The Modal Living offering is now closed and is no longer accepting investments.

Modal Living

Increase your income, space, and property value, with a modern prefab dwe...

Modal Living

Increase your income, space, and property value, with a modern prefab dwe...

Salt Lake City, UT
Real Estate
Modal designs, manufactures, and installs modern, modular backyard homes and offices through a turnkey, hassle-free service. We help homeowners maximize space, while providing an opportunity to create passive income and increase their home value.

$243,548

raised
$985,483
previously crowdfunded
230
Investors
$15M
Valuation
$8.35
Price per Share
$250.50
Min. Investment
Common
Shares Offered
Equity
Offering Type
$4.01M
Offering Max
0
Days Left

$243,548

raised
$985,483
previously crowdfunded
230
Investors
$15M
Valuation
$8.35
Price per Share
$250.50
Min. Investment
Common
Shares Offered
Equity
Offering Type
$4.01M
Offering Max
0
Days Left
This offering ended on April 27, 2022 and is no longer accepting investments.

Reasons to Invest

Modal’s potential market in California alone is projected to be $250+ billion
Modal achieved 1,200% YOY revenue growth from 2019 to 2020 and signed contracts worth $6.5 million to date.
Led by one of the most prominent leaders in the homebuilding industry, seasoned affordable housing executives, and partnered with the largest modular manufacturers in North America.

Overview


A new mode of living


At Modal, we are dedicated to solving the affordable housing crisis, by building a housing supply to benefit both homeowners and renters. Accessory Dwelling Units (ADUs), or backyard homes, have become the go-to solution for affordable housing. Modular construction is the ideal mode for building ADUs due to its small footprint and minimal impact on homeowners’ lives.


Rendering of Modal Unit


Since our inception in 2019, Modal has focused on developing compelling, modular ADUs and a delivery process that can be scaled with limited fixed costs. Our modular units marry sustainability and superior quality while having the benefit of speed and lower costs.  


Our CEO and Chairman, Scott Stowell, spent 35 years in the homebuilding industry and served as the Chairman of the 4th largest publicly traded US homebuilder. Scott saw firsthand the limitations of traditional construction and the huge, unmet demand for small, minimal housing. Modal was born to meet that demand while solving the biggest issues facing the construction industry. Although our initial focus is backyard homes, we are expanding our product line for hospitality, multi-family, and affordable housing developments.





To date, we have successfully delivered dozens of ADUs in multiple states, worth $6.5M in total sales, and achieved over 1,200% YOY revenue growth in 2020. After years of refining our processes, we are at an inflection point and ready to scale. We want to revolutionize the way we build housing and the way people live and interact with the built world around them.

The market


ADUs are one of the fastest growing segments of the real estate market


Fueled by changes to state and local zoning laws, the ADU market has grown significantly in the last 5 years and is rapidly expanding. In California alone, the ADU market increased 214% per year from 2016-2019 and the total market is estimated at $250+ billion.


Rendering of Modal Unit


Demand for new ADU construction is strong because it benefits both communities and homeowners. State and local governments have relaxed regulations on ADUs to resolve the affordable housing problem. This has opened the door for many homeowners to capitalize on these changes and generate additional income, increase their property value, and have extra space for guests, loved ones, or working from home. An ADU is one of the best investments a homeowner can make to maximize the value of their home.




ADU-friendly legislation is sweeping the nation. In addition to the entire state of California, municipalities that now allow ADUs include Seattle, Portland, Phoenix, Denver, Orlando, Honolulu, Minneapolis, Charlotte, Philadelphia, Pittsburg, Austin, Houston, San Antonio, and Salt Lake, and experts anticipate continued market growth for the foreseeable future.

The Problem


Solving the affordable housing crisis with ADUs still has its set of challenges


Despite the strong, growing demand and positive regulatory tailwinds for Accessory Dwelling Units, actually obtaining one is quite complex, expensive, and time-consuming.


The process of navigating architecture, permitting, and city codes can be intimidating while rising costs and change orders lead to budget overruns and difficulty financing. In addition, managing construction in one’s backyard for months on end can be a burden on families and neighbors.


As a result, this fragmented and frustrating process is the primary barrier for homeowners adding an ADU.



the solution


Affordable, chic, and stress-free, Modal provides the ideal income property right in your backyard


Modal eliminates the biggest hurdles for would-be ADU consumers by coupling our beautiful, thoughtfully designed modular units with a turnkey, hassle-free service.


All Modal units are built in an off-site factory with quality materials that meet the highest standards of the International Building Code. Building modular provides deliveries twice as fast with more consistent, reliable outcomes. It also generates 90% less waste and 43% fewer carbon emissions than traditional construction.

Rendering of Modal Unit

Our product line includes a home office, studios, one-bedroom units, and two-bedroom units, each stylishly designed to fit into almost any backyard. Modal homes come equipped with a bathroom, kitchen, and living spaces, and are designed to fully maximize space.


From the first phone call to key in hand, Modal makes the experience simple and seamless. We offer a free property analysis, in-person and virtual home visits, financing, and an elegant online ordering process. 



   

Most importantly, our team does the heavy lifting and handles all aspects of the project -- including processing permits on the homeowner’s behalf, coordinating site work, managing contractors, transporting units from the factory, installing on the foundation, and connecting water, sewage, and electrical wiring. Our customers can sit back, relax, and continue with life stress-free.

Traction


Modal is live and actively installing with a track record of success


So far, we have sold 50+ units worth $6.5 million in sales with an average revenue growth rate of 600%+ over two years, and we are continually adding to our backlog. We have successfully installed dozens of units for customers in California, Utah, and New Mexico. We have ensured scalability through strategic manufacturing partnerships with some of the largest modular manufacturers in North America.




We have raised over $4 million in debt and equity from seed investors and spent the past two years building our team, refining our processes and are now at an inflection point ready to scale.


why invest


Modal is focused on revolutionizing construction, with the leadership, traction, and technology necessary to scale in today’s booming market!


Traditional building methods remain outdated and inefficient which has led to skyrocketing prices and housing shortages. Modal is solving these problems and improving communities by leveraging modular construction to inspire independent, minimal living.  


We have established partnerships and capacity to rapidly scale our solutions nationwide. Over the next 3-5 years, our team will continue to enter new geographies, develop unique and compelling products, and expand our sales channels to include multi-family, hospitality, and more, increasing our potential market size in the multi-trillion-dollar construction industry. 



 As we work to solve the current affordable housing crisis, we are also addressing one of the largest and fastest-growing segments in the real estate market. Backed by an amazing team with decades of experience in the industry, our business is booming, making this a great time to get involved with our growth. Join us to help revolutionize the housing market, while producing returns along the way.



We are raising funds to invest in sales, marketing, and product development to achieve our high growth goals, and we look forward to having you onboard! 



Offering Summary


Company

:

Modal Living, Inc.

Corporate Address

:

132 S. State St., Salt Lake City, UT 84111

Offering Minimum

:

$9,994.95

Offering Maximum

:

$4,014,513.00

Minimum Investment Amount

(per investor)

:

$250.50











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

1,197

Maximum Number of Shares Offered

:

480,780

Price per Share

:

$8.35

Pre-Money Valuation

:

$15,030,492.65











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Company Perks*

Early Bird Discounts -

Friends and Family - First 72 hours | 15% bonus shares

Super Early Bird - Next 72 hours | 10% bonus

Early Bird Bonus - Next 7 days | 5% bonus shares

Volume Discounts -

Tier 1 - Over $2,500

Investors that contribute between $2,500 and $4,999 are eligible for ADU Discounts ($1,500 off unit plus $1,000 in free upgrades) and/or $1,000 off the Modal Pod (Home Office). 

Tier 2 - Over $5,000

Investors that contribute between $5,000 and $9,999 are eligible for ADU Discounts ($2,500 off unit plus $2,500 in free upgrades) and/or $2,000 off the Modal Pod (Home Office).

Tier 3 - Over $10,000

Investors that contribute between $10,000 and $24,999 are eligible for 5% bonus shares PLUS ADU Discounts ($3,000 off unit plus $5,000 in free upgrades) and/or $3,000 off the Modal Pod (Home Office).

Tier 4 - Over $25,000

Investors that contribute between $25,000 and $50,000 are eligible for 7% bonus shares PLUS ADU Discounts ($5,000 off unit plus $10,000 in free upgrades) and/or $5,000 off the Modal Pod (Home Office).

Tier 5 - Over $50,000

Investors that contribute over $50,000 are eligible for 10% bonus shares PLUS ADU Discounts ($10,000 off unit plus $15,000 in free upgrades) and/or $7,500 off the Modal Pod (Home Office).

*All perks occur when the offering is completed.

The 10% StartEngine Owners' Bonus

Modal will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $9.26 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $926. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors' eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Voting Rights of Securities Sold in this Offering

Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Inter company debt or back payments. Vendor payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$774,369.00 USD
$101,576.00 USD
Cash And Cash Equivalents
$774,369.00 USD
$88,229.00 USD
Accounts Receivable
$15,780.00 USD
$0.00 USD
Short Term Debt
$2,715,114.00 USD
$1,708,198.00 USD
Long Term Debt
$2,523,441.00 USD
$0.00 USD
Revenues And Sales
$1,465,042.00 USD
$111,567.00 USD
Costs Of Goods Sold
$2,019,701.00 USD
$132,977.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$2,859,850.00 USD
-$1,706,622.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Modal Crowdfunding Campaign Update

4 months ago

The Modal team would like thank our community for the interest in our campaign and especially to those who invested. We would like to inform any prospective investors that we will not be closing on uncollected funds. Anyone this applies to will receive a refund. Going forward our team will provide recurring updates to our investors. Investors with questions or ideas are encouraged to reach out directly at investorrelations@livemodal.com. Thanks again for supporting Modal as we work to innovate on the future of housing!

UC Berkeley Values ADU Market at $250 Billion (with a B), in California alone.

9 months ago

The UC Berkeley Center for Community Innovation performed and in-depth study of ADUs in California. Their results covered a wide array of topics including growth of ADUs, common barriers, and proposed legislation. However, the most compelling aspect of their study was the potential market size of $250 Billion.

The study found that "there is potential for 1.5 million new ADU units across the state, which could account for approximately 40% of the state’s housing need." Since 2016, the CA State Legislature has passed a suite of new legislation aimed at facilitating the construction of ADUs in the state by easing certain restrictive zoning and land use regulations. This legislation effectively spurred the creation of ADUs, evidenced by the increase in ADU permits issued from almost 6,000 in 2018 to more than 15,000 in 2019.

The CA State Legislature continues to pass assembly bills eliminating restrictions and increasing incentive for ADU construction. These laws are all designed to help California reach its potential of 1.5 million new ADU units in order to help solve the housing crisis. 

See the full study here.

Install of Modal Unit in San Jose, CA (Video)

9 months ago

Check out our latest install in San Jose, CA. Our client is excited to finally have his father live so close. And so are the grandkids.


Modal’s CEO and Chairman, Scott Stowell, Named to Toll Brothers’ Board of Directors

9 months ago


Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, recently announced that Scott Stowell has been elected to its Board of Directors. In a press release announcing the election, Douglas Yearley, Toll Brothers’ CEO, stated: “We are very pleased and excited to welcome Scott to the Toll Brothers Board of Directors. He has a wealth of home building experience and is a proven boardroom leader and executive who has created significant value for shareholders.”

This is just the latest accomplishment in a long and successful career for Scott. He has served as the COO, CEO, and Chairman of the 8th and 4th largest homebuilders in the nation. Scott’s deep experience and network have played a vital role in Modal’s success. We are excited for him and the synergies this position will have with Modal.  

Modal Sets Record for Most Sales in Quarter (Q4’21)

9 months ago

Modal just finished off Q4 2021 with its strongest sales performance ever! We signed 11 new contracts for 13 units totaling over $3M in estimated bookings. All 13 units will be installed in California, from the Bay Area down to San Diego.

Now that we have nailed our operational process of permitting, building, and installing our units, we have turned our focus towards improving the marketing and sales processes. This milestone is evidence that we are heading in the right direction and on track to hit our sales projections for 2022.

Notice of Funds Disbursement

10 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Modal Living has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Modal Living be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Modal Adds Two New Manufacturing Partners

10 months ago

As demand for ADUs continues to grow, the need for capacity that can scale with demand has become vital to the long term success in this industry. That is why we are excited to announce the launch of two new factory partners. With the addition of these new partners, not only do we triple our current capacity, but we also increase our agility during these volatile times and maintain competitive pricing pressure. 

The speed at which we were able to scale up two new factories is further validation of our strategy to offer hyperlocal services at scale through our partnership network. We have increased our capacity to over 1,000 units per year and reduced costs without adding a single cent to our overhead. 

Our operational systems and processes are in place and ready to scale. With your investment, we will continue to fulfill the surging demand as we ramp sales and marketing.

Notice of Funds Disbursement

10 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Modal Living has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Modal Living be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Notice of Funds Disbursement

10 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Modal Living has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Modal Living be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Modal Launch Announcement

11 months ago

Welcome! At Modal, we don't think real estate investing should only be accessible to the wealthy... and we don't think venture capital investing should be either. That's why we are excited to be partnered with StartEngine to allow anyone to invest in Modal. 

We started Modal to help improve our communities and provide homeowners financial with freedom and flexibility through ADUs. StartEngine allows us to build on this mission by allowing the community to join our team and share in our success. 

Many of you supported the vision of Modal early by investing in our previous crowdfunding campaign. Others are new to the Modal team, and we're so excited you're here.  

Throughout the campaign, we'll provide updates about what's happening at Modal. Subscribe to our campaign and check in for news, install videos, interviews and more. 


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