JWB Real Estate Companies has become THE major player in the Jacksonville, Florida real estate market's single-family investment and property management space.
In 16 short years, JWB has grown from a little-known house flipper to a vertically-integrated behemoth with over $750 Million of real estate assets under its management.
In this episode of the Not Your Average Investor Show, JWB CEO, Adam Eiseman, shares his perspective on the company's journey and where he sees JWB going in 2022 and beyond.
We discussed the following hot topics related to the current real estate market outlook:
- JWB's historic production rate in 2021 and the market dynamics that allowed for such growth
- Lessons learned over the past few years and how JWB has adapted
- JWB's 2022 business plan includes the goals for the number of purchases, sales, new builds, renovations, and properties under management
Adam allows us to peel back the curtain of a $150 million real estate investment company so you can make the best decisions with your rental property portfolio.
Why Is There A High Demand For Houses For Rent In Jacksonville, FL?
If you ask any real estate agent in Florida, they will tell you the demand for housing is crazy! Many people are moving from all over the country to the Jacksonville area. As a result, we see home sale prices increase, higher rent in Jacksonville, a booming real estate market, exponential economic growth, and a seller's market for those who want to cash in on the high demand when selling their home. The number of homes on the market is lower than buyer demand, so JWB expects home price growth to remain strong.
As home prices continue to rise, the need for rental properties increases because not all Jacksonville residents have the means or desire to own homes. We see housing market predictions of higher mortgage interest rates. Higher prices and a smaller number of homes indicate that fewer first-time buyers will be entering the market. However, they still need a place to live, so there is a high demand for houses for rent in Jacksonville, Florida.
What Happened For JWB During 2021?
Adam Eiseman reported that 11 out of 13 departments within the company had a record-breaking year! Wow! Every year has been good, but the previous year was off the charts.
What does a record year look like in the numbers? Adam is talking about production in construction. We did a little less; the only two areas were Finish New Construction Homes and Finish Renovation Homes. But we expect those two to catch up in 2022.
The buy-side and sales-side did fantastic in 2021. There were backlogs of building permits that finally opened up in the Spring of 2021, supply chain issues, and higher prices to build new homes. But JWB did an enormous amount of work for the acquisitions side, the serving of our tenants, and so forth. We not only blew out our goals, but we also sold 531 homes, which is more than we had in any previous year of our 15 years in business.
A few things changed, and the demand for turnkey rental properties exploded. Investors took radical action in 2021, and our new client base was massive. At the beginning of 2021, we didn't expect this demand to be as high, so our team ramped up all efforts to acquire more properties to sell to eager buyers.
What Did The Media Say About The Real Estate Market Outlook?
Many news channels jumped into the discussion about how 2021 was an excellent year to invest in turnkey rental properties and residential real estate while interest rates were still low. As a result, many people migrated to Florida from other states, and a buying frenzy ensued.
We have an acquisition team of three people, and they did an insane amount of work buying 992 homes! They worked quickly and well together, and they cast a wide net to acquire as many homes for rent in Jacksonville, Florida, as possible for our investors. What a success!
The houses for rent in the Jacksonville region remain in high demand due to the housing shortage. There are plenty of people who want to buy a home but cannot do so. As a result, they rent many properties from JWB.
Who Can Invest With JWB?
Anyone who has the down payment for a JWB property and qualifies for a loan can invest with JWB. Our Not Your Average Investors community is made up of regular people – like you and me – who want to build passive cash flow income and find financial freedom.
Our community of investors continues to grow. We have clients who are in their twenties and a few who are in their nineties. If you desire to invest in a renovated property or a new construction single-family home, we invite you to chat with the JWB team about your financial goals.
When you invest in a new construction home, you lock in a price, so you have few surprises as an investor. We anticipate the interest rates will increase soon, and we also see rents rising along with the growing demand. There are wins in all avenues, and JWB is enormously data-driven as they monitor the houses for rent in Jacksonville, FL.
What Is The Secret To JWB's Success?
In the sixteen years that JWB has been in business, we see growth within a full market cycle. The supply has not yet caught up to the demand and need for homes. Our property management team has performed very well because we've gone through the experience of growth, appreciation, and break-even cash flow. We want to grow and be better tomorrow than we were yesterday.
Every year, we pick a theme. For 2022, our theme is “Lead With Service.” We reflect on how we began 16 years ago, and service helped us grow. So we want to continue being servant leaders and helping our community grow, thrive, and be highly pleased about working with the JWB team.
How Many Referrals Generate Sales For JWB?
We are delighted that our Not Your Average Investor Show community spreads the word about their experiences with JWB so enthusiastically with their friends and family. We see a 58% increase from repeat and referral sales. We thank our clients for having the opportunity to serve and perform for you.
If you refer a new client to JWB and have a real estate license, we are happy to offer a referral fee.
What Is The Status With Acquisitions In 2022?
We expect to meet the numbers above. We have a lot of work ahead of us to meet these goals, but we feel good about it. Last year, we acquired many open lots and existing homes. This year, we'll continue to build new homes on the land we acquired.
JWB continues to seek land purchase opportunities, but we are now focusing on the land we've already bought and plan to complete development this year. That is why the number of acquisitions in 2022 is lower than last year. For now, we have plenty of land to develop to meet the need of our investors.
As you can see, our new construction builds for 2022 are expected to be much higher because we are currently developing the land we acquired in 2021. We intend to finish 600 new properties by December. We are set up for more success in 2022, for sure.
To add, every aspect of our New Construction department is set up for success and closing up gaps within our housing supply pipeline. If 2021 was a record-setting year, we expect 2022 to be similar.
What Are The Leasing Goals For 2022?
Because we are building new homes and renovating the homes we purchased in 2021, we expect to lease more properties this year. We believe in taking care of our JWB clients, and we know that keeping our leasing numbers up will benefit our entire community.
The health of our leasing business is really exciting. For the speed at which we get people renting these homes, and the quality of the tenants remains high, our investors get great returns on their investments. As property managers, we keep a close eye on filling any properties that need tenants within our goal of 40 days market-to-move.
When you look at our Property Management goals, we expect to see continued growth. Our property management team gets a lot of credit for building relationships with the residents and signing them up for long-term leases. Our team wants to perform well for everyone involved, and we're very proud of their efforts.
Looking at our Property Management Business scope, we expect to see more front doors under our management in 2022.
We want to lead with service, and by doing so, the number of houses for rent in Jacksonville, Florida, that we manage will grow. The real estate outlook in 2022 is exciting here at JWB!
Does JWB Plan To Grow Their Team In 2022?
Yes! We currently have 12 open positions, and we expect more growth.
and maintain those properties. A lot of these higher numbers are new roles we need to fill. We are seeking high-quality talent because we deliver high-quality service.
How Do I Find Out More About Investing In Turnkey Rentals With JWB?
If you want to invest in Jacksonville real estate, you are in the right place. Go to www.ChatWithJWB.com and find out how we can help you reach your financial goals through turnkey single-family rental homes. Contact the JWB team to begin the discussion.
If you want to become part of the JWB online community, join us in the JWB Facebook Group at https://www.facebook.com/CashFlowProperties.
You can also go to www.JWBInventory.com to see what properties are currently available. We encourage you to contact the JWB team for a consultation to determine how our turnkey rental properties can deliver positive passive cash flow.
Adam Eiseman and the entire JWB Real Estate Companies team are confident that the real estate market outlook will remain strong. Jacksonville rentals continue to be an excellent return for anyone interested in real estate investments. Join us every Tuesday for our Not Your Average Investor Show and our Property Of The Week Show every Thursday.
When you join our community of Not Your Average Investors and learn from these weekly shows, you will see why investors who purchase houses for rent in Jacksonville, Florida, are happy to work with us. The Jacksonville real estate market continues to attract investors seeking financial freedom, and JWB is pleased to serve our growing community.
To Your Success,