All Forum Posts by: Joel Florek

 I live in the area and own 155 units in the region. None in Michigan City. That should provide you a bit of insight right there to my opinions. Michigan City is a town with soooo much potential given its South Shore access to Chicago and the amazing asset of Lake Michigan. I got married on the beach in Michigan City so I do appreciate the community and see its beauty. In my 6 years of living down here there have been more than a fair share of big developments that were supposed to go into Michigan City, none have happened other then the double track.  Frankly draw a circle 20 miles around Michigan City and I would rather invest in any one of those towns. The town just doesn't have the political willpower to clean up the city and deal with homelessness, crime, and deteriorating buildings/homes. Those factors lead the middle class to chose to live in the county or neaby communities like Chesterton, Westville, or LaPorte. Every person I know who has a good job in Michigan City doesn't actually live there. There is a small strip on the waterfront of vacation homes and that is about it. Hopefully, that paints a picture for you. 

Keep in mind I am a local here, I want Michigan City to grow, thrive and get better. I sincerely hope it does and if they can figure it out wow is that place going to make a lot of people wealthy when it gets moving but from everyone I have spoken to that time has been about to come for many decades all while there is a lot of better more consistent things happening in the communities nearby. 

 These are units I am building for rentals. People will pay for quality and amenities. Volumetric Modular is a style of construction and you can do it well or poorly just like a site-built home. My units will have 9' ceilings, townhouse style, in-unit washer dryers, dishwashers, and central AC. I am using Rochester Homes as they geographically make sense for me and I felt they were a great partner from a quality, service, and design standpoint. 

 I've owned multifamily in South bend but sold off that portfolio. Currently own in Chesterton IN and Three Oaks MI as well as Niles MI. Looking to find some development opportunities in my area of LaPorte and st Joseph counties. 

A modular house is built to the local building code. Therefore in an appraisal it is compared to the other homes build to that same code. Therefore you dont need to be concerned from that standpoint. 

I dont have experience in your area or the builder but I am building modular single family and multifamily in northern Indiana and southwest Michigan. Just finished my first home and our 8 unit project just started production in the factory this week. 

I am building 8 units modular this summer and just completed a house. Keep in mind its not a magic bullet solution. Costs for the project are basically the same as site built. The primary benefit is a quicker construction timeline reducing your carried interest expense and fewer variables in the construction process reducing your budget overage risks. Our construction schedule on a modular is essentially just 2 months for our projects although there will be planning work ahead of that timeline. 

I am up in the northern Indiana area. Down in your neck of the woods I would reach out to Impressa modular to have a chat with them and see what options you have. 

While some figures may adjust in your area typically a modular product is about 90 to 110 sq/ft to start out from the factory. Then you have the site scope of foundations and mechanical tie ins. So you end up where most construction is these days at $150 to $170 sqft. 

@Joseph Beilke Are you up for sharing a final cost breakdown for your project? Thanks for the details, been fun to follow. I am building 8 units this summer up in Three Oaks Michigan. I am building with modular construction so a different foundation style and approach but curious to see where you stack up. 

If you ever make it up north happy to meet. I live in LaPorte and have 150 units up in this region. 

 Started with a 4 unit that I lived in and grew from there. This 48 unit was my 8th transaction. 6 of those 8 deals were ones I did without any partners and 2 were ones that I syndicated. 

 This one is just over the border into Michigan in Niles. 

@Peter Tverdov The way I look at it is this, if I can make a business decision that keeps my cashflow as high as possible that frees my money up to put it where its needed when its needed. I can use the extra cashflow to pay down my home, cars, credit cards, save, or pay down extra on my mortgage for that particular property if I want. If the interest only for a decade is roughly the same interest rate as mortgage and interest the flexibility of having more cash each month is a far more conservative business decision than the P and I alternative.