Real Estate Technology
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Has anyone reviewed S2A modular? Just doing my diligence
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.
i think i've commented on this thread before but I have gotten many complaints about them via my site. I would wait for them to prove they can deliver a considerable number of homes before engaging with them.
Originally posted by @Scott Sprague:
One easy DD step is to simply look at the very first messages on this thread posted over 7-months ago and then ask yourself, what has S2A actually built in this amount of time? To my knowledge, the answer is nothing. Have they delivered on any forecast made 7-months ago? Not that I am aware of. They promote and market like crazy on social media. Their presentation appears to remain the same as 7-months ago, and it's primary goal is to obtain investors. They seem to be finding individuals that will invest, which really surprises me. WAY TOO many red flags here for my personal investment comfort level.
Yes they are a complete scam...trying to use other peoples money to get rich.
Originally posted by @Jamie Bailey:
I am following. I loved the presentation. I am a potential S2A investor, mortgage lender, landlord and real estate investor and was curious to be find out about being a sales agent for the company. I scheduled a phone meeting, they cancelled. I scheduled another and they cancelled and proposed new date/time. I have yet too reschedule, figured I too would do my DD. Pricing is high for me, I'm in Virginia so costs to build aren't as high. I would like to hear from the earlier investors about how things are going and what you're being told, etc.
Your crazy if you give them your hard earned money.....you might as well work with some guy from Nigeria who wants to split his lottery ticket with you.
Originally posted by @Denis Ryan:
I watched their webinar last week. I've been going through it since and it has more holes than Swiss cheese. A lot of the math doesn't add up.
All you have to do is check out their Facebook page in order to see just how phony they are. They continually post photos that are NOT theirs to entice people to think they are actually doing something. Call Tesla Corp, Call LG and see if they are partners with them....THEY NEVER HEARD OF THEM!!!!!. Nobody is a working partner with them. They have NOTHING !!!!! They don't answer the Facebook posts to their pictures, they only say check out our webinars for more information. All they want is to trick people into investing their money into a dying company or more like their own pockets. I have no doubt these guys will wind up in the FBI's lap at some pint. Mark my words. DONT BE A VICTIM!!!
I’m a builder/developer and technology founder located in the Pacific Northwest. I’ve developed 23 subdivisions and built 1,000+- homes in this region. I don’t have much to add regarding S2A Modular (will be attending a seminar next week if I feel it is worth my time), but I do have the following comments on new stick built construction versus modular factory built homes or systems.
Depending on factors such as plan design, basements, finishes, etc., our sale cost for a stick built home in the PNW ranges from $165 to $240 per square foot. That is 16” OC framing, highest energy code in the U.S. (WA state), high finishing levels, and quality construction. Extremely energy efficient. The only excluded items are the land, financing and utilities.
I have looked at a large number of alternative construction methodologies and those always come up short against a quality stick framed house. When site work, utility connection, foundations, backfill, slab work, etc. are factored in, the partial or full kit homes cost more. Not only that, but it is very hard to find crew that can and will assemble a factory kit or prebuilt home. My comments do not encompass a full modular completely finished and site delivered to a waiting foundation.
One thing to remember is the fact that foundations vary in size. A truss company will ALWAYS pre-measure a foundation prior to building trusses for a site built home. I would be extremely concerned about foundation versus a completely built home site delivered.
However, we have a massive housing crisis. Currently, we are 4 million homes short. By 2024, we will surpass the worst housing crisis in the U.S.. That was 1946. We solved that crisis by turning a war machine into a housing machine.
To help solve the housing crisis, my tech company is developing a simple Construction Project Management system that will help homebuilders and homeowners build more homes, more efficiently. It’s free to all users. This is not a plug for my tech company... However, homebuilding is one of the oldest and largest industries in the U.S.. Only 27% of homebuilders use software to manage their construction.
For investors, the housing industry is a good bet due to supply and demand issues. Just be very careful in what you are investing in. Especially new companies that do not have a track record (and tech companies - but that is a high risk and very high return if successful).
I'm a licensed general contractor (34 yrs) and licensed modular/manufactured home dealer (20 yrs.) and have completed hundreds of projects here in California. I've seen lots of "big ideas" come and go. The factory built home business is legit and competitive, different factories vary in quality just like auto manufacturers. It also has big swings in volume as does the home building industry. Right now, a new factory would have huge demand but, when the mortgage forgiveness crisis hits when the government allows foreclosures again (currently scheduled for June 30, 2021 I believe) and thousands can't afford the mortgage payments that they haven't been making, I suspect problems similar to 2006-2010. I believe there are many more people in forebearance now than were upside down in the last mortgage collapse involving much more money. Granted, underwriting requirements are more strict so conceivably the borrowers should be able to make the payments but human nature as it is, people adjust their spending to how much they have and get used to not making that mortgage payment. But that's a different issue from S2A.
I don't believe S2A would be able to have any factories build homes for them right now in California, all factories that I know of are on back order until 2022 and will only respond to their established dealers and then, only to the largest ones. So, they will have to open their factory to sell product.
As for the market, Blu Homes has been around in the high-end, energy efficient, modern architecture market here in California since around 2007 or so I believe and I know how many homes they have built but I doubt many. They recently were purchased by Dvele who took over the Hallmark Southwest company a couple of years ago and now have their factory which previously built both good quality HUD and modular homes, I was a dealer for Hallmark Southwest. Dvele's (and Blu Homes) business model is to be the dealer, the contractor/ builder, and factory. As a builder I got involved with modular/ manufactured homes to reduce the problems/ risk/ time of the building process by splitting the job in two, we do the planning/ permitting/ site work while the factory builds the home then we install and complete all the necessary site amenities, i.e. garages/ decks/ utilities/ driveways/ landscaping/ etc. This is a good business model, I don't think a factory can be very successful financially when they try to do all these things themselves unless they have large, multi-unit projects. Why would local subcontractors/ soils engineers/ etc. want to deal with an out of town factory on a one-off project when they have local contractors they deal with regularly and are familiar with unless they're hurting for business. And if they're hurting for business then I doubt the factory has much business. Additionally these high-end modular's price point is higher than comparable site built projects unless it's in a remote area where labor and suppliers are scarce.
S2A could be successful, in my opinion, if they had a quality product sold and installed through capable, competent, contractor/ dealers. Then they could focus on refining the design and efficiency of the factory built aspect and let the hard stuff be handled by others.
846 Warren Way, Palo Alto , Ca. is a rental property. Neither one of the co founders own this property. According to property tax records....
Yep.....phony as the day is long. Taking investors money to fund their lifestyle.
Not one operational yet. Still trying to trick people into thinking its a viable company. Amazing
Hello BP Tribe! I am the originator of this thread that started 12 months ago (wow time flies when your having fun!). My intention was to vet S2A Modular and boy did you folks deliver. I wanted to express my gratitude for all who have contributed to this thread. Your honest, frank and professional opinions, without berating or belittling, has been refreshing and informative. As the originator, I will reach out to S2A and ask if they would be open to an dialog based on the responses here. Nothing confrontational, just the same questions that have arisen from this thread. I will let you know if they are willing to talk and hopefully allow me to record their responses. If there are any burning question you would like to answer, please connect with me here and you can post your questions directly to me. Once I have gathered the top 6 questions I will contact them and see if we can hear from them directly. Again, I am humbled by the response, thank you for taking the time to contribute. Thats why I love it here in BP land.
Mark
I just attended their webinar and I found the proposal to be pretty interesting until he got to "a $2M return on 150k investment." That just sounds too good to be true. I'm following this thread to see if they agree to answer all your questions here. I love the idea of cheaper, more sustainable housing but I'm not 100% convinced.
Look how hard it has been for Lordstown Motors to stay above water even though they OWN a plant they bought from GM in Ohio. This is a company that actually has a working EV pickup and might not survive. This company here (S2A) is partially run by a clever front man that is a big dreamer. From what I see, he is a failure in several of his other business like his REO Auctions etc. This is a failed operation and they are a dreamer company that loves talking a big game but is way to over their heads be to have any chance of delivering. They have no real money of their own and like someone said the LLC is listed to a rental home in Palo Alto.
Now before you say well Apple was started in a garage.....that was over 4 decades ago and this is NOT Apple. Times have changed and business has become a lot harder these days to survive. It will be interesting to see what these guys have to say or if they even respond to Caudill's questions. As some say here they don't respond to much which tells me they are just hoping for informed victims to separate them from their hard earned money.
I just got this recently... Pictures are encouraging, but I'd like to see factory output.
Hi Howard,
As an interested investor in S2A Modular factories we want to give you a final chance to be a part of our Jacksonville offering.
Our Jacksonville, FL factory location is going through the permitting phase, and we expect to break ground in Q3. We have just under $1.5M remaining in available shares and expect the offering to be closed over the next few weeks.
If you are interested in getting in the final call for Jacksonville or if you have a pending hold that is set to expire, please respond to this email and we will get a call scheduled as soon as possible.
PLEASE NOTE all other offerings have been increased to $20million per factory with a minimum investment of $200K. This is the last chance to get into a factory at the $150K minimum.
We are very excited to have our first factory location in Patterson, CA operational this year. Check out some of our latest progress pictures below:
Sincerely,
Catherine O'Connor
Director of Investor Relations
I viewed the S2A webinar and reviewed all PPM and investment documentation over a year ago. Though I wanted to believe, there were simply too many massive red flags to become comfortable. Now a year later, I see basically the exact same webinar pitch promoted on FB and ZERO of the forecasts made last year have been hit. I'm more suspicious than ever before about these guys.
Ok so basically thats a giant tent?....how the hell is that a factory with a controlled atmosphere in California??..OMG thats ridiculous.
Wow, what a thread. I just jumped back onto BP forums after a very long hiatus and this made for good reading! As a newcomer to the thread, reading all the comments with fresh eyes and no attachment it seems obvious to me to stay clear of these guys in terms of making an investment. If they can eventually build these homes at the stated prices, then I'd definitely consider that. However, as a former SolarCity/Tesla employee and current competitor, I can see through so many of these "companies" who tout the Tesla Powerwall (or solar roof). They will not get it, period! But it sounds good and, for some reason, people love and want it. I'd personally recommend buying the Ford F-150 and use that as a full-house backup in case of an outage and get dual utility out of it vs. spending $45K on three PWs to hang on the wall waiting for the rare power outage. What's the ROI on that? But I digress.
This thread reads like a story that evokes the memory of that movie title "He's Just Not That Into You." I'm sure we've all had many a long conversation (or multiple, seemingly endless conversations) with a friend who seems determined to convince us that the girl (or guy) of their dreams does, in fact, love them when all indications are that his person doesn't even know they exist or perhaps has 2-3 real partners already. When I read this thread, either that movie or Trevor Milton is what comes to mind for me, and those are definitely not the thoughts I want to have when considering a potential investment. Heck, even just a quick search of Google and Google Maps shows nothing related to S2A in Hemet, CA. Besides, who puts their HQ in Hemet, CA anyway (oh yeah, L.Ron Hubbard and David Miscavige, never mind. LOL) ?!! Yuck. Sorry residents of Hemet, no offense to you personally.
Originally posted by @James Thiel:
Wow, what a thread. I just jumped back onto BP forums after a very long hiatus and this made for good reading! As a newcomer to the thread, reading all the comments with fresh eyes and no attachment it seems obvious to me to stay clear of these guys in terms of making an investment. If they can eventually build these homes at the stated prices, then I'd definitely consider that. However, as a former SolarCity/Tesla employee and current competitor, I can see through so many of these "companies" who tout the Tesla Powerwall (or solar roof). They will not get it, period! But it sounds good and, for some reason, people love and want it. I'd personally recommend buying the Ford F-150 and use that as a full-house backup in case of an outage and get dual utility out of it vs. spending $45K on three PWs to hang on the wall waiting for the rare power outage. What's the ROI on that? But I digress.
This thread reads like a story that evokes the memory of that movie title "He's Just Not That Into You." I'm sure we've all had many a long conversation (or multiple, seemingly endless conversations) with a friend who seems determined to convince us that the girl (or guy) of their dreams does, in fact, love them when all indications are that his person doesn't even know they exist or perhaps has 2-3 real partners already. When I read this thread, either that movie or Trevor Milton is what comes to mind for me, and those are definitely not the thoughts I want to have when considering a potential investment. Heck, even just a quick search of Google and Google Maps shows nothing related to S2A in Hemet, CA. Besides, who puts their HQ in Hemet, CA anyway (oh yeah, L.Ron Hubbard and David Miscavige, never mind. LOL) ?!! Yuck. Sorry residents of Hemet, no offense to you personally.
I like your take. If only indoor built smart homes were a real thing already. I am curious about permitting and a municipality even allowing a developer to create a community that doesn't have 100% backup in the event of an emergency. I also know someone who worked for Solar City/Tesla and she had some interesting stories of complete chaos. My other thought is why don't they just go to banks and big VCs. I can see it being high risk for banks but VCs should be up for the risk. There are so many truly wealthy people out there why are they seeking the little guys to fund such a massive plan?
Originally posted by @James Thiel:Wow, what a thread. I just jumped back onto BP forums after a very long hiatus and this made for good reading! As a newcomer to the thread, reading all the comments with fresh eyes and no attachment it seems obvious to me to stay clear of these guys in terms of making an investment. If they can eventually build these homes at the stated prices, then I'd definitely consider that. However, as a former SolarCity/Tesla employee and current competitor, I can see through so many of these "companies" who tout the Tesla Powerwall (or solar roof). They will not get it, period! But it sounds good and, for some reason, people love and want it. I'd personally recommend buying the Ford F-150 and use that as a full-house backup in case of an outage and get dual utility out of it vs. spending $45K on three PWs to hang on the wall waiting for the rare power outage. What's the ROI on that? But I digress.
This thread reads like a story that evokes the memory of that movie title "He's Just Not That Into You." I'm sure we've all had many a long conversation (or multiple, seemingly endless conversations) with a friend who seems determined to convince us that the girl (or guy) of their dreams does, in fact, love them when all indications are that his person doesn't even know they exist or perhaps has 2-3 real partners already. When I read this thread, either that movie or Trevor Milton is what comes to mind for me, and those are definitely not the thoughts I want to have when considering a potential investment. Heck, even just a quick search of Google and Google Maps shows nothing related to S2A in Hemet, CA. Besides, who puts their HQ in Hemet, CA anyway (oh yeah, L.Ron Hubbard and David Miscavige, never mind. LOL) ?!! Yuck. Sorry residents of Hemet, no offense to you personally.
Unfortunately because they are the only poor saps that go for it. Sad really. The smart money wants no part of them.
Hello all,
The level of groupthink on this thread is impressive. Is this a speculative investment? Yes, it is. As a smart person here said, “High risk, potentially massive return”. But to those of you who think this is a scam, a few thoughts:
- 1. If this was a thriving, mature company with plenty of capital, then it wouldn’t be a startup, would it?
- 2. Some of you have suggested that it would be much smarter to build the first factory, produce product THEN build out the others. Well, the Patterson factory will be done in a month or two and producing product… (and will undoubtedly hit some hiccups). None of the other factories have broken ground yet. So, I guess they are taking your advice.
- 3. To the smart fella who questioned the 90%/10% split… that was on the WORK, not the money.
- 4. Are they behind in their projections on completing the first factory? Yes, they are. Can you name a construction project that isn’t? They always are. Always.
- 5. Are they behind their projections for V.2 of the website? Yes, they are. Yet they continue to add full video renderings of the interior and exteriors of their designs. Is continuing to invest in this just part of the grift?
- 6. Here is an internal webinar between chief growth officer Sharon Amezcua and Global Site Location Industries (https://gslisolutions.com/) going over the details of finding appropriate land (one of the largest companies in the US doing this work) for S2A to buy. Is this part of the elaborate scam? Or people just trying to get this done?
- 7. Speaking of Sharon Amezcua (just to point to one member of the impressive S2A team), here is her LinkedIn: https://www.linkedin.com/in/sharon-amezcua/ Does this seem like a person who would be involved in a scam or, rather, an extremely accomplished person who could choose many paths… and she has chosen S2A.
- 8. You’ve seen the pictures of the Patterson factory almost complete. Do you think they went to the trouble to build this as part of the scam to get more investors? To those criticizing the design of the exterior of the building as a joke, (looking at you Paul Doer) you should find something you know something about to comment on and leave the nice people on this thread alone.
- 9. For those complaining about the cost/square foot, these are high-style LUXURY homes including solar and the latest tech. If you are comparing these to ugly, suburban cookie cutter duplicates of each other, you’ve missed the point entirely.
- 10. I have invested in this company. Will I ever see that money or a return on it? I don’t know. What I do know is these are legit people trying to do a hard thing. If you don’t think it’s a good idea, don’t invest….
Hello Max,
I have just read your post and I have my seminar with S2A tonight and I just wanted to say that I have decided not to attend until I ready your post. It reminded me that I should always do my own research before I make us my mind. Thanks
S2A modular may have a decent product but their big downfall will be the fact that they are getting money from investors with major inflated BS promises of returns.
They have been doing this for a couple of years now and soon they will be investigated for unethical and overhyped promises of crazy returns especially when investors cannot cash out like a couple of people I know who are now stuck and cannot get over $500,000 invested there and have had zero returns.
Their next call is to the SEC. Will give an update soon
Is S2A running behind schedule and projections? Yes. Have you seen anything about Covid, supply-chain issues and companies across ALL sectors having trouble delivering their products? Its not a crime to be running behind. When this whole comment trail began, S2A had not broken ground yet on its first factory. They now have broken ground on three, purchased land for factories 4 + 5 and are a month or so from being operational at their first factory. The "people" you know who are upset should read the contract they signed. It contains NO "promises", just "projections" given S2A's best estimate at the time of the investment...and there is certainly no way to get a their investment out, outside of the company eventually hitting their projections (even if they are late). There will be no investigation as there is no crime, not even close. Again, have them read their contract and, even better, have some patience and understanding about the bigger economic reality. Could they lose their investment? Of course. And their paperwork spells this out clearly. Could they get a return of X10 or X20? Yes. Possible.
Max, not sure you're doing them any favors posting that video from facebook above..https://www.facebook.com/s2amo... reason being, from what I can see none of that is in Patterson, it just looks like clips from the crane company they are probably using for their factory at other factories. Not being a hater, just being productively skeptical. I know they're building the factory in Patterson but this has the looks of deception, should show pics of actual equipment being installed AT the Patterson factory.
This should be the actual link to the video showing the crane equipment https://www.facebook.com/s2amo...