EP. 48: Skyline Report: What the Data Says About NWA

Northwest Arkansas stands as a remarkable outlier in today's real estate landscape, defying national trends with consistent, impressive growth across residential, multifamily, and commercial sectors. While markets like Austin and Dallas experience 20-30% downturns, NWA continues its upward trajectory with home sales increasing 14.2% year-over-year according to the latest Skyline Report.

The numbers tell a compelling story: average home prices reaching $449,750 in Benton County (up 7%) and $402,322 in Washington County (up 4%); new construction comprising an unprecedented 38.5% of all sales; multifamily vacancy rates holding steady at just 3.3% despite new inventory; and commercial vacancy decreasing across all categories. Behind these figures lies the fundamental driver – 37.5 people moving to Northwest Arkansas every day, creating consistent demand that developers and investors are racing to meet.

What makes this growth particularly noteworthy is its foundation. Unlike the pre-2008 housing boom built on questionable lending practices, today's Northwest Arkansas expansion is fueled by massive corporate investment and infrastructure development. Walmart's $7 billion headquarters campus, Alice Walton's $700 million health center, and numerous other projects signal long-term confidence in the region. This creates what local investors call "stickiness" – people come for jobs but stay for the lifestyle, mountain biking trails, lakes, vibrant downtowns, and relative affordability.

For investors considering Northwest Arkansas, the message from local experts is clear: diversify across submarkets, consider emerging areas like Highfill and Lowell, and focus on consistent, strategic acquisitions rather than trying to time the market perfectly. With record building permits, infrastructure improvements, and strong economic indicators, the runway for growth extends well beyond the immediate horizon. Whether you're looking to buy your first home, add to your investment portfolio, or establish a business to serve this growing population, Northwest Arkansas offers opportunities that many larger, more established markets simply can't match.

Episode Transcript

Speaker 1 (00:07):
Welcome to Northwest Arkansas Investing Podcast.
Thank you guys for tuning in.
Today we have a special episode.
It's just going to be the threeco-hosts today, no guest.
We're going to go over somegreat stats, some great
reporting for the area.
A lot of this stuff will helpyou, as a listener, make a
decision for Northwest Arkansas,give you some insight and some
wisdom to what we're feeling inthe market just our feelings and

(00:29):
then what the data is showing.
I know that a lot of people tunein and they're wanting to know
like is the market growing?
Is it decreasing?
We'll be able to show you inthis episode the areas where we
are growing and the areas thatwe're kind of scratching our
head and wondering what's goingon.
So we wanted to start with likea one-page overall summary.
Now we got the Skyline Report,which is a report here that like

(00:50):
shows us what's happening inthe real estate market for
Northwest Arkansas, and so we'regoing to start with this one
pager and then we're going to gointo residential, we're going
to go into multifamily and thenwe're going to go into
commercial and we're going tobreak it down like that and I
kind of put it that way becauseI think that's probably the area
of importance that people areprobably listening.
Uh, no hate to commercial ormulti-family, just, uh, that's

(01:12):
what we're going to do.
So, brandon, do you want tostart us off with how we're
going to structure this is?
We're going to kind of say astat and we're going to talk
about it.
Stay, say a stat, talk about it.
So, brand, brandon, get usstarted with a stat from the
Skyline report.

Speaker 2 (01:26):
Yeah, I think there are a lot of numbers that jump
off the page obviously on a lotof these things.
But I think obviously we canstart with the very top and what
we're seeing as far as volumeof homes sold, you can look at
all the stats across everythingthat you're seeing.
Look at all the stats acrosseverything that you're seeing.
Volume is up from first half of2024.

(01:47):
Sales prices are up, whichwe'll get into Just overall.
It's kind of astounding whenyou're seeing a lot of these
national headlines of Austin'sdropping 20%, dallas is dropping
30%, florida's dropping evenmore.
There's a crisis going ondropping 30%, florida's dropping
even more.
There's a crisis going on.
But then you look at what'sgoing on here and you're in the

(02:08):
market and you see that thenumbers are still jumping off
the page.

Speaker 1 (02:10):
I think that speaks to a lot of I have people ask me
all the time like, am I toolate?
Has Arkansas already found out?
And I tell them over and overagain no, you have plenty of
runway left.
I mean willansas become to getto a spot eventually where it's
like an lesson, maybe I don'tknow, but it's too far down the
line.
It's like in my head it's likea 20 plus year thing where it's

(02:33):
like I mean, why even thinkabout at this point?
Like it's, it's a good time tobuy?

Speaker 2 (02:37):
yeah, so absolutely so, yeah, I think I think, going
into that, the biggest stathere at the top of the page
we've've got 5,339 homes weresold in the second half of 2024,
an increase of 14.2% from the4,674 homes sold a year ago and
an increase of 11.3% from 4,799homes sold in the first half of

(03:00):
2024.
So I mean even just seeing kindof where we're at there
compared to, I mean there's somenumbers from 2023 and 2022 when
rates were still a little bitlower, much higher than even
what they are now on a unitvolume.

Speaker 1 (03:18):
What do you guys attribute that to?

Speaker 3 (03:21):
Brian.
So NWA Council just came out37.5 people moved here a day
confirmed.

Speaker 1 (03:27):
Okay, I've been on the board with that stat.

Speaker 3 (03:29):
Yeah, 39, I mean 39 has been thrown out, 30, 40, but
37 and a half people movinghere a day.
So there hasn't been anyslowdown in Northwest Arkansas.
I think in a lot of othermarkets people are migrating in
and out of the market.
You know Dallas has still.
In a lot of other marketspeople are migrating, um, in and
out of the market.
You know dallas is still seeinga lot of growth.
But austin, like you said, hasseen significant decrease and I

(03:53):
think you know, just becausethere is a you know nwa,
eventually will, you know, notgrow as fast as that has been
growing.
Yeah, but if you're buyingright and you're investing right
, you can make money in any kindof market.
Like if I was living in Austin,texas, I would be not in a good
position mentally If I said Iwish I would have invested 10

(04:14):
years ago.
You know there's still time toinvest.
You know 10 years from nowwe're going to be wishing we
would have bought more.

Speaker 2 (04:25):
We wish we would have done things differently.
So, yeah, I think there there'sno stat to this, but I think
there's also just being in themarket there's something, for
there's still a culture of that.
Buying a house is a part of theamerican dream and in northwest
arkansas, probably in a lot ofother places in the south too.
But the way I talk, you knowtalking to first-time homebuyers
, you know there's a lot offolks that it makes a lot more
sense for them to try to rent incertain areas that they want to

(04:48):
be in at this point whereinterest rates are.
But they still want to buy.
Number one, because they seethe value long-term of where
equity could go.
But number two, I think there'sstill that dream of I get to
have a house.
This house is mine.

Speaker 1 (05:04):
There's no stats to put to that it's still
attainable in North-OastArkansas.
If we jump down one or two lineitems here, it says we're going
off of the average home pricesold for this area and think
this is a cool stat.
You can compare it againstnationally In Benton County.
If you're listening, itincludes Bella Vista,
bentonville, rogers, that sortof anything coming like north of

(05:26):
Springdale.
That's going to be BentonCounty and then Washington
County is going to beFayetteville, springdale,
farmington, prairie Grove, thatsort of stuff.
So the second half of 2024, theaverage price of a home sold in
Benton County was $449,750.
That's 7% higher than a yearago, and in Washington County
the average price was $402,322,which was 4% higher than a year

(05:57):
ago.
So our official price per homefor the area is now about
$400,000.
I think we were seeing at leastone of those last year, I would
think.
So I think that's still,relatively to the nation,
affordable.
Now that's the average, whichmeans you can still get homes.
I mean, I'm seeing homes in allthe time $250, $275.

Speaker 2 (06:18):
Yeah, I guess the bigger stat that folks would use
around the country would bemedian home price, right?
I mean, you probably see that alot around when you're studying
certain areas.
Median home price is more ofwhat they go off of which you'll
see in the news would be like,well, probably $420,000, give or
take $440,000.
Nationally it probably variesfrom there, but I think we're

(06:38):
still around like $380,000median home price give or take
in Northwest Arkansas.

Speaker 3 (06:43):
It's interesting, there's about a $50,000 gap
between Washington County andBenton County, Benton County
commanding $50,000 higher per onthe average for a home.

Speaker 1 (06:55):
Well, what do we attribute that to?
What do you guys think Walmart?

Speaker 3 (07:00):
True.
What's their?

Speaker 1 (07:01):
camp is like $4 billion or something.
Well, is it three or four?
It's like $7 billion orsomething.
Was it three or four?
Yeah, it keeps increasing.

Speaker 3 (07:07):
I mean the Walmart.
It's not just the Waltons butthe Walmart effect of having the
home office here 10 years ago.
Having to have a home officehere just really expands Benton
County.

Speaker 2 (07:19):
For sure.
Then you look at just howNorthwest Arkansas was 10, 20
years ago, how undevelopedRogers and Bentonville was over
the last 10, 20 years, and so Ithink some of that also
attributes to how much newdevelopment is happening in
Benton County, whereasWashington County has

(07:40):
historically been more developed.
Springdale was kind of, it waskind of used to be Springdale
and Fayetteville historicallybeen more developed.

Speaker 1 (07:45):
Springdale was kind of it was kind of used to be
springdale and fayetteville.
Yeah, you know, well, being kindkind of a thought to that is
maybe the price.
The average price for hope islower than benton county because
we have, you know, I think bothspots have equally the same
amount of like rural cities perse, but the you're going to get
a lot more affordable housingand bigger numbers in like a

(08:07):
farmington and a prairie groveand elkins as opposed to like a
gentry or grab it.
You're not going to have likethere's a bunch of building
permits happening in farmingtonand prairie grove which might
which those new builds are lowerpriced too, so like you're not
going to have those.
You know you're not going toget like a three hundred
thousand dollar new build close.

(08:28):
You know they are there hereand there in benton county but
I'm going to say your moreaffordable new building is
probably going to be inwashington county for the most
part.
Yeah, there's stuff happeningin high fill and gentry and
prayer grove and our um p ridgeand stuff like that.
But as for a whole, in thelonger term, like we've seen
lower priced homes in these morerural spots in washington

(08:50):
county, which could be bringingthat down as well right, I think
.

Speaker 2 (08:53):
I think, uh, going off of that, you kind of keep
rolling down the list and and uh, one of the cool stats on here
interesting stats I guess is38.5 percent of all homes sold
were new construction.
It says the highest total andfourth highest percentage of new
construction in Skyline history, I think historically.
I was looking at that stat.

(09:14):
New construction makes up about, I think, 10 to 15% of the
market before COVID likepre-COVID, covid like pre-COVID,
and with us we're in this kindof interest rate I guess hold,
if you will with so many peoplelocked in at low rates.
Maybe they rented it out, maybethey're going to plan to live

(09:35):
there for a long time, but it'skind of created this need for
new housing and so I think thatis attributed to a lot of that.
And then our area specificallyis even more in need of it
because of the 37 and a halfpeople or whatever.

Speaker 1 (09:46):
Well, if I have an out-of-state client coming in,
I'm probably pushing themtowards new construction, for
the most part Because you get anew product for maybe $5,000,
$10,000, $15,000 more than apre-existing product, with a
builder's warranty.
It'll come with a fridge,washer, dryer and maybe some
sort of interest rate special.
And you know, shout out, drhorton, you know you can get

(10:09):
something that's like almost thesame price as a pre-existing
home.
It's like, why the heck would Igo with a pre-existing home if
I can get this new constructionfor, like just on my monthly
payment, five dollars more amonth or whatever.
So, and it could be less witheven the interest rate special.
So yeah, dr horton and lenorebeing in this area for new
construction, I think that we'regoing to continue to see that
number probably increase.

Speaker 3 (10:25):
It's almost laughable how much money they're able to
bank themselves, like they'reable to just give their own
potential buyers a mortgage.
Yes, like that's how much moneythey're making.
They're able to just providemortgages on there, which is
interesting.
I think there's a couple ofdifferent factors for the new
construction.
One, because you guys deal withit more than I.
You're dealing with emotion,with first-time homebuyers.

(10:45):
You're not dealing with math,like a lot of times.
For sure On this episode we'retalking a lot about math.
But you guys are dealing withthis first-time homebuyer that
wants a new product, that wantssomething that has never been
lived in before, that wants tomake the soft-close cabinets or
paint color Backyard needs,wants to make the custom, like

(11:07):
soft close cabinets or paintcolor, paint coat, like all the
yard needs to be pretty.
Yeah, all the different custom.
So I think that that's a factor.
But then just back to the stat.
We talked 14.2 increase in homesales.
You know you guys are like youguys just came out also shout
out brandon and zach uh, top 50both in boy, let's go.
That's the type of A players wehave on this podcast.
But 14.2% increase from lastyear.

(11:32):
So the current inventory can'tkeep up with the demand.
So when your current inventorycan't keep up and we'll talk
about that more with multifamilyyou have to start swinging
hammers, you have to build newproducts.
So I think there's a mix ofthat first time home buyer and
then you know, just such a hugedemand.

Speaker 1 (11:52):
Well, dr horton and lenard know that too.
Yeah, and that's why they chosethis market because they saw
that we need x many more homesfor 10 plus years to even have a
six month supply.
So they're like like I meanguaranteed money, I mean, why
not come into this market?
This is why we have these bigplayers.
When you see big players likethat come into markets, like

(12:13):
your alarm as an investor shouldbe going off, like something's
happening here.
Something's happening here.
Why is the whole foods gettingplanted there?
Why is why are all these bigchains starting to come into
Syria?
Well, they have years and yearsof expertise and insight that
like we don't have.
So like we might want to likepay attention to that.
So I think that's something, asa listener, to listen to.
Like we have these huge builthome building companies coming
in here for a reason.
We have Walmart planting athree to $4 billion campus.

(12:37):
For a reason we have a $700million Alice Walton health
center happening.
For a reason they're not justdoing that.
People don't throw aroundhundreds of millions and
billions of dollars for funsies.
So it's happening for a reason,and the reason is that there is
great, it's awesome.

Speaker 3 (12:54):
Yeah, I love that.
That's such a good point.
Follow the trends.
We do it all the time whenwe're investing in multifamily.
If I'm buying an A-class, Ilove investing in multifamily.
If I'm buying an A-class, I'dlove to see a crumble cookies
right next to it.
Or, like you know, starbucksand Whole Foods.
That's selfish.
Starbucks and Whole Foods arelike the obvious ones too, but
like crumble cookies, you're notputting a crumble cookies next
to a C-class.
You know an old apartment.

(13:16):
You're putting that somewherewhere someone can't afford a $5
cookie.
So it's the same thing.
Like you're following the thetrends.
What are the people that aremaking more money than I am?
What are they doing?
Yeah, walmart has such.
The northwest arkansas has such.
Uh, stickiness is what I liketo call it.
You know, someone might open apanasonic facility in detroit,
michigan.

(13:36):
It'll have people.
They'll do a three-year stintthere.
Then they'll go back off andclimb the corporate ladders
somewhere else.
But Northwest Arkansas peoplecome here, do their Procter
Gamble stint or their Nestle orHershey stint and then they're
like oh wait, this is a coolplace to live.
There's a lot of cooldevelopments going on, and then
they start buying that home.
So it creates that stickinesswhere they're not just coming

(13:58):
and going.

Speaker 1 (13:59):
This is a lifestyle place.
This isn't just a workplace.
Like a lifestyle place.
This isn't just a workplace.
I got a mountain bike.
There's lakes, there's greatgolf, it's a pretty.
We have pretty terrain here.
I mean I would say it's kind oflike great value Colorado
Rockies.
We call them mountains.
They're more like hills, butit's at least a pretty terrain
here.
It's not just flat.

(14:20):
Now Sandrington's a little flat, I don't know.
Yeah, this part's good, thispart's good, you should.

Speaker 3 (14:25):
listeners should listen to the interview we just
had with Tom Allen, just talkingabout that that we'd go really
into the designing of thelandscape of, specifically,
rogers Pinnacle.
But you talked to our otherepisode with Mayor Sprouse, you
know, talking about that howthat skyline has not skyline
because that's a bad word,because there is no skylines in

(14:46):
Northwest Arkansas but thatfootprint of this particular
city has evolved.

Speaker 1 (14:53):
Well, I think, kind of connecting our couple past
guests.
I think what we're seeing withTom and others is that we have
37 people moving here a day.
So what does that mean?
There's a real focus oninfrastructure.
I think what we're hearing froma lot of people and there's a

(15:13):
lot of foresight to that andpeople looking into it and data
going behind it and smart peoplefrom our area are going hey, we
have 37 people a day movinghere.
That is a fact.
We've been knowing this trendfor a while.
What are the things we need todo to make sure that we are on
pace for having correctinfrastructure here?
And so go back a few episodesand listen to Mayor Doug Sprouse

(15:36):
and Tom Allen and others andyou'll see they're thinking
about this and the high-levelplayers are thinking about this.
I thought it was so cool likethis area getting started, like
we had input from big playerswere like probably like the
local government should havebought and paid for street side
guttering and pavement and stuff.
But these big local players arelike we believe in this area.

(15:58):
Hey, local government, likewe're going to help out, we're
gonna, we're gonna put thesestreet, these street signs, and
we're gonna put, we're gonna payfor these lights and this
guttering, and I think that justspeaks to the buy-in of the
local community here.

Speaker 2 (16:08):
So yeah, big time, really big time.
Yeah, it was interesting tolisten to.
I went to the Benton CountySkyline Report and the mayor of
Bentonville.
They talked a lot about it andthey had a department of
transportation, the director ofthat, and they had another lady
who's kind of helping withdirecting kind of, yeah, I guess

(16:29):
the bike trails and stuff likethat and uh, just how they're
trying to.
You know how dense it continuesto get and the infrastructure
and everything we talk aboutlike that could that could be to
our demise at some point.
Yeah, and it could make it amiserable place to live if it
continues and we don't updateinfrastructure and we don't
create these new ways thatpeople can travel and get around

(16:50):
.
And so it was interesting tohear kind of what, the way that
they're thinking and their fiveand 10 year plans and get used
to construction.

Speaker 3 (16:57):
Yeah, Stay tuned for some episode.
We're going to get some cityplanners on here.

Speaker 2 (17:09):
I think that'll be really interesting for our
listeners to to hear from themtoo.

Speaker 1 (17:11):
Yeah, absolutely so let's um, yeah, brandon, you got
something.
No, I was just gonna yeah, wecan, we can dive in.
Uh, I'd like to at least hitthe vacancy rate.
I think that's a cool stat.
How how low vacancy rate ishere if you're listening and you
don't know what vacancy ratemeans.
Um, that's just basically likehow many people like what's the?
What are the stats behind?
Like getting your apartment andyour multi-family filled?
Like, how how many units areyou?

(17:31):
How open are you?
Multi-family vacancy rateremained 3.3 percent for the
second half of 2024, even withthe additional six new and
completed complexes, with 506total units and 281 available
units.
With the six complexes removed,the overall vacancy rate
decreased 2.9%.
So we saw, with all this extramultifamily 506 extra units in

(17:56):
the second half of 2024, likevacancy still like barely went
up and it's like I mean there'sa need that tells you, if you're
reading that data, that tellsyou there's a need, there's
people that need housing andaffordable living, and so I
think Brian can shout from therooftops about that all day.

Speaker 3 (18:15):
Yeah, as a multifamily investor and looking
at a market that should bemusic to your ears, that is a
very good indicator of strength,of a market that can bear more
multifamily development.
Even with new complexes comingonline, remaining that low in
vacancies is really unheard ofnationally.

Speaker 2 (18:36):
And Brian too, do you know?
You may or may not know off thetop of your head national
vacancy rate for apartments?
I mean probably eight plusright.

Speaker 3 (18:46):
Yeah, I mean we're five to 10%.
Five is a low but usually youwant to bake in 10% economic
vacancy and whether that's 5%vacancy or 7%, you know you want
to have a little bit ofconcessions for offers that
you're offering new tenants.
You know some people don't putthat in their underwriting

(19:06):
concessions where you'reoffering $200 off your first
month to get them in and thensometimes, especially with B and
C class, you'll have a residentthat falls into hard times and
they simply can't pay theirbills anymore and you have to
get them out and you have baddebt now that you know you
didn't collect on for a coupleof months.
So we like to bake that intoour underwriting, but usually

(19:28):
around 10%, you know, for B andA class deals.

Speaker 1 (19:32):
So something I think to keep an eye on going forward
for us is another stat.
The multifamily market has anadditional 7300 units under
construction and 19,900announced through the region.
This represents 48.5% of thecurrent inventory in northwest
Arkansas, and so I know there'sa lot of great stats too.
I think this is something moreso to keep our eye on and the

(19:55):
effect it has over.
Now this stat is like based offcould be like a two or three
year developing type of thingwhere, like, these units won't
all be like ready to rent foryeah, maybe even longer, for
years or longer.
But I mean, if all thatinventory hit the ground right
now, the vacant area rate wouldshoot up.
But it's not.
It's going to happen over aperiod of time.

(20:15):
So we're going to be able tosee like, hey, with an
additional like gosh darn near30, close to 30,000 units like
hitting the ground over the nexttwo, three, four years, like
what does that look like forthis area and does that change
the vacancy rate?
So, more so, something to keepyour eye on.
But I thought that was reallycool, uh, that people are seeing

(20:35):
the need in the low vacancyrates.

Speaker 2 (20:36):
Yeah, I think it's important too, and we want to
get to a healthy level as itcomes to Northwest Arkansas, and
I think that's big.
I mean it's interesting forinvestors to continue to think
about.
As far as rent projections too,right, I mean, I think the days
of getting aggressive with rentprojections on what you could

(20:58):
potentially get are.
I mean, I think you need to belooking a little bit further
into an area and probably beinga little bit more conservative.

Speaker 3 (21:06):
If I had to guess on underwriting for future rents
and things like that, withtaking something like that in
mind, right, yeah, 100%, Can'tbe too aggressive on your rent
increases with that kind ofadditional units online and then
we'll break down that actuallybreaks.
That's not just all in, youknow bella vista or asylum

(21:27):
springs or in center 10 or justin one market.
So, yeah, we'll go into thathere in just a second um, but
more speaking high level, beforewe kind of go into these
different markets, these numbers.
Everything we're talking aboutis decreasing.
Overall vacancy rate forcommercial property has
decreased to 5.8% from 6%.
Office vacancy rate hasdecreased to 6.3%.

(21:50):
Retail sub-market decreased to4.9% from 6.2%.
Warehouse vacancy ratedecreased from 8.8% in the first
half to 7.6%.
So all of these under 10%.
Office vacancy has gone up to30% and some markets are higher,
even 50% in some Western coast.

(22:11):
Warehouse vacancy actuallyincreased Post-COVID.
It was ultimate low but thepast couple of years that has
been slowly increasing as morepeople.
During COVID a lot of peopleinvested into warehousing and
then the need decreased withpeople spending less money.

(22:32):
But these office vacancy,retail vacancy, warehouse all
decreasing just again signalsvery big, a lot of strength in
the market.
Yeah.

Speaker 2 (22:43):
And those are all national average, easily double
digits.
I mean 10 plus around thecountry, if you had to guess.

Speaker 3 (22:51):
I think a theme to hear is rising tide lifts all
boats.
This shows the economicstrength in Northwest Arkansas.
As wages continue to increase,we're still remaining somewhat
affordable compared to all thisgrowth.

Speaker 1 (23:04):
Which is, I think, crazy.
I mean, I think it's reallycool in this economy and we're
seeing more and more high payingjobs in this area as well, and
people are able to afford.

Speaker 2 (23:14):
Businesses are flourishing too.
I mean, everything's kind ofclicking.
It seems like.

Speaker 3 (23:18):
On those units.
You mentioned a lot of unitscoming online and something to
keep in mind too sometimesdevelopers plan for units to
come online but they don't breakthe ground.
They have construction stalls,they aren't able to capitalize
it.
So there's a lot of planneddevelopments that do not ever
make it out of know, out of themove dirt.
Yeah right, absolutely.

(23:38):
Fayetteville has the most ofthose, of almost 7,000, 6,700
units were announced forFayetteville, so wow, I mean
that'll do something for youruniversity housing crisis.
And Fayetteville.

(23:59):
So overall, nwa decreased, butFayetteville for the second half
of 2024, it was the onlysub-market to increase the
vacancy rate.
So vacancy, but I mean from 1.9, it was crazy low and this also
is probably a signal to why somany people are ready to start
building.
It was at 1.9% and that'sjumping to 3%, which is causing

(24:26):
some people it's crazy.
Yeah, so it increased, butstill at 3%.
It's still one of the lowestsub markets.
It's still below that average3.3 for the for nwa as a whole.
So, yeah, we'll see.
You know, that's just somethingto keep an eye on, like for the
6700 as they come online.
Um, what does that vacancy do?

(24:49):
And this chart goes evenfurther one bedroom, two
bedrooms by the bed, and justhistorical, from 2006, all the
way to 2024,.
You know, 2006, 5%, jumping upto about 15% in 2008, 2009, then
straight from there, 2011, itwas back down to 4% and then it

(25:14):
hasn't.
It has stayed.
The vacancy rate forFayetteville, particularly, has
stayed under 5% since 2011.
Yeah, it's freezing, and so it'sshows a need.

Speaker 2 (25:26):
And it's like Really the same thing what you'll see
across Springdale as well.

Speaker 1 (25:33):
Something I saw was the number of building permits
issued in Northwest Arkansas forthe second half of 2024
increased to three thousand andseven, which is the highest
number of permits since 2006.
Benton County accounted for twothousand sixty five of those.
So again, talking to that's,two thirds of that number is

(25:53):
happening in Benton County,which is crazy.
I mean I would say I'm going totake a wild guess, before I
even look on the back of this,that Bella Vista is accounted
for.
A lot of that number ishappening in Benton County,
which is crazy.
I mean I would say I'm going totake a wild guess, before I
even look on the back of this,that Bella Vista has accounted
for a lot of that.
I mean, let's see second halfof 2024, bella Vista had 392
building permits issued.
That's a lot.
I think that's the most in thearea.

Speaker 3 (26:13):
Oh man, did you see the speaking of Bellalla vista?
They just announced, with the,the location of the um the
biking the dust, the new uhbiking trails where the uh
they're gonna have ski lifts forbikes, basically bikes yeah
basically a ski resort for bikesin bella vista.

Speaker 1 (26:30):
I've had a lot of investors calling me about that
and we've been targeting.
There's like a if I could showit to you on the map, I would
but there's an area where homeprice is just like you're seeing
homes that are on the market.
That got announced and theyraised it like twenty thousand
dollars because, like they canget, like anything near that
area right now is just justgoing.
So, um, I think that's going tobe a really cool attraction for

(26:53):
belvis and it's south bel.
So, listener, listening, it'slike where you could be at the
lift station you could go eat oreat at, uh, ride your mountain
bike down and then you can goget in your car and eat at table
Mesa or I'm sure there's sometimes I can bike, yeah, and
downtown Bentonville, um, so youcan probably I mean you could
probably probably some sort ofway to bike to downtown
Bentonville from there anywaystoo.

(27:14):
So it's a really good locationin South Bella Vista, super good
.

Speaker 3 (27:20):
And so we're talking about the.
So it is something like, if youlisten to us on this podcast,
we're all about NWA, you know,and we think that's not to say
you can't not make money.
You definitely have to becareful and I think reading
these numbers and making sureyou're looking at the sub-market
data is super important,because you look at Rogers and

(27:41):
Rogers actually had, becausethere was so much building, it
had a softening in rents and anincrease in vacancy for a little
bit, but again, to the strengthof Northwest Arkansas, vacancy
rates in Rogers decreased to5.3%, but that's because they
were up at 6.9% in the firsthalf of 2024.

Speaker 2 (28:01):
Yeah, I think this is all just.
I mean, hopefully, to arm ourlisteners as investors to you
know, as they're looking toinvest in Northwest Arkansas,
what are the headwinds and whatare the tailwinds that they need
to be taking into consideration.
Here's another one just kind oflooking at these charts of
vacancy rates, I mean, if you'relooking around for if you're

(28:23):
wanting to be as safe aspossible, this is just something
I noticed personally.
But some of these cities thathave three bedrooms accounted
for in their vacancy rates,there's been years where you
oftentimes can see, you know, upto 20%, 15% vacancy or higher
in a three-bedroom in Rogers orin Fayetteville or in

(28:44):
Bentonville.
And so I think, just as you'relooking to make informed
decisions on real estate inNorthwest Arkansas, that might
be something that you consider.
If you're very risk-averse andyou want something that you know
for sure will have likely lowvacancy rates historically, then
that might be something thatyou take a look at as a
developer.

Speaker 3 (29:03):
That signals to me I'm probably not going to put a
lot of three bedrooms, if any,in my unit.
If I'm developing a newapartment complex, I would
probably go more towards a oneand two bedroom, just because
this area.
If you're buying three bedrooms, you're probably close to
buying a home, right?
Yeah, getting a three bedroomthat's, that's huge.

Speaker 1 (29:20):
I think one area where I want to highlight is
maybe some of these smallertowns on building permits and so
giving giving our listener.
Hey, like what are somepotential emerging markets
happening here?
And one of the first ones thatpops out of me is going to be
high fill.
I know that bigger pocketsactually had an episode on and
someone came on talking aboutHy-Phil and I had like five to

(29:40):
six people.
New people from BiggerPocketsreach out to me immediately and
they're like what's happening inHy-Phil?
I'm like nothing, like I'm not,like there's not a lot
happening out there, but thereis.
There's a lot of new buildinghappening.
I know DR is actively trying toacquire land out there.
They're finishing up asubdivision right now.
So Highfield had in the firsthalf 155 building permits and
128 in the second half, which isa lot for a town of that size.

(30:02):
As you look to like.
Probably a comparative town islike a little flock, like
size-wise, and they had onebuilding permit in the first
half of 2024 and three in thesecond half, and Lincoln had six
and then three, johnson hadeight and then two.
So, like you know, and then wehave like a lowell and a prairie
grove, lowell, had you know,221 building permits approved in

(30:25):
the second half of 2024.
Prairie grove had 120 in thesecond half of 2024.
If we look at man, springdalehad a lot of building permits in
the second half.
It's not a smaller town.

Speaker 3 (30:38):
Yeah, springdale the most, or second most, just over
Highfield and Highfield.
X&a is happening in Highfield.
$35 million investment intothat airport and we're actually
buying an apartment complex outthere towards Highfield, towards
the airport.
Shout out to Aviator, shout out, let me know if you're
interested in possibly investing.

(30:58):
But I think also the highwayexpansion that is going out
towards X&A is attributing tothat too.
There's only so much room forBentonville to grow and so
Highville is connected.
You can get to Bentonville, youcan get to Centerton, you can
get to Rogers.
It's all kind of cornered rightthere.
So I think right now there's alot of land, but it's uh.

(31:22):
I think the next seven yearsout towards high fail will be.
You'll be glad you invested.

Speaker 2 (31:27):
Yeah, agreed, and I think, piggybacking on uh, on
some of these stats on buildingpermits.
I think it's super important tostay close to guys like
ourselves that are reallyplugged into the local community
and understanding what's goingon in each of these cities.
There's some news that's notquite public yet that's
happening in Centerton and otherplaces that maybe will be

(31:51):
meaningful for you if you're adeveloper listening to this and
you're looking to buy some landand build.
Brandon says.
By meaningful to you, he meansif you're a developer listening
to this and you're looking to tobuy some land and build in uh
by some.

Speaker 1 (31:59):
Brandon says.

Speaker 2 (31:59):
By meaningful to you he means if you don't use us as
your realtor, we're gonna bepissed yeah, well, it's just, uh
, you know, there there arethings you know again, like we
talk about headwinds that arehappening in north of sargansaw
and infrastructure and, uh, youknow, sewage, and you name it.
Like there's headwinds thatwe're facing, that some cities
may get into some trouble, andso just to stay on the front end

(32:23):
of anything like this, ifyou're a developer, I think it's
important to stay close withguys like us.

Speaker 1 (32:27):
I 100% agree.
I think something to take away,listener, from what we're doing
is like it's not normal forrealtors to kind of go through
this and know this data and tobe able to point you in the
right direction, especially asinvestors and even people
looking to buy their dream home.
Or, you know, you don't want tobe putting your dream home in a
place that, like, I mean, Iguess it's your dream home, you

(32:47):
can put it wherever you want it,but like in a town that's
declining, and so we're able tohave the expert insight,
knowledge to go like hey, yeah,we know numbers, we know the
trends, we know the data, weknow things that are happening
that you don't know about, weknow off market properties and
so, going through this, there'slike 4,000 real estate agents
and I would say probably ahundred of us do know stuff like

(33:10):
this.
I mean I would say a hundred orless, maybe 150 if we're
pushing it.

Speaker 3 (33:15):
So it puts you guys at the top 50.
And it's investing livinglocation, location, location.
Any top investor will tell youthat, dr Horton will tell you
that, blackstone will tell youthat.
Anyone on the Shark Tank willtell you that Location is huge
and you don't have to be veryahead of the you know emerging

(33:38):
market or path of progress innorthwest arkansas.
Like, yeah, that would havebeen great if I bought a lot
right across the street from thenew bella vista, bella vista
plan development, but at thesame time that'll still help my
property.
You know, north bentonville,that might still, that might
even have effect over here in prich.
You know p rich might get sometrickle down effect.
You know, north bentonville,that might still, that might
even have effect over here in prich.
You know p rich might get sometrickle down effect.

(34:00):
You know these other markets,doing well helps each different
I think that's a good market.

Speaker 1 (34:05):
That's a really good point because I think what we're
seeing from all this is likeit's.
It's not like any of theseareas are declining, like all of
them are increasing in buildingpermits and the price for homes
going up everywhere.
There's not one market thatI've seen that like is going
down and so you could buysomething.
I mean a general statementwould be you could buy something

(34:27):
about darn near anywhere andyou're going to be affected
positively by the cities that ittouches.
It's not like springdale's justan outlier city and Benton
everything happening inBentonville just stays in
Bentonville.
The things that happen inBentonville affect Fayetteville
and the things that happen inFayetteville affect Bella Vista.
I'm like because you can driveback and forth, you can get from
very south Fayetteville tonorth Bentonville and probably I

(34:48):
mean, if you're driving with me, maybe 45 minutes, if you're
normal driving, maybe 55, solike it's not that big of a
drive.
So that's a great point.
Everything affects everything.

Speaker 3 (34:58):
If you guys are buying just a hypothetical.
If you guys are buying aninvestment property, what would
be your of this list that we'vegot pulled up?
What would be your top threethat you guys would invest in
right now?
As far as the and I think thatwould be different if I asked
you what would be your top threethat you would want to live in.

Speaker 1 (35:13):
Yeah, it is different .
For sure, I'd probably say I'mbuying something in Highfield,
especially if you're like along-term buying hole, I'm going
after Highfield.
I'm probably not going afterHuntsville yet I'd probably go
after Highfield.
I like the affordability inLowell.

(35:34):
I think it's like a verycentralized place that things
are still affordable, and so Ilike a Lowell, I like a Highfill
and I really like a, honestly,I think, decatur.
I think there's going to besome cool stuff happening in
Decatur.
It's not too far out.
I mean, I think we're seeingbuilding permits in Decatur 47
and then 32 in the second half,which is, I think, for that size

(35:57):
of town, a lot, and so I thinkwe're going to continue to find
some of these people that haveowned land forever like getting
their dream price anddevelopments happening there.

Speaker 2 (36:06):
Are we only talking about, like smaller outskirts?
I think for me, I mean I reallyI'm all about, like you know,
long term, what is data showingus that is going to be a solid
investment?
I don't, I'm not looking for,you know, home runs every or
grand slams every time.

(36:26):
I'm looking for solid over time.
I know this is going to begreat for me.
So I like I love the Springdalemarket.
I think it's always going to bedensely populated.
It's still pretty locallycentrally located, same thing as
Lowell, kind of in the middleof everything Getting north and
south.
It's affordable.

(36:47):
I think I still love Rogers aswell, even though vacancy rates
are climbing.
A lot of that is newconstruction, new development on
the west side over here byPinnacle.
But I think the east side verydensely populated.
I like that area over there alot.
I think there's a lot ofopportunity to invest in over

(37:08):
there.
And then I would even sprinklein Siloam as of right now, like
Siloam's got it's got sleeperpick.
Yeah, it's got Simmons Foods.
It's got a lot of newdevelopment of restaurants,
things to do Downtown's great.
They've got a cool downtown.
They really do Great downtown.
So I think there's and it'sstill very affordable, and so I
think the ability to buy anopportunity that has affordable

(37:30):
rents long term is going to be agood option.
You're still, you know, thedrive from Siloam to
Fayetteville is the same drivefrom Bentonville to Fayetteville
.
Basically, I mean 30 to 45minutes give or take.
So I think those are.
I just I look so heavily atthese vacancy rates over long
periods of time and I'm like,okay, I love the trends of how

(37:53):
low most of these have stayed.
Obviously, as new developmentcontinues to come online, you
know these things will change,but I think they're good
indicators for me that you knowthese are places that people
want to live and that there'snot a lot of inventory.
And if I'm buying affordablerents not necessarily luxury
apartments I think that's adifferent ballgame there.

(38:14):
But I think you're going to bekind of falling within what
you're seeing there.
Brian, what are you picking foryour top three?

Speaker 3 (38:19):
Yeah, and before I say my top, I would invest in
every single one of these submarkets.
People where I wouldn't investis Little Rock.
People send me deals in LittleRock all the time because we
work with a lot of nationalbrokers and they see Arkansas
and they associate that withLittle Rock.
So Little Rock to me is a quickpass.
Northwest Arkansas is really myonly target area in Arkansas,

(38:44):
in Fort Smith, we're having acouple of Fort Smith guys on the
podcast too.
I think there's opportunity inFort Smith outside of Northwest
Arkansas.
Northwest Arkansas I would putas an investment.
Number one would be Springdale.
Like just even if I was justpure data guy, I mean the
Springdale vacancy rate is justcrazy low, even with new rentals

(39:10):
.
There's so much cool thingshappening that Sprouse talked
about on one of our pastepisodes.
There's a lot of cooldevelopment at that is true path
of progress, I think.
Number two I would put Rogersand number three I would put
Bentonville.
Bentonville Now I I wouldn't beable to do anything close to

(39:32):
the square of Bentonville.
You know that that's somethingthat I couldn't get behind.
You know, maybe if I was a20-year investor, 10-year,
30-year, most of my investmentsaren't there yet.
So I mean, you're really justkind of banking there, but I
think there's so many differentparts of Bentonville that
haven't been touched yet andyou're still in Bentonville,

(39:55):
yeah, and Rogers, obviouslythere's a lot of cool things
happening, yeah, in the area,yeah, I like that a lot.

Speaker 2 (40:03):
Yeah, I think another just kind of going to a
different point here is goingback to those.
Let's see where were thebuilding permits.

Speaker 1 (40:12):
They're on the back page.

Speaker 2 (40:15):
Yeah, I got it right here, okay, okay, so just, uh,
and you may have mentioned thisalready, but the number of
building permits issued in northof arkansas in the second half
of 2024 increased to 3007,highest number since 2006, yep,
um which we all know whathappened around then.
So it just, I mean, I thinkit's something to consider is,
uh, obviously more people aremoving here than ever, but, at

(40:38):
the same time, one of thebiggest reasons that, outside of
poor lending practices, that2008 happened was our supply
exceeded demand immensely, andso we ended up in a really bad
situation.

Speaker 1 (40:51):
That's inverse.

Speaker 2 (40:52):
Now, yeah, it's inverse.
Now the foundation is solid.

Speaker 3 (40:56):
Exactly.
I think that's also why I likebeing a long-term investor too,
because if you're buying rightyou can ride out those markets.
Those kind of huge marketswings makes it tough for a
flipper or someone that wastrying to get in and out when a
lot of your business plan bankedon you getting that
appreciation in one or two years.
So I think definitely proceedwith like an air of caution.

(41:20):
You know you can't just buyanything and make money.
The NWA market helps a lot butit won't correct dumb decisions.

Speaker 2 (41:31):
Yeah, totally.
I think it's more importantthan ever to, if you're buying
in North of Arkansas, toprobably not be over leveraged,
right To be able to manage theright debt in this area and then
hold on for as long as you can.
I think that's if you can playthat game.
I mean, I think you can reallymake a mark in north of Arkansas

(41:51):
personally.
Obviously, there's a lot offactors to that, but I think
that's-.

Speaker 1 (41:56):
I think if someone's thinking about buying now and
they don't, they're going tolook back in five years and kick
themselves.
That's, in my opinion, themajority, like if you're getting
advised by any one of us.
If you're going to think aboutbuying right now, I would say
just do it, pull the trigger.
You have the ability on a lotof properties to you, fall on

(42:17):
your face and get back up andstill be okay.
As opposed to in other markets,it could be a little tighter.
I think you have such a highceiling with this market that it
allows you to stumble andbumble a little bit and you're
still end up being okay, whichis just kind of the grace of the
area.
As opposed to like a marketthat's more tapped out in, like
an Austin or a Dallas, like yougo in there and you make the

(42:37):
wrong decision, like you'regoing to hit your face and then
the area is going to hold you inthe dirt for a while.

Speaker 3 (42:43):
So episode 39, we talked about what our dream deal
is, and that was almost goinginto the topic you're getting
ready to go into as far as yourinvesting philosophy.
So I think that's a great one.
Episode 39, where we talk aboutthe different investments,
whether we're buying and holdingfor a while, whether that's
multifamily, whether that'scommercial, whether we're fixing

(43:04):
and flipping so definitely tunein there to get a deep dive of
yeah, I think we could do thatepisode again too and just talk
through kind of strategies.
It evolves.
In the beginning, when I wasstarting, I was getting the
seller to carry a note, the bankto carry a note, trying to get
credit for it.
So I was leveraged to the teethin the beginning and for me I

(43:25):
was like how can I get as muchequity out of this deal and then
go put it in the next one andkeep growing that?
So I think as you get olderthough, it does change a little
bit to your investing hold timeper asset, I would say, and your
leverage comfortable.

Speaker 2 (43:43):
And that's what you love about real estate too, is
there's so many differentavenues that you can take and
there's so many different waysthat you can do it.
You could be a guy that justfinds there's a lot of guys out
there looking for value addmultifamily.
And you could be a guy that'sgot a.
Maybe you got plenty of moneyand you're just looking to put
it into a stable asset andyou're buying the deals from

(44:04):
these value add guys thatthey've already done the work to
to renovate, they've alreadydone the work to increase rents,
and you can just, you know, go,go, put, you know, not over
leverage and put a 30 down or orwhatever, and just hold long
term.
And and I think, uh, you know,there's just so many ways to
look at it and uh, it, you know,in different people like you

(44:25):
you did the way you started wasthe same way.
My dad started just trying tobuy anything he could, and you
know he didn't have any money atthe time and so he was like
trying to do seller financedeals and he's got so many
stories of of how he could have.
Uh, you know, there's thispackage deal of 20 duplexes in
Johnson.
You know he was buying them forlike 50 a unit, when you know

(44:46):
now it's like 150 a unit.
And the seller, he was going toseller finance the whole note.
But he was just asking my dad,hey, can you just put like 10
grand down or something, I can'tremember the number.
But he was like no, I mean Idon't have it.
And he didn't go ask anybodyfor it and so he didn't end up
getting the deal.
But I think that's just thelike.
There's just so many ways to doit and it's funny to kind of

(45:10):
look at.
You know how you can kind ofbuild that.
He ended up building that intothe commercial portfolio that he
has and you've ended upbuilding it up into a commercial
multifamily portfolio that youhave, and so just different ways
to do it, I think an overallpicture to that is just
consistently making correctinvestments over a period of
time.

Speaker 1 (45:29):
I mean if you just say mentally, like I want to do
one correct investment a yearand you're just going to look up
in 15 years and have 15 correctinvestments, right, I think
it's just kind of like the stockmarket, kind of like a bank I
just keep socking away, keepsocking away.
You don't have to conquer theworld in a year, you can just
consistently.
It's just like working out.
You're not going to go in andtear your body apart in one

(45:50):
workout and come out lookinglike all of us.
I mean come on.
But like, I think if you treatit like working out and you
consistently go, I mean you'reworking out your bank account
and where you're investing in,you're buying the residential,
you're buying the commercial andthen maybe the next year you go
, okay, let's see if we can buyanother residential.

(46:11):
You're just going to look upand be really happy where you're
at, especially in this area.

Speaker 3 (46:15):
Time in the market, not time in the market.
You're not trying to time themarket, you want to be strategic
about the time, but your timein the market is going to be the
most important.
And I think you were kind oftalking about the money ball
approach just getting on base.
We're not swinging, you'reswinging for a home run.
If you're swinging for a homerun you're going to get a lot
more strikeouts versus justhitting base hits.

(46:38):
And I think with NorthwestArkansas there's a lot of
different investment strategieswhere you can diversify, whether
that's diversifying andSpringdale you know I'm buying
multifamily and Springdale,rogers and Fayetteville or I'm
in Rogers but within Rogers I'mdiversifying and multifamily,
single family commercialwarehouse, you know.

Speaker 2 (46:59):
So there's there's a couple of different ways to
diversify yourself and inNorthwest Arkansas as a whole,
yeah, yeah, and I think too, Imean there there's people that
uh, I mean just talking on thethe different, you know, real
estate investors out there, butthere's folks that want to be a
you know they call a small andmighty investor on bigger
pockets or whatever, and thenand that kind of fits their

(47:21):
lifestyle and what they want todo and how they want to have
income long-term.
And then you know there's guyslike us or like Brian that's,
you know, wanting to do you, youknow wanting to take it to
different heights and and, uh,you know, and see the value in
scaling and stuff like that.
And so there there's just it'scool and and scaling and stuff
like that, and so there's justit's cool.

(47:42):
And I think, you know, I think,hopefully, the hope from this
is that you all can take thisdata and make great decisions.

Speaker 1 (47:47):
Well, there's an option for you, as a listener,
to talk to Brandon or I and havethe more active approach in
something like this and go hey,let's find the correct home,
let's find the correct market,let's find the correct
multifamily.
And let's find the correctmarket, let's find the correct
multifamily and let's get afterit.
And then there's an approach,like Brian represents, where you
can go hey, I want to invest inmore, so like a fund, like a
syndication, and hey, brian, Itrust you, I trust finding these

(48:10):
deals when the next one comesup, I got $50, $100, $200
million, I'm ready to invest inthis thing.
And so there's active andpassive sitting here right at
the table, great resources forboth, which I think is really
cool to have.
Is you're the listener, maybejust having a conversation with
one of us and going, like us,helping you decide what's the
best for you in your lifestyle?
Because, yeah, we're good withnumbers, but, like I would like

(48:33):
to say at least myself and Iknow you guys as well like I'm
good at taking somebody's likewhere they are in their life.
You know, do, do you have five,six kids and you bear it.
You're working 40 hours a week?
Hey, probably buying fiveresidential homes doesn't sound
the best.
You probably need to talk toBrian or someone who's like hey,
I got, I got a kid on the way.
You know, I work probably 30hours a week or even 40 if they

(48:53):
have high capacity, and let's,let's talk to Brandon or I,
let's find something where wecan get own home here or
something like that.
So good resources here.

Speaker 3 (49:03):
Yeah, go ahead.
Yeah, I think, designing yourlifestyle.
It can be overwhelming for alot of real estate investors,
like figuring out what thatexact lifestyle looks like,
whether they're trying tosupplement their income or
whether they're trying toreplace their income, act action
being the more I'm replacing myincome versus passive I'm
supplementing my income.
So I think just, it reallydepends on the individual

(49:27):
investor and there's somein-betweens too.
Maybe you partner up withsomeone that has the experience
and you kind of learn from them,while you're more of an
investor role in it, but you'relearning their processes and how
they do it.
Yeah, if you partner with theright person.

Speaker 2 (49:44):
Yeah, and Brian, you're an example too, of a
little bit of both of that aswell, right?
I mean, I think you have aportfolio of your own right, and
then you have the kind ofelevate wagers, capital
syndication stuff.

Speaker 3 (49:58):
Yeah, 100%.
Yeah, and that's how Idiversify personally, how I you.
Syndication stuff yeah, 100,yeah, and that's how I diversify
personally, how I, you know thelarger syndications as a more
passive approach, more long term, like that's my ultimate goal
to be more of a passive kind ofadvisor to, you know,
multi-family investments, butalso the joint ventures where
we're part, you know, partneringup with two investors that are
putting 500k each and we're, youknow, took down like 50 unit

(50:21):
apartment complex where they'rejust kind of what I talked about
.
They're investing in it kind ofon the sidelines, kind of
keeping pace with it, but nottalking to the property manager,
not setting up the insuranceand all that.
So I think there's a lot ofdifferent ways to do it,
especially in Northwest Arkansas, what we're talking about, and
a lot of these sub markets havea lot of opportunity and some of

(50:42):
the sub markets that aren'tFayetteville, bentonville,
rogers, springdale- you know.
So I think you don't have topick one.
You don't just have to pick ahunt.
I'm only investing inHuntsville.
You know you're going topigeonhole yourself too much
there, but it's okay to have atarget and the best thing to do
is talk to someone.

Speaker 1 (51:02):
That's in a top 50 list of somewhere.
Yeah, well, uh, I want to getyou guys thought on this because
I was thinking the other day doyou think that?
Because downtown huntsville, Ithink, is pretty cool?
And I was at a really small,small town the other day in
illinois.
It was called thora, illinoisuh, there's no one that's going
to be listening to this is fromthere but it had.

(51:23):
They just got a brewery in thedowntown little square and that
I talked to everyone there andthey're like this thing, like is
lit up every single day.
Like do you think a brewery inHunt, like downtown Huntsville,
would work?
Because they catch the peoplefrom like that way and some
people like it kind of catchyour real population, like do
you think that would work?

(51:44):
I'm not going to do it, butlike I have thought about it.

Speaker 3 (51:47):
Maybe?
Yeah, that's such a good pointtoo.
There's so much businessopportunity here too, like for
like local business owners, thatthere's a lot of parallels to
this real.
We're obviously all real estateinvestors, but there's a lot of
business owners and a lot ofsome of them are sponsors on the
show.
You know, shout out to thesponsors that are making these
shows happen.
But there's a ton ofopportunity in the small to

(52:08):
medium sized business world hereto service this real estate
industry, to service the peoplethat are working in the real
estate industry, that are livingin it.

Speaker 2 (52:17):
Yeah, there's unlimited opportunity.
I always think about barbecueand how.
You know how established northcoast arkansas was and then
rights barbecue comes in.
You know I I can't remember, Ithink they're in 2016 is when
they started, um, and you knowthey came in and you already
have your anchors of at thattime was sassy's, and you know

(52:39):
I'm in penguin as I'm trying tothink of other like barbecue
spots that were staples, butthey came in and just did it
better than everyone else andand created this monster, and I
truly believe in northwestarkansas.

Speaker 3 (52:52):
Any business, you can come in and do something like
that yeah, the restaurantindustry scares me a little bit
just because of like how ficklepeople are, like emotional
people are, like change, changeyour mind and then also like new
rest.
Just a statistic of.
I'd be interested to see thestatistic of restaurant success
in northwest arkansas comparedto the nation, because I know
nationwide it's 50 50, like youhave a 50 50 shot whether you're

(53:15):
going to be open in a coupleyears or not.

Speaker 1 (53:17):
That's crazy yeah I think I think that crazy and I
think what this area speaks tois, um, you know, I'm helping,
uh, uh, and, and I'm serving ina capacity to help start a
church here locally, and one ofthe pastors the pastor of the
church, um, shout out overflowchurch.
It'll be in Fayetteville, uh,starting in September.

(53:37):
Uh, but he said, you know,something he thought about
coming into this area was does aplace like this that already
has so many churches needanother church and ultimately,
like a growing place needs agrowing more churches and more
places to eat and more places toget your clothes dry cleaned,

(53:58):
and so a growing area is notjust going to have the same
people for the next 20 years,since, like, there's going to be
new people that come in and soI think there's room, and as we
have 37 different people, 37different people that aren't the
people here coming a day, so itwas going to be neat for new
things, new, uh, we're going tosee things.
I mean it's not I'd say I likehow we're like a small town feel

(54:21):
still, like I really do, but Ithink maybe in the next 10 years
it starts maybe turning awaytowards that.
I mean I think you'll have yourOG people that like, oh
remember when you could see thebuilding from over here, and now
it's gone.

Speaker 3 (54:39):
But that's such a mindset, like back to the
mindset thing.
You know we're talking a ton ofnumbers here, but you guys
could have been like, oh,there's a church on this block,
there's a church on this block,there's too many churches we're
not going to go in.
There's a lot of cranes goingaround, but maybe I shouldn't
really look at development.
There's a lot of people buyingthese real estate investments.
It's like I'm not going to divein deeper.

Speaker 1 (54:59):
Well, what we've seen and we're holding interest
parties at coffee shops, and sowhat we're seeing is there's a
huge demand and we're I mean wehave professional companies
helping us with like, hey, youwant to plan a church?
These are the steps you do.
Here's our 98% success ratefrom over like 3,000 churches or
whatever, and we're exceedinglike the numbers by a big shot.

(55:23):
Like people, there's a need inthe community for different
types of things, not justtalking on the church aspect.
Like there are needs incommunities for new things, for
better things, for not to say, Imean, I love the churches in
North of Sargent so I thinkthey're great, but maybe meeting
a different need.
Different companies, differentchurches, different event
centers, different food placescan meet different needs for

(55:45):
different people, especially ina really growing market and I
think that's something you cansee from the data that we just
went over is like we're agrowing market with new people
coming in, and so there's goingto be new needs in a growing
market.
And so come here with yourbusiness ideas.
We love small, this area lovessmall business.
I think we've shown that.
Bring your trends and topicsand software and all that, and

(56:07):
we welcome it with open arms inthis area.

Speaker 3 (56:09):
The church is in Fayetteville.
Yeah, the church is going to bein Fayetteville.
Does that mean you're going tolive One of these episodes?
You were talking about movingfrom Fayetteville to.

Speaker 1 (56:17):
Rogers?
Yeah, so I'm going to live.
I talking about moving fromFayetteville.
Yeah, so I'm going to live.
I'm building a home in Rogers,but that is strictly a financial
play.
It's not like I'm going to.
I'm going to live there for twoor three years and then sell it
, and then so I'll.
I'll be driving from, like,downtown Rogers to Fayetteville
for church on Sundays, which isfine, but the church is going to
be in Fayetteville.
We don't know where yet.
We're looking for commercialspace at the moment, but it's

(56:40):
going to be called OverflowChurch and it'll be starting in
September.
So right now we're holdinginterest meetings, things like
that, just trying to meet theneeds of the community and help
people overflow with love, joyand peace.

Speaker 3 (56:53):
Love it.
Yes, that's interesting becausea lot of people and we talked
about it on past episodes butsplit households They'll live at
, someone lives or someone.
One of the household works inFayetteville, the other works in
Bentonville, you know, on twoopposite sides so it's still
very commutable.
You know that's not going tostop.
You're having this.
You know church in Fayettevilleis not going to stop.

(57:13):
Oh, from living in Rogers.

Speaker 1 (57:15):
We'll come.
We'll wake up at you knowprobably 8 o'clock on a Sunday.
We'll come down, get to churchby 8.30 or whatever service we
go to.
After we'll go eat at a Mexicanspot in Fayetteville and then
walk around like Fayettevilleand then come up to the house
Like it's not a hard thing to do.
We already have a few peoplethat have signed up that are
like in different cities across.

(57:37):
So I think it just speaks to onmacro scale, like people are
willing to drive places forwhatever, but eventually I see
myself back in Fayetteville butgot to build this home and get
this equity grab.
Have to Thank you guys fortuning in.
We appreciate you.
We thank you for all of thesupport we've gotten and we

(57:59):
thank you to our sponsors formaking this stuff happen.
Appreciate you guys and we'llsee you on the next episode.
Love you guys.

Speaker 2 (58:05):
See ya.

Speaker 1 (58:06):
If you enjoyed the show, make sure to give us a
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update.

Speaker 3 (58:11):
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Speaker 2 (58:17):
Have a question you want us to cover, send it our
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Thanks for listening and we'llsee you next time.