The house that fits in a container and ships anywhere

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The unit

1. What ships in a container
2. Extending it out on site

Inside

1. The kitchen in the centre

Where they are used

1. Leases, and the data centres
2. Rapid deployment
3. What you notice up close

The tax question

1. An argument for material participation

What ships in a container

[music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] >> Woo! >> [music] [music] [music] [music] [music] [music] [music] [music] [music] [music] >> These first three are really from the same generation, Gen 1. >> Go ahead. >> So, this is the farm that Jeremy bought.

That he talked about in his podcast I watched. >> is >> Okay, this is the farm. >> This is >> And that was the working condition or living conditions of the farmers that he wanted to improve. >> Correct.

>> And that's [snorts] what led to this. And that's one of the original house that was there. >> Yeah, so this one's the first one. This one right here is the second.

>> Really? >> And so you've you've noticed, I mean, it used to be fully furnished, but >> Yeah. >> Yeah. >> We've got so many updates to the newer models that are coming out that were we've got to pull these ones off and they'll probably go up there and people live in them, but >> So, tell us again what you were saying there over there that you have how many of these out in the oil fields?

>> So, we've got about 600 of these in West Texas right now. And in West Texas, they rent pretty consistently for about 3,500 a month. >> That's cool. >> FEMA has just made some changes, some pretty big changes.

And um one of somebody that just loves this product and was a consultant to Box House is now uh pretty high level up at FEMA. And so, FEMA is doing a lot of deals where they're helping out, you know, countries overseas. >> Mhm. >> So, a lot of these are probably going to wind up overseas very, very soon.

And it's all paid for by FEMA. >> That's pretty cool. So, this is Gen 1, huh? >> This is Gen 1 and you can see um kind of where it unfolds in the corner.

>> Yeah. >> Yeah. And then >> [snorts] >> we've got you know, all the electrical is exposed. >> Or >> Um in the newer models, you'll be able to see there's no exposed electrical.

There's about cost about 20 million bucks in R&D just to figure out how to get this inside the walls. And fold. >> And fold. >> And fold.

>> And fold. >> And fold. >> And so, this is probably a a fairly easy unit to show how it actually folds up. People always ask.

>> Yeah. >> Um You can kind of see the fold lines right here. So, we always get asked, "Where do the cabinets go?" And then and then where does it fold? >> Yeah.

>> And so, cabinets are going to go inside the unit right through here. >> Okay. >> Um obviously, the bathroom's in the center right here. >> Cool.

>> And then um and then the the the floor folds up. >> Okay. >> The the walls fold fold in. and >> then and then the roof comes down and it's the outer shell.

And so when we first started doing these, it would take a lot of a lot of manpower just to get one of these set up because I mean, take a few guys just to push the roof up and hold it getting in place. And so Boxx Houses now created their own their own tools to where there's just machines that pull these up and they're super easy to transport. They actually transport with the units and two people can set up one of these in in under 4 hours. Wow, that's really cool.

Couple of questions that we get asked often is what about foundations? And this is a really good one to show. They they can go on foundation. California always requires them on foundation.

We've created this earth screw. It's a big metal screw about this big. And it just drills down into the ground and then the feet screw into that. And even California's like, yep, we'll consider that foundation.

And so but for for most most places and most use cases, they don't care if it's on foundation. It doesn't need to be. And so these are you know, $20 blocks from Home Depot and you can see how the foot is set on there. The other thing is they've got to be super sturdy to to withhold but to withstand harsh conditions.

They're they're made out of steel about as sturdy as it gets. But the other thing is those those feet extend out numerous feet. And so if you're if you're in a position where maybe there's you know, a grade

Extending it out on site

a pretty significant grade and it still needs to go on the land to level it out, they'll just utilize the feet to extend it out and get it to where the units actually level and they don't need to make any updates to the land. >> So okay, so this is our video cuz this is cool. >> This one this one's always a favorite of folks. Uh if you bring if you bring kids in the first thing they want to do is they're looking up here what's up there and you grab this little remote right here.

You've got an upstairs. >> You've got a circle. So sick. >> [laughter] >> It doesn't matter.

>> That is cool. >> So you could you know, you could fit a couple of bunk beds up here. So for for a family um you know, if you just lost everything a hotel room's not ideal. >> Yeah.

>> And I'd say this is probably better than a hotel room. >> Yeah. >> So we've got we've got all this. Another thing we get asked about a lot is what happens if you know, let's say these go to a workforce housing um situation.

So a lot of them will with the data centers and everything else here being built out in rural communities. Um you know, workers can be tough on stuff. So it's like what happened if my unit gets damaged? Well, it's going to be pretty tough for somebody to damage the the exterior of one of these.

Like I I don't think we can find somebody to punch a hole through that. >> Yeah. >> And then for the cabinets, these are all these are all you know, pretty easily mass produced. They are mass produced.

>> Sweet. >> And so let's say somebody broke you know, this whole side of the cabinet. Very inexpensive and very quick to come in and just throw a new set of cabinets in. >> That's cool.

>> Um there's a lot of neat stuff that gets produced with these just to fit different um use cases. Obviously this one has an office back here. >> Can you talk about how this one folds? >> Uh [laughter] I know that it goes in a shipping container.

Um this one's a little bit harder to talk about and or or to to kind of figure out both. One thing I want to say on this, this unit we still have exposed electrical. >> Yes. >> It looks a lot better than the Gen 1, but it's still exposed.

Our newest version of this is not. Um but on this one, you can't really see the lines where it where it all has has come together. It just looks like it's been here forever. And same thing if you look at the floor, there's no or in the floor where you can see that this has been has been um un quartered.

>> And they come furnished though with the beds and everything, some of them. >> So, they come with um with washer dryer appliances, everything else. The furniture is all it's all furniture packages that Ready Pod has that just go along with the lease. And so, the buyers on these don't need to worry about furniture at all.

It's just a part of the lease negotiation that Ready Pod takes care of. >> That makes sense. >> The newest version of this is actually uh twice as long and wider. And it's got uh three bedrooms in it.

It's got an upstairs spiral staircase. So, it's more of like um you know, if you wanted to purchase a house cuz you got 20 acres somewhere and you want to put a house on it, you could order one of these, but this unit currently is not being sold. >> That makes sense. >> The next two that we'll look at are going to be um the current bungalow, the studio type bungalow.

And then we'll look at the the multiple bedroom. And then and then we'll look at the duplex as well. So, this is current model bungalow. Oh, that's that one gets loose.

Right, twist to the left. Did they get a flyer out here? >> This is the current bungalow. >> No, I didn't get a flyer.

>> And keep in mind, this unit that we just looked at, the uh the loft, >> I'm going to go back to this way. >> Okay. well as this bungalow and then the next unit that we looked at are essentially off-grid power, but everything is still working right now. So, we'll be able to show you how we then I would have tied all together.

But this is a

The kitchen in the centre

our current model bungalow. Again, this is going to be another one where it ships cabinets and everything in the center of the unit. You'll notice here we still there's no exposed fold lines. And in a in a rapid deployment situation, it would look just like this.

There's not going to be any exposed fold lines. The fork can come back out when they go to pull it out and reuse it again. And then on this one, you'll notice all the electrical is now is now inside the wall. >> How they maximize and optimize the space is >> Well, and like even like the quartz countertops and stuff, it's not like we're talking for mica.

>> It's like you probably with like soft closed drawers and everything. Still good. Really good. Fancy.

>> So, this one is the Murphy bed that we were looking for. >> Yes. The workout room converted to a Murphy bed. >> Yoga room converted to Murphy bed.

>> That's cool. That's very cool. >> So, this will just pull down and throw a mattress on [clears throat] here. And you've got another place for >> another sleeping >> couple kids to sleep.

>> Or another adult. >> That's cool. Workout room inspired by Kason's gym client. All right, that's how you get those guns.

Just buy one of these and then we'll give [laughter] you one of mine and Kason's workout program for free. >> One thing to point out as well, you you've been in these units when it's 110 down here and just hot as can be. >> Pretty insane. >> Um today's a little bit cooler for Southern Utah, um but still these all of these units like you can walk in here at midsummer 110° we're in the desert.

>> Yeah. >> And it is just nice and cool all day long. Like they're extremely efficient with with heat and air and everything else, so. >> It's also impressive to me how like we've all been camping inside of a trailer.

I think people think that these are going to be like a trailer. >> Yeah. >> Listen to the wind outside right now. You feel like you're in a house.

>> Yeah. >> Yeah. >> It is loud. The wind is loud.

>> is loud when we step outside. It is quiet in here. >> You don't feel like you're in a camper, >> That's true. >> Yeah, we were sleeping in a camper two nights ago and not last night.

No, two nights ago and it was blowing so bad the whole thing you were just like yeah. >> And it wasn't even blowing this hard. >> No, it wasn't even blowing this hard and this is like quiet as can be. >> Yeah, it's pretty cool.

>> Yeah. >> They've also um we've also done some things with the furniture. This is the the part of the types of furniture packages that will go along with the units, but you know, one thing is is storage and so we've been able to create furniture for this that >> Oh, that's good. >> storage underneath it.

Some of them it's a bed instead of storage. >> That's cool. >> It just gives people places to put stuff. >> Do they use the shipping containers that these are shipped in for storage as well?

>> Um they can. They can. So um it that will likely happen in rapid deployment situations is that the shipping containers be utilized for storage. >> Mhm.

And these are made out of material on the outside to be reused over and over if you needed to. You just have to do a refresh on the inside, right? >> Yeah. And so and that's all a part of the leases that Ready Pod does.

There will be, you know, regular quarterly inspections on all the units that Ready Pod will go out to. Obviously we've got there's owners of these units that we have to protect and so in in these scenarios Ready Pod is responsible to the owner to keep the unit in good working condition and then when they negotiate the lease they pass that responsibility off to whoever leases the unit. So again, if they come in if they come in and do an inspection, it's been leased out for 6 months when they walk in and you know, this cabinet door's been ripped off, you're just going to put new cabinets in and and going they'll be updated pretty much every every go around. >> Group.

That's cool. >> What we found is that the lengths of leases that are needed on these are actually longer than we expected them to be. Um, you know, [snorts] for for

Leases, and the data centres

example, there's a country overseas that needs about 600 units right now and they need them for 7 years. No lease. So, >> and then on the the data centers, we're we're talking about, you know, there's 3,000 data centers that need to be built in the US over the next 10 years. Pretty much all the land is already purchased um and almost all of them are in rural communities.

So, there's one that's about to go in in Delta, Utah. The biggest hold up that they have with that is they can't get permits so they can provide they can provide housing for the workers. Well, it takes 3,500 to 4,500 workers to build this data center. >> Hey.

>> And Delta, Utah has a population of 3,200 people. And then in in 5 to 7 years when the project's done, it takes a fraction of that to run that data center. >> Right. >> And so, either you you hurt local economies by eating up all the hotel rooms in the area, you trash the town by bringing in, you know, a bunch of different RVs and having people in and out um or you create housing communities that will last 5 to 7 years and is a much more sensible option for people that they can just come move right in.

Um but again, those are 5 to 7-year projects. >> That's something I was like thinking of cuz that other data center they're putting up in northern Utah. Was that 40,000 square >> Yep. >> acres or something like that?

40,000 acres. >> Yeah. >> Something like that. 40,000 acres and it was going to take like 10 years to build.

>> Yeah. >> I mean, it's massive. >> Right. >> And then, but once it's built, you don't need that many workers.

>> Correct. >> So, it's just more of a temporary solution while they're building it. >> Right. If you guys were to try to build 500 stick-built houses or more than that, whatever the number is, >> Yeah.

>> I mean, you destroyed that community in in 10 years when everybody's out. >> Yeah. >> So, interesting. Notice on this one, this is another one where like this thing is as sturdy as can be, >> Yeah.

>> but we're just sitting on Home Depot blocks. >> Wow. >> So, this is a two-model duplex. And this, all of this uh finish on here, like this, this can all be put on, I mean, in 20, 30 minutes.

>> Wow. >> And it stays on there, so it looks like a house in in the community. It's very nice. When they when they when they go to take this unit down for its next deployment, all of this just pulls right off, and it can be reused again.

And then it I mean, if it was destroyed, it's very inexpensive materials that it's built of. So, this side is set up just as kind of a a bunk room. And that side is just kind of flipped. >> Flip what?

>> And this is designed for more of like one person or a couple, and then you got another completely opposite over here. >> Correct. >> So, work two workers or something like that, unrelated. >> Yeah.

>> Three workers. Look at the bunk beds. >> Yeah, the bunk beds. >> The boys are getting cozy.

It is what it is. >> Yeah. >> And they got to cram them in. I mean, we we learned a lot being in West Texas in the oil fields.

Um those man camps, they a lot of them are getting per diem, and and they want to send as much per diem home to their family as they possibly can. So, they've got these these, you know, these little huts out there in these man camps that are completely run down and destroyed. >> Yeah. >> And um they'll they'll cram two or four of them in it.

>> Really? >> Just to just save more money. It's crazy. The oil companies down in Texas love us because, you know, the the folks that work out there, they're typically two or three weeks on and then they, you know, have a couple weeks off.

And they're working really hard every day, but they're typically in a in a rush to get home to their wives. >> Yeah. >> Or husbands or whatever. Yeah.

Um the the the the spouses wouldn't stay in the man camps, but they'll stay in these. And so a lot of them, if their kids are already out of the house, they don't have kids, they're bringing their spouse with them, they're not in such a rush to get home. >>

Rapid deployment

That's cool. That's cool. >> So again, kind of kind of same similar setup, just move things out just a little bit on this. >> Mhm.

>> These ones are are really good for rapid deployment because you can have, you know, multiple people on each side. But also on the the units that we've looked at, the cabinets are not installed when they're shipped. They're just shipped in the middle. And they install very quickly and they're efficient.

But with these, this thing unfolds, cabinets already set up, refrigerator's already sitting in its spot, everything's ready to go. They stick some furniture in here and it's good. >> Really? And how fast did you say you can set these up?

>> These ones set up in a couple hours. >> Wow. That's impressive. >> On this um if anybody's stayed in an RV before, you know, some of the smaller ones, your your toilet is in the shower, which can be a little bit uncomfortable.

And so what we've done with these to utilize the get the best use out of the space, you'll look, you've got your bathroom right here. You've got some shelving for storage. And then this which just pops closed to lock off your bathroom. And now you've got the same space that becomes your shower, but it's separated.

And then all of the drainage is just built into these these four tiles. It just goes right down. >> So, you said that's patented, but >> Yes, that is patented. >> That's cool.

>> So, another thing that's patented Um Boxabl is the only company that can ship and store a home inside of a shipping container. >> The The whole thing's patented. >> Correct. >> That's cool.

>> Well, that's really cool. >> Two of these, including the duplex, can fit in one shipping container. >> Wow. >> So, we can get three of them on a truck, essentially.

>> Wow. >> So, this is our newest model of bungalow. This is a multiple bedroom bungalow. And the the the This is the first first version of this that we've got here.

Um we were able to make a couple of updates on this to where now we've actually got an extra foot on each side of this unit. But, we're we're we're proud of this unit, for sure. Um Got some good stuff. So, we've got a two-bedroom here.

The first thing I'll show you is this this kitchen. >> I like this nice kitchen. >> Two beds. We've got in here, obviously, you know, really nice gas appliances.

>> Wow. >> Um we've got a dishwasher. >> Good. >> Oven, stove, and then on this side, this unit right here is washer dryer.

>> Wow. >> So, with this unit, it comes with dishwasher, clothes washer, clothes dryer, um and and >> This is a washer and dryer, it's like >> Correct. >> Didn't even notice that. That's at the top.

>> Bedroom one. >> That's cool. >> Well, we've got cabinets in here for storage. >> I believe it.

>> And then this is bedroom two, and again, on this side of the wall for storage. >> Good. >> That's cool. >> All of these units can be um they can be completely off-grid.

Um where we we've been able to utilize storage tanks um for black water, gray water, all of that. And then and then um originally it would it was uh generators that would power these. >> Mhm. >> Um obviously generators eat up fuel, they're not quite as efficient, and so we've got a new product that we build um that will both work for powering these units, but also to bring power to, you know, large construction projects when they need them.

Um and I'll show you guys that. If you if you guys ever have clients that want to come down here like we're we're we're good with it. We have clients coming all the time. >> That'd be fun.

>> Yeah, Mike's here from New York. >> Oh, really? >> He flew up from New York. >> of New York?

>> Uh I live in the Hudson Valley, about an hour north of the city. >> Okay, so Boxabl's headquarters is in 30 Rock. >> Oh, really? >> Yeah, in Manhattan.

>> Yeah, you could have got >> [laughter] >> Why did I come here? The weather's better here. >> Well, that's true. That's true.

>> Yeah. I haven't found anybody but us that has a unit one we've got the patent to ship inside of a shipping container. >> Mhm. >> Um but we're the only ones that have a unit that has a kitchen and bathroom in it.

Um most of the

What you notice up close

stuff that FEMA's used for for disaster in the past are these things called FEMA trailers, and if you just Google build a FEMA trailers, um you'll you'll notice they're these kind of run-down trailers, but they the government pays 200 grand for them, and they have a 2-year shelf life, they're one-time use only. So, 200 grand, they use it for 5 weeks, it's done, never gets used again. And um they're not nearly this nice. And so they there's there's companies that have been trying to build things for years, but most of them are going to be like an actual shipping container that has a bunk bed set up in it and a desk.

There's no kitchen or bathroom. And then there's also a lot of tents that are that are, you know, fairly large, sturdy tents, but again, no kitchen or bathroom. You couldn't put a family or somebody in there for for for a couple of years and have them be comfortable living in the body. >> But one of the question questions that we get all the time is evaluation of these box houses.

Correct me if I'm wrong, but there's a couple of ways to value them, right? >> Correct. >> As far as the IRS goes. We all know that the IRS likes to pay more for things.

But there's also But there's also a way to value them more as like a business based on cash flow. Is that correct? >> Correct. Yeah, so we have multiple uh third-party valuations on these units um that are they're they can value them off of cash flow, and they can also take a look at at um you know, essentially if the IRS wanted to challenge us, they'd have to come back and say, you know, we don't think it's worth this and we think it's worth this.

They have to give a number and this is why. >> Mhm. >> Well, their FEMA trailers um can't last 30 years and be deployed numerous times. And so we can't really If you're paying 200 for that and it's a 2-year shelf life and this can last 30 years, what's this worth?

>> Mhm. >> And then in Maui, the government's actually paying 800 grand to get tiny homes over there right now that's an inferior product to ours. And so if they wanted to argue, it's like, well, you guys are paying 800 for a product that's inferior to ours. And so you can value it based off of other things that are being utilized for that use case that the government's already utilizing in in other, you know, workforce housing communities.

Um or you can value it based off of cash flow. On both sides of that equation, um, we pencil out really, really well. >> Hm, that's cool. >> So, that's cool.

>> Okay, you guys want to check out where all the R&D happens? >> Yes. >> [clears throat] >> So, this is all R&D in here. >> Anything Anything that you've seen that gets built, whether it's houses, pods, it all gets built here.

>> Hey, nothing, bro. >> [laughter] >> Tell me that automatically. >> So, you're uh So, this is the Boxabl kind of Where Where did you say the headquarters was? In New York?

>> Yeah, it's in 30 Rock in in Manhattan. Yeah, we've got quite a bit of office employees here in kind of downtown St. George, and then there's an office in Austin that's got quite a few. Um, and then and then 30 Rock, there's there's quite a few as well.

>> Ready Pod would be like the almost like an Airbnb manager. They're the ones managing it, right? Deploying it, managing it, maintaining it, the whole nine yards. Then you've got Boxabl, which is the product, the manufacturing side.

Then tell us a little bit about Highland Steel. >> We're essentially the ones that My My background for the last decade I've owned and operated a tax and accounting firm. Um, pretty pretty good-sized national tax and accounting firm. I'm not an accountant.

I've never touched a tax return. My partner is a CPA, and I I think Caden would second he's probably the most conservative CPA that I've ever met. And, um, all of our clients were high income, high net worth. And so, we were always had a need for advanced tax strategies for our own clients.

And I just couldn't get my partner to to sign off on anything. It was like I'd take one to him, and I'd think, "Hey, I think this is going to be a good deal." And we had one rule, if Devin can poke a hole, so can the IRS, so we

An argument for material participation

don't offer to our clients, and we could never find something. He'd always come back to me like, "Okay, this one, there's no real argument for material participation that's going to work. The IRS isn't going to buy it that this pre-made logbook that they signed initials on, you know, that they really participated or other ones you'd be like, there's there's literally nobody benefits here but the taxpayer. Like, IRS is not going to like this.

And so, when when I came in contact with Box House and figured out what the use case was, it's like, okay, what's the tax code really meant for? It's meant to stimulate parts of the economy that the government wants to encourage to incentivize. >> Yeah. >> And here's something that that serves a huge purpose and a huge need in society and there's nothing else like it.

This This This might work. And so, we're the ones that set that up, kind of designed it, and then and then we take care of distribution. So, 100% of the Box Houses that get sold get sold through Highland Steel. >> Got you.

>> And we we manage the client relationship on the back end. Make sure we're taking care of everybody. >> I think this is helpful for people to just see that it's not uh I mean, we For my clients, they meet us on the internet, right? And so, they're like, is this legit?

Like, does this even exist? You know? So, just being down here and walking through these houses, that's what we wanted to see just so that we can show people, "Hey, this is a real deal, you know?" And there's And I do like what you said about the use case. Like, there are some tax strategies that there's really nothing but a tax benefit to them, no other real benefits.

This is like, you're helping with the housing situation in a lot of these areas, right? The data centers, the disasters, like, all the disaster areas, all that is very >> Absolutely. >> very legit. >> Yep.

>> And then, there's also just a lot of different, you know, scenarios where you can see how the government would encourage something like this. >> Yeah. >> And then, contract-wise, it's just a matter of finding the right contract to deploy hundreds of Boxabl's at a time, basically. >> Yep.

>> Yep. >> When you look at like what the government's done in the past, you look at which is is really why Boxabl made the decision decision to transition from, you know, just all workforce housing in oil fields to disaster relief is Hurricane Helene happened and they're shipping families as far as Texas to get a roof over their heads. So, you got to think you know, I was reading stories like there was one of this this couple that had just made their last mortgage payment and retired. And 2 weeks later, Hurricane Helene comes in, destroys the house they just paid off.

>> Ooh, wow. >> And closest place they can find them housing is Texas. >> Wow. >> And in Hawaii, over 2,200 structures were destroyed, most of them being homes well over 2 years ago.

As of August of last year, which was past the 2-year mark, 45 houses have been rebuilt. That was [music] it. And >> How much time has passed? >> Yeah.

Doesn't look much different. >> Yeah, it didn't. >> We were there right after the fires. We went there right after the fires.

Our Uber drivers and stuff were telling us stories about being down on the ocean trying to catch breath and then the waves were coming in. I mean, it was intense. And then yeah, we were just there recently and hasn't changed much. >> There's a definite need here.

I guess Highland still an easier way to put it is is we we pair the homes with with the with the investor, the person that's buying them. And then and then once we've done that, they the homes go to Ready Pod and think of Ready Pod as being Airbnb, but for for rapid deployment. So, their job is And these And these are three totally different companies, Boxabl, Highland Steel, Ready Pod. Their Ready Pod's job is to manage these units.

They negotiate all the leases. They're the ones that are setting up logistics and getting the units to where they need to go. They're the ones that will be doing all of the site visits when they go in there, you know, every every few months to check on the condition of the units. That's Ready Pad's job.

They're the ones that collect all the rental income that comes in and then disperse it back out. >> They're your property manager. >> Yeah, right. >> That's big.

>> That's really cool. >> Thanks for taking your time. >> Thank you.