Hi I'm Andrew, a kid that's building a shipping container complex

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Hi I'm Andrew, a kid that's building a shipping container complex

Account Closed
Los Angeles, CA · Member since 2018 · 15 posts · 14 votes

My name is Andrew VanCura. I am a recent college graduate from Illinois. I am 22 years old and ready to create the vision that I have dreamed about for years; a shipping container apartment building. I have done years of research and planning while still attending school, and now that I am out, it's go time. I have no experience in real estate, development, or investing, and I will be the first to admit that I know nothing about the business world. What I do know is that I am putting 100% into making my visions true, and no matter what it takes, that shipping container complex will be standing and operating within 3 years. I realize I will need a lot of help during my journey, and I am hoping that I can connect with others that can provide me insight and advice from their past experiences. I will explain a little about my plans below, and I am always willing to talk more in-depth to anyone interested. Prepare yourself......

This shipping container complex will be comprised of 500 shipping containers, having 310 living areas total. 300 units will be single studio apartments, 50 units will create a total of 10 suite-style apartments, 50 units will create office space, a restaurant, a gym, a small shop, and a salon. The last 100 units will be used as hallways and utility space. Every living space will come furnished. The complex will be located within 50 miles from Los Angeles. The 310 apartments/suites alone is expected to generate $450,000/month revenue.

I want the image of this shipping container complex to be looked at as an affordable living space, but one that also has luxurious amenities included in the average rent price. The biggest focus of the amenities will be the outdoor pool and property. I envision the outdoor pool and property to look similar to a Las Vegas resorts. Big, open, lively, and beautiful to look at. Rent, all utilities, internet, parking, and all "fees" will be combined into one monthly payment for residents to make, with simplicity in mind. Every morning and night, a shuttle service will be running to and from Los Angeles to transport residents, for free.

Very big ideas, I know. Behind my crazy/optimistic mind, I also have the ability to think realistically. All of my ideas and plans have reasoning and financial projections behind them. My vision to create this shipping container complex will be incredibly difficult, will be very profitable, and will absolutely happen.

You know that one guy that is known as crazy, that is always is acting impulsively, is always cutting corners, but somehow always ends up on top? Well that's me. And by the way...... He's not acting impulsively, he made a plan and is acting promptly. He's not cutting corners, he just took a more risky approach. Ending up on top? That part is true.

Thanks for reading my introduction!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y

It's easy to jump on here and claim you have everything mapped out and can generate $450,000 in revenue every month. However, I'm 48 years old with a few years of life experience behind me, some investment property, and a decade of real estate experience and I suspect this is all a pipe dream. Let me ask some basic questions:

1. What is the cost for development? Land, permits, infrastructure, materials, furnishings, utilities, project management, property management, furnishings, sidewalks, pool maintenance, insurance for your free shuttle, etc?

2. How do you intend to raise capital to fund this project?

3. You claim this will generate "$450,000/month revenue" but have you really done the math? A quick Google search tells me the average 1-bedroom apartment in LA rents for over $2,000 a month. Utilities average over $200 a month. $450,000 revenue comes to less than $1,500 per unit. Subtract $200 per unit for utilities and you're almost $1,000 cheaper that the average. Now add in the cost of the furniture, your free shuttle, pool maintenance, common area utilities, property management, etc. It looks like you're going to spend $50,000,000 to make $50,000.

4. I've never developed land but I can tell you this: there are a ton of hurdles to clear before you stick a shovel in the dirt. What government entities have jurisdiction over this land? What evidence do you have that the demand exists? How will the local populace react to this development? Is an environmental assessment necessary? What police/fire requirements exist? How many parking spaces are needed per unit?  I could probably think of a hundred questions to address and I'm a complete novice in this arena.

Long story short, you're a 22-year-old kid with zero knowledge, experience, or capital looking at a project so vast in scope that 99% of the commercial developers in this country wouldn't even try it.

I hope you can prove me wrong.

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  • Vince Scolari
    Investor · San Jose, CA · Member since 2016 · 47 posts · 16 votes
    8y
    Andrew V. Actually found someone doing it by you: https://amp.businessinsider.com/apartments-los-angeles-homeless-shipping-containers-2017-12
    0Reply
  • Greg Hamer
    Real Estate Agent · Carmel, CA · Member since 2015 · 193 posts · 128 votes
    8y

    or this...

    https://www.containerhomeplans.org/2015/04/what-i-wish-id-known-before-building-my-shipping-container-home/

    0Reply
  • Travis C.
    Investor · Jamestown, ND · Member since 2017 · 32 posts · 32 votes
    8y

    You may be biting off too much with your initial project being the 300 unit monstrosity(sorry but thats what it is haha).  

    I would suggest you take the two you have coming and maybe a couple more and make a small multi family unit and place it on a large lot as your proof of concept.  Make that work then start working on the bigger unit, possibly step up and do like a 50 container unit even before trying one right out of the gates with 500 shipping containers.

    Its a cool idea, I hope you can make it work, I'll be interested in seeing it when completed.

    1Reply
  • Brian K.
    Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    8y
    Hey I like your idea of thinking out side the box, but might have to start small to get big, trial and error, providing a track record, teaming up with other like-minded individuals. Figuring out what your hurdles, roadblocks and how to get around them. This is kinda like stacking modular/prefabricated building. Units that are built off site and connected on the construction site. I think the word container gives people a crude vision of what is being constructed.
    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Shipping container housing is not exactly thinking outside the box. There are presently 16 companies in the U.S. that sell prefab container homes.

    You should begin by researching and contacting them. There is no point wasting time trying to reinvent the wheel. 

    0Reply
  • Teresa Modjallal
    Encino, CA · Member since 2018 · 1 post · 0 votes
    8y

    Andrew I love the idea. If you keep running into walls and red tape, maybe you can get L.A. city involved to smooth your way since L.A. is in a massive housing crisis. If you dedicate some units to affordable or subsidized rents it could get support for your vision. Good luck, hope it happens for you.

    0Reply
  • David Zheng
    Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    8y

    I know this is slightly repetitive, but why are you shooting so high so fast.

    Why not start with a couple small container homes to at least prove it'll be somewhat successful before you scale.

    I'm going to be a harda$$ but theres NO investor with hundreds of millions that will invest in an unproven pipedream. You need to at least have some sort of resume in doing this kind of thing.

    Also  I noticed in your posts, you say a lot of "I don't know anything about this or that right now" or "I have very little experience" and even if its followed by "I will learn!" that's not a good way to pitch an idea.

    Good luck.

    1Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Alex P. Alex, I am very interested in learning more about your experience actually living in a container home. I envision the container complex too be very different that a jail cell. I hope to design the units in a way that the residents obviously realize they are living in a container, but the living conditions and environment give off the feeling of living in a three star hotel. I would like to change the reputation of container living, and the process has already begun by other builders! 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Adam Byrne Adam, I would love to hear more about your visions about container projects. I also think it is exciting, the biggest reason being that the concept of container living is common in many different countries, and has just begun breaking the surface in the United States within the past years. I think your advice to start small is very smart. I know that every person needs to have a starting point, I am just striving for the best. Please message me if you would like to talk more in depth about the idea! 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Ola Dantis Ola, I hope to have the project completed in three years, but I know that projection will be extremely difficult to reach. If it begins to take 8, 9, 10....15 years to complete, I will have to accept the loss, as I find that amount of time for one project to be too long also. You gave me your advice in a honest but critical manner, and I thank you for being supportive towards my dream. 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Account Closed Michael, yes yes yes! Though I gave little information in my post, my reasoning is very similar to yours. If you are interested in talking about our ideas further, please send me a message! 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Philip Williams Philip, in your reply, you explain a lot about a flip thread you read on this website and gave your opinion on it. You also let me know that finishing my project within three years is comparable to winning the power ball. In regards to the property flipping post you read, thank you for sharing that person's story. If you have any past experiences of your own that will help me during my journey, I would love to hear them if you are willing to share. In regards to my project being comparable to winning the power ball, you could be right, and you could be wrong, only time will tell. I realize what I am striving for is crazy goal, but I am going to try and accomplish it. 

    On another note, I see that you are from the Rockford, IL area. I lived 45 minutes away in DeKalb, IL for a couple years. If you are interested in a single family property close to NIU's campus, I am looking to sell my very first purchase soon. 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2018 · 15 posts · 14 votes
    8y

    @Vince Scolari Vince, thank you! I have been seeing many articles lately about shipping container homes and buildings being put up throughout the US, and much of the research I have gathered is from how those developers made it happen. I have been trying to reach out to as many others as I can. I opened the link you sent me and when I see others creating buildings from containers, it encourages me even more. In other countries, shipping container complex's are common for dormitories and low budget housing, and I would love to make a similar structure here. Thank you again for the advice and support! 

    1Reply
  • Yia Her
    Real Estate Investor · Sacramento, CA · Member since 2016 · 96 posts · 26 votes
    8y

    @Account Closed - Seems like this lifestyle of living in a shipping container has already been explore not only in other countries but also here in the US.  This reminds me of the movie with Matt Damon (Downsizing).  I think this is an ambitious idea and is great concept idea.  I mean, you did mention that your 22 years of age.  Therefore - you are and think like millennial and guess what, millennial do and will accept this kind of creative lifestyle.  Personally, I think this is where the next phase of living option is headed.  More on the lifestyle.  I think your biggest challenge would be two things - one is working with city and permitting and the other is getting someone who's pack with money to see your idea through.  You're really building a city is what you're talking about.  Although I do think the time frame of 3 years might be too soon, nonetheless you'll gain an enormous amount of positives from this learning experience.  I think a resort style might be another alternative to have this come to life in the grand scheme of things.  I recently went "Glamping".  Short for Glamorous Camping.  We stayed in these "Yurt Tents" that had most options like a hotel but in tent that is built with power and water.  Its kinda of cool but the guy who owns it rents it out as an experience.  In the site, there was about 26 Yurts and contains common area with restaurant, little store and much more.  In short - continue to pursue your dream and make it a reality because most people only dream.  They don't execute.  I'd be curious to know what your background in college was since you mention you have no experience.  

    0Reply
  • Costin I.
    Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
    8y

    I been playing with the idea of container habitats for a long while now, collecting sites, books and ideas. So far, I only have the ideas, and time flies by every day, soon to be regrets. So my advice to you: Go for it! Go big or bust!

    0Reply
  • Costin I.
    Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
    8y

    And for all of you, who are shooting down his project, and pointing at problems without offering answers - the kids is looking for advice, solutions and ideas. If you are experienced investors and accomplished projects before, why not help him with how it can be done, constructive advice, something more than defeatist and cynic comments?

    1Reply
  • Art Mimnaugh
    San Ramon, CA · Member since 2017 · 78 posts · 97 votes
    8y

    @Account Closed sounds like a fun project!   We had actually started to explore this option earlier this year on a smaller scale in the Santa Rosa area.    Given the fires had hoped it might be a more friendly permitting process to try and make happen but we ran into a bunch of issues related to zoning that reduced the number of units we could build on our targeted lots.   

    From a build cost standpoint, we found a large number of options but the prices seemed to be significantly higher then we could contract to build ourselves.  Many of there business models were less about cost savings on the build but more around the savings associated with time.

    Keep us posted as to how this goes as am very interested,
    ART

    0Reply
  • Aaron N.
    Punta Gorda, FL · Member since 2013 · 55 posts · 3 votes
    4y

    Got any ideas for a smaller scale?  How about 22 unit. Want to come to Florida?  Need to get an expert on the builds.  How’s idea going?  Like the ideas. Was looking into but smaller scale. 

    0Reply
  • Matt Lyons
    Rental Property Investor · Chicago, IL · Member since 2019 · 109 posts · 443 votes
    4y

    Did this ever happen?

    I own some land and want to put up a shipping container multifamily building and am looking for a builder and curious if you have any recommendations on who to call.  My location would be Iowa near the quad cities

    0Reply
  • Tim AndersenPro Member
    Rental Property Investor · IA · Member since 2017 · 3 posts · 2 votes
    4y

    There was a story about this a few years ago in Cedar Rapids, IA. Haven't really seen it take off anywhere, but I like the idea of reusing materials.

    https://www.kcrg.com/content/n...

    0Reply
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