Technology is advancing at a pace never before seen in history. In a few years we expect to see self-driving cars, a complete overhaul of our energy sector with renewables overtaking fossil fuels and computers continuing to automate virtually every aspect of our lives. Amongst all of these technological advancements, construction has remained virtually unchanged. It’s time for something new.
Krieger Containers is a full-service technology oriented real estate development and investment company. We specialize in highly efficient containerized construction. We operate differently than a normal construction or real estate investment firm.
New construction techniques cannot be carried out without first being fully permitted. This process is lengthy, costly and downright absurd. For most construction projects it starts with an architect designing the floorplan and elevations, then an engineer designing the structural to match. This often leads to changes and sometimes a redesign. Next, another company submits this set of plans to permitting. These plans are generally sent back and forth to each party, multiple times until finally the project is approved and begins. The most striking part of this process is the human inefficiency. In a world where automated driving is about to exist, we still have individuals physically carting in sets of plans to be walked by another individual from department to department. That’s the modern construction industry.
In order to improve, we needed to start with the legal requirements. We created Krieger Engineering LLC to provide structural detailing and a required Professional Engineer stamp on our projects. By bringing engineering in house it allows us to completely control this process.
Efficiency continues with unique containerized designs. Shipping containers are held to strict standards when initially constructed and are perfect for modularized building. We utilize these containers for their incredible strength and their building block nature. Since the beginning we have created and continually been improving our structural drawings and design calculations. We have essentially created a proprietary shipping container handbook utilized internally.
With a new standard in container construction comes the necessity to implement it efficiently. We employ full-time drafters overseas who are being continually trained to implement both our own and City of Houston’s planning and building standards. These drafters have the ability to draw new site plans and site-specific documents, compile existing details, and fill out permitting documents. These individuals are even able to upload full sets of plans to be reviewed by permitting authorities online dependent upon a city’s availability of electronic submissions. While Krieger Containers performs a quality review of each document drafted, the overseas drafters are able to do a majority of the work at substantially lower labor costs. Outsourced wages are roughly 1/10th of US costs and our simplification of construction plans has allowed us to take advantage of these reduced labor expenses.
Our planning efficiencies extend even beyond permit approvals. While plans are under permit review, overseas workers are creating detailed wall-framing schedules and materials estimates. We coordinate with truss manufacturers to receive prebuilt wall sections, trusses, and roofing systems to expedite the build process and further reduce labor costs onsite and material costs. While many projects are unable to realize efficiencies because of high planning-oriented labor prices, planning inefficiencies, and on-site limitations, we are able to realize massive savings.
With all of this information in hand we construct in a uniquely modular way. We clean, paint, frame, and even store materials inside containers at the ground level before they are craned into place. We rarely erect scaffolding for our tall construction projects. With our prebuilt wall sections, we don’t build houses; we assemble them. It doesn’t end with structural progress. Our interior finishes are ultra-modern with metal trim, exposed container walls, and other unique finishing materials. These materials are most often significantly cheaper than standard construction materials and distinctly fit within the theme of a modern container building.
Compared to the Rest
The initial hesitation of investors and banks has historically been market acceptance. Do people really want to live in a metal box? What will they rent or sell for? These questions create a perceived risk. We are happy to now be able to confidently provide an answer: They are equal to standard construction. Krieger Containers has successfully built 5 duplexes that are 100% leased at market rents. We are continuing development of numerous models of homes including a 4-story townhome, a beach house, a single-family home, a student housing project and varying sized duplexes. We are confident that each will rent for comparable market rates.
We don’t build for the high-end consumer. Our focus is on lower-income and lower-priced housing. This market demographic is highly price sensitive. It’s the lowest risk and largest growing market for residential construction in the US. We are finding ways to better provide for these market demands.
Take the Leap with Us
Getting involved is easy. Whether you want to invest for a quick cash return or grab an equity stake long-term, we are willing to create an investment that meets investors’ specific goals. With financing we strive for 12-month payback periods for all initial capital. We handle the entire project from initial design to long-term leasing and property management. Specific returns depend on project type, but every project has yielded double digit returns with multiple projects nearing 30% cash on cash after the initial refinancing.
We Don’t Find Deals. We Create Them.
While many real estate investment firms are always hunting for deals, we aren’t limited by the supply of deals with built-in gains. We don’t look for distressed properties. We aren’t chasing down property owners looking for off-market deals. We will never participate in market speculation. We aren’t making our returns based on government incentives that might be eliminated. We create value by taking a raw piece of land and turning it into something that people want and need.