For clients that no longer have a need for their portable buildings, and would like to recapture a portion of their investment, IMS can assist in remarketing efforts and may even repurchase the modular building.
How Do We Determine a Buyback?
We have a few programs to recycle or reuse your purchased modular building. If an owner is done with their modular building, IMS is willing to review the specifics of the building to determine if we are interested in: purchasing the building, remarketing the building on the owner’s behalf, or recommend that the owner donate or demolish the building.
We’ve have offered these options to several of our customers:
- Pay the owner for the building
- In lieu of charging for dismantle; we take the building as payment
- Charge for the removal.
- Demolish the building.
- Recommend that they donate to another organization.
There are several different factors we take in consideration when we present our recommendations, such as; age, condition, manufacturer, state coding, and current market conditions.
In cases where the customer has one of our standard products, we propose working with the owner to provide a sale/buyback arrangement. This option is most ideal when the owner is uncertain of the overall length of time that they will need the building. For example: An operating lease may work well for a short term use (3 years or less) but if the need beyond that time frame is uncertain, we may propose a sale/buyback. We would provide a standard sale agreement with a buyback provision that is negotiated at the outset of the contract. The buyback provision guarantees that IMS will re-purchase the building at a specific point in the future for a specific dollar amount. Additionally, the buyback provision may or may not include the cost associated with removing the building from the owner’s site.
How Does the Program Work?
Martinsville Community Unit School District
For Example: In the summer of 2008, due to flooding, a large portion of the Martinsville High School building was closed after sustaining extensive damage, beyond repair. IMS worked with the school district to provide over 18,000 square feet of temporary space, which included classrooms, restrooms and administrative space in three adjacent modular buildings. The contract with Martinsville was initially a two-year operating lease, as the District intended to construct a new school utilizing funds from FEMA and grants from the State of Illinois. In 2009, the District and FEMA conducted a cost analysis to determine the best long-term financing method for the overall project because they anticipated that the operating lease would need to be extended due to delays in processing the building grant. It was determined that a sale/buyback would reduce overall long-term costs by nearly 20%. In 2009, IMS sold the modular buildings to the District, who utilized them until their new high school opened in 2012. IMS and the District exercised the buyback option and IMS purchased and removed the buildings from the Martinsville site. Since that time, IMS has redeployed the same buildings to other school sites in Illinois and Ohio, effectively recycling 18,000 square feet of space that may have otherwise been demolished.
We were able to propose a sale with buyback option to be more cost effective than a lease option with lease extensions. Providing this solution to the school district not only was able to save them money on this project but it allowed additional school districts to utilize a modular option at a reduced price.Buybacks and Resale of Portable Buildings
IMS would welcome the opportunity to discuss specific procurement requirements in detail and provide a competitive quotation tailored to suit any budget.
If you need financing options for your project, View our Leasing and Buyback Options for Used Modular Buildings.