Exclusive: Inside Dream Finders' Bold Liberty Communities Acquisition

Last week, Dream Finders Homes announced its acquisition of Liberty Communities, a pivotal move in the hyper-competitive Southeastern U.S. homebuilding market and one of 2025's first homebuilding mergers and acquisitions.

As we wrote here:

This transaction marks Dream Finders’ entrance into Atlanta—one of the nation's largest and most dynamic housing markets—and strengthens its position in Greenville, South Carolina. Liberty’s homebuilding operations, vertical integration capabilities, and land assets are included in the acquisition, making it a strategic bellwether for homebuilding M&A in 2025."

The deal carries over many of last year's M&A runway show markers but also introduces a couple of different characteristics that may foreshadow evolving new priorities in M&A's buyer-seller courtships and marriages.

Here, we explore the Dream Finders-Liberty Communities combination, thanks to an exclusive, in-depth look at the deal's motivations, insights, and future potential. Liberty Communities' founder, Neil Koelbl, talked with us the day after the combination went public.

Focusing on capital needs, vertical integration, and growth strategies, Koelbl provides a compelling narrative of why this partnership was both necessary and uniquely value-creating.

Capital Constraints and the Move to Scale

For Koelbl, the Dream Finders deal emerged from the increasing difficulty private homebuilders have in securing acquisition, development, and construction (AD&C) loans in today’s banking environment.

It’s hard to compete with the roll-ups of larger public builders like D.R. Horton and others who have their own land companies and vast capital resources,” Koelbl explains. “We needed the right capital partner to ensure Liberty could not only compete but thrive in this environment.”

Koelbl met Dream Finders’ CEO, Patrick Zalupski, during a ski trip over a year ago. Introduced by Anthony McGill, Senior Managing Director and head of Investment Banking at Zelman & Associates, they bonded, ultimately leading to discussions about a partnership.

What struck me was their entrepreneurial mindset. Dream Finders thinks differently, and that resonated with me,” he says. "This partnership is not about cashing out. It’s about growth—giving Liberty’s team opportunities and building something extraordinary together.”

Operational Efficiency Via Vertical Integration

Liberty Communities’ distinguishing feature — and a key appeal to Dream Finders—is its home-grown, advanced offsite manufacturing capabilities. This vertical integration – developed not with Venture Capital funding or even outside investor dollars or loans but – entirely on a revenue-funded basis, is designed to streamline operations and achieve a game-changing four-times annual inventory turn.

What inspired me was the NVR model. Competing with them showed me how much efficiency matters,” Koelbl recalls. “Our goal was to consistently turn inventory every 90 days. It started with a simple framing table in my barn and grew into a full-scale operation that now integrates windows, stairs, and standardized materials for faster builds.”

Today, Liberty’s offsite manufacturing, managed under its Liberty Engineered Products (LEP) division, enables the company to frame a house in just two and a half days—with windows and stairs already installed.

We even pre-order materials in bulk, like tubs and windows, to maintain cost control and ensure predictability,” Koelbl notes.

This approach supports efficiency and mitigates risks associated with supply chain volatility — a key advantage in today’s inflationary environment.

Scaling Velocity and Built-for-Rent Opportunities

Koelbl sees enormous potential for Dream Finders to expand on Liberty’s operational innovations, fueling higher capability that can port from operating region to operating region, and accelerate profitable growth. Just like the giants.

What excites me is the opportunity to scale this system across Dream Finders’ footprint,” he says. “With our model, we’re not just building homes faster; we’re reducing waste, cutting costs, and creating a more consistent product.”

Another intriguing area of growth is the built-for-rent (BFR) market.

The ability to deliver high-quality, quick-turn builds is a big draw for investors in the BFR space,” Koelbl explains. “With Dream Finders’ connections and our supply chain control, we can offer something truly unique: predictable costs and consistent delivery, even for large-scale projects.”

Riding A New Wave: Growth, Legacy, and Local Expertise

Koelbl emphasizes that the deal is not an exit but a chance to scale Liberty to its full potential.

I want to see Liberty become a top player in Atlanta and beyond. This partnership gives us the resources to make that happen,” he says. “Dream Finders has given me the freedom to focus on what I love — land acquisition and development — while also ensuring that my team and I are set up for long-term success.”

Local relationships are another key asset Koelbl brings to the table.

In a market like Atlanta, those relationships are everything. They help feed the machine, ensuring we always have a strong pipeline of lots to build on,” he says.

A Transformational Moment in M&A Strategy

This partnership underscores a broader trend in homebuilding M&A: private builders aligning with public companies to overcome financial hurdles and achieve scalability. As Koelbl puts it,

In today’s environment, access to capital and operational efficiency aren’t just advantages — they’re necessities. This deal gives Liberty the tools to thrive while preserving the entrepreneurial spirit that got us here.”

For Dream Finders, the acquisition isn’t just about entering Atlanta or scaling land supply; it’s about adopting Liberty’s velocity-driven systems and innovation. As Koelbl summarizes,

This isn’t just another acquisition. It’s a chance to redefine what’s possible in homebuilding.”

Takeaway

Koelbl’s story is a testament to the power of innovation and adaptability in a challenging market. By joining Dream Finders, the Liberty Communities team is poised to expand its impact while staying true to its values. For the broader homebuilding industry, the deal highlights how strategic partnerships can drive growth, efficiency, and resilience in an era of consolidation and capital constraints.