Technology

Find Your Slingshot: A 2024 Memo To A Private Homebuilder

What private builders need in their fight against giant nationals.

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SNAP.BUILD

Together with

Technology

Find Your Slingshot: A 2024 Memo To A Private Homebuilder

What private builders need in their fight against giant nationals.

Together with
November 28th, 2023
Find Your Slingshot: A 2024 Memo To A Private Homebuilder
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Remember when the residential development and construction industry was good for private builders?

I do. I grew up in the home construction industry. My father and uncles built a thriving local business in metropolitan Atlanta in the 1980s and ‘90s. They had great partnerships with other local entrepreneurs. They were proud to contribute to a robust industry that was creating homes for people in a fantastic area with an excellent quality of life.

Of course, no local gem remains a secret forever. Soon, word got out to the major public homebuilders that the Atlanta metro area was flourishing. By the time I graduated from the University of Georgia, those big guys were taking over the regional market — so much so that my relatives told me I didn’t have a job waiting for me in our family business. Instead, I was charged with joining one of the national firms to learn the business from them.

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So I did. I got a job with the largest corporate homebuilder in the country at the time, and it was the greatest thing I could have done for my continuing education. The principles I learned there continue to inform my career today.

One of the biggest takeaways from my time behind enemy lines was that I developed a crystal clear picture of just how stiff the headwinds are for small and midsize builders.

These national players are backed by bottomless resources. The money never runs out, and they have expensive systems and armies of employees to keep them on top. What can a private builder — the one who’s embedded in the community, creating jobs for locals and a financial legacy for their family — do in the face of such opposition?

We all know the story of David and Goliath. The giant, armored soldier Goliath faces down the ordinary man, David, in battle. A shepherd with no military training and only a slingshot to protect him, the odds are stacked against David in every way. And yet, he is the one who prevails. How?

For one thing, he chooses the right weapon.

In your battle against the gigantic public builders, technology can be your slingshot. Just as David’s weapon catapulted a rock high above his own head to hit Goliath square in the middle of his, technology can extend your reach — allowing you to streamline and scale all aspects of your operation.

I remember when technology began to permeate the building industry, and I was introduced to project management software for the first time. It changed everything. Technology allowed me to multiply my strengths and operate with greater efficiency and speed.

While technology alone won’t slay the giant, it is the slingshot you need. It gives you a fighting chance to take down the towering figure before you.

And if technology is the slingshot, capital is the stone that might ultimately defeat Goliath. Perhaps the most significant disparity between public and private builders is access to capital. A small or midsize builder can feel impossibly tiny when coming up against the deep pockets of a publicly traded organization.

However, new technology platforms, like the one we offer at Snap.Build, supports connection to private builders like you with financing in a way that allows you to compete. By bypassing traditional lending channels, you can access capital without many of the typical strings attached.

And with a technology platform to help you manage the financial side of your building projects, you can expedite build times, reduce project costs, and ensure that all parties are paid on time.

Now you have your slingshot and stones. But in the story of David and Goliath, his weapon isn’t the only thing David has going for him. It is, after all, a biblical story, and David ultimately wins because he has the Lord on his side.

Regardless of your personal beliefs — and religion notwithstanding — what underlies this scriptural parable is a universal truth: A noble battle is one worth fighting. And in our modern David and Goliath story, private builders are striving for a greater good.

As a local builder, you are part of the fabric of your community. You are helping to secure a brighter future for yourself, your team, and your neighbors. You’ve spent years establishing a solid reputation and a network of local partners that everyone can trust. That’s what gives you access to the best local talent — you know how to get the job done right.

If upholding the values of community and collaboration is not a righteous cause, I don’t know what is.

So, I encourage private builders like you not to lose hope when staring up at the sword and shield of your Goliath. You have the tools at your disposal to help you compete — and maybe even win — against these seemingly indomitable foes. Plus, yours is a virtuous fight.

ABOUT THE AUTHOR

Brad David

Brad David

Snap.Build

Brad David, EVP, Development/Construction for Snap.Build, is a former homebuilder who has over 30 years of experience in residential real estate, construction, and sales.

ABOUT

Snap.Build provides builders with funding for residential construction projects. Snap.Build offers a non-recourse loan structure, competitive rates, and efficient loan closing.

Website

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Snap.Build provides builders with funding for residential construction projects. Snap.Build offers a non-recourse loan structure, competitive rates, and efficient loan closing.

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