All Forum Posts by: Michael S.

Can you post your script? From there I can tell you exactly what to change and how to approach it. For example, are you saying Mr. LAST NAME or calling them by first name? This makes a big difference

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Originally posted by @Bill Regan:

That's interesting, thanks for sharing.

What kind of investment did that take? Whats the return? How did you finance it?

Not exactly sure of the financials on this one. It was financed through private investors that the developers lined up. This is a project that I helped facilitate with my business partner who is the president of the modular company that manufactured and installed this.

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Completion on this 4 story hotel couldn't have gone any smoother or faster. Fully installed end of 2016. Completely move in ready mid 2017. Modular is the future without a doubt. I currently have 2 other large multifamily housing projects currently under construction using modular. Here is the brief project profile:

STUDIO 6 PROJECT DETAILS:

Building Type: Four Storey 63-Room Extended stay Hotel

Project Name: Studio 6 Hotel

Project Delivery Method: Turn-Key

Design-Build Project by Kuvella

Location: Bruderheim, Alberta

Typical Module: 12W x 60 L

Completed: December 2016

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When pricing a multifamily property like a 4 unit, looking at comps is a major key but also when evaluating the property, we do have to look at what the current rents are AND what the upside potential is (proforma). So we have to use our better judgment. If the building is fully occupied at a GAI of $120K, and the tenants are paying below market, that means there is upside potential IF you were able to buyout/relocate the tenants. So if proforma gross annual income is $165k after buyouts and upgrades, we will reflect that in the ask price. If a building has a 3 cap with the potential of a 4.5/5 cap than damn sure the price will be competitive based on the amount of "upside potential".

1 Vote

Los Angeles County, California

Originally posted by @Miles Presha:

Hey, guys...I too have been looking into the whole modular thing. I owned and sold/rented a few mobile homes, and somehow today I came across mods and am now binge searching all day.

I'm out in Cali, and out in the inland empire land is cheap. Thinking of putting some modular multi family units out there. Looks like they can be financed as well. So...maybe leverage the land and the home then rent out? Not sure if this is possible but I'm gonna research it. Keep ya posted...

hit me back with any thoughts.

Cheers,

Miles

I'm a multifamily property specialist/broker and my business partner is the president of a highly successful steel based modular manufacturing company. They started off in the one-off single family home modular designs but in the recent years have acquired facilities across the US to really ramp up supply to meet the demand of the market especially here in LA for developers looking to big large affordable multifamily housing. They have near 1 million sqft of manufacturing space between all the facilities now across the US and Canada.

The interesting thing with going modular in the multifamily housing sector is that in most cases, we are able to come below in cost over traditional construction and that completion time is much much faster which increases the investors/developers ROI which is huge. And the other advantage is that you're able to use a 15 or even a 10 year depreciation schedule vs. the conventional 30 year which is also a huge benefit to owners. Not sure if this applies to you but if you are planning on building lots of units it could be a natural fit. If you have specific questions about the company or modular building in general, definitely feel free to message me.

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Originally posted by @Rowdy B.:

I want to put a 40ft x 40ft addition onto a property in Flagstaff, Arizona (zip 86001). I have fixed/flippped/built additions for seven properties, and have either done or been involved with nearly all trades. I am searching for the lowest cost method of doing this which could be completed before the frost hits in September/October. I am capable of doing the framing myself, and getting subs for everything else, but would prefer to focus on my day job and have a life for the next few months. That being said, this option does seem to be the only way to get the job done within my budget and time frame.

I have spoken to several general contractors in the area, but all have indicated that they are either not interested or could not get started for at least 3 to 6 months (building boom here).

The most appealing idea for me at the moment is modular. In particular, I would like to find a manufacturer that is able to produce a two-story custom modular building for a reasonable price. I have a rough design in PDF format. I have been in contact with all of the major manufactured home builders here in Arizona, but none of them do two story, and all of them now have at least a 5-6 month build time.

I am open to other options, and have been doing a lot of research on new building methods and materials (such as SIPs), but none seem to match my budget and time frame. One other challenge here in Flagstaff is finding reasonable quality workers.

If anyone has any information they can share, I'd certainly appreciate it.

Thank you,

Rowdy Bristol

Send me a direct message and I will send you my email. Would love to see the plans and specs. Than let's schedule a call. We do mostly large multifamily housing but have done a lot of one off single family modular construction as well. If it's a good fit than we would be happy to work with you. Go to Kuvella.com to get a sense of what we are about.

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STUDIO 6 PROJECT DETAILS:

Building Type: Four Storey 63-Room Extended stay Hotel

Project Name: Studio 6 Hotel

Project Delivery Method: Turn-Key

Design-Build Project by Kuvella

Location: Bruderheim, Alberta

Typical Module: 12W x 60 L

Completed: December 2016

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Originally posted by @Karen Margrave:

@Michael S. Post a few of them here. Also, when you're doing projects, there's a thread specifically for posting ongoing projects to show progress photos, etc. Construction and Development Diaries though people post all their construction related stuff, it's specifically for DIARIES. I will go through and start weeding out the misplaced posts.

Posting now...

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Originally posted by @Karen Margrave:

@Michael S. That sounds interesting. Do you have any information and photos you can share of both the hotel and the housing units? What is the name of the hotel and where is it?

I have photos and all the info of the hotel and a 200 unit that we are building in Rio Rancho. This particular hotel that just finished was in Alberta. How can I send to you?

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Originally posted by @Jenifer Levini:

This conversation capsulizes the complexities of housing. And why strategies that work in some parts of the country are not relevant to others. And even that simple theories like supply-and-demand arent at the root of economic decisions.

@Jay Hinrichs that container development in Oregon looks amazing. Have they or you tried to do that in California? I had read that California wasnt officially allowing people to live in containers. Then I saw entire villages of containers behind high walls in San Francisco.

This is definitely not the case. In fact it's not really "container" housing that you're thinking of. It's modular manufacturing and this is what is needed especially in Southern California. We just put up a hotel all built using steel modular construction off-site and have close to a half a dozen affordable housing projects totaling in over 400 units under construction. And it's virtually impossible to tell from the outside or inside that these were built using shipping containers. It's quite fascinating and is literally the future of construction, especially in high density areas. Something that is definitely needed where I am in Los Angeles.

1 Vote

All Forum Posts by: Michael S.

Michael S. has started 2 posts and replied 40 times.

Post: Cold Calling Pre-foreclosures

Post: Building a hotel using steel based modular - HUGE SUCCESS!

Post: Building a hotel using steel based modular - HUGE SUCCESS!

Post: Drop in Sales Price for Boyle Heights Multifamily Units

Post: New Construction - Modular Homes??

Post: Seeking modular manufacturer/low cost build - Flagstaff AZ

Post: Challenges of developing mobile home parks, affordable housing

Post: Challenges of developing mobile home parks, affordable housing

Post: Challenges of developing mobile home parks, affordable housing

Post: Challenges of developing mobile home parks, affordable housing