40: Property Product-Market Fit: The Most Important Metric You’ve Never Heard Of w/Tommy Beadel

Housing demand has caused home prices to explode over the past two years. But, even as interest rates rise, the Fed tries to curb inflation, and would-be-homebuyers enter back into the renter’s market, there still isn't enough land to go around. For developers like Tommy Beadel, this is a good problem to have. On one hand, tailor-made homes for new homebuyers sell out quickly, but without a ton of deals to go around, where do you go to find good dirt? Tommy is the CEO of Thomas James Homes, rebuilding experts in the Seattle, SoCal, Silicon Valley, Denver, and Phoenix markets. They do what most flippers won’t—buying old, often outdated homes, tearing them down, and rebuilding them to fit today’s standard. Doing this allows them to sell at the highest price to a consumer that only wants the best and latest home to buy. They skirt the line between new development and renovating/rehabbing homes, but this niche has paid off. Unsurprisingly, Tommy came from a background like most of us. He attended a real estate seminar, surprisingly didn’t get scammed, and house hacked right out of college. His passion for real estate grew from there, taking him from the mortgage industry to investing and now building. But Tommy is convinced that his niche isn’t a cyclical one. Instead, it’s something he can rely on that will stand the test of time. He’s got the data to back it up, and you’ll hear all of it in this episode. In This Episode We Cover The “tear down, build up” style of new construction and why there’s so much demand for it The property product-market fit and how today’s trends show what a homebuyer wants Scalability vs. predictability and the most crucial aspect of growing a real estate business What predicts a profitable housing market and the data you need to know before you invest Material and labor costs and some good news for builders/rehabbers  Entering back into a “middle-ground housing market” as sellers and buyers reach a stalemate And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Agent Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Find an Investor Friendly Agent in Your Area Dave’s BiggerPockets Profile Dave’s Instagram James' BiggerPockets Profile James' Instagram Where Does Housing Demand Exceed Supply? Use NeighborhoodScout to Find Market Data in Your Area Connect with Tommy: Tommy 's LinkedIn Thomas James Homes Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-40 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices