All Forum Posts by: Evan York

@Charles Boisseau - great to hear you’re starting a container project! I personally have not heard of them.

We are starting construction on ours now, finally. 3 years in the making, but with a private investor.

@Jim Goebel - All points heard, and I do not disagree with your "selling points". 

This idea started with my business partner and I wanting to build a vacation home for ourselves, but learned of the viable business proposition it could serve to offset whatever our monthly costs are (and high chance of profiting based upon the market research we performed using AirDNA).

We're not positive that the market is ready for living in shipping containers; hence, our reason to concentrate on the novelty. We believe everyone wants to stay in one, but not everyone wants to live in one - yet. Precisely why we are entertaining the idea of listing this on a short term rental site such as AirBnB. 

This is our method to introduce this in a very small way while we continue to leverage additional uses of shipping containers such as mobile pop-up venues, shops, kitchens, urban agriculture, etc. 

Set the business aside for a moment: my partner and I simply wanted to have 2 shipping container dwellings on a single lot for us to vacation together. 1) because we can afford to and 2) because it would be a fun project that is unique and inexpensive (relatively speaking for a "vacation" home at less than $100K a pop). Don't forget, that $200K price tag includes 2 acres of land in a desirable area with $30K of "unseen and unplanned" expenses. 

No less, thanks for the input! All valuable things to consider if we get to a point where we believe the market is ready to adopt shipping container / tiny homes on a large scale!

Continued @Jim Goebel

1. Regulatory ie Permitting Etc: major concerns here because how the containers are tied together from a systems perspective, metered, etc has major life safety implications. I'd guess the code on this is nascent at best. If stacked up, how do you disconnect the plumbing, electrical, etc. What's the longer term end game of your land and plan after you get past 2 units?
   We intend on keeping each unit simple when it comes to utilities. Which is why we've opted for a single 40' containers for each unit.
   
   My business partner and I are staying at this unit in a couple of weeks to investigate exactly what you just mentioned: https://www.airbnb.com/rooms/16189276
2. Lending: If I'm lending on a home I get collateral. I don't like lending on something that's reasonably mobile given that I don't know 
   Fair - but the design we have isn't conducive for transportation. It's still a "house". Just made out of unique building materials. 

@Jim Goebel Great questions! I have some answers for you.

1. How are you developing your site? Are these units presumably going to be stacked up on top of each other\
   No sir - they are 2 separate units that are side-by-side, connected with a "commune" space for a deck, fire pit, etc. I could share drawings privately. But the concept is very similar to what someone is doing in Carolina Beach, NC...except ours will have the deck bringing the 2 units together for common space. See link: https://www.coastalliving.com/travel/rentals/tiny-...
   
2. How are the units going to be purchased - who owns them? If you, does that mean you'll be a leasor of those units (via AirBNB)?
   That's where we're running into road blocks. We intend on owning them. Several people have expressed interest in being an investor in the business for a share of equity. We have plans beyond the real estate in our business plan. We would be the leasor via AirBnB and our own site via Lodgify. 
3. Site development: how are you going to tie in the plumbing/mechanical/HVAC systems to your central utilities? Related to this, how are you going to meter these?
   Water and electrical are already at the street from the city on the land we are in due diligence on. Our engineering firm mentioned that centrally locating the tie-ins on the units would reduce cost for us, and would be metered as any regular home. "A home is a home - despite the building materials" said our engineering firm. HVAC can be done with simple "hang-in the wall" units.
4. How mobile are your 'units' going to be?
   They'll be welded onto cylindrical foundations. Theoretically, they could be transported...but with as much floor-to-ceiling glass that will be in it, it would be risky. We intend on it being a permanent structure. The "modular home" solution is on our radar - just not for this project....
5. How do your site development costs break down vs your 'per unit' costs ? If I'm wearing my lender hat I want collateral and I don't want my money used for stuff that isn't backed by collateral. For instance, land purchase price, and site development costs should be separately financed.
   We've discussed buying land, but financing it independently so we can save some operating capital for future projects. But if we had the land, we could use it as collateral. Otherwise, without having a 100% completed budget with contractors. At a high level, we're approximating for it to be no more than $125 per square foot ($40K x 2 units puts us at $80K to build). Then we're looking at a 2 acre lot of land at $90K. The remaining $30K is furnishings, deck, etc. We realize that we can't finance some of those miscellaneous items - but we've put it into our budget for our business plan as we conducted market research on what revenues we can generate. 
6. Per #5, also wearing my lender hat, what community/etc is out there so that if a lender did have to take control of these units, they have the assurance that they can do something with it? IE it has liquid value, etc.
   Because it's a "non-traditional" home, there are some questions here. Our argument is - especially in the geographic region of the NC Blue Ridge Mountains - there is a strong desire for tiny homes, vacation rentals, and investments. Plus, the particular lot of land we are looking at allows for 2 units per acre. Meaning, you can subdivide that 1 parcel of land for 4 homes at some point. Considering there is a private residence within 20 miles of our proposed project made entirely out of shipping containers...we believe there's a place for it

@Chris Harjes - huh, would figure our Realtor would have mentioned that Arden illegalized vacation rentals as he’s aware of what our project consists of. 

Otherwise thanks for the insight! Been in touch with several of the banks you've mentioned. Seems like HML might be the way to go and refinance to a loan.

Thanks for the insight @Jody Schnurrenberger - great thoughts on the crowdfunding. Where does one begin finding a HML? We're looking to build this into a business beyond real estate. Containers can be used for many other uses!! Hence the reason some investors have expressed interest.

And good point on the Asheville ordinances on STR's. We're intentionally staying out of the city limits and focusing on the "surrounding area" such as Arden.

Thanks for heads up @Michaela G. - I believe we've done the research and have pulled the resources together. Container homes are really, quite simple. Financing them, however, is a different story. 

Greetings from Charlotte, NC. My name is Evan York, and I am new to the forum in hopes to find some answers for a project a business partner and I are pursuing. 

My Co-Founder and I are developing concepts to up-cycle shipping containers for multiple functional uses - beginning with homes to list on AirBnB. 

There has been a few examples of this that have been successful, and we have found a niche in Asheville, NC that we believe would be successful for our flagship location. 

Here's the good news: 

1. We've designed the concept with an architecture firm and an engineering firm who have history of designing shipping container homes. 

2. We have found a plot of land that fits the criteria of our project, and the county will allow us to build there despite the "non-tradutional" building materials

3. We have mapped the process to get a container from the Port of Charleston all the way to a completed shipping container home for people to stay in. 

4. Invested in market research on AirDNA.co and have revenue potential of $76K annually with LOW operating expenses (they're only 320 sqft...)

Here's the BAD news: 

1. No traditional lenders have an appetite for our project, despite the relatively low cost (Approx. $200K including land)

Our Challenges:

1. We have 2 "dwelling units" on a single plot of land. In the banks eyes, this is like building 2 homes, and would need 2 separate loans

2. It's an "investment property" 

3. We're using shipping containers. 

4. Despite that a construction to perm loan would be not much over $1,000 a month (with 2 Co-Founders with a credit score well above 750, and a healthy combined income) banks see it as "high risk" 

5. Even as a "2nd home", there's a risk because we will be listing it as an AirBnB under an LLC.

Our Needs: 

1. $200K to build 2 shipping container units on 1 plot of land 

We launched a crowdfunding campaign to raise some upstart capital, which got us up to $6,000. At this point, we need quite a bit more cash. We have had several angel investors express interest in getting us some upstart capital, but not enough for the entire project. 

Suggestions on how to raise the capital we need to upstart this concept is welcomed!!