San Antonio Building Savvy October 2021

October 2021

San Antonio’s Homebuilding Industry Publication

HOME ELEVATOR OF TEXAS Don Zimmerman Gives Builders a Lift

PLUMBING LICENSE LAW Diamond Plumbing’s Dale Nash

DESIGNER KIMBERLY MOCKERT Professional, Artistic, Creative, Solution Seeker

PROFESSIONAL BUILDERS’ SECRETS “Think More Like Accountants”

PHOTO BY JASON ROBERTS

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OWNERS - BRIAN & TOMMY MOON

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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

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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]

It’s Now or Never!

Be Ready for Change!

Turn off the news, and tune on the “relax outdoors” setting on your smart controller! An outdoor sanctuary might just be a must-have in a world that seems to be constantly disrupted and ever-changing.

Aftermarket investments by homeowners in their outdoor living space have been particularly lucrative for remodelers, especially since the pandemic set in. Some have decided that their desire for better outdoor living space is a reason to shop for a new home. Their expectations and assumptions about what a new home should include have been forever raised when it comes to outdoor living areas.

Professional Builders’ Secrets is the title of our

We’re not the only major industry affected by

new column designed to help you plan strategy

constant change. There are a lot of valuable

and future proof your business and be ready to

lessons and motivating similarities in comparing

pivot and adapt as quickly as buyer demands

the race to remain relevant in the automotive

do. You may be selling your houses fast and

industry in the age of electrification to our own

quick now, regardless of whether you’re keeping

industry’s race to train new talent and adjust to

up, but we all know about the inevitability of a

new processes, too. Like automakers, we can’t

cyclical economy, and we also know too well

assume just because our brand may have been

how quickly things can change due to the

around a long time, and our housing market has

economy or any number of other factors.

been one of the country’s most desireable, it’s

If you’re not already familiar with the concept of “fintech” get used to it! The Savvy Special

going to remain relevant unless we prepare and adapt.

Report will get you caught up on how technology is transforming the home buying process. The well-funded entrepreneurs behind a host of startup fintech companies seem to all have their eye on Texas as a top priority market—for good reason as we continue to draw people who are not too afraid of change to pick up and move themselves across the country because of our ripe business climate.

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Terry Kemmy Publisher 210.844.1542

[Industry News]

WHAT ARE THE CHALLENGES FACING HOME BUILDERS IN 2021?

by Scott Whisenant, VP StrucSure Home Warranty

I

n the wake of the pandemic and the many uncertainties that it brought and continues to bring, there’s no doubt that businesses across the entire spectrum are now facing a considerable number of challenges.

Getting back to “business as usual” is not quite as simple as it appears.

One industry particularly affected is building and construction. There are significant challenges ahead, that’s for sure. But it’s not all doom and gloom. There are also some great opportunities that homebuilders can take advantage of.

Let’s look at the bad news first and then consider the silver lining.

Recruitment Has Stagnated To create a building, you need people to carry out the work. If you have no people, then you have no construction. Unfortunately, one of the side-effects of the pandemic is that many workers were laid off when construction halted in 2020. Lots of these individuals have since found work outside of the construction industry or have moved on to other projects.

While recruitment has recovered somewhat during summer, the demand for construction still outweighs the number of human resources available. That means there are loads of building projects raring to go, but no one is around to do them.

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The Cost of Materials Has Increased The pandemic slowed and stalled supply chains across the world,

•

Social distancing and confinement brought technology to the

making some materials hard to come by. Many companies knew

forefront in many industries. Construction has also seen a

these increases were coming and hoarded materials, which has

dramatic increase in the technology department. From drones

exacerbated the price issue. As such, the cost of raw materials for

used for surveying to wearable safety sensors and software

construction has increased dramatically. The following materials

designed to optimize the use of materials, using technology will

have particularly been affected:

give the contractor a competitive advantage.

•

Softwood Lumber: now 73% more

•

Iron: now 15% more

•

Steel: 15% more

•

Part of the second COVID-19 relief bill includes money for construction projects. Each state also gets a $100 million Capital Projects Fund out of a $10 billion pot. The rest is to be allocated by state according to needs. Its purpose is to improve and increase infrastructure in the areas that need it most.

The increase in softwood prices has been most significant in

So, while the road ahead is undoubtedly bumpy for the construction

the residential housing sector, with a family home now costing

industry, technology and the relief fund will help ease the struggle.

upwards of $16,000 extra. The rise in metal prices has been felt

As we move further out of the pandemic and toward normality,

more in commercial building projects.

things will continue to improve. One thing is for sure: no matter the circumstances, construction will always be required. And StrucSure

The Silver Lining

Home Warranty will be right by your side with solutions, support, and

Prices and recruitment will eventually return to normal, but this

security.

will take time. Meanwhile, there are a couple of opportunities that construction companies can benefit from:

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[Focus Section]

LIVING SPACES Outdoors is Just as Important as Indoors

By Beverly Smirnis

H

Planning for the outdoor living area should start pre-construction with a site analysis. Careful analysis of any existing trees as well as desirable and undesirable sightlines can influence the entire home design. omebuyers have typically invested in aftermarket alterations and remodels after

move-in, making outdoor living projects a hot commodity for remodelers. Post-Covid, new homebuyers cite better outdoor living space as one of their top priorities and thus expect to find much more than a postage

Soil moisture conditions and pH levels should dictate for your grass, shrub and tree selections. Keep in mind that sweeping lawns with sprawling amounts of water-hungry grass that requires mowing are passé.

Hardscapes and decks surrounded by water-saving native plants and native greenscapes are in. Some grass area is good, says The Lawn Institute, because lawns produce oxygen, sequester carbon and keep temperatures down in urban and suburban areas, but strive to use drought tolerant grass varieties. These same benefits can come from preserving and adding trees to the site, plus trees can help stabilize soil, absorb rainwater and block wind.

Just like a good designer draws an indoor kitchen with consideration for food prep, cooking, serving, storage and cleanup or the living/dining rooms with consideration of where furniture can be placed, the same process should be used in planning the outdoor kitchen and living spaces. Spaces that provide shelter, such as roof covers, screens, pergolas, gazebos and awnings, can help transition spaces and create “intimate sanctuary spaces” says Green Builders Outdoor Living Guide.

stamp of concrete included

Specify folding or sliding doors and windows to blur the lines between inside and out. To make your

in the backyard of their new

outdoor space cohesive with the rest of your home, use similar colors inside and out for a seamless

home. Today, experts contend

transition. Inside, incorporate colors that complement the trees, plants and rocks outside; outside pick up

that the size of the outdoor

colors that are used for interior accents and décor. Scored and colored concrete, clay bricks, flagstone, patio

living area should correspond

pavers and ceramic tile made for the outdoors can be great opportunities to accent. Landscaping gravel

with the size of the house.

and sand, available in a variety of colors and textures, can be used to add a pop of color.

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The railing category is one area that has undergone significant changes, reports an NAHB Best in American Living™ article, noting a wide variety of opportunities to customize with color options and rail styles. Weather-resistant aluminum railing systems with thin aluminum cables allowing for a full unobstructed view of the surrounding areas are the hot ticket. Using glass as the infill material in your railing system can create a windbreak; frost it to add privacy without entirely blocking RDI by Barrette Outdoor Living’s Finyl

The Latitudes Horizontal Rod Rail

Line is a low-maintenance vinyl railing

by RDI features horizontal ½” round

reinforced with strong aluminum

steel rods.

sunlight. Luminii’s handrail lighting system makes it easy to beautifully illuminate pathways.

stiffeners that run the full length of

A solid outdoor lighting plan adds safety

both the top and bottom rails. Create

and security, but with the availability of

a custom look with many choices of

outdoor-rated chandeliers and pendants,

infill, top rail and color options.

lighting can also add a decorative accent.

Smart appliances and irrigation are a must-have. Specifying storage solutions

As part of the site assessment for new construction, make it a practice to analyze native species that can be incorporated into the landscape design.

for added convenience or to keep the outdoor space clutter-free are just as important outside as inside, too. How about a built-in storage area for blankets

Besides the feature attractions of your outdoor living plan, be sure the building budget includes allocation for landscaping material, smart irrigation and installation costs as well as accents and special features. Outdoor heaters and fireplaces or fire pits can extend the outdoor living season in winter, while shaded areas and cool misting systems allow for more tolerable time

positioned nearby that fire pit? What about an outdoor shower and change room with plenty of hooks to hang wet bathing suits and towels?

outdoors in the heat of summer. Add retractable outdoor screens to minimize solar heat gain,

Get outdoor living right and your homes

let the fresh air in and keep the bugs out.

will sell even quicker and appraise for higher value. Homeowners will be inviting their friends over for backyard entertainment, and some of them will

International Builders Show Best of IBSx winner in the Outdoor Products category

come knocking at your door to buy a home with “a better outdoor living experience” as a top priority on their wish list.

was Axis Smart Glass Bioclimatic System, a pergola system with smart glass as well as rain and wind sensors.

The sensor control louvres tilt and

Merchandize your model homes around

silently rotate up to 90 degrees, and with the flip of a switch glass

the things that an active community

can go from being clear and transparent to being frosted and opaque.

enjoys by incorporating an edible garden, putting green, sports court or exercise

Scan the QR code to see a video.

pool.

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[Savvy Special Report]

TECHNOLOGY IS TRANSFORMING THE HOME BUYING PROCESS Thanks to its fintech collaborations,

What was once only accomplished through a live, in-person process, can now be completed virtually, in whole or in part.

a Meritage buyer could qualify for a mortgage, electronically remit their earnest deposit, sign their sales agreement, receive guaranteed on-demand homeowners’

E

insurance quotes on their selected ven before the impact of the pandemic, virtual homebuying technologies had grown exponentially in popularity, catapulting the housing industry forward and shaping the future of real estate for homebuilders and customers alike,” said Phillippe Lord, CEO of

Meritage Homes.

On Meritage’s website, the home search starts with helpful videos and articles on home ownership and financing as well as highlights of its specific energy-efficient and healthy home offerings. The digital solutions then guide customers through a curated search of available inventory and offers virtual tours of its models. During the pandemic many builders were struggling to follow the virtual home tour lead that Meritage and other were already offering.

Whether they are buying their first home or a homebuying veteran, it is now an expectation that before ever stepping foot in the door, prospective homebuyers should be able to start their home search online to get a sense of how it would feel to live in a particular home. With a few clicks, they should be able to view photos, floorplans, online video tours, interactive maps and digital community brochures.

home, and even close on a home online in states that allow it. Texas was one of the first states in the nation to adopt Remote Online Notarization (RON). Using “eNotarization,” many lenders, real estate professionals and home buyers and sellers are now performing digital mortgage closing and title transfer.

According to Zillow’s New Construction Consumer Housing Trends Report 2020, it’s not surprising that the majority of potential new home buyers said they would still tour homes in-person before making a purchase decision; 64% said they would prefer to self-tour homes on

“Fintech” (financial technology) and specifically the “iBuying” process was garnering headlines

their own time without an agent or sales

already in 2019, well before Covid lockdowns. iBuying is the process that allows buyers to

rep when experiencing a home for the

choose their home and then sell their existing home to OpenDoor or Zillow, using the equity in

first time. To allow customers to choose

the existing home to serve as the down payment on the new home and saving the buyer the

a homebuying path that aligns with their

hassle of having to show and sell their home, and possibly lose the deal if the sale didn’t happen

personal shopping style, latest addition

promptly. No longer would contingencies need to be added to real estate contractors when

to Meritage’s tech tool portfolio is the

you combined iBuying and a digital mortgage approval process.

UTour program. In select locations, the

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UTour process now makes it easy for shoppers on the Meritage site to sign up for no-contact self-guided tours using the technology provided by UTour.

The Real Deal Real Estate News notes that venture

Now, after first touring a home virtually

investors have been writing big checks to fund

on the Meritage website, the shopper

fintech start-ups since the beginning of 2021,

can select a date and time to tour the

noting that startups like Divvy and Flyhomes

home at their convenience. They create

(and now Tomo) have drawn support with unique

a UTour account, verify their identity and receive an email with home details and a

solutions to address the current environment.

digital code to unlock the front door. An automated pre-tour nurturing campaign is delivered to the home shopper via email and text, and the sales team is simultaneously notified that the new tour is scheduled.

Divvy’s “rent-to-own” financing option gives renters the chance to build equity credits. The homebuyer contributes 2% of the home value at closing and pays monthly rent, building up to 10% equity

As the prospect arrives to tour the home, they receive a text message,

in the home over three years. The idea is for buyers who can’t

encouraging them to reach out to the sales team during or after the

afford to buy at the outset, could in time qualify for a traditional

tour. With the optional AI voice or chatbot feature, shoppers can use

mortgage and own the equity in the home they already live in.

their Iphone to ask questions about the home or community. If desired,

In hot housing markets, buyers losing out on houses to people

they can be connected to a live video chat with a salesperson. The

who make all-cash offers might find an answer in Flyhomes, a

entry code expires one hour after the tour’s scheduled start time. The

brokerage firm that makes cash offers on behalf of clients and

builder gets a detailed report about the visitor’s engagement with the AI

includes mortgage, title and escrow, and contractor support as

technologies during their tour.

part of its service.

After their tour, an automated email and text message are sent to the

Where Tomo differs from other automated startups is that it

prospect, suggesting next steps with the sales team. The shopper can

doesn’t cut real estate agents out of the home purchase process.

also ask questions and engage with the AI chatbox after their self-tour

Tomo execs say local agents who know the ins and outs of

by simply texting their questions to get instant automated answers.

their local market are essential with the rise of pocket listings

The sales team follows its usual process to nurture and convert the

and other backdoors in the current buying frenzy atmosphere.

prospect.

Tomo promises can generate pre-approvals within hours, not days. From there, Tomo Brokerage connects buyers to a local

“We embrace innovation to improve and optimize the overall customer

agent through a strategic partnership with real estate industry

experience whether buyers choose to interact with us in-person, online

coaching and training guru Tom Ferry. After a purchase contract

or a mix of both, while ensuring 24/7 customer support,” Lord said. “Our

is signed, Tomo makes another promise that it will cut the

goal as a builder is to provide the solutions that ensure a seamless

industry’s average time to close (47 days) by as much as 55%.

process for our buyers from start to finish.”

Tomo will target areas where rising home prices and competition

What Lord calls “a seamless process” was also the topic of a

are crippling first-time and millennial homebuyers, launching

presentation titled “Frictionless Finance Models” made at a housing

initially in Dallas, Houston and Seattle.

conference by Washington Center for Real Estate Research and Fannie

Statements by the recent startup fintech entrepreneurs say their

Mae. The discussion recounted how great entrepreneurs are coming

intent is to restore--not further remove— the personal touch, the

from industries outside of real estate and moving into this category,

humanity, and the excitement that should come in purchasing

because so many of them had experienced acute pain points around

a home. As single-family homes become commoditized by

real estate transactions.

“In today’s housing market, buying is not an enjoyable experience; it has become competitive, stressful, and confusing, and too many people

investors and with home prices continuing to escalate, they believe automated processes can level the playing field for the average home buyer who would otherwise see the American

are coming away from it empty-handed. We are going to change that,”

dream moving further and further out of their reach.

said CEO and Co-Founder Greg Schwartz of Tomo, which just launched its end-to-end digital mortgage and home purchasing platform in June armed with $70 million in seed funding.

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[Plumber’s Perspective]

PLUMBING LICENSE LAW It’s enforcement and how it affects supply and demand

T

here are four categories of licensing which are necessary to perform plumbing legally in the state of Texas. These licensing titles are labeled as Apprentice, Tradesman, Journeyman and Master.

Apprentice being the beginning of the process, one

must obtain 4,000 hours under the direct supervision of a licensed plumber in order to take a 24-hour training course and qualify to test for a Tradesman license. The required courses are often paid for by plumbing companies who are willing to invest in employees who wish to advance in their career. The Tradesman license is limited to only being able to perform residential services such as service calls and new residential construction.

The Journeyman license requires 8,000 hours under direct supervision and you must complete a 48-hour training course in order to be qualified to test. In obtaining a Journeyman license, one can perform work on either residential or commercial.

And lastly, there is the Master Plumbing license. Obtaining a Master license requires holding a Journeyman license for four years and taking the required training course before testing. Master plumbers – once certified by the state – can perform work, hold the license for

by Dale Nash

any company who seeks to contract plumbing work, or open their own

President, Diamond Plumbing

company once an 8-hour business class has been completed.

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Let’s think about that for a minute...so you can conduct business

on licensed contractors to assure proper installations and their

performing plumbing work with just eight hours of required

accountability. Not penalize them and make things more difficult.

education and bam you’re in business whether you understand how

Contractors are still bound to the written contracts in upholding

a business is run or not. Where this situation could pose a problem

standards of performance, insurance policies to protect the customer,

to the market is how one conducts that business. Often, competition

and most importantly provide services that meet code regardless if

can become an issue when competing for contacts. While

it’s in the county or a municipality.

established plumbing contractors may have the staff to accomplish such contracts, this sometimes comes at a higher price depending on plumbing license law and where work is being performed.

At this point, you have to wonder if the greater area and other parts of Texas will recognize the actions taken by San Antonio and begin to follow suit. This possible snowball effect could end up being very

In most municipalities, it is required that a licensed plumber overlook

difficult to deal with in the future and couldn’t have been presented

and be present daily on every job prior to calling a project in for an

at a better time while construction projects continually deal with the

inspection. Yet in the county where municipalities do not perform

increasing problem of labor and supply shortages.

inspections, work can be performed by apprentices only under a licensed contractor and without the said supervision.

Let’s back up a second and think about that. So, “inspected” jobs in municipalities that require plumbing licenses on site is mandatory, but in the county it is not required and the plumbing is not being inspected? This is Texas law. Seems contradicting when you look at it, but in any event the plumbing contractor holds all liability for the work performed regardless of whether it is inspected or not.

About the Author - Dale Nash, a Master Plumber, is President of Diamond Plumbing and a member of the Plumbing-Heating-Cooling Contractors Association. Diamond Plumbing specializes in new residential construction, custom and production homes, plumbing remodel, general plumbing services, water softener sales and installation.

So the question is....why is it necessary for a licensed plumber to even be present on site? An inspector’s job is to protect the municipality and its citizens, while a plumbers responsibility is to protect its company, employees and customers. It is the plumbing contractor’s responsibility to assure proper installation and provide protection for the liabilities that they engage in.

In states such as Florida, this is recognized. A master must hold proper licensing but can employ apprentices to perform work without being under the direct supervision of a licensed plumber on site. Tentatively, the work is performed, managed and warranted

Visit our website to see what’s on sale.

under the plumbing contractor whether it is inspected or not by a municipality. This comes as great news for the construction industry in an environment where the labor force is already handicapped and challenged. Given the common sense of such a scenario, it is becoming more necessary that the Texas state board of plumbing examiners (TSBPE), should begin to take note of the ongoing issues of labor shortage and entertain making such an adjustment.

In retrospect, the City of San Antonio has recently decided to organize a task force to enforce plumbing license law as well as other required licensing. San Antonio is now targeting plumbing contractors who are not compliant and have even suspended some contractors from being able to perform work in the municipality for 60 days. This means that current projects under construction are

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Although we can all agree that properly trained professionals and licensing should continue to exist, we should be able to rely more

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[Savvy Designer]

KIMBERLY MOCKERT, CPBD

K

imberly Mockert has been at her craft – designing homes – for more than two decades and has worked with dozens of seasoned, successful home builders. She started KM Designs in 2003 and over the years has garnered multiple Summit Awards, and a national Silver Award from NAHB. Most recently she was awarded Best Floor Plan at the 2021 GSABA Parade of Homes for her Ashton Custom Homes design. That home also was awarded two ARDA’s (American Residential Design Awards from AIBD) for model home and published design.

Mockert is the current sitting President of the National Council of

A Certified Professional Building Designer (CPBD), Mockert adheres to

Building Designer Certification (NCBDC), a member of American

the guidelines and best practices of the organization while maintaining

Institute of Building Design (AIBD) and the Texas Institute of

her certification. Her team at KM Designs believes every house is a

Building Design (TIBD). And of course she is a member of GSABA,

home, no matter the size and every project is given the same care for detail. Their success stems from their ability to listen to the clients’ wants and needs and turn these aspirations into well-designed dream homes.

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TAB and NAHB.

Q: What has changed the most about the industry since you started?

A: The constant changing design tends. Some styles in architecture are beautiful and timeless …. others, not so much. I like the classical styles of architecture. I feel there is beauty in the details and art in the craftsmanship. Some of the more modern homes, while beautiful in their own right, sometimes lack the warm character that the classic styles have. I think the changing trends tend to date the homes being built.

Q: What is your design process and who is your ideal client?

A: My designs start with meeting clients on their property. Establishing a relationship on their territory is very important to building trust. I like to get their feedback on views and how they imagine their home looks on their property. I then have them to my office for a design meeting to discuss their wants and needs. We discuss the style they desire, where we look at pictures they have collected. We discuss the functionality of the home and how to design a home that works with their lifestyle while incorporating the surroundings. Considering views, sunrise and sunsets, wind directions and how we can utilize all of those features in the design of their home.

Learning how they live is so important to providing the proper flow to a home that works for them while considering how it will function in the future as they age in place.

There is no ideal client and that is the beauty of what I do. Each client brings a unique idea, challenge and perspective to my process. I love the challenge of trying to meet their expectations. I really have the coolest job in the world, I get to be the person at the start of making people’s dreams come true. Not many people can say that.

Q: What got you into home design and when did you start?

A: In the mid 90’s I was working for an engineering firm as

Q: What types of things do you include in your homes that others might overlook or not include?

a draftsperson for commercial structural and MEP. Due to

A: I provide a design from a woman’s perspective. I have been a wife; I am

unforeseen circumstances, I lost my job. I was challenged with

a mother; I cook; I clean; I do laundry. I think about the proper places for

trying a different avenue in residential design, also working as a

the small items and where those best function. I design a home as if I had

drafter for a local designer, Jim Cox, CPBD. I was given a job and

to live in it, considering where I would put things away. I want the home to

that opportunity led to the most amazing education I could get

be comfortable, cozy and functional while being esthetically pleasing and

on the job and the introduction to a new career.

a place where you feel like you can relax and just enjoy it, inside and out.

Q: What lessons have you learned along the way that you might tell someone just starting down this career path?

A: I had to learn the difference between being assertive and being arrogant, which is a fine line. I am very opinionated and the builders I work with, I think appreciate it sometimes (lol), but I have learned when my opinion matters and when it does not.

Learning to be compassionate and listening to what people want, their hopes, their desires and their dreams for their dream homes is by far the most important thing. Knowing structurally how to make the wants and needs become reality is necessary, but being able to think on your feet, problem solve and come up with an alternative solution to a design request is imperative.

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Here’s what some of Kim’s trusted builders and colleagues had to share: “With Kim, her knowledge and her ability to listen to customers... If they want something in particular, and it may not work… she’s usually able to give them a workable solution, and point them in the right direction with great feedback based on her experience.”

– Beau Walker - West Ridge Construction “I have been working with Kimberly for nearly 10 years and find her to be an extremely talented designer. She has a very good handle on construction, which allows her to produce a high quality, accurate set of plans. “ – Jerry Smith - DAH “Kimberly does a good job listening to her clients. We’ve worked with others who don’t listen to our professional input and it usually causes problems. She’s great to work with.”

– Chad Lewellyn - Panache Landscaping “She follows through with what she says she’s gonna do.

Clients love her. Kimberly is very professional, creative, artistic and organized…and that’s very rare and hard to find.”

– Anya Hahn - Olinova Designs “She puts an artistic touch on every house she designs…. she makes those personal ideas and thoughts from her clients come alive. Very unique designs and touches.”

– Robert Allison, Builder “Her attention to detail is incredible. Her plans are spot on! Everything lines up and that is huge. She knows what she is doing. She actually gets it. She’ll do everything in her power to get the customer what they want.”

– Jason Gallas - Tri-Built Services “She’s such a pleasure to deal with. What stands out with Kimberly is her ability to listen. She asked great questions. We went through our house, room by room,

Q What can you tell us about your relationships with your builders

and discussed specific details about functionality and

and partners?

my personal preferences so she could design a space

A: I think I have a great relationship with my builders, each builder

that totally works for us.”

is a family member in my perspective. We have respect for each

– Cassandra Lewellyn, Homeowner

other and understand each other’s boundaries. They trust me to do what I do best and with the proper communication, they are able to take my design ideas, the client’s selections and turn the homes into masterpieces.

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INCR EASED

COM F OR T

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IM P R OV E D

E N E R GY

E F F I C I E N CY

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U P DAT E D

C U R B

A P P E AL

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

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[High School Trades]

LOCAL TILE COMPANY STEPS UP

by Cody Cox, Cox Tile

Editor’s Note - Cox Tile was started in1981 by my father, John Cox. His mission was tobe the company that people look to for the most challenging, difficult, and technical installations thatcame across the tile industry. From its inception,John has worked tirelessly on creating the reputation of a very high standard of quality that wework to live up to every day.

We’ve been blessed with numerous national and local awards for different tile and stone installations. We have

o, what began as a simple summer hiring tactic three

been able to win these awards due to our involvement in

years ago, became a campaign to help the youth in our community in their search for career guidance.

the National Tile Contractors Association (NTCA), American National Standards Institute (ANSI), Ceramic Tile Education Foundation (CTEF) and The Tile Council of North America (TCNA). These standards are the methods that we utilize to create successful and beautiful installations.)

We wanted to offer summer internships to remind the younger generation that learning a trade is a valuable avenue to a successful career. The beginning was slow and tough to get counselors and teachers on board, but as interest grew, so did the opportunity for guidance across the board.

In one case, I was instructed to go to a school and give a small presentation about trades, college readiness, and life lessons, and ended up giving a presentation to over 300 young adults. My topics covered the opportunities that Cox Tile could offer in summer apprenticeships, but also spanned way beyond what I originally thought this campaign was going to target.

After my initial presentation of our company, I began to talk about some life skills that I learned being someone who went to college and still entered a trade afterward. Everything from finding what makes you happy, to realizing when you are entering a career path

Cox Tile President, John Cox, instructs students in the field.

for the wrong reasons. I then opened the

22

floor to questions about anything they wanted to know. After the group got a chuckle

what school is teaching, you may not necessarily

when I said, “I’m still young, I am only 25” (they literally laughed at me) I was able to get

pick up on those skills.

past the outer wall and relate to them on a more personal level. This led to questions regarding actual daily work environment and lifestyle as well as what all it would take in order to achieve some of these goals. All in all, the answer is always simple… It is hard work.

I have given presentations to a number of students after these past several years.

Everything from an auditorium of 300 students, to a single class, to a one-on-one basis.

The single classroom setting is more engaging because it allows us to bring in some of the more fun tile tools and the actual setting materials for the class to experiment with.

We have large wet band saws that I grew up with and allow the fun creative part of tile to come out into play. You can scroll your name, make a puzzle, create a picture out of tile, or create whatever the mind can imagine. This is when you can see the younger generation spark interest. It gives them a glimpse of how the creativity within what we do as trades people is expressed with the jobs we work on every day.

Finally, they showed us that there is a good percentage of young adults that have what it takes to be excited about and perform this work.

There will always be the generational differences and how one thinks differently than the next, but the fact remains that the future is here. It is up to us as contractors, teachers, and business professionals to double down on showing individuals the true options of life. One thing that will help show the trades in a good spotlight is social media revealing the great work and creativity that are incorporated in each project.

We must be diligent in using this tool to attract

From one of those classroom setting presentations, we were able to hire two young

the next generation of trades people. We need to

men three years ago for that summer. They were a great addition to the team. Both

constantly show them that you can still make a

were bound for college at Texas A&M University, but after working in the field all

great living as a tradesperson and live a great life.

summer, they gave great feedback in several categories.

When I first started this project I was just focused

First, they gave us some tips on what we can do to help inspire their peers in the

on getting summer hires. But this quickly shifted

younger grades. One thing we learned is that we must constantly be adapting and

into getting the younger generation excited

adjusting our game plan to reach and relate to future generations. In fact, Mike Rowe

exploring career options they may not have been

from the TV show Dirty Jobs has a massive foundation to help push the idea of a

considering. College isn’t for everyone and the

trade as a career. His publicity is something that can help us show the classes that

construction trades provide a viable career path

our message is more than just a single tile company initiative, but rather a national

for a wide audience.

movement.

It is our job to make sure the future generation

Secondly, they gave us great insight in that they realized how much of a gap there is

knows the options out there as well as get them

from a sit-down classroom setting to the real world. The creativity and problem-solving

excited about being able to work with their hands

techniques that we have as second nature in the field are not specifically taught in

doing whatever makes them happy.

schools. There are exceptions of course, but unless you are completely engaged in

23

[Professional Builders’ Secrets]

BUILDERS MUST PLAN TO AVOID BUSINESS BLOW OUT The Association of Professional Builders’ (APB) 2021 State of Residential Construction Industry (SORCI) report indicates that builders across the country have seen record increases in revenue and net profit as many homeowners sought to improve their living environments because of the COVID-19 pandemic. The residential home building industry outlook for 2022, however, isn’t quite as positive.

“This unprecedented demand isn’t sustainable and savvy builders will need to think more like accountants,” says Erik Cofield, an Executive Business Coach with APB based in Houston.

APB’s global report breaks out pain points for U.S. builders, showing that more than 55% of the builders in the U.S. never calculate their work in progress accounting adjustment figure. This indicates that they are at significant risk of growing too quickly because they don’t understand their true financial position, Cofield said, adding that this puts them in a position where they are likely to pay higher taxes and experience severe cash flow challenges, particularly

based on data, experience, and results. Building Savvy’s new series of articles and education seminars will glean from APB’s vast library of coaching curriculum, and the expertise and experience of the APB team. Topics will range from construction business coaching to sales training, marketing insights and financials coaching. The goal is to share ideas on how to create a systemized residential building company to generate more leads, earn more money for your services and deliver a better client experience.

when sales begin to slow down.

Nearly two-thirds of the of respondents from the SORCI survey had no formal sales process in place, and the vast majority (78.8%) had no succession plan to future-proof their business, should the unthinkable happen. With these findings in mind, it’s no surprise builders have identified systemizing their business as one of the top priorities for 2021. Most American

The comprehensive SORCI report also dives into trends in sales, contracts, social media, marketing and advertising within the industry. Data from the report also covered insights from residential builders for lead generation, team building, project management, planning, owner’s remuneration, financials and self-development. To find out more about the state of the residential construction industry, a copy of the report can be purchased by scanning this QR code.

home builders (80%) don’t charge for quotes, and 80% of American home builders also do not have a business plan covering the next three years.

APB is a business coaching service for custom home builders in the United States, Australia, New Zealand, and Canada. The organization provides tested and proven systems for builders to scale and succeed,

24

APB’S WORK IN THE INDUSTRY APB has worked with thousands of builders, coaching residential building companies to systemize their business, including KiaDom Mini Homes, based in Queensland, Australia.

You can read more about Greg Kite’s business growth success story as well as others here:

Greg Kite, Managing Director of KiaDom Mini Homes said the best part of the program was being held accountable and actually taking the step back to work, “on the business, rather than in the business.”

“APB has ensured that a lot of the systems and operations that we’ve been wanting to document and put in place for so long – that we’d put aside, that we’ve been too busy to do – have all been put in place, documented, all ready to go. So at any point, we can just have a look at what we’ve been doing and follow the system,” Mr Kite said.

This included hiring two A-team players, recreating their proposals, and implementing successful business systems and processes to ensure accountability and opportunities for better growth.

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[Savvy Finance]

By Steven Bankler, CPA

START ADDING UP YOUR 2021 TAX DEDUCTIONS

Remember These COVID-19 Deductions

Did you borrow Paycheck Protection Program (PPP) funds?

As the COVID-19 pandemic swept the

Now that round two of the PPP application process is closed, it’s time to focus on loan

world, tax and financial relief efforts were

forgiveness and tax deductions. Deductions are now allowed for normally deductible

sped along to help business owners stay

expenses, even when funded by a forgiven PPP loan. If you missed that opportunity on

afloat. Then, as 2021 settled in, some of

your 2020 tax, you could deduct the expenses on your 2021 tax return instead of filing an

those efforts trickled away. So, where do

amended return.

you stand as a business owner? What COVID-19 tax deductions should be accounted for before the year’s end? Here are a few areas to consider:

Did you take out other relief loans?

Under certain COVID-19-era laws, several Small Business Administration (SBA) loans and grants are excluded from gross income and don’t increase the basis of funded assets.

Many of the expenses paid with the funds are deductible, too, which is an added bonus.

26

Did you provide employees paid leave for reasons related to

Are you unsure whether your 2019 and 2020 taxes were correct?

COVID-19?

Just as the PPP rules changed after some business owners already

In July 2021, the IRS expanded tax credits to employers offering

filed their taxes, some other COVID-era changes may have affected

paid time off, this time to employees who need to take a family

your past tax returns including sudden net operating losses (NOLs)

or household member or other individuals to get vaccinated for

and asset depreciation strategies. You have every right to file an

COVID-19 or to care for them as they recover from a vaccination. Be

amended return if there’s an issue that affects your filing status,

sure to claim tax credit for these and past coverage for both paid sick

income, deductions, or credits. Some changes—like those affecting

leave and expanded family and medical leave.

bonus depreciation—must be made before the proceeding year’s tax return is filed, so don’t put it off.

Did you retain employees even as you lost revenue?

The list of considerations could go on and on. The bottom line: It’s not

The Employee Retention Credit (ERC) is a bit of a moving target right

too early to start adding up your 2021 tax deductions, especially when

now, which may be good or bad news, depending on your previous

PPP and large business expenses—or business expenses outside the

eligibility. With an extended qualification period, broader definition on

norm—are in the mix.

who qualifies, and a new safe harbor for expenses using forgiven PPP loans, it’s critical to address any questions you have now before the end of the year.

Did your business expenses change?

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

Your cost of goods sold and capital expenses likely fluctuated along

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

with demand and the supply chain. You may have also shifted how

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

and where you conduct business—from using your own car to setting

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

up shop at home. Employee pay (including yours), the cost of health

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

and safety supplies, retirement plans, rent, and insurance: These

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

factors may have all changed in one way or another. With this many

Bankler, CPA, Ltd.

moving parts, it’s essential to re-evaluate your business expenses and how you deduct them.

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29

[Savvy Trucks & Toys]

THE AGE OF ELECTRIFICATION KEEPS AUTOMAKERS ON THEIR TOES

By Beverly & Steve Smirnis

C

« Ford F-150 Lightning Pro (pre-production model) »

“

Now with old-timers and newcomers joining the EV bandwagon, time will tell who will remain relevant and which brands will fall by the wayside as the automotive

hevy was the first automaker out of the gate in the race to produce the first affordable long-range EV, introducing the Bolt

EV in 2017. Its 65 kWh battery pack delivers an impressive EPA-estimated range of 259. The powertrain is a permanent magnet electric motor driving the front wheels, outputting 200 hp and 266 lb-ft of torque with a 0 to 60 mph time of 6.5 seconds and a top speed of 93 mph. With all these

EV segment continues to grow across the board--from

accomplishments and nearly a year of headstart on the rival Tesla 3,

affordable vehicles to luxury vehicles. Even all-electric

Chevy got accolades that the brand needed with the Bolt. But the Model 3

“

pickups are on the way.

was the sexy newcomer with better looks, an edge on all the rankings and a negligible difference in starting price, ultimately winning the competition with much higher sales figures

30

Chevy’s answer with the 2022 Bolt is a refreshed interior and exterior, more standard options and a lower starting price. Bolt pricing now starts at $31,995 ($5,500 less for base trim than the 2021 model) and $35,495 ($7,500 less than the previous model) for the 2LT trim. Chevy continues maneuvering to stay relevant in the big leagues, introducing the 2022 Bolt EUV for just about $2,000 more than the 2022 Bolt.

The Bolt is far and away besting the Nissan Leaf on price, power and battery—with the Chevy nearly doubling the Nissan’s range. « Ford Mustang Mach-E »

In the luxury EV class, the handsome and sporty Ford Mustang Mach-E is turning heads and rating high against its plentiful pool of rivals that include the Telsa Model Y, Audi e-tron and Jaguar I-Pace.

Electric-only power is very limited with the gas kicking in for a smooth

All-new for 2021, it was designed specifically to be an electric vehicle

output, but the transmission is criticized for struggling with low-

while its driving experience delivers to the Mustang name. Our tester

speed, light-throttle situations such as heavy traffic. Another kink to

was the Premium with AWD with MSRP of $49,700 (AWD adding

work out is the braking, but handling and ride are right on. The F-150

about $2500 more than the starting price Mach-E). The extended

PowerBoost touts 430 horsepower and 570 pound-feet of torque and

range 88 kWh battery option added another $5K to its tag and gave it

can pull 12,700 pounds.

270 miles of range (59 more miles than the standard range battery on the AWD). Every Mustang Mach-E also comes with Ford’s Co-Pilot360

Ford’s Pro Power Onboard mobile generator system allows you to

suite of advanced driver aids and the premium trim added a host of

power tools and appliances whether you’re stationary or driving. Pro

nice convenience and tech features. There are no significant changes

Power Onboard can be paired to regular gasoline engines, too, but

on the 2022 model.

with the PowerBoost it can generate up to 7,200 watts –enough juice to power a whole worksite. A fold-out worktable in the center console

We’ll get to the plan for fully electric pickups in a minute but first, let’s

is another “made-for-work” feature.

take a look at how far the mainstream American truck manufacturers have come in getting their loyal owners to even pay attention to a

As always, Ford offers an endless array of configurations, not just

hybrid pickup much less a fully electric truck. It started 14 years ago,

in engines, but also in cabin and bed options and trim levels. Our

when Ford introduced the 3.5L EcoBoost engine, a V6 gas engine

tester was the simply fabulous King Ranch SuperCrew with a base

direct-injected with twin parallel mounted turbochargers, designed

price just over $60,000. The PowerBoost engine added $2,500 and it

to deliver equivalent power and torque as the V8 while being cheaper

was loaded up with a chrome appearance package, tow technology

to buy and cheaper on gas. In 2017, the redesigned 3.5L EcoBoost

package, FX4 off-road package, Pilot 360 Active Prep package, twin

added 10-speed automatic, multi-port fuel injection and new

panel sunroof and other niceties adding about $16,000 to its price tag.

turbochargers to reduce the turbocharger lag and allow peak torque levels to be reached faster.

So what’s in store for no-gas pickups? Reservations are full for the

The 2021 third-generation PowerBoost engine teams the 3.5L

EV 3X will follow in Fall 2022. Tesla is building a new Gigafactory in

EcoBoost twin-turbo engine and 10-speed automatic and adds a 35-

Austin that will produce its fully electric Cybertruck. The Cybertruck

KW 45 hp electric motor and a 1.4 kWh lithium-ion battery. It sprints to

and the all-electric Ford F-150 Lightning will launch as 2022 models.

60 in 5.3 seconds while the gas mileage even for the 4WD is rated at

In 2024, Chevy has an electric Silverado coming, and RAM and Toyota

24 miles per gallon, meaning it will get some 700 miles on a full tank.

are promising electric truck roll-outs around the same timeline.

just-launched limited edition Hummer EV Edition 1 and the Hummer

The true test for truck-makers will be if an electric pickup can perform just like a standard variant when it comes to payload and towing.

Mainstream truck manufacturers know the answer must be yes!

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 « Chevrolet Bolt EV »

31

[Savvy Sponsor ]

HOME ELEVATOR OF TEXAS

D

on Zimmerman, a longtime member of the Greater

After a transfer to San Antonio, his company decided not to offer

San Antonio Builders Association, is living the

residential elevators in this area. Zimmerman thought otherwise. He

American dream.

knew this highly specialized market was ripe for growth and decided

He built a highly successful business, Home Elevator

of Texas, with his own sweat, hustle and determination. After earning a business degree from Iowa State University , Zimmerman acquired a decade of contracting, engineering and management experience with a large commercial elevator and escalator company.

to go all in. So in 1985 Don jumped from a cushy corporate life to “eat what you kill” entrepreneurship and invested everything he had into starting Home Elevator of Texas. He specialized in luxury home elevators, commercial accessibility elevators, wheelchair lifts and other related specialty lifting products.

“In college I was a business major and I managed the books for a large fraternity,” he says. “I got the itch back then to one day own my own enterprise. And although it was scary leaving the security of the corporate world I knew I needed to go for it.”

32

Home Elevator has been making new and existing structures attractive and accessible for over two decades.

People across the state have benefited from the comfort and dependability their products deliver — whether a luxury residential elevator installed for convenience — or a wheelchair lift for essential access. Their design and installation experts, and knowledgeable staff provides and maintains a full range of top-quality vertical transportation products including residential and LU/LA elevators, curved and spiral stairway lifts, wheelchair lifts, dumbwaiters and a variety of specialty lift equipment.

Home Elevator provides equipment and service to most of Texas with locations in San Antonio, Houston, Austin and Dallas / Ft. Worth.

Zimmerman knows what it takes to develop and retain satisfied customers and builders for life. “Make sure the homeowner knows what they are getting and that they are happy with their choice,” adds Don. “The equipment must then be thoroughly

“You devote surprising amounts of time to business ownership, but when you have passion, it’s worth it. Our life lessons should be passed on to others. When employees face challenges, I remind them the same lesson that I learned from a mentor, ‘there is always a solution to every problem if you calm down, think it through and then create your options’.”

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