In today’s episode of The Same Day Podcast, Yoni Schmidt interviews Noah Bleicher, Director of Operations at Capital Homes, about his insights into the home building industry. Noah shares how home builders can improve the customer experience, why technology and automation can be a game-changer, and how housing trends are affecting home purchasing patterns.
From Sale to Closing: Fine-Tuning the Home-Building Process
Noah Bleicher is the Director of Operations at Capital Homes, a prominent home builder in the Tulsa, Oklahoma, area. In his role, Noah drives optimal efficiency and successful outcomes in all of the company’s systems and processes. His proactive approach involves taking ownership of company initiatives and providing unwavering support to the sales, construction, back office, and executive teams.
As an entrepreneur with a history in leadership roles, Noah demonstrates an ability to create and nurture flourishing businesses and possesses an aptitude for improving company processes. With an appetite for variety, he founded Viet Nom Nom, a Vietnamese restaurant and food service company, and Su Casa Colombia, where he transformed a bed and breakfast into a top-ranking lodging destination.
Here’s a glimpse of what you’ll learn:
- How Noah Bleicher entered the home building industry — and what he brings to the table
- Noah explains how the customer experience differentiates Capital Homes from their competition
- Overcoming challenges by implementing new systems and technologies
- What role did HubSpot and Avid Ratings play in improving productivity?
- Reducing the friction between departments through automation
- Noah explains Capital Home’s unique and seamless eight-step home-building process
- Why tailoring the level of care provided to homebuyers is imperative
- How price and interest rates affect customer expectations: finding the right balance between cost and quality
- Responding to changing trends in the housing market post-pandemic
- The personal philosophies and values that Noah lives by
In this episode…
Buying a new home can be an intimidating endeavor, especially if you’re having a contractor construct it from the ground up. When investing in the biggest purchase of your life, how can your new construction company provide a premium experience?
From superintendents to subcontractors to lenders to office staff, building a home can require hundreds of hands to get it across the finish line, and most people don’t understand all the moving parts that bring it to fruition. With deep expertise in managing operations and serving customers, Noah Bleicher knows the value of going the extra mile for his clients. Noah explains being proactive and transparent and educating buyers makes them feel more comfortable with the process. When customers know they can reach out and get their questions answered, it provides them with a line of communication that goes beyond what most builders offer. To deliver exceptional service and maintain high-quality standards, home builders must continuously strive to improve systems and solicit feedback from their homeowners.
Resources mentioned in this episode:
- Yonatan (Yoni) Schmidt on LinkedIn
- Keyrenter Property Management
- Keyrenter Property Management in Tulsa | Oklahoma City | Arkansas
- Keyrenter Property Management email address: [email protected]
- Noah Bleicher on LinkedIn
- Capital Homes
- “How To Raise Capital Using a Growth Perspective” with Michael Basch on The Same Day Podcast
- Cynthia Hinckley on LinkedIn
- Wayne Reuss on LinkedIn
- Avid Ratings
- HubSpot
- The Go-Giver by Bob Burg and John David Mann
Sponsor for this episode…
Keyrenter Property Management:
This episode is brought to you by Keyrenter Property Management.
Keyrenter Property Management is a full-service property management company that helps clients buy, renovate, and operate real estate assets.
The team helps clients build wealth while taking the headache out of property management.
That’s why, no matter what rental you have — single-family homes, condos, townhomes, or apartments — they can give you the management solutions you need.
To learn more about their services, go to https://keyrenterpmc.com/ or send them an email at [email protected].
Episode Transcript
Intro 0:05
Welcome to The Same Day Podcast where we discuss driving incremental business growth and other topics related to real estate, property management and entrepreneurship. Now to the show at hand.
Yoni Schmidt 0:20
Yoni Schmidt here hosting today’s episode of The Same Day Podcast a podcast where we connect with top business leaders and entrepreneurs, real estate experts in the industry. Today’s episode is brought to you by Keyrenter Property Management, Keyrenter Property Management. We are a full service property management company, helping our clients buy, renovate and operate real estate assets. We help our clients build wealth while taking the headache of property management and today, we have Noah Bleicher. I’m thrilled to introduce you to our esteemed guests, a dynamic leader and the director of operations at Capital Homes, a company renowned for delivering high quality homes and exceptional customer service with an impressive tenure that spans nearly four years at Capital Homes. Noah is the driving force behind operational efficiency and the successful outcomes of the company’s key initiatives. His journey and entrepreneurship and leadership doesn’t stop there. Noah was also the owner and founder of Viet Nom Nom showcase, showcasing his versatile business acumen and passion for diverse ventures. Before this, he led as president and owner of Su Casa Colombia, where he transformed a bed and breakfast into a top ranking lodging destination, demonstrating his remarkable ability to create and nurture successful businesses with a rich history of leadership roles and a deep understanding of efficient business processes. Noah is here to share his insight and experiences in the home building industry, entrepreneurship and much more. We’re honored to have such an accomplished and insightful individual with us today. Please join me in welcoming Noah Bleicher to the podcast. Noah. How are you today?
Noah Bleicher 2:05
Doing great Yoni. Glad to be here. Thanks for having me.
Yoni Schmidt 2:09
Absolutely. Thank you for joining us. So Noah, can you share a little bit about the story how you ended up in Tulsa as the Director of Operations for Capital Homes? And what is it that drives the mission of providing high quality homes at Capital Homes, of course.
Noah Bleicher 2:27
Sure, sure. So my path to Tulsa was a little bit circuitous. But as you mentioned, I was previously owner, founder of a food service company called Viet Nom Nom up in Chicago area. My wife and I had been living in South America, and then we went to Chicago, so I could attend grad school at Northwestern. And then this business came out of it. And so ran that company for a number of years, ended up selling out to my business partner, and then was looking to get into real estate. And so in my wide net search, a great little town called Tulsa came upon upon my radar. And I was fortunate to connect with the folks over Capital Homes. And as you know, one thing led to another with the conversation and a good opportunity presented itself, it really sort of all fell into into place for me to join. So with my entrepreneurship and operations, hands on operations background, I was able to step into this role and really fill in a need, that the company had to sort of add some extra firepower, some extra, extra operational expertise to the to the company. And I’m originally from Dallas. So part of coming from Chicago down to Tulsa was a bit of a move closer to home. And so my wife and two kids that really enjoyed being close to grandparents and just enjoying that proximity a bit more. So that was sort of a long, long way we got to Tulsa and joining Capital Homes, was really a great opportunity for me to bring that previous expertise and experience in, in hospitality in customer service, and really take it into the new home construction industry. And realize that in a lot of ways, you know, even though we are product is homes, a lot of what we do is customer service, we are fortunate to be able to provide, you know, one of the biggest if not the biggest investment in families love life to them in a really high quality, thorough way. And then a lot of what I do is just make sure that that process is as smooth and as stress free as possible. So obviously I work with a number of great folks on our team from our our marketing team, our sales organization, our construction or warranty. All of our back office team I get to play a little bit of air traffic control and have hands on different steering wheels across the company. It’s been a lot of fun for me to make sure that everything is working really well. And that sort of the, the machine is well, well oiled and efficient. So it’s a lot.
Yoni Schmidt 5:10
I love that. Yeah. Love that. So how exactly did you get connected with Capital Homes, before you moved to Tulsa?
Noah Bleicher 5:19
So So I have a good buddy who lives here in Tulsa, he’d been talking about all the great things that were happening in the city for a number of years. And just because of the timing of when I exited from Viet Nom Nom, and happened to be in the market for a new new job, new, new new career, even, you know, he kept reminded us and we ended up taking a trip down here to visit. So we came here for a weekend met a bunch of great folks, you know, through through a friend of ours, and just through another sort of the network that we had, were able to be introduced to the leadership team at Capital Homes. And this was good conversation and a lot of exploration about about the company and about my background, we were able to work something out for me to join. So I was fortunate that someone who didn’t have new home construction experience was still appealing to them, for me to join the team. But again, I think it was their faith that someone who has started and operated two businesses, and had that hospitality and sort of people focused mentality could take those lessons and apply them here to a new industry. Yeah, so that was I was fortunate that took a chance on me, and I think they’re think they’re thankful and grateful that I joined the team, too. We, we did weather a pandemic in the middle of that of my first couple years there. So that was yeah, hopefully, hopefully,
Yoni Schmidt 6:44
that true, I know that they’re there, you know, lucky to have you. That friend, I’m guessing is Michael Basch that you mentioned, who is a former guest here at the on The Same Day Podcast, Mat Zalk, interviewed him, I think, one of the very first episodes of the podcast. And so you mentioned the homebuilding process, and the home buying process. This is something that individuals, you know, for, for many individuals out there, this is the biggest investment in their life. And I’m familiar with the home buying process with Capital Homes, because I was fortunate enough to have gone through that process. And I’m actually sitting in my home right now here in Emerson Heights home that you were involved in building a home that I absolutely love. And so I guess my question here is, Capital Homes emphasizes customer satisfaction. And you mentioned hospitality from your previous businesses that you that successful businesses that you’ve launched and operated. But can you tell me, you know, Capital Homes emphasizes customer satisfaction throughout the home building process? Could you share an example where this book is significantly impacted? A homebuyers experience? I know I can. But I’m sure that you have many stories that, you know, would resonate with our listeners.
Noah Bleicher 8:10
Sure, sure. HSo yeah, as you mentioned, Yoni, one of our big focuses is customer experience, you know, CX as that’s, that’s the buzzword these days, but, but we really do take that to heart. And we feel that you know, one of our differentiators, something that makes us different, hopefully better than some of our competitors, is that we really do try to go the extra mile, we try to do the unexpected. We try to surprise and delight in a way that folks might not expect from from a home builder. You know, we’re we’re at the end of the day, we’re in the construction industry. There’s certain presumptions about what that means. And the home building process. A lot of folks don’t have familiarity with it. So first and foremost, one thing we really try to do is provide a good education that starts, you know, online at our websites or the homebuilding process, and we try to make ourselves very available. You know, we have a great team member named Cynthia, who is available, you know, almost 24/7, for phone call for texting for emailing just to answer questions and sort of start that process of exploring the possibility of a new home, build or buying a home that’s almost complete. And so that sort of starts there. But it sort of goes throughout our entire process of you know, we we sort of train our team we talk relentlessly about putting yourselves in other folks shoes, sort of imagining how someone who’s never done a new home build might be feeling and the questions they might have, and we try to anticipate those, those needs as questions those experiences so that we can be there when when they need us and even ahead of time. And one of the biggest things that we helped implement in the last several years in support of this effort is is almost a constant feedback loop. So we have, you know, scheduled phone calls for example, with our state mills and our superintendent sitting side by side, calling, each of our buyers on a weekly basis to check in and see how things are going just to provide updates. Hey, hey, we installed your your countertop this past week, Hey, your drywall went up? And what questions do you have? How can I be helpful? Those sorts of frequent touchpoints allow for us to not only show them that we care, but also be available for any feedback or any questions that they have. It really does try to be a frequent touch points so that we can not only be a support, but also should something, you know, go sideways, or have a question that or concern, you know, we are there and not some distant, distant office or phone call away for folks. So that’s some of the examples of it. But we really do try to distinguish ourselves. One thing I always talk about is, you know, communication is free, it doesn’t cost you anything to send an email doesn’t cost anything to make a phone call. That’s something that is easy for our team to do is just be proactive and available. And then obviously, we always encourage our homebuyers to feel free to give us a call and just talk through anything. And that and that filters all the way down to our warranty team, you know, sort of from the start up in the marketing side, all the way to the back end of our of our customer care and warranty department, we just try to be as available as possible so that we can be there when when our customers need us.
Yoni Schmidt 11:19
Yeah, and I’ve experienced that I’ve spoken to Cynthia, multiple times. When I was buying this house here in Emerson and Emerson Heights, I was mostly dealing with Wayne Reuss, I believe. Yeah. And then there’s also of course, Sally Moseby, which I see her putting listings up on Zillow and MLS, all over the area here. And I just love what you guys are doing in the neighborhood, really transforming this area, making it just like a really great area to live in a really great neighborhood to live in right outside of downtown Tulsa. Love walking downtown. takes me about 10 minutes from my house. So well, that’s great.
Noah Bleicher 12:02
And I love to hear that your enjoying it. And that’s really what that’s why we do it. So love to hear that, Yoni.
Yoni Schmidt 12:09
Yeah, and I will say that the communication piece is so true. You know, when people are making the biggest investment of their lives, it’s so important to be open, transparent and available for them to ask those questions. I have a friend who reached out to me on I think it was Christmas Day. And she wanted to go see a Capital Homes house and Broken Arrow. And you know, just the level of communication, I texted Sally within an hour. So I got a response connecting me back again with Cynthia, to schedule an appointment to go see the property. And I think the very next day, we got my friend into the house to take a look at it. Right. So that is awesome. So tell me a little bit about some unique challenges that you’ve faced in the home building industry for your journey. And how have you overcome that? I know that you’ve implemented some new systems at Capital Homes. One of them I believe, is HubSpot. You’ve spoken to Robert Davis, our Chief Operating Officer at keyrenterpmc.com. And, you know, taken some some of the stuff that maybe we were doing in HubSpot and implemented it into the Capital Homes business model or just general operations. What challenges have you faced? And how did you overcome them through use of technology through your past experiences and lessons? And what tools are people will you able to access and leverage?
Noah Bleicher 13:46
Sure, sure. Well, so you know, when when I joined capital Holmes, and in March on March 2 2020, you know, the company was always already a mature company. I’ve been in business since 1987. So, you know, there was no need to reinvent any wheels. But there was a lot of opportunity for tweaks and improvements in you know, in small or medium or big spots there too. And so, as you pointed out, you know, one of the things that I observed when I joined the team was there, our CRM software was was okay, it was functional, but it wasn’t quite as all encompassing as we might hope. And, you know, we sort of, we spent a lot of time throughout the year strategizing and dreaming up different ways that our company can be improved. And one of the visions we had when we researched and ultimately decided on HubSpot was an end to end single source of truth database for our customer experience. And again, it sort of goes back to that we want to know information about the folks that we’re working with so that we can then provide that level of support that we expect of ourselves. And hopefully our customers are expected of us. And so HubSpot, you know was sort of was the was the winner after a long research process to decide what type of car ran was going to be able to meet those needs. And it’s not just about storing, you know, the phone number and the email and you know, the meetings. It’s really, as you know, I’m sure from from your experience of HubSpot, it allows for so much automation and sort of setting up of sequences. So there’s marketing implications. There’s obviously sales implications. And there’s back end, you know, Customer Care warranty implications, too. So, HubSpot was, was one of my early projects after joining the team, and we got that up and running within a few months. And that’s been great. This has been off and running. You mentioned sort of the software focus, and other technology applications that we’ve that we’ve implemented. That’s a big part of where we see the world going. And obviously, as our as our target demographic. You know, we’ve got a wide demographic but but as new generations of homebuyers come into the market, you know, we recognize that the younger they are, they are in the in the market for purchasing a home, the more technologically savvy they probably are. And so we want to be right there and ahead of the game, compared to our competitors with with the tapping into what’s available in a smart strategic way. So another, you know, I mentioned earlier, sort of the constant feedback that we hoped for, we did set up a a great service through Avid Ratings. It’s a it’s a sort of a feedback and survey software that we implemented. It also integrates with HubSpot. So we’re able to sort of tie those together. But that’s a way that basically at a certain moment in their construction journey, they get an automatic email or text to their phone and said, Hey, how do we do on this? Hey, we know you just walked out of your design appointment 20 minutes ago, can you tell us how it was, those sorts of things allow us to get that constant feedback that then we know, hey, we did a good job where hey, there was an opportunity for improvement here. Let’s jump on that and make sure the customer knows that we heard them. And that we want to make sure that their expectations were met. Or if there’s things for us to tweak, you know, we want to know that too, of course. So that was another good one. And the next one of the ones I’m most excited about was something that we implemented just about a year ago. Yeah, early 23, which is a drafting and estimating software called hierarchy. So they are a relatively new company been in business about five or six years based out of Northern California. But they are trying to be the 21st century version of AutoCAD, which is the short the home, it can be used for a lot of architectural applications, but the design and the drafting that goes into how we put forth new plans and elevations, we had historically been using AutoCAD, we still use it a little bit. But we’ve moved majority of our work into this hierarchy software, because of that sort of forward thinking applicability to where we want to be. So just to give you a few highlights of what we love about it, it is a basically, you sort of build this, this, this, this database of the the Lego pieces of your home, and say, you know, here’s my, here’s my windows, here’s my siding, here’s my roof structure, and then you can sort of pull it off the shelf and create homes in 2d and even 3d, right there in a much faster, more efficient way with a lot of economies of scale. And so our product development, from idea to actual field ready construction drawings, has shrunk tremendously, we used to have that in a five to six month process sometimes and now we’re down to one to two months. So tremendous efficiencies and sort of how we take a new concept and sort of put it out there into the market. And that has been it’s been a journey, because it’s been, you know, our draftsman tells me it’s like having to learn to write with left his left hand. You know, like he didn’t he didn’t have it didn’t have the skill, so he had to really learn it. But now that we’ve gotten over the learning curve, it’s really proven its worth and and we’ve been loving using it. And then I would I would say, our our in the field construction team loves it, because in the previous world, we had, you know, a set of blueprints. And in our in our industry, there’s, you know, we call them sort of option bubbles that you sort of circle if our customers have selected this upgraded bathroom or upgraded primary suite. And now, because there’s just one set of drawings, if they select that upstream at their design appointment, or with the salesperson, it is on the prints as it should be right there in the room, there’s no separate bubbles and things for our subcontractors to follow. It’s just you what you see is what you get. And that has really clarified things and made things really easy for our our superintendents and our and our subcontractors to build and it has reduced errors reduce extra expenses. I mean, it really has created a bunch of efficiencies for us. So that’s our most recent software integration in the last year and it really has paid dividends. Horse. Yeah. Wow.
Yoni Schmidt 20:01
Wonderful. And so when you said you set up HubSpot, you were setting up workflows, I’m guessing and automations and pipelines and, you know, all of the triggers, I guess that would follow. When can you tell us a little bit about, you know, what that looks like, in terms of the home building and home buying process. I know that Capital Homes has a very unique eight step home buying process that’s really simple to follow. If you’re a buyer out there looking to purchase a home, how does that translate into your software? Right? The from the moment the buyer comes into your CRM top of funnel, and going through the entire home building process? How do those eight steps sink into your technology and the usage of that technology? Because that must be very complex?
Noah Bleicher 21:00
Right? Well, it took it took a long time to get everything set up the way that we were happy with it. And also sort of making this the software is intuitive and and have a great support team from HubSpot. But that said, you know, we’ve got sort of a particular way that we would like to do it. So there was there was some massaging in there. But you know, essentially, because of the underlying software support that allows the workflow to flow between different departments from different employees, you know, so for example, you mentioned Cynthia, she’s fantastic, and show show, take an inbound phone call, let’s say and take, ask good questions, get some more information from this prospective buyer. And from there all through HubSpot, you can set up an appointment, you know, without even picking up the phone to call our salesperson, they can see the schedule, it’s all in one place, you make an appointment. And then of course, the automation kicks in, because then now that’s on that salespersons calendar, they get an alert, there’s sort of there’s a there’s a there’s a technology base, but also a warm handoff between our different team members. So that there’s not again, we’re sort of just reducing the friction between the different individuals in different departments. And that same principle translates as it goes further down the funnel down that down the construction journey. So the salesperson, obviously will handle that. That prospective buyer when they come through the model home door, or even ahead of time, you know, by text or phone or however, and then with good thorough notes and information, we put it in there more workflows trigger from that too. So if they are fortunate enough, and they decide that they want to build with us, and they sign a contract on a lot at home, then the next stage in the process will be to go to our design center and meet with Amy hasher who does our our selections. And so Amy, again, is set up automatically, with all the relevant information for this, this homebuyer, so, you know, obviously the block and block and home they’re going to build, but generally, you know, what sort of styles, what sort of features, what information are they looking for. And so obviously, it’s dependent on our team having good understanding and training of sort of what the how the software works, and also what their we call them internal customers, what your next person in line is going to hope to get from you. And so if they’re doing what they need to do that Amy is set up for success, by getting all of this information automatically dropped into her inbox, so that she is informed before that person walks through the door, how a bit more about how that experience is going to go. And the same thing applies to the next step in the line, which would be the construction process, our construction team will also get information sent over to them and so they’ve got information coming from the system. And then, you know, then throughout the home, homeowners journey, the the construction journey. I mentioned the AVID surveys, those are one step that sort of automated throughout that there’s more sort of stages of the journey that trigger additional things within our system. So a lot of is just sort of check ins and making sure that we’re doing well. But then it’s also sort of milestones in the in the home, in the home building journey as well. That then will allow the homeowner to feel informed and also have all the information within our team ready to go so we can jump in and support as needed. And again, that will then flow once the home build is complete to our to our closing department. They get a lot of updates and information coming out of HubSpot and from that salesperson as well. And then once once the page turns in the home has closed and they are now in the in the customer care and warranty departments hands on same thing they sort of get this, this, this this flood of information from all the events, all the interactions upstream. So they’ve got a good backstory for this person’s experience with us. And we can flag we can flag if they say hey, this person had a ton of questions about their roof or their guttering. You know, and so let’s just make sure that we touched on that a bit more. So really, these are just ways that we can provide that tailored level of care We hope to, but also this, again be that support that we that we promise for our homebuyers so that they always know that we’re here for them and, and that we have the technology to help us keep, keep all our ducks in a row and keep up keep on top of these different factors.
Yoni Schmidt 25:15
Yeah, love that there are so many moving parts when you’re building a home. So going, I guess from discovery, to design to construction to closing the post closing and home warranty. And then, of course, throughout every step of these of the process, you’re, you’re soliciting feedback from the client to, of course, make sure that you are providing them with that level of service that you want to the high level of service and the high quality service, you know, that your clients, of course, deserve. But also learning from that so that you can iterate and continue to improve in the future, and provide, you know, even higher quality, standard high quality service to your clients. Is that kind of how I’m understanding that?
Noah Bleicher 26:04
That’s exactly right. I mean, we talk a lot about the fact that any one home probably has, you know, 200 different hands touch that house, right. So from our superintendents, to our subcontractors, and if you want to sort of talk figuratively, all the back office folks or closing partners that we have at our title companies and lenders, I mean, there are just so many folks that have interaction with just one home. And so, you know, given that there are hundreds of hands or people touching, you know, one person’s journey, you know, we were honest with ourselves, we’re all human, you know, mistakes are gonna happen, and, and that that part’s okay. That that’s sort of that’s, that’s life, but it’s how you respond to them. And it’s how you react that I think can distinguish you in your customers eyes. And so that’s why we care so much about that feedback. That’s why we care so much about being in touch frequently. So the folks have the opportunity to feel comfortable telling us if we’re not meeting their expectations. And so again, it’s not about that mistakes are never going to happen, they will, but it’s how that we are set up to respond to it. And to your point, Yoni, you know, we take every experience as a learning opportunity. And so whether, you know, obviously, first thing first to sort of put out any fires that are existing in front of us, but then how do we take a lesson from that experience, and then and then apply a system or process to future experiences so that we never have a repeat?
Yoni Schmidt 27:23
Yeah, and I’m guessing that cascades down from the top of the organization where, you know, David Charney, for example, the founder and owner of Capital Homes, right, who’s a wonderful, brilliant person who’s, you know, had so much experience in the world of real estate, I guess. He started Capitol Hill, as you said in 1987. And has grown it to you know, the the really like, highest quality kind of homebuilding property. homebuilding company in the in the area, I would say, I mean, I love your product, I guess, then, touching a little bit about quality and standards. My next question is, how do you ensure that each capital home projects reflects the high quality standards your clients need and want? And you mentioned that, you know, 200 people 200 hands, right, are touching the project as a homebuyer not necessarily seeing all of this, you’re really communicating with? A few people, right, one or two people, potentially three, you’re you’re, you know, giving them information about what you want in a home what you need in a home. You know, how do you guys take all of this data? Right, and make sure that the client receives that highest quality, standard, highest quality? Product?
Noah Bleicher 28:54
Sure, sure. Well, so Howyou know, one thing we talk a lot about is that, you know, with the pandemic of the last several years, and you know, and sort of the supply chain shock that that cause and just the general adding up of price points across, you know, the entire country. You know, one thing we talk a lot about is just that we feel the customer expectations have risen almost, you know, in lockstep with pricing. Right. So naturally, you know, if you, if you go to a sandwich shop, and you pay eight bucks for a sandwich, you’re going to expect different things. If you pay 20 bucks for a sandwich, right? There’s just sort of an expectation that the price point goes up, that the quality and the and the finishes, everything’s got to go up as well. And so, you know, the last several years, our price points have absolutely gone up, driven in large part by our costs going up. And so that was a sort of the natural thing of flow things. When when interest rates were in the twos and threes and fours folks didn’t seem to mind as much because they’re going to leverage a lot of that purchase and not think too much about the final price point. But as interest rates are going into the Ah, and now, hopefully seven or six is, again, that folks are saying, hey, you know, I want to really make sure that if I’m going to pay this higher dollar amount than a couple of years ago, that, that I’m getting everything that I expect from that. And so it’s a little bit of a dancer, and there’s a little bit of a tension, because, you know, one thing that we try to do is deliver a very high quality product for an affordable price. And affordable, of course, means something different for everyone. So it’s not, it’s not a catch all term. But you know, we are not going to be your million dollar home with all the other bells and whistles that might come to, but we are in the mid to hundreds up to $500,000 homes, depending on the neighborhood. And so, you know, a $250,000 home is still $280,000 That’s, that’s a lot of money, and expectations are appropriately set alongside it. And so, to your question, you know, how do we ensure that we’re delivering that quality and that we’re delivering and meeting the expectations? You know, we are fortunate to have been in business, you know, for almost 40 years, which means that we have long standing relationships with these really great vendors here in Tulsa, you know, so we have an excellent, you know, countertops, tile, lumber supplier, I mean, you name it, a lot of our the the pieces of called sticks and bricks that go into each of our homes, we have vetted these these suppliers and subcontractors over decades. And so we were fortunate to have maintained these great relationships. You mentioned, you know, our owner and Chairman David Charney, you know, starting back with him when he was, you know, in the trenches, so to speak of this business and getting the relationship started. So much of it does cascade from him and his mentality about treating folks with respect and how everything’s a partnership. You know, we’re very intentional that we call our subcontractors trade partners, because we do view them as partners, they are, yeah, we’re paying them to do a job, but they are helping provide the service and the product to our customers. So we’re very much in it arm and arm. And so having those relationships having built that trust between our company and theirs, you know, is the foundation, but it doesn’t stop there, you know, then, of course, we have to have a lot of quality control from our superintendents, having a thorough schedule, and having a good software system supporting that so that, you know, when when our customers make their selections, and we send out a purchase order, you know, that there are checks and balances to make sure that that’s going out in a timely fashion, that that’s, you know, getting what we ordered, that there’s a quality control once it gets to our job sites, that everything is correctly delivered and in good shape. And so there’s a ton of steps along the way that we’ve built in to ensure that everything that we promised, we’re actually able to deliver upon. And so, you know, are we going to meet everyone’s expectation 100% of time, that’s an easy, no, there, we’re not going to do that. But we are, we’re trying to build the business in a way that we can hit that ball out of the park, you know, 90 plus percent of time, 95% of time. And then for those opportunities that we have, where we don’t quite make it, there’s probably a lesson in there that we can learn and, and apply for the next time. So we just try our best to have a have a good system in place and to be intelligent with the selections that we offer. So that we can find that right balance of price and quality. So that things are again affordable for folks, where the where they’re at where their budgets that but also that we feel great about the product we’re delivering and we stand behind it.
Yoni Schmidt 33:20
Yeah. And I experienced that firsthand when I bought this house, and I came through it for the very first time. And a little kind of tidbit or a little anecdotal story for that, for what you just mentioned was when I walked into the garage, and I saw an electrical hot water heater, and then I walked outside. And I saw the flute coming out of the coming out of the roof. And I I turned to I believe the superintendent, it’s Canaan, right? And I said, why would why would we need that if we have an electrical hot water heater? And he immediately said, you know, you’re right, that shouldn’t be there. And within I think 20 minutes, the plumber was back at the house fixing everything. They took it out, they put you know, they put a new board in there, they covered the roof up with shingles. And that was a really great experience. You mentioned supply chains. And, you know, I want to ask, What trends are you observing in the housing market and supply chains in general, and how is Capital Homes responding to these changing trends?
Noah Bleicher 34:31
Sure. So you know, as I mentioned, things have definitely smoothed out significantly from from the volatility of the heart of the pandemic, you know, the late 2020s, all 21 into 22. Were very volatile, and we had to we had to react pretty quickly in a lot of cases when sometimes our costs were spiking 10% month over month. I mean, everyone the buzzword back then was lumber, everyone was sort of clamoring about how expensive lumber was getting so quickly. So that’s a sort of a as an obvious one. But there’s, there’s a lot of nitty gritty, a lot of smaller parts of the home that were also experienced. So you talked about appliances, he talked about Windows, you talked about concrete, you know, we were seeing a lot of volatility and those costs for for our team. And then a lot of that has smoothed out. But but in terms of 24 hours, we’re sitting here on January 5, you know, we did get notice from a lot of our vendors that hey, come January 1, they’re going to pass on a lot of their increased costs. So I can I can speak, the concrete just went up 10%. In this month, you know, the insulation has gone up recently, there’s there’s things the lumber is starting to creep back up. But it’s not not anywhere near the peaks that it experienced a couple years ago. So we do we do observe that, you know, even though a lot of folks are feeling, hey, we’re sort of past the craziness of the pandemic, costs have not gone back to pre pandemic levels, there’s still a high demand for these products, nationally, and so that’s going to keep prices elevated. So we’re expecting that we’re, we don’t expect prices to come down too much this year. And again, you know, when I think about anything that has gone down, it feels temporary in nature, and maybe month over month, we get a little bit of relief, but it doesn’t last too long. So that’s one thing that I’m cognizant of, and I’m trying to think through ahead of this year, but even beyond is that if costs stay elevated, if interest rates stay elevated, if there’s less relief from the secondary market, for you know, existing home sales coming into the market, if that’s not there, then your new home inventory is sort of the relief valve to get us up to our sort of equilibrium of supply. For for housing, you know, that’s going to create a, it’s going to keep prices high. You know, if there’s high demand for new home construction, there’s really high demand for the products that go into those homes, which is going to then translate to sustain higher prices. And I say higher, I mean, just relatively for the last couple of years. But But I also I also know that you know, the market, once once the market recognizes that these are the prices that are that are going to stay, then then they adjust. You know, folks, folks are still moving cities, folks are still growing their families, folks are still having life events, that causes him to need to find new housing. And so there’s going to be a certain level of transactions and movements regardless of interest rates, regardless of price points. But it definitely is a bit depressed, given the secondary market is just not moving as much. And I know you guys know this well in your business, too. So it is something that we’re that we’re keeping an eye on. But But overall, we’re pretty optimistic for 24 I think I think we sort of weathered the storm of 23. Successfully, it was definitely a big question mark, a year ago, what the year was going to unfold. And we definitely saw this was if you go if you recall, you know, q4 of 22 saw the largest increase in interest rates over a short amount of time. And so q1 of 23, definitely was feeling that effect, as folks are wondering how high are those interest rates going to climb, and a lot of folks are sort of hesitant to jump in, because they weren’t sure if they were going to get a good rate. And so after a rough q1 of 23, we actually had a great rest of the year. And then of course, now we feel that momentum going into 24. and are feeling, you know, cautiously optimistic about about what’s ahead.
Yoni Schmidt 38:36
Yeah, with stabilizing prices, hopefully, and, you know, predicting the cost of the materials that go into the home. I bet that’s pretty difficult, which, you know, then then it’s hard to predict if I’m gonna build a house startup project today, right? What’s the true cost of that, what, six months down the road, if month over month, we have 10% increases in concrete prices, right.
Noah Bleicher 39:01
100%. Yeah, and when this this is actually one of the advantages of going with the higher volume builder, like Capital Homes, is that because of our size and our purchasing power, we’re able to get a bit better than market prices on our costs, you know, some of those inputs like lumber or Windows or concrete, you know, obviously, we’re going to be a little bit more competitive pricing wise, then a custom builder who does five homes a year versus, you know, let’s do an 150. And so, you know, we were fortunate and our customers, hopefully, they can experience that because you have that buying power that they can write along with us. But then just something to note is that when we when we offer a price on a new home build, even if our builds takes six months, which is our average right now. We don’t change that price. You know, when you walk in a contract, that’s the price we’re going to honor and we are using our data and our software to ensure that our budgets are as accurate as possible throughout the life of that bill. Did you know that The just to share with your listeners a large majority of the costs for a new home. And number one, the biggest one is going to be the underlying land as as the biggest price, biggest cost of the home. But then beyond that the six bricks, a lot of that happens early in the build. And so you know, when you drop the lumber pack on the site and start putting that home up, that’s, that’s a large chunk of your expenses. And so the closer we are to when we agreed to a price with a customer, sort of the better because then there is that less exposure to what we call margin compression or sort of the the that price erosion. And so we do experience it, we sort of we, we incur contract and we say great, this is a you know, healthy margin, and we’re happy with the sale. And then as you said, you know, if a if a Pio or an item, this towards the end of the bill, build spikes a little bit, you know, we’re going to eat that, and we’re not going to go back to the customer and say, Hey, sorry, our cost went up, you got to pay a little more. That’s not right. But we also are anticipating that that could happen. And so we’ve we’ve anticipated that and sort of built in a little bit of buffer just to make sure that we’re not losing money on homes. But that also we have that little bit of flexibility.
Yoni Schmidt 41:13
Sure, the business has to be a going concern so that you can continue to build and offer affordable quality homes to the masses, right? And tried to fill the strong demand and the housing shortage, I want to be conscious of our time. So I’ll finally I’ll ask you, you know, what personal philosophies or values have guided you through your career as a business owner and entrepreneur? And in general, in the home building industry?
Noah Bleicher 41:47
Sure, sure. Well, I mean, you know, for me, I started in hospitality, when I was 15 years old waiting tables, and being a host of my local diner. I’ve always just loved talking to people working with people serving others, frankly. And that obviously influenced a lot of my career, before jumping into new home construction. And so, you know, the sort of the personal philosophy that I carry with me is just to find ways to be helpful, find ways to serve others find ways to remove hurdles, or barriers for other folks. Because, you know, if you are, if you are supporting others, then they are better prepared to pass that on, sort of pay it forward and away. So, that’s been a big a big part of what I’ve carried with me throughout my career. And then, you know, sort of dovetailing with that, you know, it’s a, it’s an education piece, it’s a, you know, really learning about people, not just sort of how, how you would like them to work out how they work best, you know, really take the time invested with folks to say, you know, what sort of style of work is good for you what sort of style of communication is good for you, and I try my best and meet folks where they are, of course, you know, that sort of is a little bit of a two way street, hopefully, there’s some for meat in the middle. But but you know, I’m a flexible guy I can, I can, especially in my role as head of operations, you know, I see it as my responsibility to make sure that the system has a process, the departments are working smoothly. And if I recognize that somebody needs a little bit of a different approach than the next person, then then I’m flexible and able to adapt that. And I tried to pass on that philosophy to others, as I mentioned earlier, sure, we have a lot of internal customers that then provide that support to our external customers. And so having that open, that openness, that open mind, and frankly, an open heart, to have that empathy for other folks really does seem to have paid off. And so those are sort of the sort of the foundation of it. And then, you know, just hope to be able to have more opportunities to share that message and to be able to teach along the way if I if I’m able to have those opportunities.
Yoni Schmidt 43:53
Yeah, love that. That beautiful. We also believe in those values. And you know, Mat Zalk brought us a book in the office a few years ago, and it’s called the Go-Giver. Right? And I don’t know if you’ve ever read that book a few times. Yeah, it’s a powerful it’s a powerful business idea, I guess or you know, they call it the five laws of stratospheric success. The more you the more you give, the more you get which we truly believe is you know, something that happens when when you give So Noah thank you so much for being with us here today on The Same Day Podcast, if anyone is looking for a new build Capital Homes is a wonderful product. I love my home and I’ve been in many of the Capital Homes properties that they built all across Tulsa, Broken Arrow, Owasso Bixby sold some of the secondary homes that you have brought, that you’ve built and then they’ve been brought back onto the market and anyone looking for homes in the range of around $250,000 to $500,000. Capital Homes has a very unique and seamless eight step process to your home buying experience and I highly recommend it. Go to Capitalhomes.com Reach out to Cynthia, her little banner is on the top right and you can reach her. She’s extremely responsive and communicative. And I hope that anyone else that’s out there that’s listening to this podcast, who is a Capital Homes customer or future Capital Homes customer enjoys this information and a little sneak peek behind the curtain on how things operate. Thank you so much Noah I really appreciate your time.
Noah Bleicher 45:49
Thanks for the opportunity to speak to your listeners, Yoni. Have fun.
Outro 45:56
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