The facts about US housing prices are in, and they are alarming. Housing prices have gone up dramatically in recent years, and an average paycheck is rarely enough to pay the rent. Buying property is completely out of the question for many people, and there is no relief in sight.
Boxabl founder Galiano Tiramani and his father, Paolo Tiramani, saw the problem, and they decided to take action. Their out-of-the-box thinking led to an idea for houses in a box, and in 2017, Boxabl was born.
Galiano Tiramani said, “I can’t think of a larger market to disrupt or a product with a bigger potential upside. We can change housing on a scale the world has never seen.”
What exactly does Boxabl do, and how could it disrupt the housing industry? Is Boxabl a smart investment? If so, investors want to know how to buy Boxabl stock.
What Does Boxabl Do?
The fundamental concept behind Boxabl was inspired by the automotive factories that mass produce vehicles – sometimes as quickly as one every minute. And cars and trucks aren’t the only product that is mass-produced. There are factories and assembly lines for everything from food to electronics, which got the Tiramanis thinking. What if housing was also mass-produced?
After some trial and error, the Boxabl founders developed a method for mass-producing high-quality homes at a price that is more affordable than real estate in the average US city. So far, Boxabl has two factories in operation, and both use automated technology to fabricate ready-to-assemble homes.
Boxabl homes are essentially modular rooms that fit together once they arrive on-site. Eventually, there will be a variety of floor plans so that consumers can customize their homes to their exact specifications before buying. Beyond that, the goal is to offer Boxabl rooms that work like Legos – it will be possible to stack and configure rooms in every way imaginable. Buyers will have the freedom to create anything, from tiny homes to large apartment buildings.
Boxabl already has one product on the market – the Casita – which is a compact 361 square feet of living space that includes a full-size bathroom, as well as a kitchen and appliances. A particularly popular feature of the Casita is its tall ceilings and extra-large windows. Boxabl-trained contractors can generally put the pieces together on-site in about an hour. Note: this does not include site preparation, utility connections, and so forth. The target price for Casitas is about $50,000.
These homes are built from high-quality materials, including steel, EPS foam, and concrete. The structurally laminated panels that are used for the roof, floor, and walls are stronger than materials used in most buildings, and they can withstand snow load and hurricane-force winds. They are fire-resistant, mold-resistant, and because there is no sheetrock or lumber, they are far less likely to be damaged in a flood. Best of all – Boxabl homes can be shipped anywhere in the world.
Boxabl has already produced more than 300 Casitas, and there are in excess of 160,000 names on the waiting list. Filling those orders would generate as much as $9 billion in revenue – and Boxabl is ready to get started. The next step is a third factory – this time, on a massive scale. Boxabl has named it the Boxzilla Factory. The company will break ground for Boxzilla once it reaches its goal of $1 billion in new investments.
All of that sounds exciting, and plenty of investors are ready to sign up. There’s a problem, though. A search for “how to buy Boxabl stock” doesn’t yield results. How can that be?
Is Boxabl Publicly Traded?
Boxabl stock is not publicly traded, though it has clearly stated it expects to be listed on an exchange at some point. Specifically, the Boxabl site says, “In the future we intend to go public through IPO, SPAC, or direct listing.” Of course, “in the future” could be anytime – a few months to a few years. Or never, for that matter.
It doesn’t appear that there are current preparations for an IPO, SPAC, or direct listing, but the good news is that Boxabl’s founders are enthusiastic about including average retail investors as shareholders. The company’s first effort at raising capital involved equity crowdfunding, which was wildly successful. The company brought in more than $140 million from the combined funds of well over 40,000 separate investors.
Equity crowdfunding is sort of like project crowdfunding in that it relies on lots of small contributors rather than a handful of large investors. The biggest difference is that project crowdfunding participants don’t get a stake in the company – equity crowdfunding participants do.
How To Buy Boxabl Stock
Boxabl is still selling shares directly to investors, though at the moment, only accredited investors are eligible.
There is a waiting list for non-accredited investors pending SEC approval of a Regulation A+ offering.
What Are Accredited Investors?
Accredited investors are those that meet criteria set forth by the SEC that demonstrates they have the resources and sophistication to manage complex, high-risk investments. The agency’s objective is to protect less-affluent investors from losing large amounts in volatile start-ups that aren’t as transparent and don’t have to comply with the same regulations required of publicly-traded companies.
Individual investors are considered accredited when they either have an active Series 7, 65, or 82 license that is in good standing or they have earned income greater than $200,000 ($300,000 for dual-income households) for two consecutive years and reasonably expect to maintain that level of income in the current year. Alternatively, investors can be considered accredited when their total net worth exceeds $1 million. This does not include the value of the investor’s primary residence.
How To Buy Boxabl Stock for Accredited Investors
Accredited investors interested in buying at least $10,000 worth of Boxabl stock can do so through the Boxabl investor website.
Per-share pricing is based on the total amount being invested, as follows:
- $10,000 investment – $0.76 per share
- $100,000 investment – $0.72 per share
- $1,000,000 investment – $0.68 per share
- $10,000,000 investment – $0.64 per share
- $100,000,000 investment – $0.60 per share
Once on the site, enter the dollar amount you wish to invest into the box on the right side of the page. Click the “Invest” button and add your personal information. That’s it.
How To Buy Boxabl Stock for Non-Accredited Investors
Non-accredited investors cannot buy Boxabl stock yet, but the company is working to make it possible for everyone to invest in Boxabl. It has filed an application with the SEC for permission to hold a Regulation A+ offering with a total value of $75 million. This type of offering allows private companies to sell stock to non-accredited investors. Sometimes, it is referred to as a “mini IPO” because anyone, including average retail investors, can participate in trading.
In the meantime, Boxabl is letting non-accredited investors who want to buy Boxabl stock join a waitlist in anticipation of the Regulation A+ offering approval. It’s a simple matter of going to the Boxabl site’s page for non-accredited investors and entering the desired amount of the potential investment in the box on the right side. Click “Join Now” and complete a short form with basic contact information.
Note that the minimum investment for non-accredited investors is expected to be $1,000. The maximum investment for non-accredited investors is typically ten percent of annual income or ten percent of net worth.
No funds are collected when you join the waitlist, and there is no commitment to buy Boxabl stock if the Regulation A+ offering is approved. It’s important to keep in mind that though the site mentions “reserving shares,” joining the waitlist does not guarantee access to Boxabl stock should it become available.
Is Boxabl A Good Investment?
Any start-up is high-risk, and this one is particularly risky because it is still at the very beginning of its journey. Yes, there are already factories open and producing the product, but 300 homes is little more than a proof-of-concept.
With that said, Boxabl has a number of factors in its favor, beginning with an apparently workable solution to a big problem. If the company succeeds, there is potential for improving the health and lives of countless people worldwide. The building construction market is exceptionally large at a value of more than $1 trillion, and disruption could be quite profitable.
Boxabl is forging ahead fearlessly, and its manufactured homes are getting noticed in an impressive circle of clients. The US military has already taken delivery of 156 Boxabl houses. If they meet expectations and the company successfully negotiates more military contracts, revenues could skyrocket.
Boxabl has taken on best-in-class partners, consultants, and advisors to be sure it gets its factories and processes right the first time. For example, Volkswagen Group’s Porsche Consulting Inc. is working with Boxabl on the newest manufacturing facility, and D.R. Horton, the nation’s largest home builder, is involved in many aspects of the business’s strategic planning.
So, is Boxabl a good investment? It’s hard to say for sure. The decision comes down to each investor’s unique goals, risk tolerance, and similar. The company appears to have a promising future, but as a pre-IPO start-up, it remains a very-high-risk opportunity.
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