These are still just way to expensive. The reason for that is that you have investors who have fantasies of venture backed profit margins. Until these are actually affordable they are for the lazy rich or for content creators. Factory built is supposed to result in lower costs not just faster timelines (and the timelines are not guaranteed). I would rather deal with a local builder on site vs being a guinea pig for venture backed companies who may not be solvent for warranty issues trying to figure this out.
Awesome video, I still struggle with the fact that prefabs don't appreciate as a standard "single family home" that's fully permitted. I love what these companies are doing with these homes but having equity in my properties is key to the end game of selling the business.
I find it insane that the most expensive asset that most people own is totally assembled by hand. Every 2x4 needs to be handled multiple times, measured, cut, placed and nailed. While there are some true craftsmen/craftswomen that can do an excellent job, the majority of new homes are built as quickly and cheaply as possible so the quality sucks. The only solution to the quality and affordability problem is mass production on an assembly line. A lot of small companies are doing this, but the scale is still too low and here isn’t enough competition to really reduce prices yet. Too bad that investors/private equity /Wall Street are too short-sided to provide the capital needed to really scale these technologies.
Hi Rob. All good points. I really like you’re going over this specifically. I do long term and mid term right now. I also work for manufactured/modular home installation company. Just a few points I’d like to clarify 😃 modular doesn’t necessarily refer to the “customizability” only, but also the installation process is different for modulars. And HUD code homes are a separate building code. I don’t believe a HUD code can be installed the same way a modular is. Since modulars are built to IRC code. Therefore you can install differently. Also in reference to financing, 21st Mortgage is one of the few lenders that will finance these, likely a new pre-fab. And yes, in reference to the depreciating asset, the banks see that, if a frame stays on the home there’s always a chance it could be “rolled away” (highly unlikely) BUT, that’s part of the installation process for an IRC Modular home. And doesn’t necessarily need to be craned in, in case that’s a concern for some people. We also roll them onto the foundations. Quite the impressive process. Anyway, regardless of the “details” I love seeing these as an investment and am considering something like this as an ADU for my next mid-term property. Just to increase the income off a single property. Thanks again for diving in the weeds, despite the haters that’ll likely pop up over the asset class
Definitely need the costs surrounding these to go way down so more people can afford them. Just feels like expensive toys for venture capitalists to get rich off of currently. 35k is a great range though but would like to see "how basic" it is.
These are still just way to expensive. The reason for that is that you have investors who have fantasies of venture backed profit margins. Until these are actually affordable they are for the lazy rich or for content creators. Factory built is supposed to result in lower costs not just faster timelines (and the timelines are not guaranteed). I would rather deal with a local builder on site vs being a guinea pig for venture backed companies who may not be solvent for warranty issues trying to figure this out.
Thank you for doing this update, hope to see more on various types of prefabs
Great points to consider! I've been researching these for a while and you mentioned a couple things I didn't consider.
Awesome video, I still struggle with the fact that prefabs don't appreciate as a standard "single family home" that's fully permitted. I love what these companies are doing with these homes but having equity in my properties is key to the end game of selling the business.
I find it insane that the most expensive asset that most people own is totally assembled by hand. Every 2x4 needs to be handled multiple times, measured, cut, placed and nailed.
While there are some true craftsmen/craftswomen that can do an excellent job, the majority of new homes are built as quickly and cheaply as possible so the quality sucks. The only solution to the quality and affordability problem is mass production on an assembly line. A lot of small companies are doing this, but the scale is still too low and here isn’t enough competition to really reduce prices yet. Too bad that investors/private equity /Wall Street are too short-sided to provide the capital needed to really scale these technologies.
lol Rob a house that is basically just windows is not energy efficient no matter how well insulated the small amount of walls are
Hi Rob. All good points. I really like you’re going over this specifically. I do long term and mid term right now. I also work for manufactured/modular home installation company. Just a few points I’d like to clarify 😃 modular doesn’t necessarily refer to the “customizability” only, but also the installation process is different for modulars. And HUD code homes are a separate building code. I don’t believe a HUD code can be installed the same way a modular is. Since modulars are built to IRC code. Therefore you can install differently. Also in reference to financing, 21st Mortgage is one of the few lenders that will finance these, likely a new pre-fab.
And yes, in reference to the depreciating asset, the banks see that, if a frame stays on the home there’s always a chance it could be “rolled away” (highly unlikely) BUT, that’s part of the installation process for an IRC Modular home. And doesn’t necessarily need to be craned in, in case that’s a concern for some people. We also roll them onto the foundations. Quite the impressive process.
Anyway, regardless of the “details” I love seeing these as an investment and am considering something like this as an ADU for my next mid-term property. Just to increase the income off a single property. Thanks again for diving in the weeds, despite the haters that’ll likely pop up over the asset class
Definitely need the costs surrounding these to go way down so more people can afford them. Just feels like expensive toys for venture capitalists to get rich off of currently. 35k is a great range though but would like to see "how basic" it is.
Hey Rob, who makes a fire resistant/compliant house?
69 views? Nice.
Almost as many as the 98 you got 11 years ago.
Says 6.9k.