On The Market 40: Property Product-Market Fit: The Most Important Metric You’ve Never Heard Of w/Tommy Beadel
Housing demand has caused home prices to explode over the past two years. But, even as interest rates rise, the Fed tries to curb inflation, and would-be-homebuyers enter back into the renter’s market, there still isn't enough land to go around. For developers like Tommy Beadel, this is a good problem to have. On one hand, tailor-made homes for new homebuyers sell out quickly, but without a ton of deals to go around, where do you go to find good dirt?
Tommy is the CEO of Thomas James Homes, rebuilding experts in the Seattle, SoCal, Silicon Valley, Denver, and Phoenix markets. They do what most flippers won’t—buying old, often outdated homes, tearing them down, and rebuilding them to fit today’s standard. Doing this allows them to sell at the highest price to a consumer that only wants the best and latest home to buy. They skirt the line between new development and renovating/rehabbing homes, but this niche has paid off.
Unsurprisingly, Tommy came from a background like most of us. He attended a real estate seminar, surprisingly didn’t get scammed, and house hacked right out of college. His passion for real estate grew from there, taking him from the mortgage industry to investing and now building. But Tommy is convinced that his niche isn’t a cyclical one. Instead, it’s something he can rely on that will stand the test of time. He’s got the data to back it up, and you’ll hear all of it in this episode.
In This Episode We Cover
The “tear down, build up” style of new construction and why there’s so much demand for it
The property product-market fit and how today’s trends show what a homebuyer wants
Scalability vs. predictability and the most crucial aspect of growing a real estate business
What predicts a profitable housing market and the data you need to know before you invest
Material and labor costs and some good news for builders/rehabbers
Entering back into a “middle-ground housing market” as sellers and buyers reach a stalemate
And So Much More!
Links from the Show
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
Where Does Housing Demand Exceed Supply?
Use NeighborhoodScout to Find Market Data in Your Area
Connect with Tommy:
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-40
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