Why I Love ADU Contracting Businesses

ADU Contracting, I love this space. If you're in California, if you're in Washington, even Texas is doing some of this stuff now. They passed what's called SB9 here in California. This is going to be a catalyst for the market. I had Eric Escobar, friend of mine up in la, came and spoke at the Vegas event. ADU Contracting is just crazy. You can now build up to 1200 square foot on your property in California and you can zero lot line that property and sell it off if you want. In my market, where I live, 9200-901-192088. These zip codes over here, if you were to build one and lease one out in these beasts, the beach coastal communities, you can expect somewhere between four and $8,000 a month in rent. And so imagine building a house in your backyard and renting it like it is absolutely going to change because San Diego market is so underbuilt. We're about 12,000 units short in the San Diego market and the building restrictions are very, very tough. Well, now they just passed this ADU rules and I think this ADU market's just going to absolutely explode. What Eric has been doing is been doing garage conversions. And so he deals in Downey and there's three little cities right there. And it's mostly Hispanic and Asian families. And he tells me, Kyle, you know, they're never gonna put their parents in. It's just the culture. They're never gonna put their parents in an assisted living facility. So instead what they do is they take their two car garage, 488 square feet, and they convert that and mom, dad, grandma, grandpa, come live, come live with them at some point. And it's just, it's culture. And so we're doing 10, 15 of those a month. You know, our cost to build is somewhere around 100 bucks a foot to do that. And we're selling garage conversions. So do the math. 488 square foot at 100 bucks is 50 grand. They're selling that between 120 and 150, depending on the finishes and depending on, you know, what they're going to do. So they're doing 10 of those a month. So very, very popular. Now Goldman Sachs just came out with a product that's a renovation product so people can get financing. I'm like, Eric, are you running ads? Are you offering financing to people? Are you doing this? Are you doing that? He's like, no, I'm not doing any of that stuff. And he's doing 10 projects a month. So I really like the ADU space. I think it's going to do well. There's a company called Boxable out of Vegas that is now going public. They've been private raising capital for a long time, but now they're going to go public and they have a backorder, a backorder of like 50,000 units. And it's a $50,000. We drop it on your site. It's completely customizable, it's completely done, turnkey, finished. And so 50,000 people are trying to buy a $50,000, you know, finished adu. I mean, it just tells you how big and explosive the market could potentially be. So I love the ADU space.