Check with Jay Ryder, President of Ryder Homes, and he’ll tell you that the housing market today is probably the toughest in history—certainly tougher than any of us ever imagined it could be.

     “Like many other builders, Ryder Homes has had to think outside the box as it adjusts to the ‘new reality,’” stated Ryder.  “We’re looking at new ways of doing business, and we’re open to new ideas about getting our homes built.”  It’s apparent that Ryder knows what he’s talking about, because they are one of the few builders who are preparing to open a new community in Reno—Breckenridge—with 108 homes priced from the low to mid-$200’s. 
   When financing a project of this size is deemed to be close to impossible these days, how was Ryder able to put all of the pieces together?  Creativity and foresight played a large role in Ryder’s ability to do so.  The Breckenridge community was conceived two to three years ago when Ryder began looking at property that was previously owned by Meritage Homes in northwest Reno.  The lots, nearly finished when the economy soured, ended up going back to the lender. 
   Ryder opened negotiations with the lender in hopes of building on the property.  The lender, in turn, held out for over a year, hoping that economic conditions would improve.  During that time, values plummeted, which actually worked in Ryder’s favor.  The lots, financed using pension funds, were in essence now owned by the pension fund, which needed a return on their investment.   
   The answer, borne of necessity, was that Ryder became a “Contract Builder”, meaning that they manage the sales and the construction of the homes, and are paid a negotiated fee for doing so.  Ryder is still a full service builder, choosing the subcontractors, the flooplans, and the product mix for the property.  The lender provides the insurance and the financing.
   “Builders today are having to look for non-traditional means of financing in order to stay alive these next few years,” points out Ryder.  “There is very little bank financing available, and while private lenders are out there, it’s expensive and just as difficult to obtain.”
Ryder Homes—Tomorrow
   Jay Ryder reports that Ryder Homes will be using the Contract Builder arrangement on other northern Nevada properties, including a project in Sparks that should open later this summer.  In addition to building on some available lots in Somersett for a bank, Ryder is positioning themselves for the future with additional purchases of a distressed asset in Spanish Springs. 
   “We’re currently looking at nearly every available lot, but there’s a great deal of competition out there,” said Ryder.  “Not only are private builders looking at what’s available, so are investors.”  Nevada remains a very attractive market for builders who are planning for the future.  As California continues to promulgate excessive fees, affordability is proportionally impacted, resulting in more builders looking for land in northern Nevada.  “The future of homebuilding in California isn’t clear.  It makes more sense to build in Nevada,” stated Ryder.
   One factor that will allow Ryder to be able to build affordably in this challenging market is that they have been able to maintain a loyal base of subcontractors.  Ryder Homes’ philosophy of paying subs and suppliers on time and treating them fairly has paid off.  They maintained an appropriate building schedule, even during the boom years, and didn’t try to beat their subs down on pricing.  “We know our subs and they respect us,” he points out.  “That’s a two-way street though—we know their value as well.”