All Forum Posts by: Michael Frank

Hey all. I'm pretty familiar with s2a. I interviewed their ceo on a podcast over a year ago (in 2019 I believe) and what they promise would be great - an affordable high end prefab company in CA. The suggested price point they suggested at the time ($160-$260 I believe) for a fully managed process would be outstanding if they could actually deliver it. However, i'd be very careful about using any prefab company that doesn't have a bunch of homes in the ground they can show. Back in 2019, they said they would start delivering homes in early 2020 and their PR firm regularly sends our team announcements, but we told them that we really need to see evidence of their homes being delivered before we cover them more and its now early 2021.

There are a number of other great sounding prefab startups (Acre designs is one notable one) that have promised awesome product at great product that have not delivered. 

I'm involved with at least a handful of modular projects in socal. The cost of the site is usually what brings most stuff to $300ish - so make sure anyone who is a modular builder that's not smack in CA is giving you credible site cost number. 

If you're main goal is buy and long term hold, i'd definitely consider hud builders. I don't think most renters will be able to tell the difference or care. 

Quick answers here:

- modular can be cheaper but it really depends on the builder and the only places I've seen consistent cost advantages in cast are in really high cost areas because you're essentially outsourcing half of the labor (i.e. building the modules) to lower cost areas 

- financing is a little more complicated with draws for modular being earlier so only some lenders deal with them, but you should be able to find lenders who do underwrite modular on similar terms to other constructio lenders

- appraisals are typically pretty similar and homes tend to hold value similarly, but it probably depends on the quality of the build

@Drew Rehman Is your project in Santa Clara - unfortunately, if it is, you're going to have a very hard time finding someone who can delivery something at that price. If you're okay with what is basically a tiny home (they can be very nice), then you might be able to get close to $100k but it will be close.

From a lot coverage standpoint, if you're under 800sqft or 1000sqft in CA, typically you are exempt from lot coverage issues.

On the comps and appraisal issue, the adu comps should count towards square footage, but that doesn't necessarily mean it will appraise at the same cost per sqft as the rest of the house. 

@Rich Wilken HUD 221(d)(4)

I'm referencing the cost of building a decent quality modular or kit unit. Many of these types of companies do use SIPs or a similar highly insulated panel.  And yes, I agree that site costs are a major variable. My understanding was that $250 per sqft included site costs 

@Account Closed is correct!

Hi @Chris You, I know the prefab market very well (both customer and standard plans) and $250 per sqft for prefab would be very good value assuming it's reasonably high quality for LA. 

On the ZNE - just make sure they can have an attractive PV system added to them and can be wired for solar. That's what pretty much all the new prefab companies do. Only a few do the solar installation themselves