Catalyst owns and operates 2000+ units across Texas. Our core strategy has been acquiring properties that present value-add opportunities that allow us to drive the NOI and thus increase the value of the properties.
We learned early on that having control over the capex execution is very critical in a multifamily investment, as it can significantly impact the performance of the investment. With that in mind, we decided to build our own in-house construction capabilities in the early days of our Multifamily journey and have had tremendous success on our projects by doing so.
Here are some benefits we saw of bringing Construction in-house:
1. Control Over the Construction Process: By having an in-house construction company, we had greater control over the construction process. We could set our own timelines, quality standards, and design preferences, which can helped ensure that the project met our investment goals and objectives.
2. Faster Turnaround Times: It helped us expedite the construction process, reducing the time required to complete upgrades and renovations. This resulted in faster unit turnover and increased rental income.
3. Cost Savings: An in-house construction team can often perform work at a lower cost than hiring outside contractors. We saved money on labor and other overhead costs associated with managing multiple contractors.
4. Expertise and Knowledge: We could develop specialized knowledge in house around construction and renovation. This helped ensure that the company was implementing best practices and using the most cost-effective materials and techniques.
5. Quality Control: With an in-house construction team, we had greater control over the quality of work performed. We could establish our own quality standards and ensure that all work met those standards.
Like any other endeavor in business, trying to build an internal specialized team had its challenges and required some investment, but once we got it set up, the benefits were multifold.
Having Construction in-house has given us a lot more control over our Assets. The benefit was especially pronounced the last couple of years (post covid) with labor and material challenges that the industry encountered. With our in-house team we could navigate those challenges effectively and stay on track with our construction schedules while meeting our investment goals.