Tom Schotec shares how his real estate flipping business diversified into offering full transitional care services for individuals who were overwhelmed by the thought of moving in order to be closer to family, lowering their home’s maintenance needs, transitioning to more supportive care housing facilities and more. This is part 2 in this podcast interview with Tom, and in this episode we discuss his business diversification into the construction industry to ensure the quality of homes they were renovating. Take a listen!
Understanding the Mission of Transitional Care Through Real Estate
A Deep Commitment to People
Tom Schlodek’s extensive experience in real estate is driven by a genuine commitment to helping people, particularly those transitioning to new homes due to aging or other life changes. Tom emphasizes the importance of truly caring about people in this line of work. This is not about getting rich quickly; it’s about providing meaningful support and solutions to those in need.
The Human-Centered Approach
For entrepreneurs considering this business, it’s crucial to adopt a human-centered approach. Many businesses lack a focus on the human element, but Tom’s success story highlights the significance of empathy and genuine care in real estate. His approach is a testament to the power of building a business on strong ethical foundations and a genuine desire to help others.
Building and Renovating with Quality
Changing the Housing Market
Tom believes that his company’s approach will revolutionize the housing market. With an increasing number of people requiring transitional care services, there’s a growing demand for high-quality, quickly renovated homes. This innovative platform is set to change how real estate business is conducted over the next five years, particularly in serving the needs of aging populations.
The Post-COVID Landscape
In 2024, the real estate market is still feeling the effects of the COVID-19 pandemic. There’s a global shortage of workers who are both skilled and passionate about their work. Tom’s company purchases homes with deferred maintenance, taking on the responsibility of renovations. However, maintaining high-quality standards has been a challenge. Initially, quality control issues led Tom to halt construction altogether after just a home and a half.
The Importance of Quality Control
Quality control is paramount in this business. It’s not just about selling homes; it’s about ensuring that every product meets high standards. Tom’s company aims to keep homes on the market for no longer than two weeks, but this requires impeccable quality and speed in renovations. When quality was not up to par, Tom took decisive action, stopping construction to reassess and improve processes.
Strategic Hiring and Expansion
Nationwide Recruitment
Recognizing the need for skilled labor, Tom’s company began running nationwide ads to attract quality employees. They even considered buying a construction company to ensure they had a dedicated team with strong management and ethical practices. The goal was to find a company that excelled in both quality and speed.
Integrating New Teams
The integration process involved significant transitions for both sides. Tom’s company met with potential partners multiple times to ensure alignment in values and work ethics. The new team had to relocate to Northern Minnesota, making it a major life change for their families as well. This careful, thoughtful approach ensured that both companies could merge successfully and continue to deliver high-quality renovations.
Streamlining Operations
Efficient Remodeling
Tom’s company has refined their processes to complete full remodels in 15 to 18 days. For surface remodels, which involve basic updates like paint, carpet, and countertops, the turnaround time can be as quick as four days. This efficiency is crucial for keeping up with high demand and ensuring that homes are quickly ready for new residents.
Market Considerations
When selecting homes for renovation, it’s important to choose markets where people want to live. This reduces financial risk and ensures that renovated homes sell quickly. The company invests heavily in both fieldwork and office operations, coordinating every detail to streamline the process and maximize efficiency.
Lessons Learned and Advice
Looking back, Tom wishes he had known more about the comprehensive services people needed from the start. Offering only partial solutions left clients struggling with unresolved issues. Today, his company offers a full package of services to alleviate all burdens for clients. Understanding construction costs and streamlining operations with technology have also been crucial lessons.
Implementing Effective Processes for Company Growth
Leveraging Technology
Digital tools have been a game-changer for Tom’s company. Programs like Pipedrive help streamline communication and scheduling, ensuring that everyone in the company is on the same page. This eliminates miscommunications and keeps operations running smoothly. Every task, from ordering supplies to scheduling client calls, is meticulously tracked and managed through these digital tools.
Tom emphasizes the necessity of having such systems, especially when aiming to grow at scale. He mentions how his company is continuously working on improving their digital programs, even creating custom software to enhance operational efficiency. This system allows the company to monitor labor and material expenses, track project progress, and schedule services accurately.
Building a Reliable Network of Professionals
Another crucial element discussed is the importance of building a reliable network of professionals. This includes having connections with realtors and appraisers to understand market values, and licensed plumbers and electricians for essential home services. Tom highlights the shortage of these professionals and the need to establish long-term relationships to ensure timely and reliable service.
The Role of Realtors in Selling Homes
When it comes to selling remodeled homes, working with local realtors who have a good reputation and knowledge of the market is essential. These realtors help ensure the properties are marketed well, photographed professionally, and attract potential buyers. A trusted realtor can significantly impact the success of selling a home quickly and at a good price.
Continuous Improvement and Learning
Tom reflects on the evolution of his team over the past decade, acknowledging the improvements and efficiencies gained through experience and continuous learning. He stresses the importance of focusing on service quality and customer satisfaction. This mindset has been instrumental in driving the company’s growth and success.
How to Know More from Standard Home Buyers & Real Estate
For those interested in learning more about Tom Schlotec’s services, Standard Home Buyers & Real Estate LLC can be contacted through various channels:
- Toll-Free Number: 833-403-2020
- Call or Text: 218-208-3883
- Website: standardhomesllc.com
You can join us Part 1 of “How to Meet Transitional Care Needs Through Real Estate” to know how Tom Schlotec began his entrepreneurial journey as a house flipper and identified the opportunity to establish this service-based business.
