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
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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
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