Over the past five years, scams in the tiny home industry have reportedly caused customers to lose over $100 million. Many companies seem to ignore industry standards, focusing instead on raising funds without delivering promised homes.

One such company is Boxabl, which claimed it would revolutionize housing with foldable “homes in a box” for as little as $50,000. With over 150,000 people on its waitlist and millions collected in deposits, Boxabl made bold promises—but now faces serious allegations. Sources say the company lacks proper permits, has chaotic accounting, missing records, unqualified staff, and potential financial misstatements. Despite these issues, executive salaries increased significantly, and one co-founder sold over $5 million in shares. The company’s patents are allegedly owned by an LLC controlled by a co-founder rather than Boxabl itself. Employee departures and production delays add to concerns, as the company struggles to deliver on its claims.

Another company, Anchored Tiny Homes, founded by the Paulus family, once positioned itself as a top ADU (Accessory Dwelling Unit) builder in the U.S. Its offices are now shut down, leaving hundreds of customers, contractors, and employees unpaid. Many clients paid large deposits—ranging from $28,000 to over $315,000—for unfinished or abandoned projects. The company is accused of overexpanding, taking on too much debt, and failing to pay workers. The California Contractors State License Board has opened an investigation into claims of project abandonment, overcharging, and delayed subcontractor payments. A Facebook group called “Scammed by Anchored Tiny Homes” has documented losses exceeding $5.5 million among at least 60 affected parties. According to the former COO, the company left about 450 projects incomplete before shutting down. All executives have filed for personal bankruptcy, and the COO resigned due to the company illegally collecting advance payments beyond legal limits.

These cases expose major risks in the tiny home sector. Red flags include unrealistically low prices and lack of transparency. Prospective buyers are strongly encouraged to do their research, review public records, verify company credentials, and stay cautious of offers that seem too good to be true.

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