All Forum Posts by: Jake L.

At this point, I don’t see what a prospective investor wouldn’t seek out an investment opportunity with a factory that has 1) actually delivered modules and 2) has a pipeline full of repeat customers. Most factories have had customers drop out of their pipeline and will have adjusted their projections. Why not put your money with a proven entity instead of one that has promised a ton and produced nothing? Boxabl, Impresa, VBC, Autovol, Fading West, Foothold… just a few operators that come to mind that have actually delivered modules to customers’ jobsites and are way beyond the “renderings! solar panels everywhere!! sustainable!!!” stage; whether any are accepting new investors is another question. 

My company builds exclusively using offsite construction methods (specifically modular), and we interact with numerous factories throughout the country. Building a factory, staffing it, and then getting modules off the line and out the door for a single location is a massive undertaking, and I don't think even the most sophisticated and successful operators in this space would ever claim they could bring 35 factories online... as in, it just isn't possible. Too good to be true, and it really doesn't even sound good. I wouldn't touch this "opportunity" with a 100 ft pole. 

Kenny, I have a lot of family in the Flathead Valley and I think there's great potential there for the uses you mentioned, assuming your site is well-located and the land is attractive. Zoning, stormwater, utilities, septic/well, etc. are all things you'll need to consider. And don't let the lack of zoning fool you, there will almost certainly be an extensive entitlement and permitting process. I have a 32-lot subdivision under construction now in an "open use" zoning designation, and it took over a year (and a lot of $) to get it through the preliminary plat and land disturbance approval process. 

In addition to my traditional land development projects, I've also been looking at various low intensity uses that can be installed on large tracts to cover holding costs + provide some positive NOI, such as tiny homes on wheels, glamping, etc. Happy to discuss some ideas with you.

Modular homes are built to the IRC. Manufactured (aka mobile or trailers) are built to HUD code.

Crossmods are manufactured homes built to HUD, but they have elements of a traditional stick built or modular home

Lisa, correct that these are HUD code manufactured homes, but they are designed to appear like stick built IRC homes. Permanent foundation, attached garage, paved driveway and connecting walkway, pitched roof, etc. But the appraiser is still going to check the "manufactured" box so I imagine the value will be somewhere between an IRC house and a traditional manufactured.

The MH Advantage Fannie mortgage is the new program designed specifically for these, and it is pretty attractive... 3% down. 

If buyers (or renters) can get over the "manufactured" label and are willing to pay a price that's at least approaching a stick built or modular home, this could be an attractive product. Please let me know if you hear from any other appraisers or if you come across any comps. 

We've been looking at these crossmod designs as well for future build-to-rent projects and for-sale spec projects. Does anybody know of any crossmod sales (or rental) comps anywhere in the US? I'd be curious to see how they performed and whether they're truly comparable to stick built homes with similar levels of finish.