From making a living to building a legacy: Highspire Q&A.
September 24, 2024
Contractors have the skills necessary to build, reconstruct and renovate – but may not have the skills to invest and fund a multi-million dollar project. As experts in adding value to properties, they are uniquely positioned to leverage real-estate investments into profits. However, acquiring and owning projects is not a core function for most renovation and custom builders.
Highspire is a coaching company that helps construction business owners learn what they need to enter the real estate development market. It has introduced a course of learning seminars. Uniquely, it also offers the possibility of private equity investment to support its users’ qualifying projects.
The business model is interesting enough that we spoke to Highspire CEO and co-founder, Paul Atherton, about his operation. Atherton is a professional engineer with extensive experience advising companies across the construction industry.
How does Highspire work?
The goal of all entrepreneurs is to generate tremendous wealth. Over the years, I’ve found three disciplines which build generational wealth. One, is operating a business based on a skill you’re good at. Two, is learning how to buy and sell assets in a smart way to grow your money. Lastly, what to do with those assets when you own them, so they increase in value relative to the rest of the marketplace. Throughout most of the business landscape, people are typically only doing one of those three. So that’s where Highspire comes in. We’re teaching construction companies to find good projects, and if those projects meet our investment criteria, we’ll come in as private equity.
What does that mean for the business?
Highspire will not own the project. We come in as private equity and through our coaching arm, we’ll coach those companies to run the projects the way that we want so that we have a higher likelihood of getting the returns. The coaching program is climbing because a lot of construction companies want the knowledge on how to develop real estate.
What does the training program entail?
Everything we do is online. We host a series of group and one-on-one meetings that our clients will have with a coach who’s very experienced in the construction and real estate industry. There are in-person events and workshops as well. It is a great networking opportunity as well.
What kind of consulting does Highspire offer its clients?
We are all about being effective – and entering the project at a price point that increases your likelihood of success. There’s a science to that, which experienced developers have cultivated through a lot of trial and error. There is a misconception that if you put an offer down and get land you’re all set but, unfortunately, that’s not the case. We provide guidance on what is a smart investment for your business. A lot of companies underestimate how much work investing is and the interest rates end up turning against them. There are also other things to consider like your lawyer, your accounting team, the engineers you work with or the subcontractors you bring on, property management and much more. It’s critical who you bring in as your team and how they can effectively navigate projects. A lot of the time, business owners end up paying too much for lacklustre work. There is a lot of money to save through good advice and billable hours.
