Guest Post: 5 Ways To Find Money To Help Your Build

This month we are featuring a guest post by Andrew Odom, founder of Tiny r(E)volution. The tiny house movement is filled with wonderful souls and Andrew is one of them. We connected on social media a few months ago and it feels like we've already met. That's the power of the web, my friends.

I asked Andrew to help us begin our tiny house project. I told him that we were struggling to get started as financials are always tight. Since he has a wealth of knowledge from formerly living in his own self-built tiny house, I thought he'd be the perfect expert to give readers a realistic outlook at how a couple like us can get "rolling."


Have you ever looked up quotes about money and saving money? Most of them read like poor advice from someone who falls into one of two categories. The first category is ‘People Who Save Money To Sit On It.' The second category is ‘People Who Save Money Because They Fear Losing Their Job One Day.’ Nowhere is there a witty quote by someone who saves money because they grew up understanding that need is not the same as want and two pennies earned can easily be a penny saved. Why all this talk about money though? Isn’t this a blog about building a tiny house? Aren’t tiny houses cheap to build?

Tiny House Myth #1

Building a tiny house is cheap. According to The Tiny Life report (2013), the average cost to build a tiny house is $23,000 if built by the owner. This figure does not include the cost of the trailer though.

So with this figure in mind how does one continue to meet monthly financial obligations (rent, utilities, groceries, etc.) during the build while building the tiny house? It is a daunting thought. It is actually akin to running two households for an extended amount of time. There has to be a way though. Good news. There are. In fact, below are:

5 Ways To Find Money To Help Your Build

  1. Define your budget a minimum of six months prior to building.
    Perhaps one of the first mistakes made by someone building a tiny house is lack of preparation. Unless you are independently wealthy or have secured some sort of creative financing, the build is being financed by you. So give yourself time to accumulate build funds. The trailer is the first purchase and perhaps the largest. That should also be the first line item on your budget. Decide what utility trailer you want to purchase, work out a contract with the manufacturer (this will contractually secure a price) and save the money. Now I can’t tell you how to save the money because that is dependent on your personal expenses. But don’t start your tiny house out by credit card or trailer financing. Start out like you can hold out. Go cash-on-the-barrel from the get go. Then continue on focusing on sections. Your second line item should be the drying in stage of your tiny house. Continue through your build making small financial goals that are clearly defined. Then work towards them.

  2. Salvage always.
    It is never too early to start gathering materials. I am not talking about purchasing materials but rather salvaging them or reclaiming them. While you are in that pre-build phase stop at every wood pile you see, every construction zone you pass, and every FREE MATERIALS posting you fine. Look at it like this. Every 8’ long 2’x4’ you are able to reclaim is a minimum of $2.11 back in your pocket come build time!

  3. Develop partnerships.
    It is no secret that our tiny house build was made possible through several partnerships. Please note. This is NOT free money. A partnership is a mutually beneficial relationship between two entities. I spent a lot of time approaching sponsors and talking to them about how they could help me and how I could help them. Some signed on and others passed. But for every item donated my wife and I were able to save a little money on materials and in return help a company out that we believed in and believed in their product.

  4. Consign/Sell/Trade It.
    Part of transitioning to the tiny house life is downsizing. Before going tiny many of us occupy much larger houses and have the stuff to prove it. So why not kill two birds with one stone. Gather up the items you are ready to part with and sell them, consign them, or trade them. If you sell them in some way earmark that money for your tiny house build ONLY. If you have things like tools, technology, or cookware, consider bartering or trading them for tools you may really need for the build or building materials, etc. You would be surprised how many folks have been wanting to give away that old pocket door in their attic and have also always wanted a stereophonic album of Led Zeppelin Live At The Fillmore!

  5. Just Ask.
    While it seems a lot of people talk about their friends and family not supporting their desire to go tiny a lot of folks have a large support group. Humble yourself and ask them for help. Perhaps your uncle has some old wood he might consider donating. ASK! Maybe you have siblings who each year give you an Olive Garden gift card at Christmas. Ask them to switch up to Home Depot or Menards this year. Heck, don’t be afraid to start a “registry” at a home improvement or big box hardware store and tactfully share it with your parents, aunts and uncles, and even friends. You’d be surprised how many people get a kick out of seeing others achieve their dreams.

Photo Credit: Susy Morris (chiotsrun.com)

Funding a tiny house build is not easy. Like everything in this world it costs money and that isn’t always readily available. But don’t become discouraged. Be creative! Never pass up a penny in a parking lot and never be afraid to ask the contractor down the street if he minds you picking through his dumpster!


Author & photographer: Andrew Odom

Founder of Tiny r(E)volution and author of the popular book ‘Your Message Here: GAINING CORPORATE SPONSORS for your tiny house project’, Andrew Odom is a social media strategist and content crusader amongst other things. He is also an accomplished photojournalist with work seen in Details, Relevant, South, Kitchen Drawer and Tiny House Magazine(s). His proudest accomplishment however is his long-time adoption of and current advocacy of the tiny house/small house/unconventional house community as a designer, builder, dweller and speaker. Having recently sold their 240 sq. ft. tiny house Andrew and his wife (as well as his 3-year old daughter) live and travel in a 27’ Aruba travel trailer.

Step 2: Find Tiny House Land

I've been s.l.a.c.k.i.n.g on the blog posts lately. There's no excuses, but there are reasons nonetheless.

Have you ever felt a little like you're in between a rock and a hard place? In some ways, it's a good place to be because it means you're being challenged and when you come out of it, you will certainly feel better than you did being in it. There's more freedom in this spot, even though it can cause anxiety and stress.

So what am I talking about here? In a previous blog post, I wrote about how we're in the middle of designing our tiny house. But now a question looms over our heads. Where are we going to build it?

Surely, most tiny house builders face this same dilemma.

We can either build it on the land we're renting now or we can buy our own land and build it there.

Option 1: Build It Where We Currently Live

This seems like the go-to choice, right?

Pros

  • We could stay where we are.
  • We wouldn't be spending more money than it would cost to build our tiny house.

Cons

  • Tiny houses take up space and that's just what we'd be doing in our current spot.
  • Due to the proximately of where we'd be building it in relation to the street, the project could draw attention from neighbors and the city. The last thing we would want would be to get kicked out of our beautiful spot because of ...
  • Building codes and zoning laws.

Option 2: Buy some land

Pros

  • It would be our land. We could do what we want!
  • If the land came with an existing house, we could rent it out and make some money while we live in the backyard.

Cons

  • This would be a big investment (now we're investing in land, possibly an existing house and a tiny house).
  • If this land had an existing house, our renters might not be cool with their landlords living in the backyard.
  • Finding land with a great view and in a good location for an inexpensive price ... not so easy.
  • If the land didn't have an existing structure, we could be asked to leave because of ...
  • Building codes and zoning laws.

Building Codes and Zoning Laws

As you can see, there's a common theme here.

Recently, I got off the phone with my friend who lives in California. When I told him that most cities have a minimum square footage requirement, he thought it was a bunch of bogus. He just couldn't believe that cities have the power to restrict things like building size and what type of structure you can live in.

But the fact is, every municipality in the U.S. has a building code that provides minimum standards for constructing houses.

I found this little tidbit on Wikipedia:

The purpose of building codes are to provide minimum standards for safety, health, and general welfare including structural integrity, mechanical integrity (including sanitation, water supply, light, and ventilation), means of egress, fire prevention and control, and energy conservation.

I had to laugh, because frankly, the last thingenergy conservationis what most of the tiny house community is focused on. We're a community that cares about using recycled and salvaged materials in the construction process, maximizing southern sun exposure and limiting our waste (by using composting toilets). We have a deep appreciation for nature because we have less space indoors.

So what are some of these building codes and zoning laws?

Zoning laws require most houses to be at least 500 square feet. In some municipalities, there are rules that a bedroom must have a closet, which many lofts don't have. And in a lot of cities, people can't live in trailers or RVs, and tiny houses are considered RVs ... so there goes that idea.

Good News

A few cities have been able to change their zoning laws. According to the city of Portland's website, you can list them as "accessory units." In northwest Texas, Spur became the first "tiny house friendly" town in the U.S., with no minimum size requirement for homes on foundations. Walsenburg, Colorado recently amended their zoning to allow for tiny homes on foundations, too.

Several states have tiny house villages or ecovillages. Check to see if your state has one. Tiny houses are gaining acceptance in RV parks, but keep in mind that these lots sometimes close for the winter and will have a maximum stay requirement.

So there you have it! We're fighting the good fight and will be making a BIG decision on where to put our SMALL house.