Blog

Blog

CTO Ryan Leusch Speaks at NetZero 2020 Conference

November 19, 2020
Watch Ryan Leusch, S2A Modular Chief Technical Officer, explain how to achieve NetZero through advanced design and sustainable materials. Ryan Leusch – NetZero 2020 Conference from S2A Modular on Vimeo.
Read More

Surge in S2A Modular Pre-Orders Highlights Advantages of Modular Over Other Types of Construction

November 5, 2020

S2A Modular has experienced a sharp increase in residential and commercial orders for modular structures indicating an industry-wide increasing demand in modular construction over other types of factory-based construction methods.

S2A Modular – California-based creator of the first electrically self-sustaining, custom and smart-connected “GreenLux” luxury residences and commercial buildings, has experienced a sharp increase in residential and commercial orders for modular structures indicating an industry-wide increasing demand in modular construction over other types of factory-based construction methods.

Over the past two years, S2A Modular has emerged as an industry leader in advanced modular design that utilizes the latest technology in home modular building to not only streamline the overall construction process, but also implement organic, green products to achieve high-levels of efficiency and sustainability. When these technologies are applied to S2A Modular’s traditional and contemporary home designs with a wide variety of customization options, it’s clear why modular has become the choice of consumers and builders throughout the country.

Building homes and commercial structures in factories is not a new concept. It has been around for years, but only in the last few decades has it begun to become more mainstream. However, not all factory-built structures are the same — manufactured, mobile and container homes have several limitations in design, scale, efficiency and sustainability.

Manufactured Homes

While affordable, these are generally very simple, rectangular structures that are designed like a large mobile home. Most homes are built in two halves in a factory on steel frames which are permanently attached to the home for transport. The designs have limited customization options and because of their shape, most designs have simple rectangular rooms with and basic floor plans. Furthermore, according to an article by SFGate, manufactured homes often lack things found in site built and modular homes like vented attics that greatly reduce HVAC efficiencies, and have low-quality subfloor construction that can sag over time.

Mobile Homes

Mobile homes, which are another type of manufactured home, can be great for homebuyers with tight budgets who might not need much space. Sold as a single-width trailer or “doublewide” that is joined in the middle, one key difference is that because they are not placed on a permanent foundation, they are considered personal property instead of real property. Financing a mobile home usually requires a “chattel loan” loan which can be difficult to qualify for, and is very different from a traditional mortgage. Finally, mobile and manufactured homes are only built to meet Housing and Urban Development (HUD) standards, not true building codes like real estate.

Container Homes

One of the latest trends in residential construction is converting old shipping containers into homes. Containers were used to build extremely small “tiny homes” which highlighted creative use of space and simplified living. Now, architects around the world are getting more creative and building large homes using several containers. While a clever idea, building homes out of recycled shipping containers has certain drawbacks. They are not ecologically friendly, there can be potential issues with structural integrity, and potential exposure to harmful chemicals that were used to treat containers for rust and corrosion. Obtaining building permits for container homes can also present challenges in several states due to the unique and somewhat unproven style of construction.

Modular Homes

Modular construction is far superior and in an entirely different category than all other styles of construction. California tech company, S2A Modular, has taken the best concepts in construction to create an entirely new category of luxury, sustainability and efficiency. Designed and engineered from the ground up, S2A Modular’s homes and commercial buildings are more efficient, sustainable than any other homes in the world. The company’s properties can also achieve net zero energy independence with no reliance on an energy grid due to extremely efficient FreeVolt graphene solar panels and a home energy storage system.

Other factors that elevate modular construction are cost efficiencies, speed of construction, reduced waste and increased quality due the climate-controlled environment which protects workers and materials from bad weather, theft and vandalism. Several modules can be built simultaneously to allow a home to be built in weeks, not months, and because the interiors, exteriors, cabinetry, HVAC, electrical and plumbing work is all completed in the factory, installation and site work is minimal and often completed quickly.

In the end, modern design, high-end materials, sustainable building materials, advanced smart home technologies and net zero energy efficiency help illustrate the advantages of S2A Modular and modular construction overall.

 

Read More

Modular Construction Using Innovation & Technology to Challenge Traditional Construction Methods

August 14, 2020

Across America, it’s not hard to find new housing developments or commercial buildings under construction. These developments have several homes in varying phases of construction with building materials scattered across construction sites that are also littered with tons of excess materials, trash, equipment and other debris that have become a regular landscape of the construction process. This reality represents an outdated form of construction being challenged by the technology-inspired modular construction industry.

Technology in the past 30 years has changed how we live our lives, how we communicate, how we shop and especially, how things are manufactured. Most industries have embraced these changes because it produces higher quality products that can be manufactured at lower costs, but it has not fully taken hold in the construction industry. Well, change is on the horizon and S2A Modular is set to lead the #GreenLux revolution.

Old Days – Old Ways

Homes and commercial properties have been built the same way for decades, completing the building process one step at a time, from the ground up, often using several different crews of subcontractors that take 6 to 12 months, or more, to build a finished home or commercial property. While advancements in some construction technologies have streamlined certain aspects of this process, site-built construction is still plagued with several challenges that are difficult to overcome:

  • Quality control – Crews from different sub-contracted companies bring different, often lower quality standards causing inconsistencies and lower overall build quality.
  • Theft – Jobsites are frequent targets for thieves that look to steal tools and building materials.
  • Vandalism – Construction companies spend millions each year repairing damage from vandals.
  • Security Expenses – To combat vandalism and theft, construction companies are often relegated to spend millions in security which is later added to the final costs of new construction.
  • Weather – Inclement weather conditions cause expensive delays in construction and damage structures and building materials.
  • Time and Delays – Combine the challenges faced by site construction with the coordination of various subcontractors, reliable labor, building inspections and material deliveries, site-built construction is slow and faces several delays which adds thousands to the construction project.

 

Modular Construction – Quality, Efficiency, Lower Costs

The old ways are just that, old ways. Homes and commercial properties are inefficient and take a long time to build so today’s innovators have set out to change that paradigm by using technology and forward thinking to solve some of the construction industry’s most complex problems.

Using an in-depth understanding of the current manufacturing industry, today’s modular construction giants like S2A Modular have tapped into these methods to fundamentally change the way homes and commercial properties are built. They have been able to mitigate nearly all the challenges associated with site-built construction by using modern manufacturing techniques that not only create superior products, but also incorporate many new technologies and building materials that have helped streamline the entire construction process.

It’s no secret that early modular construction wasn’t able to challenge site-built construction because of several limitations. Until recently, nearly all modular buildings were inexpensive homes built with cheap materials and very basic designs. Companies like S2A Modular are breaking that mold and developing superior homes that break the traditional modular construction perception:

  • Better Work Environment – Today’s modular factories are large, climate-controlled structures that create a perfect work environment giving skilled trade professionals a great work atmosphere that allows them to do their best work.
  • Construction Efficiency – Instead of homes being built in one phase after another, modular construction companies can build several aspects of a home simultaneously, in modules that are nearly complete with interior furnishings and assembled at the job site in days, not weeks.
  • Speed of Construction – With several rooms or modules of a structure being built at the same time, the overall construction timeline is cut in half or more which reduces the move-in timelines for developers and individual home buyers.
  • Lower Costs – In addition to lower per-square-foot costs compared to site-built construction, faster construction means reduced interest on construction loans and other expenses related to the construction timeline.
  • Reduced Waste – A factory environment allows construction crews to maximize the use of materials and reduce overall waste and excess packing materials. Modular construction can reduce waste by an average of 90 percent according to an article by the Modular Building Institute (MBI) titled Eliminating Waste in Design Phase.
  • Higher Quality – Skilled personnel working in a climate-controlled working environment, utilizing the latest technology and high-quality building materials can create higher quality homes and commercial properties that are stronger and superior that site-built properties.
  • Surge Capacity – A factory environment allows companies like S2A Modular the ability to add a second or third shift to help match increases in demand.

 

The comparison between these construction types is not anecdotal, it’s reality. More and more homes, hotels, multi-family residences, accessory dwelling units, apartment buildings, high-rises and more are being built using modular construction because of the long list of advantages over site-built construction.

S2A Modular is shattering old ways of construction and ushering in a whole new era in construction. They have more than 5,000 preorders of all types of structures ranging from single family homes and multifamily buildings to world-class hotels, commercial mixed-use buildings and specialized “SH1” buildings designed to tackle the homeless crisis in the United States. The impact is that home buyers and real estate developers will have ready access to higher quality, energy-efficient homes, hotels, multiuse facilities and commercial buildings, which are being produced in a technologically advanced factory using industry leading construction techniques. Join S2A Modular and the #GreenLux revolution.

For more information on S2A Modular investment opportunities visit s2amodular.com/investors.

For more information for developers and commercial property opportunities, visit https://www.s2amodular.com/builders-commercial/.

For general information on S2A Modular’s #GreenLux home revolution, visit s2amodular.com.

Read More

Modular Construction’s Cost Effectiveness, Sustainability and Speed of Construction Quickly Attracting Global Real Estate Investors and Developers

August 14, 2020

S2A Modular’s GreenLuxHome 13

Since its inception, modular construction has significantly evolved from the early days of low-cost, simple, one and two-piece rectangular structures to an all-new evolution of luxury homes, hotels and commercial properties featuring stunning architecture, modern amenities and luxurious design. This industry paradigm shift is destroying common modular construction misconceptions and quickly gaining the attention of everyone from big-name real estate and technology investors to large-scale developers and everyone in between.

As modular construction companies from around the world implement new concepts, they are able to demonstrate the future of construction which is being driven by things like smarter technology, sustainable materials and efficiency. Not surprisingly, this has caused seeing a sharp increase in the demand for modular commercial and residential real estate. But the big question is: why now? Modular construction isn’t a new concept, it dates back to the 1800s, but with technology taking command of nearly every industry on the planet, the commercial and residential real estate markets are now on board to realize the advantages of this style of construction.

Advanced manufacturing technologies, revolutionary advancements in energy efficiency and drastic cost savings have provided a “boom” in modular construction and now, more than ever, it is attracting builders, developers and investors from across the globe. Let us now take a minute to break down why this is happening, and even more importantly, why modular construction is the perfect investment for all real estate, investors, developer and the individual homebuyer.

Benefits of Modular?

Defined as a sustainable construction delivery method utilizing offsite manufacturing techniques – modular construction most always takes place in a factory setting with several work stations that build and complete the portion of a structure, like a kitchen or bathroom, in several deliverable sections which can be transported by a standard tractor trailer to the jobsite. At the job site, the modules are craned into position and permanently placed on a foundation. The assembly process takes weeks, not months, not including site work like driveways, exterior finishes like stucco and other finishing work. Additional benefits of modular construction include:

  • Controlled factory building conditions
    • Modular factories defend against typical issues that can arise during the build process including extreme weather, harsh climates, and outside intruders, like vandals, bugs and pesky animals.
    • By not having to face poor weather conditions or daylight constraints, factories are able to utilize shift work and have experts working building modules 24 hours per day. Ultimately, this decreases build time by an average of 50%, saving developers and homebuyers thousands of dollars in interest.
  • Strength
    • Modular homes are inherently stronger than stick built homes because they are built with added strength to enable the modules to be transported and be craned into position which requires stronger frames and overall construction techniques that remain part of the home forever.
  • Higher quality construction
    • Contrary to common misconceptions, modular buildings are much higher quality and much stronger than site-built buildings due to stringent quality control and being designed and built to withstand the rigors of transportation.

Decreased Cost Compared to Site-Built Counterparts

According to a recent blog on TheNest.com that highlights the differences between modular and site built homes, the article states modular homes cost on average 10 – 20% less than traditional stick built homes. This is because of the efficiency of the modular build process and massive reduction in material waste. S2A Modular’s #GreenLux properties are even less expensive in the long run since they are engineered from the inside out to be vastly more energy efficient. As expected, per-square-foot costs will vary depending on the types of finishes and other premium design features added to the home, however, the cost savings don’t just stop at the price per square foot.

Owners of S2A Modular buildings also see great cost savings in the overall cost to operate the home or commercial property throughout its life because of the sustainable, green technology engineered into S2A Modular buildings which eliminates the most expensive utility bill – electricity.

  • 100% NetZero:
  • Proven Statistics
    • Because of their cutting-edge design, FreeVolt graphene showed a proven production increase of 20 to 43 percent over competitor solar panels in independent testing. This not only increases the overall value of the property, but it also eliminates the building’s energy bill. In many cases, it also creates a net-positive situation that results in excess power that is sold back the energy grid. New legislation and updated net metering regulations are helping home and business owners receive the maximum amount of compensation for overproduction. Net positive energy turns a building into a passive income generator and accelerating the property’s return on investment.

 

Why is Now the Time to Invest?

So why are so many investors, small and large, hopping on the modular construction industry bandwagon? To put it simply: bigger and faster returns on investment than traditional real estate opportunities. Investors working with S2A Modular are passionate in supporting the company’s mission of creating luxurious, sustainable properties, and they want to be a part of the #GreenLux revolution.

  • Revolutionary Build Process = Lower Costs & Higher Returns
    • Controlled factory conditions save time — Several teams can work simultaneously on different parts of a structure, decreasing common construction delays and increasing efficiency of the build. When time is saved and the work is done faster, reduced labor expenses mean reduced overhead and lower overall build costs.
  • Future-Forward Materials
    • S2A Modular homes are built with the latest organic materials, many manufactured directly by S2A Modular, providing super quality materials at lower costs.
    • Property Week noted offsite building construction can create huge carbon savings in both embodied carbon emissions and operational carbon, which is the energy used once built. This is vital for investors looking to future-proof assets against tightening energy-efficiency regulations.

For more information on S2A Modular investment opportunities visit s2amodular.com/investors.

For more information for developers and commercial property opportunities, visit https://www.s2amodular.com/builders-commercial/.

For general information on S2A Modular’s #GreenLux home revolution, visit s2amodular.com.

Read More

S²A’s #GreenLuxHome Will Feature the World’s Only Patented Graphene Solar Panel

March 9, 2020

S2A Modular is breaking through the industry once again with its latest announcement of becoming the only modular residential and commercial building entity in the world with the right to feature FreeVolt USA’s patented PV Graf™ technology. This means that all #GreenLuxHomes will come equipped with this new and revolutionary technology which outperforms traditional solar panels and provides years of clean, renewable energy.

This technology will change the game in the modular/sustainable energy industry, bringing unprecedented energy production, durability, immunity to climate, and more to the table and outperforming traditional solar panels in every aspect. The near-indestructible graphene eliminates degradation, moisture threat, and temperature effectiveness issues that other solar panels face. And ultimately, the PV Graf™ technology will ensure #GreenLuxHome owners will generate more energy than any other competitor on the market, offering direct savings on utility bills and the opportunity to sell that energy back to the grid and get paid by major utility companies.

Now that you know what graphene can do, let’s take a look at what graphene really is, the benefits of the material, and how this technology will disrupt the industry and work smarter, and harder for our customers.

What is graphene?

  • You may want to put on your scientist hat for this one – graphene is an allotrope of carbon in the form of a monolayer of atoms in a two-dimensional hexagonal lattice in which one atom forms each vertex. It is the basic structural element of other allotropes, including graphite, charcoal, carbon nanotubes and fullerenes. Makes sense, right?
  • Or, in layman’s terms, it’s a single layer of carbon atoms, tightly bound in a hexagonal honeycomb lattice that is being used to advance technology across a variety of industries.
    • Some of the ways in which it’s been used are:
      • Anti-corrosion coatings and paints
      • Precision sensors
      • Flexible displays
      • Faster DNA sequencing, and more

 What are the benefits of graphene solar panels?

  • Absorbs More Light
    • The graphene panels are almost transparent, allowing the panels to absorb 2.3% more light than any other solar panel on the market
  • Powerful Technology
    • Hybrid cell technology –thin film tech combined with crystalline silicon tech – produces 35% higher efficiency modules that last longer, are less prone to micro-damage, and even when damaged, still work with almost zero loss of productivity.
  • Smarter Energy
    • Our #GreenLuxHomes will use FreeVolt PV Graf™ panels and a home energy storage system, a combination that will not only eliminate costs associated with energy but can even allow room for utility companies to pay residents for contributing energy to the grid.
  • Quicker Return on Investment
    • Due to the superior technology used in the graphene solar panels, customers will average more than 35% higher return that your typical solar panel. Meaning, you’ll save money faster and watch your investment quickly start working for you.
  • Long-lasting Warranty
    • While the panels are built to last – in fact, they’re up to 200 times stronger than steel – we understand that unexplainable accidents can happen at any time, which is why we offer a 30-year warranty on the solar panels.

 

 How can I learn more about this solar panel technology?

We would love to provide more details on our industry-leading graphene solar panels. Please contact us at www.s2amodular.com/contact and one of our team members will reach out to you as soon as possible.

Read More

S²A Licensing Program Creates Worldwide Expansion Opportunities

December 20, 2019
modular home builder

S2A Modular Licensing Program: What Is It and How Can You Get Involved?

If you’ve been keeping up with the latest and greatest S2A news, you probably saw that we recently announced something pretty exciting — S2A is growing! In fact, growing is an understatement. S2A is expanding worldwide with the implementation of our new turn-key licensing program.

Cool! What exactly is the S2A Licensing Program?

With the S2A Licensing Program, approved licensees will have the opportunity to bring #GreenLux commercial and residential buildings to new areas of the world using all S2A’s coveted resources from a variety of entities and suppliers (soon to be announced).

Why Did S2A Modular Decide to Start a Licensing Program and What Does This Mean for Me?

We’re already experiencing high demand for our #GreenLuxHomes, with hundreds of units already pre-ordered and some major projects about to enter the beginning stages. We recognized this opportunity unfolding to bring our electrically self-sustaining, smart-connected luxury homes and commercial buildings to different regions – where there’s even more opportunity for expansion.

We’ve built an alliance with major industry partners to help build S2A Modular MegaFactories across the nation. Utilizing all our resources in addition to the resources that come with these industry partners, we’ll be seeing a massive expansion of the #GreenLuxRevolution throughout the world.

For the general consumer/homebuyer, this means we’re bringing affordable, sustainable #GreenLuxHomes to you, wherever you are, even faster than before.

For industry folks, this means new, exciting opportunities to join the S2A team and be a part of our worldwide expansion by becoming a licensee.

How Does it Work?

As an official licensee of S²A Modular, you will receive the following as part of our commitment to excellence.

  1. S²A and our affiliates will work with you on the design, construction, and set up of your new S²A facility.
  2. Our team will be on-site during construction, we will set up all working stations, and train your staff on all aspects of running the factory.
  3. As a part of S²A Modular, you will receive access to our in-house team of designers, engineers, and all affiliate products.
  4. Fire-proof green products will be produced at your new S²A Modular Factory including, fire-proof siding, roofing, and stucco.

 

Great! How Do I Get Involved?

For potential licensees/those who are looking to be a part of the #GreenLuxRevolution by opening and operating an S2A Modular MegaFactory, you can download the application on our website here and request more information from a team member, here.

More questions?

No problem, you can read more about the S2A Licensing Program here. Feel free to contact us if you want to talk with an S2A team member one-on-one about getting involved and what our licensing program can do for you.

Read More

Net metering, Energy storage and What it Means for You

September 4, 2019

If you’ve visited the S2A blog before, welcome back! You should already know all the ins and outs of net zero, from our previous blog post, but if you missed it, take a look at how we achieve net zero here.

Now that you’re all caught up, we’re going to chat about net metering, energy storage, the latest and greatest news surrounding the two, and most importantly, what that means for you.

First things first: What is net metering?

Net metering is the state-regulated mandate that says utility companies are required to pay solar customers a state-determined rate for excess energy produced by their home’s energy system. With net metering, electric utility customers using solar typically see thousands of dollars in savings on electricity costs over the lifetime of their solar panels.

Net metering has become central to the solar business model. It allows homeowners, businesses and commercial facilities to receive credits or compensation for the surplus electricity generated by their solar system.

How does this work?

Throughout the day, your solar panels generate electricity from sunlight and all that energy is fed into your home’s energy storage system. Once it’s reached full capacity, the surplus energy is sent into the electrical grid where you are given credits by the electric company that can be used for energy you might need from the grid during periods when your solar system isn’t able to generate to full capacity (nighttime, gloomy days, etc.). Depending on the energy market, you may even be able to opt for a monetary compensation for the surplus energy.

This brings us to our next point: energy storage systems.  What in the world are energy storage systems?

It’s simple. Energy storage systems are in-home (or on-premise) intelligent battery systems that can store electricity for use in the future. Energy storage systems offer flexibility for managing energy consumption and provides an alternate power supply.

What’s in the news what does this mean for you?

The Federal Energy Regulatory Commission recently passed FERC Order 841. This order directs independent system operators (ISO) and regional transmission organizers (RTO) to develop rules opening their wholesale energy, capacity and ancillary services markets to energy resources. Simply, this makes storage eligible for the wholesale market – removing barriers that could prevent resources from realizing their full value. This essentially eliminates the energy market monopoly and creates more providers for you to choose from, which means you’ll see better, more competitive pricing.

Net metering and energy storage allow you to be compensated for your surplus energy. Not only are you saving on electric bills, but you’re seeing a return from creating excess energy. Additionally, with recent news on energy blackouts due to various electric companies not being able to supply enough energy to the grid – net metering helps provide the grid much needed relief, which can help prevent these blackouts in the future. The grid, as it stands, desperately needs relief to prevent families losing power and creating detrimental hardships (like those who have vital medical needs dependent on electricity).

Want to learn more? No problem. We’ve rounded up some of our favorite informational resources below:

https://www.youtube.com/watch?v=wId3Llpr4ZM

http://energystorage.org/resources/kicking-tires-order-841-diving-details-opportunities-and-challenges

https://www.energy-storage.news/news/california-opens-door-to-energy-storage-net-metering

Read More

Breaking Down Net Zero

July 19, 2019

You may have seen “net zero” homes popping up around the globe leaving you wondering “what exactly is net zero and what does it do for me?” There’s a worldwide push for sustainability and since buildings are one of the largest consumers of fossil-fuel derived energy, net zero technology is taking center stage and is expected to revolutionize the way buildings are powered in the future. S2A Modular is here to provide an easy-to-digest, simple explanation of what exactly it means to have a net zero or zero-energy home.

What is Net Zero?

As defined by the U.S. Department of Energy, a zero-energy building (ZEB) produces enough renewable energy to meet its own annual energy consumption requirements, thereby reducing the use of non-renewable energy in the building sector.

Sounds great, what does that really mean?

A zero-energy building refers to a building with zero net energy consumption, or in more simple terms, it generates through solar, wind or other means an equal or greater amount of energy than it uses to run all electrical components of the building By combining renewable energy (such as the energy created by solar panels) and the building’s built-in energy efficiency to consume only as much energy as is produced onsite, the building’s total energy consumption equals out to net zero and the elimination of an electric bill.

What does this mean for me?

Well, if your home is electrically self-sustaining, like one of S2A Modular’s #GreenLuxHomes, this allows you the opportunity to save thousands annually on electric bills – net zero equals no electric bills. However, most zero-energy buildings are still connected to the grid for the few instances when the building’s renewable energy generation cannot accommodate the needed amount. Thanks to this, if your home generates more energy than is needed, you can actually contribute that surplus energy back to the grid. This means energy companies would be paying you for your energy contribution.

What does this mean for the environment?

Amidst growing concerns on increasing energy prices, energy independence and climate change, statistics show that buildings are the primary culprit of energy consumption in the U.S. By shifting buildings to energy-efficient methods, there’s a great opportunity to significantly reduce energy usage just in the building sector and decrease dependence on fossil-fuel-derived energy.

Is this too good to be true? Sum it up for me.

We hear ya! This sounds all too good to be true, but the reality is net zero is far more achievable than you may think. Zero-energy buildings are popping up globally, with many commercial and residential property developers getting on board. By creating electrically self-sustaining buildings that can achieve net zero, both large corporations and homeowners can save money, benefit from efficiencies and make a huge impact in creating a more sustainable world. In fact, many state and local governments are even shifting toward zero energy building targets.

If you’re looking to learn more about having a zero-energy home, you can contact our S2A Modular energy experts.

Read More

The 411 on Opportunity Zones

June 25, 2019
modular home builder

If you’ve been following the news, you have probably heard major buzz around the phrase “Opportunity Zone.” That’s probably because the Tax Cuts and Jobs Act of 2017 contained a special program called the “Qualified Opportunity Zone Program” which gained national attention because it was specifically designed help build affordable housing in low-income areas around the country. Definitely a buzz-worthy topic in our opinion.



So, let’s get to the basics.



What exactly is an Opportunity Zone?

As defined by the IRS, an Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Certain areas can qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.
The Qualified Opportunity Zone program was developed to help kickstart economic development and job creation by investing in businesses in low-income areas. The Tax Cuts and Jobs Act of 2017 allows significant tax incentives to investors, motivating them to invest into Opportunity Zones. By investing in opportunity zones, investors can defer and even potentially reduce tax on capital gains, which is invested into properties located in the opportunity zones.



How does the program work?

This program encourages and rewards investors who have capital gains from the sale of appreciated assets by letting them defer the capital gains tax when reinvesting them into a Qualified Opportunity Fund. In other words, The Opportunity Zones program grants investors a huge opportunity to help improve low-income communities while reducing the tax liabilities in the investment.



What is a Qualified Opportunity Fund?

A Qualified Opportunity Fund is an investment vehicle set up as either a partnership or corporation for investing in certified properties located in a Qualified Opportunity Zone. The S2A Opportunity Zone, LP, is an example of this.



What exactly are the tax benefits?

Investors who engage in a Qualified Opportunity Fund can benefit from three capital gains tax benefits:

Deferment of gains: An investor could invest their capital gains into the Opportunity Fund, so the tax due on those gains is deferred until the investor sells his interest in the fund.

Step-up in Basis: The investor can choose to hold the investment for five years, at that point, the payment of $200,000 is completely deferred, plus the investor gets a 10% step-up in basis on the original deferred.

Elimination: If the investors holds their interest in the fund for more than 10 years, they will pay no capital gains tax on the appreciation of the asset.



What does this all mean?

Opportunity Zone Funds are a huge opportunity to revitalize low-income areas and make an impactful difference. Once areas are revitalized, they’re proven to see a decrease in crime, increase in property values and become overall more desirable neighborhoods. Additionally, revitalization efforts trigger an increase in job creation for local businesses. Opportunity Zone Funds encourage investors to invest into these zones, improving communities and underprivileged areas. In return for that investment, they are rewarded with tax savings that can reap sizable rewards.



If you’re interested in learning more, click here to read the IRS’s Frequently Asked Questions about Opportunity Zones.

If you’re interested in being part of S2A’s efforts to help improve low-income communities through this program, you can view our recent press release on our involvement Here.

Read More

Modular Homes Vs. Site-Built Homes – What’s the Deal?

May 15, 2019

Residential homes and commercial properties have used the same outdated method of construction for years. This method is called “site-built construction” and here’s how it works: Construction materials are delivered to the site and a crew builds the structure in phases until its complete. Construction is halted several times for inspections, material delivery delays, inclement weather and possible labor issues. Now, it’s time for the industry to see a change – one that will uncover the benefits and endless possibilities of using a modern method: factory-engineered properties.

Factory-engineered construction (also known as prefab or modular construction) is a significant technological shift – for the better. Traditionally, when homes are built on-site, materials are exposed to extreme weather conditions that can ultimately: damage and degrade their structural integrity, reduce the build quality, and delay construction timelines. Prefabricated homes eliminate these challenges, which is causing a mass shift of industry leaders to opt for factory-engineered construction.

What exactly is factory-engineered construction, though? Factory-engineered construction is the process of building properties in a factory; in room-size, modular segments that are later assembled onsite. This increasingly-popular method is praised for its seamless production of high-quality materials – for less than the price of a traditional home.

What does this mean for the future? Well, industry professionals are looking to “prefab” as a one-size-fits-all solution to a variety of problems the industry is facing, including: housing crises, affordable housing, and housing shortages from natural disasters.

Breaking it all down: here’s what you need to know about why “prefab” homes are the future of residential and commercial construction:

Cost Efficiency:

Although the same materials and labor are used in both site-built and modular construction, the savings achieved from the massive efficiencies in “prefab” homes result in easier financing and overall lower cost.

Our S²A Modular homes cost less per square foot, which in turn, allows the homebuyer to qualify for lower-cost financing during construction. Site-built homes can incur 12 months of interest waiting for

completed construction, but our modular properties only take three months to build. This reduces the number of interest payments that need to be made, creating huge savings.

Controlled Environments:

We build our homes in a controlled environment, as opposed to onsite. The “MegaFactory” manufacturing center allows all the same work that would be completed onsite to be achieved in dedicated, climate-controlled work pods. This creates a controlled environment for precise construction, independent of environmental factors that could cause delays or compromise material quality. When homes are built in our controlled environments, they are constructed in a fraction of the time – which means a fraction of the cost for homebuyers.

Waste Reduction:

The controlled environment of the “MegaFactory” allows precise and proper use of resources for key efficiencies. It’s much easier to plan for materials accurately by only purchasing the materials needed, reducing large amounts of waste often found on job sites.

Thanks to the huge benefits curated from efficiencies such as, controlled environments, waste reduction and cost savings, factory-engineered properties are undoubtedly taking the stage in the future of commercial and residential construction. If you have further questions or want to learn more about the process of modular construction, reach out to us here. An S²A Modular team member will be in touch shortly to help elaborate on the massive benefits from modular construction.

Read More