Arizona Republic, September 8, 2014
Written by Georgann Yara
Enduring one recession early in his career gave Cachet Homes founder and President Matt Cody the perspective he needed to weather the most recent housing downturn even as other builders struggled.
“It was a very stressful and anxious time. We had to settle up with the banks, and we didn’t know what position the were going to take,” Cody said on the latest downturn. “I honestly believe because we acted early and with integrity, that has guided and protected us through this whole thing.”
In late 2007, Cody, who started his luxury-homebuilding company in Scottsdale in 1990, noticed foot traffic in sales offices decrease and saw monthly sales dwindle from four to two.
It wasn’t the first time he’d experienced a recession. During the recession of the early ’90s, Cody was working for a developer who hired him right out of college. But Cody always had designs on being his own boss, and he launched Cachet with his employer’s blessing as a side project while he continued with his day.
By 1992, conditions began to improve.
Although he owned a fledgling business, Cody experienced the first recession primarily as an employee, which provided some financial cushion. The second time around, however, he was in an ownership capacity.
“(In the previous recession) a lot (of builders) didn’t understand the problem until they ran out of cash. But I realized this was different,” he said. “Having gone through a recession, it all began to feel a little too familiar.”
Instead of waiting until conditions were dismal, he took steps to work with financial institutions before Cachet’s relationships with them soured. This included halting sales and returning property to banks via foreclosure.
