Thursday, May 5, 2011

BLU HOMES GETS NEW ROUND OF FINANCING, NEW WORLD HOMES QUIET

Blu Homes with offices and factories in MA and CA is quickly looking like a real contender in the single family modular housing industry.  They recently got another round of financing from lenders and investors totaling $12.5 million for engineering and factory expansion.



CLICK HERE to read the article

The only question that I still can't get an answer to is whether their lawsuits against Michelle Kaufmann and MK Designs were ever settled.  Blu Homes bought MK's designs when her factory closed down after she found that designing those ugly homes and then actually building them was harder than she thought.  Then someone within her organization supposedly sold those same plans to other people.  OOPS!

And while looking for an answer to that question, I'll pose another.  What happened to New World Homes?  I really thought they had a good marketing strategy but over the past few months...nothing.  Spring selling season should be their biggest marketing push yet we've heard nothing.  Are they still a happening company?  I placed a couple of calls and never got a return call from them.

8 comments:

Anonymous said...

NWH is building small "affordable" homes in Atlanta. I think the NYC office is closed. They had a mystery benfactor who got fed up with the marketing that was not producing results. I think the "founders" were fired and not sure who's running the ship. They were really never builders, just high priced brokers.

Anonymous said...

New World Home was never able to move beyond being another broker with a nifty sales pitch. the size of their organization added a huge mark up to a product that already bears several mark up layers completely pricing them out of the game. they were not a manufacturer nor builder. they have dramatically reduced the size of their organization to try to offset their enormous marketing debt but still have been unable to find a way to devise a business plan that attracts customers with their inflated pricing. If they are not dead yet they will be there soon. No on can bleed that long and survive. Its a shame - if they could have acted as the builder or GC and eliminated one layer of mark up they may have had a fighting chance but in the end, other than some interesting designs and press, they provided duplicated services already included by either the manufacturer or builder they needed to complete the project. While their potential customers probably weren't aware they were paying for service twice, they were always aware of the significant price premium NWH was asking for. Most of the people that I considered the real talent at NWH have parted ways now leaving a shell of the company with the executive team out of options.

Anonymous said...

I said they were not builders. Their base pricing was 150-200 a foot. To my amazement they were not even architects.

Anonymous said...

Hate to say it but I predicted - against the grain from Coach and others - that New World Homes would not make it in their marketing of modular homes business.
I also do not think BLU will make it by having to support the various sales offices. Plus, what good does a plant in MA do for the other sales offices? Answer - nothing. Freight too expensive for shipment. Don't they look at fuel prices?
Also, who do they think they can make money from MK designs when they ARE NOT ATTRACTIVE homes. Ask Clayton how well those designs did for them.

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Anonymous said...

NWH failed by the unique convergence of ignorance and arogance. They wanted to tell the world how to live and took ZERO risk. The spec homes that they did build were knockoffs of name architects who were afraid to call them on it. Great Marketers for sure, but didn't back anything up. Gave us all a blackeye with the homes they did sell and WAY under delivered. I personally saw the Atlanta and Asheville homes. Lots of missed details, and lots of "Green" components that if they work will have extended payback periods.

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