We all think the same thing when someone mentions modular homes. Trailer Park Boys. Breaking Bad. That’s just where our brains go. Brian Hurd from Cardinal Financial knows this because he hears it constantly, and honestly, I wasn’t shy about admitting that’s exactly what popped into my head too.
“I literally talked to somebody yesterday and I said, you know what? I hear that same analogy all the time. Everybody thinks it’s a mobile home in the sticks, something out of the show Breaking Bad. But that’s the perception.” – Brian Hurd
But Brian’s been deep in the modular and manufactured housing world, and what he’s seeing doesn’t match up with what most people think they know. These homes are built with the same materials as site-built houses: two-by-sixes, sheetrock, granite countertops, hardwood floors. But the difference is, they’re assembled in a quality-controlled factory environment where rain isn’t soaking your timber and waste isn’t piling up in dumpsters across the job site.
“Today’s manufactured modular homes are nearly the equivalent and again, in some cases, superior to their site-built counterparts.” – Brian Hurd
We get into the weeds on construction quality, and this is where things start making sense. At the end of a factory tour at Clayton’s Waco facility, there are two 80-gallon drums where all the waste from each house goes. Compare that to the multiple dumpsters a traditional build generates.
“Andrew Bryant took us on this tour and he points to these two 80-gallon drums at the very end and he goes, that is where we put the waste for each house. How many job boxes does the typical site-built house take when you’re going through framing and finish out? It’s incredibly fascinating to see the difference.” – Brian Hurd
And it’s not just about being tidy. When you’re building indoors, you’re not wrapping moldy, rain-soaked wood in insulation and vapor barrier. From a healthy home perspective, that matters.
“All of the environmental factors that go as you’re building a site-built house over 9 to 12 months, sometimes longer, how much of that is spent where it’s exposed to the elements? There’s a dramatic difference. All the allergens, all the water, all of that can get stuck in the materials and then enclosed within the walls.” – Brian Hurd
I raised the point that these houses have to be stronger than conventional builds. They’re loaded onto trucks, driven across highways that aren’t exactly smooth, and delivered without falling apart. They’re built to HUD code with specific requirements for transportation stress. That frame everyone thinks makes them cheap, actually adds structural integrity.
But the speed conversation is where builders start paying attention. Site-built homes take 9 to 12 months, sometimes longer. Modular? 60 to 90 days from order to installation. That’s not cutting corners.
“I think one of the biggest needs or desires is how do we reduce the time that it takes to build? Whereas you might have one turn a year with site-built, with manufactured modular, you might get it to four. We’re talking 60 to 90 days from the time the order’s put in until the time the house is delivered on site, installed, all the site work is complete. That is simply spectacular when you compare it to site-built.” – Brian Hurd
That’s about having trades working consistently in one location instead of driving out to job sites. It’s about not paying carrying costs for nine months. And when Cook Brothers built Harvest Meadow outside Knoxville using Clayton homes, the houses were appraising for more than the sale price.
“Cook Brothers came to Clayton and said, ‘We want to look at an alternative to spending 6, 7, 8 months to build a house.’ Clayton provided a really neat model, and they built a whole community called Harvest Meadow. The cool thing is the initial houses were actually appraising for more than what they were selling for.” – Brian Hurd
Brian and I dig into the financial side, and this is where things sadly get complicated. Most banks don’t understand how to fund modular construction because the draw schedule is different. You’re not funding lumber sitting on a lot. You’re funding a substantially complete home when it leaves the factory or hits the site.
“The moment you mention manufactured modular, the brakes start screeching. Very few banks and mortgage companies really understand this product or have taken the time to understand it or don’t turn their nose up at it.” – Brian Hurd
Sound Capital and Cardinal have figured out how to make this work, but it’s not the standard approach. There’s a gap here that’s keeping good builders from scaling up.
On the labor discussion, we both agree we’ve done a generation dirty by pushing everyone toward four-year degrees instead of trades. When you can start earning in the trades at 18 instead of graduating with debt at 22, the math works differently.
“I think we really have done a poor job of pushing those types of professions. If you go that route, the tremendous amount of savings that you’re going to have versus going to a four plus year university, much less starting your career, the amount of money that you can make in that period of time, the amount of money that you can be saving, is fantastic.” – Brian Hurd
And with factory construction, you’re bringing consistent work to trades in climate-controlled environments instead of asking them to drive 30 miles out to a rural site.
It’s no secret that AI is eating into various industries – but building homes? That’s going to be one of the last frontiers. You can’t have a robot crew putting pipes together or shingling roofs anytime soon.
“Home building is going to be one of the last frontiers untouched by AI. Skilled trades, plumbers, electricians, HVAC, all that kind of stuff, it’s going to be a long time before we really start to see that change dramatically. Those trades for the next few decades are going to be very, very valuable.” – Brian Hurd
I threw out an idea about insurance companies creating riders for factory construction to reduce lender risk. Brian points out that transport insurance already exists from factory to installation. The protections are there. They just look different than traditional construction insurance, and most lenders haven’t taken the time to understand it.
Brian’s closing message is straightforward: go see it yourself. Tour a factory. Walk through a completed community like Harvest Meadow. Talk to the financial side early, not after you’ve got contracts and plans locked in.
“If you are a builder, get the conversation started. It’s not as difficult as you may think. Don’t wait. It should be one of the first things that you do. We can walk you through what is your LTV, what is your LTC, how do we provide guidance and flooring lines, and how do we finance it on the backend.” – Brian Hurd
Secretary Turner has visited these projects. There’s a reason developers keep calling once they understand how it actually works.
“If Secretary Turner can spend time out of his busy schedule to go look at these projects, go see it. Come to us and we can help you, we can share some of the projects that we’re working on. Go visit a factory. It’s fascinating and well worthy of the 45 minutes to an hour that a tour takes.” – Brian Hurd
This isn’t about replacing site-built construction entirely. It’s about adding a viable option that solves real problems with speed, waste, and quality. The stigma exists because most people haven’t seen modern modular construction. Once you do, the conversation changes completely.
Brian Hurd
Senior Vice President, National Builder, Cardinal Financial
Brian Hurd leads Cardinal Financial’s National Builder Division, managing strategic partnerships with national homebuilders and driving growth in builder-focused lending. He oversees cross-functional teams to deliver a streamlined mortgage experience tailored to new construction buyers—enhancing efficiency, service, and satisfaction. With over 15 years of experience in builder channels and mortgage leadership, Brian is known for scaling production teams, expanding builder relationships, and aligning sales and operations to fuel long-term growth.
Brian Hurd on LinkedIn: https://www.linkedin.com/in/brian-hurd-a0892a83/
Cardinal Financial website: https://www.cardinalfinancial.com/
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