Solving The Housing Crisis, One Petite Home At A Time

Scott Dillingham:

THanks For tuning into the show today. I have a really special guest. His name is Michael Hoppe. Really cool story. He's a creative director of GeoPogo based in San Francisco, California.

Scott Dillingham:

And he's also the co founder of Petite Homes right here in Windsor. So welcome, Michael.

Michael Hoppe:

Yes. Welcome. Good morning.

Scott Dillingham:

So how did all this happen? Like I'm curious, right? Someone being creative director and co founder of a tiny home manufacturing company. How did all this happen? Did you have the idea?

Scott Dillingham:

Did you know you wanted to do this when you were little or how did it start?

Michael Hoppe:

I think everything, everything comes together over a long period of time. And it's a series of opportunities that build on top of each other, where you're put into a position where you can do these things and enact them out and test ideas and see what works and what doesn't work. But I'll say everything is a buildup over the last 10 years or so.

Scott Dillingham:

Okay. No, good for you. So did you grow up in California or are you local to Windsor?

Michael Hoppe:

Yeah. I'll give a brief overview. I was Canadian, born in Vancouver, grew up in a little town called Chilliwack and, they're in a little farming village called Greendale, if everybody's familiar with that. And the family and I moved over to Windsor. It was grade 8 for me.

Michael Hoppe:

And so I attended Percy P. McCollum, which is behind Hermann High School.

Scott Dillingham:

Grew up

Michael Hoppe:

in Windsor or teenage years in Windsor, and went to Riverside High School and then Saint Clair College, studied architecture. And, and then as soon as I graduated, I moved to Timmins, Ontario. I've been worked in Timmins for a number of years with an architectural firm and pretty much designed everything from houses to schools. We did some multi residential and just everything else that comes along in that, in that line of work.

Scott Dillingham:

Nope. That's awesome. And then, so how did you get to California?

Michael Hoppe:

That's a big journey. Yeah. There's a lot there and a lot of risk. I think a lot of great opportunities were came my way. I started when I came back to Windsor.

Michael Hoppe:

I think I was 25 and we started our first startup called 3dfx. And 3DFX was an architectural visualization startup that specialized in virtual reality. And, so we are creating architectural renditions, virtual renditions. And, of course, we are working with commercial and residential builders across Ontario. And my work ended up getting noticed in California and specifically San Francisco because of, I'll just say it was quite new and a lot of companies out there are looking for that kind of stuff.

Michael Hoppe:

And that's exactly what happened. They reached out and pretty much said, do you want to do this here?

Scott Dillingham:

And I

Michael Hoppe:

was like, yes.

Scott Dillingham:

Nice. Now 3 d effects, is that the same company that did video cards?

Michael Hoppe:

That is. That's correct. Yep. Some people might remember in the tech scene in the nineties, there's 3 d effects and they created the Voodoo 2 and we're all pretty demo graphics and gaming.

Scott Dillingham:

My father showed me how to build my computer back then. Now, obviously, it's cheaper to buy them. But back then, it was cheaper if you built it yourself. And, we did. We, had a bunch of different because 3 d effects, you guys had multiple series.

Scott Dillingham:

So I kept upgrading as it went on. That's awesome.

Michael Hoppe:

NVIDIA, I think it was sometime in the late nineties, early 2000s. And so when we started, there was nothing registered in Canada. And we figured let's keep, let's continue on that legacy. And stay true to the graphics and everything that we ever desired in architecture, anything that we ever wanted to produce in terms of visualizations, that was our opportunity to just go all out.

Scott Dillingham:

Awesome. And so for you, then at least me knowing that you are part of GeoPogo, for you, that was a natural transition.

Michael Hoppe:

Yes. A lot of people are surprised when they hear my background's architecture. I've worked in architecture for a number of years, but how I see tech playing into architecture, and specifically with GeoPogo, is we are working to fundamentally transform the visualization process for how buildings are experienced before they are built. The technology we use and create is all centered around projecting and portraying the future and explaining to populations what the future of their cities are going to become, because that is the most effective thing we have. A lot of times cities and buildings and designs just come happenstance.

Michael Hoppe:

It's just whatever it is that then some way just accept it. When you have tools that allow you to visualize in situ the best possible outcome of what the future can be, I think that is a great window of opportunity to really start taking control of what we are building and doing to this planet.

Scott Dillingham:

I think that's amazing. So for because I know you, I know what you guys do at GeoPogo, at least to some extent, but for someone listening today, who's never heard of GeoPogo, could you elaborate on what you guys do?

Michael Hoppe:

Yeah. So with GeoPogo, we're an architectural software startup, and our specialty is augmented reality. So augmented reality is a how do I say this? The augmented reality digitally projects.

Scott Dillingham:

How do

Michael Hoppe:

I say this? And the way the viewers can listen and understand. Sure. And maybe we have to do a quick snippet here and we'll restart. Yep.

Scott Dillingham:

We could just continue and I'll just edit this part out.

Michael Hoppe:

Yeah. Or maybe they'll like it, though. Okay. Because I know some of the listeners, this is hard to associate. So at GeoPogo, GeoPogo specializes in augmented reality.

Michael Hoppe:

And augmented reality is a new technology that's coming up in the future and now, where we can use multiple types of devices to digitally project things into the real world. And so in our case, it's architecture. So using devices such as your phones, tablets, and now what are called AR glasses or headsets, viewers can either hold up their phones or put on these glasses, and we can digitally project the entire building design right on-site in full 3 d.

Scott Dillingham:

That's amazing.

Michael Hoppe:

And the viewers can walk around and explore the entire design, they can go inside, they can see from outside, they can see the building from all different vantage points. And they can change the design of the building right then and there. And that's when you want to do it. You do not want to change things during construction, because that becomes very expensive. But the paradigm that we're trying to break is that nobody, asides from architects and maybe builders, can read and fully understand working drawings.

Michael Hoppe:

For sure. Working drawings are these, it's an abstract, it's symbols. And if you don't know how to read and decipher and piece together these 60, 70 pages of working drawings into the conclusion of the building, You're just letting it happen. And you're putting trust in the people that designed it for you, that they know what they're doing, but we're human beings. And we all make mistakes.

Michael Hoppe:

And we don't know how to communicate abstract to each other in the same way, because we all put different pictures and images in our mind. This is an opportunity for us all to be on the same page. We can effectively point and talk about the same things. And this technology will fundamentally transform the design and construction industry.

Scott Dillingham:

Oh, that's amazing. So we actually have to take a quick pause. But when we come back, we'll pick up where we left off. And then we'll also talk about, the new type of home that you're building. That's revolutionizing the home market, providing affordable housing and fixing the housing shortage problems that Canada has.

Scott Dillingham:

We'll be right back. Okay. Welcome back. Yeah. So Mike, I, or Michael, sorry.

Scott Dillingham:

Let's continue with the GeoPogo because I'm actually really interested in this. I can see somebody building a new condo, like a developer, having your system in play so people can view houses or the condos like that. Same with new builders, having clients be able to do a potential walk through of their home before you even start building it. Is that something that you're getting to that will be coming up?

Michael Hoppe:

Oh, yes. And something we've experimented and explored here in California with a whole number of developers is what we're doing is ultimately building these systems, behaviors, and foundations in place to really allow this to take off and scale across the industry. As the technology evolves, when we go from using cell phones and tablets and headsets as our medium, and all of a sudden, you're going to see things like safety glasses or eyeglasses become augmented. This is going to be a very exciting future for how we communicate design across the entire, from design to construction, to client consultation. This is really big stuff and it's a huge transformation.

Scott Dillingham:

Oh, that's cool. So if there's a builder or developer listening right now in Canada, so I know you did this in California, but there's a builder developer listening to this radio station. You would be able to provide them these benefits and features like right now, this is live and ready to go.

Michael Hoppe:

That's right.

Scott Dillingham:

Perfect. No, that's so cool. I know a few developers that I'm gonna introduce this to, because I think it's such a cool concept, especially with the buyer. If you look at the natural evolution MLS photos, first, it started with photos. Now they have the 360 photos where you can go in there and take a 360 walkthrough.

Scott Dillingham:

But that's just from a photo. So what you have, it's it's live, like you're actually there.

Michael Hoppe:

That's right. Which is so cool.

Scott Dillingham:

I love that. So then, and I know you're using this technology to help solve Canada's housing crisis.

Michael Hoppe:

We've seen opportune on multiple fronts. The first one of course is affordability and the fact that there's so many people in Canada and even in the United States who may never be able to afford a home. The prices of homes in the major cities are just way too expensive. And the second part in terms of technology, you start to look at a couple of things that technology can do. The first one of course is always cost reduction of construction.

Michael Hoppe:

How do you reduce the cost by making the process more efficient? The second part though, is transforming how people buy houses. And you saw that with Zillow and other types of companies that they changed the behaviors of how people interacted with the process. And that's ultimately what we're aiming to do with Petite Homes is taking the technologies that we built with Geopogo and integrating it into the home buying and construction experience.

Scott Dillingham:

No, that's so cool. So let's talk about this. So you mentioned affordable home. Anybody listening is thinking like, how is that possible in today? How do you get an affordable home in today's market?

Michael Hoppe:

That's right. And yeah, it's a very, it's a very challenging thing. You look at home prices in Windsor, even rental prices have just skyrocketed. It's quite surprising. Never mind looking at Toronto or Vancouver or even here in San Francisco.

Michael Hoppe:

There's entire generations that just may never be able to buy a home. You just can't do it. So when the city of Windsor and other municipalities across Canada, United States started to approve in their zoning and their bylaws, the ability to build tiny homes. There as ADUs in people's backyards, or you can build them on a fresh plot of land. That is an opportunity to create affordability simply because the reduced square footage will allow for homes to be at a more affordable price for people.

Michael Hoppe:

We don't need these McMansions or homes that are 4 or $500,000 We can build these tiny homes from anywhere from 90 to $120,000 depending on finishes. And one of the ways you keep costs down, and the reason we've started with 3 units is because we can manufacture the units. Okay. We can build them in factories and warehouses. That is part of the automation of the construction industry.

Scott Dillingham:

Yep. And I was gonna say, and I think that's also how you can keep costs down. So I'm familiar with the build process, which is incredibly cool, but I'd like you to tell everybody who's listening today how that happens in the factory with your laser guided, I'll let you, I don't want to steal the why don't you tell everybody how they're built in these warehouses?

Michael Hoppe:

That's right. So the process that we're looking at starting is, of course, with consistent units, are built in mass to be sold across Canada and United States. But the process really comes down to streamlining and automating. So all 3 homes are all the same dimensions. All 3 use the same things like cabinets, finishes, the same doors, the same exterior finishes, same shingles.

Michael Hoppe:

And that is what gives the opportunity to streamline the process. That's what we're going after.

Scott Dillingham:

Okay. No, that's so cool. So then you build them in the warehouse, so that's all built. How do you get it to the person's plot of land or as an ADU in their backyard? How does that happen?

Michael Hoppe:

That's right. So of course the first part's delivery. And so the units are designed to fit on a flatbed and we can ultimately ship the unit to anybody's property. And then the second part is you effectively cream the unit into place. And so we'll pre pour the concrete pads, sewer, plumbing, hydro, everything's all there, ready to connect.

Michael Hoppe:

And then you effectively drop the unit onto the concrete pad and connect everything. And you're good to go from there.

Scott Dillingham:

No, that's incredible. So for someone who's looking to, purchase one of these homes, what would be the rough turnaround time for something like this?

Michael Hoppe:

That's a really good question. And as we are finalizing those details with Alliance Construction, I think we'll be able to release that information. Obviously, we want the turnaround time to be much quicker and more effective than doing traditional stick build. And you could look at anywhere from less than 3 months. And especially as the process starts to get quicker and we automate more and more, we would basically be able to deliver these homes like cars.

Michael Hoppe:

And that's the plan that we're going after.

Scott Dillingham:

No. That's really cool. So it I can see how it's a lower cost, right? It's a tinier home. It's a smarter manufacturing process.

Scott Dillingham:

I can see how it solves the housing crisis because people can add these units depending on their lot size. And correct me if I'm wrong, but I believe certain property owners and sizes can qualify to have one of these in their backyard as as an additional rental or for their extended family to live in it. Is that right?

Michael Hoppe:

That's correct.

Scott Dillingham:

Perfect. Yeah. So see, there you go. So you're adding more supply to the housing market. Can you tell me about the warranty?

Scott Dillingham:

Is it any different than a regular new construction home or how does that work?

Michael Hoppe:

Yeah, it'd be the exact same warranty as what's required for your standard residential homes. And, yeah, we're ultimately be back at the exact same deficiencies, same standards, effectively the exact same thing as if you were to get built by any other home builder.

Scott Dillingham:

No, that's incredible. For the listener today that might wanna look at your models, where would you direct them to, to get started, or to see what's available?

Michael Hoppe:

Of course, we have petit. Homes, which is the web address. So www.petit. Homes is where you can go on the website and you can start to explore the homes right from the get go. You can download the free plans.

Michael Hoppe:

And we also have a virtual tour right on the website where you can walk through each model as a 3 d walkthrough on your computer. And that's a really get great way to get to know the homes intimately, before you commit to any builds.

Scott Dillingham:

No, that's so cool. I love it. And at least from a financing standpoint, I just want to speak on that because that's our expertise. Not every lender will finance the construction of, tiny home, but there are others that will now when it's in place and done, usually the lenders will open up and you'll have access to more lenders for our client. So if you're looking at this and you're like, how do I finance it?

Scott Dillingham:

It's best just to give us a call at Lend City. We'll do a quick strategy session with you. We'll go over the options available and then we'll help to maximize this because the construction and the financing. I know that part is a little bit different than a traditional house. Just that's something to think of.

Scott Dillingham:

Perfect. So Mike or Michael, so someone wants to buy this same website, they can purchase it right from there or is there a different process?

Michael Hoppe:

That's right. So the process that we're working out at the moment, of course, is everyone can start with a property assessment. And so you go on, you basically $100 deposit. Our team goes through and essentially reviews the property. We make sure that a tiny home can, of course, fit on it, that the bylaws are in place, zoning setbacks.

Michael Hoppe:

And then from there, we ultimately go and get permit approvals. And that's through our architect, Stuart Miller, with MMA Architects, whom we've partnered with. And so he's able to serve all of Ontario. That's the quickest way to get the process started. We introduce you to Chris Weller from Alliance Construction and go through the cost breakdowns, assess the property for how we're gonna get services in, water, hydro, sewers.

Michael Hoppe:

And once we sign on the dotted line and the, buyer's satisfied, we get started.

Scott Dillingham:

No. That's awesome. I love it. It sounds great. I really appreciate your time.

Scott Dillingham:

I love what you guys are doing. I think the project is so cool. The technology is cool. I love it all. Thank thanks for coming on the show.

Michael Hoppe:

Thank you, Scott. Thank you for the opportunity.

Scott Dillingham:

Alright. No worries. Have a great day, everyone.

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