Too many people lack stable housing, but how do we solve that crisis? One method is creating affordable housing, but that’s not a permanent solution.
Enter Mike Kaeding: he aims to rebuild the housing system in America. He wants a solution that ends the problem permanently.
Tune in to find out how he leverages business success into a solution to one of America’s biggest problems.
Here are some power takeaways from today’s conversation:
- The long-term solution to housing in America
- Why you should (or shouldn’t) get unaccredited investors
- Hire the right people for your company
Episode Highlights
[02:38] Mike’s BHAG
Mike’s company, Norhart, reduced construction costs by 30%. They aim to rebuild the housing system by building more housing. By increasing the supply to match the housing demand, they hope to bring prices down.
[10:05] Mike’s Journey
Mike’s company has thousands of units, but their platform is construction. They do all manufacturing and most trades in-house as well.
Mike’s parents started the company, but he’s been involved even while young. He initially didn’t want to be part of the business, but his dad encouraged him to take over. The company doubled in size every few years.
[14:36] Finance Talks
Banks typically fund 75% of a project, but the true constraint is human capital. Mike’s company needs top talent. They’ve recently opened up to outside investors and are considering removing the bank so investors can get more returns. They’ve also created a system to get around the problems of accepting unaccredited investors.
Notable quotes from the Episode:
[07:18] “The average American’s salary, about 30% of that goes to housing. My dream is to make that 15% rather than 30%.”
[09:51] “How do we make the whole system, how do we figure out the whole nation to be affordable in the next five to ten years?”
[12:05] “I didn’t really know what I was doing, but I think that was sort of the magic because we could start questioning everything. Like, why is construction done the way it’s done?”
[30:01] “The number one thing that I learned, and it totally changed the game of our company from growing at meager rates to now growing very substantially and seeing a radical improvement in this industry is one simple thing: It’s hire the very best people.”
Resources Mentioned:
Connect with Wyatt Graves: LinkedIn | Website
The Mentee Podcast: Website | Apple | Spotify
Connect with Mike Kaeding: LinkedIn | Twitter | Instagram
Invest in apartments with Norhart
About Mike
Mike Kaeding is the CEO of Norhart, a housing construction company aiming to end the housing crisis in America. They hire based on their values, and their mission drives the culture at Norhart.
Mike is a visionary aiming to accelerate his company’s growth through innovation and analysis. He has a vision to deliver only the best cost-to-value for Americans looking for housing.
Connect with him through LinkedIn, or visit his company’s website.
