Monday, November 4, 2019

Please Watch This Modular Industry Investment Video

If you work, invest or are in any other field related to the modular housing industry, please take 10 minutes out of your busy day and watch this video and let me know if what this guy is trying to sell is actually possible.


This is typical of what investment seminars in California sound like. But this one is about our industry, so please take the time to watch and comment.

6 comments:

Anonymous said...

If I didn't know better, this is a Ponzi scheme.

J. Riordan said...
This comment has been removed by the author.
J. Riordan said...

Brian's full presentation that leads up to the ending comments in ModCoach's post. He starts talking about his envisioned valuations for the modular company and especially his "Opportunity Zone Fund" at about 1hr 15mins in.

And here is the deck for the "Opportunity Zone Fund".

Builder Bob said...

J. Riordan, I already know about Opportunity Zones and his "deck" looks very nice but his S2A does not have a factory, hasn't built anything, has no production history and he doesn't appear to have any modular housing manufacturing experience at all. He's a Realtor with a far fetched dream.

Did you know he applied for a permit to erect a big tent to build his homes in until he completes his main buildings. He says he has contracts to build modular buildings but who in their right mind would sign a contract with someone with no track record in modular and no factory to produce homes.

Don't know what investor signed that contract but I have a bridge in Brooklyn I would like to sell him.

Michael S. said...

These guys would have more credibility if they discussed the history of the modular industry over the last 15 years or so and analyzed why some businesses have failed, merged or been sold. What would they do differently? They need to demonstrate an understanding of the category they are entering. They completely ignore the most obvious topic which is how they as newbies (who admit in their long-form presentation that they learned about modular in 2018) can avoid the pitfalls, traps and missteps that have afflicted others in the modular industry. How much money did Blu blow through without reaching the kinds of growth metrics these guys are talking about? Can these guys speak to that?

In the long-form presentation they refer to Plant Prefab raising money from Amazon Alexa Fund, Obvious and others. That is a good test. If you can raise money from professional venture investors who are scrutinizing your business plan, this doesn’t guarantee your success, but it lends more credibility to what you’re doing than if you’re out pitching individuals in hotel meeting rooms for a couple of hundred grand each. Did venture funds turn S2A down before they started pitching moms and dads? I can understand them wanting to avoid the scrutiny of a venture investor who wants a board seat etc. With mom and pop investors they can pivot and explain their way around future growth challenges but it's a slog pitching for funding.

Smart that they are pitching in Silicon Valley. They are speaking startup lingo. These guys will raise money. I have seen people fund all kinds of things I wouldn’t touch.

Anonymous said...

Opportunity Zones present capital tax deferral but unless you invest before the end of 2019 you shorten your deferral period and potentially your tax advantages. Interesting that one party is acting in all the capacities from fund manager to end product delivery.
"Let the Buyer Beware" is probably a good axiom to apply when reviewing the offering.
Most of the OZ funds I have meet with here in the East have been focused on what is shovel ready in the next six months.