Should residential hard money lenders get involved with ‘tiny houses’?

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Should residential hard money lenders get involved with ‘tiny houses’?

Arizona Home Loan Staff Level 4 Funding Mortgage BrokersRecently, there has been a boom of people that want mobility to coincide with their dream home. However, instead of purchasing a mobile home or RV, they have opted to scale down regular homes and place them on a trailer. Yes, people, we are talking about the tiny home fad that is carving a new lane in the real estate market. With their popularity increasing should residential hard money lenders look to invest in the tiny house market?

So, what is a tiny house? Well, a tiny house is defined by a home that is roughly 100 to 400 square feet. The typical weight for a tiny house is around 10,000 to 17,000 pounds. The home can be stationary or mobile as needed by the buyer. Most of the homes are built as backyard projects, but there are many homes that are prebuilt and ready to move in. Some can come with the bare essentials, such as a loft area, kitchen and storage. While others can be extremely extravagant with multiple live areas and a nice sized bathroom.

The allure of owning a tiny house is different for everyone, for many, it is the sense of adventure that awaits. Having a tiny home allows you to travel as much as you want and still be able to “come home,” each day. So, should residential hard money lenders get involved? The quick and dirty answer to that is, yes.

Many people are opting out of having a permanent home. Most tiny home buyers choose a minimalist lifestyle where they are able to live almost debt-free. Since they do not want to have a large financial footprint most likely you will receive your money back quickly. This is perfect for residential hard money lenders, instead of waiting in between regular investments you could potentially gain a handful of these micro investments.

So, how do you build a market for something like this?

This is a very easy answer: social media. Many people that are looking to take on the tiny home life are extremely active on social media. Whether it be Instagram or Pinterest as long as you have the right hashtag you will have clients. If you take a closer look at the tiny home demographics you will find that a large portion of buyers are seniors. After you have fully exhausted all the typical “millennial” sites try finding places that cater to the older community. For example, when most people get older they want to travel, but they still want to have a cozy home. Tiny homes are the answer for those trips to the Grand Canyon or Yellowstone.

The possibilities are endless when you are investing in tiny homes

Is it a radical idea to take on this kind of investment? Maybe, but the payoff could potentially be worth a lot of money. Instead of worrying about the four bedrooms, two and a half bathrooms turning for a quick profit; instead, you could issue a loan for an 800-square foot tiny house. Grow your business by going tiny.


Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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