#How to Invest in Multifamily Real Estate

[bullventurecapital]

How To Invest In Multifamily Real Estate: Best Things To Know

Comprehensive market research plays a crucial role in identifying areas with strong rental demand and growth potential. By carefully selecting markets, investors can enjoy the benefits of stable rental income, long-term property appreciation, and a wide range of investment prospects. Investing in multifamily real estate is the best choice for financial stability.

Strategic Decision-Making Anchored by Clear Investment Goals

Establishing precise investment objectives empowers investors to make strategic decisions aligned with their goals. Whether prioritizing consistent rental income or capital appreciation, clearly defined goals enable investors to tailor their investment strategy for maximum returns.

Building strong connections within the real estate sector provides access to valuable opportunities and insights. Through networking with industry professionals, investors gain access to exclusive deals, financing alternatives, and expert guidance, facilitating informed decision-making and maximizing investment potential. Investing in multifamily real estate can be extremely beneficial for you.

Informed Investments Through Thorough Property Analysis

Conducting a thorough analysis of potential multifamily properties is essential for making informed investment choices. Evaluating factors such as location, rental potential, expenses, and market trends empowers investors to identify properties with lucrative income potential and favorable return prospects. How to invest in multifamily real estate is indeed a popular question that many people have. Exploring various financing avenues offers investors flexibility in structuring their investments. Whether leveraging traditional mortgages, government-backed loans, or private financing, investors can optimize their capital structure, minimize expenses, and maximize investment returns.

How To Invest In Multifamily Real Estate For Best Experience

Implementing a robust property management strategy ensures smooth operations and maximizes returns. Whether managing properties independently or outsourcing to professional management services, effective management enhances tenant satisfaction, minimizes vacancies, and optimizes rental income. Regularly monitoring property performance and market dynamics enables investors to adapt their strategies for sustained success. By staying proactive and informed, investors can seize emerging opportunities, mitigate risks, and optimize their multifamily real estate investments for long-term profitability. Investing in multifamily real estate offers a wealth of benefits for wealth accumulation and passive income generation. By emphasizing market research, setting clear investment goals, expanding networks, conducting thorough property analysis, exploring diverse financing options, implementing effective property management, and continuous monitoring, investors can unlock the advantages of multifamily real estate investing and achieve their financial aspirations.

[growcapitalgroup]

Learn how to maximize your return on investment (ROI) through a multifamily value-add strategy. Discover effective methods to boost your ROI https://growcaptoday.com/multifamily-value-add-strategy-how-to-boost-your-roi

[paperboi02]

Our guest speakers, Andy and Anthony, are Los Angeles area investors. They will be educating us on how we can make a lot of money house flipping and investing in apartment buildings in Los Angeles.
Andy and Anthony have achieved success as both flippers and multifamily investors. They are experienced Los Angeles multifamily investors. In 2020, they purchased a triplex located two blocks from both the Forum and the So-Fi stadium and only 15 minutes away from LAX. The location of the property makes it an ideal option for travelers from out of town. Originally, the property was a 3-plex but was expanded to a 5-plex in order to increase rental income. Anthony has been able to achieve significant success as a real estate investor, having scaled his buying and flipping business to over $20M in assets transacted within just 6 years. Andy has also been successful, having flipped and sold properties worth over $14M in the last 4 years.

[krogstpartners]

Unlocking Opportunities: A Guide to Choosing the Right Real Estate Investment Firm

Introduction:

Investing in real estate can be a lucrative and rewarding endeavor, especially in the realm of multifamily real estate investments. However, navigating the complex world of real estate investment requires careful consideration and expertise. One crucial decision is choosing the right real estate investment firm to partner with. In this guide, we will explore the key factors to consider when selecting a real estate investment firm and how it can unlock opportunities for your investment success.

Understanding Multifamily Real Estate Investments:

Multifamily real estate investments involve the acquisition and management of residential properties with multiple units, such as apartment buildings or condominium complexes. These investments offer unique advantages, including steady cash flow, potential tax benefits, and the ability to leverage economies of scale. When delving into multifamily real estate, partnering with a reputable real estate investment firm is essential for maximizing returns.

The Role of a Real Estate Investment Firm:

A real estate investment firm serves as a valuable partner in your investment journey, providing expertise and guidance throughout the process. These firms specialize in identifying investment opportunities, conducting due diligence, managing properties, and optimizing returns. They also offer services such as asset management, investment strategy development, and portfolio diversification. When selecting a real estate investment firm, consider the following factors:

Track Record and Experience:

Look for a firm with a proven track record in multifamily real estate investments. Evaluate their past performance, considering factors like property acquisition, asset management, and returns on investment. A reputable firm will have a strong history of success and the expertise to navigate market fluctuations.

Expertise in Asset Management:

Effective asset management is crucial for the success of your investment. A reliable real estate investment firm will have a robust asset management team that handles property operations, tenant management, and financial reporting. Assess the firm's approach to asset management, including their strategies for maintaining high occupancy rates, minimizing expenses, and enhancing property value.

Investment Strategy and Diversification:

A well-defined investment strategy is essential for long-term success. Consider the firm's investment philosophy, risk tolerance, and approach to diversification. A reputable real estate investment firm will have a clear strategy tailored to multifamily real estate investments, which aligns with your investment goals.

Market Knowledge and Research:

The ability to identify emerging market trends and opportunities is crucial in real estate investment. Evaluate the firm's market research capabilities, including their understanding of supply and demand dynamics, demographic trends, and economic indicators. A knowledgeable firm will have the ability to identify investment opportunities before they become widely known.

Transparency and Communication:

Open and transparent communication is vital when partnering with a real estate investment firm. Assess their communication channels, frequency of updates, and reporting practices. A trustworthy firm will keep you informed about property performance, market conditions, and any significant developments that may impact your investment.

Conclusion:

Choosing the right real estate investment firm is a critical step towards unlocking opportunities in multifamily real estate investments. By considering factors such as track record, asset management expertise, investment strategy, market knowledge, and transparency, you can make an informed decision that aligns with your investment goals. Remember, a reliable real estate investment firm will not only provide financial returns but also offer valuable guidance and support throughout your investment journey. With the right partnership, you can unlock the potential of multifamily real estate investments and achieve long-term success.

[bcgroup268]

Is There a Great Construction Consultant for Commercial Real Estate and Multifamily Development?

Real estate construction consultants have become increasingly important in the current economy, particularly in the development of commercial real estate and multifamily housing. As the real estate market continues to flourish, there is increased competition among developers to secure projects and complete them on time and on budget. It is therefore increasingly important for developers to partner with experienced construction consultants that can help them navigate the ever-changing landscape of building regulations, zoning standards, and other legal requirements. 

BC Group Inc. is a full-service construction consulting firm that specializes in providing comprehensive advice on commercial real estate development and multifamily housing projects throughout the western United States focusing on Oregon and Washington. With more than 20 years of experience in the industry, BC Group has established itself as one of the leading multifamily development advisors. The company provides comprehensive advice on how to maximize value from each project through efficient planning, budgeting, execution, and delivery stages. 

At BC Group their team consists of highly trained experts who are familiar with all aspects of developing successful projects in any market. Their team includes architectural designers, construction specialists, financial advisors, attorneys, engineers, surveyors, draftspeople, and project managers – all working together to ensure that each project meets or exceeds clients’ expectations while staying within budget constraints. By leveraging their expertise in design-build delivery systems along with effective cost estimating tools such as electronic document management systems (EDMS), BC Group’s team can minimize risk exposure while maximizing quality assurance during every stage of development. 

In addition to providing consulting services for both commercial real estate developments and multifamily housing projects nationwide, BC Group’s team is also well versed in public/private partnerships (PPP) agreements for local ordinances or state legislation related to green initiatives or emerging technologies like solar or wind power systems. By leveraging their PPP experience early on in the development process they can help clients find opportunities for incentive funding or tax credits that will help make their projects more economically feasible while still meeting all applicable standards set by regulatory agencies such as HUD or EPA standards. 

BC Group's services extend beyond just advising during the planning stages; they provide full-service support throughout every phase of construction including site selection/development; preconstruction planning; bid tracking and evaluation; contract negotiations; risk assessment and management; field supervision and inspection; cost control and mediation; change order management; dispute resolution assistance; completion inspections and closeout assistance; progress payment tracking/analysis; post construction warranty monitoring/resolution assistance; final punch list review/completion assistance; LEED certification compliance guidance and much more! 

When it comes to finding a reliable consultant for commercial real estate development or multifamily housing needs look no further than BC Group. With decades of collective experience under their belt combined with unique strategies for minimizing risk exposure without compromising quality assurance makes them one of the premier consultancies for any budget conscious developer looking to maximize value from their investment property portfolio. Originally published at - https://bcgroup268.livejournal.com/442.html

[tameblog]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link

[ramestoryworld]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link

[alexha2210]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link

[bullventurecapital]

How To Invest In Multifamily Real Estate – Understand The Process

In real estate investing, multifamily properties have emerged as a favored asset class for many savvy investors. Offering the potential for stable cash flow, appreciation, and various tax benefits, multifamily real estate presents a compelling opportunity for those looking to build wealth through property investments.

Why Multifamily Real Estate?

Multifamily properties, which encompass apartments, condominiums, townhomes, and other residential buildings with multiple units, offer several advantages over single-family homes or other types of real estate investments:

Diversification - Here investing in multifamily real estate allows for diversification across multiple rental units, reducing the risk associated with vacancies or non-payment of rent from a single tenant.

Cash Flow - With multiple rental units generating income, multifamily properties often provide a more consistent and predictable cash flow compared to single-family homes.

Economies of scale - Operating expenses such as maintenance, utilities, and property management can be spread across multiple units, leading to cost efficiencies and higher profit margins.

Appreciation potential - Multifamily properties located in growing or desirable areas have the potential for long-term appreciation, increasing the overall value of the investment.

Tax Benefits - Investors can take advantage of various tax deductions, including depreciation, mortgage interest, property taxes, and operating expenses, to reduce their taxable income.

How to invest in multifamily real estate

The process of investing in multifamily real estate requires careful planning, research, and execution. Before diving into the multifamily market, clarify your investment objectives, such as desired cash flow, appreciation potential, risk tolerance, and timeline. Understanding your goals will help guide your investment strategy and property selection process.

Evaluate different markets to identify areas with strong rental demand, population growth, job opportunities, and economic stability. Analyze factors such as rental rates, vacancy rates, demographic trends, and neighborhood amenities to assess the investment potential of a particular location.

Conduct thorough due diligence on how to invest in multifamily real estate to assess their physical condition, rental history, tenant profiles, zoning regulations, environmental issues, and potential risks. Hire qualified inspectors, appraisers, and legal professionals to uncover any hidden problems or liabilities before finalizing the purchase.

Decide whether to self-manage the property or hire a professional property management company to handle day-to-day operations, tenant screening, rent collection, maintenance, and tenant disputes. Evaluate the costs and benefits on how to invest in multifamily real estate to realise your investment objectives.

Finally, Mitigate risks associated with multifamily real estate investments by implementing strategies such as diversification, insurance coverage, reserve funds for unexpected expenses, thorough tenant screening, lease agreements with clear terms, and proactive property maintenance.

[angusstory]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link

[tumibaba]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link

[romaleen]

Unlike houses built on-site using framed structures or prefab panels, modular buildings are constructed almost entirely in a factory. Volumetric "boxes" are built by skilled tradespeople and trucked to a prepared construction site, a process that proponents say reduces waste and deployment time. Even mega-landlord Greystar recently hopped on the modular bandwagon with several new multifamily residential projects, leading one to ask: Can modular help us end the housing crisis? Jon Hannah-Spacagna, the director of government affairs for the Modular Building Institute (MBI)—a trade association for allied professionals working in and around modular buildings—certainly thinks so. His role is to further MBI’s advocacy work, to collaborate with elected officials and government agencies, and educate the built environment sector on modular’s possibilities. Speaking with Dwell, Hannah-Spacagna explains the pros of building your house (or office) in a factory, dispels some rumors about code-related issues, and discusses what needs to change if cities want to rapidly make a dent in our country’s missing six million units of housing. Oaxaca Interests, a Texas real estate operator, developer, and investment firm, partnered with architecture firm Lake|Flato to create a modular home called the HiFAB.Dwell: For those unfamiliar with modular building, can you explain what it is?Jon Hannah-Spacagna: We’re not a product, we’re a process. A modular home is built to the same building codes as a site-built home—or whatever type of construction you want to think of. If we can build it modularly in a factory, it’s being built to those same standards that a site-built construction crew would build. It’s just simply that we build it in three dimensional, volumetric boxes, and then they are transported to the site and then craned into place.I’d love to hear a little bit about why modular building is a good process, or better than traditional building.We’ve had independent studies done that show our type of construction is greener, so there’s less waste and less emissions. Because we’re building a factory setting, we’re literally utilizing every piece of material that we procure for that project. And if there’s something that isn’t used, then it’s put to the side and used on the next project. The other part is the safety of the construction workers: If you went into any modular manufacturing facility, you’re not going to see any of those workers on scaffolding; they’re able to build these modules on a ground setting and move them from station to station. Everything from the exterior and floor construction to the mechanical, electrical, and plumbing that goes into them—even the furniture, in some cases—they’re built in a controlled setting, then trucked to the site. So it’s much safer for the employees.As I’ve toured many of our member factories, an interesting thing you see are people that you wouldn’t normally see on a construction site. You may see a disabled veteran in a wheelchair working at a modular construction station. You may see a lot more women in the workplace in a modular factory than you would on a construction site."It’s a matter of educating people on our industry, what we have to offer, and why modular is a good solution for housing."  —Jon Hannah-Spacagna You say that modular buildings are built to the same standards as site-builds; what about the facilities themselves? How are they regulated?Facilities are inspected by state approved inspection agencies, and in some cases, the state actually sends their own people to inspect them. The factories have to be certified by the state that they're doing business in, in addition to each individual module being inspected and receiving a label from that state, if the state has a modular program. Some don’t, and those that don’t, then you work with the state building official to get those approved, but the factory has to submit their quality control manuals and get their own certification before they even start building a specific project.When did modular building become a widespread practice?Modular has been around since the old Sears catalog days; you could literally order a modular home in a Sears catalog back in the ’60s. [It’s resurgence] is due to a combination of [factors], from the marketing that we do out of our office, to the world of modular events in Las Vegas, which has been going on for many, many years. We continue to see record growth for that event year after year. I’m getting phone calls and emails almost on a daily basis—from government agencies, nonprofits that are building, housing developers wanting to learn more, investment companies that are looking to invest in modular construction and modular manufacturers. Once they have success with modular, they see the value of not only the quicker return on their investment, but also all the benefits that I’ve mentioned. And it really is a faster, greener, better way to build, and with the declining workforce that we have in the construction industry now—because we're not seeing kids coming out of school wanting to go into construction like they did 30 years ago—it’s going to have to be the way of the future for how construction is done.What are some of the biggest hurdles that the modular industry encounters?It’s a PR misunderstanding of what modular construction is. And that goes from the consumer, who may be looking to build their first home, to the developer who may be building 100 homes on a specific lot, to a governor or member of Congress who is looking for ways to solve our housing crisis. It’s a matter of educating them on our industry, what we have to offer, and why modular is a good solution for housing.But there are states that are taking that and running with it, like Colorado. We’ve worked with them for the past several years; they passed legislation a couple years ago that created $40 million in grants specifically to support the build of affordable housing using modular construction. And those grants were for existing modular manufacturers to expand their capacity and footprint and also to recruit new modular manufacturers to move to their state. They’ve also added low-income housing tax credits and other financial funding streams to support modular, and in the last three years, they’ve increased modular production by 687 percent. I would say 99 percent of that is focused on affordable housing.In Canada, we’ve seen great success: I worked with the Canadian Mortgage Housing Corporation right after the pandemic. They created what they called their rapid housing initiative. It started out as a $1.7 billion investment using only modular construction to build affordable housing, and in the first 24 months, they created 10,000 new housing units for those in need. So it’s a proof of concept that it works.Workers assemble a modular home in a factory for Inherent Homes, a Chicago prefab home builder.You work at a national level, so when you’re thinking about different cities, what are some of the most common code related challenges? Are there disparities around what could be built in Chicago, versus Denver, versus Atlanta?The easy answer is, that’s a misperception. We’re built to the same building codes as site-built construction. There are two code books that you reference—either the International Residential Code through the International Code Council, which is specifically for residential, single family residences, or the International Building Code through the International Code Council, which is specific to commercial or multi family modular construction. So every state in the U.S. adopts those building code standards. Most of them will have some amendments. It could be specific to wind, seismic, snow requirements. That’s what site-built contractors build to, and that's what our industry builds to. You won’t talk to pretty much anyone in our industry that says we want special or different building codes for modular—we can build to any building code in whatever state you want us to.Most of our manufacturers are regionally dispersed. For example, if they’re based in Texas, they could build for California, Colorado, and Louisiana; they can build anywhere as long as they know beforehand which state it’s going to and the building codes you need to comply with. We can do that. So that’s not a hurdle. It’s really the education piece to help people. We don’t have a building code problem and right now in both of those codes that I mentioned, the word modular does not exist. As an organization, we partnered with the International Code Council, and developed standards. So there’s ICC MBI standards, and not to get too far in the weeds and codes, but those were developed to help building officials understand our industry.We’re pro-anything that supports getting housing built faster. What are the possibilities for modular when it comes to fitting into existing or possible plans to remedy the housing crisis?For those that are wanting to really address housing, commit a set dollar amount and partner with the modular construction industry and modular manufacturers to say, "hey, for the next three years, five years, whatever it is, we want you to build X number of homes." We had manufacturers that just built 200 homes in Maui for FEMA as a part of the fire disaster relief. And they said, Okay, here are the designs. We want you to build one, two, and three bedroom homes. We need 200 of them. Here’s how many of each. And here’s the money. Our manufacturers built 200 homes in 60 days. They had all the means in place logistically. Some of these were constructed in Colorado, some in Idaho, and they were shipped or transported to the port in Seattle, loaded on a barge, transported to Maui, offloaded, and then set on site. They are beautiful one, two, and three bedroom homes. To me, it is what should be done, and how you’re going to maximize productivity.Top photo courtesy of MBI Source link