San Joaquin Valley Homes by North American Constructors Journal

San Joaquin Valley Homes: The Reward for Excellence is Continued Success for California Home Builder

Three partners leverage long-standing relationships to create 25 years of success as production home builders

Written by Dawn Killough

Produced by Stephen Marino

The market will always reward excellence,” said Joseph Leal, co-founder and majority partner at San Joaquin Valley Homes (SJVH) in Visalia, California. “We’re not trying to be the biggest. We know we won’t be. But you can always strive to be the best.”

When competing with national home builders like D.R. Horton and Lennar Homes, Leal said, “We know we’re small, so we know we have to have better service, better locations, and better plans. We have to do everything better than the big guys that have so many more resources than we do, and we like the challenge.”

SJVH builds homes in four counties in the Central Valley of California. Their most recent neighborhoods include two in Hanford: Hidden Oaks and Sterling Oaks.

Hidden Oaks features threeto-four-bedroom homes in the Modern Cottage, Craftsman, and Farmhouse styles. The interiors are open, with large great rooms, adjoining kitchen and dining rooms, center islands with snack bars, granite countertops, and stainlesssteel appliances.

Sterling Oaks includes three-tofive-bedroom homes inspired by the Tuscan, Mediterranean, and

Craftsman styles that are designed with covered porches, carriage lights, and stone and brick veneers. The interiors include nine-foot ceilings, granite counters, stainless steel appliances, and maple cabinetry.

Leal is most proud of their Del Lago development in Tulare, which had 1,600 homes and included a 30-acre park in the middle.

Flexibility leads to customer satisfaction

While competitors rely on production speed and cookie cutter designs, SJVH gives its customers a great deal of latitude

in choosing designs and finishes. “We offer buyers significant input into their home’s design and structural features,” said Leal. “We continuously refine our floorplans and elevations to stay ahead in design and operational efficiency.”

Buyers are treated to personalized meetings at their design center, empowering them to create spaces that reflect their unique preferences and lifestyles. These meetings and their flexibility differentiate them as a builder committed to exceeding their customers’ expectations throughout the buying process.

When a sale is complete, they

San Joaquin Valley Homes

actively solicit feedback from their customers through surveys and use this feedback to refine their processes and proactively address concerns. “By prioritizing transparency and collaboration with our partners, we uphold our reputation as a builder of choice in the industry, committed to delivering exceptional quality and service with every project,” said Leal.

The importance of relationships

SJVH prides themselves on their relationships with their employees and subcontractors. “When I hire people, I tell them there’s only one

thing that can get you in trouble with me, and that’s speaking ill of another employee or not talking professionally to our customers and subcontractors,” Leal said. “We try hard to be everyone’s best customer.”

When it comes to his style of leadership Leal said, “I let our employees each have their own style and be happy in their jobs. I don’t want to see them here late at night or on weekends. I want them to have balance in their lives with their families. We have very little turnover here and I think it’s because we work so hard to make it a place where you don’t dread

coming to work in the morning.” They also treat their subcontractors like partners, hosting three or four hundred of them at twice-yearly breakfast meetings where they lay out their coming workload for the next year so the subcontractors can plan accordingly in their own businesses. During these events, they are very open about their future plans and the state of the company. “I explain to them that we try to do things that will make their companies profitable,” said Leal. “We line build so that when they come to our subdivisions, they can pour or frame five houses at a time. We treat them well and

we pay them on time.”

They even go above and beyond to support their partners. “If they get in trouble or they’re overextended and they ask if they could pick up an extra couple hundred thousand dollars, if they’re in good standing, we say of course.”

History of Success

Leal and his partners, Jim Robinson and Randy Merrill, are no strangers to startups. They began partnering with Richard Allen to form Allen Group in 1997. It was a large commercial and residential contracting company that grew

to build about 300 homes a year within three years. Leal was the corporate controller and then moved into operations, running the Las Vegas division. In 2002 the company was sold to McMillin Homes in San Diego, where Leal then ran the company for a number of years, building about 800 homes a year.

In 2013 the trio started San Joaquin Valley Homes, and in a little over ten years they have closed over 3,500 home sales. They currently employ 85 people, have fourteen active subdivisions, and sold 618 homes in 2022.

Leal was born in Tulare, California,

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to dairy farmers who immigrated from Portugal. He purchased his father’s farm at the age of twentyone. He then earned finance and MBA degrees from Cal State Fresno and worked as a controller for a number of years for Fortune 500 companies, before beginning his career in home building. Today he focuses on long range planning for SJVH, including land purchases and product development. He is also a key player in managing the company’s capital resources, allowing them to respond to market changes and ensure a steady cash flow so they can maintain their production schedules. His partners have experience in engineering and

heavy construction, making them an almost perfect team.

He credits his father for his work ethic and a former coworker with his knowledge of business and running a production home building company. “My father showed me through his own work ethic and core values that it’s more important to be the best at what you do than to be the biggest. That’s why I don’t think I would change anything about my past, because for my whole life that’s been my mantra.” Regarding his mentor and coworker, Leon Swails, Leal said, “Leon had a long history in production home building for some major national companies. He

really gave me a good background in this business. He taught me the importance of disciplined business management and teamwide communication, shaping my approach to leadership.”

Between his father and Swails, Leal credits their influence as shaping his “commitment to excellence and continuous improvement, ensuring that our team operates cohesively and efficiently at every level.”

While things are going well for the company, they, like many other contractors in California, are struggling against higher mortgage interest rates and the ever-increasing building fees and regulations in the state. For

example, in January 2022 California passed a law that every new home must include solar power. This added several thousand dollars to the cost of each home, affecting their sale ability.

Making a contribution

“I find immense satisfaction in contributing to our buyers’ journey toward homeownership, knowing that each home we build represents a significant milestone in their lives,” said Leal. “Moreover, I’m energized by the opportunity to lead a team that shares a passion for quality craftsmanship and customer satisfaction. Every day presents new challenges

“My

“father showed me through his own work ethic and core values that it’s more important to be the best at what you do than to be the biggest.”

Joseph Leal

and opportunities to innovate, ensuring that we continue to exceed expectations and set new benchmarks for success in the construction industry.”

As the team continues to focus on providing affordable housing solutions to address the country’s growing housing crisis, they seek to double annual home production and expand their developments beyond central California, making them a top 50 builder. “By leveraging advanced construction technologies and sustainable building practices, we’re poised to meet evolving market demands while enhancing our reputation as an industry leader. This expansion reinforces our dedication to delivering superior homes and exceptional value to communities across Central California and beyond.”

SJVH prides itself on supporting the local communities near their developments. For the past ten years they’ve contributed to The Rescue Mission, which works with the homeless and addicted to provide not only housing and food, but to educate and train them to become self-sufficient and hold down jobs. They’re also active with Boys and Girls Clubs, the local hospital, and several schools.