San Antonio Building Savvy December 2021

December 2021

San Antonio’s Homebuilding Industry Publication

THE CREATIVE COUPLE REDISTRICTING OF CONGRESSIONAL DISTRICTS Jim Leonard

Rick & Rosario Nash Artisan Creative Homes

AVOIDING TAX SURPRISES Steven Bankler

SAVVY SPONSOR Hotchkiss Insurance

PHOTO BY JASON ROBERTS

Customer Review Rating

Photo by Fossum Studios

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Building Savvy

SAVVY’S A-LIST A-LIST SAVVY’S Air Conditioning Architectural Photographer Classic Services AC Jason Roberts And Associates 830.358.1499 210.789.2033 www.classicairconditioningandwww.jasonroberts.biz heating.com Builder Financing

Architectural Photographer AmCap Home Loans Jason Roberts and Associates 210.422.2114 210.789.2033 www.jasonroberts.biz Building Materials Guido Companies

Building Materials 210.344.8321 BMC www.guidoco.com 512.977.7400 www.buildwithbmc.com MG Building Materials 210.623.4770

Guido Companies 210.344.8321 Doors www.guidoconstruction.com

Doors Drywall The Front Door Company R. Hernandez Drywall 210.340.3141 210.733.6437 www.thefrontdoorco.com

Flooring Flooring Sunn Carpets and Flooring Sunn Carpets and Flooring 210.349.7866 210.349.7866 www.sunncarpets.com

Mortgage Pool Builder Company

Electrician Electrician Balcones Creek Electric JPI Electric 210.368.6057 210.233.6638 www.jpielectric.com

Garage Doors Garage Doors Hollywood-Crawford Hollywood-Crawford 210.494.3434 210.494.3434 www.hollywoodcrawford.com

Pest Control Accurate Pest Control Plumbing 210.495.0499 Diamond Plumbing www.accuratepest.net

www.sunncarpets.com

Wilbert’s Power

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210.392.2517 Elevators www.wilbertspower.com Home Elevator of Texas 210.340.5702 Elevators www.homeelevator.com

Home Warranties Centricity Granite Countertops 727.385.7599

Home Elevator of Texas

StrucSure https://venetiancountertops.com 830-624-4450 www.strucsure.com

Venetian Marble & Granite 210.695.3505

210.340.5702 Fireplace Installations Integrity Fireplace Installations www.homeelevator.com 210.294.1383

The Front Door Company

Fireplace Installations

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Integrity Fireplace Installations

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Home Warranties StrucSure Insulation Klar Insulation 830-624-4450 210.296.5499 www.strucsure.com

Insurance Insulation Hotchkiss Insurance Klar Insulation 210.581.0420 210.296.5499 www.hiallc.com

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Aligned Mortgage 210.874.1630 210.460.1580 www.alignedmortgage.com Infinity Pools of Texas

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Plumbing Diamond Plumbing 210.967.6100 Roofer www.dptexas.com Kendall County Roofing 830.331.2650

Roofer Kendall County Roofing 830.331.2650 www.kendallcountyroofing.com Smart Home Technology www.kendallcountyroofing.com

JPI Electric

Specialty Electronics and Appliances www.jpielectric.com HomeWerks 210.499.5760 www.sanantoniocentralvac.com Specialty Electronics and Appliances 210.233.6638

Foam One-One

HomeWerks

830.228.5040 Lumber and Millwork Roddis Lumber Insurance 210.226.1426 Hotchkiss Insurance www.roddislumber.com

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Luxury Iron Doors and www.hiallc.com Interiors AMS Group Lumber and Millwork 210.366.0490

Specialty Glass and Mirror B&T Glass www.sanantoniocentralvac.com 210.656.8507 www.btglassandmirror.com Specialty Glass and Mirror

Title Company First American Title 210.656.8507 817.918.2323 www.btglassandmirror.com www.firstam.com B&T Glass

Roddis Lumber 210.226.1426

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Luxury Iron Doors and Interiors AMS Group 210.366.0490 DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but

Serving Bexar County and Nearby Areas

remain solely those of the author(s). The paid advertisements contained within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher

R . H E R N A N D E Z D RY WA L L 210-733-6437 | Ralph Hernandez, Owner

may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this 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]

REFLECTING ON 2021 As we reflect on a year that seemed to fly by, the question on everyone’s mind is: Is the housing market cooling or collapsing? It’s the subject of our Savvy Special Report article. Professional Builders’ Secrets from the Association of Professional Builders warns that although you might be thinking things have never looked better than they appear right now, you may be too busy to notice what’s going on; there may be something dark around the corner.

With the average rate on 30-year fixed loans

that support “recuperating and relaxing.” The

expected to rise to 4% in 2022 (a full percentage

new definition of “dream home” has one with a

point higher than it is now) according to the

safe and clean environment with space, storage,

Mortgage Bankers Association, how much impact

daylight, fresh air, and warm colors.

will it have? What will the long-term effects of the mortgage forbearance and Covid-19 relief have on

We can only guess what 2022 may bring. I wish

the economy long term?

all of you Happy Holidays and hope that you have time for rest and reflection at the end of a

If we had a crystal ball, I don’t think we could have

tumultuous year. Cheers to a happy new year—

seen all the things that 2021 brought us, many

and hopefully a more sane one!

that we never thought we’d see in our lifetime— lumber prices at $1,500 per thousand board feet, housing stock selling for as much as $100K over asking price and snowmageddon to name a few.

As we wrap up another year’s Focus Section calendar, the bottom line is consumers crave for their homes to provide refuge from the craziness of the world around us with designs and features

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Terry Kemmy Publisher 210.844.1542

[Industry News]

By Jim Leonard President, Greenboro Homes

REDISTRICTING OF CONGRESSIONAL DISTRICTS MIXES THINGS UP

O

ne of the last items to be tackled was the redistricting of congressional districts as required under the state constitution.

The U.S. is required to hold a census count every ten years. This

Governor Greg Abbott called the state legislators back for several special sessions this year after the business they were charged with could not be completed during the 140-day regular session that concluded in May. One reason was that Democratic legislators left the state to ensure there would not be a quorum to vote on revisions to the state voting act. The delay cost more than a month of time in Austin, thus the special sessions.

information is used, among other things, to ensure that voting

districts are fair to the people who live in them.

The requirements of redistricting are equal population, preservation of existing political communities, partisan fairness, and racial fairness. Nonetheless, as soon as Gov. Abbott signed the bill, cries of racism began, claiming the new district maps did not fairly represent the growth in the state over the past ten years, especially among the Hispanic community, who represent more than 50% of the population growth in the state over the past ten years. They also felt that the new maps will provide the GOP with tighter control to maintain their advantage in the state to keep their seats during re-elections.

One of the changes affecting San Antonio is that Congressman Lloyd Doggett will no longer represent the east side of San Antonio. Doggett has primarily

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served Travis County in congress, but after the 2010 census, he

Lawsuits regarding the new district maps have already been filed

ran in District 35 which stretches from Austin to the eastside of

by MALDEF and other groups that claim the new maps do not fairly

San Antonio. Originally created with the idea of being a Hispanic

represent the growth patterns in the state. It is not likely the suits will

district, Joaquin Castro announced his intent to run for the seat.

change anything but could drag on for some time. Claims are that

At the time Castro was in the state legislature. Charlie Gonzales,

the Republican-led state house and senate drew the boundaries to

who was the congressman in District 20, announced he would

strengthen their reelection chances and keep the state red. But the

retire at the end of his term and Castro decided to run for that

new districts only slightly alter the current maps and work both ways

district. It is not required for a candidate to live in the district

favoring incumbent democrats as well. With Texas districts as they are

he is elected to, so Castro could make that change. It’s unlikely

now the state will remain red for at least the next decade until a new

he could have defeated Doggett, so the move made sense for

census takes place and district maps are redrawn once again.

him. Now Doggett will run in the newly created District 37 which lies wholly in Travis County. A lifelong resident of Austin who

StrucSure_BuildingSavvy_Dec2021.pdf

currently lives on the eastside of Austin, Doggett proclaimed how satisfied he was to end his long career representing the people in the city he has always lived in. We will miss Doggett in our local district. He was a strong supporter of housing issues and was very visible at Build San Antonio Green events. We first met the congressman on a visit to Washington, D.C. when he first was elected to District 35 in 2011. He took the time to meet us on the steps of congress even while his own bill was being read on the house floor.

The newly constituted District 35 will likely remain Democrat given the map boundaries that have been laid out. The district will still stretch from San Antonio to Austin but will gain even more of San Antonio. Democrats that have expressed an interest in running, including the former candidate for governor, Wendy

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Davis, and longtime lightning rod, Trey Martinez Fischer. Trey has served in the state legislature for years, having lost his seat a few sessions back, only to come back and win it again. Trey was also one of the leaders that walked out of the regular session in Austin and beelined it to Washington to push Congress to enact voting rights legislation, to no avail

Congressman Henry Cuellar, D-Laredo, will see his territory grow as well, picking up more of the south side of San Antonio and some of what Doggett leaves behind. Although a Democrat, Cuellar has supported many housing issues in the past and gets a lot of grief in Washington from his own party for leaning towards the middle. Cuellar is a fine statesman and we wish that more people in D.C. looked past partisanship as he does.

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10/8/21

9:01 AM

[Focus Section] A safe and clean environment with space, storage, daylight, fresh air and warm colors are some of the items topping buyer wish lists.

THE 2022 HOME BUYER WHAT’S ON THEIR MIND AND ON THEIR WISH LIST?

By Beverly Smirnis

Antimicrobial Technology

C

onstructUtopia.com

Insulation, drywall, flooring products, ceramic tiles and plumbing

reports that consumers

fixtures are among the many common building products now

are unsatisfied with

offered with built-in antimicrobial technology. Because these

the home’s lack of designs

materials also have an added layer of protection against stains and

and features that support

odors caused by mold and bacteria growth, they also benefit from

“recuperating and relaxing.”

lasting longer.

More time at home spent during the

Heightened Concerns for IAQ

pandemic put a greater focus on the health and safety of our homes,

More cooking at home may provide us with better nutrition, but

prompting heightened awareness of

it can also mean more fine particulates and VOCs in our homes

things that we’ve been talking about

without proper venting precautions. Green Builder Media reminds

for a while now as well as some new

us that an often-overlooked culprit of indoor air contamination is

buzzwords you’ll continue to hear

the microwave exhaust fan. It is still common practice to install

more about.

recirculating microwave fans and even range hoods that pull air

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from the cooktop through a filter only to blow the air back out into the kitchen. Venting to the outdoors is always the preferred method of Indoor Air Quality (IAQ) purists. Range hoods must be large enough to cover as much of the stovetop as possible.

Some health-conscious designers are also specifying “bathroom” fans placed in rooms adjacent to the kitchen. Panasonic makes fans that trigger automatically to turn the fan on and off when it senses moisture in the air. Keep in mind that fans must do the job right but should also operate quietly enough so that people will be more likely to use them.

The Return of Noise Pollution

Search “cloffice” on Pinterest for a plethora of ideas for

While it’s good to see the world trying to get back to normal,

turning closet space into an office space that can be

increasing traffic, engines revving, screeching brakes, roaring

nicely closed off when you’re ready to relax or entertain.

jets, and train horns blaring may also bring back disturbed sleep, decreased work productivity and elevated stress levels.

Studies have shown that 90% of exterior noise enters through the windows, not the walls. To the rescue, Soundproof Windows,

Open Space Can Be Too Open Sometimes

Inc., has adapted recording studio window soundproofing

Where open concept floorplans have been the cat’s meow of design for

technology to create a secondary soundproofing window that

a few decades at least, changes lie ahead as the work-from-home trend

installs inside, behind the existing window. The inner window

continues. The trend also means family members are spending more

essentially reduces noise from entering on three fronts: the type

time together at home overall; this may also mean extended family living

of materials used to make the pane, the ideal air space between

under one roof. The need for flexible private spaces is now underscored.

original window and insert, and loaded long-lasting seals. The

Converging pocket doors are one solution that is gaining traction. They

combination can reduce external noise by up to 95%. The company has also created a “second sliding patio door” that can be similarly installed inside or outside an existing door to add soundproofing qualities.

can offer the best of both worlds to transform connecting rooms into separate ones when privacy is needed. Modern hardware prevents the doors from jumping off the track. Available soft-close mechanisms work just like your soft-close cabinet drawer closers to prevent door slamming and pinched fingers. Pocket, sliding, and wall-mounted doors open effortlessly and close quietly and securely with just the touch of a fingertip.

High Value Assigned to “Simplification of Life” With the kitchen considered the work hub and central gathering spot for most homeowners, Whirlpool Pro recommends built-in appliances to leave countertops clutter-free. Coffee systems that fit seamlessly into the cabinetry rather than on the countertop are one example. Newer appliances are designed to help streamline cooking and cleanup.

Increasing cabinet space and including organizers help keep kitchens, baths, and other rooms more clutter-free.

An article in the Washington Post titled, “What today’s builders have (mostly) forgotten” cited garages being too narrow as an un-needed source of stress, requiring passengers to get out of the car before it’s pulled into the garage and the driver to squeeze out with only 24 inches Sherwin Williams’ Evergreen Fog is a nourishing and sophisticated gray-green.

of space between the side of the car and the inside wall of the garage.

Added garage space and better attic access can eliminate the expense and inconvenience of off-site storage. The Post article reminds builders that a stairway leading to attic storage space makes it easy to store seasonal items, and a stairway provides safer access.

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The Post says that sensory experiences like being able to open a window to watch the rain are gone with the disappearance of generous roof overhangs. It points out that larger front porches, initially a way to keep doors dry, had the side benefit of encouraging interaction with the neighbors.

Hardware Resources’

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lighting to be controlled

to 9” with a 6” handle.

by multiple doors with up

Rear plastic insert holds

to (4) sensors paired to a

additional steak knives

single receiver.

and utensils.

recommends pairing with either light, breezy neutrals, or vibrant jewel

Mental Well-Being At Home

tones for a more dramatic and luxe feel. Sherwin Williams’ Evergreen

Science proves that the lighting of our home environment can have

Fog is a mid-tone gray-green shown with beige, camel, or coffee brown

a direct impact on our well-being. The human biological system craves contrast between exposure to light and dark; without it, our body’s natural circadian rhythm can be disturbed. This research is vital because our circadian rhythm plays an essential role in keeping us happy and healthy, controlling critical processes like sleep, body temperature, immune response, and cognitive performance.

Research shows that eyes are most sensitive to blue light-- the kind emitted from TV, phone, and laptop screens, which is why watching TV or using your phone before bed can impact your sleep. The latest “smart light bulbs” use long-wavelength orange and yellow light, along with contrasting violet light—the colors occurring naturally at sunrise and sunset—to either wind down or wake up your body clock. Users connect to the smart bulb with an app and set it to suit their schedule and sleep preferences. The bulb creates a lighting schedule and runs through three modes each day: wake, active, and calm. The bulb appears as a regular white light while subtly adjusting the warmth or

accent colors. Noting that online searches for green paint colors have more than doubled since 2020, Glidden named “Guacamole” is its color pick for 2022. Benjamin Moore’s picks for next year also follow the green trend—it shows a silvery green paired with a rich dark sage green shade to add warmth and depth to a monochromatic palette.

Behr’s green is a cool refreshing green reminiscent of sea glass, while PPG goes with a soft, organic shade of green called Olive Sprig.

The bottom line: The 2022 definition of “dream home” isn’t over the top, and it’s not about bells and whistles, or overly ornate, nor is minimalistic the trend any longer. The new definition has more to do with a safe and clean environment with space, storage, daylight, fresh air, and warm colors. Future-proof your business by bringing all of this into the picture while demonstrating your attention to the details that make it eco-friendly, energy-efficient, and easy to maintain, and you’ve got the winning ticket.

coolness and brightness throughout the day.

Beverly Smirnis is the co-founder of Building Savvy magazine and

2022’s Trending Paint Colors Set The Tone

publishes its flagship Dallas/Fort Worth edition. She and her business

While we abandon the colder tones of grey and white, warmer

partner and husband, Steve Smirnis, have served as judges for the

variations of the neutral palette remain the popular and safe choice

International Builders’ Show Best of IBS Awards and judged numerous

in common areas. However, darker and richer colors are emerging in

homes for builders association parade events across the country. Listen

those highly valued, more private areas of the home—libraries, studies,

to their Building Savvy Bottom Line podcast on Home Trade Show on

and particularly bedrooms. Dunn-Edwards’ pick for 2022 color of

iHeartRadio and TV Network.

the year is a warm, earthy and sophisticated shade of brown that it

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[Savvy Special Report]

COOLING OR COLLAPSING? KEY FACTORS TO CONSIDER ABOUT THE HOUSING MARKET Author Who Detailed Plight Of Fannie Mae, Freddie Mac Says Government Must Fill Gap For Minorities, Middle Class To Access Mortgages.

The question: With the mortgage forbearance program

Fortune reported that more than nine million homeowners were in

winding down and housing inventory hitting a 40-year low,

the mortgage forbearance program at the height of the pandemic.

After the economy posted one of the fastest recoveries in history,

where is the housing market headed amid dynamics of the

the Mortgage Bankers Association said there were still about 1.7

COVID-19 pandemic?

million borrowers enrolled in the program that allowed them to pause their payments. With the forbearance program now lapsed, Fortune predicts a major shake-up headed for the housing market due to all of these borrowers being phased out. When you consider that housing inventory is at a 40 year low, with just over 600,000 homes for sale right now on realtor.com, Fortune warns that even if a small percentage of these 1.7 million struggling borrowers opt to sell—rather than returning to their monthly payments—it could cause a shock in the housing market.

Visit our website to see what’s on sale.

Shades of 2008? When the U.S. housing market collapsed in the Great Recession in 2008, Congress created the Federal Housing Finance Agency (FHFA) to regulate the mortgage industry. The

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which led to Fannie and Freddie sending large payments to the U.S. Treasury.

“This isn’t a crisis of oversupply like in 2008,” says Tim Pagliara, the founder, chairman, and chief investment officer of CapWealth and the ForbesBooks author of Another Big Lie: How The Government Stole Billions From The American Dream Of Home Ownership. And Got Caught! “It is a crisis due to shortage. We are short 6.8 million singlefamily housing units while we have static demand for one millionplus new homes every year.

“Because of delays in the recapitalization of Fannie Mae and Freddie Mac of their release from conservatorship, the availability of credit has been constricted. As a result, minority homeownership has not kept pace, and black homeownership is at a 50-year low,” says Pagliara.

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Pagliara’s takeaways about the housing market:

A ProBuilder article cites NAR data showing that in August 2019, 30% of mortgage loans were backed by

•

the FHA, VA, or USDA. Compared to August 2021, the

Budget constraints are going to force the Biden administration to be creative. “By finishing the

share of government-backed loans had dropped to just

recapitalization of Fannie and Freddie and the release

23%. Furthermore, a record 73% of all new mortgage

of their conservatorship, the government can generate

debt in the first quarter of 2021 went to buyers with

over $50 billion in proceeds, which can be placed in a housing trust to assist communities and first-time

credit scores of 760 or above, According to the Urban

homebuyers,” Pagliara said.

Institute, first-time homebuyers with FHA loans have an average credit score of 676.

•

As the Federal Reserve System tapers, Pagliara says economic activity will need to accelerate – especially the housing market. “A strong housing market has

Pagliara points out the foreclosure crisis following the ‘08 housing

a multiplier effect on many things throughout the

crash was primarily because millions of homeowners were

economy,” Pagliara says. “Everything from paint to

underwater – i.e., their remaining mortgage balance was greater

appliance sales benefit.”

than their home’s value. Real estate and mortgage experts today say homeowners are generally likely to have more home equity than

•

Big real estate investors and asset management

those in ‘08.

firms are factors driving up home prices and making

But will a large sector of would-be buyers be left out without the

homeownership less accessible to average Americans.

government giving Fannie Mae and Freddie Mac more help?

“One result,” Pagliara says, “is too many renters

“Fannie Mae and Freddie Mac need capital so they can serve

who should be owning. If you can rent a home in a

their mission of providing long-term fixed-interest housing for the

neighborhood where people own, you should be able to

underserved and the middle class,” Pagliara says. “They are the

purchase that home.”

bedrock of the American middle class, the strongest engines of economic equality this country has ever invented.”

Home Elevator of Texas Travel Effortlessly from Floor to Floor Serving central and south Texas with locations in San Antonio, Houston and Austin.

866.269.9192 HomeElevatorofSanAntonio.com info@HomeElevator.com 15

[Professional Builders’ Secrets] from the Association of Professional Builders

BOOKED OUT FOR 18 MONTHS? CASH FLOW LOOKING GOOD?

Y

ou might be thinking, in all your years in business, things have never looked better than they appear right now. You’ve never been busier. However, below the surface, there could be a disease growing inside your building company. And

with every week that passes, it could get bigger, feeding off the constant price increases and the delays which are destroying the net profit on your projects and eating away at the equity you have built up over the years in your building company.

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You may be too busy to notice what’s going on because

When the music stops, a lot of building companies will not have the

you’re spending all your time chasing deliveries, rescheduling

cash available to cover the hidden liability in their accounts. Builders

subcontractors, and dealing with clients demanding to know

need to take action right now before it’s too late.

when their home will be finished, or even started. On the surface,

Does that sound far-fetched? Surely it couldn’t happen again?

everything looks rosy because you have excess cash in the bank. But

As Mark Twain said, “History may not repeat itself, but it certainly

without retained net profit, every job becomes a liability.

rhymes. ” And the quote from George Santayana reminds us, “Those

According to a study by the Association of Professional Builders,

who do not learn from history are doomed to repeat it.”

between 40 to 60% of residential home builders are not making a net profit on their projects due to rising costs and delays. And while material prices may have peaked, the worst is still yet to come as the inevitable interest rate rises come into play, driving up the cost

ABP’s annual State of Residential Construction Industry survey

of labor as employees and subcontractors struggle to pay their

provides high-level information and data for the residential

mortgages as well as cover the cost of the weekly shopping bill.

construction industry across five countries including the United

So, what can you do about it? After all, macroeconomic events are

States and Canada, from industry insights and benchmarks to

out of anyone’s control so all people can really do is carry on, keep

forecasts for 2022. When you take part in the comprehensive

their heads down, and wait until what will be, will be—right? Our

survey, a PDF copy of the finalized report will be delivered straight

prediction is that those builders who do nothing, like the vast majority

to your email as soon as it’s published.

of residential home builders have been doing since April 2021, will find themselves in a hole that is too deep to climb out of when the dust settles.

COVID-19 presented the owners of residential building companies with a golden opportunity to take a giant step forward. Demand has far outpaced supply placing building companies in a position of strength never experienced before. However, rather than using that

Scan here to take part in the

opportunity to increase their margins and put on more resources to

ABP State of Residential

streamline their operations through systemization, most builders

Construction Industry survey

have carried on doing the same things while expecting a different end result.

Officially, the inflation rate stands at 5.4% in the United States.

However, every residential building company owner knows that the inflation rate does not correlate with what is happening in the

This article is supplied, courtesy of the Association of Professional

construction industry. According to the Bureau of Labor Statistics

Builders (APB), a business coaching service for custom home

Producer Price Index, the average price of goods used as inputs to

builders in the United States, Australia, New Zealand, and Canada.

residential construction has risen 13.2% year to date as of October.

APB provides tested and proven systems for builders to scale and

It’s important to know what’s really going on behind closed doors of

succeed, based on data, experience, and results. Building Savvy’s

independent residential building companies because when you know

new series of articles and education seminars will glean from APB’s

how to benchmark yourself against competitors, you can implement

vast library of coaching curriculum, and the expertise and experience

the systems and processes that will put your company ahead. A

of the APB team. Topics will range from construction business

“work in progress” (WIP) adjustment is the only accurate way to

coaching to sales training, marketing insights, and financial coaching.

reflect the amount of profit you’re earning and then increase the

The goal is to share ideas on how to create a systemized residential

accuracy of the statement by adjusting income up or down based on

building company to generate more leads, earn more money for your

whether you are ahead or behind with the billing.

services, and deliver a better client experience.

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[Savvy Builder]

ARTISAN C R E AT I V E H O M E S Rick Nash of Artisan Creative Homes

Formerly owned by Texas Tech legendary football coach, Spike Dykes, this extensive remodel job featured an expansive open

was one of the eight builders featured

living area with soaring ceilings, custom moldings, walls of glass,

in the recent 2021 Hill Country

hardwood flooring, and a gorgeous view of the water feature on

Builders Association Parade of

own little park. And the house features so much more. Artisan

Ram Rock’s picturesque 11th tee box. The backyard is like its

Homes. And his home, at 105 Blue

also received second place for the best master suite in the HCBA Parade. This is quite a feat considering the stiff competition.

Ground in the Bay West section of

Nash is originally from Amarillo, TX, and right after high school

Horseshoe Bay, was unmistakably

became a painting contractor. Eight years into his trade he injured his back and needed a Plan B. “I had painted for many

impressive.

builders and they all had better homes and trucks than I did,” he said. “I decided that I wanted to be a builder/remodeler, so I hired on as a superintendent. I wasn’t making much but I enjoyed it and I was learning all aspects of the business. Working with subs and vendors always came easy to me, and I enjoyed learning the various trades from many of these guys.”

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Nash spent his early years in construction – in Amarillo and the Houston area – as a faux finish painter, and doing room additions, as well as general remodeling. His wife Rosario has been a solid partner in his success and growth and brings a ton of creative energy to their team. One of their crowning achievements was remodeling the dated Woodlands (north of Houston) Country Clubhouse totally transforming it into a source of pride for the members there.

About three and a half years ago, while living back in West Texas, Rick and Rosario decided to spend 10 days vacationing in and around Horseshoe Bay. In addition to relaxing a bit, Nash used this time to reach out to other builders, realtors, and business leaders. They had really fallen head over

heels with the Hill Country and the Highland Lakes area (as so many other West Texans have before them) and decided to make this a new home.

Before he headed back to Amarillo he formally applied to be a certified general contractor in Horseshoe Bay. A few weeks later he found out he was accepted and soon after they were packing their bags.

Artisan Creative Homes’s business model is built around house flipping, remodeling, and building spec homes. As with other builders in this market, the biggest day-to-day challenges are with the supply chain and fluctuating pricing issues. It’s virtually impossible to guarantee remodeling timelines and schedules to homeowners because of so many uncertainties with the delivery of products and materials. But since most of Nash’s work is in-house flipping or building specs he is his own client.

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Here’s what some of them had to share about their experience in working with Artisan Creative Homes: “Most of our clients have a good vision of what they want to do. Once we have a set of plans for a remodel, room addition, or new home we go through a selection process that helps us determine a workable budget. We try to set realistic budget numbers accounting for the issues we all know exist. But our main difference from others is the creative energy my wife and I bring to each project. We offer complete design packages within the client’s budget. We’re very good communicators with our clients and we treat each home as if it is our own home.”

Since Rick started out as a painting contractor he is keenly aware of treating his subs like he wanted to be treated when he was in their shoes. “I don’t ever make my subs chase me down for their checks. Communication is very important and I treat my teams with respect and let them know how thankful I am for their skill and commitment to excellence on my projects. I am simply an organizer of people and products. Without amazing subs and vendors, I do not have a business.”

“Rick is very professional. He’s one of most professional builders around here…very organized and runs a smooth schedule, and looks after his people.”

Zack Kirscht – ZK Plumbing “He’s very straightforward, very relatable which I love. Rick is easy for us to work with.

Nancy Bandy – Carter Floors “He has a niche business…high end remodel projects. They always do really good work, excellent work. Artisan has a great reputation!

Richard Weston – Williamson Roofing “Rick always communicates well with his customers and vendors. This helps the building of a new home go smoothly for everyone.”

Julie Causgrove – C&D Appliances “He’s just a good guy, an honest builder, very trustworthy. Rick always goes above and beyond the norm for treating his subs and trades partners. “ Kim Willis – Marble Falls Electric & AC “I can’t speak highly enough about Rick and his team. Whenever I turn over a client to him I am fully confident that they are in great hands. He’s got great vision and sees possibilities in properties that others don’t see. Rick is all about delivering quality.”

Chad Thibodeaux – Remax

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[Savvy Finance]

By Steven Bankler, CPA

B

uilders need to adjust their workforce

AVOIDING PAYROLL TAX SURPRISES

continually, which can lead to complicated payrolls. The IRS and the state of Texas have a vested

interest in you getting payroll right, though,

•

claimant, an investigation may be initiated.

because employment taxes are a huge source of revenue for them.

•

A competitor or someone else reports that an employer may be misclassifying its workers.

While the IRS has its eye on the federal portion of payroll taxes, the Texas Workforce

A former worker files an unemployment claim. If no wages were reported for that

•

Commission is tasked with auditing Texas

A random audit of the employer is performed as part of TWC’s goal of auditing 2% of Texas businesses every year.

businesses over state payroll tax issues.

According to TWC, businesses are usually flagged for one of four reasons:

•

TWC decides to target a specific industry or geographical area (the construction industry has been targeted in past years).

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As you can see, misclassifying workers as independent contractors

The best way to avoid surprises is to maintain excellent payroll

is a significant trigger. Misclassifying a worker as a contractor when

records and timely payments. “Many audits result in no finding of

they really operate as an employee means they’re on the hook to pay

anything wrong and are finished within a few hours, depending upon

their own employment taxes, which doesn’t happen as often as it

how well the employer has been keeping records of workers and

should. In 2014, the Fort Worth Star-Telegraph reported that nearly

payments to workers,” TWC states.

40% of Texas construction workers were misclassified. The problem

Proactive classification reviews and a Voluntary Classification

contributed to a $1.2 billion-a-year loss in tax income for Uncle Sam.

Settlement Program are available for certain businesses. Working

So, of course, they’d like to prevent that from happening again.

with a CPA from the start can help ensure regulations are followed

There could also be payroll deduction problems that cause your

and can represent you before tax auditors if that dreaded payroll

business to be flagged. Many of these can happen by accident.

audit letter does arrive.

Examples include child-support garnishments ordered by the court that bring a worker’s wages below the minimum wage and employee loan deductions that aren’t approved in writing per Texas Payday Law.

Steven Bankler has more than 44 years of experience in the accounting industry. Steven’s expertise lies in consulting,

Payroll issues can become a criminal offense particularly when

planning, tax, and asset protection, and exit strategy services for

employment taxes are collected from paychecks but not paid to the

closely-held businesses. He also provides litigation support (both

state or IRS. With the complexity of bookkeeping on construction

as a testifying expert witness and a consulting expert), business

projects, it’s a law that often trips up builders. And when that

negotiations, and estate planning. Visit www.bankler.com for

happens, each business owner and manager in charge of payroll

additional tax strategy tips and to learn more about Steven

can be held personally responsible for paying the overdue bill.

Bankler, CPA, Ltd.

Moreover, if it’s found that those parties knowingly evaded paying, prison may be part of the deal.

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[Savvy Sponsor ]

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HOTCHKISS INSURANCE A STRONG FOUNDATION OF

home builders have been at the core of our business. Founder Doug Hotchkiss successfully implemented innovative strategies that protected home builders

PROTECTING BUILDERS

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M

ore than forty-five years later, Hotchkiss Insurance is one of the largest privately owned agencies in Texas and is uniquely positioned to leverage a depth of industry knowledge, resources and strong carrier relationships for the benefit of our clients.

With a long history of serving Texas homebuilders, we developed a dedicated home builder department. Statewide, we have more than 60 employees dedicated to a specialization in the homebuilding/construction industry. As an independent agency, Hotchkiss has access to a range of solutions, including exclusive access to programs designed specifically for builders. And while we excel at designing and implementing comprehensive programs that protect your business, our greatest value comes throughout the year. We serve as an extension of your organization’s advisory team, providing valuable counsel and supporting your long-term success.

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Deep Roots in our Communities With strategic locations in San Antonio, Houston, Dallas and Fort Worth, we’re able to understand the unique constraints and situations facing Texas builders. Hotchkiss team members are active throughout the state at all levels, serving on boards, providing educational opportunities and supporting the industry at large.

Leading with Purpose Our purpose is woven into the fabric of our organization, and we believe deeply in our core values. Whether we’re protecting clients from risk with creative solutions or jumping into action to serve our communities, we’re driven to protect people.

One important way we do this is through Hotchkiss Helps, our charitable arm that was officially founded in 2016. Each year, we select a nonprofit to support through our time, effort and fundraising campaigns. In 2022, Hotchkiss Helps is hosting its first-ever charity golf tournament to benefit the Cystic Fibrosis Foundation.

Hotchkiss Insurance in the Hill Country Based out of our San Antonio location, Colby Duke and Laura Long are focused on protecting homebuilders throughout the hill country. Both Colby and Laura stay on top of industry trends, leaning on agency resources and supporting their homebuilder clients’ success.

Colby Duke, CIC, CRIS, a former custom home builder himself, brings more than three decades of industry experience, sits on the board of several local builder associations and is an active member of the Greater San Antonio, Greater New Braunfels and Hill Country Builder Associations. He also benefits from past professional experiences working for a civil engineering firm as well as for a national home builder.

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[Savvy Trucks & Toys]

DO YOU NEED A PEOPLE MOVER THAT DOUBLES AS A CARGO VAN?

By Beverly & Steve Smirnis

« Genesis GV80 »

You’re looking for a vehicle that checks the boxes for luxury and tech features, making it classy enough for driving around the shareholders or clients. Equally important, you need something that easily converts into the cargo-carrying van you need for the job site.

Here are some of the options that match up to your specific criteria:

$10,000 more and comes only with AWD. It delivers 375 hp and nearly 400 lb-ft of torque.

Genesis SUVs go a long way in illustrating the brand’s capability to compete in their competitive segments and their warranties are

Our Advanced model got the updated engine with AWD and

enticing--five-year/60,000-mile basic and 10-year/100,000-mile

added the third row for seven seats. A $5,200 Advanced

powertrain coverage far exceeds anything its competitors offer, and

Package and premium paint gave it a total price of $65,775.

three years/36,000 miles of complimentary scheduled maintenance is

The second row with 40/20/40-split configuration folds and the

included. The GV80 2.5T is available in rear- and all-wheel drive (AWD)

third row folds flat with the touch of a button and it’s good for

starting at just under $50,000. The higher-performance 3.5T model is

towing 6,000 pounds.

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The Ford Expedition’s interior is described as “cavernous” by one « Genesis GV70 »

reviewer and it’s still named as a favorite among large SUVs by several. Body-on-frame construction offers plenty of ground clearance and its 3.5-liter turbocharged V6 engine has the muscle to cart the team over those unimproved land parcels you’re considering developing. Expedition has a cargo capacity of 20.9 cubic feet behind the third row, 57.5 behind the second row, and 104.6 cubes max when the second and third rows are folded flat.

It can also tow up to 9,300 pounds when properly equipped. Our mid-tier Limited 4x4 tester had seating for eight passengers plus plenty of upgrades with a base cost of around $65K plus about $6K in options including a Texas Edition Package, panoramic vista roof, 360 camera, LED headlamps, and enhanced Active Park Assist.

As pioneers of hybrid technology, Toyota and Lexus debuted the original luxury hybrid with the Lexus RX 450h over 15 years ago. The RX 450h is still top-rated among hybrid SUVs. It gets an estimated 30 mpg combined. So, if you’re a green builder and ride comfort is high on your list, this will be the one to consider. Those

Genesis GV70 shares some visual cues and the same engines as its

looking for quick acceleration will not be disappointed either, with

larger GV80 sibling, but the GV70 is sportier-looking due to the raked

the hybrid powertrain making 308 horsepower. With 18 cubic feet

roofline and wagon-like rear end that accentuates its length. Being

of cargo space, it’s not as roomy as some of the others, but it scores

lighter than its bigger brother, the same engine moves it a little quicker.

well on the head- and legroom. The 40/20/40-split folding rear

Eight-speed automatic and AWD are standard. GV70 will only seat

seats still qualify it for cargo, though folding the seats down is a

five and its rear-seat space is rather limited, but we mention it here

manual process and does not deliver a completely flat load floor. To

because cargo capacity at 28.9 is a huge plus. While Genesis packs

get third-row seating, you’d have to get the long-wheelbase RX 450L.

it in with features already at the base level with MSRP at $52,600 for

Our tester was the 450h F Sport with two rows. The sporty version

the 3.5T, our tester had the $5,000 Sport Advance Package and $4,900

is mainly aesthetic, but it does have larger wheels and sport-tuned

Sport Prestige Package, topping its final price to just over $64K.

suspension dampers. Loaded up, its price tag was right at $63K.

« Ford Expedition »

« Lexus RX 450h »

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« Chrysler Pacifica »

Chrysler Pacifica is the stylish exception that breaks the stigma about minivans. It is, in fact, converting some SUV buyers

WILBERTS POWER

overdue to its superior people- and cargo-carrying capabilities. It has 41.1 inches of legroom up front, 39.0 inches in the second

ELECTRICAL SERVICE, LLC

row, and 36.5 inches in Row 3. Cargo volume measures 32.3 cubic feet behind the third row, 87.5 cubic feet behind the second

TECL# 33521

row, and 140.5 cubic feet with all the seats folded down. Pacifica is practical, yes, but it has all the latest SUV bells and whistles, plus its own special things like an integrated vacuum and Stow ‘n Go seating that easily folds into floor cubbies to create a flat floor. Pacifica’s 3.6-liter V-6 cranks out 287 hp and 262 lb-ft of torque sent via a nine-speed automatic for FWD or AWD. Our tester sported the range-topping trim level—Pinnacle, delivering to the expectations of luxury buyers, and AWD for just under $55K. Any of the above proves you can get luxury, seating for as many as you need, and cargo-carrying capabilities in one smart package.

RESIDENTIAL | C OMMERC IAL | AUDIO & VID E O

Beverly & Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of

•

New Electrical Installation

•

Electrical Upgrade/ Remodel/Additions

•

Customer Service Calls

Texas, Car of Texas, and Off-Road Truck of Texas are some of the 

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

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