Bridging the Gap: NBG's New Model for Home Builder Success

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Date:

05 Dec 2024

Jim Rosewater’s path to leading The National Builder Group (NBG) wasn’t a traditional trek through production building ranks. Instead, his journey through international marketing, entrepreneurship, and franchising has informed a fresh approach to builder partnerships that’s gaining traction in today’s challenging market.

Starting in international marketing during the 1990s, Rosewater found his way into home building through what was supposed to be a temporary marketing assignment for his father-in-law’s building company. “What’s more exciting to market than a home?” Rosewater reflects. “It’s the ultimate marketing opportunity – to provide housing to people, to market a product where you’re going to live.”

That initial project in South Florida led Rosewater through increasingly significant roles, including taking a company public and developing his own projects. After successfully navigating the 2007-2008 housing crisis, he joined forces with industry veteran Art Rutenberg, helping expand Arthur Rutenberg Homes from a Florida-based operation into a twelve-state enterprise. Rising from Regional Vice President to CEO, Rosewater developed new product lines and refined systems for maintaining quality across markets.

When the opportunity arose to join NBG in Colorado Springs, Rosewater saw potential in the innovative model created by entrepreneur Brian Bahr. As founder of The Challenger Group, a leader in residential housing, Bahr had developed The National Builder Group as its newest and fastest-growing division, creating a network of non-franchised, owner-operator led companies. Rather than expand his successful Challenger Homes operation through traditional means, Bahr envisioned a different path. “Our mission is making life better,” Rosewater explains, “and that truly permeates everything we do.”

NBG’s model addresses a fundamental industry challenge: enabling talented executives to become successful business owners. “These professionals have made a lot of money for other builders,” Rosewater explains. “While they’re well-compensated, many have always dreamed of building something lasting that’s their own. It’s more than a business decision – it’s a life-changing opportunity.”

The ownership structure is specifically designed to make this transition achievable. “If you have the skill set but are a little risk-averse, we offer a solution that makes it easy to make that transition,” says Rosewater. Through majority capital funding and non-recourse construction financing via a sister company, NBG removes many of the traditional barriers to ownership while allowing partners to maintain control of their local operations.

What sets NBG apart is its strategic support system. “We’re building a team that can fill in some of the gaps in skills,” Rosewater explains. “We can coach and help and train and provide services that our owner operators might not have experience in.” This includes everything from accounting services to marketing assistance, but perhaps most significantly, their national purchasing program.

In the past year, NBG has established strategic partnerships with major manufacturers in the industry, ensuring their builders can offer quality products with exceptional warranties. “If there’s a supply chain challenge, we have a partnership, so we’re more likely to get the product than someone who doesn’t,” Rosewater notes. “We’re giving small builders the ability to compete at a higher level than they would if they were just on their own.”

The approach has resonated with industry veterans. Since Rosewater joined, NBG has added eleven new owner-operators. Each operates under their own brand, making local decisions while working within NBG’s established processes, creating a balance between entrepreneurial freedom and operational support.

“Production builders excel at bringing structure to the business, while entrepreneurs often reinvent the wheel,” Rosewater observes. “We bring structure to a business where you can be an entrepreneur, but within a framework that helps avoid common mistakes. This balance allows our partners to focus on what they do best – building quality homes and creating lasting value in their communities.”

As the housing market continues to evolve, NBG’s partnership model offers an alternative path for experienced executives seeking ownership opportunities. By combining local control with national-scale support, they’re creating sustainable growth opportunities for builders across their expanding network – and helping industry professionals transform their career aspirations into reality.