Building a quality business is typically like building a quality home-construction begins from the foundation up. However, Paran Homes has found remarkable success from taking an alternative approach. By taking risks in a distressed economy Paran started acquiring as much land as their resources allowed. The company then constructed a building business consisting of a tenacious team of professionals.
In 2010, a solid partnership was formed between Georgia Capital, a private equity company owned by the Marshall Family, and David “Butter” Smith, a former Crown Communities builder who oversaw the construction of over 800 homes each year. Together, they took advantage of the economic recession that left an abundance of vacant-developed home-sites listed at considerably low prices. While many builders had ceased production and cut costs, Paran was able to capitalize on the market and in many cases purchase home sites for as little as 10 percent of previous market value.
“The most important thing about the building business is building quality homes at an affordable price,” partner Whit Marshall says. After selling out of the initial 21 lots at the beginning of 2011 at a rapid pace, this concept formed the foundation of Paran’s success. “At that point we realized there was a tremendous opportunity,” Marshall adds.
While actively acquiring undervalued home sites, Paran found its niche in the Atlanta market. As they built homes and completed once distressed neighborhood developments, Paran was rewarded for its investment by seeing those pre-2008 property values begin to reset. “We feel we are very well-positioned for growth,” Marshall says. “We have a solid foothold in the markets we are building in.” Since closing out their initial community in 2011, Paran has constructed more than 550 homes and has expanded into the Nashville and Chattanooga, Tenn., and Raleigh, N.C., markets.
Housing prices are creeping back up, and the economic recovery that has been good for the country as a whole has, at the same time, made it more challenging to find undervalued properties. “There are only a few lot deals left that were developed pre-recession,” Marshall says.
With decreased opportunities for vacant-developed lots, Paran has successfully shifted its focus to rely more heavily on diligently selecting each employee to form the strongest possible team. “It’s a small world in the building business,” Smith explains. Marshall and Smith have leveraged their relationships that they have built through their careers to find employees and partners that they can rely on.
“Just as important as [buying lots] is finding quality people we can work with either as employees of the company or as trade partners,” Marshall says. Paran aims to hire team members who have strong experience. “You have to have the right people in the key positions in order to build a strong team,” Marshall adds.
Everyone from construction, to sales and marketing and operations plays a critical role in ensuring that the hammer keeps on nailing. “When responsible for the most expensive investment some people will make, we know communication is the number one ingredient for buyers to have a successful buying experience,” Smith says.
Paran’s approach has ultimately been able to pass significant savings on to the consumer. Each Paran Home is constructed with its detailed Platinum Trim Package, which rivals that of most half-million dollar homes. From artistic coffered ceilings to designer shadowbox chair rails and two-piece crown molding, it is this crowning achievement that leaves the home with a sophisticated feel.
Buyers also relish in their spacious master bedrooms, open floorplans, and gourmet kitchens with built in appliances, granite counter tops, beautiful tile backsplash, and contemporary oil-rubbed bronze fixtures.
Paran is so confident in the quality of construction that the company offers the exclusive 2-10 Home Buyers Warranty to protect the structural integrity and systems of each home. Becoming a 2-10 home buyer warranty member is an extensive process, and Paran must maintain high-quality standards in order to offer this insurance-backed warranty. “Being a part of the strongest National Home Buyers Warranty Program instills our buyers that we value the quality of our homes and want to pass this directly to them,” Marshall says proudly.
Set for the Future
Paran expects to sell more than 300 homes in 2015 and plans for continued growth in the coming years. Although the market is more competitive and the number of discounted homes sites has dwindled, the company has already secured a strong market position throughout the Southeast.
This will allow Paran to remain an active and competitive builder as the company explores more land acquisitions and adjusts to the changing market.
“We’re well positioned for substantial growth as the housing market continues to recover,” Marshall says.
Paran’s early recognition for opportunity in a recession, commitment to quality, and the continuous development of a strong management team, all sum up to a very promising future for the Georgia-based builder. Paran Homes is truly “Where Quality Lives.”