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Matt Holm's Modular Housing Insights for Dr. Lael Alexander

Source: Austin walking group conversation, July 30, 2025
Context: Matt Holm sharing hard-won lessons from failed $50M modular housing startup (New Community Energy) with Gary Sheng for Dr. Lael Alexander's manufacturing initiatives

Executive Summary​

Matt Holm invested $100K and served as head of sales for New Community Energy, a modular housing startup that raised ~$50M before failing due to production and scaling issues. Despite generating 6,500 pre-orders ($650K in deposits) in 8 weeks, the company never delivered products due to poor prioritization and execution. Matt's insights provide critical lessons for avoiding similar pitfalls.

Critical Production & Shipping Constraints​

Shipping Optimization Strategy​

Single-Wide Trailer Compatibility:

"If you can keep it inside the width of a single line trailer, you can keep it inside the width so you don't have to get special shipping."

Optimal Dimensions:

"If you can make an elegant-looking 40-foot-by-3-foot product, that fits exactly on the back of the truck, that's your ideal product delivery cost."

Size Options Strategy:

"You can do a 20-foot, a 30-foot, and a 40-foot... but to start off, figure out what makes it make sense for that yard, you might want to do 30-foot, somewhere in the middle."

Design Principles for Market Acceptance​

IKEA-Inspired Space Efficiency:

"We've been going to IKEA, and seeing how they're able to squeeze a lot of stuff in a small space, some of these are like 160 feet, and have everything in them... you want to make them kind of gadget-y, where everything has a double use."

Visual Appeal Requirements:

"Think big windows for lots of light, because that's what you need... The difference between a 7-foot tall container that feels compressed and it's 40-foot long... If you do a 20-foot, pack it all in... Even an extra 40-foot is 9 feet of food. And big windows. It feels like a friggin' mansion compared to a 20-foot-long, your ceiling height."

Market Psychology:

"People don't care about having a big, comfortable house, this isn't a problem, they don't want to face the slap down on it... women are really going to like it, that they're all going to be, my wife would not buy a house with this kind of massive windows, and lots of light."

Utilities and Infrastructure Optimization​

Centralized Utilities Strategy:

"The challenge is going to be having the least amount of exits on pipes and utilities. Keeping all your wet wall in one spot."

Electrical Considerations:

"I'm going to assume all the components will be from one tank, and that has to be a 220-pounder... All the electric battery they need, everything."

Insulation and Wall Systems:

"If you want to have insulation, you want the inside or outside, so you're leaving some space there... you could potentially build with an all-inclusive interior, exterior wall and insulation."

Fatal Mistakes to Avoid (New Community Energy Case Study)​

Prioritization Failure​

Land Acquisition Over Production:

"I told him, stop fucking acquiring real estate and start working on production... instead he went around and put these 3,000 total acres of premium land around Austin at the burn rate... burned through the eventual 50 million dollars."

Party Culture Over Execution:

"Throwing $200,000 parties, to get more investors... it was a gifted fundraiser, not actually a new thing, and we never got a CLL that could actually issue the product."

Product Development Errors​

Over-Customization:

"You can't have like 50 different options. To me, you need to have, do your market research. Is this ADU? Is this whatever? Is it 30 by 10 feet by 10 foot tall ceilings? Great. You get one version. You can have any color you want, as long as it's black."

Complexity Creep:

"Each layer of customization creates so much complexity. And, like, honestly, consumer fatigue."

Scaling Philosophy​

Focus Over Features​

Henry Ford Approach:

"You can have any color you want, as long as it's black. Right? And then just reproduce. So your guys on the ground can't fuck it up."

Market Research First:

"Do your market research... Start with one of the principles. Then look at the competition and get some ideas."

Production Priorities​

Manufacturing Over Marketing:

"Stop buying expensive pieces of land with your spending notes, and work on production, which is a pain in the ass."

Bulletproof Product Design:

"I would do $2.20, make a bulletproof product, to stop that warranty issue."

Competitive Landscape Analysis​

Elon Musk Threat Assessment​

Inevitable Market Entry:

"Elon literally needs about 8,000 houses between Brownsville and here. And if some motherfucker doesn't come up with a good decision, he only owns the roof, the solar roof. He owns the best, most efficient heating and A.C. that he puts in Tesla's that'll run most efficiently on, and at least not on electricity."

Competitive Advantages Needed:

"Those are two of the biggest components. All he needs is a foundation and a wall system. And he already knows how to scale, so he's like the world's largest."

First Mover Urgency:

"Get into housing before Elon does... At my prediction, is that the next thing he gets in? I think he gets bored with his five companies."

Market Opportunity Validation​

Sales Success Despite Failure​

Proven Demand:

"We got 6,500 pre-orders at $100 per in eight weeks... I was responsible for about 2,000 of those."

Market Readiness:

"Whoever can produce and scale is going to make a crush. But there's a lot of competition. But nobody executing on scale."

Real-World Applications​

Personal Use Case:

"I've got a house in Lake Austin... I got a 20... I thought I had a 25-foot jetpack in the county. Instead, I've got a 40-foot, which means I have to build a house on a cliff... I can put a trailer on that."

Regulatory Advantages:

"If I can keep wheels on there forever, even if it's the county can't say shit. I tie it into the double wide net."

Key Success Factors​

Production Excellence​

  1. Shipping-Optimized Design: Single-wide trailer compatibility
  2. Standardized Options: Limited, well-researched configurations
  3. Utility Consolidation: Minimize plumbing/electrical complexity
  4. Visual Appeal: Big windows, adequate ceiling height
  5. Multi-Use Features: IKEA-inspired space efficiency

Business Strategy​

  1. Production First: Manufacturing capability before marketing
  2. Focus Discipline: Avoid feature creep and customization
  3. Market Validation: Research optimal dimensions and features
  4. Execution Priority: Delivery over fundraising and PR
  5. Regulatory Compliance: Understand local building codes

Competitive Positioning​

  1. Speed to Market: Beat Elon Musk's inevitable entry
  2. Quality Standards: "Bulletproof" product design
  3. Scalable Systems: Processes that prevent execution errors
  4. Cost Optimization: Transportation and production efficiency
  5. Market Differentiation: Superior execution where others have failed

Recommendations for Dr. Alexander​

  1. Start with Single Product: One optimized configuration (suggest 30-foot length)
  2. Prioritize Production: Manufacturing capability before land acquisition or marketing
  3. Ship-First Design: Engineer around single-wide trailer constraints
  4. Utility Consolidation: Design all wet utilities in single wall system
  5. Visual Differentiation: Large windows and ceiling height for premium feel
  6. Speed to Market: Launch before Elon Musk enters modular housing
  7. Proven Demand: Leverage Matt's sales validation (6,500 orders in 8 weeks)
  8. Avoid Customization: Standardize to prevent complexity and cost issues

Contact for Further Consultation​

Matt Holm demonstrated willingness to provide ongoing consultation and has expressed strong interest in supporting successful modular housing execution after his previous startup's failure.