San Antonio Building Savvy June 2021

June 2021

San Antonio’s Homebuilding Industry Publication

PAUL EVANS: WHAT’S NEXT ...LOCUSTS?

BLANCO VALLEY HOMES Builders David Anderson and Jerry Smith

CASA ÜBER ALLES Fredericksburg High School Program Rekindles The Trades

SAVVY FINANCE The Dreaded Tax Lien

Lead The Way at Rockin J

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INC REASED

CO M FO RT

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IM PROVED

ENERGY

EFFICIENCY

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UPDATED

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A PPEA L

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

OWNERS - BRIAN & TOMMY MOON

• Free field measurements & estimates • Framed & frameless shower enclosures • Butted windows • Custom vanity mirrors & wall mirrors for home & commercial gyms • Broken & fogged window replacement

B&T GLASS AND MIRROR, INC. 210.429.8545 | BTGlassandMirror.com

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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 Architectural Photographer Building Materials Jason Roberts and Guido Companies Associates 210.789.2033 210.344.8321 www.jasonroberts.biz www.guidoco.com

Building Materials BMC MG Building Materials 512.977.7400 210.623.4770 www.buildwithbmc.com Guido Doors Companies 210.344.8321 The Front Door Company 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 Company Mortgage Company

Electrician Electrician JPI JPIElectric Electric 210.233.6638 210.233.6638 www.jpielectric.com

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

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

www.hollywoodcrawford.com

www.accuratepest.net Plumbing

www.sunncarpets.com

210.494.3434

www.jpielectric.com

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

Home Warranties Centricity 727.385.7599 Granite Countertops

Venetian Marble & Granite

210.340.5702

StrucSure 210.695.3505 830-624-4450 https://venetiancountertops.com www.strucsure.com

www.homeelevator.com

Fireplace Installations Integrity Fireplace Installations 210.294.1383 Fireplace Installations

210.340.3141

Integrity Fireplace Installations

www.thefrontdoorco.com

210.294.1383

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

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

210.248.2556

Lumber and Millwork Roddis Lumber Insurance 210.226.1426 www.roddislumber.com Hotchkiss Insurance 210.581.0420

Aligned Mortgage 210.874.1630 210.874.1630 www.alignedmortgage.com Aligned Mortgage

www.alignedmortgage.com

210.495.0499

Diamond Plumbing 210.967.6100 www.dptexas.com Plumbing Diamond Plumbing

Roofer 210.967.6100

Kendall County Roofing 830.331.2650 Dr.www.kendallcountyroofing.com J. Plumbing Contractor www.dptexas.com

210.681.7555

Specialty Electronics and Appliances HomeWerks Roofer 210.499.5760 Kendall County Roofing www.sanantoniocentralvac.com 830.331.2650

www.kendallcountyroofing.com

Specialty Glass and Mirror B&T Glass 210.656.8507 Specialty Electronics and Appliances www.btglassandmirror.com HomeWerks

210.499.5760 Title Company

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

www.sanantoniocentralvac.com First American Title

Roddis Lumber

B&T Glass

210.226.1426

210.656.8507

www.roddislumber.com

www.btglassandmirror.com

Luxury Iron Doors and Interiors

Solar Energy

AMS Group

Smart World Energy

210.366.0490

817.918.2323 www.firstam.com

Specialty Glass and Mirror

210.465.1021

DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but 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

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 r e a t i v e 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.”

TER RY K EMMY Realtor®

terry0372@kw.com 210.844.1542

FROM THE HILLS TO THE HARBOR, WE HAVE YOU COVERED!

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Born and raised in San Antonio, Te r r y a n d h i s w i f e J a c k i e b o u g h t a condo at Horseshoe Bay Resort a year ago and have enjoyed becoming integrated with the Highlands Lake C o m m u n i t y . Te r r y g r a d u a t e d f r o m T h e U n i v e r s i t y o f Te x a s a n d h a s a strong background in marketing, communications, advertising and publishing. He is also the Publisher of a monthly residential builder trade magazine, B u i l d i n g S a v v y, a n d h a s s u p p o r t e d local and state builders associations for several y e a r s . Te r r y i s v e r y f a m i l i a r w i t h the real estate issues both builders and homeowners face.

The Kemmys enjoy travel (when possible), gardening, their two adorable granddaughters, golfing at Slick Rock and making new friends around the lake.

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Professional & personal service to every client.

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Comprehensive resultsdriven marketing strategies using the latest technology for extensive internet presence.

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EVERY BUYER and SELLER receives expert representation.

[From The Publisher]

Performance Reviews

The Human Factor is Always Important What Next? The Locust?, the title of this month’s Sales Savvy by our friend Paul Evans (VP Builders First Source/BMC) is what a lot of people may be thinking. But if and when material prices and home prices ever come back down, Paul reminds us that if your attitude and customer service commitment remain consistent in the most challenging of times, you’ll be noticed for it in the end when things eventually get back to “normal.”

“Normal” is something that Paul and other industry

reminded that, for a home to operate at its peak

experts are predicting will be a different normal

performance, its systems must be installed the

than any before it. That said, now is time to give

right way, the ductwork and building envelope

your sales team a performance review. Your

must be adequate and devoid of air leaks, and the

competition may not seem like a threat right now

equipment must be properly maintained. This

when you’re selling homes faster than you can

means, once again, that the human factor is just

crank them out, but savvy builders are always

as important as the equipment choice.

watching and evaluating!

Our theme of performance continues with a fun review on performance trucks and cars, and as

Terry Kemmy

we evaluate the capabilities of modern furnace,

Publisher

AC and water heating appliances. We are

210.844.1542

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 7

[Industry News]

2021

L o c a l Elect ion N ews

By Jim Leonard

A

s of this writing, citizens are going to the local polls to vote for the mayor and every single council seat and their respective contenders for their positions. Also on the ballot are two propositions, A and B. Proposition B deals with changes to the police department, while Proposition A is an affordable housing initiative.

To clarify the need for Proposition A we need to go back to 2016. In

do. But we would need to go to the voters and have them decide on

the fall of that year, Mayor Ivy Taylor appointed committee chairs to

a charter revision to make this possible. And that is what Proposition

head citizen committees to move forward components of the 2017

A will do. Hopefully by the time you read this, Proposition A will have

Bond which would total nearly $1 Billion. I was appointed as a co-chair

passed and the work that was started five years ago will be closer to

of the Neighborhood Improvements committee. This would provide

becoming a reality.

$20 Million to be used for housing projects in “blighted” areas of the city. At least one project was brought forward in each council district and over a period of months, these were prioritized by the committee.

The basis was that the city would provide potential infrastructure, incentives, or fee waivers that would make the project pencil out for a builder or developer. Many people were not happy about this because the thought was that very low-income housing would be the result. But the projects were being targeted to people at 80% of the area median income or AMI. That translated into a salary range of a schoolteacher, a nurse or other essential workers who were being priced out of the housing market.

As we worked through the process, we learned that the city charter could only allow public works projects, meaning the infrastructure was possible, but not the actual construction of buildings or houses.

A few other changes should be recommended to city

This was a stumbling block for the committee because we envisioned

council to eliminate needless cost and keep housing

seeing new buildings that could be developed with the funds. As we

affordable in parts of the inner city. They regard zoning,

looked into how other cities dealt with similar bonds, the city of Austin was used as an example. Their city charter contains the language that

permitting, and other fees. Let’s take a look at each and

allows for funds to be used in the manner we had hoped to be able to

the associated cost.

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Many inner-city lots have either a commercial or industrial zoning.

So let’s add it all up… $800 for a zoning change, $200 for a COD, and

Even though the lot may be surrounded by single family homes,

$1,200 for a building permit. That adds up to $2,000. And just pray

the requirement for building a new single-family home is that the

you have utilities to the property and don’t have to pay for impact

property must be re-zoned to the appropriate use. All the existing

fees or street cutting to bring water and sewer to the lot. That has

houses were built prior to any zoning and are all grandfathered for

been written about previously so we won’t get into it here. But I will

their current use, but not when

say that I was able to obtain

it comes to new construction.

SAWS impact fee waivers for

Most of these lots are 25-50

two properties early this year.

feet wide and about 120-150

I thought I won the lottery.

feet deep. The size of the lot

Applications for SAWS waivers

makes a commercial building

were due on a certain date and

nearly impossible to build on a

not before 9 a.m. I can just

lot like that. The side setbacks

imagine how many people had

in C-1 are 20’, which would

their mouse hovering over the

only leave ten feet of width for

submit button until the clock

a building. So the landowner

struck 9 a.m. I know I did.

must file a change of zoning request from the city and wait to be placed on the zoning committee agenda and if that passes, wait some more to be put on the city council agenda for final

It’s great to hear that the city is interested in affordable housing and

approval. The cost to file the change of zoning is over $800. And it

wants to change the charter to aid in that. But I have just outlined some

will take about three months from the time you submit the request.

down in the weeds costs and time wasters that could help significantly

Realizing that pretty much nothing could be built on the lot except

in producing the type of housing the city wants to see. Whether they are

a single-family home, the city could waive the fee and change the

interested in reviewing them or not is uncertain.

zoning without a long drawn-out process. But it does not work like that.

StrucSure_BuildingSavvy_June2021.pdf

To submit a plan for a building permit, one requirement is to have a plat from the city of the lot. These can be very difficult to obtain from the courthouse given that the lot and location may have been there for over 100 years. Even if you can find the plat, if it is dated prior to 1925, it is considered “antiquated” and cannot be used. It’s actually interesting to see these old plats that are hand drawn and very precise. If it is antiquated, you must file for a Certificate of Determination to see if it is allowable to build on the lot. It’s pretty much a piece of paper that states that no plat is needed and you must follow UDC requirements for setbacks, etc. And how much is the COD? $200. But first you need to obtain a tax certificate from Bexar County for $10 and about a one-week turnaround. You then submit that to the city with the COD application and wait some more. Are you beginning to see the costs add up?

C

M

Y

CM

MY

CY

CMY

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After at least three months of going through the zoning process and obtaining a COD, you now have what you need to submit a building permit. Up until this past year, it was fairly easy to get a waiver from the city on building permit fees for affordable housing. But Covid-19 wrecked the city budget and the city eliminated that waiver.

Recently I questioned Development Services officials about this.

With housing starts up over 2019 why was there a cutback on this waiver? I was told it was not DSD that did away with the waiver, but the city itself. So how much is a building permit for a typical 1200 square foot house? About $1,200.

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1

4/27/21

6:42 AM

[Focus Section]

Home Comfort Systems

By Beverly Smirnis

Lennox Ultimate Comfort System™ ideally pairs its SLP99V gas furnace with AFUE rating up to 99% or CBA38MV air handler with the SL28XCV air conditioner, rated up to 28 SEER. When connected to the Lennox iComfort® S30 ultrasmart thermostat, the furnace and AC stay finely tuned to changing conditions in the home while the PureAir S air-cleaning system filters out airborne particles and removes germs, bacteria, odors and vapors.

H

ere in Texas, where we experience both blistering summers

Annual Fuel Utilization Efficiency (AFUE) ratings are used to compare

and the occasional freezing winter, we traditionally use

the efficiency of gas furnaces. For example, the highest AFUE rating of

HVAC split systems where the condenser and compressor

99% means the furnace converts almost every bit of the energy it uses

are in an outdoor cabinet connected via a line set to an indoor

into heating the home. Air conditioners are compared by Seasonal

cabinet, which holds the evaporator coil, with an air handler sending

Energy Efficiency Ratio (SEER) ratings. The average cooling output of a

the cool air through the duct system. The traditional central air

system is divided by the average energy the unit consumes in terms of

conditioner/furnace setup places the cooling coil on top of the

watts per hour over a cooling season. In 2023, the minimum rating for

furnace and utilizes the furnace’s blower as the air handler for the air

the southern U.S. will be 15 SEER, but the most efficient split system

conditioning system.

on the market can rate up to 28 SEER.

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Trane S9X2 Gas Furnace, a finalist in Best Home Technology Products at the 2021 International Builders Show, is a dealer-designed furnace that made technicians’ and end-users’ experience easier and more efficient. Blower housing rails on S9X2 make the blower housing and motor easier to slide in and out of the furnace cabinet for servicing. All of the S9X2’s nine speed taps are electronically selectable with their menu-driven Integrated Furnace Control, allowing technicians to change the airflow setting with option buttons and without having to shut down the unit or a lengthy wiring process. The new Trane furnace also resolves one of the most frustrating features of older furnaces that required technicians to disconnect gas lines, remove the entire set of burners, and replace them after cleaning. The S9X2 burners can be snapped in and out of place one at a time with no disconnections required.

Earning a 2021 Green Builder Innovation of the Year Award, the LG Multi-position Vertical Air Handling Unit (VAHU) with LGRED° (Reliable to Extreme Degrees) heating technology features an R1 compressor that can reach speeds up to 135Hz with vapor bypass and vapor injection technologies; this optimizes the VAHU for higher SEER and HSPF ratings across an extremely wide operation range. The LG VAHU is capable of delivering continuous cooling operation to 118°F, 100% heating capacity down to 5°F and continuous heating operation down to -13˚F outdoor ambient temperatures.

Challenging the status quo The move to reduce our dependence on fossil-fuel for home heating

seen them used in super

and to address the desire for single-source heating and cooling has

energy efficient homes that

led to innovation and the increased viability of mini-split systems

require only a small space

even in our hot and humid climate zones. With that, Heating Seasonal

conditioning system. But

Performance Factor (HSPF) ratings will become a more recognized

the newest air handlers

way to compare efficiency ratings. HSPF indicates the total space

have expanded efficiency

heating required during the space heating season, expressed in BTU’s,

and comfort to the point where air handlers are a more mainstream

divided by the total electrical energy consumed by the heat pump

alternative to gas furnaces any climate zone.

system during the same season, expressed in watt-hours. To earn an ENERGY STAR label, a mini-split heat pump must achieve at least 8.5 HSPF. SEER ratings are still used to rate a heat pump’s cooling

Pairing your AC to the furnace

efficiency.

If you’re upgrading or replacing an AC unit in an existing home, you

Mini-split systems implement an outdoor compressor/condenser and

just have to be certain the indoor coil must fit the space above your

indoor air-handling unit. Like a furnace, an air handler is housed in a

furnace and that the furnace has enough blower power for the AC. If

large metal cabinet where air is conditioned and circulated. The air

the AC is a staged or variable speed/modulating AC, however, it may

handling unit itself doesn’t heat or cool the air at all. Instead, it blows

be critical to match the AC to the furnace as well as the thermostat

indoor air across an internal heat exchanger or coil to add or remove

designed for the system to take advantage of communicating control

heat from the air without using heating components like the burners

features.

and heat exchanger.

If you’re building new, there are many benefits to using a like-brand

Linking the outdoor and indoor units requires only about a three-

furnace and AC. The most advanced products HVAC products

inch hole though a wall for the conduit housing the power and

feature digital control panels and compatibility for remote access

communication cables, copper tubing and a condensation drain line.

allowing owners to control temperature settings, view operational

Mini-splits have long-been a go-to solution for room additions when

data, and receive notifications, troubleshooting tips, and historical

extending or installing distribution ductwork isn’t feasible. We’ve also

performance data.

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Panasonic’s Intelli-Balance 100 balances pressure in homes, with two electronically commutated motors (ECMs) providing customizable air flow to eliminate positive or negative pressure. The unit comes with a MERV 8 air filter that prevents outdoor particulates, such as pollens and other biologic allergens, from entering the home.

Air Purification Whole-house systems offered by the major HVAC manufacturers and all put a heightened emphasis on indoor air

The Bottom Line: The higher the AFUE, HSPF and SEER rating your equipment

quality (IAQ), particularly as we begin to

is, the higher the cost is likely to be. But the more efficient it is, the more money

climb out of a global pandemic.

you can potentially save, meaning a swift payback—but not always. Remember

Trane’s IAQ program, Tranquility by

that there are other external factors that can make even your highest level of

Trane, equips builders with innovative

equipment work harder and use more energy. To avoid oversizing your HVAC,

and efficient strategies to transform

you must consider the home’s size, layout and climate zone. Bigger than needed

traditional heating, ventilation, and air conditioning (HVAC) processes through the application of building science.

This approach ensures optimized performance, energy efficiency, and

is not better; in fact, it’s worse. Furthermore, for equipment to operate at its full potential, the system must be installed the right way, your ductwork and building envelope must be adequate and devoid of air leaks, and the equipment must be properly maintained.

improved occupant health and comfort through superior temperature and humidity control. The Tranquility by Train program and Panasonic’s Intelli-

Beverly Smirnis is the co-founder of Building Savvy magazine and publishes its flagship Dallas/

Balance 100 energy recovery ventilator

Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as

(ERV) were also among the winners for

judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for

Green Builder’s 2021 Innovation of the

builders association parade events across the country.

Year Awards.

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[Savvy Finance]

The Dreaded Tax Lien

T But

By Steven Bankler, CPA

ax liens are standard tools used to recover debt payments from property and business owners.

just

because

they’re

common

doesn’t mean they aren’t devastating to a business. Depending on how your business is structured, the consequences of having a tax lien

more severe debts, your CPA may be able to negotiate a discount or an

placed on your business can be dire as it potentially trickles into

Offer in Compromise.

affecting your personal finances. Here are some things to know: 1.

A federal tax lien is filed once an IRS Notice and Demand for Payment is ignored. The tax lien is public record, which means creditors, partners, suppliers, and others may be alerted and assume your financial situation is in jeopardy (which could affect your business relationships).

2. Texas law allows contractors, subcontractors, architects/ engineers, suppliers, and even laborers to place what’s called a mechanic’s lien on property owners with unpaid invoices (other terms used are a construction lien, materialman’s lien, or supplier’s lien). They aren’t tax liens, but they will start rolling in quickly once a public tax lien is placed, and these additional payments aren’t made in time.

3. A tax lien may negatively affect your business credit score and if you’re a sole proprietor, possibly even your personal credit. If you’re a sole proprietor with a business tax lien, the

Once a lien is in place, it’s best to address payment within 30 days.

If it can’t be paid off in full by that time, it may be possible to ask for a direct debit installment agreement to pay the tax debt in five years or less. There may also be the opportunity to discharge the lien from a specific property or ask for subordination, which may allow you to move forward with a loan or mortgage while still addressing the lien.

You’ll also certainly want to go through the steps to withdraw the lien from the public record as soon as possible. If you don’t, it can remain part of your financial story for years to come.

And what if you’re not the one facing a tax lien? How can it still affect you? It’s essential to do your homework before entering a contract or starting a project to ensure no tax liens are involved. If there are, and you’re forced to file a mechanic’s lien for underpayment (or no payment), you’ll be at a disadvantage. (The IRS will always insist on being paid first.) And if it does come time to get paid on a project and the deadline is missed, act quickly. In Texas, certain notices must be sent at specific times before an official lien can be filed.

trouble doesn’t stop there. Since sole proprietor finances are intertwined with the business, your personal assets will likely be included in the lien as well.

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

The best way to avoid a tax lien is to, of course, pay your taxes on

protection, and exit strategy services for closely-held businesses. He

time. If you start getting behind on taxes and have received your

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

first notice, consider your options before your hands are tied, and

a consulting expert), business negotiations, and estate planning. Visit

a lien is already in place. It might be as straightforward as putting

www.bankler.com for additional tax strategy tips and to learn more about

an installment agreement in place with the IRS or taking a small

Steven Bankler, CPA, Ltd.

business loan to pay off the debt before it gets out of hand. For

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[Savvy Builder]

BLANCO VALLEY HOMES Texas Hill

W

hen you combine the rolling hills, the views and the unique culture that is the Texas Hill Country with the beautiful homes and

exceptional quality of Blanco Valley Homes, it’s no wonder more and more people are flocking to the area.

While most of the homes that Blanco Valley builds include a very popular list of features that buyers

“People move to the Hill Country for many reasons,” says David Anderson, owner of Blanco Valley Homes. “But perhaps the main reason is for the incredible scenery.”

in the hill country expect, the company’s expertise in understanding the topography and how a home

That’s primarily why David and Jerry Smith, his manager and builder, go to great lengths

should be oriented on a lot for the best views is what

to assess the land and position homes for optimum views.

sets them apart.

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BVH offers its homebuyers custom designed plans tailored to their unique lifestyles, or full custom drawn plans that fit the buyers wants and needs. Most include granite or composite counter tops in the kitchen and baths, brushed nickel /stainless steel faucets, walk-in showers in the master bath, architectural shingles, covered rear patios, energy efficient construction features, and a 10-year structural warranty.

When David and Jerry began looking at opportunities outside of their established presence in San Antonio, they realized the growing popularity of the Canyon Lake and Fischer new home markets was huge. Blanco became the next area that looked promising for activity for the company. The Rockin’ J Ranch has become a strong market for the team as well. The new home market is growing as Austin and San Antonio expand their cities towards each other. The cities along I 35 have seen the most impact and the smaller cities along HWY 281 have been the most promising for BVH. The big lot subdivisions outside of Blanco are proving to be the next most active in the coming years.

“Other cities in the Texas Hill Country will also be on our radar,” says David. “People love the relaxing lifestyle and we’re here to help them realize it by building homes that let them enjoy it

“We truly enjoy the interaction with our clients and look forward to the design and

to the fullest.”

construction meetings with them throughout the process. Our mantra is ‘the company

Each home undergoes numerous inspections throughout the building process including

is our family, and our homeowners are like our friends’, says Jerry. “We try to build every home as though we were building it for our best friends.”

engineering, code and energy inspections.

The construction managers meet with the homebuyers during many of the critical phases of construction and discuss methods of construction, customer selections, and to address any concerns. BVH even has several lenders to assist its buyers with both interim and mortgage financing, if needed, and title company contacts that assist in the various steps in the building process.

Whether it’s a primary residence, a retirement home, golf course home, lakefront or a vacation home, David Anderson’s 30 years of building quality homes can be seen at not only at the Rockin J Ranch, but Canyon Lake, Mountain Springs Ranch and many of the communities around Canyon Lake. Homes are priced from low $300s.

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Not surprisingly BVH has several strong, loyal partnerships with some of the best vendors, subcontractors and suppliers in the area. Here’s what some of them had to say about their experience working with David and Jerry:

“David Anderson and his crew consistently build quality homes

“David is one of those guys who extremely loyal to his crews

and give exceptional custom service. We really enjoy our

and business partners. He knows how to get things done, takes

partnership with them.”

care of business, pays us on time, is very easy to deal with. We

Lisa Hall, Centricity

couldn’t ask for a better builder to team up with. He’s been a part of our MG family for years.”

“With these guys…honesty, integrity and attention to detail really

Clint Grothues, MG Building Materials

stand out. They are great to work with.”

Kim Bohlander, CW Floors & Lighting

“They are always willing to have their homes checked and doublechecked for maximum efficiency. Most builders don’t go to the

“I’ve known Jerry and his dad for years. They’ve always stood

lengths they do to ensure a super-efficient, low energy using

out as being extremely well-organized, which makes my job

home.”

usually run very smoothly. And they always pay their people very

John Knight, Hill Country Home Energy

promptly.”

Mike Fassler, Integrity Fireplace Installations

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12402 West Ave San Antonio, TX 78216 210.340.3141

[Sales Savvy]

What Next?

By Paul Evans

THE LOCUST?

F

irst, just before Covid set in, most building product manufacturers adopted a just-in-time delivery inventory management process. This involves ordering and receiving inventory for production or sales only as needed. Because inventory is constantly on the move, the process is intended to improve efficiency in manufacturing and reduce warehousing and other costs.

Next, just before the global pandemic, we saw a large price increase by one of only two moulded

WOW is all I can say. In over 40 years in the construction industry, these are the craziest times I have ever seen. If hail and locust are next, since we did get hail as far south as San Antonio in April, I guess the locust will be arriving soon.

panel manufacturers in the country. Once the pandemic set in we anticipated a slowdown in housing starts and saw an overreaction with tens of thousands in workforce layoffs in the spring of 2020.

But the opposite happened; as housing starts climbed, vendors started getting allocations. As manufacturers saw they weren’t going to have enough product to go around, they cut our ordered material back to 50 or 75 percent of what we originally ordered for inventory to allow all vendors to get at least some material. With less inventory and more demand, prices climbed even more. The “ snowmageddon” in February was next, shutting down many factories in Texas and damaging several polymer plants, which sent us into another tailspin for glues and adhesives, leading to more allocations and price increases.

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I said to some colleagues a few months ago that getting 20 and 30

The bright light in all of this is that we all have a lot of business right

offers on a house that has been on the market for just a few days

now. I now have a true understanding of what my father meant when

or even hours is crazy and can’t last; and it is still happening! I said

he said, “Work like there is no tomorrow.” Time will tell when this

at the beginning of this year that it would be the end of summer

bubble is going to burst. Are the locusts coming? I think not, but I am

when we see a slowdown and then the prices and availability would

working like they are, and making as much hay as I can while the sun

stabilize. But now, I don’t even see that. Even if we see a seasonal

is shining, because the sun will go behind a cloud again when we least

slowdown, I don’t think we will ever see prices back to 2018 levels.

expect it. What you learn now will make you better at your business in a different market cycle. Your business will benefit if you use this as a time to learn how to navigate unprecedented costs and bank that knowledge for later.

Just a few weeks ago, I was on a panel talking about the allocations and the availability of millwork products. Builders kept asking when the price increases were going to stop and when things were going to get back to normal. I answered their questions with these questions: When are the prices of your homes going to stop going up? When are you going to start to build at a slower rate? It is all

One constant in all of this is the customer.

Remember, there are both internal and external customers that must be taken care of at all costs. Some business owners will choose to think they have more business than they can say grace over and not worry

tied together. Here’s the question that might provide the best answer: When are

if they upset a few customers. I can assure

consumers going to stop paying these prices for homes?

you that the time will come when you’ll need every customer and every good employee you can get, and now is the time to cultivate those.

The entire industry, builders included, seem to like the current sales

I can’t leave you without this reminder: Customer service will still be

price numbers, and that leads me to predict that higher prices will

alive and well in the end. This is the time to practice your listening

stick. Sure, the commodity items will still have their fluctuations as

and communication skills. Communicate with every customer about

they have in the past, but I think the days of $7 per sheet OSB and

what is going on and how, together, you are going to solve the issues

$60 moulded panel door units are gone. As long as demand for

at hand. Work to find a different widget to build the house with or a

housing continues, especially in the south, the allocations will stay in

different method of working around a time frame. Find ways to make

play and prices will continue to go up.

sure everyone is on the same page, and no one is left upset because

So, what is normal? I think we have to define normal as whatever it

what they wanted is not happening. Even if you lose a customer to

is at the given time. Maybe the building industry has moved into the

another builder because they don’t like the time frame or the product

21st century like so many other consumable items did years ago.

you have, consider they still may be a customer for you in the future

When you order something online one week and you try to order the

because you were honest and forthcoming with them upfront.

same thing again a month later, it is not uncommon to find that it is no longer available. Your search will generate several alternatives

R. Paul Evans CGA, CAPS, CGP is a native Texan with over 40 years in the

to pick from that will satisfy the need. The construction industry

construction industry. He is the VP of Millwork, Growth & Innovation for

may be headed the same way. When we can’t get this item, but we

Builders First Source/BMC. Paul has been an instructor with the NHBA

can get that one and while it’s a little different, it still does the same

University Housing for over 15 years and is one of only a handful of

thing, we’ll have to learn to be flexible and run with what is available.

Master Instructors for the NHBA in the country. He travels the country

The days of reaching out to find a better price on the exact same

teaching Sales & Marketing, Customer Service and Negotiating Skills

thing are also past. Can you get a better deal someplace? It depends

and has authored numerous articles and published three books on

on how your supplier has managed the market conditions that they

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

are being dealt. Commodity windows are 12 to 14 weeks out. While

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

not back to 2018 times, premium windows are close, at 5 to 6 weeks

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

out. So more expensive windows are at least timely and available,

professional race car driver.

and where time is money, may be the better option.

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[Savvy Sponsor]

SMARTWORLD ENERGY Meet Gustavo Mendoza

Where did you grow up? How long have you been in the area?

I was born in Colombia and came to the US (New Your City) in 1991 at the age of 22, moved to San Antonio TX in 2007.

Tell us a little about your family…

Father and mother passed away. Two siblings who live in Miami. I’m divorced and have a 3-year-old son, and a German Shepherd.

What are your hobbies/interests? Any community volunteer work or charity support?

Father and mother passed away. Two siblings who live in Miami. I’m divorced and have a 3-year-old son, and a German Shepherd.

Tell us about the events that led up to where you are now…

What are the most common misconceptions

I have always been environmentally friendly and a huge protector of our natural resources.

about your business?

I found my life purpose in solar energy when I chose to start a business that makes a

That solar energy is expensive. Most people do

difference in people’s lives and protect the environment.

not realize that solar is actually free, it pays for itself with the savings since by going solar you

What is unique about your solar energy business, what sets you apart?

will not be buying that power from the local utility

We are SmartWorld Energy and we design and install solar energy systems. Our excellent

but paying for the system.

customer service, the honesty and transparency on how we conduct business separates us from the rest. We customize each system and experience according to customer

Talk about your staff, your warranties; your

needs and expectations. We go out of our way to make sure our customers have a great

service and how this benefits the building

experience with us. Our complete follow through and service warranty is second to none.

community…

•

What has changed the most over the years, in your business?

Licensed).

Biggest challenge these days is to compete with dishonest and unethical businesses that are in the industry with the only purpose of making money and need to mislead customers

•

We are a North American Board of Certified Energy Practitioners (NABCEP) certified

to sell. They have created a lot of damage in the industry.

company.

What are some nuances about your business that builders might not readily know or be

•

aware of?

We offer lifetime warranty on the installation labor for residential systems.

•

Solar Energy is the future, every day more and more people are going solar.

•

Some states have already implemented laws to require renewable energy in new construction, it is only a matter of time before Texas makes it mandatory and we want to be there to help builders.

•

We hold a TECL (Texas Electrical Contractor

We have experience in designing solar energy systems for single homes and for master planned communities. We have the experience, knowledge and passion to make it happen at any scale.

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•

Our experienced in the industry will provide peace of mind to builders so they can

•

offer solar to their clients with confidence.

For more information please contact Gustavo at 210.853.5656.

Whether you are building a single family home or a master planned community . . .

Smartworld Energy has the knowledge, the experience and the passion to help you with your solar energy project!

Learn more today at smartworldenergy.com Contact Gustavo Mendoza at 210.465.1021

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[Savvy Special Report]

Water Heating WEIGH YOUR OPTIONS TO MAKE THE RIGHT CHOICE Selecting a water heater that

Traditional storage water heaters

works quietly and efficiently

•

use natural gas, electricity or oil to heat water and store it inside the tank until it is ready for use.

•

Electric heaters have a lower initial price (between $300 and $700 without installation) but generally

in the background of the home to provide enough

cost more to run in the long term as well as being subject to power outages.

hot water for the household to accomplish bathing, showering, and washing clothes and dishes is the

•

Gas water heaters cost more ($400 to $1,000) to purchase but are cheaper to power.

•

A family of three to four people typically needs a 40 to 60 gallon water heater. Larger families may require a water heater up to 80 gallons.

goal.

•

can be compared using the Uniform Energy Factor (UEF) ratings system, where higher scoring units produce more hot water using less energy. To earn an Energy Star certification, electric water heaters with tanks up to 55 gallons must have a UEF greater than 2. Gas water heaters with tanks up to 55 gallons only need a UEF above 0.64 or 0.68, depending on how they use water during the day.

•

Life expectancy is from 8 to 12 years on average

•

Typical warranty periods for water heaters installed for use by a single family are 6-years, 9-years, or 12-years. But it is important to know that while tanks are typically warranted against leaks due to rust, corrosion, or chemical action of the water, tank failures due to scale are usually excluded.

Tankless heaters •

warm water on demand as it’s needed rather than using a storage system, using high-powered burners powered by electricity or gas to rapidly heat water as it runs through a heat exchanger and is delivered directly to your faucets or shower.

• The 11 GPM Rinnai RU199IN

The 11 GPM Rinnai RU199IN

Sensei Super is the most powerful

Sensei Super is the most powerful

residential

residential

gas

tankless

water

gas

tankless

water

are about 30 percent more energy efficient on average than tank models.

•

cost two or three times more than storage heaters but may qualify for federal tax rebates, save by taking up

heater and delivers the maximum

heater and delivers the maximum

less valuable square footage, have a life expectancy that

attainable heating capability for a

attainable heating capability for a

is twice as long, and eliminate the worry of costly flood

residential unit (up to 199,000 BTU).

residential unit (up to 199,000 BTU).

damage.

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•

Gas models are more efficient and heat the water faster,

•

however they must be vented, driving up their initial cost.

•

in areas that rarely fall below freezing and in households with significant daytime and evening hot-water needs.

are rated by how many gallons of hot water they produce per minute (GPM) with average at 8 GPM and the very best rated at

•

11 GPM. •

thermosyphon systems implementing a system where warm water rises as cooler water sinks. They are more expensive and require a collector that must be installed below the storage

capacity to meet demand is expressed by a specification

tank. Contractors must pay careful attention to the roof design

called temperature rise — the amount of heat in degrees it can

because of the heavy storage tank.

generate at a GPH flow rate.

•

Integral collector-storage passive systems. These work best

In making the final determination about which water heating

can last 18 to 20 years.

method is best, there is much to compare and consider. Not only can improper installation of a tank water heater lead to a shorter life and voided warranty, it could pose risk of explosion from a

Earning a 2021 Home Building Product Innovation of

combination of pressure, rust, and flooding. Also consider that

the Year Award from Green Builder Media, Rheem’s

tankless unit equipment costs are not only two to three times more,

ProTerra Hybrid Electric Water Heater have a two-

so are installation costs. When it comes to hybrid water heaters,

year payback estimation because they are four

the Department of Energy advises that they be installed in a location

times more efficient than a standard electric tank.

which will stay between 40 degrees and 90 degrees Fahrenheit, and

They are available in 40 to 80 gallon models.

since their heat pumps exhaust large amounts of cold air, they must be vented from the house. Solar water heating systems require a backup system for cloudy days and times of increased demand.

The Westinghouse 4500-Watt Electric Water Heater carries

Whichever system you’re considering for water heating, it is

a lifetime warranty, boasts

important to seek advice from a reputable and knowledgeable

a huge 80-gallon tank made

plumbing contractor and use your reliable source for installation.

of lightweight stainless steel and minimizes the build-up of scale inside.

Visit our website to see what’s on sale.

Solar water heaters •

SunnCarpetsFlooringAmerica.com

implement an innovative system of panels, storage tanks, and

210.349.7866 200 W Nakoma • San Antonio

solar collectors that work together to heat water with energy created by the sun.

•

Active System types include: •

direct circulation systems that pump household water through the collectors and into the homes. These work well in climates where it rarely freezes.

•

indirect circulation systems that circulate a non-freezing, heat-transfer fluid through the collectors and a heat exchanger. These can be used for climates prone to freezing temperatures.

•

Passive Solar Water Heating Systems are typically less expensive than active systems, but not usually as efficient.

They can be more reliable and may last longer. Types include:

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[Savvy Youth Initiative]

CASA ÜBER ALLES Fredericksburg High School Program Rekindles the Trades

By Hilory Parker, Nexstream VP Business Development

T

he High School Building Trades Program originated at Fredericksburg

While program implementation was targeted at

High School in the 2016-17 school year under the name Casa Über Alles.

revitalizing the floundering trade curriculum at the

With the help of Fredericksburg builder Richard Laughlin and a team of

high school, it quickly turned into a way to restore

other local building professionals, this program gives students the ability

pride in the building trade profession, making it a

to put on a tool belt and step on a work crew the day after graduation.

sought-after model at many other schools.

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“What started as a way to rekindle the trades and foster a passion in our next generation for

Volunteers

building again, turned into something much bigger,” says Laughlin, president of, Laughlin

Students work alongside industry

Homes & Restoration. “We’re seeing kids come through our program and feeding into

professionals to receive hands-on learning;

an industry that sorely needs qualified, motivated, younger workers. It’s a win-win for

local professionals give back to the

everybody involved.”

community through volunteerism..

Building Trades Skills

Key components of the program include:

Sample multiple trades to find the perfect career to pursue.

Employment Give students a head start on employable skills without requiring a college degree.

Life Skills Even if students don’t pursue a career in the building trades, they leave the program

Teamwork

empowered to complete personal projects

Learn to work as part of a crew to complete a real-world project sold to the community.

and home maintenance.

School Credit Receive class credit and get valuable training at the same time.

Students are given the opportunity to garner on-the-job knowledge by working closely with local builders, trade partners, and suppliers while earning school credit. This prepares students who wish to enter the workforce after high school while giving contractors leads to potential employees.

Each year, the program produces a small, one-bedroom concept home — complete with a living area, kitchen, dining area, bath, closet, and laundry space — from the ground up right on campus. For eight months, local builders donate their time to work with diligent students to have the home ready to be auctioned off in the spring. All proceeds are applied to funding the next year’s concept home.

High schools around the Texas Hill Country have begun to implement their own projects modeled after Casa Über Alles and have accomplished similar goals. One of the key factors of success is community involvement.

Building professionals from the local area provide important guidance and instruction in a real-world setting. These mentors donate their time and resources to invest in the next generation of builders and blue-collar workers.

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“There’s a glaring deficit in skilled labor in the building industry, and everyone is trying to figure out what to do. And school boards are seeing the opportunity here and are looking for ways to make this happen. They realize there is a severe shortage of the trades, and acknowledge that not all of their high school seniors will end up in college ” adds Laughlin.

Casa Über Alles projects have garnered acclaim not just locally, but across the country: •

2017 Best in American Living Awards One-of-a-Kind Custom Home up to 1,500 Sq. Ft.

•

2018 Best in American Living Awards Judges Discretionary Award for Educational Building Trades Program

•

2019 Texas Association of Builders’ Star Award for Best Architectural Design Tiny House Star Award

•

2020 Texas Association of Builders’ Star Award for Best Special Project – NonPrimary Residence

For more information about Casa Über Alles check out highschoolbuildingtrades.org or call 830.798.2266.

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[Savvy Trucks & Toys]

« Ram is touting its all-new 2021 Ram 1500 TRX as “the apex predator of the truck world.” »

Performance Review Battle of Two Brand Families TRX vs. Raptor

Muscle Car Match-Up

Under the airbox cover of the all-new 2021 Ram 1500 TRX is a graphic

Ford won’t take Ram’s challenge lying down. A redesigned

displaying a Tyrannosaurus Rex overwhelming a Velociraptor and a size

2022 Ford F-150 Raptor R is anticipated to be equipped with

comparison of the two dinosaurs in the TRX’s center console, challenging the

a version of the Predator V-8 that powers the 760-hp Mustang

Ford F-150 Raptor in a not-so-subtle way. Ram says the TRX is designed bolt

Shelby GT500, a vehicle that the Savvy Driver recently had

by bolt to significantly outperform every other truck straight from the factory

the pleasure of testing at Texas Motor Speedway. Put 760

and will cement Ram as North America’s off-road truck leader. The Ram 1500

horses of supercharged 5.2-liter V-8 under the hood of a

TRX has been tested to handle the most punishing conditions with extreme

vehicle with the athleticism of a smaller and lighter sports car

durability. Class-leading, uncompromising performance in the harshest

and you get the most powerful production car Ford has ever

environments is achieved in part through the same engine powering its Dodge

built. The rear-wheel-drive coupe enters the racetrack with

cousins of the SRT Hellcat family—the supercharged 6.2-liter HEMI® V-8

attitude, sporting the Cobra snake badge and a Carbon Fiber

engine. Stratospheric power gives TRX 702 horsepower and delivers a new

Handling Package that includes 20-inch carbon-fiber wheels

level of performance: 0-60 miles per hour (mph) in 4.5 seconds, the quarter

and adjustable strut-top mounts, it emits a snarl through the

mile in 12.9 seconds at 108 mph and a top speed 118 mph.

exhaust pipes as it accelerates zero to 60 in 3.4 seconds.

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Sporting the same V8 engine as the Ram TRX, Dodge confidently roars up to any starting line with its drag-strip dominating 807-horsepower Dodge Challenger SRT Super Stock. But Dodge also makes muscle cars for the whole family with the new 797-horsepower Dodge Charger SRT Redeye, the most powerful and fastest massproduced sedan in the world, and the new 710-horsepower Dodge Durango SRT Hellcat, the most powerful SUV ever. Combined, these three muscle cars make Dodge the industry’s most powerful brand, offering more horsepower than any other American brand across its entire lineup.

Banter on social media shows how closely Ford and Stellantis (the parent company of Ram and Dodge) are watching each other.

« 2021 marks the year that Dodge is distilled into a pure performance brand, offering Hellcat-

As full-size pickup trucks make up an ever

powered SRT versions of every model across the lineup including the 807-horsepower 2021 Dodge

greater percentage of a company’s sales and

Challenger SRT Super Stock (left), 710-horsepower 2021 Dodge Durango SRT Hellcat (center) and

the disappearance of other types of coupes

the 797-horsepower 2021 Dodge Charger SRT Hellcat Redeye (right). »

and sedans vault supercharged muscle cars to the forefront, the competition is good and never-ceasing as our domestic automakers contend for market share.

« The Mustang Shelby GT500 is the most advanced, most powerful street-legal Mustang ever produced. »

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 Texas, Car of Texas and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/TheSavvyDriver

« A limited-production Mopar ’21 Ram 1500 Special Edition adds a package of unique performance parts and accessories from the Mopar Custom Shop to 1500 Lone Star Crew Cab 4x4 trucks equipped with the 5.7-liter HEMI® V-8. »

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Contact me for a quote on your next project:

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www.jasonroberts.biz Featured image photographed for Trinity Custom Builders, Inc. in Stone Creek Ranch • Fair Oaks, Texas 35

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