San Antonio Building Savvy August 2021

August 2021

San Antonio’s Homebuilding Industry Publication

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TERRY KEMMY

“ Te r r y i s s o c o rr ei ga itni vael when it comes to advertising properties in i n n o v a t i v e w a y s . We l o v e his creative thinking.”

TERRY KEMMY

Realtor ® terry0372@kw.com 210.844.1542

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[From The Publisher]

Kindness and Tolerance are

Tested in Unprecedented Times On that note, kitchens truly are the heart of a

experienced as we have sought to fight it. There

home, perhaps more so now than before as we

have been numerous news stories about unruly

enter the current timeframe that is we’re seeing

airline passengers acting out, fighting with each

the beginning to be referred to as “post-pandemic.”

other and members of the flight crew. Much of

The discussion on appliances continues with our

it seemingly stems from refusing to obey federal

Savvy Special Report on laundry equipment. As

regulations such as mask-wearing—just one of the

the pandemic subsides, to say that people are

societal issues with political overtones that fans

still on edge is an understatement. About those

the flame over differences of opinion that people

appliances we write about—months of lead time

stand ready to tell us all about.

is the norm for ordering them, and like so many other items on the spec sheet, we’re seeing

There are times when “firing a customer” may be

appliance prices significantly rise.

the right decision. At the same time, it is important that we never forget the value of a customer

No one in the homebuilding industry is immune

and the need to preserve the art of customer

to the tension we’re feeling in this unusual time.

service before it becomes a lost art entirely. In

While home buying demand is usually a good

this season, we thought a Sales Savvy article on

thing for our industry, the multiple offers, low

customer negotiation tips was appropriate. While

inventory, material delays and rising prices add

negotiation requires that both sides of the party be

more stress to the already stressful process of

reasonable, which isn’t always the case, the winner

building or remodeling a home. Add together all

will be the one that stays calm and professional. A

the uncertainty and tension unique to this time in

successful outcome comes from understanding

styles, from “bigger is better”

history and pile those onto the normal emotions

the negotiation process—and that is one thing that

to “smaller, more efficient use

that a major investment or a move causes in

has not changed since the time when this article

of space is best.” If you look at

normal times, and it’s not surprising that builders

was first published in Building Savvy years ago!

why things shift, it is usually

are reporting bad customer behavior—something

due to what else is going on

that also appears to be a widespread side effect

Thank you for allowing us to be your eyes and ears

of pent-up anxiety and isolation.

for news and trends in our essential industry.

Through the years, we’ve seen the pendulum swing from opulent to minimalist home

in the world. Truly, homes reflect their occupants’ need for celebration and reward at

Psychologists contend that extreme examples

certain times, and for peace,

of bad behavior are explained by the fact that

Terry Kemmy

we are all more traumatized than we realize by

Publisher

the virus and all the changes that our world has

210.844.1542

serenity and protection during others.

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[Industry News]

B

ack in 2010, then Mayor Julian Castro announced that the next ten years would be known as the “decade of downtown.” The plan was to build 10,000 housing units in the inner city, a combination of apartments, multi family,

and single-family houses. He said that it was easy to build in the inner city because you, meaning builders, have everything you need available to you.

By Jim Leonard StrucSure_BuildingSavvy_Augustl2021.pdf

The city would create incentives for builders through fee waivers such as SAWS impact fees, and permit fees from Development Services. The city even created a zone known as the ICRIP, comprised roughly of the area inside Loop 410 that was in need of new housing and, dare we say, gentrifying. Even permits in the ICRIP would start with the letter “I” so that it could be flagged and anyone at the city would know to give extra effort to whatever you needed. So on paper, everything sounds great, right?

The waivers would apply to houses that were priced below a certain range as the city was targeting families that had incomes at or below the Area Median Income for Bexar County. To qualify

C

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Y

CM

for permit waivers the home had to be priced below $110,000 as that was what someone calculated that the typical family earning

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CMY

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below AMI could afford. As costs of materials rose, the price point rose as well until it where it is today, which is $225,000.

In 2010, the area near downtown that was growing the fastest was Southtown. There was lots of remodeling, new construction, both single family and low-rise condos. Steve Yndo was one of the first to begin repurposing what had been industrial building into condos. Young people and empty nesters flocked to these properties. The NRP group was building apartments in that area.

But after a few years, pricing became very high and people were looking for the next place to go for affordable homes.

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6/22/21

7:36 AM

That area was the east side of downtown. Long known for

lot be I-1? Happens all the time. The city originally zoned it that way.

dilapidated housing stock and high crime areas, young people,

All of the existing homes are grandfathered from the industrial zoning,

who figured time was on their side, began the buying spree. I can

but if you want to build a single-family home, you will need to apply for

remember building a home near the Hays Street bridge in 2014 that

a zoning change. This means meeting with the neighborhood group

the buyer paid $11,000 for the lot. During construction, a lot came

and getting their approval. Then you will need to inform the zoning

on the market down the street for $55,000. I thought the owner was

commissioner in that district of the change and report how it went

insane but little did I know this was the start of a pricing boom for

with the neighborhood group. The city will send out notices to any

that area of town. Today if a lot can be bought for under $75,000 it is

property owner with 200’ of your property and ask for their comments

sold within hours of going on the market.

on the proposed change. If they object, getting the change may be a little more difficult even thought the only thing that makes sense to build there is a single-family home.

But there are a number of challenges building on that side of

You then get on the planning commission agenda, followed by the

town. For one, the lots are very small and there is no place

zoning commission, and then to city council. You better plan on attending all the meetings in case anyone is there to speak against it

to stage materials. Many lots are as narrow as 25’. The city

or if anyone has questions to ask about your case. The fee to apply

had to relook at its zoning categories to build on these size

for a zoning change is $800. You will also likely need a certificate of

properties. R-2 and R-3 designations were created to handle

determination if you are unable to find a plat or if the plat is older than

smaller lot sizes.

1927, which I have come across many times, especially in the CRAG, the original 36 square mile area of the city of San Antonio. Also factor into all this that it will take 3-4 months for all of this to get done. If you are successful, congratulations. You are now ready to apply for a

You may acquire a lot that is in the middle of a street of single-family

building permit.

houses but it is zoned I-1 or industrial. You’re thinking how can this

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[Focus Section]

Kitchen Design 2022: Meeting the needs of culinary- and tech-obsessed homebuyers

By Beverly Smirnis

The modern kitchen has evolved to become more than a space for preparing food. Having ample kitchen space is a must, along with more opportunities for customization— whether the owner is into gourmet cooking or specialty baking, or fancies him or herself as a coffee barista, wine connoisseur, or signature cocktail maker.

Post pandemic, more individuals are still doing at least some of their work remotely. While a “hybrid” schedule may mean they won’t be spending quite as much time at home, homeowners don’t appear to be moving backwards in what they demand of their homes or any less intentional about how they will use their space to live full lives.

The traditional kitchen triangle work zone comprising the sink, refrigerator and range is changing. The experts say that at least one kitchen zone should be dedicated to work—whether it’s where the professional powers up the laptop to start the weekday mornings near the coffee center or the homework hub for the kids after

BLANCO’s modern design, dual-spray control faucet has a powerful pull-down sprayhead –

school. Following this trend, multi-

concealed within its graceful, gooseneck spout. With a convenient swivel of 190 degrees,

functioning extra-large kitchen islands

this faucet can easily clean every corner of the sink.

are a must-have. Double sinks and walk-in pantries remain among the most desired features in the modern kitchen, according to NAHB research.

Consumers are investing in pro-style appliances and specialized gadgets like pasta makers, sous vides and bread makers.

The jury is out as far as finishes go Stainless steel appliances are still the top choice, but buyers looking for more customization may be interested in statement ranges, which are also trending. Others seek the totally integrated look.

For faucets, matte and brushed finishes in stainless steel or black lead the trend. Ventilation hoods have transcended beyond being a practical necessity into another decorative focal point in the kitchen. Like appliances, you may choose to go with a signature range hood--perhaps a luxe copper design or a ceiling-mounted chimney style, recess it into a custom built wood mantel, or find a creative way to make it part of the architecture.

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The name of the game for ovens is sizing to suit, multiple cooking modalities For baby boomers who are downsizing, the right sized appliance is compact but functions with all the same capabilities and options as those found in a premium full sized kitchen.

Other buyers seek an oven that is maximum in every way-- from range cavity size to BTU output. Whether big or small, units offering multiple cooking modalities in a single unit are also all the rage. Gas and induction cooking methods are nearly equal in popularity, with induction expected to replace traditional glass electric cooktops. A number of manufacturers now offer both convection cooking and steam cooking in a single unit.

Capturing two 2021 Best of IBS Awards in the Home Technology and Indoor Product categories, Signature Kitchen Suite offers the only 36-inch dual-fuel pro range with builtin sous vide functionality – in addition to induction and gas – all on the rangetop. It is engineered to be installed without the need for a separate and expensive make-up air system, as it stays under 39,000 BTUs, making this ideal for installations in urban homes or luxury high-rise buildings. With the potential to significantly save builders costs on ventilation, this is a true game-changer for the industry.

On the other end of the spectrum, Italian appliance maker Forza offers the world’s first 48” range with single-cavity oven with 7.8 cubic feet in the range cavity and over 40-inches of clearance, it can cook two Thanksgiving turkeys side by side. To bring the outdoor barbecue trend indoors, the MaxRotisserie accessory is a 33-inch motor-driven rod that can rotate a LG’s InstaView side-by-side refrigerator has

whole goat, lamb or small pig for multicultural cuisines. With 18,000 BTU, it heats the oven

an InstaView window that allows you to knock

cavity evenly from edge to edge, eliminating cold spots and maximizing the heating area

twice to see inside without opening the door.

The oven goes 0 to 400°F in 8 mins and tops out at 536°F in 20. It’s range features Forza’s

It features a UVnano water dispenser that kills

proprietary MassimoBlu™ Hyper Double Broiler—the industry’s only blue-flame double broiler

up to 99.99% of bacteria using ultraviolet light

and the Infinito™ Grate System—a continuous grate system with an integrated bullnose,

on the dispenser nozzle. Linear Cooling, Smart

utilizing edge-to-edge cast iron grates. With four 12,000 BTU full brass burners in the back

Cooling, and Door Cooling+ work together to

and four 20,000 BTU dual flame full brass burners in the front, it has 128,000 BTU of total

extend the life of produce and help keep all

cooktop power.

foods fresh and flavorful.

Forza, shown in Radicale Red, offers the world’s first 48” range with single-cavity oven with 7.8 cubic feet in the range cavity and over 40-inches of clearance.

Refrigeration: When it comes to food preservation, one temperature does not always fit all Creating a suite of complementary refrigeration and freezer appliances, or appliance columns, is a trend that provides food storage flexibility, yes, but it also accomplishes much more. Today’s homeowners are sensitive to the fact that more than one third of the world’s food

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production is lost to waste every year. While food producers

pounds. It comes in stainless steel and black stainless steel finishes and has

go to great lengths to ensure the food we buy is fresh when it

built-in Wi-Fi that lets you set the ice-making schedule via an app.

reaches the grocery shelves, it takes the right refrigeration and knowledge of how to properly store food and ingredients to make a difference in reducing food waste. Modern refrigeration makes it easier to store every type of food ingredient at its optimal temperature and humidity level – locking in flavors, texture and

Miele’s CM6 MilkPerfection countertop coffee system allows you to control the quantities of water, milk and froth at any point in the preparation. You can also store your preferences in a user profile, so your significant other will magically know exactly how you like your morning caffeine.

micronutrients.

Luxury appliance brand Signature Kitchen Suite has earned the reputation for bringing groundbreaking innovations to market, and its 24-inch built-in undercounter convertible dual drawer refrigerator is no exception. Homeowners will enjoy unmatched flexibility with dual convertible drawers that operate independently of one another. Users can select from six temperature zones including Pantry, Fridge, Bar, Seafood, Meat and even a setting to convert each drawer into a freezer.

Pantries are a Top Priority Ultimately, the pantry serves as the problem solver of the kitchen.

Homebuyers are happy when their kitchen counters are clutter free. Walk-in pantries are listed as the 7th most wanted feature by homeowners according to the NAHB HMI survey. Installing a countertop in the pantry makes unloading the groceries easy.

For more counterspace and a clean, seamless look in the kitchen,

The KitchenAid® SmartOven+ 30” Combination Oven with Powered

consider designing the pantry to house some of the countertop

Attachments enables grilling, stone cooking and steaming. The steamer

appliances (including the coveted gadgets listed below), and be

attachment can also be used with the Steam Assist mode to create a

sure to add plenty of electrical outlets. Ideal shelving would be a

humid cooking environment ideal for baked goods, breads and roasts.

combination of adjustable shelving along with some solid wood

The mobile app allows users to remotely monitor and control the oven,

shelving to allow for storing and protecting of valuable dishes or

suggest when it’s time to tend to the food, or enter cooking instructions

family heirlooms such as china without the worry of it toppling

and save them for next time.

over.

The Drink’s The Thing Now that people have had time to practice up on their culinary and bar-tending skills, home entertainment is even more the rage, and specialty appliance options are here to support the habits.

Plum’s integrated wine dispenser offers a sleek design and the ability to hold two opened bottles of wine for up to 90 days so you can have a glass of wine at the touch of a button. Using artificial intelligence, it also automatically identifies varietals and chills the bottle to the proper temperature. Dacor also makes a 24-inch integrated wine dispenser that implements argon gas technology to store four open bottles for up to 60 days without a loss of flavor.

GE Profile’s Opal 2.0 nugget ice maker lets you have “good ice” at home for your cocktails or mocktails. Designed to fit on

A fingerprint resistant finish, three adjustable racks, large capacity,

countertops and low enough to clear cabinets, the device makes

quiet operation and dishes that come out clean the first time are the

one pound of chewable nugget ice per hour and holds up to three

qualifiers of a great dishwasher like the latest one from Whirlpool®

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Make it a Comfortable Retreat Use cushier seating, make it easy to clean, put some thought into clever clutter-reducing design, add some mood-inducing lighting, art and music. The kitchen is indeed the new family room!

Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for builders association parade events across the country.

Signature Kitchen Suite’s wine column refrigerators interact with a Signature Sommelier app to manage your personal collection with photos of labels and notes on shelf placement.

The app can even learn your preferences to make pairing recommendations.

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[Sales Savvy]

RULES OF ENGAGEMENT:

Negotiate with the Best of Them

I

n Texas, a builders’ decision to exercise the “termination for convenience” clause in the building contract made recent news headlines. Termination for convenience clauses in building contracts give either party the right to terminate the contract without a default as long as they act in good faith. The builder cited that the buyers had become too difficult to work with, even to the point of being combative in demanding unreasonable changes and fixes.

While in today’s environment, the builder was able to quickly resell the home for a higher price than the original contracted amount, most would agree that, while having this language in the contract is a good risk management tool, exercising the option to use it should be a last resort.

We chose to rerun this article with Paul Evan’s tips for negotiating as a timely reminder that might prove helpful in these times of unequalled challenges and unusual circumstances that our industry finds itself in.

By Paul Evans

Some people might think that negotiating is arguing. That is

Do your homework before you start off on any negotiation. Get as much info on the issue and the current situation that you can. So

entirely wrong! At the end of any successful negotiation, there

armed with the facts, you are ready to meet with the customer and

must be a Win-Win resolution.

work out any differences.

Here are my HOW TO’s for negotiating sticky issues

Make sure that all parties are present and in a cooperative state of

with customers:

mind. Don’t meet separately with the husband and wife. Get them both to the table. Start the meeting off with small talk to find out the mood of the day. If they want to get right into it, you will need to be on your toes, because it is a real issue with them. Once you know the tone of the customer you will then know where to head next.

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Listening and asking the right questions is critical.

Listen carefully to what the customer is saying to formulate the questions you need to ask next.

Always remember what you learned in your research about the situation and formulate that in your questions. Consider what you are now hearing from the customer and from what you know about the situation and form the next question. Most of the time you should preface each question with, “Let me make sure I understand. You want the house painted green and we have painted it white per the contract?”

Just that statement alone will get the party started.

Find common ground. “Now I understand that you like the color white and that you knew it was in the contact. Is this correct?” This is common ground that you want to clarify and make sure that both sides are in agreement about it. Common ground is a stepping stone to the next question. “So since we painted the house the color in the contract you understand that there will be a cost in re-painting the entire house?” or “Since you like the color white, what if we used your new green color as an accent?”

These common grounds checkpoints can make the Keep an open mind. Consider the possibility that the facts as

process flow and keep everyone confident that you are trying to be

you saw them may not be the reality. This is not to say that you

a team player. They need to understand that you are not the enemy

shouldn’t make sure you get your point across as well. Just do not

here; while you want to please them, they have to do their part in

be so stringent with your point that you don’t hear both sides, nor

remembering the last paragraph in the business book: You must make

should you be so accommodating that you fold at the onslaught.

a profit to stay in business.

Remember one rule that needs to apply: If you give up something,

Finish with a closing statement. At the end of the negotiation, you

you must get something of equal or greater value in return.

will use the common ground you established to frame your “closing

Stay calm and on task. Studies have shown that the person that

statement.” Whether you have a conclusion or not, you must have

stays calm in any situation wins at the end. Some people will get

a closing statement to get a “yes” answer in agreement of where to

easier to work when you calmly respond to anything that comes

go from there. If you don’t have a final conclusion yet, at least you

up. Be polite but steadfast in your comments. Always stay on task

now have a starting place for the next meeting. “So let me make

and on point. If the conversation veers off task, bring it back. Don’t

sure I understand where we need to go from here…” Recap what has

combine issues unless they are related. The issue that you have

been accomplished, agree and get them to agree to consider some

with the faucet in the master bath has nothing to do with the issue

resolutions, and set the next meeting to decide on a solution.

about the color of the house not being green.

Get a verbal then a written statement on what was decided. Now is

Speak in layman’s terms. Remember also that you are the expert

the time to get a Yes or No. You want to first get a verbal agreement.

in your field and that not all folks will understand what certain terms

Then once back at your office, follow-up with an e-mail to state the

mean. I was with a salesman one time making a call when he asked

outcome of the negotiation and what was agreed upon. Always put it

the homeowner what type of material that he wanted to use as the

in writing. A simple email might be OK for something small as long as

soffit of the house. I saw the customer had a funny look on his face.

you get a reply of agreement back from the other party. Larger items

The salesman caught that the customer didn’t understand and said

may need to be addressed with a contract or change order signed and

I am sorry, I meant the material running horizontally between the

agreed upon by both parties.

frieze board and the fascia. Now if the customer was lost on soffit,

Follow up after the transaction is completed. The follow up needs

then he was thoroughly lost on the rest. Make sure the customer

to be both verbal and in writing. Make a phone call to say the task

understands what you a saying or meaning.

15

is completed, and then send an e-mail stating that it is done. The

and an arbitrator. A mediator will moderate the negotiations and help

verbal and written completion needs to include the original agreement

both parties come to a mutual agreement, whereas an arbitrator will

statement: “Ms. Jones, thanks for the opportunity that you have

make a ruling, which is usually binding as well. If the customer insists

entrusted in me to complete said project. As you remember, this

on an arbitrator and won’t go the mediator route, then you might as

project was to re-paint the east and west side of your home in the

well just go to court. An arbitrator is less costly than the court system,

green color #1234. Attached is my invoice showing completion of said

but it is just one person making the call instead of 6 or 12.

project. Please acknowledge that you received this invoice. Thanks again for the opportunity.”

Negotiation can be used with any situation-- from your son wanting a new baseball glove to a $100 million buyout. Stay true to the process.

Send an Invoice. Even if you negotiated to change something out

If you miss a step, it will jump up and bite you at the end! The process

and involving no exchange of money, don’t conclude that no invoice

can take 20 minutes or 20 days, but the process must always stay the

is needed. Follow the same procedure. Invoice for zero dollars owed.

same.

Fill out your invoice as you always would, including the overhead costs and any fees that would normally be on the invoice. Then zero the invoice out and add, “Thanks for your business.” If you have one of those customers that accuses you never giving an inch on anything, you can gracefully remind them of all the “zero balance invoices.”

R. Paul Evans CGA, CAPS, CGP is a native Texan with over 40 years in the construction industry. He is the VP of Millwork, Growth & Innovation for Builders First Source/BMC. Paul has been an instructor with the NHBA University Housing for over 15 years and is one of only a handful of

When you do need to invoice them for something, they won’t be surprised about the overhead or supervisor charges included on the invoice.

Master Instructors for the NHBA in the country. He travels the country teaching Sales & Marketing, Customer Service and Negotiating Skills and has authored numerous articles and published three books on

If all else fails. It would be naïve to think that there is never a time

these subjects. Paul is also a voting member of the ICC, is licensed as

when you and the customer will come to an impasse, and you and/

an engineer in Texas and Louisiana and holds GC licenses in 17 states.

or the customer feel the need to bring attorneys into the discussion.

Paul also owns and operates a fully sustainable farm and is a licensed

If there is no way to find a workable solution, try to go through a third-

professional race car driver.

party mediator first. Understand the difference between a mediator

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THE DESIGN, CONSTRUCTION, AND FINANCING OF A NEW HOME SHOULD BE SIMPLE, EFFICIENT AND STRESS FREE. SCOTT THOMAS - 210.422.2114 Thank you for coming up to the closing, treating me to dinner, providing great conversation, new relationship opportunities...what can I say...there’s hope for humanity yet!" ~ Brian Miles, Homebuyer

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Serving San Antonio and the surrounding area since 1999!

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INCREASE D

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V I S I T G U I D O C O . C O M T O S C H E D U L E Y O U R F R E E R E P L A C E M E N T E VA L U AT I O N

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[Savvy Finance]

Six Early Moves for Family

Business Succession

By Steven Bankler, CPA

T

here is only one certainty for business owners: You won’t be able to stay at the helm forever. You’ll exit,

Get planning. The most recent PwC Family Business Survey found

either by choice or by circumstance. Some business

that families who run businesses together have fallen woefully

owners prepare years in advance for that day, but

behind on having important strategic documents in place. Only

family business owners don’t often have such a clear

47% have a shareholder’s agreement, 19% have emergency and

vision in place.

contingency procedures, and 18% have entry and exit provisions.

Overlooking a smart exit plan can lead to high taxes (sometimes 40% of

Don’t forget the “business” part of the family business. Have a

the sale—even to heirs) or worse: a sudden dissolving of the business

smart exit strategy that includes the plans above and other tools

you worked so hard to build. Here are six ways to change that potential

like a buyout agreement.

outcome for your family business:

18

Separate your business from your personal life. Do you know how

Avoid this by understanding the difference between capital gains and

interconnected your business and personal assets are? Find out.

ordinary income. A sale price that looks better than another on paper

Too many family business structures don’t provide optimal asset

may end up hitting your wallet harder come tax time. And if you think

protection between the company and family. A good structure can

you can avoid a tax bill by gifting your business to your heirs instead

also establish order and governance, which can, in turn, cut down on

of selling, think again. That decision could cost you both dearly,

family disputes over business decisions.

depending on several critical factors.

Get your house in order too. Tend to your personal estate plan. Only

Stay ahead of changing tax laws. Capital gains, estate, and other

34% of small business owners have a will (the most basic building

taxes are changing under the current Biden administration. Each of

block). Neglecting an estate plan can lead to higher estate taxes and

these tweaks could result in thousands more in taxes if you don’t

other problems. For instance, not naming a power of attorney can tie

plan accordingly. If ever there was a time to evaluate your exit plan,

up your finances for heirs who need it to run the business, and lack

business structure, and estate plan, it’s now. Few plans that made

of a written plan may keep the keys to the business away from those

sense over the past four years will still make sense by the end of 2021.

who need them (while the courts decide what to do).

Passing a business down to the next generation is easier said than

Be honest with yourself. Passing a business down to family is

done. For the business to survive the transfer, be mindful of the costs

so complicated that most don’t succeed. Too often, heirs are

and plan ahead. The next generation will thank you.

uninterested in or incapable of running the family business. “Passing the legacy of a successful enterprise to children can be one of the

Steven Bankler has more than 44 years of experience in the accounting

greatest thrills of a parent’s life,” states our colleague John F. Dini,

industry. Steven’s expertise lies in consulting, planning, tax, and asset

an exit planning consultant and coach. “When the kids don’t cut it,

protection as well as exit strategy services for closely held businesses. He

however, it is wise to face facts and plan accordingly. Glossing over

also provides litigation support (both as a testifying expert witness and a

the issues will inevitably lead to more pain down the road.”

consulting expert), business negotiations and estate planning. Visit www. bankler.com for additional tax strategy tips and to learn more about Steven

Have a good sale strategy. Remember that business owners can

Bankler, CPA, Ltd.

owe more than 40% of the total amount paid for the sale in taxes.

Your customer wants a home built for the world of today – and tomorrow.

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[Savvy Builder]

JOURNEY HOMES

A FAMILY AFFAIR

F

rom the moment they purchased their lake house on Canyon Lake 20 years ago, Journey Homes founders Ken and Bonnie Wickens have dreamed of moving their family to the Hill Country. So many memories were created over two decades of lakeside summers, holidays and birthdays that they knew they would eventually lay down roots here.

The Wickens’ come with over 45 years of experience in real estate, home building and land development. For over 25 years, they owned and operated a very successful home building company in the Houston area, building over 2500 homes and office buildings.

They envisioned their move to the Hill Country as a well-deserved retirement from the daily grind of homebuilding. Ken and Bonnie could see themselves finally slowing down, spending time with their grown children and of course the grandkids.

Their daughters Randi McCrary and Ashley Fenter, however, had other plans.

Randi had already settled into San Antonio years ago, was busy raising kids, while her husband Nate worked at USAA. Growing up at her father’s knee – watching him draw up plans and proposals, and then interact with homebuyers – she fell in love with construction. Ashley did too.

These sisters realized at an early age that they wanted to create their own construction business.

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In less than three years Journey Homes has created something very special … a very diverse, flexible and reputable family building enterprise. They first started out building four spec homes, priced between $380K and $450K. But like their website states.. “we design homes that are built for whatever stage of life you’re in.” Depending on the communities they are developing and building in they’ll work with first-time homebuyers, or clients with slightly larger budgets for semicustoms, to those wanting a luxury home (like their award-winning Estate Series entry in the recent GSABA 2021 Parade of Homes).

At its core, Journey Homes is a family-first company. They strive to

“I remember discussing plans – as a family – to

build homes that nurture and embrace the spirit of family, in whatever

start a Hill Country area home building company,”

season of life their client families are in…downsizing, expanding,

recalls Ashley. “Randi was already here, and I

wanting something more custom and luxurious, or anything in between. Their motto “Built for Whatever Comes Next” rings true in

was in sales for a Houston builder. We were both

every home they build.

convinced that the construction market around San Antonio and Canyon Lake was much better than Houston.”

Randi was tasked with, among many things, setting up and developing relationships with vendors, suppliers, tradesmen, lenders and developers. Not an easy task by any means. Ken had several longstanding relationships in Houston, some of which he brought to the Hill Country.

So the sisters convinced their parents to not only move over sooner than planned, but to help them gear up for growing a whole new home building company…and putting the leisurely retirement plans on the back burner.

“The original plan was for Ashley to move over from Houston in about the third year,” says Randi. “But once we got the Regent Park project, I knew I needed to pull the trigger ASAP.”

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Another key “family” component of Journey Homes are their subs, suppliers and trusted partners. Here’s just a few comments from some of them:

“Their attention to detail is remarkable. And I love their family dynamic… with each other, working as a team, but also with their vendors and partners.”

Angie Hicks, Old Republic Title “Journey is one of my favorite builders. They trust me and respect me for what I bring to the table, and I think they are probably that way with most Some of the special features homebuyers will find in nearly all of Journey Homes are:

of their other vendor partners. They all work very hard and want to be proud of the finished product.”

Amy Bastion, InterLinc Mortgage

»

Large, covered patios

“Family unit comes to mind. Everyone working together and being

»

Master suite separate from other bedrooms

something the entire team can take pride in.”

»

Video doorbells

»

Programable thermostats

“Randi reached out to us years ago because she wanted to protect her

»

Open concept plans with high ceilings

meeting with a prospective buyer, the entire staff delivers professionalism,

»

Oversized garages with wider, taller doors

“Being diverse and at the same time being flexible

respectful. They all want their homes (whether they are big or small) to be RoAnn Sitka, Benedettini Cabinets

clients from any uncertainties. And they do just that. From the very first quality craftsmanship and impeccable customer service. It all adds up to a premier builder with true integrity.”

Scott Whisenant, StrucSure Home Warranty

enough to readily serve a wide demographic is important

“They are very detailed-oriented, and extremely patient with the

because conditions and markets always change in this

homeowner. The Bourns are very hands on during the entire process,

industry,” says Ken. “I’m very proud of our two daughters

taking nothing for granted.”

Randi and Ashley and how well they work together. Randi

Marcus Owens - Pella Windows

had to research and find all new vendors and suppliers and build those initial relationships. And when Ashley moved over from Houston, she took over all of sales and most of our product marketing. They are a perfect team in that they balance each other out.

“Randi and her team have been a pleasure to work. They are very competent and it’s great to collaborate with them and to see their creativeness come to life.”

Noe Deras, AMS Group (Magnolia Doors)

“Building homes was never a job to me,” Ken continues.

“It was a life Bonnie and I shared together. And now to see two of our children step up and learn this business and grow our family enterprise is extremely rewarding.

We work hard, but we’re having a blast doing it. It’s incredibly special.”

“Hopefully we’re building a legacy to pass down to our children,” adds Randi. “Ashley and I have always wanted to do this. We share the same passion but have complementary strengths. It’s really awesome.”

22

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210.494.3434

[Savvy Special Report]

The Latest for the

LAUNDRY ROOM The Whirlpool® 24” Smart All-In-One Washer & Dryer For households with smaller loads or less space, the all-in-one appliance can be installed virtually anywhere thanks to its slim, ventless design. The Load & Go™ Plus dispenser lets you skip detergent and fabric softener refills for 20 loads. Laundry can be done from a smartphone, and the Whirlpool® app lets you set, start or pause the wash and dry cycle and track progress when you’re away.

Maytag® 5.2 cu.ft. Smart Capable Washer & Dryer with Extra Power button The Heavy Duty wash cycle with Extra LG’s STUDIO WashTower and Styler look beautiful and treat your clothes with the

Power button on Maytag’s newest combo

utmost of care.

boosts stain-fighting performance on any wash cycle with a dual-temperature wash. The 24-Hr Fresh Hold® option helps keep clean clothes smelling fresh for up

Whirlpool’s® 5.0 cu. ft. Smart Front Load Washer and Dryer Consumers can fit more in a single load with this large capacity front load washer at 5.0 cu. Ft. The Load & Go™ XL Plus dispenser allows you to skip steps. Simply add detergent and fabric softener once and skip refills for 40 loads. You’ll even get notifications when it’s time to refill.

to 24 hours after wash cycles end. When heavy jeans get mixed in the dryer with thin shirts, push the Extra Power button to help get thick fabrics, pockets, hems and seams drier the first time. With additional

Tell the Whirlpool® app to start the washer so clothes are ready for the dryer when you

power from the industry-exclusive extra

get home. The touchscreen learns, adapts and suggests customized presets based on

moisture sensor, Advanced Moisture

your family’s routines and can create and save up to 30 of your own favorite cycles for

Sensing monitors inside moisture and

even more customized care.

air temperatures to help evenly and

The dryer includes a dryer rack that attaches inside the stainless steel drum for tumble-

completely dry heavy loads.

free drying of bulky or delicate items. When drying ends, the ENERGY STAR® certified

Monitor and control your appliance

electric dryer’s Wrinkle Shield™ Plus option with Steam helps release and prevent

when you’re away from home with smart

wrinkles using tumbling and steam for up to 150 minutes after the cycle ends or until

washing machine and dryer features.

you open the dryer door.

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Remotely start or stop your appliance and get end of cycle

an innovative heat pump drying system, clothes are dried economically by

notifications so no load is left behind. Troubleshoot select issues

recycling heat from the hot air that is normally left to escape.

to avoid unnecessary service calls and help ensure dependable performance. Get personalized tips to help you best clean your clothing and maximize the power of your Maytag® appliances.

LG ThinQ app allows users to control and monitor LG Styler’s functions allowing you to start and stop cycles and receiving status updates. LG Styler can also automatically set the recommended cycle and options on its own via WiFi.

Extra Power buttons on the Maytag® 5.2 cu.ft. Smart Capable Washer & Dryer set give large loads stain-fighting performance on any wash cycle and gets thick fabrics, pockets, hems and seams drier the first time.

LG STUDIO WashTower A convenient Center Control panel with both washer and dryer controls is positioned in the middle so it’s easy reach. AI sensors detect fabric texture and load size, and then automatically select

The Whirlpool® 24” Smart All-In-One Washer & Dryer offers great

the right wash motions, temperatures and more. With Smart

convenience and a space saving solution.

Pairing™, the washer tells the dryer the right compatible drying cycle.

Both the washer and dryer have a black tinted-glass door with

25 Years in Business • Specialize in level 5 finish

decorative chrome elements. Made with highly durable tempered glass, the doors are more resistant to shock and scratching and help to keep WashTower looking new for longer.

WashTower owners will enjoy greater peace of mind with LG Proactive Customer Care. The industry-first personalized customer support tool provides customized maintenance tips, monthly usage reports to keep appliances performing their best, and alerts that warn of potential issues before they arise – at no additional cost. Plus, the LG ThinQ app enables users to start or stop the laundry, check remaining cycle time, or get notifications directly on their smartphone.

LG STUDIO Styler The LG Syler is a laundry room innovation that helps consumers cut down visits to the dry cleaner, save time, and money, all while keeping them looking their best. It can accommodate up to five garments on its Moving Hangers as well as a pair of pants on the inside of the door,

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[Savvy Spotlight]

Noe Deras

The AMS Group / Magnolia Doors AMS Group / Magnolia Doors is a proud family business that has successfully worked within the new construction and renovation industry for more than 20 years. Over the past two decades they have successfully established a dominant presence in the heart of San Antonio and surrounding areas (Boerne, New Braunfels, San Marcos, Spring Branch, Austin and Houston).

As more and more builders are realizing Magnolia specializes in providing customers with luxurious, handcrafted iron products for their custom home projects. Forged with the highest quality materials available and hand-hammered by our master craftsmen, Magnolia’s iron products are a grand addition to the architectural design of any home or business.

Since the company opened its doors work has been growing significantly. Modern housing trends, and consumers evolving tastes for higher end finishes, have enabled the AMS Group to steadily grow and establish a dominant presence. They have brought together a hard-working, reputable team that is passionate about serving the residential construction community and making custom dream homes really stand out. From the front office staff, to a state-of-the-art showroom, to service driven sales professionals, to master artisans and craftsmen to professional installers…Magnolia Doors doesn’t overlook any aspect of their craft.

Helping builders find the right solutions for their homebuyers are professional sales executives Noe Deras, Patty de los Santos and Justina Chapa.

Deras grew up in Brownsville, TX and attended UTSA where he got a degree in Criminal Justice and Police Administration. He started a career in banking but fell victim to the mortgage crisis in 2008, and shifted gears into the wrought iron door industry. He’s been serving several AMS builder clients ever since.

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“We have been taking over the wrought iron door market in the region,” says Deras. “The consistency of our work and professionalism with both the general public and building professionals has allowed us to maintain a broad clientele in the industry. We are a true custom fabricator and can make many items from steel, like corbels, trellis, canopies, steel decking and more. I think the most common misconception is that our items are too expensive. We have very competitive pricing for what we offer.”

De los Santos, originally from Matamoros, Mexico, has been with the AMS Group for nearly six years. And before that she was with another wrought iron door company. Patty has worked very hard developing and cultivating lasting relationships with area builders, designers, remodelers and clients.

Her track record of excellent customer service – as attested by several custom builders – is second to none.

“We really have an exceptional organization, superior products and an excellent system for serving the building industry,” she says. “ I think there are probably several builders

Patty de los Santos

who might not realize all of the talents and capabilities that our company has, besides offering quality doors and railings….like structural steel, floating stairs, wine doors, awnings, fireplaces and many other custom steel work.”

Chapa, from San Antonio, went to UTSA and pursued a business management degree. “I have enjoyed working with builders because our product adds the final finishing touch to their custom homes. I like to tell builders that the front door is the first and last thing you see of a home, and that by using Magnolia Doors their property really stands out as exceptional.”

Justina Chapa Whether selecting from the Magnolia’s standard designs or designing your own unique custom look, the company’s

Magnolia offers two distinct designs; classic

designers are ready to assist throughout

and contemporary. The classic collection

the whole process. CAD drawings are

consists of wrought iron doors and railings

provided to all customers so they can

that have beautiful iron swirls (which can be

visualize their upcoming projects as well

fully customizable), thus adding a traditional

as confirm their tailored specifications.

look to any entryway.

Production begins once the customer or

The contemporary collection focuses solely

home builder approves the dream design.

on adding a modern style to entryways.

The doors in this collection can also be

For more information on The AMS Group / Magnolia Doors please check out

pivot doors, which when paired with a

www.magnoliadoors.com or call 210.366.0490. Or you can reach Noe directly

contemporary railing can add a very unique,

at 210.237.3125; Patty at 210. 831.0876; and Justina at 210.834.4502.

innovative look.

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[Builder’s Corner]

Understanding “Price Per Square Foot” for New Homes

A

By Steve Zbranek

s expected, clients have many questions during the initial meetings regarding their new home construction process here in Central Texas. One that

comes up frequently involves cost per square foot.

Understanding key components should help bring clarity to this topic. This article addresses building size, living area and covered area delineations. cases costs a builder more per square foot to build than a bedroom, game room or family room. Wood ceilings, exterior columns, flagstone floors, weatherproof light fixtures and ceiling fans combined with outdoor kitchens and audio-visual

For years real estate agents, appraisers, inspectors, taxing authorities and buyers have focused on property value as a price per square foot of the living area. Before computers did all

equipment are all expensive. When comparing price per square foot of a 5,000 square foot home, all of these costs must be included in the budget, however none of the square footage of these areas is considered in the price per square foot of the living area analysis.

of the work, real estate and tax appraisers would

Knowing this relationship between living area and covered area typically does

simply measure the exterior of a home, then

not change the new home design. It does however help clients understand the

deduct for the garage and the front porch to

cost of their new home as it is being created right in front of them.

determine the “living area.” Today the calculations are more precise, but they measure the same thing.

As demographics change and kids move out, more people are interested in downsizing their home. Our typical empty nest client will tell us that they only need 3,000 to 3,500 square feet for their new home. However, they still want a

During the initial meeting with clients, we

three-car garage and an over-sized outdoor living area. Now, these same costs

discuss the cost per square foot of a new

have to be spread over less living area footage. The bottom line is that smaller

home. This helps them understand during the

homes cost more per square foot to build than larger ones since there is less

design process how their wish list affects “living

square footage to divide the fixed costs into (driveway, garage, land, covered

area” costs. The first step is to understand the

porches and patios, landscaping, etc.). The relationship between a building size

relationship between the living area and the final

and the living area of a home is a major driver in both cost and price per square

building size. This discussion seems to be the

foot.

most educational for our new customers.

Numerous other factors can affect costs going into the price per square foot

Most think that 5,000 square feet is 5,000

conversation. The next factor are the development costs. This specifically

square feet. If one plan has more garage bays, a

relates to what it costs to construct a new custom home on one site compared

large covered front porch and an award-winning

to another. Items such as soil condition, topography, vegetation, utility location

outdoor living area, the covered area (or building

and availability, city and community requirements are all examples of variables

size) will be larger. This extra footage in some

which greatly affect the cost of a home. For example, a flat lot with average

30

tress, no fill, sewer, water, power and cable TV available at the

story 3000 square foot home there is no consideration in comparing “price

site, in the county (vs. an incorporated city) will typically produce

per square foot”. Once our custom home clients understand this, even those

the lowest possible construction cost. Moving away from these

who began discussing a one-story home, they often ask us to put a couple

variables can increase the cost to build a new home, without

of bedrooms upstairs to reduce “costs.”

adding any additional footage, features or any fun stuff to the home.

Topography is another factor. While sloping lots on hillsides

So, the question of “how much per square foot can you build a

typically provide panoramic vistas, these views come at a high cost to the overall project. Topography affects many costs, including the foundation, exterior masonry (on one of our homes

4,000-square foot home for” is essentially unanswerable without more information. Some of that information will come from the home buyer.

the stone mason had to scaffold up 10 feet to get to the bottom of the home), utilities, landscaping, pools, driveways and not the least of which tractor work, retaining walls and excavation.

Let’s examine a few line items, using the example of a 4,000 square foot

Savvy custom home Realtors get a professional builder involved

home. To upgrade from a composition shingle roof to either a tile or

in a client’s land purchase before the final decision is made. Lot

metal roof on our subject home will cost approximately $30,000 more at

cost versus lot price is the point here. A $75,000 lot can be less

approximately $7.50/ per square foot (PSF). To change from high efficiency,

expensive to the project than a $50,000 lot.

low E vinyl windows and exterior doors to a clad wood window and door

In addition to home site variables and the overall building size, building designs also play a significant role in the cost of a new home. Let’s begin with this basic geometry example. If you draw a perfect square with 10′ on each of the four sides, the box

system you will need another $40,000 at $10/ PSF. Today people don’t use carpeting nearly as much. The result is that wood, travertine or other natural stone products and many tiles are easily $10/PSF more to buy than “nice” carpeting. Over the entire home, add another $10/PSF to the total cost.

contains 100 square feet. Easy! If you draw a rectangle that had 50′ on the long sides and 2′ on the short sides, the rectangle

Cabinets have morphed into another expensive line item all together! Today

will still contain 100 square feet. Easy again. However, to build

buyers want cabinets in virtually every room…custom designed cabinets that

the first 100 square feet the builder must pay for 40 linear

are stained and with all of the bells and whistles that are now available. You

feet of exterior wall space (framing, drywall, insulation, stone,

guessed it, another $6 to $9/PSF. Garage sizes, patio floor covering, lighting,

baseboards, etc.). To build the second 100 square feet the builder

kitchen appliances (one customer spent $7,000 on her refrigerator), trim

has to build 104 linear feet of exterior walls. While this example is

details and many other owners selected items to affect the final number of

extreme, it still proves a point. No one can build 40 feet of walls

our original 4,000 square foot home.

for the same price as 104 feet of wall space. When you connect these dots it’s easy to understand how production builders offer homes at affordable prices. They build square homes on level lots.

Lastly, two-story homes are less expensive to build than onestory homes. Two-story homes enable you to build on the

The bottom line is, giving you a “price per square foot” of a home in Central and South Texas without knowing much more about the factors discussed in this article is virtually impossible for any builder.

How much per square foot is greatly determined by the location of the new custom home, the size, the design and features in the outdoor living area, as well as the overall finish out selections. If someone quotes a price per

foundation twice, under the roof twice, use shorter lumber, electrical wires, heating and air ducts, plumbing pipes, and more.

However, back to our topic of cost per square foot…When a onestory 3000 square foot home is offered for sale next to a two-

square foot of a new home without seeing the site, building or finish out they are making assumptions in these areas that may not be valid for the subject project.

About the Author In addition to serving two terms as Chairman of the Lake Travis Chamber of Commerce, Steve Zbranek was also the Founding Chairman of Leadership Lake Travis, served on the Board of Directors Lakeway Police Memorial Foundation and was recognized as both Business of the Year and Citizen of the Year by the Chamber. A decorated US Air Force Veteran, Steve is a 42-year Custom Home Builder in San Antonio, Austin, Horseshoe Bay & the Texas Hill Country. He’s a two-time National Master Builder of the Year, was inducted into the Austin Builders “Hall of Honor” and his company Zbranek & Holt Custom Homes was recognized three times by the Austin Business Journal “Custom Builder of the Year.” Zbranek is also a Past President of both the Greater Austin and Greater San Antonio Home Builders Association. For more information visit www.zhcustomhomes.com

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[Savvy Trucks & Toys]

Heavy Dutys—Being Supremely Capable is Expected.

A Nice Smooth Comfortable Ride « 2020 Chevrolet Silverado 2500 HD LTZ »

and Lots of Features Are Too!

By Beverly & Steve Smirnis, The Savvy Drivers

T

he Big 3 American automakers all stand vested and focused on the lucrative pickup truck marketplace. Continuous innovation is necessary so none risk falling behind the curve in capability and refinement. This holds true across all facets of the truck world, including the heavy-duty pickup segment. No longer do you have to sacrifice ride quality and luxurious appointments when

you need a big, bad truck with max towing capability. Truly, even heavy-dutys can serve as the do-it-all vehicle, supremely capable of doing the hard work. while still offering a nice and smooth ride and coming fully loaded with creature comforts and tech gadgets.

Chevrolet and GMC completely redesigned

lb-ft of torque. Either of 2500HDs can tow up

their 2500HD Silverado and Sierra trucks in

to 18,500 and haul nearly 4,000 pounds. Wider

2020. Both offer a new 6.6-liter V8 and the

beds with 12 standard tie-downs are a selling

optional Duramax 6.6-liter V8 turbodiesel paired

point as are the standard extendable towing

to a 10-speed transmission. The V8 gets 401

mirrors and an Advanced Trailering System

horsepower and 464 lb-ft of torque while the

that can support up to 15 views through eight

turbocharged diesel makes 445 hp and 910

cameras.

32

trim level continues to uphold GMC as a bar-setter among status and comfort level pickups.

Our tester was the Sierra 2500 Denali 4WD Crew Cab with $12,760 in options to put its sticker at $75,755.

It’s vital for any of the Big 3 to stand neck-and-neck in the competition. Your choice is likely to come down to personal brand preference. Year after year, this means fighting to retain loyal clientele and giving them a reason to trade their current model in for a new one.

Beverly & Steve Smirnis are

« 2021 GMC Sierra 2500 HD Denali »

members of the Texas Auto Writers Association and the Texas Motor

We drove the 2020 Silverado 4WD LTZ Crew Cab which gets you such luxe appointments as power-folding

Press Association, reviewing

mirrors, leather upholstery, heated and power-adjustable front seats, and an upgraded 8-inch touchscreen,

vehicles and casting their votes

plus a seven-pin wiring harness with a trailer brake control. With nearly $20K in options, including the turbo

at driving events where the Truck

diesel engine, a premium package, gooseneck 5th wheel package and special paint, its sticker price was

of Texas, Car of Texas and Off-

just over $73K.

Road Truck of Texas are some of

Designed for appeal to the GM loyalist who wants a bit more refinement, the GMC Sierra 2500HD is a close cousin with a few extra luxury touches. Sierras have the same engine options, but where the Sierra 2500HD really separates from its Chevy sibling is the optional MultiPro tailgate that can be opened and folded in

the titles awarded. Follow their automotive blog on TheSavvyList. com/TheSavvyDriver

different configurations to be used as a step, a desk or a helpful tool for hauling. The top-of-the line Denali

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