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 They do what most flippers won’t—buying old, often outdated homes, tearing them down, and rebuilding them to fit today’s standard.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.
~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?… ~~~~ Listen to The “On The Market” Podcast Wherever You Listen to Podcasts: Spotify: https://open.spotify.com/show/2NlzZ9N… Apple Podcasts: https://podcasts.apple.com/us/podcast… BiggerPockets: https://www.biggerpockets.com/podcast… ~~~~ Join the Future of Real Estate Investing with Fundrise: https://www.fundrise.com/bpmarket ~~~~~ Where Does Housing Demand Exceed Supply? https://www.biggerpockets.com/blog/ho… ~~~~ Connect with Tommy on LinkedIn: https://www.linkedin.com/in/tommy-bea… ~~~~ Learn More About Thomas James Homes: https://tjh.com/ ~~~~ Use NeighborhoodScout to Find Market Data in Your Area: https://www.neighborhoodscout.com/ ~~~~ Connect with Dave and Our Panel of Guests: Dave Meyer: https://www.biggerpockets.com/users/d… Henry Washington: https://www.biggerpockets.com/users/h… James Dainard: https://www.biggerpockets.com/users/h… Jamil Damji: https://www.biggerpockets.com/users/j… Kathy Fettke: https://www.biggerpockets.com/users/k… ~~~~ Follow Dave and Our Guests on Instagram: Dave: @thedatadeli or https://www.instagram.com/thedatadeli/ Henry: @thehenrywashington or https://www.instagram.com/thehenrywas… James: @jdainflips or https://www.instagram.com/jdainflips/ Jamil: @jdamji or https://www.instagram.com/jdamji/ Kathy: @kathyfettke or https://www.instagram.com/kathyfettke/ BiggerPockets: @biggerpockets or https://www.instagram.com/biggerpockets/ Episode 40 Show notes at: https://www.biggerpockets.com/blog/on… 00:00 Intro 03:57 Tommy’s Evolution of Investing 06:14 The “Tear Down, Build New” Model 15:33 What Makes a Good Market? 24:45 The Property Product-Market Fit 29:58 A Dip in New Development 37:26 Are Costs Starting to Cool? 41:58 Take a Big Risk 45:00 Where to Dig Into Data #biggerpockets #onthemarket #episode40