FEATURED ARTICLE: Rooted in Service
Tesch also attributes the com- pany’s growth to his experienced team. RCN Capital was methodical in the additions it made to its team thanks to a piece of valuable advice Tesch received early on. “My mentor said, ‘When you’re making your new hires, make sure they are smarter than you are,’” Tesch said. “If you hire right and you make them part of your team, they will elevate your company and they will make everybody look bet- ter. Never fall into the trap of hiring people that aren't on your level because you're afraid it would be something more than you. That was the best piece of advice I ever got, and we continue to do that today.” he’s excited to be rolling out more avenues for customers to connect with the company. While he will always love human interactions with customers, Tesch said RCN is now working to build out a system in which a customer could conduct an entire transaction online. “We're going to continue to develop that portal as more folks are wanting to interact through an electronic means,” he said. “We’ll always be a consumer-friendly, pick-up-the-phone-and-speak-to- us company. But we've really gotten serious over the past two years about being able to interact with a consumer so that they hardly need to speak to us if they don't want to.” When looking at broader trends in real estate, Tesch said that he’s often asked when the United States will encounter its next recession. In general, Tesch said he believes that the single-family housing market in the United States is dramatically underbuilt at the moment. While some markets are exceptions, Tesch said that most are underbuilt, which has caused a steep rise in the aver- age transaction price over the last WATCHING THE MARKET For RCN Capital, Tesch said
five years and the continued reha- bilitation of existing properties. “I don’t see a slowdown of any sort in the demand for single-fam- ily housing for at least the next 24 months,” he said. “Rental housing also continues to be in demand, and a lot of that is driven by folks wanting to live closer to urban cen- ters and not live such far distances from their workplaces. We expect that, without any major event like an
the rehab, make sure to be as spe- cific and deliberate with the repair list as possible," Tesch said. “The reason you want all these details is that when an appraiser goes to look at what your compa- rables are in the neighborhood, you will have a much better idea of whether or not you are on point for improvements, whether you're under-improving it or over-improving it for your specific geo- graphic area,” he said. “That's su- per important because you never want to be the most expensive house on the street.” Tesch is a firm believer that his custom- ers’ growth and development will fuel RCN Capital’s future. It’s why he takes great pride in coaching customers and pairing them up with an account executive that will be with them throughout the business relationship to ad- dress questions, concerns or ideas. Tesch acknowledges there’s a lot of noise and competition in the lending space, but rarely are there lenders that ensure customers have all the tools possible for success with the projects they’re undertak- ing. That’s ultimately what puts RCN Capital ahead of competitors. “At the end of the day, how RCN wins time and again is that level of service,” he said. “To me, that’s really how things should be.” •
international cri- sis or oil hitting $200 a barrel, that business will continue to grow on a very brisk pace.” Regardless, Tesch knows that the market can’t continue at
its breakneck pace forever. When that eventually occurs, Tesch is comforted in knowing that his firm’s foundations are solid. “I believe that if you build a com- pany with really sound values and roots that it will have the ability to weather any storm,” he said. “That's how we set RCN Capital up for long-term success. … The roots run deep here, and no matter where the economic volatility takes us, we're going to move forward to be a substantial and profitable force moving forward.” Asked what advice he might offer real estate investors, Tesch said that due diligence is imperative. RCN Capital is keen to coach its customers with their specific deals as to maximize their success, he said, including on how to approach a rehab project. "Make sure to get a licensed appraiser to value the property to get an opinion on what the price is today. Then, when you’re filling out your pro forma or scope of work for
Bobby Burch is the Founder of Bobby Burch Creative, a small business storytelling studio. Learn more at bobbyburchphotography. com and contact him at
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10 think realty housing news report
october 2019 11
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