You know that moment when you're staring at a project and wondering if you're about to make a fortune or lose your shirt? Brian Coffman, Director of Homebuilder Finance at Sound Capital, has been on both sides of that conversation thousands of times, and he's got some real talk for builders ready to scale up.

Michael Krisa sits down with Brian to tackle a question that keeps a lot of builders up at night: what separates those who successfully jump from 10 houses to 50 houses from those who flame out trying? 

Turns out, it's not about having the best crew or knowing the slickest subcontractors in town. It's about understanding money, and more specifically, how to work backwards from what a house will actually sell for to figure out if you can afford to build it.

Brian walks through the brutal math that trips up so many builders. You've got your land cost, your build cost, and your expected sale price. Sounds simple, right? 

Wrong. There's financing costs, carrying costs, closing costs, and about a dozen other expenses that can turn a profitable-looking deal into a money pit. He talks about builders using "big, fat, fuzzy numbers" when they should be accounting for every nickel, especially when they're using other people's money to scale.

They talk about the differences between working with traditional banks versus specialized construction lenders. Banks want you to check 20 boxes in exactly the right order, every single time. 

Sound Capital's approach is different. They focus on the relationship and whether the deal makes sense overall. Brian explains how once you're approved with them, you don't have to jump through the same hoops for every project. 

There's this moment where they talk about builders who want to make the leap to development, buying raw land and creating subdivisions. Brian doesn't sugarcoat it. He's seen too many builders get excited about that "great deal" on farmland without asking the hard questions. Where are the utilities? What's the municipality going to require? That cheap land can turn expensive fast when you realize environmental studies and infrastructure costs weren't factored in.

Michael and Brian discuss Sound Capital's approach to builder relationships, including their ambitious goal of funding one million doors over five years. It's not about chasing the biggest, flashiest deals. It's about helping builders create attainable housing that working families can actually afford to buy.

The episode wraps up with practical advice about staying focused on what sells. Don't get distracted by the fancy houses that look good in magazines. Build what people can actually afford to buy. The successful national builders didn't start with million-dollar custom homes. They started with cookie-cutter houses and built more and more of them.

This isn't about getting rich quick or no-money-down fantasies. It's about the real path from being a tradesman to being a business owner, and all the financial realities that come with making that transition successfully.

Watch this episode on YouTube: https://youtu.be/p1hlZepbo2U

About Brian Coffman
Brian Coffman brings extensive real estate and finance expertise to his role as Director of Homebuilder Finance at Sound Capital. He began his career in sales with a Fortune 500 company, advancing to senior management before transitioning to private lending in 2007. 

Brian successfully navigated the financial recession while building a portfolio of over 250 properties and founded a hard money lending company in 2009 that funded more than $1 billion in loans. His hands-on experience includes personally valuing over 10,000 properties, giving him deep market insight that benefits Sound Capital's clients. 

Brian has been a valued member of the Sound Capital team for nearly four years, where he leverages his comprehensive understanding of both lending and real estate investment to drive homebuilder financing solutions.

Brian Coffman on LinkedIn:
https://www.linkedin.com/in/briancoffmanaz

Sound Capital's website: 
https://soundcapital.com

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Chapters:
00:00 - Introduction
01:05 - Project Costs & Margins
02:10 - Cash Flow, Financing, and Loan-to-Value
04:20 - The Role of Sound Capital
05:20 - Small Builder to Scaling Up
08:10 - Lending Options
13:00 - Trusted Advisor vs. Partner
17:00 - The Draw Process & Avoiding Pitfalls
21:00 - What Makes Sound Capital Different?
25:00 - Scaling Up
32:00 - What Lenders Look For
36:00 - Advice for New and Growing Builders
39:00 - The Big Goal: Funding a Million Doors
41:00 - Final Thoughts