Press Release - Riverside, CA (November 20, 2019) - While California struggles with an unprecedentedly severe housing cri...
Our nation is suffering from a housing crisis
Across much of the United States, regulations and lawsuits have dramatically increased the cost of housing construction and the time required to build new homes...particularly in high-demand coastal regions.
What used to be an affordable starter home is now out of reach for many, including young workers with limited income and student loan debt. Elderly people living on fixed incomes are also vulnerable at the very moment in their lives they should feel secure.
Some state governments are reacting by drafting extreme laws that would see suburban neighborhoods disfigured and destroyed by high-rise, high-density, rent-controlled apartment buildings.
Making housing affordable for all
Real estate investors and developers Todd Bayer and Stephen McKee are on a mission to make housing affordable to all … a mission so compelling that they divested themselves of their various businesses so that they could focus entirely on fulfilling this mission.
Back Porch Homes is how they are going to do that. Back Porch Homes, or BPH, uses the tiny home concept to increase suburban housing capacity while preserving neighborhoods … and does so in weeks rather than the months and years associated with building accessory dwelling units.
In addition to designing and manufacturing their innovative “tiny home on wheels” products, BPH also provides in-house financing as well as wrap-around services and support.
Would you like your home here … or to go?
The chart below shows how BPH’s “tiny home on wheels”, or THOW, compares (and is superior) to alternative methods of adding capacity to existing residential property.
|Dwelling Type||Motorhome||Manufactured Home||Accessory Dwelling Unit (ADU) or Tiny Home||BPH Tiny Home on Wheels (THOW)|
|Time until occupancy||Same day||Two to four months||12 to 18 months||Two to four months|
|Actual movability||Road worthy 24/7||Cost prohibitive ($10-$15K)||Immobile||Road worthy 24/7|
|Construction quality||Inferior and rapid deterioration on sub-$100K models||Historically inferior and presently variable||Built to local building codes||Built to exceed ANSI/RVIA guidelines|
|Resale value||Depreciates like automobiles||Depreciates quickly||May increase property value but cost more than the gain||Maintains value due to construction quality, financing, and ease of mobility|
|Utility dependence||Designed for off-grid||Same as site-built home||Same as site built home||Capable of on or off-grid|
|Financing options||Vehicle financing; options decrease over time||Limited options unless permanently attached to foundation||Home equity loan or private financing||Options include in-house as well as vehicle financing|
The THOW concept aligns with trends that show people change jobs and move frequently. When an opportunity in another location presents itself, the Back Porch Homes THOW owner can take their home with them (recommend ¾-ton truck or larger.)
Introducing the Companion™
BPH’s first offering, the Companion, is designed for practicality and simplicity.
The exterior design compliments suburban architectural tastes and can be color matched to harmonize with the property’s existing home … something neighbors concerned about visual continuity will appreciate.
The Companion’s 255 square-foot interior feels surprisingly roomy as a result of large windows and a handicap adapable 36” wide hallway that runs the length of the unit. The base model includes standard-size appliances (rather than reduced sized RV appliances) and an abundance of storage space.
Don’t just believe us, look at how others have responded
Back Porch Homes gained instant traction in our regional market with more than 70 units pre-sold within the first 48 hours of our announcement to our real estate investment club.
In addition to these pre-sales and the $577,500 in capital raised thus far, here is what some of our investors are saying:
“Young and old are boxed out of the market. Younger people cannot afford to buy any home in Southern California. BPH offers an opportunity for independence and privacy that apartments do not offer and is a perfect first step to owning a traditional home.” - Esther Chu, Cerritos, CA
“I invested with Back Porch Homes because housing affordability is a problem and rather than building more luxury homes, BPH’s approach is to help alleviate the problem by building affordable homes. I believe that many people will benefit from this, either as an owner or a renter. There is a large percentage of the population who are getting priced out of homes and if I can benefit from this market as an investor and help people get into homes they can afford then it’s a win for everybody.” - Chris Advincula, Corona, CA
“Back Porch Homes is uniquely positioned to put a dent in the affordable housing crisis while giving homeowners an opportunity to receive rental income from day one by putting a tiny home in their backyard. Stephen and Todd have been through the gauntlet in real estate cycles and have the experience and know-how to persevere in any market. They have the grit and the right team to scale BPH and a ‘community-first’ mindset to create a meaningful business in their home region and then throughout the nation.” - Drew Nagda, Los Angeles, CA
Who will live in a BPH Companion?
By putting everything an occupant could need within reach, the Companion is a functional and attractive dwelling for young or old.
Middle-age homeowners often have either (and often both) young adult children and an elderly parent. For as little as $3,500 down and $439 each month, these homeowners could provide a safe, comfortable and convenient home for their loved ones.
The BPH Companion is designed to fit on residential properties measuring 10,000 square feet or more. As the satellite view below shows, the Companion fits comfortably in a range of backyard settings and, in many cases, will be obscured from street view … another neighbor pleasing benefit.
Making profits while making a difference
We are currently focused on selling homes to the members of our 5,000-member Inland Empire Real Estate Investment Club. They in turn will use BPH tiny homes to increase the value of their investment properties.
Given our conservative growth figures for our first 12 to 24 months, our primary sales effort will be conducted by the founders. To supplement their efforts, we will also be establishing a network of realtors who will serve as our outside sales team to their established client network.
While we are starting in California, we will use this approach across the region and nation as we scale our capacity to satisfy demand.
Plenty of space for Tiny Homes
In Southern California’s Riverside and San Bernardino counties (where Back Porch Homes was founded), there are more than 300,000 single family homes on lots that measure 10,000 square feet or more. (Southern California has nearly 1,000,000.) The photo below illustrates the number of potential parcels in which a Back Porch Homes tiny home on wheels could be installed.
We have big 5-year goals
We set conservative goals that, combined with our sales projections, will ensure we have the capital necessary to scale our manufacturing, marketing and support capacities in line with market demand. Given that we have already achieved our round one goal, we believe we have good reason to be confident in our estimates.
Round 1: $222,500 ($50,000/1%) - COMPLETE
Round 2: $355,000 ($75,000/1%) - COMPLETE
Round 3: $1,070,000 ($100,000/1%)
Over the next 3-5 years Back Porch Homes will utilize its profits and ever-growing cash flow from notes to expand the sales and manufacturing of the organization in pursuit of a billion dollar plus valuation.
By 2025, we anticipate an opportunity for investors to realize a return on their investments through 2 primary exits.
A $100,000,000+ investor buyout
Taking Back Porch Homes public through an initial public offering
Guided by an all-star leadership team
Back Porch Homes understands that delivering an excellent solution to an urgent problem is only part of the success formula. Another critical element is the quality of our leadership team.
Stephen McKee and Todd Bayer are founders of the Inland Empire Real Estate Investment Club (a Meetup.com top 150 supergroup): The largest and top rated real estate investment club in the Inland Empire with over 5000 members.
They are investors and board members of REmarketview.com: The simplest nationwide, point and click, alpha cashflow locating tool.
They are also the founding partners of Community Restoration Group: A joint venture house flipping company completing over $10,000,000 in projects per year.
Former CEO and COO of Rehab Loan Group: A pioneer of safe and innovative hard money loan products.
All of this adds up to nearly 30 years of real estate investing experience between the two of them.
Over the past year the founders have brought on a veteran team of experienced specialists in Government Relations, Sales, Manufacturing, Branding and Marketing to accelerate the pace of the company’s growth. It truly is the dream team made up of the region’s best and brightest.