Seed Home 2 Enterprise Track

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Summary

The initial idea was that the Enterpise Track would consist of individuals who deliver the Seed Home 2 to the 2000 customers. The Entrepreneurs learn all the OSE principles of collaborative design/build - and then guide customers in their house build.

We are assuming that the house building package will be an irresistable offer - by virtue of ease of build (speed), cost, and quality, breaking the Iron Triangle.

After examining the house delivery, we have observed that we can deliver houses more easily than we thought. The process revolves around - 1. adaptation of package to customer; 2. land acquisition and permits; and the 3. actual build.

The Build Package of Building Package Submission to local officials, as well as drop ship of materials, can be largely automated. FreeCAD automation of the Generic Bills of Materials can be created as part of the Hackathon. The creation of a purchase order involves making an order from a local big box store - with links to specific parts from the Generic Bill of Materials. OSE's value proposition is further to reduce materials cost of the drop ship via bulk pricing. It can be foreseeable that OSE Campuses also serve as warehouse space for materials, supplying local microfactories.

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A lot of the fulfillment of the Seed Home 2 can be automated, and a good support network can be created as in the graphic, so Owner-Builders can succeed.

However, the only problem is that most people will not want to build their own house. Apparently, 7% of all homes were owner-built, and the vast majority is houses built for sale. The 7% are more specifically Armchair Builders - as found on a website of the same name [1] - simply people who serve as their own contractors. 17% were built by contractors - meaning 'owner hires contractor'.

Custom Homes and Spec Homes

The vast majority (74%) are spec homes - speculation homes. Investment homes are homes bought for investment purposes - for rental or resale or both. There is another category than speculation homes: custom homes. [2]. These are 25% of market share. In this model, the 'custom home' appears to be the owner built and contractor built for people who already have land - the 7 and 14 % from the last section. Custom homes tend to be on the high side - not $100-200 as spec homes, but more in the $200-$500/sf. [3].

OSE/OBI is offering a breakthrough here. With people securing a $5k parcel of land that

25% is a significant share - and this is the market that the OSE model is aiming to address.