On a recent episode of the Relentless Growth Podcast, my co-host Jack Mayer and I dug into something every builder and real estate investor is dealing with right now: how do you keep a construction and real estate business healthy when interest rates are high and the market feels uncertain? We talked through how we’re thinking about it at Apex Professional Construction, and the short version is that you can’t sit around waiting for conditions to be perfect. You have to adapt.
Operate Independently of What Rates Might Do
I’ll be the first to admit neither Jack nor I is an economist. Funny enough, I never even took an economics class in college. But once you’re an entrepreneur, this stuff affects you heavily no matter what business you’re in, so I spend a lot more time than I ever expected staying up to date on it. The honest truth is none of us know exactly what rates are going to do. So rather than betting the business on a forecast, we try to operate our company independently of that uncertainty and make decisions that hold up whether the market improves quickly or takes its time.
Diversify Revenue Using the Skills You’ve Already Built
The biggest theme of the conversation was diversification. Traditionally we built and sold houses, then we moved into multifamily. But over the years we’ve built up a lot of skill sets, and the question we keep asking is how to use those to create a broader base we can grow from when things get better.
That’s led us to look at offering HVAC service and installation to the community, landscaping, and property maintenance, all built on capabilities we already have from years of construction work. We’ve built a lot of units in our local market, and there’s real opportunity in continuing to serve that same market in more ways rather than relying on a single revenue stream. When new construction slows, having multiple ways to serve customers keeps the business moving.
Look for Opportunities Where Others Aren’t
The other piece is being willing to chase deals most people would overlook. A good example is a property we picked up just outside of town, close enough to restaurants and shopping but with a real country feel. The house sits on a two-acre lot, and it comes with an additional two-acre lot right next door. The plan is to flip the house, and if it works the way we expect, we’ll essentially be into the land next door at almost nothing once we’re done. Then we can build a really nice spec home on that extra acreage.
I’m honestly not a huge fan of flips as a general strategy, but we go where the opportunity is. The biggest lesson is this: if everyone else is beating their head against the wall trying to build in the same neighborhood that won’t sell, look for a way to do something a little differently. That’s what sets you apart in a tough market.
The Bottom Line
High rates and an uncertain market don’t have to stop a good business. They just force you to be sharper about how you create value, diversify what you offer, and find the opportunities other people are walking past. That mindset is what carries you through to the other side.
At Apex Professional Construction, we build single-family and multifamily homes, take on commercial projects, and help clients across Central Arkansas navigate their construction and real estate goals in any market. If you’ve got a project in mind, give us a call at 501-500-5177 or request a quote.