On Episode 110 of The DYOJO Podcast, we talked to Nicole Humber CEO of Bravo restoration, she's going to piggyback on the concept of reaching out to schools and talking to students about opportunities in the skilled trades. She says, "So I've been really involved in those schools coming back and either being a presenter and talking about our specific trade, or being a mentor for women, like women students that are interested, but not like, they only see male, so they think that's allowed. We have a couple of programs outside of schools that focus in on, you know, ages 16 to 24, or right after high school. And so I just get involved in those, you know, reaching out asking if I can be a mentor, or like, Hey, do you need anything like, what can I give you to help?" 

We echo ​what Nicole is saying. And for anyone who hasn't experienced it, and we've had some badass ladies on our crews. It really is, there's no rhyme or reason it's not you're from this generation means that you're a hard worker, I've had people from older generations who have been lazier than young people. I've had young people kick butt and, you know, take in complex concepts quicker than others who've been doing it for a long period of time. So it's really, you know, finding the right people that are a culture fit for your organization. And if you look around, and the culture is pretty monolithic, you know, maybe it's a lead not, maybe it's a leadership issue, it's time to you yourself, need to get outside of your box, expand the parameters for finding new talent, and finding ways to make it open and inviting to not just because it's the right thing to do, but because it will exponentially grow and improve your company having more diverse influences. What are some of those words of encouragement for people that maybe are feeling like, Man, why am I doing this? Do I need to stick with it? How do will I break through barriers? Because whether it's a young person or various genders, or races, you know, there's all kinds of barriers to you know, especially a very traditional old school thinking industry.

Nicole Humber says, "​I think that um, my biggest encouragement or advice would be just, you can only control what you can control what you do. You can't control what other people say or do or, or, and so it's like, what you can control is what you experience. And so when people are in these establishments, that they're like, I can't quite break through this barrier. I feel like there's a seat. A glass ceiling, I just I see it, but I can't get there. Invest in yourself. So invest in reading leadership books, invest in, you know, if you have to pay for your own IICRC classes do that. Do your research, become an expert in the industry where it makes it impossible for anyone to put the lid over you. If you don't have a leader that is invested in your growth, then you have to invest in yourself."

This week, on The DYOJO Podcast, we will discuss record breaking efforts by contractors who care for their local communities. We will share some creative ways business owners and managers can connect with clients and engage their employees. ​

We talked to Michelle Blevins a few episodes ago (#102) about creative ways to engage your community and your team. Many times these efforts don’t need to be anything extraordinary to be impactful. In my second book, Be Intentional: Culture, one segment many readers cite is the chapter by Lisa Lavender. She is the mastermind behind Berks Fire and Water in X, Pennsylvania as well as the Restoration Technical Institute. In her chapter she discusses the importance and impact of simply saying, “Thank you.” ​

On October 16, 2023, the White House announced new actions on home ownership including  $16 billion for housing and rehabilitation ​

Last Week 

We discussed a contractor who is facing civil lawsuits for spending construction funds on a lavish lifestyle, including a bright yellow $85k Dodge TRX, Super Bowl and World Series trips, and a million-dollar home. Then he goes missing for nearly a week. Some listeners commented that it was an interesting story but didn’t see the correlation to “shortening the DANG learning curve”. 

I think one of the lessons here is one that is similar to the RJC case we also recapped in Episode 108, that contractors, and business persons in general, like to point to all the outside burdens that impact their businesses. Whether this comes from insurance companies that delay, deny, and defend claims; homeowners who want everything for free and don’t want to pay the final bill when the job is done, the government messing with the economy, etc. All those outside forces are always going to be a factor, but too often as contractors we don’t deal with the one factor we have the most control over, ourselves. 

TDP 108 Crime & Construction - Contractor Burns Truck to Cover Fraud?
 - https://www.youtube.com/watch?v=QpQWVND5iWo&t=658s 

From the RJC vs. AISD story (Episode 92, Part 1), there are dozens of things the contractor could and should have done to better protect themselves. Its a shame when a contractor goes down, and we don’t know the full story, but we can learn from failures to communicate, to provide documentation, and have a solid contractural understanding of the scope and payout process. 

TDP 92 Contractor bankrupted by storm response, RJC vs AISD part 1
- https://www.youtube.com/watch?v=yjsJYljF9_0&t=124s 

For this contractor in Houston, there’s likely more to the story, but if the lawsuits are to be believed, it’s a common story among contractors who live well when the money is flowing but don’t properly prepare for the ups and downs of every industry. Both of these contractor horror stories have one thing in common, a big payout without the proper regard for the risk. 

In RJC’s case, what happens if the customer disputes the bill or delays payment? In Detamore’s case, if you have a big payout for 14 houses, don’t spend the “profits” before you’ve actually produced the job and ensured the profits are there. 

The simplest lesson from RJC is to develop a process that is consistent every time, from how you onboard your customer, confirm the contract and fee schedules, and how you document the work. 

The simplest lesson from Detamore is similar to what we tell our employees, in the peak seasons make sure you set aside money not spend it frivolously. After that first period of overtime, prevailing wage, or storm work, what does the new skilled trades employee do? They buy a huge truck. What happens when things get slow or there isn’t any OT, they are hurting. The same goes for the business. 

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Construction Stories

President Biden proposed $16 billion for the Neighborhood Homes Tax Credit, which would result in more than 400,000 homes built or rehabilitated, creating a pathway for more families to buy a home and start building wealth.  

NEWS - $16B from the White House for houses and rehabilitation - https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/16/white-house-announces-new-actions-on-homeownership/ 

The President has also proposed a $10 billion down payment assistance program that would ensure first-time homebuyers whose parents do not own a home can access homeownership alongside a $100 million down payment assistance pilot to expand homeownership opportunities for first-generation and/or low-wealth first-time homebuyers.

Make home repairs easier to finance: HUD, through FHA, is continuing its work to update the 203(k) Rehabilitation Mortgage Insurance Program to help homebuyers and homeowners finance the purchase or refinance of homes in need of improvement. 

The 203(k) Rehab Mortgage Insurance from HUD - https://www.hud.gov/program_offices/housing/sfh/203k/203k--df 

Thoughts on the White House press release from Real Estate Mindset including comments on the 203(k) - https://www.youtube.com/watch?v=zrwYhVsRm54&t=884s 

FHA is considering potential policy changes that could increase the funds available to borrowers to make renovations and repairs.  Other policies under review would permit more time for the completion of those improvements. These and other program changes will increase the use of FHA-insured mortgages to finance renovations that will improve existing homes and restore them to viable use, adding to the supply of housing in communities across the country.

The market is in flux right now, especially the housing market. For contractors looking to diversify their portfolio, it may be time to freshen up on what it looks like to work with the federal, state, and local government agencies that are looking to spend this “Build Back America” money. This story shows that at least some of those proceeds, if not additional funding, is going into the residential market for housing assistance, hopefully, more people will be able to get into affordable housing, as well as housing rehabilitation, allowing homeowners to access low-interest loans for safety, accessibility, and necessary renovations to their existing homes. 

While it’s not as simple as applying for the loan and then the work can immediately start, the process also isn’t as cumbersome as some might think. Charleston area real estate broker Bill Olson shared some of these requirements on his YouTube page.  

Biden’s homeownership actions could affect Charleston - https://www.youtube.com/watch?v=x8zILT2WfXM 

Requirements include: Could borrow up to $35,000 dollars, must use an approved contractor, the work has to start within 30 days of closing on the 203(k) loan, and the work has to be completed within six months. In our area, the requirements aren’t beyond the reach of most contractors so it would be in the best interests of contractors listening to check out what is available in their city, county, and state. 

For our local business, we have been doing some research and wrote a blog post covering some of the details for the City of Tacoma and Pierce County, Washington

Blog post on the Pierce County Home Rehabilitation program - https://www.aresrestoration.com/post/pierce-county-home-rehabilitation 

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Closing Thoughts 

President Biden proposed $16 billion for the Neighborhood Homes Tax Credit, which would result in more than 400,000 homes built or rehabilitated, creating a pathway for more families to buy a home and start building wealth.  

According to the website neighborhoodhomesinvestmentact.org the group estimates that each $1 billion in Neighborhood Homes investment would result in the following impacts nationwide:

• 25,000 homes built or rehabilitated
• $4.25 billion of total development activity
• 33,393 jobs in construction and construction-related industries
• $1.82 billion in wages and salaries
• $1.25 billion in federal, state, and local tax revenues and fees

In addition, this tax credit will improve property values, increase family wealth, decrease blight and abandonment in distressed neighborhoods, and create more and better options for shelter— all of which indirectly enhance multiple determinants of health and well-being in America’s residential communities.

The government claims it is investing in making housing affordable, but there are other actions that several construction groups argue are making building affordable housing more difficult. We had previously reported on the emergence of natural gas bans on Episode 97. 

TDP 97 Book #5, Gas Stoves, and 80s Prisons - https://www.youtube.com/watch?v=yf75eMi1ifg&t=229s 

It appears that the gas ban in New York has made it through their state legislature whereas the one in Berkley, California is at a stalemate for now - https://gizmodo.com/new-york-gas-stove-ban-lawsuit-1850931008 

The gas ban passed this May when New York Governor Kathy Hochul signed the All Electric Buildings Act. This made New York the first state to ban gas hook-ups in new buildings. The law aims to decrease the use of fossil fuels in the state and is supposed to take effect for new buildings smaller than seven stories high by 2026. This means those properties will not be allowed to use gas-powered appliances like water heaters, furnaces, and stoves. The policy will apply to larger buildings starting in 2029. It does not apply to existing buildings.

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