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User Stats

32
Posts
29
Votes
Mark Caudill
  • Investor
  • Elizabeth, CO
29
Votes |
32
Posts

Has anyone reviewed S2A modular? Just doing my diligence

Mark Caudill
  • Investor
  • Elizabeth, CO
Posted

There is a new green modular company out of hemet, ca. S2A Modular Went thru their presentation yesterday. Just wanted to see if anyone else has looked into them. Supposedly they can build a custom or one of their predesigned floor plans with tesla powerwall, graphene solar panels for a "net-zero" or "net-positive" house for $165 a sq ft. First units out by 2021.

User Stats

9
Posts
3
Votes
Jay C.
  • Houston, TX
3
Votes |
9
Posts
Jay C.
  • Houston, TX
Replied
Quote from @Lora Stone:

I too was interested to invest in S2A until I read all the posts here and physically went out to look at the "factory" and site last month. According to Kelvin, I wouldn't be able to take a tour of the "fully functioning factory" because of Osho rules. I told him that was fine, but needed to due my own due diligence and just take a look from the outside.....Ok. So many red flags...

I wondered what had happened to all the investors money? The 30 million or so?..

Thank you @Lora Stone for sharing the info along with the photos that you took of their factory (pictures say a thousand words).  

I was also very interested for a few years now and held off because we wanted to see the progress before we invested. Then, we recently received an email from S2A Modular about getting on their investor waitlist but needed to be an accredited investor meeting their requirements as such:

Who is an accredited investor?

An accredited investor, in the context of a natural person, includes anyone who:

  • earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
  • has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
  • holds in good standing a Series 7, 65 or 82 license.

But in doing more due diligence, I was checking for reviews on Google by those who already invested and I'm so glad that I came across this post.  Whew! Could have easily lost $200,000 which was their minimum investment.

User Stats

9
Posts
3
Votes
Jay C.
  • Houston, TX
3
Votes |
9
Posts
Jay C.
  • Houston, TX
Replied

@Kristina Kendall Just curious, have you received any of the distributions they promised in return on your investment yet?  It amazes me that they've raised over 70 million and have not fully completed developing even the first location.  I'm also surprised that they have not yet been pumping out the number of homes they presented in their webinar.

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User Stats

13
Posts
3
Votes
Replied
Quote from @Mark Caudill:

There is a new green modular company out of hemet, ca. S2A Modular Went thru their presentation yesterday. Just wanted to see if anyone else has looked into them. Supposedly they can build a custom or one of their predesigned floor plans with tesla powerwall, graphene solar panels for a "net-zero" or "net-positive" house for $165 a sq ft. First units out by 2021.


User Stats

13
Posts
3
Votes
Replied
There is a new green modular company out of hemet, ca. S2A Modular Went thru their presentation yesterday. Just wanted to see if anyone else has looked into them. Supposedly they can build a custom or one of their predesigned floor plans with tesla powerwall, graphene solar panels for a "net-zero" or "net-positive" house for $165 a sq ft. First units out by 2021.
S2A Modular is building in Patterson California Mega Factory and has 2 other factories under construction.  Order now for 12 week delivery! Thanks for all the support!!

User Stats

13
Posts
3
Votes
Replied
Quote from @Mark Caudill:

@Eric Teran I think you are dismissing this too quickly. Additional cost for a "net-zero" home let alone a "net-positive" home as the owner professes would justify the increased cost. If net zero, deduct the monthly cost of electricity from the expense to operate this house. If the house supplies energy to the grid you have to deduct the cost of electric PLUS the additional revenue to the expense to operate the home.

I believe this company will have their supply chain in place before other manufacturers have completed their designs. Also, if they partner with Tesla, Google, Amazon, the next modular manufacturer will have to provide greater benefit then their incumbent partner. By networking, material costs should decrease from increased supply thus driving cost to manufacture down.


User Stats

13
Posts
3
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Replied

You are very much correct we are fairly priced for top quality homes and commercial Modular units using sustainability. 

User Stats

13
Posts
3
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Replied

S2A modular uses Hemp Insulation we do not fiberglass. 

User Stats

13
Posts
3
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Replied

User Stats

9
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23
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Replied
Quote from @Jay C.:
Quote from @Lora Stone:

I too was interested to invest in S2A until I read all the posts here and physically went out to look at the "factory" and site last month. According to Kelvin, I wouldn't be able to take a tour of the "fully functioning factory" because of Osho rules. I told him that was fine, but needed to due my own due diligence and just take a look from the outside.....Ok. So many red flags...

I wondered what had happened to all the investors money? The 30 million or so?..

Thank you @Lora Stone for sharing the info along with the photos that you took of their factory (pictures say a thousand words).  

I was also very interested for a few years now and held off because we wanted to see the progress before we invested. Then, we recently received an email from S2A Modular about getting on their investor waitlist but needed to be an accredited investor meeting their requirements as such:

Who is an accredited investor?

An accredited investor, in the context of a natural person, includes anyone who:

  • earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
  • has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
  • holds in good standing a Series 7, 65 or 82 license.

But in doing more due diligence, I was checking for reviews on Google by those who already invested and I'm so glad that I came across this post.  Whew! Could have easily lost $200,000 which was their minimum investment.

Now John Rowland, Pres and co-founder, is coming on this forum to try and fix things. It's hard to imagine that only after 4 months of visiting the Patterson factory that it is fully up and running... ?? When I went last November, the VP of construction told me they couldn't build the showroom because of the rain and the mud (no pavement) and we've been in the rainy season for the last few months. Also there were 2 workers at the factory on the Wednesday in Nov when I went to visit. That means there should be a full crew of workers by now.. (maybe there are), but definitely best to take a visit out there to see for yourself so you can have peace of mind that what you're hearing is accurate or not.  It's a great concept, S2A, and I was really interested to invest, until I drove out to look at the Patterson factory.

User Stats

22
Posts
8
Votes
Replied
Quote from @Jay C.:

@Kristina Kendall Just curious, have you received any of the distributions they promised in return on your investment yet?  It amazes me that they've raised over 70 million and have not fully completed developing even the first location.  I'm also surprised that they have not yet been pumping out the number of homes they presented in their webinar.

I'm also amazed...in a bad way. Lol. No, they have not paid distributions yet. Supposedly, that'll start at the end of 2023/early 2024. But I've been hearing that since mid 2020 when they were supposed to start. They underestimated the costs with building a factory and spread out the money across too many locations so they need capital do get anything finished. There is a facebook group for investors...

User Stats

13
Posts
3
Votes
Replied
Quote from @Lora Stone:
Quote from @Jay C.:
Quote from @Lora Stone Stone:
I too was interested to invest in S2A until I read all the posts here and physically went out to look at the "factory" and site last month. According to Kelvin, I wouldn't be able to take a tour of the "fully functioning factory" because of Osho rules. I told him that was fine, but needed to due my own due diligence and just take a look from the outside.....Ok. So many red flags...
I wondered what had happened to all the investors money? The 30 million or so?..
Thank you @Lora Stone for sharing the info along with the photos that you took of their factory (pictures say a thousand words).  
I was also very interested for a few years now and held off because we wanted to see the progress before we invested. Then, we recently received an email from S2A Modular about getting on their investor waitlist but needed to be an accredited investor meeting their requirements as such:
Who is an accredited investor?
An accredited investor, in the context of a natural person, includes anyone who:
earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
holds in good standing a Series 7, 65 or 82 license.
But in doing more due diligence, I was checking for reviews on Google by those who already invested and I'm so glad that I came across this post. Whew! Could have easily lost $200,000 which was their minimum investment.
S2A has had roughly 25 trained factory employees working inside the factory for the last 6 months plus. S2A Patterson is fully operational. 

User Stats

16
Posts
15
Votes
Replied

How about some pics of the line, some completed sections ready to be wrapped and the transportation staging lot with finished homes ready to be shipped. How many Patterson S2A completed homes have been shipped to date? Inquiring minds, potentential investors and customers would like to know.

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User Stats

50
Posts
32
Votes
Replied
Quote from @John Rowland:
Maybe Mr. Rowland you could appear on a Bigger Pockets podcast to update us with where the company is and alleviate any confusion that comes from speculation?

User Stats

13
Posts
3
Votes
Replied
Quote from @Raymond Schmitt:

How about some pics of the line, some completed sections ready to be wrapped and the transportation staging lot with finished homes ready to be shipped. How many Patterson S2A completed homes have been shipped to date? Inquiring minds, penitential investors and customers would like to know.S2A Modular Mega factory in Patterson if fully operational and accepting orders and factory tours for potential clients and potential investors I suggest you come see for yourselves. Thank you again for supporting a net zero environment as S2A is committed to building low voltage, low amperage homes. 

User Stats

16
Posts
15
Votes
Replied

Mr. Rowland, respectfully, I'm sorry, 25 "trained factory employees" is not enough to run a factory production line, maybe you could get by with 90-100. Why can't you provide pictures of completed sections fully wrapped in the transport staging area? Why can't you answer how many completed homes have been shipped to date? That's normally common knowledge in the industry. Why would someone drive out to Patterson without this basic information. 

User Stats

17
Posts
19
Votes
Replied

I don't know if I'm more amused, impressed, or angry.  This same company has been pitching nearly the exact same story for 3+ years with zero confirmed results.  Yet, they seem to attract significant new investment!  Wow.  I feel horrible for those that made the investment, and I encourage those that are considering an investment to do proper due diligence.

User Stats

13
Posts
3
Votes
Replied
Quote from @Scott Sprague:

I don't know if I'm more amused, impressed, or angry.  This same company has been pitching nearly the exact same story for 3+ years with zero confirmed results.  Yet, they seem to attract significant new investment!  Wow.  I feel horrible for those that made the investment, and I encourage those that are considering an investment to do proper due diligence.


 Anyone interested in purchasing or investing in S2A are welcome to visit our Patterson Mega Factory and see this impressive operation first hand. I am not sure how much you know of ground up construction of a 100K sq ft production facility however it takes time and we are proud of our facility and what we are currently building.

User Stats

9
Posts
23
Votes
Replied
Quote from @John Rowland: Anyone interested in purchasing or investing in S2A are welcome to visit our Patterson Mega Factory and see this impressive operation first hand. I am not sure how much you know of ground up construction of a 100K sq ft production facility however it takes time and we are proud of our facility and what we are currently building.
Mr. Rowland, respectively, you have not responded to Raymond Schmitt’s important questions above. 
I was at the factory last Nov on a Wednesday at 2pm and there were only two workers in the factory and one guy hanging around at the door- there was nothing going on.. that was 3.5 months ago
Why can’t you post photos showing what Raymond Schmitt is asking above??

User Stats

13
Posts
3
Votes
Replied
Quote from @Lora Stone:
Quote from @John Rowland: Anyone interested in purchasing or investing in S2A are welcome to visit our Patterson Mega Factory and see this impressive operation first hand. I am not sure how much you know of ground up construction of a 100K sq ft production facility however it takes time and we are proud of our facility and what we are currently building.
Mr. Rowland, respectively, you have not responded to Raymond Schmitt’s important questions above. 
I was at the factory last Nov on a Wednesday at 2pm and there were only two workers in the factory and one guy hanging around at the door- there was nothing going on.. that was 3.5 months ago
Why can’t you post photos showing what Raymond Schmitt is asking above?? The information is not accurate he may have seen a few people by the door however he did not see the rest of the crew working inside the facility.. We have had roughly 25 or more employees at the Patterson facility since last year early on. This forum is not the place to view photos if anyone wants photos email me direct John@s2amodular,com I am happy to send.

User Stats

9
Posts
23
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Replied

I am the one that visited the factory. There were only two trucks in the dirt parking area next to the factory- i posted photos of the factory after i visited last November (scroll up) and one can only see two trucks there.

I was speaking about answering Mr Schmitt’s questions— Something is not quite adding up here.


User Stats

13
Posts
3
Votes
Replied
Quote from @Lora Stone:

I am the one that visited the factory. There were only two trucks in the dirt parking area next to the factory- i posted photos of the factory after i visited last November (scroll up) and one can only see two trucks there.

I was speaking about answering Mr Schmitt’s questions— Something is not quite adding up here. Lora,

I suggest you go visit with an appointment. We do not welcome visitors who show up unannounced. I can promise there has always been a full staff at this facility during the time you noted. I would love you to visit and then come tell all of these folks on this forum that the facility is fully staffed with trained employees building units on the line. Lets eliminate the question come see for yourself and report back to all please.


User Stats

9
Posts
23
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Replied

Kelvin gave me permission and knew i was going to visit. Anyways i know what i saw and took pictures to prove it. You can create whatever narrative you want. 

Fyi, I don’t appreciate the disrespectful nature of your comments.  Im not interested to invest in a company that communicates in this kind of way. 

Also people can get in now for 50k- before it was 200k and it was the last round before the institutions were coming in…. Hmm

I hope the investors get their money back

User Stats

5
Posts
9
Votes
Replied
Quote from @Lora Stone:

Kelvin gave me permission and knew i was going to visit. Anyways i know what i saw and took pictures to prove it. You can create whatever narrative you want. 

Fyi, I don’t appreciate the disrespectful nature of your comments.  Im not interested to invest in a company that communicates in this kind of way. 

Also people can get in now for 50k- before it was 200k and it was the last round before the institutions were coming in…. Hmm

I hope the investors get their money back


User Stats

5
Posts
9
Votes
Replied
Quote from @Lora Stone:

Kelvin gave me permission and knew i was going to visit. Anyways i know what i saw and took pictures to prove it. You can create whatever narrative you want. 

Fyi, I don’t appreciate the disrespectful nature of your comments.  Im not interested to invest in a company that communicates in this kind of way. 

Also people can get in now for 50k- before it was 200k and it was the last round before the institutions were coming in…. Hmm

I hope the investors get their money back


The "pitch" is perfect! Great ideas and ideals! Environmentally sound AND evidently economically viable concepts/proposals...but the responses to Lora Stone sound more like the defensive/deceptive/aggressive tone one might expect from someone who is hiding something.

Supposing that this is actually a totally real and legitimate enterprise. In that case, I suggest that Mr. Rowland invites Ms. Stone back to visit and inspect the work site and that she can come with a skilled, experienced business attorney, construction engineer, and forensic accountant of her choosing so they can take as much time as they need to examine all the books, inventory, sites, equipment, employment records, etc., and investigate all of the claims made by the folks who are pitching this investment opportunity.  Of course, the fees for the services of the independent attorney and accountant should be borne by the company seeking investors.   Yes, such an independent verification and the public sharing of the final reports would be expensive...but if all the claims made are true, the reports generated would confirm the claims and result in enhanced levels of credibility and likely commensurate increases in the levels of investment.

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Amusingly, I received an invitation from S2A to view a current version of their webcast. I was curious so I wasted 45 minutes and just finished watching. It was scary similar to the first webcast I viewed 3-years ago. Same message. Same insane ROI promised. Same forecast of 10,000's of units ordered in the pipeline. I was provided acknowledgement of not a single unit being produced/sold to date when I asked about sales in the private chat. A ludicrous company valuation was presented ($450m valuation and they've not had $1 in sales). It's more apparent than ever that S2A is fishing for less experienced retail investors to part with their money. Sadly, I think they've found a few of these fish.