Has anyone reviewed S2A modular? Just doing my diligence

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Has anyone reviewed S2A modular? Just doing my diligence

Mark Caudill
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
6y

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

DateFiling TypeOfferedSoldRemainingMin. investmentInvest. countExemption / Exlusions
2020-06-08New Form D$15,000,000$300,000$14,700,000$150,000206c[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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  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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.


    0Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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!!
    0Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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.


    0Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y

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

    0Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y

    S2A modular uses Hemp Insulation we do not fiberglass. 

    0Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    0Reply
  • Lora Stone
    Member since 2017 · 9 posts · 24 votes
    3y
    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.

    2Reply
  • Kristina Kendall
    Member since 2022 · 22 posts · 8 votes
    3y
    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...

    1Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    1Reply
  • Raymond Schmitt
    Member since 2021 · 16 posts · 16 votes
    3y

    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.

    5Reply
  • Mark CaudillPro Member
    Pensacola, FL · Member since 2018 · 51 posts · 32 votes
    3y
    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?
    3Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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. 

    1Reply
  • Raymond Schmitt
    Member since 2021 · 16 posts · 16 votes
    3y

    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. 

    2Reply
  • Scott Sprague
    Member since 2020 · 17 posts · 19 votes
    3y

    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.

    2Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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.

    0Reply
  • Lora Stone
    Member since 2017 · 9 posts · 24 votes
    3y
    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??
    2Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    Quote from @Lora Stone:
    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.

    1Reply
  • Lora Stone
    Member since 2017 · 9 posts · 24 votes
    3y

    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.


    2Reply
  • John Rowland
    Member since 2023 · 13 posts · 3 votes
    3y
    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.


    0Reply
  • Lora Stone
    Member since 2017 · 9 posts · 24 votes
    3y

    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

    3Reply
  • Nick Lento
    Member since 2022 · 5 posts · 9 votes
    3y
    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


    0Reply
  • Nick Lento
    Member since 2022 · 5 posts · 9 votes
    3y
    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.
    1Reply
  • Scott Sprague
    Member since 2020 · 17 posts · 19 votes
    3y

    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.

    2Reply
  • Raymond Schmitt
    Member since 2021 · 16 posts · 16 votes
    3y

    I know of a legitimate start up factory that is up and running, has produced homes and definitely has orders but sorely needs capital funding. They got their factory producing in about 3-4 months. I don't know that they're looking for investors but, if they were, I think if they get over the hump of startup cash drain. They probably only need about $7 million injection which they were processing through the SBA but that loan wouldn't close until July and they ran low and had to lay off employees last Friday. S2A has red flags, sirens and hazard lights blazing.

    1Reply
  • Robert Cunningham
    Member since 2022 · 8 posts · 4 votes
    3y

    years after this forum started on S2A and I'm still getting investor seminar invitations.  5x or 10X your money guaranteed.  

    1Reply
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