Builders Outlook 2019 Issue 12

Page 1

www.elpasobuilders.com

VOL 2019 ISSUE 12

BuildersOutlook PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS

FIRST LOOK EPAB Installs 2020 Officers

Millenials drive housing booms Most Home Building in Milllennial Areas, Pace Lags Rest of Nation

Millenial Movers Millenial Population Share Millenial Movers

Happy hour sponsor Tony Mullen of MTI Ready Mix, congratulates 2020 EPAB  President Edgar Garcia.

A night of fun, surprises and Joy The evening was buzzing with old friends finding each other and new friends being made. It was the 73rd El Paso Association of Builders installation and awards dinner held at the Radisson Hotel for the first time. The foyer was the gathering point for the happy hour presented by MTI Ready Mix and our benefactor Tony Mullen. His support for the EPAB is long term and committed. “I just want everyone to have a good time and catch up with each other, so I am glad to do this for my friends,” Mullen told the Outlook. His reward he says is seeing everyone have a good time. The other Diamond Partners WestStar and Haskins Electric, Platinum Partners Interceramic and Jobe, and Gold Partners Texas Title and Western Heritage Bank all joined the celebration and were presented with mementos to take back to their offices. Our thanks to all of these members for stepping up to the plate and help us make the night possible. The evening which traditionally has named the “of the Year” award winners this year included the fan awards for the 2019 Parade of Homes.

Complete List of Winners page 9

The majority of single-family and multifamily housing production in the nation is occurring in counties with the greatest concentration of millennials. However, in a warning sign that the housing affordability crisis persists and more construction is needed, the pace of housing production in areas with the greatest concentration of millennials lags the rest of the nation, according to the latest quarterly National Association of Home Builders (NAHB) Home Building Geography Index (HBGI). The third quarterly release of the HBGI sheds new light on the housing market by focusing on where millennials live. “Millennial counties” are defined as geographic areas where at least 26 percent of the population consists of this growing demographic group. These millennial counties are diverse, representing major metro areas including several California markets, Seattle, Portland, Boston and Washington, D.C., as well as more rural counties in places such as Ohio, Kansas and Missouri. The HBGI found that those counties with elevated millennial shares account for 62 percent of the entire U.S. population. These counties also account for 59 percent of single-family home building nationwide. “On the surface, these numbers look similar, but you would expect the single-family construction share to be higher in millennial intensive areas, which tend to feature greater amounts of household formation and population growth that require additional housing,” said NAHB Chief Economist Robert Dietz. “The HBGI highlights the ongoing challenge of housing supply, particularly for younger households seeking affordable rental housing or attempting to gain a toe-hold on the homeownership ladder,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “While counties that have greater concentrations of millennials are where most of the single-family and multifamily construction in the U.S. is occurring, those same areas have recently seen

Millenial Movers

Millenial Movers

Millenial Population Share

Millenial Population Share

Millenial Population Share Millenial Movers Millenial Population Share

relatively weaker growth rates for home construction.” “The new NAHB HBGI data shows two consecutive quarters of declines for single-family construction in counties with larger numbers of millennials, the very areas that most need additional home construction,” said Dietz. “These localities are more acutely affected by supply-side constraints due to the greater demand for inventory resulting from the relatively younger population that resides there.” Meanwhile, multifamily construction in millennial counties—which accounts for 80 percent of all apartment activity nationwide—picked up in the third quarter, though the improved growth rate was slower than the nationwide pace. “The outsized concentration of multifamily construction in areas with a large proportion of millennials is not a surprise, but it is also a reminder of the mismatch between housing wants and housing availability that is challenging the for-sale market,” Dietz noted. The HBGI is a quarterly measurement of building conditions across the country and uses county-level information about single- and multifamily permits to gauge housing construction growth in various urban and rural regions.

Other findings in the third quarter HBGI: Growth in single-family construction was insufficient to keep pace with demand in the third quarter of 2019, continuing along a weaker trend due to the housing downturn from last year. Apartment construction is leveling off nationally but spreading out geographically, as multifamily building showed some gains in less densely populated areas, such as small towns and rural counties. Apartment construction in large metro core and large metro suburban areas rebounded in the third quarter, reflecting the highest growth rates in these regions in two years. Weakness in manufacturing areas continues to limit home construction. Manufacturing counties’ share of multifamily home construction decreased by 0.5 percentage points to 6.3 percent, while single-family construction declined at a faster rate in such areas compared to nonmanufacturing areas. A slow shift of single-family construction from close-in suburbs to exurban locations continues due to land and lot availability and cost. This market environment, made worse by inefficient zoning practices and regulatory burdens, will continue to create a mismatch between where housing demand is growing and where housing supply can be affordably realized.

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2019Issue12

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BuildersOutlook

President’sMessage

How to Prepare for a Market Downturn

Sergio Cuartas President El Paso Association of Builders

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I think back on 2019 and realize it has been a better year for home builders than many had expected. In the latter part of 2018, economists were predicting interest rate hikes which could slow sales. Yet, these big jumps did not occur. Our biggest issues have been increasing difficulty finding construction workers, lot availability and rising material, labor and lot costs. However, our sales have remained fairly steady despite the price increases. A booming medical industry in El Paso is bringing better-paying jobs to town. We are witnessing many new apartment complexes and being built, major down town renovations, large regional shopping malls, numerous TXDOT highway projects, school renovations, new schools, city parks and national chains seem to be noticing our booming market. On both local and national levels, unemployment rates, inflation and gas prices remain low, fueling our economy. Though it has been the subject of increased discussion for the last few years, to date we have avoided a recession. Economists such as Eliot Eisenberg whose column is published in our newsletter along with NAHB’s Robert Dietz currently predict that should a recession happen in the next year or two, it will most likely be mild in nature and of a short duration. Nonetheless, many of us were in business during the painful downturn in 2008 and realize how debilitating recessions can be, so I would like to take this opportunity to examine the issue in greater detail so that we may be better prepared for the next one. First of all: THANK YOU to all the prominent and experienced people (bankers, suppliers, builders) who met with me or responded to my questions about this topic for your valuable insights and your time. One of the most drastic consequences of a recession for a home builder is ending up in bankruptcy. But what choices do builders make, or what actions do they take that lead to this result? The most common reason builders end up in trouble is because of a lack of cash flow. Builders may have assets, but no way to liquidate them quickly. They may also have spread their cash too thinly between projects or have overextended their credit and borrowed too much money. A second issue is debt: builders may not be able to maintain payments on construction loans, lot loans, equipment loans or trade credits. If a builder is overly ambitious and trying to expand too quickly, it may start too many spec homes at once, or try to enter new sectors or open new branches in other cities. Over diversifying, using too much of the company’s capital to fund other companies’ projects, can also strain the financial resources of the builder. Having too much overhead involved in the business and being unable to cut it quickly during a recession can make builder vulnerable. Finally, a lack of attention can be a costly mistake, whether it is forgetting to pay attention to rising costs such as labor, interest, or profit margins or not watching the housing market. Another example is investing too much in the wrong product because of neglecting to monitor changes in demand and affordability. If a recession has just begun, what can builders do to survive the storm? Being sufficiently liquid is critical to a company’s success. Having a significant

If a recession has just begun, what can builders do to survive the storm? Being sufficiently liquid is critical to a company’s success. Having a significant amount of cash in savings is the most convenient source of help, as well as possessing access to additional capital as needed. Strong relationships with lenders and suppliers are critical at all times. amount of cash in savings is the most convenient source of help, as well as possessing access to additional capital as needed. Strong relationships with lenders and suppliers are critical at all times. If builders see trouble ahead, we should immediately speak to our lenders about the issue instead of letting the lender hear about the problem through third parties. Having good financial statements and reviewing them often is also fundamental. The next area on which to focus is minimizing expenses. Builders should find ways to cut costs, which many include downsizing the number of staff and reducing overhead, refinancing loans at lower interest rates if possible, regularly reviewing cost structures, and negotiating prices with suppliers. In order to increase cash flow, builders should also take swift action to slow production and systematically liquidate their inventories, being willing to cut prices if necessary to make sales, and avoiding being the last builder with inventory in a subdivision so that homes do not appear “stale.” In terms of inventory, builders should be cautious to purchase lots, because they are difficult to liquidate and can lose value during a recession; in addition, builders should make sure not to have too many spec or model homes available, and consider building only on a pre-sold basis, requiring higher non-refundable builder deposits. During a recession, flexibility and innovation are also vital. Finding alternate revenue streams such as remodeling projects, additions or building government housing (as long as builders are committing to them in moderation) can be helpful. Willingness to adjust or simplify floor plans to better fit the market can also increase sales during a recession. It is also important to consider the resource of personnel during this time. First of all, company leadership should communicate effectively with employees, subs and suppliers being candid about the state of affairs. In addition, it is detrimental to focus on what could have been instead of on what to do moving forward. Builders should develop and keep employees who are capable and loyal, and turn to them for assistance with finding solutions. People will need to work together even more than before and should try to avoid “silos” (stubborn ownership of specific tasks or work responsibilities). Finally, builders need to manage the business on a daily basis, utilizing short term goals to tackle problems little by little. Resilience is an important tool to help us survive. The above advice assumes a recession is in force, but what is even more useful for us today is trying to foresee when a recession will occur and prepare for it. The people I interviewed urge the importance of watching financial trends such as fluctuations in interest rates, a decline in stock prices of publicly-traded competitors, and the

number of mergers and acquisitions occurring. Monitoring the stocks and bonds market, including the Dallas Fed quarterly indicators in Texas is also highly useful, particularly taking note when economists mention an inverted yield curve. Watching national trends can be helpful since our market seems to trail the national economy. Sales trends such as a period-over-period sales rate decline, difficulty with local home affordability due to materials and labor costs rising, and residential starts being down 10% or more in the last six months are also warning signs. Local employment trends can also be indicators of the way the market is moving, as it fluctuates with new jobs either coming to town or leaving town. Military or federal job cuts should be noted as well. Staying involved with organizations like the EPAB (follow our market intelligence reports) in order to follow trends and communicating with peers such as bankers, realtors, and suppliers for their input on the market is advised. Builders who are always preparing for a rainy day and running their businesses always efficiently will be those that can most successfully weather a recession. Many great people provided their valuable advice which I try to summarize as follows: In addition to having liquid assets as mentioned previously, other suggestions include financing long-term assets with long-term financing and using cash for operations only, having the appropriate level and type of debt, and reducing debt as much as possible. In terms of minimizing expense, builders should monitor overhead as a percentage of gross revenue, base construction starts on sales to minimize expenses (look at turnover), know how much material and labor time is needed to complete jobs, and eliminate waste of building materials and labor costs. Regarding housing inventory, respondents remind us that having too much spec inventory can put a strain on working capital, quality of work, customer satisfaction and reputation. Lot inventory should be a rational amount. A good rule could be to have no more than 6 months’ worth of purchased lots on hand and six more months on first right or spoken for basis. Pricing of homes should have healthy profit margins now so that there is room to cut in the future, and builders could consider building smaller floor plans. Price points and products should be diversified to match shifts in customer segments (first time buyers, step up buyers, and custom home buyers). Thank you for reading this far and I hope you have found some of these tips useful. As always, please do business with a member, help a member, recruit a new member, participate in our events and advertise in our publications. Thank you very much for everything you do for our association. Happy holidays!


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Executive’sMessage El Paso & Southern New Mexico

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insp piration ideas reso ources

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Yo Y our home is your life, make it beautiful. Stunning photos make e Southwest homes come c alive! make the two-story e picture windows Large ll and airy and naturally living room sunny ape landscape. di landsca the eye to the surrounding inside d id both l l palettes Puncttuating neutral furnishings olored furnishi i htl color brightly are b o and outside

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bathroom b h essentials

Executive Vice President El Paso Association of Builders

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Ending the year on a short and sweet note Its final. The year is gone and with it some highs and some lows. First congratulations to Sergio Cuartas for his work as President. He instituted some good ideas and efforts from the members that will continue well past this year. He also is our Builder Member of the Year. My dear friend Ted Escobedo is our Associate Member of the Year, and it couldn’t go to a better person. Ted is creative and hard working and has contributed so much during our time together that this award is so deserving. Congratulations to Ted. Look I’m not going to talk so much about the past as I am about the future. We have a lot of work to do in 2020 and with President Edgar Garcia and his team things will get done. We are in a transition with builder dues; we are going to be working to increase membership; will are going to grow into parts of the county that will stress the communities and industry alike. So strap on your seatbelts and get your goggles on. We are launching our 2020 rocket now. Merry Christmas and Happy New Year. See you in 2020.

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El Paso & Soutthern New Me

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BuildersOutlook

5

NationalOutlook Multifamily Builder and Developer Confidence Weakens in Third Quarter Confidence in the market for new multifamily housing weakened slightly in the third quarter, according to results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) fell seven points to 49 compared to the previous quarter. Meanwhile, the Multifamily Vacancy Index (MVI) remained even at 40, with lower numbers indicating fewer vacancies. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number below 50 indicates that more respondents report conditions are getting worse than report conditions are improving. The MPI is a weighted average of three key elements of the multifamily housing market: construction of lowrent units—apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units—apartments that are built to be rented at the price the market will hold; and for-sale units—condominiums. The component measuring low-rent units fell five points to 51, the component measuring market rate rental units dropped 20 points to 44 and the component measuring for-sale units remained

even at 50. The MVI measures the multifamily housing industry's perception of vacancies in existing apartments. It is a weighted average of current occupancy indexes for class A, B, and C multifamily units, and can vary from 0 to 100, where a number under 50 indicates more property managers believe vacancies are decreasing than increasing. With a reading of 40, the MVI remained unchanged from the previous quarter. “The overall multifamily market remains solid, but developers are moving forward cautiously to manage inventory and keep it in pace with consumer demand,� said Gary Campbell, CEO of Gilbert G. Campbell Real Estate in Lowell, Mass., and chairman of NAHB’s Multifamily Council. “The slight reduction in the MPI is to be expected as multifamily starts were relatively high in the second quarter,� said NAHB Chief Economist Robert Dietz. “The stability of the MVI is also consistent with the Census Bureau’s five-plus vacancy rate, which has moved very little in the last six months.� Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

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Randy Bowling Installed as 2020 President of Texas Association

AUSTIN, TX – November 22, 2019 The Texas Association of Builders installed Randy Bowling as President on Thursday, November 21, during the TAB Excellence in Leadership Dinner at The Line Hotel in Austin, Tx. Randy Bowling, a native of El Paso, is President and Majority Owner of Tropicana Homes, Co-Owner of Tropicana Properties, Tropicana Building, and Patriot Mortgage- all of which are El Paso owned and operated. Randy has served at the Texas Association of Builders (TAB) as a member of the Board of Di-rectors) since 2004, Chairman of TAB’s Government Relations Committee, HOMEPAC Trus-tees, Codes & Standards Committee, and served on the Executive Committee as Vice Presi-dent in 2019. In 2016, Randy was named a Life Director of TAB. Among numerous awards and honors, Tropicana Homes has been recognized by TAB as Developer of the Year and twice as Builder of the Year. “We are honored to have Randy Bowling serve as our 2020 President of the Texas Association of Builders,”

said Texas Association of Builders Executive Director Scott Norman. “Randy and his family have been instrumental in the residential construction industry at the local, state and national levels for decades. His experience, work ethic and ability to relate to people are recog-nized by his peers as evidenced by their choice of electing him to serve our 10,000 plus mem-bers and their companies in this very important leadership position for the coming year.” Randy is the fifth El Pasoan to serve as President of TAB, including his brother and business partner, Bobby Bowling IV, who served as President in 2004. Other previous El Pasoans who served as Presidents of TAB include William J. Elliott in 1954, Willis G. Schoemaker in 1973, and John R. Schatzman in 1980. “We are very proud of Randy’s election as the 75th President of TAB,” says Bobby Bowling, co-owner of the Tropicana family of companies and Randy’s brother. “Randy’s voluntary contribu-tions of time and resources to the Texas Association of Builders will really benefit Tropicana Homes, El Paso and the entire state of Texas. Randy will be speaking for and representing the entire homebuilding industry, and his specific knowledge and background will translate into producing more quality affordable housing for El Paso and the entire state of Texas. I couldn't be prouder of my brother.” Founded in 1946, the Texas Association of Builders (TAB) is an affiliate of the National Association of Home Builders and has 27 local

associations and almost 11,000 builder, remodeler, developer and associate members across the state. Rep-resenting over 723,058 jobs and more than $67.5 billion annually in the Texas economy, the state and local associations play a crucial role in providing housing for Texans. The office of President of the Texas Association of Builders is one that carries the highest honor, as well as the greatest responsibility. The President’s duties require commitment, energy, enthusiasm, and a willingness to expand one’s leadership abilities. The senior officers are the core leaders of TAB. They are charged with upholding the bylaws and policies of the as-sociation. About Randy Bowling and Tropicana Companies: Tropicana Homes and its affiliates have been building homes and apartments in El Paso since 1950, and have built over 10,000 residences since that time. After spending the last

23 years building residential properties, Randy has be-come an expert on land acquisition and development, residential construction in Texas and New Mexico, residential lending, and assisting his brother with navigating the ever-changing complexities of the Low-Income Housing Tax Credit Program. Randy launched and currently over-sees the benchmark initiative across all Tropicana companies “Let Tropicana Properties Put you in a Tropicana Home” which assists families to fulfill what otherwise may have felt overwhelming or unimaginable to achieve the dream of homeownership. The initiative has assisted 50 families who started out as tenants in Tropicana’s low-income rental housing communities in the past 2 years alone, with dozens more in the process as the program grows.


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Continued from Page 1

2019 EPAB Award Winners PARADE OF HOMES AWARDS

Best interior use of Stone or tile: ICON Custom Builder • Best exterior use of Stone or tile: Winton Custom Homes • Best Master Bathroom: Deal 2 Deal Custom Homes • Best Kitchen design: Pacifica Homes • Best Landscaping: B I C Homes • Best Great Room: ICON Custom Builder • Best Master Bedroom: Diamond Homes • Best Use of color: Winton Custom Homes • Best Special Feature: Deal 2 Deal Custom Homes • Best Entryway: Winton Custom Homes • Best Floorplan: Palo Verde Homes • Best Outdoor Kitchen Design: ICON Custom Builder • Best Theater Room: Deal 2 Deal Custom Homes • Overall Fan Favorite (tie): Diamond Homes and Winton Custom Homes Our thanks once again to developer Hanson Asset Management, Russel Hanson and Lorraine Fender In the event, attended by more than 280 people, the EPAB honored Sergio Cuartas as Builder Member of the Year and Ted Escobedo as Associate Member of the Year.

In accepting the award Sergio told the audience that he was humbled and grateful for the opportunity to lead in 2019 and that he has learned a lot. “I finally figured out what my dues are for,” he mused in his thank you speech. Ted Escobedo was surprised but about halfway through the announcement of who the winner was he began to think it might be him. “First off I am so happy and honored for the award, and secondly it was a surprise,” Ted told the Outlook. There was a gasp when the crystal award slipped out of his hands and onto the floor some three feet off the floor. “Oh my gosh, I can’t believe that just happened,” he told the crowd. Nothing happened to the award, but it definitely will be remembered. There was a video shown with highlights from the year and we gave a nod to those loved ones we lost. The tribute was well received. Randy Bowling, President of the Texas Association of Builders was the installing officer for the event. “I am honored that once again I have been asked to install this group,” he said. “We have great people here willing to lead and that’s important for all of us, associate or builder alike,” Bowling said. The installation of the 2020 Board of Directors went smoothly as Randy gave the incoming members orders as to what is expected of them. He asked them to say, “I DO” and were congratulated. His installation of the Executive team was also a reminder of what they have agreed to do. Bowling then introduced

Edgar Garcia to the audience “I present the 2020 President of the El Paso Association of Builders, Edgar Garcia” as the crowd applauded and cheered. Garcia, Bella Vista Custom Homes, has accepted a tough job with some tough goals. “I want to make sure that everyone gets involved in the association, that they contribute, and that they help us grow,” he said in his speech. He went further with the Board of Directors, urging them the participate with time and money, and commitment. “I want to make sure that the Board knows they are not here just to say they are board members, but to commit to supporting the association financially and with commitment,” he said. More Photos Next page

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EventsOutlook EPAB Installation Contnued from page 7

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EPABMembers&Services Builder-DeveloperMembers BUILDER & DEVELOPERS Bain Construction Scott Bain 915-852-8620 Althon Investments, LLC Jose Luis Martin (915) 532-3100 Bella Vista Custom Homes, Inc. Edgar Garcia 915-433-4854 BIC Homes Antonio Cervantes 915-855-8236 Blue Sage Homes, LLC Jaime Gonzalez 915-787-9175 Carefree Homes Richard Aguilar 915-590-8511 Casas De Leon, LLC Nick Bombach 915-584-5050 Cisco Homes LLC Francisco Arroyos III 915-633-8002 Classic American Home Priscilla Hernandez 915-593-7707 Crown Heritage Homes Lydia Mlouhi 915-252-8193 CS Custom Homes Steve Gonzalez 915-346-1107 Cullers & Caldwell Builders John Cullers 915-584-5600

Cullers Homes Jason R. Cullers 915-584-5600 D B Innovations LLC Dan Berry (915) 283-7558 Dawco Home Builders Walter O. Lujan 915-587-5267 Deal 2 Deal Custom Homes Delton Deal 915-217-9233 Del Rio Engineering, Inc. Sal Masoud 915-833-2400 Diamond Homes, LLC Valerie Baquera 915-449-9044 E. Valencia Land Development LLC Eddie Valencia 915-855-0622 Eclat Homes & Designs Veronica Guerra (915) 630-6729 Edward's Homes, Inc. Eduardo Fernandez 915-849-8819 EPT Bella Custom Dream Homes Leti & Javier Navarrete 915-779-4553 EPT Land Communities David Bogas 915-838-8100 Everest Homes Edmundo Dena, Jr. 915-855-8633 Fortune Custom Homes Javier Andrade 915-856-7795

AssociateMembers 3RD PARTY INSPECTIONS Vision Consultants, Inc. Kelly Sorenson 915-227-2100 ALARM SYSTEMS ADT Security Veronica Vazquez 915­258­3870 APPLIANCE DISTRIBUTORS Builders Source Appliance Gallery Sandra Lucero 915-775-1000 Morrison Supply Sam Shallenberger 915-778-3086 APPLIANCES GE Appliances Christine R. Villanueva 806-252-3683 Whirlpool Gwen Walker 505-220-3915 ASPHALT PAVING Alpha Asphalt Gabriel Chavez 915-252-6244 ASSOCIATION El Paso Mortgage Bankers Association Brenda Aguirre 915 204-3867 Greater El Paso Assoc. of Realtors Jason Sanchez 915-779-3521 Greater El Paso Chamber of Commerce David Michael Jerome 915-534-0522

AUTO HOMEOWNER INSURANCE TAB endorsed State Auto (Association Insurance Solutions) Russ Sartain, Danner Bethel 512-203-2910 BANKS/BANKING SERVICES Bank of Texas Ray Owen 915-313-6720 City Bank Texas

Gaddy Construction Charles Gaddy 915-581-3966 Guel Construction Rudy Guel 915-595-0979 Hakes Brothers LLC Chris Hakes 575-373-1120 Hanson Asset Management, LP Russell Hanson 915-842-0111 Homes by Design Leslie Driggers Hoard 915-525-4765 Hunt Communities, LLC Kathy Parry 915-298-0490 ICON Custom Builder, LLC. Carlos Garcia 915-859-3713 Industrial Realty Group Incorporated Brent D. Harris 915-877-4300 JER Custom Homes, LLC Jorge E. Rodriguez 915-929-8420 Lloyd Hamilton Contruction Lloyd Hamilton, III 915-588-8558 Loyalty Homes Gustavo Loy 915-471-1894 M A Builders & Design, LLC Mustafa Ali 915-587-9566 Maravilla Homes Victor Robles 915-328-8599

Metro Homes, Inc. Judith Arrunada, Fernando Torres 915-538-2497 Pacifica Homes, Inc Juan Jose Vasquez 915-857-1855 Padilla Homes Misael Navarrete (915) 833-3839 Palo Verde Homes Edgar Montiel 915-584-9090 Pointe Homes Carlos Villalobos 915-790-1515 Porter Homes Albert Porter 915-833-3597 R.C. Baeza & Associates Robert C. Baeza 915-857-1818 R.E. Welch Contractor Gordon Welch 915-778-9977 Rassette Homes, Inc. Donald Rassette 915-585-3330 Rio USA Fredduy Klayel 915-526-2885 Rosewood Design and Build Brianna Barnes (915) 730-4747 Santana Custom Homes Fernando Santana 915-694-4256

Southwest Land Development Services Doug Schwartz 915-592-0290 Spanish Oaks Custom Homes Juan R. Saenz 432-238-3090 The Heritage Group David Bingham 915-598-6606 Trejo Construction Co Juan Trejo 915-637-5193 Tropicana Building Corp. Bobby Bowling IV 915-821-3550 Tropicana Development Greg Bowling 915-757-1802 Tropicana Homes Randy Bowling 915-821-3550 Tropicana Properties Demetrio Jimenez 915-755-9113 Uptown Homes Residential, Inc. Francisco Baquera 915-240-4996 Veliz Company, LLC Carina Popoca 915-219-4000 Will Harvey Development Will S. Harvey 915-584-8242 Winton/Flair/Accent Homes Herschel Stringfield 915-584-8629 Zia Homes of El Paso, LLC Preston Brown 915-490-9525

Appears Alphabetically by Service or Product

Bob Kotarski 915-833-0267 Citizens Loan Center Jim Easley 915-275-0715 First National 1870 Ernesto Avila 915-881-6702 Vantage Bank Josie Cantu 915-594-3404 Western Heritage Bank Kathy Carrillo 915-782-2400 WestStar Bank David Osborn 915-747-1640

L & P Building Supply Denise McConnell 575-527-8000 Foxworth Galbraith Lumber Dan Villarreal 915-779-7777

BATHROOM RENOVATIONS Rebath of El Paso/Las Cruces Lisa Walling 915-633-8101

CIVIL ENGINEERS Moreno Cardenas Inc. Roberto Moreno 915-532-2091

BRICK Acme Brick Company Brent Smith 915-859-9171

CONCRETE Oropeza Concrete Angel Oropeza 915-873-7391

BUILDING MATERIALS BMC Select David Quintana 915-218-5816 Boise Cascade Mike Flores 915-525-6037 DWS Building Supply Sabrina Voorhies 915-351-7300 E.F. Building Materials, Inc Efren Fraire 915-593-1301 El Paso Building Materials Ken Wade 915-549-1170 Franklin Building Materials Cristina Sheldon 915-855-3859 Simpson Strong-Tie Company, Inc. Ken Donham 505-991-4719 McCoy's Building Supplies Doug Danner 915-751-8261

CABINET MANUFACTURING J. B. Laminates Gina Rodriguez 915-886-5510 CABINETS Cabinet Masters Mike Robles 915-256-5012

CONCRETE & LANDSCAPING MATERIAL GCC Sun City Materials, LLC Antonio “Tony “ Chavez 915-565-4681 Jobe Materials, LP Charlie Tellez 915-298-9900 Mini Concrete Materials Joe Soto 915-852-4468 MTI Ready Mix, Inc. Tony Mullen 915-859-5767

CONCRETE ACCESSORIES & MASONRY-LANDSCAPE Border Construction Specialties Ricardo Yvellez 915-566-1688 CONCRETE WORK-POST TENSION J & H Concrete & Post Tension Jorge Herrera ‘ 915-581-3103

CONSULTING, COACHING AND TRAINING Senpai Training and Development Leonardo Corral 915-303-0743 CONSULTING/ENGINEERING LOI Engineers Bernardino Olague 915-781-1532 915-871-1190 CORPORTATE RETIREMENT PLANS Bukaty Financial Companies Group Ruth Rivera 512-796-1205 CPA Beasley, Mitchell & Co., LLP Brad Beasley 575-528-6700 James L. Ellis, CPA, PC Jim Ellis 915-593-7070 915-598-8631 SBNG, P.C. Tyler Smith 915-544-6770 Randall Smith, CPA Randall Smith 915-225-5200 915-533-8266 CREDIT UNION First Light Federal Credit Union Lorenzo Revelez 915-225-0581 GECU- Greater El Paso Credit Union Danny Galindo 915-774-4733 TFCU Yolie Melendez-Estrada 915-843-8328

CUSTOM PADS, LANDSCAPING, CUSTOM AQUARIUM, BUBBLE WALLS The Dorian Group/Ocean Gallery USA Miguel Angel Mercado 915-778-5111 DISPOSAL HAULING Demcon Disposal Management, LLC Ryan Robles 915-577-9477

DOOR SHOP/ MILLWORK SUPPLIER Trim Team Juan Hernandez 915-856-0791 DOORS Franklin Door and Trim Jesse C. Brown 940-210-0450 DUMPSTER RENTAL/SPRAY FOAM INSULATION 915 Siteworks, LLC Miguel Chavez 915-859-3713 ELECTRICAL CONTRACTORS Haskins Electric Charles B. Haskins, Jr. 915-629-9196 IES Residential Joshua Garnica 915-356-5644 Saldivar Electric, Inc. Martin A. Saldivar 915-778-7085 ENERGY STAR RATER Senercon Javier Ruiz 915-892-0547. ENGINEERING CEA Engineering Group Jorge L. Azcarate 915-544-5232. Conde, Inc. Conrad Conde 915-592-0283. TRE & Associates Linda Troncoso 915-852-9093.


2019Issue12 EXTERIOR PATIO PRODUCTS Modern Exteriors Hector Macias 915-857-5126 FIREPLACES/INSTALLATION Jack White Building Specialties Claudia Lardizabal 915-855-8630 FLOORING Bordertown Carpets Brian M. Abraham 915-522-8993 FOAM INSULATION New Era Foam George Tollen 915-861-6683 GRANITE/QUARTZ COUNTERTOPS Stone City Rocks Chris Baca 915-246-7614 HOME & AUTO INSURANCE State Auto/Association Insurance Solution Danner Bethel 512-203-2910 HOME FURNISHINGS Copenhagen Imports Flemming Carlsen 915-581-8897 915-584-7769 HOME WARRANTY 2-10 Home Buyers Warranty Leslie Schey 361-739-7739 Centricity Brent R. Morgan 800-749-0381X4790 Home of Texas Amanda Eason 210-540-7891 StrucSure Home Warranty Scott Whisenant 210-232-3947 HVAC A C Refrigeration, LLC Angel Cabrera 915-820-8503 Startech Heating and Air Conditioning Luis Procter 915-757-1982 Wolf Air Arturo Alcantar 915-694-8214 HVAC DUCTLESS MINI SPLIT Mitsubishi Electric Trane HVA 505-228-4264 HVAC EQUIPMENT Lennox Industries Brandon Walker 818-932-5063 Goodman Mfg. Jorge Guajardo 915-219-3896 HVAC SALES/INSTALLATION Belmont's Air Conditioning, Inc. Rafael Belmonte 915-778-7399 HVAC Supplies Hercules Industries John Chaney 915-778-9377 I T SUPPORT/PREWIRE All Tech Systems LLC Javier Terrones 915-777-2585 I T & WEB DESIGN Cognent, Inc. Martin Paredes 407-809-4417. INSULATION New Start Insulation Jose Carreon 915-256-2371 INSURANCE Bundle Bee Insurance Agency Victoria Dominguez 915-598-3500 Great American Insurance Group Julie Tomlinson 513-412-4921 Joe Bernal Ins. & Financial Services, Inc. Joe M. Bernal 915-542-0900.

BuildersOutlook INSURANCE - RISK MANAGEMENT HUB International Luis Rosas 915-206-6023 INSURANCE AND BONDING C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels 915-595-3393 IRON WORK PRODUCTS Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. 915-833-9494 LEGAL SERVICES/TITLE COMPANY David J. Ellis Fee Office for Sierra Title David J. Ellis 915-566-2666. 915-566-0111 LIGHTING City Lights Thomas Brown 915-533-6045. 915-533-6096 Designer's Mart Valerie Edmiston 915-778-9223 LIGHTING & BATH FIXTURES Ferguson Enterprises Inc. Albert Holguin 915-231-5836. 915-231-9357 LOW VOLTAGE WIRING Prewire of El Paso, Inc. Steven Drury 915-598-4937 LUMBER 84 Lumber Ernie Chavez 915-584-8447 MIRROR, SHOWER DOOR, STOREFRONT,AUTOMATIC DOORS & CURTAIN WALLS Performance Glass & Aluminum Hector Hernandez 915-592-5583 MOLDING & LUMBER Adams Moulding & Lumber Tom Swahlen 915-584-1440 MORTGAGE COMPANIES Cadence Lending Group Carolyn De Leon 915-779-1633 915-706-2649 New American Funding Tania Guzman Campaign 757-831-7322. Patriot Mortgage Randy Bowling 915-757-9500 Rocky Mountain Mortgage Company Justin Hahn 915-593-3111 Supreme Lending Lisa Wren 601-549-6768 Commerce Mortgage Stephen Sepulveda, Gilbert Pedregon 915-209-3189 NEW CONSTRUCTION EQUIPMENT & SUPPLIES ProCon Shane Davis, 575-524-1671 NEWSPAPER El Paso Times Sal Hernandez, Justin Riley 915-546-6244. 915-546-6406 PAINT DISTRIBUTOR Dunn-Edwards Paints Nathan Gordon 915-855-7535 915-855-8168 Sherwin Williams Paint Cruz Lopez 915-532-6921. PLUMBING Q Martins Plumbing Jose Martinez 915-240-5218. PLUMBING & IRRIGATION SUPPLIES-DISTRIBUTORS Baron Supply David Trammell 915-886-3697 Sun City Winnelson Dean Moore 915-532-1600 El Paso Winnelson Rene Goldfien 915-778-4640. W.W. Sales Eric Hoppes 505-463-8204

PORTABLE RESTROOMS Sarabias Blue Sanitation Monica Brown 915-544-9022. 915-533-3108 Porta- Jons POST TENSION Post Tension Steel Dennis Moore 915-474-0180. 915-532-0119 PUBLICATIONS Homes of El Paso Riley Stephens 915-585-1000 Su Casa Magazine Edwin Rosario 915-355-7190 PUBLISHING SERVICES Snappy Publishing, LLC Ted Escobedo 915-820-2800 READY MIX MTI Ready Mix, Inc. Tony Mullen 915-859-5767 REAL ESTATE SERVICES Team Juan Uribe, LLC Juan Uribe 915-479-5151. Home Pros Real Estate Group Penny Moore. 915-585-8806 Legacy Real Estate Services Patrick Tuttle 915-231-9994. Century 21 The Edge Scott Kesner 915-772-0553 Harris Real Estate Group Lane Harris 915-443-8423 Bella Vista Realty Grisel Ortega 915-491-2056 New Beginnings Real Estate Gordon Sather 915-241-6500 RES. & COMM BUILDING PRODUCTS Massey Johnson Josie Ledesma 915-487-3359 ROOFING MAK Roofing & Construction Felix Vizarreta 915-691-0532 Imperial Construction Alexandro Garcia 915-222-3838 USA General Contractors Javier Olmos 915-633-3339 ROOFING PRODUCTS ABC Supply Co., Inc. Larry Eck 915-533-0645 Eagle Roofing Products Scott Aguilar 928-220-3899. SANITATION & FENCE United Site Services Ramon Armendariz 915-330-2318

TILE & NATURAL STONE Floor & Decor Pedro (Peter) Ramirez 915-407-5599 Interceramic Tile & Stone Gallery David Holguin 915-593-7357 TITLE & ESCROW COMPANIES Del Sol Title Co. Hector Phillips 915-838-8000 Lone Star Title Co. of El Paso Andy Quintana 915-545-2222 Prosperous Title Janette Coon 915-288-2462 Sierra Title Company Angelique Roman, Marielsa Pulido 915-544-3322 Stewart Title of El Paso Cindy Bilbe 915-225-8200 WestStar Title Rachel Valles 915-849-5537 Texas Title Company Steve Raney 915-593-3400

11 El Paso Water Softeners Rebecca Estrada 915-307-9183

Jason Bates 915-833-3066 Sun West Windows and Glass Ernie Hernandez 915-383-2201

WATER REMOVAL Jimmy Garza Emergency Water Removal Jimmy Garza 915-562-1123

WINDOW TREATMENTS Gotcha Covered Sophie Soudaiha Agraz 915-201-4264 Southwest Décor El Paso Corporation Chris Matthews 915-594-9240 WINDOWS Pella Windows

TOTAL OFFICE SOLUTION SOURCE Spectrum Technologies Miled Daou 915-781-2000. 915-781-2288 TRUSS El Paso Truss Luis Mendiola 915-751-0025 Franklin Building Materials, Cristina Sheldon, 915-855-3859 UTILITY Texas Gas Services Maria Ortiz 915-680-7288

VEHICLE DEALERSHIP Rudolph Chevrolet Mike Ruffin 915-544-4321 WASTE DISPOSAL El Paso Disposal Irma Parsons 915-772-7495

T R E AT Y O U R S E L F Make the most of your next trip with a complimentary upgrade when you use coupon # UUGA037. Plus, receive up to 25% off base rates with AWD # G572900. Visit avis.com/nahb or call 1-800-331-1212.

Terms and Conditions: Offer valid for a one time, one car group upgrade on an intermediate (group C) through a full-size four-door (group E) car. Maximum upgrade to premium (group G), excluding intermediate SUV (group F). Offer valid on daily, weekend, weekly and monthly rates only. The upgraded car is subject to vehicle availability at the time of rental and may not be available on some rates at some times. All taxes, fees (including but not limited to Air Conditioning Excise Recovery Fee, Concession Recovery Fee, Vehicle License Recovery Fee, Energy Recovery Fee, Tire Management Fee, and Frequent Traveler Fee) and surcharges (including but not limited to Customer Facility Charge and Environmental Fee Recovery Charge) are extra. Optional products such as LDW and refueling are extra. Valid at participating Avis locations in the contiguous U.S., Puerto Rico, U.S. Virgin Islands and Canada. One coupon per rental. A 24-hour advance reservation is required. May not be used in conjunction with any other coupon, promotion or offer. Upgrade will be applied at vehicle pick-up time. Renter must meet Avis age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old. Fuel charges are extra. Rental valid through December 31, 2019. ©2018 Avis Rent A Car System, LLC

WATER SOFTENERS

HAVE YOU CHECKED YOUR RESTROOMS LATELY?

SELF STORAGE Remcon Self Storage Will Harvey 915-833-2399. SIDING, WINDOWS, PATIO COVERS,CARPORTS Modern Exteriors Hector Macias 915-857-5126 SOLAR PANELS Border Solar Javier Ruiz 915-613-4168 Solar Smart Living Larry Perea 915-400-2995

With flu season quickly approaching, it’s time to have your restrooms checked by a professional

STORMWATER/SAFETY ESS Environmental and Safety Solutions Jose L. Garcia Ramirez 915-775-1171 915-775-1174 SURVEYING ENGINEERING Barragan & Associates Benito Barragan 915-591-5709 TESTING & ENGINEERING CQC Testing and Engineering,LLC Jaime Rojas 915-771-7766

CALL TODAY! 915-307-3463 or 833-437-6776 Trusted by the El Paso Association of Builders


12

BuildersOutlook

MarketOutlook El Paso Builder Market Breakdown By the El Paso Association of Builders Market Intelligence Committee Here ius a collection of key housing market indicators gathered from industry expert sources. The El Paso Builders Association also puts out a monthly Builder Member Exclusive report detailing new home sales numbers that are not available through the MLS or any other research organization. If you would like to access to a detailed proprietary information be sure to join the El Paso Association of Builders to gain access to this EPAB exclusive market data.

El Paso Builders Assocation Health Benefit Program* *Medical benefits prrovided o under GSABA Health and We Welfarre e Plan

ONEDIGIT TA AL IS BUILDING BETTER BENEFITS

Our health program provides qualifying member companies an opportunity to save on their healthcare costs while striving to generate low renewal increases annually. The new program allows for more liberal underwriting and aggressive rating while providing a strong network, rich benefits and cost savings compared to the market. HEAL LT TH PLAN • Potential premium savings • Stable renewals • Lower deductibles

• Enhanced coverage • State mandated coverage • COBRA administration •T Te eledoc services

HUNTER BA AYLEY hbayley@onedigital.com | 713-299-6886

2019Issue12


2019Issue12

BuildersOutlook

13

That’s a wrap! The El Paso Association of Builders congratulates our 2019 Builder Member of the Year and our Associate of the Year. We also applaud our sponsors for making our Installation Dinner and Award Presentation an evening to remember! EPAB W A ARDS

9

12.13.201

f the Year:

ember o Builder M

es s, BIC Hom

rta

Sergio Cua

ar: te of the Ye

Associa

hing

Publis y p p a n S , bedo

Ted Esco

Diamond Partners:

MTI Ready Mix WestStar Haskins Electric

Platinum Partners: Jobe Interceramic

Condolences

Upcoming Events January 9 Board meeting 12:00 EPAB OďŹƒce

Gold Partners: Western Heritage Bank Texas Title

January 21-23 IBS Las Vegas, Nevada

o s a P l E f o Homes aso.com HomesofElP

Our deepest condolences to the Family of Jay Kerr on their loss and to Andy Quintana on the loss of his dad Manuel Quintana, Jr.

Beverage Sponsors Water Sponsor L & P Building Supplies

El Paso Disposal

772-7495

In Print & Online Full Market Coverage Promote Your Business TODAY! Since 1988 915.585.1000 Proud member of the El Paso Association of Builders

Showrrooom:

9400 Gateway East El Paso, TX 79907 (915) 593-1301 (800) 356-9546 www w..effb bmi.com


14

BuildersOutlook

WRITTEN INSURED

2019Issue12

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New Home Warranties • A Texas Warranty designed for Texas Builders • 10 Year New Home Warranties • FHA, VA & USDA Approved • Remodelers & Detached Garage Options • Options for General Liability, Builder’s Risk & More Texas Strong for Over 37 Years!

HOME O F

52103 2 32 3 3 35+.-) $,35 . 30 3 $,* 3 . $,3 3 - -

T E X A S

-) 3 3 4*(.3 3 $ .-,3 3 -$()4.3 3 $4.3 3 **-)("3 3 $,,3 * 3 31*-.

800.445.8173 ext. 2149 sales@homeoftexas.com • www.homeoftexas.com

BECOME AN EPAB MEMBER TODAY: • INDUSTRY ADVOCACY • MEMBER DISCOUNTS • NETWORKING

DESIGN WITH NATURAL GAS IN MIND.

• HEALTH PLANS

Nothing is more attractive to homebuyers than the right mix of comfort and value. You can provide both when you build homes that have natural gas.

• RETIREMENT PLANS

Natural gas furnaces, water heaters and clothes dryers offer greater efďŹ ciency and lower operating costs than their electric counterparts, and natural gas kitchens sell themselves.

• BUSINESS DEVELOPMENT

Let us help you plan for natural gas right from the start.

Call 778-5387 today!

For more information: ElPasoNewBusiness@TXGas.com William Nieves: 915-496-6126 Jorge Sejera: 915-680-7216 Please continue to direct service line and meter set requests to the Texas Gas Service

Builder Services atslimgas-metroElPaso@onegas.com slimgas­metroElPaso@onegas.comoror 1­866­206­9587. Hotline at 1-866-206-9587.


www.elpasobuilders.com

VOL 2019 ISSUE 12

BuildersOutlook

Insurance developed for builders.

PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS

Developed for builders with the backing of the strongest insurance carriers serving the Texas building industry, our insurance program offers flexible coverage options and rates that are more competitive than ever. As an authorized member of Builder Agent Network©, we’re dedicated to providing builders and contractors with the best-in-class insurance programs, pricing, underwriting, resources and service.

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • www.elpasobuilders.com

■ EXECUTIVE OFFICERS PRESIDENT Sergio Cuartas VICE PRESIDENT Edgar Garcia SECRETARY Sal Masoud EXECUTIVE VICE PRESIDENT Ray Adauto PAST PRESIDENT Edmundo Dena

Johnny Rodriguez, Lowe's Randall Smith, Randall Smith, Cpa Justin Hahn, Rocky Mountain Mortgage Angelique Roman, Sierra Title Ted Escobedo, Snappy Publishing Patricia Martinez, Stewart Title Henry Tinajero, WestStar Bank

Product Portfolio Highlights t “A” rated carriers, several available t (- PêFSJOH Doverage for property damage that results from faulty, defective, or poor workmanship in your work. t (- -JNJUT PG VQ UP . . . Bvailable t Expanded policy form for commercial projects t Builder’s Risk master policies, monthly reporting, annual and one shots t Workers’ Comp - Two highly cost-effective programs t ExDFTT -JBCJMJUZ GPS $PNNFrcial (eneral Contractors t $PNNFrcial Umbrella

■ TAB STATE DIRECTORS Randy Bowling, Life Director Sam Shallenberger Edmundo Dena Gus Loy Don Rassette Luis Rosas

■ COMMITTEE CHAIRS: ASSOCIATES CHAIR Luis Rosas GOVERNMENT AFFAIRS Sal Masoud GOLF TOURNAMENTS Sam Shallenberger FINANCE COMMITTEE Kathy Carrillo/Treasurer COMMUNITY OUTREACH Angelique Roman LAND USE Sal Masoud EDUCATION Patrick Tuttle INDUSTRY PROMOTIONS Ted Escobedo

■ NATIONAL DIRECTORS Bobby Bowling, IV Demetrio Jimenez

Honorary Life Members Rudy Guel Brad Roe Wayne Grinnell Don Henderson Anna Gill Mark Dyer Sam Shallenberger

■ ADVISORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr

HUB International Insurance Services -VJT 3PTBT 915-206-6047 www.hubinternational.com

Past Presidents Committed to Serve Don Rassette Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling IV Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling III Carlos Villalobos

■ BOARD OF DIRECTORS Builders: Jaime Gonzalez, Blue Sage Homes Lee Gillett, Classic American Homes Lydia Mlouhi, Crown Heritage Homes Dan Berry, D B Innovations,LLC Delton Deal, Deal-2-Deal Eder Gallardo, Edwards Homes Leti Navarrete, EPT Bella Custom Dream Homes Kathy Parry, Hunt Companies Samira Gonzalez, Icon Custom Home Builders Laura Loy, Loyalty Homes JJ Vasquez Pacifica Homes Trevor Turner, Rassette Homes Fernie Santana, Santana Homes Jacob Barde, Tropicana Homes Associates: Sandra Lucero, Builders Source John Chaney, Hercules Industries Luis Rosas, HUB International Jorge Herrera, J & H Post Concrete & Tension Joe Bernal, Joe Bernal Insurance Patrick Tuttle, Legacy Real Estate Service Aaron Rich, Lone Star Title

El Paso, Permian Basin and Surrounding Area

www.builderagentnetwork.com

EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization.

WHAT YOU NEED. WHEN YOU NEED IT. SERVICE YOU CAN COUNT ON

BMC products and services are designed to increase your productivity and support all-around excellence on the jobsite. No one in the industry has a portfolio that can match it. DISTRIBUTION SERVICES | TRUSS MANUFACTURING MILLWORK MANUFACTURING | READY-FRAME® DESIGN SERVICES | ROBUST WEBSITE BUILD EASIER | BuildWithBMC.com

NORTH HILLS

12121 DYER STREET | EL PASO, TX 79934 915.218.5800

LAS CRUCES

384 S. MELENDRES STREET | LAS CRUCES, NM 88005 575.526.9238


providing el paso a solid foundation to build on for over 30 years.

905 loma verde el paso, texas 79936 915.859.5767 www.mtireadymix.com


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