Why Flippers Are Switching to New Construction in Today's Market featuring Hossein & Hamed Tavakoli

From The Collective Genius Podcast · 43:25

Show by Leon Barnes

Hossein and Hamed Tavakoli are brothers and Collective Genius members who run Shiny Homes, a new construction company building in Hood and Tarrant Counties on the west side of Dallas Fort Worth, along with land acquisition, brokerage, and financing companies. They immigrated from Iran on student visas and earned master's degrees in civil engineering and computer science, then moved from house flipping in 2016 to new construction in 2019 and never looked back. In this episode, they explain why building 40 to 50 miles outside the metroplex brings the same profit with less competition, and how shrinking floor plans from 1,900 to 1,400 square feet keeps homes affordable and selling. If you're a flipper thinking about moving into new construction, or a builder trying to stay profitable with today's rates, this one's for you. Timeline Summary [1:29] – Host welcomes the show's first brother duo, new construction builders from Hood and Tarrant Counties in DFW [5:27] – Why building 40 to 50 miles outside the metroplex means less competition at the same profit [7:25] – $10K lots vs $30K to $35K in Fort Worth, with similar new construction resale prices [8:32] – Why county permits and inspections beat dealing with the City of Fort Worth [9:56] – Immigrating from Iran and seeing a wood framed house for the first time [11:27] – A lot for sale sign in White Settlement, a $25K purchase, and shadowing a builder named Austin [13:31] – Budgeting for unknowns and why new construction surprises are minor compared to flipping [15:34] – Land acquisition in 2026: fewer direct mail calls, more competition, sellers expecting top dollar [16:46] – Shifting to targeted build areas and subdividing 100+ acre tracts for cash or seller financing [19:11] – What builders talk about at Collective Genius: selling strategy and the cash conversion cycle [21:06] – Building 1,400 sq ft homes at $240K instead of 1,900 sq ft at $330K to sell faster [24:21] – Reading Rich Dad Poor Dad in Farsi and leaving a civil engineering career in 2017 [29:35] – Hamed joins full time in November 2020 and why trust makes a family partnership work [35:26] – Plans for 2027: seller financing, new construction methods, and homes under $200K [37:01] – Robot built homes aren't ready yet, but AI is already cutting acquisition marketing costs [41:35] – Where to find the brothers and Shiny Homes 5 Key Takeaways Go Where the Competition Isn't — Moving outside the metroplex let them buy lots for $10K instead of $30K+ while selling homes at nearly the same price. Permits and inspections in the county were faster too. Pay to Learn Your First Build — With no new construction experience, they hired a builder for their first house and shadowed him the whole way. They hit his timeline and profit numbers exactly. Fewer Unknowns Means Predictable Profit — Hidden repairs kept their flips over budget and behind schedule. New construction still has surprises, but a small contingency covers them. Smaller Homes Sell Faster — Their 1,400 sq ft homes at $240K are flying off the shelf, while 1,900 sq ft homes at $330K sit for three months. With rates this high, the cash conversion cycle matters more than square footage. Follow What the Market Wants — Cash land sales have gotten harder, so they're subdividing large acreage and offering seller financing. Meanwhile, small AI tools are cutting their marketing costs while bigger tech like robot built homes catches up. Links & Resources Collective Genius: https://explorecg.com Enjoyed This Episode? If cutting 500 square feet off a floor plan to sell homes faster got you thinking, send this episode to a builder or flipper who's feeling the squeeze right now. And if you got value from it, follow, rate, and review the Collective Genius Podcast so you never miss an episode.

More episodes of The Collective Genius Podcast

More episodes

PodSearch is a free, independent podcast search engine. Read about PodSearch, the privacy policy or contact us.