Once you have the fund you would like to invest in real estate, it only makes sense to adapt to the growing desire for tiny homes. Though it seems minimalism may be a trend that has affected this demand, it is also caused by millennials who are faced with housing crises everywhere. With an increasing population with insufficient houses and land to meet the need, they learn to live with less rather than pay for an expensive prime piece of property.
By settling for less living space, millennials can stay out of debt and travel as often as they need to, wherever their plans or work takes them. The history of tiny housing goes all the way back to Thoreau, and it is still ongoing until today as there is an ongoing demand for them. It was not just a way for people to recover from a housing crisis. The tiny house movement is a way for people to mitigate liabilities and become more financially stable as they need to be in an increasingly expensive world to live in. So here is how you can be part of that history.
Figure Out the Business Model
Decide on whether you will be producing prefabricated homes, made-to-order homes, or both. Either one produces both advantages and disadvantages, and it would be best for you to produce a risk analysis for what you can handle.
A just-in-time model will mean that you produce homes on a need basis. It can be subject to what the consumer wants, or its design can be solely up to you. A benefit of this model is that it minimizes risk, especially if you’re just starting. You’re still testing the waters, and this will allow you to avoid wasting materials in any instance that the customer does not prefer a prefabricated home.
On the other hand, some people prefer a home they can move into as soon as possible. You can take advantage of this opportunity by trying out both options, possibly offering the prefabricated home and the just-in-time model at the same time. What is more, is that it depends on your capability to produce a just-in-time home. It takes a lot of planning and the right construction team to keep your business going for a time-sensitive business plan.
Plan Out the Design
Whether you put your investment toward a prefabricated home or one based on your customer’s desire, you need to have a design in mind. Even though a home buyer’s taste determines whether they purchase the house or not, the space in a tiny home is limited. You would not want all the stress to fall on your client, so you should have an idea of the possibilities that a tiny house can bring, like maximized storage space.
Find a Contractor
You should find a licensed contractor to help with the project unless you can take on the entire project yourself. The craftsmanship of a tiny home will be one of the biggest selling points you can use. People looking into this market are concerned about how well-made it is. Small living spaces amplify problems. It would be best to make sure that even a leak won’t be a major problem for your client. The best way to protect yourself and your investment are to look for a contractor with experience in building tiny homes. It is a trade that takes practice, and that makes their insights a valuable asset in this venture.
Prepare the Suppliers
Make sure you have control over the suppliers. Do not leave everything to the contractors. This way, you can keep an eye on the project’s overall cost without being blindsided by a bill later on. For instance, reliable FastFrame installation is the foundation of the project. Securing a supplier that can provide you with quality raw materials will allow you to make sure that you get a good return on your investment. It will also make it less likely that your client will have problems with the build because you are aware and confident in the supplier you made a contract with.
The tiny house movement is more than a reality TV show. It has become a preferred way of living for many, with trends in minimalism on the rise. People prefer to live with less as they become more financially literate as they try to enter the FIRE movement (Financial Independence, Retire Early). However, they cannot get there by constantly paying for liability as expensive as rent forever.
