Are you tired of the high cost of housing? Well, in this episode, I had the pleasure of speaking with Mike Kaeding, founder of Norhart, a company that designs, builds, and rents apartments using technology and efficiencies to reduce construction costs and solve America’s housing affordability crisis.
Mike explains that there is no one magic bullet to solve the problem of high construction costs. Instead, Norhart focuses on solving thousands of little problems. One of the first things they did was bring all of the work in-house, which is not typical in the construction industry. Normally, different companies own the building, coordinate the construction, and handle different aspects of the project, such as plumbing, electrical work, and HVAC. However, Norhart handles all of these tasks in-house, which allows them to streamline the process and reduce costs.
Mike also notes that while there are exciting technologies like 3D printing, volumetric construction, and robotics that can solve specific problems, they are not a one-size-fits-all solution. Instead, Norhart focuses on finding solutions to many different problems to reduce costs overall. By doing so, they have already achieved a 20-30% reduction in construction costs and believe they can achieve a 50% reduction in the future. Ultimately, their goal is to solve America’s housing affordability crisis by making housing more cost-effective.
Mike shares some of the ways he stays grounded and successful, such as reading a book a week, attending masterminds and masterclasses, and networking with other industry leaders. He also stresses the importance of hiring the best people, even if they seem expensive on a per person basis. The best people outperform average people by two to three to five to ten times as much, making them actually the least expensive on a per unit produced basis.
If you want to learn more about Norhart and their mission to revolutionize the way apartments are built and managed, check out their website norhart.com
Thanks for tuning in, and I hope you found this episode as informative and inspiring as I did.
So, if you’re interested in real estate investing, Tune in now, this episode of Multi-Family AP 360 !
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