Bob discovered a unique way to transform recycled shipping containers into profitable ventures. Starting with an investment of just $3,500 per container, he managed to resell them for $35,000 in just three weeks. His innovative approach has led to a thriving business that earned $1.5 million in its first year and is projected to reach $15 million this year.
In this episode of Main Street Millionaire, Bob shares his strategies for turning old containers into homes, bars, and kitchens. He outlines how new containers imported into the U.S. are repurposed for various uses. His methods include fast construction times and lower costs compared to traditional buildings. Financing options and commercial loans also make these container homes accessible for many people.
Key Takeaways
- Bob transformed old shipping containers into profitable businesses.
- His company offers fast, cost-efficient container conversions for homes and bars.
- Financing options make container homes accessible to more people.
Bob’s Success with Shipping Containers
Bob’s Vision: Bob saw potential in old shipping containers. He started by turning them into profitable ventures. His initial investment was $3,500, which he turned into $35,000 in just three weeks.
Rapid Growth: In his first year, Bob’s business made $1.5 million. Five years later, the business has grown to $15 million.
Types of Conversions:
- Container bars
- Kitchens
- Walk-in coolers
- Homes
Benefits:
- Cost: About a third of traditional construction.
- Time: Projects are completed in about six weeks.
- Price: A bar with a walk-in cooler costs around $60,000.
Financial Options: Bob offers various financing options, including commercial lines of credit and mortgages. A one-bedroom container home starts around $50,000, while a two-bedroom ranges from $80,000 to $100,000.
Exposure and Sales: Bob’s appearance on Netflix’s show “Queer Eye” boosted sales, resulting in over $2 million in 48 hours.
Logistics: Containers are delivered using trucks and trailers, keeping costs low. This method is similar to how Amazon Prime operates with delivery vans that don’t require high-end licenses.
Operational Efficiency: The company uses a model where builders get paid upon project completion, improving productivity. Inventory is kept low by leveraging big box stores like Home Depot for just-in-time inventory management.
Bob’s success story showcases the potential in creatively repurposing shipping containers, offering a blend of innovation, efficiency, and profitability.
Buy Container Home – Bob’s Containers
Lessons Learned in Container Construction Business
Bob discovered several key lessons while working in the container construction industry.
Speed and Cost Efficiency
Working with new shipping containers has shown significant advantages in both speed and cost. Traditional construction can take months and exceed $100,000, but Bob’s method lowers these barriers. Converting a shipping container takes only weeks and can cost as little as $60,000, including a walk-in fridge and bar setup. Controlling the environment by building offsite allows for faster production and better resource management.
Flexible Financing Options
Offering flexible financing options has been crucial. Mortgaging has emerged as a vital tool, enabling customers to combine land and container homes into affordable housing solutions. This approach makes it possible for people to invest in container homes even with limited initial capital.
Efficient Logistics
Bob leveraged lightweight, less regulated delivery solutions to move containers efficiently. By using pickup trucks and trailers that fall under weight thresholds, his team avoided higher costs and complex regulations associated with heavier trucks. This strategy, labeled the “Amazon Prime loophole,” has been a game-changer, especially in the initial phases of the business.
Aligning Incentives
Ensuring that contractors are paid upon project completion rather than hourly has greatly increased productivity. This system aligns the interests of both the business and the workers, ensuring quicker build times and higher efficiency.
Minimal Inventory Holding
Adopting a just-in-time inventory system has proven beneficial. Bob avoids holding excessive inventory, thus reducing overhead costs. By partnering with large suppliers like Home Depot, the company can rely on their vast procurement resources to keep necessary parts in stock, streamlining operations and inventory management.
