Has anyone reviewed S2A modular? Just doing my diligence

Investor · Elizabeth, CO · Member since 2016 · 32 posts · 29 votes

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.

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Artur Madej

Investor · Orlando, FL · Member since 2016 · 6 posts · 36 votes

Please do your DD carefully. There are many companies out there offering similar solutions and ideas. I almost invested in a near identical scenario in Orlando a few years back. I listened to this particular webinar and it was a deja-vu experience, it was surreal. The company I evaluated in orlando claimed to be able to build "ecco homes" using pre-fabricated pieces with solar panels. They actually had a production line set up and I visited it. The concept was brilliant and exciting. The numbers looked too good to be true. However, I'm a seasoned investor and business man and have learnt over the years to be very skeptical of people with grand visions but not much of a track record, but great presentations. The company that I was seriously considering folded within a few months and there were accusations of nepotism, embezzlement, usurping of projects... the list goes on. Needless to say the house of cards collapsed and not a single house was built. I believe they are mired in lawsuits now. But oh my, what a great sales pitch they had!

Now... take a look at the webinar and look between the PR fluff. The tech guy knows his stuff but does the webinar from a bedroom with the bed right behind him. What professional person does that ? I get it that we are in a Covid induced environment and we are all working from home.... but how can you possibly think that is a positive image that gives the audience comfort? What does it say about his judgement?

A quick google search shows for S2A shows the following:

S2A Investments 2, LLC raised $300,000 from 2 investors on 2020-06-08.

S2A Investments 2, LLC Filings

Date	Filing Type	Offered	Sold	Remaining	Min. investment	Invest. count	Exemption / Exlusions
2020-06-08	New Form D	$15,000,000	$300,000	$14,700,000	$150,000	2	06c	[SEC Filing]

S2A Investments 2, LLC raised $300,000 in total.

So they managed to get 300k by mid June.
Look up the registered address for the LLC

This is where their registered office is.

Do you really want to send your 150k investment here?
Do you really believe it will be worth 2m in 5 years?

Now... they many be legit and I may be watering the wrong tree..BUT... I could write a book on all the shenanigans and screws up I have seen in my 30 years of adult life in a business setting. In reading some of the innocent comments from fellow investors I felt very strongly in posting this comment. I've seen this play out - in a bad way - too many times.

Proceed with great caution.

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Scott Sprague
Member since 2020 · 17 posts · 19 votes
3y
HaHa... me too! I'm tempted to join the call for amusement. These guys sure put a lot of effort into raising funds. I'm sure it would be desirable to those that invested to see a similar effort put into actually producing the product.
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Kevin Rea
Member since 2019 · 4 posts · 15 votes
3y
I had gotten a letter from S2A a year or so ago, to build on a lakefront lot I owned. I wasn’t ready back then but reached out recently to see if they are still interested and I got no reply.
I considered investing in the company. I heard about their plans for a mega factory in nearby Sheboygan Wisconsin. They had plans with the city in 2021. About a year later I found a small article saying S2A cancelled the contract. This raised a red flag as it reminded me of Nikola. Sure enough, every address I looked up that they claimed to be building a mega factory, is (after 2+ years) is not even touched.
I had a great talk with my 13 year old about how this scam works. He was very amazed.
1. Build a great looking website with lots of new age terms (mention Tesla once in a while). 2. Set up contracts with cities around the country, but make sure they can be cancelled at any time with minimal cost. Take picture of people with shovels. 3. Convince investors that you are the next big thing and that you are only interested in big-time investors. 4. Stall on construction as long as possible (maybe to avoid statute of limitations or something). 5. Claim bankruptcy after huge salaries and bonuses are paid out.
Wash. Rinse. Repeat.
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Raymond Schmitt
Member since 2021 · 16 posts · 16 votes
3y
They were giving "tours" of the new factory that is supposedly built in Patterson, CA and I signed up to see what they were up to. They said that no electronic equipment allowed, i.e. cameras, cell phones, purses subject to search, etc. I assume they didn't want any photos that someone with experience could call out as a bogus operation but that's just my opinion. Been to lots of factories and they encourage pictures- free social media exposure. Unfortunately I was not able to make the tour on the day scheduled but if I can reschedule and make it I'll report back.
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Raymond Schmitt
Member since 2021 · 16 posts · 16 votes
3y
Here's an update on Waco plant....not looking good https://wacotrib.com/news/local/business/development/s2a-wac...
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Lora Stone
Member since 2017 · 9 posts · 24 votes
3y
Definitely not looking good. So glad I didn't fall for their deception...
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Robert Cunningham
Member since 2022 · 8 posts · 4 votes
3y
the owner blames it on Covid Delays.
https://www.modularhomes.com/modular-megafactory-texas-site-...
That is not a current / valid excuse.
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Scott Sprague
Member since 2020 · 17 posts · 19 votes
3y
I'm very surprised that there hasn't been a post about some investors lawyering up and filing a class action on behalf of the investors. Had I been an investor 3+ years ago, I would have had attorneys begin conversations with S2A by now. At the very least, I would want a court to be involved to control/protect whatever assets remain on S2A's balance sheet.
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Pete Harper
Rental Property Investor · Streetman, TX · Member since 2018 · 527 posts · 495 votes
3y
Quote from @Raymond Schmitt:

Here's an update on Waco plant....not looking good https://wacotrib.com/news/local/business/development/s2a-wac...

I was going to say, nothing but a field of weeds at the Waco location. I believe the Paterson CA facility is just a circus tent. Nothing is real, all their home photos are CGI renderings.
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