16:40

secure those contracts and you can negotiate that.

16:43

So at the end of the day for, for

16:45

an investor like myself, it leads to

16:47

shorter timelines of disruption

16:50

for our residents, which means longer residence day.

16:52

And lower maintenance

16:55

costs and renovation costs when

16:57

I, as an investor, decide to upgrade the property. Yeah,

16:59

absolutely. I mean, we're trying to always reduce maintenance as much

17:01

as we can by using durable products

17:04

you know, coming back to availability of products.

17:06

You know, 1 thing that we always try to focus on when it

17:08

comes to a property turn is, you

17:10

know, not only making sure that we're spending money.

17:13

In the right areas, it's just as important

17:15

as to where we spend money as to where

17:17

we don't spend money but also

17:19

being really cognizant of the timelines there,

17:21

you know, even though it's not a A dollar

17:24

figure that we can necessarily put an actual

17:26

dollar figure on You know, the longer

17:28

that property sits vacant and it's not cash

17:30

flowing from that investor. Yeah, that's that's

17:32

real dollars Yeah, you know, so we've

17:34

taken a lot of steps over the last couple of years

17:36

to shorten that timeline Um Um,

17:38

looking at our, you know, last four quarters,

17:40

12 months worth of performance, I mean, we're

17:42

at about nine and a half days, you

17:46

know, to get to get possession of a property,

17:48

get it turned around, get it back on the market for

17:50

you so we can get a renter in there. So nine and a half

17:52

days from resident leaves,

17:56

whatever amount of scope needs to get done. is

17:58

done. And now it's ready for showings. It's

18:00

ready. It's moving ready, essentially, which

18:03

at the end of the day, that completely shortens

18:06

up the lifespan of a vacancy,

18:08

right? Absolutely. That's huge, man. That's a

18:10

nine and a half days. Given

18:12

that the average residence stays

18:15

like four and a half years, the idea that

18:17

in nine and a half days, you can erase

18:20

four and a half years of wear and tear seems

18:23

pretty, uh, seems pretty incredible, man. That's cool.

18:25

We have a good question here from Mike Foster. We

18:28

are talking about this idea of longer residence

18:30

days and You know what that

18:32

takes. And he's asking, do you find that the cost

18:34

of turnover renovations increased

18:37

roughly proportionately to the amount of

18:39

time residents have lived in a home?

18:41

Not necessarily necessarily, not necessarily. You find

18:43

a lot of times that somebody, if they've been living

18:46

in the house for six, seven, eight years, they

18:48

want to live there because it's a clean, safe,

18:50

livable home and they've taken really good care of it.

18:52

All right, so I wouldn't say those are necessarily

18:54

correlated. Cool. Sounds good, man.

18:56

So just to kind of recap where we

18:59

started us, like materials, prices and costs

19:02

a couple of years ago, giant lumber

19:04

shortage, right? You're saying that lumber

19:06

is still. And a bit of a premium

19:08

that's still kind of happening. You also

19:10

reference other exterior,

19:13

kind of like openings. It's kind of like what you're talking about,

19:15

right? Like it's like windows and doors.

19:17

Windows has been a big thing for us. I mean,

19:19

you know, when, when we were kind of at the height

19:21

of that shortage with COVID, I mean, it was taking

19:23

us anywhere between 10 to 12 weeks to get windows

19:25

in.

19:26

Is that nationwide or is that just like Florida because

19:28

of like hurricane code and stuff?

19:31

To be honest with you, I'm not really sure. Yeah, I mean,

19:33

our timeline is shortened considerably since

19:35

then. Yeah, but it's, you know, you're

19:37

still waiting a little

19:38

while.

19:38

Cool. So the, so the, the extended

19:40

timelines have come down, but

19:43

they're still slightly elevated than like,

19:45

yeah. Whatever the dream days were. Right.

19:48

Exactly. Build, build, build. Yeah. Cool. Interesting.

19:50

Yeah. Sir, Jeff Bolton Bolton

19:53

says, for those with properties outside

19:55

JWB, can JWB share the products

19:57

they are using so we can benefit from the big data

19:59

on how those materials hold up over

20:01

time? When you think about this, like

20:03

durability of materials, what comes to mind for you?

20:06

Big one that comes to mind is paint. Yeah. You know,

20:09

so we use Sherwin Williams paint. We've

20:11

used a couple of different paint products over the years,

20:13

but we use a Sherwin Williams satin finish

20:15

paint. You know, the idea there is that

20:17

satin finish, it makes it easy to

20:19

clean. Right? So if I go in there

20:21

and I do a property turn, that doesn't

20:24

necessarily mean that I have to go in and,

20:26

Paint the entire interior of the home, right?

20:28

There are opportunities for us to go

20:31

in and touch up walls Or maybe

20:33

you know clean the walls because it has

20:35

that cleanability factor with the satin finish.

20:37

Okay so it's There's a lot

20:39

of variables in it. It's not necessarily the

20:41

individual product. Yeah, you know,

20:44

it's not just sherwin williams paint It's that

20:46

we're using a satin finish paint

20:48

satin finish I'm sure that your

20:50

drywall guy is real good at like fixing

20:52

blemishes or you can just kind of paint over it And

20:54

it doesn't exactly that makes a big deal, right?

20:57

Absolutely. What about I know that we've talked a lot

20:59

about picking durable materials

21:01

in the sense of like We want services

21:03

that are easy to clean, simple

21:06

to replace, and easy to maintain.

21:08

Anything come to mind as far as like materials

21:10

that you know that are that are built into

21:12

that like is it?

21:13

Yeah

21:14

Yeah,

21:14

We're using a carpet product right now, which

21:16

is pretty cool the way the carpet's manufactured

21:19

you can actually dump a gallon of bleach on it and

21:21

it's not going to change color

21:22

Okay,

21:23

right. So there's a durability factor

21:25

there if I can get through a couple of property

21:27

turns You know being able to go in

21:29

steam clean the carpets kind of revive

21:31

them if you will I'm not

21:34

going to be paying constantly to replace

21:36

carpet You know, whether it's bedrooms, living

21:38

areas, whatever it may be, if I can get

21:40

two or three cycles out of it because of the durability

21:42

factor there, that's a win. Interesting. Do you know what the

21:44

name of that product is? It's an engineered

21:46

florist product. I can't remember off the top of my

21:49

head what the actual product itself is called.

21:51

Cool. Something to look for there, Jeff.

21:53

Michael Santoris, William, can you explain how JWB

21:57

came up with the reasoning on no dishwashers?

21:59

I'm not sure if that's part of your

22:01

That's a good question. I didn't know about

22:03

this. And honestly, it comes down to maintenance.

22:06

Yeah, right. it's 1 thing that we

22:08

determined that if we can eliminate

22:10

that it's going to eliminate potential

22:13

maintenance down the road. If somebody shoved

22:15

something down a garbage

22:17

disposal or get something in a dishwasher

22:20

Yeah. If your dishwasher breaks, you've got to replace

22:22

the appliance. You've got plumbing involved.

22:24

If you've got a leak, maybe you've got

22:26

drywall involved. So, think

22:29

of it kind of as, it's not

22:31

just a dishwasher issue. If

22:33

something comes up, it can be a compounded

22:35

issue with several other things that also

22:37

have to be repaired. when did that take

22:39

effect? Is that something

22:40

that's been there for a while? As long

22:41

as I can remember.

22:42

Okay. Interesting. I had no idea. Okay, cool.

22:45

All right. So we talked about costs. We talk about

22:47

materials. Another thing that

22:49

got really heated was timelines

22:52

and permitting and stuff like that. How is that

22:54

doing these days in Jackson? Yeah,

22:56

I mean, it depends on what type of permit you're trying

22:58

to get. Yeah, right. If I'm going in

23:00

and submitting a building permit that's got framing

23:02

and engineering, you know, that could take anywhere between

23:05

6 to 8 weeks. And that's, you know,

23:07

you got to get in touch with an engineer. You got to get those drawings

23:09

back. You got to get them to the city, get them approved.

23:12

You know, I think the days of just being able to walk

23:14

in and slap something on the desk and

23:16

get a stamp on it are probably gone there,

23:19

but I will say, you know, the city's taken a lot of strides.

23:22

You know, they've completely revamped the permitting

23:24

website with the new Jack's epics website.

23:27

Okay. Which is going really well. So, there's

23:29

a lot of effort and there's a lot of focus on

23:31

it, you know, down the city and who knows, maybe

23:34

we'll see some, you know, Increases

23:36

in timeline, so decreases. So

23:38

Citi is investing

23:40

in technology, making it more user friendly.

23:43

That's good to hear. Probably more clear clarity.

23:46

It's a little more user friendly. Yeah.

23:48

Yeah. That's huge. What about you know, we

23:50

talk a lot about supply and demand out here,

23:52

right? So, I mean, inevitably. The

23:54

city can invest in all the, all

23:56

the great technology at the end of the day, if there

23:58

are still people knocking on the doors

24:00

to build houses, it's going to be a

24:02

backlog for them, but it's good for investors.

24:05

How do you get the sense of like construction

24:07

activity permits being pulled

24:10

things like that and that kind of

24:11

backlog I'll tell you I mean, it's like you drive you

24:13

drive through the city, you know, I said in our last

24:16

I think I said in our last podcast that I was

24:18

on it's like our office is the city

24:20

of jacksonville, right? Yes, you're driving

24:22

everywhere and the amount of construction

24:24

that you see with jwb

24:27

I mean Jacksonville's, you know

24:29

jacksonville's the place to be I can't

24:31

stress enough how much activity

24:34

you see around in all of our neighborhoods. It's

25:17

really

25:17

interesting to see it, right? Because I don't, I

25:20

don't drive nearly as much.

25:22

I just see the, I'm always looking

25:24

for headlines and looking for interesting things.

25:26

So we got, I don't know if you saw that we got rated the number two

25:28

job market job market by the wall street

25:30

journal. stuff like that to me is,

25:32

is really, really telling. I think it's different

25:35

in Jacksonville what you see happening because

25:38

it's so spread out. Yeah, so

25:40

there's so much space to fill into.

25:42

So construction is still pretty horizontal.

25:45

Whereas I'm used to kind of like when we were going through

25:47

this type of boom in Miami, it was just like crank, crank,

25:49

crank, crank, crank, crank, crank. Yeah, yeah, yeah. You

25:51

don't see as many cranes, but you

25:53

still just get this sense of. Infrastructure

25:56

improvements are happening all over the place.

25:59

You're driving past any kind of neighborhood. There's something, there's something

26:01

being built when you're driving past that main street

26:03

strip and like Atlantic Boulevard that I take

26:05

to go home. It's always like, all right, they're just

26:07

clear cut this area because a whole new development

26:10

is coming everywhere, right? Yeah. Yeah. Interesting.

26:13

And do you guys, does that present a,

26:15

a different obstacle for you guys? Like, was it,

26:18

have you had to adjust your timelines on what

26:20

you think permitting is going to happen? These

26:23

days versus kind of where you were a few

26:25

years ago.

26:25

No, it just kind of is what it is, right? You

26:27

just got to kind of flex where you have to flex

26:30

How do you do you not need permit for a lot of these

26:32

terms? Like is that like how do you do that in

26:34

nine days?

26:35

Yeah I mean most of the stuff we're doing on turns

26:37

is more cosmetic More

26:40

so than yeah I gotta go in and reframe

26:42

half the house or something along those lines if i'm

26:44

just going in You know, I'm pressure washing

26:46

the house and cleaning. I'm painting. Maybe

26:48

I'm putting some new flooring in all

26:51

things that are not going to need a permit.

26:52

Yeah, that makes sense. That's probably an educated

26:54

question by me. But, um, so, shaman

26:57

Nadeem Shah says question at the time of a

26:59

turn, why not do vinyl flooring

27:01

instead of that carpet that you just mentioned? Isn't isn't.

27:04

Doesn't vinyl flooring last longer than carpet?

27:06

The answer is yes. The way that we approach

27:08

is if we're doing a renovation, like a turnkey

27:11

renovation. So a home that JWB has

27:13

purchased renovated to our standard

27:15

that we're going to sell to 1 of our investors. We're

27:17

going to put that hard surface flooring in. The

27:19

idea is yes, it's going to be more

27:22

durable. There's going to be more longevity there,

27:24

but. We're footing the bill for that,

27:26

right? We're, we're, we're putting that in,

27:29

whereas on a property turn, we're trying to be cognizant

27:31

of your money. We,

27:33

we understand that every dollar that we spend is affecting

27:36

the return on the investment. So when I

27:38

look at the price of carpet installed

27:40

versus the price of the vinyl plank flooring,

27:43

well, the carpet is about a third of the price,

27:45

right? So realistically, if I install

27:47

carpet, I could go through three

27:50

property turns. Replacing

27:52

the carpet every single time before

27:55

I get to that break, even costs on the vinyl plank.

27:57

So, if I go in there at a 3 year

28:00

lease term, and then do my property

28:02

turn, that's essentially 9 or 10 years

28:05

that it's going to take for you to even break. Even.

28:08

You get into that that price point for the final

28:10

plank.

28:11

So, that sounds to me that it's. You've

28:14

gotten real, you have your standard

28:16

that you built for where, you know,

28:18

because JWB is vertically integrated,

28:20

you know, beyond just a regular turnkey company.

28:24

You're doing all that stuff, giving somebody an

28:26

operating asset, you foot that bill,

28:28

you know, what you put into that at

28:30

that point, when you're doing it, you do vinyl flooring.

28:33

When someone has an existing property

28:36

that is already performing and they either

28:38

come to JWB for property management

28:40

or, you know, whatever other scenario

28:42

can be, and it's the

28:44

investors. Time to make a decision

28:47

you're able to present multiple options exactly

28:49

and you found a carpet that is a really really

28:51

good option Exactly those of us

28:52

we're gonna we're gonna always leave that decision in your hands,

28:55

right? We kind of look at it as hey, like what would we

28:57

do if it was us was our standard? But

28:59

we know that you know, that's not what makes the most

29:01

sense for everybody So we give you

29:03

both of those options

29:05

cool. That's awesome. I mean as as you were talking

29:07

about this, The construction services,

29:09

I don't know if you know this, but I've recently so I have the 3

29:11

properties that I purchased through and

29:14

then in January, I bought a duplex that I moved

29:16

it to 1 and I'm having property

29:19

manage the other 1. I know

29:21

that that duplex. Within the next

29:23

five years is going to need a new roof, right?

29:25

And it's going to need like AC and stuff like

29:27

that. That's the type of stuff that y'all

29:29

would be able to coordinate for me. Absolutely.

29:32

As a property manager. Absolutely. What does that,

29:34

what does that look like for me as am

29:36

I hiring you kind of like with a standard GC

29:38

fee or what's that look like?

29:40

Yeah. So for our turnkey properties, some

29:42

properties we've renovated, sold to our investors.

29:45

There's no type of management fee

29:47

involved for anything on occupied

29:50

maintenance We do

29:52

have a management fee on the property term. It's 10

29:54

percent which is capped. Up

29:56

to a certain amount, for properties

29:58

that are not ours, you know, you've brought that

30:00

to us for property management services There

30:02

is a management fee that's attached to that if

30:05

we're doing a construction project or a

30:07

construction services ticket where the construction

30:09

team is getting involved

30:10

Got it. So management fee attached to that,

30:12

but I still get to tap into the

30:14

purchasing power Exactly in the in the

30:16

tablet you're tapping into our network. I'm tapping

30:18

into the network, right? Super super valuable Yeah I

30:21

thought of that with the carpet thing because I know that we have

30:23

more You know, me as a green building

30:25

guy, like, I'm not a big fan of carpet,

30:27

but we have a ton of carpet in those units, but

30:29

I'm also cost sensitive. Right? So, we're

30:32

strategic about what we're putting the carpet. Yeah. Right.

30:34

Yeah. We may put carpet in bedrooms,

30:36

but maybe we're not going to put it in the living room because it's

30:38

a high traffic area. It's going to get a lot of foot

30:40

traffic. We're not

30:42

going to put it in a kitchen. Right? Yeah.

30:45

Yeah. Makes a lot of sense. Venus Dyke

30:47

has a question. Venus, let me know

30:49

if I'm pronouncing that correctly. what's the

30:51

average rehab cost per square foot

30:53

in Jacksonville right now? Do you have that number? I don't.

30:56

You don't have that on top of your head. All right. I don't. Okay.

30:58

Mike Foster, I was recently notified

31:00

by my portfolio manager that one of

31:02

my homes has flooring that has

31:05

warped and come loose due to Florida

31:07

humidity, loosening the glue. This

31:09

is a home built in 2022. Wow. Is

31:11

there a better flowing product available that can better

31:13

withstand Florida humidity?

31:15

Yes. And we've already made that change.

31:17

We're in the process of making that change, moving

31:19

from a glue down plank to a floating click

31:21

lock product. Okay.

31:23

From glue down plank. So, meaning

31:25

there's an adhesive and you put it on to floating

31:27

click. I assume is like a puzzle

31:28

piece. It's like a tongue and groove if you will.

31:31

Okay. but yeah, I mean, he makes a really good point. I mean,

31:33

humidity is a real thing in Florida. Yeah. you

31:35

know, especially in a lot of older homes, you

31:37

don't see it as much in a newer

31:39

build, but it's obviously not out of the

31:41

The realm of possibility, but to answer

31:43

the question, yes, it's something that we have

31:45

identified and we're making that shift

31:48

to that different product.

31:49

Good answer.

31:49

Good answer.

31:50

Mike. I hope you're happy with that. okay. So we've talked

31:52

about. Timelines. We've talked

31:54

about supply. We've talked about

31:56

costs. let's talk staffing levels.

31:59

Sure. as the JWB construction department

32:01

from like a headcount have they grown year

32:03

over year?

32:03

Yeah, absolutely. We've recently brought

32:06

on two new superintendents on our property

32:08

turn team. Again, just purely based

32:10

on the amount of volume that we're doing. We've

32:12

also brought in a new superintendent

32:14

for our construction services division.

32:17

Again, just purely based on volume.

32:19

Not to say that that means there's a lot of fires

32:22

that have to be put out, but, you know, with 6,

32:24

000. Yeah, close to 6, 000 properties,

32:26

there's always going to be something that's happening. You know,

32:29

1 of the really cool things that we did is we

32:31

really. Kind of took each

32:33

level, like, we took a property turn and

32:36

we kind of took it apart and build it, built

32:38

it back up and said, okay. How

32:41

long does it take to

32:43

complete each activity? And

32:45

be successful in running a property

32:48

turn, right? And we more or less

32:50

built a staffing calculator out

32:52

of that. So now, year

32:54

over year, once we get our projections

32:56

as to how many property turns we're going to do for the

32:58

year, all we have to do is go in,

33:00

change that number, and it's going to tell

33:02

me exactly how many superintendents we need

33:05

to continue to perform at that operational

33:08

excellence level. Interesting,

33:09

interesting. As you're saying that, I'm thinking, okay,

33:12

so The speed to turn

33:15

isn't just a buying power thing.

33:17

It's not just like a great, you know, relationship

33:19

with your subcontractors. It's also

33:21

kind of parallel to everything else I see here.

33:24

It's really good planning, forecasting,

33:26

making sure we're

33:26

staffed appropriately.

33:27

Yeah. Yeah, absolutely. Wow. That's really, really interesting.

33:29

So you guys broke down every piece

33:32

of a typical turn and then timed

33:34

it

33:34

out. We, we broke it all the way down to

33:36

how long does it take to peel the number off

33:38

and slap it on the side?

33:40

Wow. Wow. Wow.

33:42

Interesting. That's super cool. is that fun for you?

33:46

But it's unnecessary. That's necessary. Yeah.

33:48

Fun is being able to say we're done with this in nine

33:51

days. Exactly. Exactly. That's, that's,

33:53

that's the reward. I appreciate the honesty. Uh,

33:56

speaking of things that JWB

33:58

is really good at as far as planning and stuff like that, they're

34:00

really good at innovating. Right.

34:02

And we were talking about the

34:04

site. This idea that y'all

34:07

have now been around long

34:09

enough. We're starting to really see

34:11

the impacts of all the things that you're doing

34:14

shine through. Do you want to, you were telling me like

34:16

a really interesting story about when you

34:18

kind of first started, you want to, you want to talk a little

34:20

bit about that? I mean, you know, we we've got, you

34:22

know, I don't know if we're going to get into the pictures or

34:24

not, but we can. Is that, is this

34:25

time for

34:25

the pictures? Sure. Why not? All right, go for it. You

34:28

know, we've got kind of one of these core neighborhoods that we

34:30

invest in the Oakwood Villas neighborhood.

34:32

And I remember, but by 6 or 7

34:35

years ago, when I first came onto the team and

34:37

I was working on our acquisitions department

34:40

and my 1st or 2nd week, we

34:42

got up there and said, oh, hey, we closed

34:44

on, you know, it's like 170

34:47

lots this week. And I'm thinking myself. What have

34:49

I gotten myself into? Well, where

34:51

are we going with this? Right? And,

34:53

uh, you go into this neighborhood, and

34:55

a lot of the lots that we had purchased had, you

34:57

know, old, older mobile homes on them

34:59

that had just been run down, abandoned,

35:02

were in total disarray. And they

35:04

kind of looked at me and said, okay, here's your first project.

35:06

Find out how we're going to get rid of all of these mobile

35:09

homes. And, uh, we don't want to pay anything

35:11

to do it. Right. So we had to

35:13

get really creative there. Instead of paying

35:15

four or 5, 000 a pop to get them demoed

35:17

and hauled off. We kind of

35:19

went out there and put ourselves out there and

35:22

we actually found some scrappers

35:24

that were interested in going and they

35:26

would haul them off for free so they could tear them

35:28

down and take them to the scrap yard

35:30

and sell it for whatever it's worth, I guess.

35:32

But you look at

35:34

this neighborhood now and it kind of speaks for

35:36

itself. It really does. Yeah,

35:39

it kind of

35:39

speaks for itself. So going from that empty,

35:42

you know, empty lots

35:44

with old dilapidated

35:46

structures on it to brand new homes

35:49

and good things coming. Is this another one that was kind

35:51

of like that? This dandy? Yeah, these are all in the same

35:53

neighborhood. All in the same neighborhood. Right. So

35:55

yeah, so this is, yeah. Talking about this idea

35:58

of being able to take a

36:01

underutilized asset, which was

36:03

the land in Jacksonville have these like,

36:05

you know, I know, I know, as somebody that's been in

36:07

in neighborhoods that start to get restored

36:10

or activated, or whatever, these

36:12

empty lots are generally places where

36:15

trash piles up, where, you

36:18

know, you can do shady things.

36:21

You know, like, like, I remember when I was living

36:23

in Wynwood, and I before it started really

36:25

getting super vertical in Miami, it

36:28

went from a period of We had

36:30

little homes and it was like a little neighborhood. it was a mixed

36:32

neighborhood of kind of like socioeconomic

36:35

demographics. I was kind of like on the first wave of

36:37

like people moving into it. And that felt

36:39

one way, but then there was a moment where

36:41

it. A bunch of developers just started acquiring

36:43

lots and tearing stuff down before

36:45

they could consolidate everything and start building upwards.

36:48

And it was during that time where

36:50

it got the most dangerous because it was

36:52

like, you're walking past really dark

36:54

areas that don't have anything there and

36:57

people were using it for whatever they want to use it, right?

36:59

So, like, I would assume that in these neighborhoods

37:01

that that JWB has gone in

37:03

and cleared out old structures and, you know, That

37:08

kind of just takes away the opportunity

37:10

for trash to build up for

37:12

people to plan stuff that isn't really above

37:14

board and just makes it much more

37:16

livable area. It's

37:17

really I mean, for me, I'm a Jackson native.

37:20

There's not a lot of us in the office that are Jackson

37:22

natives, but for me, we talked about driving

37:24

around these neighborhoods and it's really a, it's really

37:26

a source of pride. Yeah. You know, to see

37:28

neighborhoods being transformed really one

37:30

house at a time, one lot at a time. Yeah,

37:33

you know, for the city, you know, it's, it's, I call

37:36

it the triple win, right? Yeah. Yeah. For the city.

37:38

It's great for the city. We're going in. We're maybe

37:40

tearing down a house that's been, you

37:42

know, got all kinds of rolling fines and liens

37:44

on it and, and building a new home to get a performing

37:47

asset back on the tax roll for

37:49

our investors. And it's a

37:51

it's a great opportunity for them, you know,

37:53

to tap into the Jackson market for

37:55

the surrounding neighborhoods. Property values are

37:57

going up. So it's it's really

38:00

a win all the way around, but it's definitely a point

38:02

of pride. I could see it being

38:04

this.

38:05

Having come back from Lee's mentioning how it's just at

38:08

this real estate investor event in

38:10

California and it's. The

38:12

more time I spent here, right, I've spent a lot of time

38:14

in these walls, understanding what JWB

38:17

does. And like, as time goes on, I'm starting to get

38:19

to spend some time outside of these walls and understand what

38:21

the difference is, right? Like understanding why, how

38:23

spoiled we are. But I

38:26

would imagine that the turnkey stuff

38:28

that I was seeing over there felt

38:30

like they were

38:32

building subdivisions in certain places, like

38:35

where they were building out whole new neighborhoods.

38:37

And what I've realized is that

38:39

it's truly unique that JWB has

38:42

figured out. How to put

38:45

new homes inside these

38:47

infill lots and

38:49

as I hear you talking about this

38:52

triple win effect, I think

38:54

of the idea that, you

38:56

know, connecting these neighborhoods

38:59

to each other to eliminate those blank spaces

39:01

is a win that a another way

39:03

of developing this thing wouldn't be doing it

39:05

right. I would just be moving people from one place to another

39:08

instead of instead of connecting them. For

39:10

the city, not having to run all

39:12

new services to another area versus

39:15

start to get economies of scale within

39:17

certain areas is another win

39:20

for investors. Investing

39:23

in things that are already there

39:25

and already proven, right? Like, it's already

39:27

a functioning neighborhood. So it has existing

39:30

demand. You don't have to create new demand for for

39:32

people to do this. You get to tap into the existing

39:34

population. That feels like risk mitigation

39:37

from the standpoint of not having to go clear, cut a whole

39:39

bunch of trees to put in a multifamily

39:41

development. That makes me feel good from an environmental

39:44

standpoint. And it's no surprise

39:46

to me that. That's kind

39:48

of a thing that JWB first signed

39:50

it on the first front page of the wall street journal for

39:52

is like unlocking this idea of

39:54

building info lots as a builder.

39:57

Why is that? Why is that so much

39:59

more difficult? Right? Like why hasn't everybody else

40:01

just figured that out?

40:02

It's, it's definitely its own beast, if you will.

40:04

It's a lot of different challenges, space constraints.

40:07

Neighbors aren't always super happy when

40:10

you've got framers and reefers all around

40:12

making noise at all hours of the day. You

40:14

know, more construction crimes,

40:17

if you will, right? You got a lot more activity

40:19

in the neighborhood. You've got materials sitting out

40:21

there. They could. Much easier,

40:24

much easier for them to disappear, you know,

40:26

but yeah, I would say the biggest things are the space

40:29

constraints. Yeah, just getting,

40:31

you don't have a lot of machinery in and out, staging,

40:33

staging. I would say staging is a big

40:35

thing. If I got, you know, a trust package that's being

40:37

delivered and nowhere to put it, that's a problem. That's

40:39

a problem.

40:40

Yeah. Yeah. When you think about, when

40:42

you think about in, in the neighborhoods

40:44

that we live in and like, you see these homes

40:47

getting built all the way to the property line with a having

40:51

to do that inside these neighborhoods that are already,

40:54

you know, like there and functioning and like staging

40:56

and getting that stuff done, dealing with

40:58

noise complaints, dealing with all that other stuff. It's

41:00

its own, it's its own beast, man. I think it's super,

41:03

super impressive that you guys have unlocked it. so we

41:05

went over the before and after pictures. We

41:07

talked about this, like, value of InfoLots. We

41:09

got a couple of questions here. Sure. Lee Bishop.

41:11

He's the MVP. You may have heard of him. Lee

41:14

asks. William, how close

41:16

does your team work with the portfolio managers

41:19

in getting the tip off of turns

41:21

coming in a month? And does this go hand

41:23

in hand with pre ordering basic materials for

41:25

the turn?

41:26

It's a good question. So we do have a calendar

41:29

to where we can see a week out, two weeks

41:31

out, kind of what possessions are on the calendar.

41:33

So we have a pretty good idea as to what's coming.

41:36

as far as our interaction with the portfolio

41:38

managers, very, very

41:40

close, right? We're, we're going out

41:42

there. We're writing those scopes. We're

41:44

sending them in. They're going directly to the portfolio

41:46

managers, but we're also in contact

41:49

with them to say, Hey I noticed

41:51

this out here, right? Let's talk

41:53

about this. Let's make sure that we're on the same page.

41:55

So we understand what's going on. You

41:57

know, same idea if we're recommending carpet

41:59

or plank to say, Hey, look, here's some notes.

42:02

I'm recommending this. You can also do

42:04

this, making sure that we have all the options

42:06

out on the table. They're coming

42:08

to us with questions all the time. I mean,

42:11

I can remember when I was doing property turns

42:14

and you would field anywhere

42:16

between 20 to 25 phone calls

42:18

a day, just from the office having

42:21

having communication about the scopes and

42:23

kind of what's going on there.

42:24

So, 20 to 25 phone calls a day, just from

42:26

the office meeting, you're getting 20 to 25 phone

42:28

calls a day from our service

42:31

from our portfolio manager. To

42:33

keep the realist to keep the investor

42:35

apprised of like what we're doing

42:37

and what's going on.

42:38

Absolutely. As far as ordering materials,

42:40

I mean, that's kind of the beauty of what we,

42:43

what we do scaling it. We're using the

42:45

same materials in every house, the

42:47

same flooring, the same carpet, the

42:49

same plumbing fixtures, the same paint

42:51

products. So, our vendors and

42:53

our suppliers know that we are constantly

42:56

doing projects. So, they're always going to have it in stock

42:58

for us. So, there's not necessarily a need

43:00

to pre order. You know, if we go in

43:02

and we send one of our generals say, Hey,

43:04

here's a new property turned, you're going to paint the interior

43:06

of the South nine times out of 10, they

43:08

can call Sherwin Williams up in there

43:11

in the next couple of hours. And the pain will be ready. There's

43:14

a, there is a handful

43:15

of inherent scale

43:18

advantages of what you just described, right? Like we

43:20

always talk about this, like data flywheel

43:22

and how JWB everything is like a flywheel that

43:24

builds onto itself. Well, you just described

43:27

of. Having, not having

43:29

to worry about ordering materials gets

43:31

solved by multiple things happening at the

43:33

same time. One is the

43:36

widgetization of the real estate

43:38

asset, right? Like you use the same materials

43:40

over and over again. You know how to re

43:43

renovate, you know how to maintain, you know how

43:45

to build these homes all with as

43:47

few as skews as possible. Two

43:49

is the, Long term relationship

43:52

that you have with your vendors you really vet them

43:54

you build a relationship you keep them So and

43:57

you give them a lot of work every

43:59

single month So now they are

44:01

able to count on the fact

44:03

of okay, since I have this I

44:06

want to say guaranteed work But since since

44:08

I have this easy to prognosticate work

44:10

as long as nothing go nothing goes wrong here

44:13

they're able to manage

44:15

their own side better. That leads to shorter

44:17

lead times for you. Because

44:19

you were building out these relationships

44:21

with these subcontractors, they're

44:23

storing that because of the trust that's there.

44:25

You don't have to carry the late, the storage

44:28

costs and things of that sort. And it's all

44:30

of these things working in concert that lead

44:32

to these amazing metrics that you're able

44:34

to report on. I just thought that that was a, yeah, absolutely.

44:37

Absolutely. Yeah, man. I like that a lot okay.

44:39

So Venus has another question.

44:42

What neighborhoods zip codes in Jacksonville

44:45

are you mostly invested in? Is that something that you are pretty

44:47

familiar

44:47

with? Yeah. I mean, honestly, we invest in

44:49

every zip code. Yeah. Right. We're everywhere.

44:52

Yeah. all the way up past the airport,

44:54

all the way down to

44:57

St. Augustine, which is

44:59

service every zip code. Right. Right.

45:01

I guess the, most of the,

45:03

Investment that JWB is actually

45:05

buying into is kind of like those like four neighborhoods

45:07

around the urban core

45:08

Yeah, I would say your four your four main neighborhoods

45:11

if you will, you know, arlington beaches north

45:13

side west side south side. Yeah

45:15

a lot of emphasis. And you know,

45:17

you mentioned certain zip codes three two two

45:19

one one is a big one. We just saw the pictures

45:22

there of the new construction homes Yeah, three two two

45:24

one one in the arlington area. Yeah so

45:26

One one. I've heard like, oh, wait. Oh, nine. Oh,

45:28

eight. Oh, nine. Five. Four. Oh, six.

45:31

Oh, five. One. Oh, yeah.

45:34

Sounds like that ludicrous song when you talk

45:36

about the different area codes. Roger

45:38

Evans has a question. I came in late to the

45:40

show, but just curious, how many

45:42

builders does JWB use? How do they decide

45:45

who builds what homes?

45:46

We have two main builders that we use. You're in

45:48

builders. Okay. Um, we have American classic homes

45:50

who we've been partners with for a long time,

45:53

probably 10 years plus. And we have

45:55

flight builders, which is a, a new builder

45:58

that we've partnered with just in the past year or so.

46:00

Cool. Right on. Do you know, the decision making criteria

46:03

is basically pulled into the high standards

46:05

that, you know, can be delivered? Yeah.

46:06

I mean, American classic, they're handling the

46:09

bulk volume, just as how large of an

46:11

operation that they are. So a lot of it just

46:13

depends on the volume that each builder has.

46:15

Cool. Sweet. The

46:17

Ringmaster, Drew Barnhill, asks, Has JWB

46:20

ever entertained putting duplexes on these lots?

46:22

I know that you're not In the new

46:24

construction department, but do you know anything about

46:26

the decision making criteria of that type of stuff?

46:28

Yeah, I mean when I was working in acquisitions

46:30

a lot of times we looked at it as to

46:33

okay First off what size

46:35

is the lot right? What floor plan

46:37

do we have in our arsenal? That's even going to fit

46:39

on the lot Yeah, right. That's the biggest thing

46:41

Yeah,

46:41

because you guys have certain floor plans like you basically

46:43

have repeatable floor plans the same way

46:45

that a track builder As like 4

46:48

different things that they build in like 1 neighborhood, you

46:50

guys do that, but you put it in, you fit it into

46:52

different existing conditions. Yeah, exactly.

46:53

So that's the biggest thing is like, what can I even build here?

46:55

That's going to work the way that it's zoned.

46:58

How big is the lot? We look at

47:00

it really breaking it down as an investment.

47:02

You know, what can it, what can it be rented

47:04

for? What can we sell it for? What

47:06

does that return look like for the, for the potential

47:09

investor? So yeah, I mean, we're, we're always

47:11

looking at what makes the most sense for

47:13

the individual lot in the individual neighborhood.

47:15

We build a lot of town homes. Mm-Hmm, So duplexes

47:18

certainly are not the question. Cool. It's all just about,

47:20

you know, the lot in the area.

47:22

There you go. I'll be like that. Ringmaster.

47:24

BJ McKay, our dude BJ says,

47:27

are, we are JWB new builds.

47:29

kitchens equipped with dishwasher and

47:32

what flooring goes into new builds, you know that?

47:34

So we're not installing dishwashers

47:36

unless it's one that we've kind of

47:38

earmarked that we're going to sell retail. We

47:40

do sell some homes retail. We don't sell all

47:43

of our homes to investors. We do sell them to

47:45

their occupants. So if we're going to sell at retail,

47:47

usually, not all the time, usually

47:50

they're going to have a dishwasher in there. The

47:52

answer about the flooring, again, we've been using

47:54

that glue down plank product and we're in

47:56

the process of transitioning to that floating

47:58

click lock plank.

47:59

Got it. Sweet. Sir Jeff Bolton says, I

48:01

noticed in the latest turn, a mix of

48:03

screw in and ball valves. for

48:06

the sink, toilet, et cetera, shutoffs.

48:09

Is that mix planned for based

48:11

on availability? I don't even know what that means. I'm

48:13

not sure. I noticed

48:16

I noticed in the latest turn, a mix of

48:18

screw in and ball valves for

48:20

the sink, toilet, et cetera, shutoffs.

48:23

Is that mix planned for, for

48:25

based on availability? So

48:27

as you saying that The valve. Yes,

48:29

we're talking about maybe like a shutoff valve, you

48:31

know, to a faucet or a toilet. A lot of

48:33

times, you know, over time, those can just corrode

48:36

and start leaking, or maybe we

48:38

see that it's on, it's maybe not leaking, but

48:40

it's right on the verge of it. You know, we may opt to

48:42

go ahead and You know, get that done.

48:44

It's a quick, easy, cheap fix. And it's

48:47

something that could save a lot of headache down the road

48:49

when a resident's calling in saying my toilet's

48:51

leaking and my drywall is wet

48:53

and moldy and my flooring's peeling up because

48:55

of a water issue. Got

48:57

it. Got it. Interesting. Okay. So then the answer

48:59

is If they have these shutout files,

49:01

it's because it's happened because an issue has arised

49:03

and you've identified an opportunity to put these things in. Yep.

49:05

Got it. Love it. MVP Lee with

49:08

a, with a question trying to put you on the spot

49:10

here. He tends to do this. All right. Feel free to pass.

49:13

William has this under control. I want to put him

49:15

on the spot a little. Does he have a go to crew

49:17

that he calls out in an event of an emergency?

49:19

And does he want to give them a shout out here?

49:21

Absolutely. Yeah. I've got, I've got

49:23

to go to, so I guess it, and I guess it also

49:25

depends on what trade we're talking about. But

49:29

yeah, so like if I've got a, if I need

49:31

a generalist that I'm going to call in, I'm

49:33

always calling my boy Nick from Nitro

49:35

Solutions, right? He was actually part of the

49:38

maintenance presentation this morning. Nick used to

49:40

work for JWB. Right. Um, I know,

49:42

I know that I can trust Nick. I can always trust

49:44

Chris from CPT.

49:46

Yeah.

49:46

Right? So again, it all goes back to the,

49:48

to the relationship building, right? I'm

49:50

looking out for you. You're looking out for me. I

49:52

don't have to look at what you're doing under a microscope.

49:55

Yeah. You know, Adam Eisen always says, inspect

49:57

what you expect.

49:59

Mm-Hmm. right?

49:59

Mm-Hmm. But I know that I don't have to, I

50:02

don't have to babysit 'em, you know? Yeah. If

50:04

I've got a plumbing issue, I know I'm gonna call

50:06

Doug and John from Christian Brothers Plumbing.

50:08

I've got 'em on speed dial. Yeah. Right. I spend

50:10

a, I spent a half a day out in the field with

50:12

them last week doing nothing but going around and

50:14

cameraing drains.

50:16

Yeah.

50:16

So you spend time and, and you build

50:18

one-on-one relationships, and you build that trust.

50:21

I love it, man. I love how, how big a smile

50:23

you got on your face when you saw the question and how quick

50:25

you were to answer it the same way that Lee is saying,

50:28

because to me, there's just never been, I've

50:30

always seen the, the archetype, the

50:32

archetype of like the guy that knows

50:34

a guy being super, super valuable and

50:37

the idea and the only become that by

50:39

building relationships, having a bunch of exposure,

50:42

you know, like testing and working with different

50:45

people and building like long levels of trust

50:47

and it's just really, really clear that From your

50:49

position and the way that JWB operates with

50:51

their service teammates and

50:54

contractors that they use that you, you

50:56

serve, you serve as that as, as

50:58

the construction,

50:59

the amount of time that I've had an opportunity to swim with

51:01

Jim Marshall, who's our director of construction

51:04

and Larry Holland, who's our production manager.

51:07

They've kind of instilled that in me.

51:09

They've beaten it into my head to where I dream

51:11

about it at night You know this this entire

51:13

industry and not just construction, but really

51:16

real estate as a whole.

51:17

Yeah

51:17

It's all about the the relationships

51:20

that you build It's all relationships.

51:22

Couldn't agree more man. I love it All right Last couple of

51:24

questions before we head you get you out of there great questions

51:26

today from the from the q a mike foster

51:28

asks, do you see much problem with home mold

51:31

buildup due to florida humidity? You

51:33

Yeah, you could see that a lot of times in older homes.

51:35

You know, maybe they don't have

51:37

exhaust fans in the bathrooms. Maybe it's

51:39

an older block home that doesn't have insulation

51:41

in the walls. So we have a couple

51:44

of different avenues that we take to mitigate

51:46

the humidity issues. But yeah, I mean, it's a real thing.

51:48

Yeah.

51:49

You're a construction guy in Florida. Well, I say

51:50

welcome to Florida. Yeah. You're

51:51

a humidity pro, right? Yeah. Got it. Just

51:54

like up north, people are really, really good at

51:56

Keeping heating inside and

51:59

weatherization on that.

52:00

You know, 1, 1 thing that, you know, we, we

52:02

obviously take that very seriously.

52:04

And we focus on that. So, I actually went

52:06

out and got a molds, a mold

52:08

certification, you know, to where if

52:10

somebody is calling in with a mold issue, we have

52:12

somebody on staff that can go in and look

52:14

at it and diagnose the issue with, you

52:16

know, Fairly good certainty as

52:19

to what we need to do to get the

52:21

issue fixed. All right, so you got a PhD in mold,

52:23

something like that. Yeah.

52:24

Something like that. Last question here. The patron

52:26

Santorios of the community, Michael Santorios

52:29

says, William, when looking at the new

52:31

home inventory, this might not be in your

52:33

purview, but I'm going to ask it anyways. At the new home

52:35

inventory on the JWB property site,

52:38

past new home construction seemed to be four

52:40

bed, two bath. And now they appear to be Three

52:42

bed, two bath. Am I wrong in this observation?

52:45

I'm not sure. I mean, I know that we build both.

52:47

Yeah. And like you said, it's kind of

52:49

like, depending on the lot, you

52:51

have a couple of pitches. Yeah. And depending

52:53

on the batter, you pick the pitch, right? Exactly.

52:56

Now that, you know, getting, getting your baseball crowd back

52:58

up. It all comes back. Since you missed the whole cleanup

53:01

scenario. Last question for you from

53:03

me, man, as this As

53:05

this operation grows, as

53:07

you see what's happening in downtown,

53:10

as you like, connect the dots

53:12

here, based on the impact that you've made in these

53:15

kinds of neighborhoods. What are you

53:17

most looking forward to with,

53:19

with this kind of like the operation and what you guys

53:21

are doing in the city and stuff like that for

53:23

personal, professional, you know, whatever, whatever

53:25

you got. I think it's always exciting to see what's

53:27

going on downtown. You know, again, as

53:29

somebody that's lived in Jacksonville their whole lives

53:32

and kind of seen the ups and downs of downtown,

53:34

if you will. I think it's, I think it's really

53:36

exciting to see the amount of activity and the amount

53:38

of emphasis. And I think it's going to be great

53:40

for the city as a whole. But I also think it's going

53:42

to be a great thing for investors. Most

53:45

of those core neighborhoods that we're building

53:48

and investing in are immediately

53:50

surrounding that downtown area. So I think

53:52

that that only can bring good things for our investors

53:55

agreed, man. As I came back from this event,

53:57

California, like, I was, you know, I was there.

53:59

I made a presentation on rental property, investing

54:01

and keeping it passive. Right? So I It was like

54:03

five profit centers. It was the

54:05

idea that like you make your most of your wealth with home

54:08

price appreciation. So you got to be in it for a long time.

54:10

It was this idea that if that's what you're doing, then

54:13

order of operations needs to flip and not be

54:15

just property focus, property focus,

54:17

and then find a team, but find a team first and

54:19

then property focus. But the conversations

54:21

that people really got excited about was this idea

54:23

of Man, this great american

54:25

city that's had all this great trajectory

54:28

And yet downtown hasn't even turned

54:30

on And all the signs that say downtown

54:32

is turning on in the next five years.

54:35

You're not going to recognize it We're headed

54:37

to that like nashville charlotte

54:39

Austin Denver kind of status and

54:41

people wanting to be a part of it. Absolutely. It's really,

54:43

really exciting as I'm getting goosebumps talking about it as

54:46

a, as an investor, as a resident, I

54:48

would imagine that being in like the belly of the beast, that's

54:50

like really driving this stuff forward. It's got to be

54:52

super excited.

54:52

It's exciting. I mean, you drive, you drive up 95

54:55

and you look over and you see, you know, the development

54:57

in La Villa, they just recently finished.

54:59

That's kind of like the first thing on the horizon

55:01

that you see now. So it's coming.

55:03

It's coming,

55:04

man. It's coming. I got a question in the chat

55:06

From jay currup. Do you proactively evaluate

55:09

homes for maintenance?

55:10

Yes, a lot of times that, you know, when we

55:12

go in and do a property turn, we're kind of

55:14

looking and saying, okay, and that

55:16

kind of comes also full circle back to,

55:19

you know, the question about how much communication are we

55:21

having with the portfolio managers? Right? We'll,

55:24

we'll go out there. We'll write a scope of work

55:26

and we'll mention something. Say, Hey,

55:28

look, you know, your air conditioner here.

55:30

You're going to make it through 1 more lease cycle,

55:33

but you should probably be prepared on

55:35

the next go around that we're either going to have some major

55:37

maintenance or replacement. So we

55:39

try to prep you up front as much as we can.

55:42

When we see that something's kind of coming down the pipeline,

55:44

if you will.

55:45

Interesting. So you guys are. One,

55:48

you know, like ahead of the

55:50

next turn, you're giving investors

55:53

some insight into expectations,

55:56

right? Like, I feel like kind of like investing in these

55:58

homes, owning these things for a while, the

56:00

biggest risk is like surprises.

56:03

And especially when it comes to the financial side.

56:05

So you're able to provide some real

56:07

insight into, Hey, we're

56:09

renewing this time around this thing doesn't have

56:11

to happen, but likely at the end of this

56:13

two, three year lease, I called a Bolo

56:16

beyond the lookout, beyond

56:18

the lookout. I like that. I like that. So be out.

56:20

So Bolo reports, do you

56:23

ever wear Bolo ties? Is that a thing that you do? Did

56:25

we just become millionaires? And

56:28

then the last, all right, Susan has one more question.

56:31

I know that this is not in your purview, but

56:33

do you have any pull on getting

56:35

houses that are currently on septic

56:38

pushed down the city timeline to convert to city

56:40

sewer? I wish. You can make just one call,

56:42

right? I wish. I

56:45

feel your pain though. Great pain. Yeah.

56:47

All right. Well, I meant, I super pumped that you

56:49

uh, joined us again, man, as usual, totally

56:52

delivered as usual community. Great

56:54

questions. Yeah. Really good questions on the community,

56:56

right? Like this thing would have ended a half an hour ago.

56:58

Uh, so, you

57:01

know, we never take it for granted that you take a full hour

57:03

out of your day to hang out with us, have these

57:05

great questions, add to the conversation. We

57:07

will always take questions, always answer them. And

57:10

just really, really appreciate it next week. We're

57:12

unveiling something new to the world. We're

57:14

giving birth out here on the natural average investor. You

57:16

want to know what's going on? Enlighten me. GC

57:19

and the team have developed a new tool

57:22

to understand returns

57:24

and get clarity on portfolio building.

57:26

And we're doing a natural average investor

57:29

show world premiere. We're changing

57:31

the game.

57:31

GC is a numbers guy for sure.

57:33

GC is just cooking them up in the lab

57:36

now. GC spreadsheet game

57:38

is unbelievable.

57:39

Yeah, that's kind of like a that's a personal goal

57:41

of mine. It's like really up my excel

57:44

game

57:45

I remember when I was in construction, that was

57:47

always a personal goal for me and it was just completely against

57:49

my constitution I've got

57:51

a pretty strong base layer. Yeah, we need to start

57:53

adding some gadgets and gizmos on there.

57:55

There you go Well, we'll see we'll see if maybe in a year or two

57:57

you're coming out with brand new groundbreaking

57:59

analysis tools We'll bring you back on. Yeah,

58:02

Family, we'll see you next week. And from

58:04

here till then, William, do you know what the piece of advice

58:06

we always give everybody?

58:08

Don't be average.

58:09

Don't be average. See you next week.