MHInsider™ March/April 2019 - Tunica Show Edition

TUNICA MANUFACTURED HOUSING SHOW • MARCH 26 – 28, 2019 MARCH/APRIL 2019

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• Boost Your Sales Using the 9-3-1 Plan • The 7 Deadly Sins of MH Marketing • From Hollywood to Manufactured Housing A Publication of

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CONTENTS

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VOLUME 2 • ISSUE 2 MARCH / APRIL 2019

Kabco Unveils New MH Advantage-Eligible Home

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ON THE WEB MHInsider.com

–––––––– Publisher

Darren Krolewski darren@mhvillage.com

Associate Publisher Mark Dollan dollan@mhvillage.com

Executive Editor

From Hollywood to Manufactured Housing

The 7 Deadly Sins of Marketing Manufactured Homes

NEWS BRIEFS 8 Industry Happenings: Updates from the World of Manufactured Housing ADVOCACY 12 MHI Continues to Push for Secondary Market Support for Manufactured Housing TRENDS / INSIGHTS 22 Back to the Future: Home Trends for Today & Tomorrow FINANCING 28 Keeping the Finance Company Separate SALES 32 Make More Money: Boost Your Sales Using the 9-3-1 Plan

2019 TUNICA SHOW GUIDE 38 39 44 45

State Association Directors Talk Trends, Opportunities Show Floorplan and Exhibitor List Tunica Attractions Business Building Educational Seminars

BUILDER / RETAILER 46 Manufactured Housing Retailer Tries New Venture: College Dorms 53 Retail Insights: Alabama 54 Retail Insights: Tennessee 58 Tunica Exhibitors Following Color, Material Trends 62 Manufactured Home Sellers Seek Relief From Georgia Residential Mortgage Act 66 Q&A with Legacy Housing on Its Place in the Industry and Its Decision to Go Public EVENTS 69 SECO Symposium Continues to Expand 70 Upcoming Industry Events 73 Registration Now Open for the 2019 MHI Congress & Expo INDUSTRY 79 Governor Touts Kentucky’s Potential for Manufactured Housing THE ALLEN LEGACY 82 Tunica’s History Ties Into Industry

Correction: In the January/February 2019 issue of The MHInsider, a photo caption on page 15 misstated home sales volume for an Ohio retailer. The caption should have stated that about 2,000 homes were sold in the state of Ohio during 2018.

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Patrick Revere patrick@mhvillage.com

Managing Editor

Matt Milkovich mattm@mhvillage.com

Contributing Editor George Allen

Senior Graphic Designer Merit Alcala merit@mhvillage.com

Contributors

Ken Corbin Suzanne Felber Dr. Lesli Gooch Ken Rishel David Roden Kaitlyn Palatucci

Cover Image

MH Advantage-Eligible Home Image courtesy of Kabco Home Builders

Advertising Sales

Matthew O’Brian Call (877) 406-0232 matthew@mhvillage.com

Disclaimer

Although we made every effort to ensure that the information in this issue was correct before publication, MHVillage, Inc. and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

Opinions expressed are those of the author or persons quoted and not necessarily those of MHInsider or the publisher MHVillage, Inc.

Copyright Notice

Copyright ©2019 MHVillage, Inc. All rights reserved. Reproduction of MHInsider content, MHI or other contributor content, in part or in whole, is prohibited without written authorization from MHVillage, Inc.

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LETTER FROM THE PUBLISHER

Trade Show Season Trade Show Season Kicks Off with Optimism, Energy

By Darren Krolewski

Y

ou know about football season and baseball season. There’s even a curling season. But for those of us on the manufacturing and supplier side of the industry, would you believe there’s such a thing as trade-show season?

It’s a gauntlet of local, regional and national events that begins with the Louisville Show in January and wraps up with the NCC Leadership Forum in November. We all take a brief recess for the holidays, restock our supplies of business cards, and do it all over again come the first of the year.

This year’s season kicked off amid particularly miserable Midwest weather.

Yet when the ice storms and snow drifts settled, The Louisville Show posted a 60-year record in attendance and standing room-only crowds during the educational seminars; a testimonial to the health of the industry and the importance that attendees place on industry trade shows for making product and service decisions.

To those of you in attendance, I think you’ll agree that despite the cold temperatures outside, there was definitely a sense of optimism and energy in the air within the halls of the Kentucky Exposition Center. While some tempered this optimism with a modicum of uncertainty, the overall consensus was that this year appears to be off to a good start.

I spoke to many community owners who found themselves in the position of buying product for the first time in a long time: whether to upgrade recently

acquired properties, fill planned expansions, or simply keep up with burgeoning demand. Now, that’s exciting.

Of special noteworthiness in Louisville this year was the display of some of the first models eligible for financing under Fannie Mae’s MH Advantage program and Freddie Mac’s CHOICEHome SM program, sets of features and building standards that qualify manufactured homes on property for financing terms comparable to site-built mortgages.

These homes represent the next generation of manufactured housing that MHI research and its member manufacturers have championed: homes that look, live and are treated just like site-built homes No matter where you looked, the latest design trends and innovations were center stage. The days of the manufactured housing industry playing catch-up to site-built housing are long behind us. The advantage that we have, of course, is that our industry can deliver that coveted modern farmhouse look with all the bells and whistles today’s consumer demands for a lot less than our stick-built counterparts.

If there was a single connecting theme, this was it: showcasing that the American Dream of home ownership is still alive and well. As the price of entry into a new stick-built home continues to rise in metros across the country, the void of affordable housing is creating unprecedented opportunities for our industry.

That theme will continue to be at the forefront of this year’s Tunica Show, the nation’s largest outdoor manufactured

housing show, with 70 homes on display, a morning of pre-show seminars, over 100 exhibiting suppliers and outstanding networking opportunities.

The manufacturing facilities serving the Southeast have always been at the leading edge of manufactured housing innovation. We look forward to seeing the MH Advantage and CHOICEHome-eligible homes on display in Tunica, including Kabco’s KB Series, this issue’s cover home.

If you’re new to the industry, or haven’t been to a show recently, I’d strongly urge you to make the time to attend.

My affinity for the value of trade shows is no secret. I find them to be a great source of ideas, insights and feedback.

In the meantime, visit our website at www.MHInsider.com to view the latest industry news, receive our biweekly email updates, or receive your very own copy of The MHInsider by mail. I’ll see you in Tunica! MHV Darren Krolewski is co-president and chief business development officer of MHVillage, the number one website for manufactured homes, retailers and communities. Prior to joining MHVillage in 2014, Darren held senior marketing positions in the telecommunications, a dver t i sin g an d financial services industries — and was a partner in a marketing consulting firm serving the housing industry.

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NEWS BRIEFS

Happenings

INDUSTRY

Updates from the World of Manufactured Housing…

Fitch Gives Cascade Financial Stable Rating Credit rating agency Fitch Ratings has assigned Cascade Financial Services a primary Manufactured Housing specialty servicing rating of “RPS3-”; Outlook Stable.

Cascade is the only MH-focused servicer rated by Fitch.

The rating ref lects Cascade’s established position within the MH sector and recent portfolio growth, its experienced management team, adequate risk control framework a nd tech nolog y upg ra des . The rating also considers the company’s financial condition, according to a Fitch press release.

Cascade is a residential mortgage loa n or ig i nat ion a nd ser v ici ng compa ny focu sed on M H . The company, licensed in 48 states, is headquartered in Gilbert, Ariz.

Freddie Mac launches CHOICEHome Freddie Mac has announced CHOICEHome, a program that will help increase the availability of affordable manufactured homes while providing lenders with innovative financing options.

Fredd ie Mac is conducting a t wo-year CHOICEHome pilot to bring conventional loan financing to factory-built homes. The Enterprise will treat loans secured by CHOICEHome like loans secured by single-family site-built homes. If a factory-built home meets

certain specifications, it will be granted a CHOICEHome certification and will be eligible for financing. Appraisers will be able to use site-built housing as a comparable for valuation.

CHOICEHome is part of Freddie Mac’s Duty to Serve plan, which focuses on supporting underserved markets.

Four Leaf Acquires Five Michigan Communities Four Leaf Properties acquired five communities in Michigan. The purchase of Sylvan Crossings in Chelsea, Tanglewood Village in Brownstown, River Ridge in Saline, Charlevoix Estates in Charlevoix and Andover in Grass Lake increased Four Leaf ’s portfolio by 1,100 sites.

Skyline Champion Opens Louisiana Facility Leesville is set to welcome the only manufactured housing facility in the state of Louisiana. A 127,000-squarefoot Skyline Champion Corp. plant opened in January 2019, with an anticipated production launch in the spring. The facility will allow Skyline Champion to create 200-plus jobs over the long term and add to its 7,000-plus North American team; increase capacity to meet growing demand in the affordable housing sector; and increase market share by offering greater convenience and affordability to customers in Louisiana and surrounding states.

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Inspire Purchases Heritage Communities Inspire Communities, Gold River, Calif., purchased a portfolio of 11 manufactured housing communities, comprising 2,154 sites, in Florida and South Carolina. The seller was Heritage Financial Group of Elkhart, Ind. The Florida communities are i n Ja c k s on v i l le , Ta l l a h a s s e e , Gainesv ille and Pensacola. The South Carolina communities are in metropolitan Columbia.

Legacy Announces IPO Pricing In December, Legacy Housing Corp. launched its initial public offering of four million shares of common stock at a public offering price of $12 per share.

The Dallas-based builder is the fourth largest producer of manufactured homes in the United States. The gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses, were expected to be $48 million (see story on page 66).

Sun Announces FourthQuarter Distribution Sun Communities Inc., a real estate investment trust that currently owns and operates or has an interest in a portfolio of 370 communities comprising over 127,000 developed sites, declared continued on page 10

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a quarterly distribution of $0.71 per share of common stock for the fourth quarter of 2018. The company’s board of directors also declared a distribution of $0.40625 per share on the company’s 6.5 percent Series A-4 Cumulative Convertible Preferred Stock.

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Clayton, a Berkshire Hathaway company and one of the leading builders of prefabricated and site-built homes, gave a check for $300,000 to Next Step Network to support the ongoing efforts of the nonprofit to help deliver access to affordable, quality housing to American families.

Next Step Network’s membership is made up of nonprofit organizations, manufactured housing retailers, and lending institutions. Since 2013, Next Step member organizations have delivered 649 Energ y Starcertif ied, factor y-built homes to communities nationwide.

George Allen Teams with EducateMHC The legacy of George Allen’s 40plus years of trailblazing efforts in the manufactured housing industry will be continued and broadened by EducateMHC, a new venture founded

by Allen’s daughter, Susan McCarty, and her business partner, Erin Smith.

EducateMHC will encompass Allen publications including The Allen Letter, an industry newsletter, the Allen CONFIDENTIAL!, a business journal, and other industry resource documents.

The publications will now be available online. EducateMHC also will be the official planner, facilitator, and host of the International Networking Roundtable.

McCarty and Smith run multiple companies in Indiana and Illinois. Both believe preserving the legacy of data Allen has amassed is vital to the future of the affordable housing industry.

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Clayton Buys Mungo Homes Clayton Properties Group , a division of Clayton Home Building Group and a Berkshire Hathaway company, recently acquired Mungo Homes.

Founded in 1954 by Michael J. Mungo in Columbia, S.C., the homebuilder is now led by CEO Steven Mungo. Mungo first expanded outside of the Columbia market in 2003 to Charleston. The company now builds homes in eight markets throughout South Carolina, North Carolina, Georgia and Alabama, making it the largest builder to join Clayton Properties Group. Mungo, which sold nearly 1,800 homes in 2017, is Clayton’s eighth acquisition.

Patrick Industries Acquires Arran Isle

E l k h a r t , I nd .-ba se d Patrick Industries Inc. acquired Arran Isle Inc., another Elkhart company. The $54 million deal includes Arran subsidiary LaSalle Bristol , which supplies plumbing, lighting and building products to the manufactured housing, RV, and industrial sectors.

Obituaries Burt Dickman , former mayor of Auburn, Ind., and owner of manufactured housing communities, died Dec. 29, 2018, at the age of 86. Dickman served as mayor of Auburn from 1984 to 1991, following a term as a city councilman.

He and his wife, Elsie, were the founders and co-owners of Auburn Homes, which managed manufactured housing communities Auburn Mobile Home Park and West Edge Park.

Dickman is survived by his wife, five children, 11 grandchildren and eight great-grandchildren.

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ADVOCACY

“MHI continues to collaborate with the Enterprises to facilitate conventional financing for a ‘new class’ of manufactured homes, which are indistinguishable from site-built homes in appearance and performance but significantly lower in price.”

– Dr. Lesli Gooch, executive vice president and chief lobbyist, MHI

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ADVOCACY

MHI Continues to Push for Secondary Market Support for Manufactured Housing

By Dr. Lesli Gooch

O

ne of MHI’s top priorities for 2019 is to continue efforts to improve the supply of manufactured housing financing, including further progress toward the creation of a secondary market for chattel loans. The purchase and securitization of chattel loans by Fannie Mae and Freddie Mac (the Enterprises, or GSEs) is crucial to our industry, and MHI has engaged in a years-long effort to push the Enterprises to purchase chattel loans as soon as possible.

W ith housing f ina nce refor m expected to be on Congress’ agenda in the coming year, MHI has positioned the industry well.

Congressional Efforts On the last full day of the 115th Congress, MHI provided written testimony to the House Financial Services

Committee arguing that a secondary market that actively supports all manufactured housing loans is essential to any congressional action to reform Fannie Mae and Freddie Mac. MHI’s statement, which was submitted at a hearing examining housing finance reform legislation, reminded the Committee and Congress that the Enterprises have a statutory mandate to support manufactured housing, commonly known as Duty to Serve (DTS).

MHI underscored the importance of the creation of a sustainable flow program for chattel loans, under which Fannie Mae and Freddie Mac would purchase chattel loans that meet their underwriting standards and securitize them with qualifying mortgage-backed securities. The statement urged Congress to ensure that a robust secondary market for manufactured housing is included in any housing finance reform effort. MHI

expressed concern about any reform bills that would eliminate or undermine DTS, which imposes a statutory requirement for the Enterprises to serve the manufactured home loan market for real property and chattel loans. MHI cautioned that based on historical experience, the Enterprises might neglect manufactured home lending without this kind of formal directive. Additionally, MHI emphasized the importance of allowing the Enterprises to hold chattel loans in portfolio as they build toward robust chattel f low loan purchase and securitization.

New Federal Housing Finance Agency Director As part of its outreach efforts, MHI met with Dr. Mark Calabria, chief econocontinued on next page

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ADVOCACY

continued from previous page

mist for Vice President Mike Pence, who was nominated by President Trump to replace outgoing Director Mel Watt as FHFA Director. Calabria has an extensive background in housing finance reform and, if confirmed, would represent the elevation of a strong ally of manufactured housing, with knowledge of and experience with the subject.

In 2002, he served as deputy assistant secretary for regulatory affairs at HUD during President George W. Bush’s administration, where he led the Office of Regulatory Affairs and Manufactured Housing. Following his service at HUD, he was the top housing staff member on the Senate Banking Committee for many years. In that role, he took the lead in drafting the Housing and Economic Recovery Act of 2008 (HERA), which created FHFA as a strengthened GSE regulator and established the DTS requirements for the Enterprises, requiring them to improve their support of manufactured housing. While on the Senate Banking Committee, Calabria worked with MHI to help ensure the availability of financing for manufactured housing.

Prior to his nomination, Calabria served as a keynote speaker at MHI events, most recently in 2017, where he provided attendees with insights about the administration’s housing and economic development priorities.

In 2012, when he was director of financial regulation studies at the CATO Institute, he spoke to MHI’s members about the impact that the Dodd-Frank Act could have on the housing finance sector.

In the interim, until Calabria’s confirmation, Comptroller of the Currency Joseph Otting serves as the acting director of FHFA. At the time of this printing, Calabria’s nomination is pending a vote by the U.S. Senate. Under the 1988 Federal Vacancies Reform Act, an official that has been confirmed by the Senate may serve as an acting director for an agency like FHFA, and the administration used this authority to appoint Otting to this position.

Ongoing Outreach with FHFA and the Enterprises At the end of 2018, Fannie Mae proposed to modify its DTS Plan to participate in a debt structure and guarantee a security containing chattel loans, in addition to purchasing chattel loans outright. MHI submitted comments to FHFA arguing that the modification must not result in either a delay or a reduction in Fannie Mae’s already minimal targets for chattel loan purchases in 2019 and 2020. MHI also called on FHFA to hold Fannie Mae accountable for meeting these targets and reiterated

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that both Enterprises must remain focused on building a flow program for chattel loans and that additional delays or reductions are not justified given the already go-slow approach to establish a chattel loan pilot structure. Fannie Mae’s approved modifications remain consistent with MHI’s recommendations that both lender risk retention and participation in secondary markets are important steps in accomplishing the goal of increased liquidity for chattel loan originators.

MHI continues to collaborate with the Enterprises to facilitate conventional financing for a “new class” of manufactured homes, which are indistinguishable from site-built homes in appearance and performance but significantly lower in price.

This collaboration has resulted in the recent launches of Fannie Mae’s MH AdvantageTM and Freddie Mac’s CHOICEHomeSM programs. Additionally, for the first time since FHFA began publishing its House Price Index, FHFA included in its 2018 second quarter report a set of newly constructed house price indexes for manufactured homes. The inclusion of manufactured housing in these initiatives are a result of MHI’s multi-year effort to educate Congress, FHFA, and the Enterprises about the fundamentals of the manufactured housing finance market and the importance of secondary market support for manufactured housing.

As the housing finance reform debate continues, and Fannie Mae and Freddie Mac implement their DTS plans, MHI will continue to build upon this progress and advocate to Congress and the Administration about the importance of a seconda r y market support for manufactured housing. MHV Lesli Gooch is MHI’s executive vice president and chief lobbyist.

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TRENDS / INSIGHTS

Your website is the virtual doorway to your business.

TRENDS / INSIGHTS

7 DEADLY SINS MARKETING MANUFACTURED HOMES

By Mark Dollan

T

here is no shortage of tips, tricks and hacks to help you squeeze every ounce of opportunity out of your marketing efforts. But, while everyone is flocking to the latest marketing fad, important fundamentals often can get overlooked. Whether you’re a retailer, community owner/operator or supplier to the industry, making a mistake in these marketing fundamentals will undermine results and waste your money.

After more than 20 years of helping national, regional and local organizations improve their marketing, there are seven core elements I’ve seen neglected repeatedly — seven marketing “sins” that can kill results and spoil sales opportunities.

Marketing Sin #1: Ineffective Signage

If you’re a retailer or community owner/operator, a portion of your annual sales depends on drive-by traffic. So, it’s important to have signage that is capable of catching people’s attention.

From not having enough signage to poorly designed signs, any mistake in this area will reduce the number of sales leads you attract.

One of the biggest mistakes I see companies make is having signage that is unreadable from a distance while traveling at posted highway speeds. The design, typestyle and colors you choose for your signs impact how effective they will be as a marketing tool. Potential customers must be able to read your sign in one second or less as they drive down the road.

Think about your drive into work this morning. How many signs did you glance at, and how many did you spend time reading? If you’re like most people, you barely pay attention to business signs as you drive, because your mind is occupied with other matters. It’s the same for your customers. They’re flying down the road, rushing through their day. So, you need to help them see you.

Make sure your signage is free of any object that would obstruct the ability to read it, and choose high-contrast colors for your signs to improve their visibility and readability. Also, pick a color that contrasts well with the sign’s surroundings to help it stand out. Color selection can make your sign highly visible, or muddled and impossible to read.

Finally, when selecting typestyles for your sign, choose a font that is appropriate for the location. On busy roads or highways with posted speeds above 35 mph, thick, bold type will be needed.

The thicker type will make it easier for drivers to read your sign at a glance as they travel at posted speeds. Pro tip: the font “Frutiger” was designed for airport signage as a typeface that is clear and easy to read from a distance, making it an ideal choice for signs.

Marketing Sin #2: Websites that Don’t Convert

Much like a sign’s job is to capture leads from drive-by traffic, the purpose of your website is to capture sales leads from internet traffic. A well-designed, conversion-optimized website can generate a consistent f low of sales leads reliably every month. If that’s not happening for you, it’s time to fire your website and get a new one.

Let’s start with the way your website looks. How important is visual appeal?

According to research by Carleton continued on next page

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TRENDS / INSIGHTS

continued from previous page

University, visitors decide if they like your website or not within the first 1/20th of a second of landing on it. And that decision determines if they stay on your site or leave. Further studies by Stanford show that 75 percent of consumers make a judgment about a company’s credibility based on the design of their website. So, the visual appeal of your site has a direct connection to how effective it will be as a source of new sales leads.

Beyond visual appearance, other factors can sabotage your site’s effectiveness. Technical issues like slow website loading speeds, images that do not load correctly, or features that do not work will cause website visitors to leave.

And once they have a bad experience on your website, 88 percent of them will never return, according to a 2010 study published by econsultancy.com.

Even when your website looks great and is functioning at peak efficiency, there are things you can do to improve the number of conversions you get.

Some of them, like placing your phone number in the top-right corner of your site, are simple adjustments that produce immediate results.

Another excellent technique for improving results from your website is to use social proof. Social proof is evidence from past customers that doing business with you will be a good experience. By adding testimonials or reviews to your website, you’re adding social proof.

But if you choose to add testimonials to your site, be sure to follow FTC rules for the use of endorsements and testimonials in advertising.

Another option for social proof is software that displays a small pop-up in the corner of your website, showing visitors that other people are filling out your online forms, which encourages them to do the same. Regardless of how you do it, adding social proof helps reassure potential buyers and builds trust.

Your website is the virtual doorway to your business. It is the physical, albeit digital, location of your business online.

So, put as much care and attention into

your website as you do your actual sales center, lobby, or any other customer-facing area of your business.

Marketing Sin #3: Poor Online Visibility

It’s no secret that the internet is the dominant media platform worldwide.

According to research firm BIA Advisory Services, 97 percent of consumers use the internet to find local businesses.

72 percent visited a company within five miles after doing a local search online, according to a 2016 study done by

97 percent of consumers use the internet to find local businesses Wordstream. So, having a well-planned online marketing strategy is the key to generating a predictable flow of new sales leads every month.

There are six components to a well-balanced online marketing strategy. They are advertising, search visibility, reputation, social presence, your website, and a tracking and follow-up system. Let’s start with how visible you are online.

Getting found on search engines like Google is a complex mix of content, technical factors, and optimization that all affect your position in search results.

However, there are simple steps you can take to improve your chances of being found. First, make sure your business name, address and phone number are correct and consistent anywhere they are listed online. Those online listings should exactly match the name, address and phone number on your website.

Also, while you’re checking your business listings online, remember to

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check how your business is listed in Google. You can do this by searching your business or community name and looking at what appears to the right of the search results. If you see a box of information about your business, you have an existing Google My Business listing that you should check and update if necessary. However, if no information box appears when you search your name, then you need to create a Google My Business listing.

Increasing your visibility online includes having a presence on well-established, industry-related websites like MHVillage.com, where a lot of potential buyers spend time searching for homes.

Advertising in places that are already hot spots for buyers is a great way to get seen. And it’s an effective way to generate qualified sales leads as well.

How you appear in search results is only one aspect of online marketing.

Advertising, email marketing, having a well-managed social media presence, and video marketing also should be tools you regularly use to attract as many sales leads as possible.

Marketing Sin #4: Ignoring Reputation Management

Online reviews are becoming more influential in the buying process every year. In 2017, Spiegel Research Center found that 95 percent of consumers check online reviews before making a purchase. Also, they discovered showing reviews for higher-priced products can increase your conversion rate by as much as 380 percent. As you can see, reputation management is an area of online marketing that has the most significant impact on results, because it is so influential in the sales process.

According to a 2017 study published

by BrightLocal, 77 percent of consumers ignore online reviews posted more than three months ago. So even if you have excellent reviews, you still need to be proactive about acquiring more. Also, if you have no reviews at all or more

TRENDS / INSIGHTS

negative reviews than positive ones, doing nothing becomes even more detrimental. In 2016, ReviewTracker found that negative reviews drive customers away 94 percent of the time. That same year, research by Fan and Fuel found that having no reviews caused 92 percent of consumers to hesitate on a purchase decision or delay it completely.

With online reviews, how you treat and respond to customers is on display for thousands of potential buyers to see. So, monitoring and improving your online

reputation is one of the most powerful steps you can take to increase sales.

Marketing Sin #5: Not Tracking Results

One of the most common mistakes I’ve seen throughout my career is companies that have no system in place for tracking the results of their marketing. Knowing which marketing vehicles are producing results, and which ones are not, reduces wasted advertising dollars. It also helps you maximize your return on investment

by showing you where the results are coming from, so you can shift your budget accordingly.

There are lots of ways to track results, including options that are automated. For example, using call tracking numbers, like mhvDirect™, in the advertisements you run will give you a measurement of how many calls your ad generated, and will even let you record the calls for training purposes. For walk-in traffic, you need to develop an internal process continued on next page

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TRENDS / INSIGHTS MARKETING

continued from previous page

for registering visitors and collecting like how your sales staff greets visitors their information for future follow-up to your customer service policies. Howand marketing campaigns. ever, the experience they have is also Installing Google Analytics will help shaped by intangible details that trigger you keep track of where the traffic to your website originates. And “While everyone else is chasing tools like HotJar will show you what parts of your website people marketing fads that ebb and are clicking and record videos of people using your site, so you know flow with the tide of social media, how to improve it for better results. give yourself a competitive Tracking the results of your marketing and making the necessary advantage by doing the basics adjustments is what determines if your marketing is wasting money your competition ignores.” or making money. With a conver-Mark Dollan, vice president of marketing, MHVillage sion-optimized campaign, every dollar you invest in online marketing should generate at least two dollars psychological responses and affect in return, doubling your investment. buying decisions.

For example, colors create both Marketing Sin #6: psychological and physical responses Bad Brand Experiences that can enhance or sabotage your What kind of experience do prospecbrand. The color blue, for instance, tive buyers have from the time they first has been proven to reduce appetite. come in contact with your brand to the So, it would not be the right color for time they are no longer a customer? And restaurant décor. how is that experience shaping their Other subtle elements that affect purchasing decision? the buyer’s experience include comMany well-known elements go into mon-sense things like, did your staff a buyer’s experience with your brand, answer the phone when they called or

did it go to voicemail? Is your staff using paperwork and sales literature that is a copy of a bad photocopy? Or do they have professional-looking collateral that reinforces the buyer’s trust?

Are your model homes properly staged with inviting and purposeful interior design? Or is it a cold, empty shell that does not help the buyer picture themselves living there?

Also, is your office or sales center just a place to do paperwork? Or is it well-designed, with thoughtful point-of-sale displays that support your sales efforts with carefully planned visuals?

All of these factors come together in the buyer’s mind, and cause them to form opinions that affect their purchase decision: Do I like this salesperson?

Will this home fit my family’s needs? Am I getting a good deal? Do I feel comfortable doing business with this company, or should I keep looking?

Marketing Sin #7: Lack of Follow-Up

After the initial contact with a customer, the real work of earning their business begins. Only a small percentage of potential buyers will make a purchase

the first time they contact you. It takes a structured sales follow-up process to engage more buyers and increase your sales conversion rate.

First, you need a defined process. One that is easy to implement, and is used by everyone involved in the sales cycle. Planning out the process is essential because it ensures consistency. It also helps you control the timing of follow-ups, so they build rapport instead of harassing prospects.

Like tracking marketing results, the sales follow-up process is often overlooked or poorly implemented. A quick web search will reveal lots of studies that say it takes anywhere from five to 12 follow-up attempts before a sale is made. However, according to InsideSales.com, most salespeople give up after just two contacts. And data collected by YesWare shows that 70 percent of salespeople stop after sending one email. Persistence and patience are the keys to unlocking the results a good sales follow-up system can deliver.

The Devil is in The Details

Getting the details right in these seven fundamental areas of your marketing will give you a solid foundation for results.

So, while everyone else is chasing marketing fads that ebb and flow with the tide of social media, give yourself a competitive advantage by doing the basics your competition ignores.

It’s an easy way to increase results without increasing your marketing budget. MHV Mark Dollan is vice president of marketing for MHVillage and a six-time international award-winning marketer. He has been an official judge for the Davey Awards, W3 Awards, and Communicator Awards for more than a decade, and is associate publisher of The MHInsider™.

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

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TRENDS / INSIGHTS

Back to the Future: Home Trends for Today & Tomorrow

By Suzanne Felber Photos courtesy of LG Appliances and Lisa Stewart Photography

LG Kitchen Coming to a kitchen near you — induction cooktops, and refrigeration with a window in it so you can see what’s inside without opening.

TRENDS / INSIGHTS

D

o you remember “The Jetsons”?

I was always infatuated with their home, and the fantasy that we could just type what we wanted onto a screen and it would almost immediately be cooked up and presented to us.

Or that someday we might have a robot maid that cleans.

Jump ahead to 2019, and those days are almost here!

Connected household technology and artificial intelligence have been around for a while, but the cost has come down considerably, and this technology may very well be coming to a manufactured home near you.

It’s hard to believe that the inventor of the Ring Video Doorbell couldn’t get a backer on “Shark Tank”, but then Amazon bought his company for $1 billion!

Thermostats have come a long way as well — it used to be digital thermostats were only found in high-end, luxury homes, but now customers are seeing the value of keeping their heating and cooling costs down and are insisting on them in their new homes at all price points.

Staying ahead of what is trending is an important part of being a Lifestylist, and we visit a lot of home shows and industry shows to be the first to see what’s new. continued on next page

TRENDS / INSIGHTS

continued from previous page

Here are some of the top trends we are seeing that might be coming to a manufactured or modular home near you.

Home Connect, Google Home, and Amazon Alexa are just a few of the platforms now available to control different tasks and appliances in your home. You now can see who is ringing your doorbell, you can unlock your front door from a thousand miles away, or you can order up a latte from your Bosch coffeemaker... from your Tesla as you drive home. But something to remember is that most of these technologies don’t play well with others, so it’s a good idea to see what technology the appliances you are thinking about buying use. One of the great ideas we found was a Smart Plug by Amazon that works with Alexa to add voice control to an outlet. No more

“clap on, clap off”, you can just say what you want turned on or off.

The Robots are Here! Robot vacuum systems have come way down in price, and now you can buy one for about the same cost as a traditional vacuum cleaner. With so many of our homes now offering hard surface flooring, it’s a great time saver. Many of these are Wi-Fi and voice-control activated. They may not be as cute as Rosie the Robot on “The Jetsons”, but they do a great job keeping your home guest-ready, even when you aren’t home.

Laundry Room. It’s now possible to turn many machines on and off, know when the cycle is done, and even when it’s time to buy more detergent.

Preventative Maintenance. Another new bonus to many appliances

is that they are equipped with online diagnostics. If there is a problem — say the machine detects that your compressor will be going out soon — it sends a message to the manufacturer, who can diagnose the problem and send someone out with the correct parts.

Plug and Play. Remember when our homes had miles of cables in them?

Thank heaven for Wi-Fi! Everyone has multiple computers, phones, and electronics, so it’s more important than ever to have an area dedicated to housing your router, one that will give optimum coverage to every room. Plugs need to get off the floor and be at counter height so we can charge our various electronics.

Now most customers are hanging their TVs on the wall, so there needs to be a plug and cable connection in the wall to continued on page 26

Cavco Industries debuted this factory-built home at the International Builders Show, which showcases the lifestyle today’s buyers are looking for.

TRENDS / INSIGHTS

continued from page 24

avoid unsightly cables and wires trailing down to the floor. Another new trend is countertops that have phone chargers built into the surface. You don’t see anything, but they connect to the device when it’s set down on them.

kitchen creatives. Cooking isn’t just a necessity anymore, it’s a lifestyle and a craft. Consumers aren’t interested in a basic $200 white range — they want something that is up to trying out the new recipes and ideas they are seeing on Bravo and the Food Net work . Hav ing “Staying ahead of what is trending the opportunity to upgrade to what they is an important part of being a really want is critical.

LG has introduced Lifestylist, and we visit a lot of a new builder-grade series that is affordhome shows and industry shows able and beautiful — perfect for the buyto be the first to see what’s new.“ er that wants for their new manufactured -Suzanne Felber, Lifestylist home what they are seeing in site-built The New Technicureans. This model homes, but at an affordable wonderful term that LG Appliances price. If they can’t afford the range of has trademarked really sums up today’s their dreams right now, making room in

the pantry or having dedicated cabinets where they can house their Instant Pot, air fryer or convection toaster oven is something that will turn them from lookers to buyers. MHV Lifestylist Suzanne Felber has been active in the housing industry for over 30 years. Felber realized that factory-built housing was the housing of the future over 20 years ago, and has been actively working to promote the lifestyle ever since.

She started American Housing Advocates as a way to share the great news about manufactured housing. To learn more about her work, visit www.lifestylist.com and www.americanhousingadvocates. com , or read her @lifest ylist social media posts.

Thanks to new technology, you can now program appliances to be turned on and off from your car. It will even remind you when you are almost out of laundry detergent.

26 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

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FINANCING

KEEPING THE FINANCE COMPANY SEPARATE HOW TO AVOID P OT EN TIAL PR OBL EMS

By Ken Rishel

O

ne of the first issues that should be dealt with when creating a related or captive finance arm is the actual set-up and legal structure of that organization. All finance activity should be strictly separated, legally, from the main organization.

Here are some of the reasons why: 1. B ecause of the SAFE Act and more recent regulations regarding steering, it is very important the organizations be recognized as two distinct legal entities when dealing with a related or captive finance situation.

2. If the finance organization is examined by reg u lators and the operations are not carefully separated, any fines or penalties that might be put in place are normally proportionate to the assets of the operation. Without separation, that could include any community or communities and/or any retailing operations.

3. Separation helps avoid (if done properly) holder in due course liabilities caused by the retailing/community arm against the lending operation.

4. Separation keeps community issues away from lending issues.

5. Capital acquisition for making loans becomes far easier and avoids tying up assets that otherwise would not need to be encumbered.

6. For some operators, it allows the number of employees to be small enough to qualify for certain government benefits or to avoid certain regulations.

7. S epa ration ca n ma ke a l l of the functions less v ulnerable to adverse publicity.

A prime example of No. 7 would be the negative online articles that are being generated against the largest lender in the manufactured housing industry.

Several online “news” sources have decided that it is to their benefit to attack this organization, and they are trying to besmirch the parent organization and all its parts. This is made more effective

28 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

because they portray the organization as some sort of evil cabal designed to strip manufactured home buyers of as much of their resources as possible through the manufacture, retail sale and financing of the homes.

Had the parent organization found some way to effectively separate the relationships it might have attracted less notice, and it certainly would have been harder to create a scenario of an evil conspiracy. The truth is, this entity is no more evil than any other business organization, but they have laid themselves open to this type of speculation, no matter how baseless or unwarranted.

There are many related finance companies that exist to service customers of land-lease communities throughout the United States. One of the most frequent comments made by operators that have effectively separated the functions is that their collection agents are no longer stymied when, for example, there is a plumbing problem in the community but they need to forcefully collect a late loan payment. Lending operations related to

FINANCING

retail operations are no longer subject was at jeopardy in part because it had to commission-driven sales personnel been ordered to return lot rent back to begging ownership to buy deals that the beginning of the loans. Within a year, shou ld not the previously b e b ou g ht . profitable More tha n community Proper separation is important, one retailer had been sold. especially as the buyers/borrowers has indicated In the days their finance prior to the are getting better educated on how operation SA FE Act, became a most outside to escape their responsibilities. profit center lenders lacked once the actual lending sales personnel were unaware of any licenses and operated on some form of duality of ownership. seller finance authority, making the seller Recent history has been littered with the actual lender using a three-party examples of non-separated operations contract. This was one of the reasons why running into insurmountable problems the industry rarely saw any serious refiwith regulators. A few years ago, a Wisnancing efforts until Triad started doing consin operator of a community who so in the late 1990s. Most non-depository was accepting payments on loans as lenders, even national ones, lacked the well as lot rent found itself faced with a proper licensure to do so and were not cease and desist order on lending, tied inclined to go through the time and to fines and penalties that were almost expense of obtaining such licenses. too large to pay. Granting that most of the problem stemmed from an illegal continued on page 31 lending operation, the community itself MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

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continued from page 29

While there were obvious benefits to operating in this manner, there also were drawbacks, the most important of which was a little thing in federal law called “holder in due course”. When accepting a contract from a retailer, the lender was obligated to accept any conditions of sale or warranties extended by the retailer, which included the manufacturer’s warranty.

The salvation, in those days, was that most buyers were ignorant of the law and were unlikely to approach a knowledgeable attorney in any dispute they had with the retailer and/or manufacturer.

However, it is important to be aware that a few borrowers did pursue this angle, effectively stopping any collection efforts by the lender. In some cases, it took years before these disputes were settled, with the borrower making no payments on a home they were likely going to walk away from if they lost — and sometimes even if they did not.

While almost no lender uses threeparty retail installment contracts anymore, if a lending operation is not correctly separated from the retail/ community operation, even a two-party lending agreement will end up with de facto obligations for the lender. For a small lender, even one or two non-performing loans with collateral that cannot be repossessed and resold can be a disaster. For a larger lender spread over a wide geographic area, with 4-5 percent of their loans in such status, it can also be a disaster. Proper separation is important, especially as the buyers/ borrowers are getting better educated on how to escape their responsibilities.

There also are the obvious issues of keeping employee count down, if possible. Far too many state and federal agencies are anxious to regulate any and all businesses, but especially those tied to consumer lending. In some states, workman’s compensation rates are tied in part to the number of employees, and in most to the classification of the business. If an operation is in a “broad stroke state”, where the receptionist’s

workman’s compensation rates are as high as they are for the rest of the roofing business, there is a real advantage to separating people working on lending from people running a backhoe or setting up homes. With mandates on benefits often tied to the size of the company, there can be a separation advantage. Given the rules on employer contributions to 401(k)s, there may be an advantage there as well.

Separation also can make borrowing capital with which to make loans simpler and easier to accomplish. Private investors prefer uncomplicated situations and collateral, and not tying a retail or community operation to the lending operation financials makes that far easier to achieve. To make loans work correctly, the money must be borrowed at much lower rates than money intended for funding a community operation, or even inventory finance for a retailer. That means that money must be borrowed by a program that lowers risk substantially.

Separation is imperative, but some operators fail to set up or correct

FINANCING

their lending to do so. Accomplishing acceptable separation takes a little time and a small amount of money in return for multiple benefits.

Some operators will have in-house counsel who can accomplish this, smaller operators may be able to do it themselves, and yet others may need the help of a consultant or attorney. A few may need a tax attorney to help them separate assets and obligations, but it is always doable. MHV Ken Rishel is on the board of directors of the Illinois Manufactured Housing Association and is the managing partner of Rishel Consulting Group, a nationally recognized consultancy in the manufactured housing industry.

FOR THE LATEST INDUSTRY NEWS VISIT

WWW.MHINSIDER.COM

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

31

SALES

MAKE MORE MONEY 32 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

SALES

Boost Your Sales Using the 9-3-1 Plan

By Ken Corbin

T

hroughout my career, I’ve seen countless prospect follow-up systems used by sales professionals, many of which they’ve developed by trial and error. The key is, they had a system.

The first program that I started with was called a tickler system. I attended a seminar for insurance sales and was impressed with the concept.

As time went on, I attended more programs and observed what the great sales consultants do, not only in our industry but others. Obviously, there is no single prospecting system that’s perfect, although I’ve yet to find one better suited for the professional housing consultant.

It’s called the 9-3-1 plan, and is intended to double or even triple the number of sales. I can assure you, if properly done, you’ll be amazed at the results.

Every time I present the program, attendees can’t wait to get back to their office and start making more money. Unfortunately, few follow up – as anything that’s worthwhile takes work.

So, here’s the program, in its simplest terms — and I guarantee you will, at a minimum, double the number of sales you’re currently producing.

The Premise

You commit to follow up with a minimum of 27 prospects every day you come to the office. They’ll be broken down as follows: 1. 9 emails to previous customers 2. 9 telephone contacts, not just calls to previous customers 3. 9 personalized letters via regular mail to previous customers

Using Your Calendar

Hopefully, you schedule your days using either a Google or Microsoft calendar. The basis for prospect follow-up is quite simple: 1. You must follow up with a customer a minimum of six times over two months after they visited your model home village, or make an email or telephone inquiry.

2. A fter the initial contact, based on how you rate their hot button, determine the next follow-up date for the prospect and enter their name into your calendar.

3. Keep a separate three-ring binder with a copy of the prospect guest registration, so you’ll have all of the continued on next page

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

33

SALES

continued from previous page

appropriate contact information.

Over time, you’ll be surprised how many binders you’ll be working with. It’s not uncommon for some people to have upwards of 3,000 customers in their system!

Steps

Step #1: To be effective, the program must be used every day you work; and it starts by having you come in half an hour earlier than you are accustomed.

After checking your calendar, schedule your day into five categories: 1. D etermine which follow-up notes and letters need to be mailed.

2. Determine which follow-up emails need to be sent.

3. Review the files and appointments you’ve made for the day.

4. Respond to new emails and inquiries that have arrived.

5. D etermine what follow-up telephone calls need to be made.

Step #2: Do your written follow-up “Notes & Letters” first, and get them out of the way. We’ve become very accustomed to email, so personalized notes will be more difficult, but very effective.

Always include a business card and, if you are typing the letter, add something handwritten along the side of the letter to “personalize” your message even more.

A lways f i n ish you r fol low-up letter by asking the prospect, “When would you like to come back in and tour the models?”

Enter into your calendar the date for the next follow-up. No other work needs to be done until the next follow-up date, unless the prospect calls, writes or emails you back.

Step #3: Do your follow-up emails and, again, always finish your email by asking the prospect, “When would you like to come back in and tour the models?”

Once the email has been sent, determine your next follow-up date in your calendar. No other work needs to be done until the next follow-up date, unless the prospect calls or emails you back.

Step #4: Review your appointments for the day.

Always be prepared for your prospects coming in by having the information from their previous visits in front of you, including emails, follow-up letters or phone contacts. Customers appreciate someone who is prepared.

Step #5: Review new emails and inquiries.

Check emails from previous customcontinued on page 36

34 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

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SALES

continued from page 34

ers first and respond immediately.

People love someone who’s attentive to their needs and willing to help them solve their problems.

You’ll then review new inquiries and respond accordingly. Of course, you’ll always finish by asking the prospect, “When would you like to come in and tour the models?”

Once the email has been sent, determine the follow-up date. No other work needs to be done until that date, unless the prospect calls or emails you back.

Step #6:

• A nd you’ll call a minimum of 9 additional prospects Here’s the question I always ask: “If you truly committed each and every day to following up with 27 previous customers, how many of them do you think will likely come back to see you before making their housing decision?”

Now, before you answer, let’s do the math together. If you do 27 follow-ups every day and you work only five days per week, that would mean you’re contacting 135 people every week!

Most people will tell me probably five to 10 of these will come back from the 27 follow-ups. My answer is always the same. “Let’s shoot low and say less than 10 percent, or about two of those 27 customers, will come back to see you

Make a minimum of nine follow-up telephone calls to previous prospects and new email prospects.

Always be prepared before you make your calls. Have something important to discuss or mention to the prospect. Nobody likes to be bothered with someone asking, “Do you have any other questions,” or “I just wanted to follow up to see how you are doing.”

If you reach the prospect, always finish your call by asking, “When would you like to come Photo courtesy of Zeman Homes back in and tour our new models?”

If you do not reach the prosbased on all the hard work and follow-up pect and they have an answering you’ve done.” Is that OK? machine, leave a brief message with Of course everyone agrees, because my hot points. If you do not reach the number is obviously lower than theirs! prospect and they do not have an anThe next question I ask is, “On the swering machine, write a follow-up letter average, including weekends, how many or send an email. new prospects do you really see on a Regardless, do some form of contact typical day? These are people that have with the customer and use your calendar never been to your model home village.” to schedule the next follow-up.

Most will say, on average (including weekends), they’ll typically see two or Results of the 9-3-1 Plan three new customers.

Let’s summarize the results, so Again, I’ll say, “Let’s once again shoot you’ ll really understand how the low and say only one new customer 9-3-1 plan works. comes in each day. Does that sound fair?”

You’ve committed to contact a total Once again, everyone agrees, and of 27 customers who have seen you this is where it gets not only fun, but previously. You’ll reach out to them in interesting. It’s now time for everyone the following manner: to see how the program works.

• You’ll send out 9 follow-up letters to We’ve all agreed we’re going to reach 9 specific customers out, every single day, to 27 customers • You’ll email 9 additional customers who have yet to make a housing decision.

36 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

By doing this, we’ve agreed that, at a minimum, two of those 27 people we’re reaching out to every day will come back in before making their housing decision.

In addition, we’ll see at least one new prospect every day.

So, at a minimum, you’ve tripled your sales opportunity from just one new prospect coming in for the first time, and added two return visitors. Of those three customers, how many do you think will eventually purchase a home?

Once again, they’ll shoot a bit high and say two out of the three. Once again, I’ll say, “Let’s not be greedy, but say one of those three will write an order. Is that fair?” Everyone nods their head yes, and I finally give them the facts.

You’ve mailed out 9 letters, sent out 9 emails and made 9 follow-up calls.

This is where the “9” in the 9-3-1 plan comes from.

In addition, we all agreed that, at a minimum, less than 10 percent (or only two of those 27 people) will come back to visit. And you’ll see a minimum of one new prospect per day. So, your two return visitors plus the one new visitor is a total of 3 per day; that’s where the “3” in the 9-3-1 plan comes from.

Finally, we’ve all agreed that based on the hard work you’ve done, those 3 customers will likely generate 1 new order. Obviously, this is where the “1” in the 9-3-1 plan comes from.

Let’s say you only work 45 weeks out of the year and only five days per week.

The salespeople who truly dedicate themselves to this program will follow up with over 6,000 customers each year. MHV Industry consultant Ken Corbin has worked with over 800 manufactured hou sing c ommunit i es , retail ers , manufacturers and associations. Email ken@callkencorbin. com for more information about his consulting services.

Gold

2019 SHOW SPONSORS

Champion Home Builders Athens, TX Benton, KY Dresden, TN Clayton Homes Addison Buccaneer Cavalier Russellville Savannah Southern Energy TRU Electrolux Major Appliance Hollywood Casino and Hotel MHVillage/Datacomp Resorts Casino and Hotel Sunshine Homes

Silver

Blevins, Inc. Cappaert Manufactured Housing CIS Home Loans, Inc. Kabco Builders, Inc. La Salle Bristol / Congoleum Oliver Technologies, Inc. Platinum Homes UFP Haleyville, LLC

Bronze

2-10 Home Buyers Warranty 21st Mortgage Corporation BBC Distribution Corporation Cascade Financial Services Cornerstone United, Inc. Country Place Mortgage, LTD Credit Human Federal Credit Union

Dave Carter & Associates Deer Valley Home Builders, Inc. Fleetwood Homes, Inc. Franklin Structures, LLC Freddie Mac Lexington Homes N. Tech Industries, LLC dba Harbor Floor Products Northpoint Commercial Finance Patrick Industries Posey Supply Senco Brands Shaw Industries StyleCrest, Inc. TAG Lending Triad Financial Services UFP Distribution, LLC WESCO International Wilkins Mobile Builders

TUNICA SHOW GUIDE

State Association Directors Talk Trends, Opportunities

By Matt Milkovich

T

o keep our readers up-todate on regional trends and opportunities, The MHInsider talked to officials from the Mississippi Manufactured Housing Association and the Alabama Manufactured Housing Association, which together comprise the South Central Manufactured Housing Institute, responsible for hosting The Tunica Show. Their thoughts are below.

public about the advantages of modern manufactured housing. It’s reached over a million people with its social media arm alone. The plan is to continue the campaign this year.

“If young people can’t find you on their cellphone, they won’t find you at all,” she said. “If you’re going to thrive in business today, you must have a presence on social media.”

Mississippi

Alabama

Jennifer Hall, executive director of the Mississippi Manufactured Housing Association (MMHA), said the shipment of manufactured homes in her state will continue to increase in 2019. The Mississippi industry is seeing a lot of first-time homebuyers, especially younger couples seeking higher-end homes at a more affordable price.

“They see the value of our homes,” Hall said. “You can get so much more for your money with a manufactured home.”

Manufacturers continue to amaze Hall with all the amenities they’re offering, especially in the kitchen: larger farm sinks, hooded stoves, backsplashes, builtin bar areas with stools. It’s clear that, for female buyers at least, the kitchen is the most important room in the house.

They want bigger cabinets, bigger tables and more space in general. Customers also like to choose from multiple floor plans, Hall said.

MMHA started a public relations campaign last year to educate the

Lance Latham, deputy director of the Alabama Manufactured Housing Association (AMHA), said industry leaders in his state are concerned about the shortage of home installers.

“Many of the installers in Alabama are nearing retirement age, and we are not seeing nearly as many younger people getting into that segment of the industry,” Latham said. “This can obviously create a problem in the long term that can affect everything from customer satisfaction and safety to filling orders on time.”

Greater recruitment efforts are crucial.

“Without question, our biggest need and biggest opportunity is recruiting more installers into the industry,” Latham said. “The high demand means that installers have the chance to make more money than they ever have before.

“Retailers and manufacturers understand that proper installation is critical to customer satisfaction and safety, so they are also looking at ways we can

38 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

recruit more young people into that part of the industry,” he said.

AMHA wants to partner with the state’s community college system to recruit younger people into the industry and improve training for installers and plant workers, Latham said. MHV

2019 SHOW HOURS Monday, March 25

Pre-Show Golf Tournament (Sponsored by SCMHI and Sunshine Homes)

Tuesday, March 26

8am – 11am.................. Pre-Show Seminars 9am – 10am................. Sponsored Breakfast for Suppliers 11am – 5pm..................Exhibits Open 11:30am – 1:30pm ...... SCMHI’s Hospitality Luncheon

Wednesday, March 27

9am – 5pm...................Exhibits Open 11am – 1pm................... SCMHI’s Hospitality Luncheon

Thursday, March 28

9am – 1pm....................Exhibits Open

TUNICA SHOW GUIDE

MANUFACTURER EXHIBIT AREA MAP Tru

Southern Energy

Tru

Savannah

Addison

Buccaneer

Cavalier

Franklin

Platinum

Platinum

Platinum

New Vision

Cappaert

Cappaert

Platinum

Platinum

Platinum

New Vision

Cappaert

Cappaert

Fleetwood

Deer Valley

Deer Valley

Kabco

Kabco

Kabco

Fleetwood

Fleetwood

Deer Valley

Kabco

Kabco

Kabco

Legacy

Legacy

Legacy

Sunshine

Sunshine

Sunshine

Hamilton HB Hamilton HB

Hospitality Tent

*

Legacy

Legacy

Sunshine

Sunshine

Sunshine

Jessup

Lexington

Lexington

Lexington

Lexington

Lexington

Jessup

Platinum Cottage

Show Office

Southern Porches

Wilkins

Legacy

Hamilton HB Hamilton HB

Russellville

Wins ton

HB

Wins to

n HB

Athens Park

Champion Homes Hospitality Tent

Benton

Benton

Benton

Dresden

Dresden

Dresden

SPONSORED BREAKFAST FOR SERVICE & SUPPLIER EXHIBITORS Thanks to these special breakfast sponsors from all of us:

2-10 Home Buyers Warranty Assurant CIS Home Loans Land Home Financial Services, Inc.

McGlinchey Stafford MHVillage/Datacomp MHWC

2

Oliver Technologies Minute Man

33

Everlock

N. Tech

Gama Sonic

53

54

75

76

78

79

21st Mortgage Corporation

Tri-State Distribution

56

55

Blevins, Inc.

73

58

Rustique

Land Home

52

37

31

80

81

Cordell International

MHVillage.com

74

57

Tie-Down Engineering

36

35

Country Place

32

16

34

15

14

Assured Partners

13

Heritage

7

Bennett Trucking

71

60

WESCO

82

83

Next Step Network Atlas EPS

Strong Skirt

72

59

50

39

R-Co

Active Ventilation

29

18

Lone Star Wheel

8

84

85

Cascade Financial

First Bank

69

62

61 70

Hitachi / Metabo

Panel Processing

48

41

Johnson Controls

49

40

Nortek

Senco Brands

26

21

25

22

86

Cypress Creek

45

44

Hazard Call

24

23

Factory homequot

67

64

87

88

89

Baymont, Inc.

A &G Trucking

66

65

Frog Attachments

GSF Mortgage

46

43

Skyweb Networks

Northpoint Commercial Finance

LP Building

68

63

National Prefinish

Manage Go

47

42

Vanderbilt (VMF)

Manufacturedhomes.com

27

20

12

11

HMH Supply / DEHCO

10

Triad Financial

9

Credit Human Federal Credit Union

28

19

BPI

American Modern

UFP Distribution Shaw Industries

51

38

Sedco

Home Care Plus

30

17

Croft

Style Crest, Inc.

6

Novik

77

5

CIS Home Loans

4

American Insurance

MHWC

3

New Port Pacific

CSL Financial

1

2-10 Home

40 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

Electrolux

SERVICE & SUPPLIER AREA MAP

TUNICA SHOW GUIDE

First Bank......................................................... 69, 70 Frog Attachments, LLC.....................................64, 65 Gama Sonic Solar Lighting..................................... 34 GSF Mortgage Corporation.................................... 46 Hazard Call............................................................. 44 Heritage Distributing, Inc........................................15 Hitachi / Metabo HPT............................................. 62 HMH Supply, Inc. / DEHCO, Inc.................. 21, 22, 23 HomeCarePlus....................................................... 30 Johnson Controls....................................................61 Land Home Financial Services, Inc........................ 52 Lone Star Wheel Components, Inc..........................18 Louisiana Pacific Building Products....................... 68 ManageGo.............................................................. 47 Manufacturedhome.loan........................................ 24 Manufacturedhomes.com................................25, 26 MHVillage/Datacomp........................................73, 74 MHWC....................................................................... 3 Minute Man Anchors, Inc........................................ 37 Modularhomes.com......................................... 27, 28 N. Tech Industries, LLC dba Harbor Floor Products..................................... 35 National Prefinish................................................... 63

A &G Commercial Trucking / Transco Express....... 66

Active Ventilation Products, Inc............................. 29

American Insurance Alliance, LLC...........................14

American Modern Insurance Group......................... 8

Assured Partners.....................................................16

Atlas EPS................................................................ 83

Baymont, Inc....................................................88, 89

Bennett Truck Transport, LLC.......71, Outside Display

Blevins, Inc.................................................55, 56, 57

Building Plastics, Inc. (BPI)................................19, 20

Cascade Financial Services..............................84, 85

CIS Home Loans, Inc............................................ 4, 5

Cordell International, Inc...................................80, 81

Country Place Mortgage........................................ 36

Credit Human Federal Credit Union..................40, 41

Croft, LLC................................................................. 17

CSL Financial, LLC.................................................1, 2

Cutting Systems, Inc.......................... Outside Display

Cypress Creek Manufacturing................................ 45

Electrolux Major Appliance..............Special Display, Across from 2-10

Everlock Systems................................................... 33

BOOTH #

21st Mortgage Corporation......................... 77, 78, 79

COMPANY NAME Factoryhomequotes.com....................................... 67

BOOTH #

2-10 Home Buyers Warranty............... Next to 35, 54

COMPANY NAME

BOOTH #

WESCO Distribution, Inc.........................................60

Vanderbilt Mortgage and Finance, Inc. - VMF Homes.......................................................... 42

UFP Distribution, LLC..................................49, 50, 51

Tri-State Distribution, Inc.................................. 75, 76

Triad Financial Services, Inc................................9, 10

Translift Sales & Service, Inc............. Outside Display

Tie-Down Engineering......................................53, 54

Style Crest, Inc..................................................... 6, 7

Strong Skirt, LLC.......................... 72, Outside Display

Southern Porches.............................. Outside Display

Skyweb Networks.................................................. 43

Shaw Industries, Inc............................................... 59

Senco Brands, Inc....................................................11

Sedco Pier.............................................................. 38

Rustique Enterprises, Inc....................................... 58

Remote Trax...................................... Outside Display

R-Co Products Corporation.................................... 39

Panel Processing, Inc............................................. 48

Oliver Technologies, Inc....................................31, 32

Novik...... Special Display-between Nortek & DEHCO

NorthPoint Commercial Finance...................... 86 ,87

Nortek Global HVAC................................................12

Next Step Network................................................. 82

Newport Pacific.......................................................13

COMPANY NAME

SERVICE & SUPPLIER EXHIBITORS

TUNICA SHOW GUIDE

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

41

TUNICA SHOW GUIDE

TUNICA ATTRACTIONS

Photos courtesy of Tunica Travel.

Hollywood Cafe

1585 Old Commerce Road Robinsonville, MS 38664 Tunica, Miss., is known for its casinos, its big part in the history of Blues music and the natural beauty of the Mississippi Delta. While you’ve come to this part of the country for the 2019 Tunica Manufactured Housing Show, there’s always time to take a jaunt and look at some local attractions. Whether your interest is history, food or nature, the Mississippi Delta has some great options.

Let the music of Marc Cohn, who wrote and performed the 1992 hit song “Walking in Memphis”, lead you to an iconic eatery just out on Old Highway 61. Cohn wrote the biographical song with a line that goes “Now Muriel plays piano every Friday at the Hollywood”.

That’s right, the same little cafe that serves fried pickles, frog legs and homemade limoncello (booze and sugar, folks) inspired the song that spent 10 weeks in 1991 on the Hot 100 in Billboard magazine, topping out at lucky #13 in July of that year.

The story has it that Cohn put on his blue suede shoes and paid a visit to pick up The Blues vibe. He ended up joining the legendary Muriel Wilkins on stage at the Hollywood. They performed “Amazing Grace,” and she asked him “Are you a Christian, child?” and he responded “Ma’am, I am tonight”, an exchange that also made the song.

The building itself had served as the commissary for the Frank Herbert cotton plantation. Stop in for a meal or drink any time, and keep a lookout for their live music, too!

‘Gateway to the Blues’

13625 US-61 Robinsonville, MS 38664 Tunica prides itself as the “Gateway to the Blues”, with attractions and planned tours that allow visitors to appreciate the genre, the culture and the history of The Blues, just as Cohn had.

The Gateway to the Blues Museum is an introduction to the Mississippi Delta. All music lovers, especially enthusiasts of 44 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

The Blues, will find the remarkable story of how the genre was born and the role Tunica and the Delta played in building that legacy. Visitors will get a glimpse of memorabilia, artwork, the instruments and equipment used by music legends. There’s even a sound studio where you can record a song of your own.

Museum admission is $9 per person, with a discount for groups of 20 or more. Parking is free. Call Bill Canter or Mary Catherine Webb at the Tunica Convention and Visitors Bureau at (888) 488-6422.

Tunica River Park & Museum

1 RiverPark Drive Tunica Resorts, MS 38664 (866) 517-4837 The mightiest river in the United States wraps all around you in Tunica, so you can happen across stunning views at every turn. However, if you’re looking for a destination, Tunica River Park & Museum certainly is in the cards.

Its scenic lookout, event venue and historic documentation of the river and its place in Delta culture can’t be matched.

From the casinos, it’s a short 9-minute drive out to Old 67 and then back to the river. Or, you could take the back roads if you’re feeling adventurous.

Visit TunicaRiverPark.com for more information about museum exhibits or to learn more about venue options.

The Tate Log House

1012 Magnolia Street Tunica, MS 38676 The Tate Log House was built near 180 years ago, and in the interim has served as a cabin residence and plantation commissary. Made of cypress logs, the home moved to far-off Elsie, Miss., and then back to nearby Austin, Miss., before re-finding its home in Tunica. It is the oldest structure in Tunica County, and is a great example of the dogtrot antebellum style. The Tate Log House has been cared for by the Tunica Museum since 2000.

TUNICA SHOW GUIDE

BUSINESS BUILDING: TUNICA SHOW EDUCATIONAL SEMINARS TUESDAY, MARCH 26th 8 - 8:45am Lease-Option And Other Forms Of Chattel Financing Of Manufactured Homes In Communities Presenter: Spencer Roane, Pentagon Properties Manufactured home sales in communities via lease-with-option-to-purchase (LWOP or L-O) is an acceptable form of “seller-financing” in many states.

Spencer will discuss:

Spencer Roane

• The fine points of the L-O contract; including specific provisions of the contract.

• Why the contract “passes muster” in some states, and where copies of documentation may be obtained.

• His firm’s home sales program, qualification of buyers, factors he considers most important in reducing defaults, and statistics on his firm’s sale of new and previously owned manufactured homes.

• Alternatives to L-O, including innovative conventional chattel finance options.

8:45 - 9:30am Disaster Prevention, Preparedness & Recovery Presenters: Brad Huffines & Gene Norman, WeatherCall Services, HazardCall What is your current safety plan for your community or business in the event of an emergency? In this session, you will: • Learn the various phases of effective safety planning.

Brad Huffines

• Gain a more complete understanding of how weather warnings are made, what they mean and how they are currently communicated.

Gene Norman

• Learn effective ways of developing your plan.

• Develop a new process for positively impacting those who depend on you when they need you most.

9:30 - 10:15am Hot 2019 Internet Marketing Trends Presenter: Darren Krolewski, MHVillage

Darren Krolewski

Are you profiting from the latest shifts in consumer online preferences? This session will look at the emerging internet marketing and social media trends that are redefining buyer behavior and expectations. Discover what these trends mean for manufactured housing communities and retailers in 2019, and learn internet marketing strategies you can use to earn more business and stay ahead of your competition.

10:15 - 11:00am Growing Your Business Presenter: Ken Corbin Over 5,000 community and manufactured housing owners & professionals have attended Ken Corbin’s programs. Manufactured housing is back… BUT... are you ready? We’re poised for HUGE growth over the next decade. Customers are changing, homes are changing, lenders are changing, communication is changing …. but are YOU doing business the same way? During this ALL-NEW 2019 interactive program, you’ll learn how to:

Ken Corbin

• • • •

ADAPT to today’s home buyer INCREASE home sales in a competitive market TRIPLE prospects & not spend more Sell MORE, spend LESS and INCREASE margins MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

45

NEW VENTURE BUILDER / RETAILER

BUILDER / RETAILER

Manufactured Housing Retailer Tries New Venture: College Dorms

By Matt Milkovich Photos courtesy of Bryan Hawks.

W

hen Hawks Homes does an installation job — it could be an office building, school building, hunting club or an addition to a church —it typically installs one unit at a time, said Bryan Hawks, son of owner Eddie Hawks and vice president of finance for the company.

Panther Village originally was meant to provide temporary student housing for Philander Smith College. But college leaders have decided to expand the village and extend its life.

But the A rkansas-based manufactured home retailer recently completed a larger, somewhat more unusual project, a project it hopes to repeat: college dormitories.

In November 2018, Hawks Homes installed six housing units in Panther Village, a residential community for students of Philander Smith College in Little Rock, Ark. For the last few years, Philander Smith College’s student body has grown by leaps and bounds. According to the school, more than 1,000 students were enrolled in 2018, almost double enrollment in 2014.

Enrollment has grown so much that the college can no longer house all of its students. Philander Smith’s on-campus

residential facilities have been full since 2016, forcing many students to live in a hotel in downtown Little Rock, according to the college.

It was the fall of 2016 when Philander Smith College first hired Hawks Homes to install six modular housing units two blocks from its main campus. The location, Panther Village, was originally meant to provide temporary student housing. However, college leaders decided to expand the village, and extend its life, while they ponder the construction of additional housing on the main campus.

“We are committed to providing our students a comfortable, safe and secure housing environment, which we know is essential to their success,” said Roderick continued on next page

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

47

BUILDER / RETAILER continued from previous page

“We are committed to providing our students a comfortable, safe, and secure housing environment, which we know is essential to their success.”

– Roderick Smothers, president of Philander Smith College.

Smothers, president of Philander Smith College. “We are working expediently to accommodate the accelerated growth with the least amount of disruption to our students’ educational experience.”

Hawks Homes has now installed a total of 12 units in Panther Village. All are triple-wide units manufactured by Franklin Homes, each containing six bedrooms and four bathrooms. The homes were specially designed — basically a doubling of Franklin’s standard three-bedroom, two-bathroom model, Bryan Hawks said.

Hawks Homes worked with the college on the design of the units, making sure the homes match the neighborhood aesthetic. The manufactured housing retailer set up each unit on site, while the college hired contractors to lay the bricks, hook up the utilities, pour the sidewalks and do other exterior work, Hawks said.

48 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

Each unit houses 10 students, with one room reserved for a resident adviser.

Hawks said the college could decide to expand Panther Village again in a couple of years. According to his understanding, the housing could end up being permanent.

Hawks Homes hopes to sell, deliver and install dormitories for other colleges in Arkansas and nearby states. The company has the capacity to install larger units containing up to 36 dormitories each, Hawks said. MHV Matt Milkovich, MHInsider’s managing editor, has an extensive background in journalism. He was managing editor of two agricultural trade magazines for several years, and was a reporter for local newspapers before that.

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Retail

BUILDER / RETAILER

INSIGHTS ALABAMA

With Blake Johnson, sales manager for Star Homes in Cullman, Alabama

How long have you been in the manufactured housing business?

Why do you feel it’s important to come to events like The Tunica Show?

10 years.

Meeting other dealers and bouncing ideas around, seeing new products and innovations in the industry.

What brands do you sell?

Sunshine Homes, Champion Homes, Scotbilt, TRU.

How has your business evolved over the last few years?

What percentage of homes do you sell for private land vs. land-lease community?

We have expanded our modular business to include both residential and commercial projects. We have also explored expanding into other regions.

Ninety percent private land.

Is the average home you sell increasing in size, getting smaller or staying about the same?

Increasing in size.

How many homes/sections do you sell annually?

Approximately 85.

What are the most popular customer trends right now?

Farm house, light colors, large showers, tall ceilings, open spaces.

How do you assist your customers in financing the home? How are most people buying in your area?

We provide them with a list of lenders and facilitate the applications and conditions. We have a good mix of chattel and land-home business.

What do you think 2019 has in store for the industry?

I think we will see an increase in business, as the average cost of site-built construction increases proportionately with the need for affordable homes. Our customers still want the finishes and amenities they see in newly constructed site-built homes, however, many have turned away from being mortgage-poor and strapped to 30-year mortgages.

What do you think is the greatest challenge facing the industry?

The greatest challenge in our area is finding qualified and dependable sales people, contractors, and employees entering the industry. The greatest assets we have in these areas are working toward retirement, and fewer young people are coming to the industry.

What is your average time from order to set-up?

Star Homes

Six weeks.

www.starhomescullman.com

What is the most common add-on feature in your market?

1081 County Road 437 Cullman, AL 35055

Tile showers, decorative exteriors.

What about working in your state might surprise professionals from other regions?

starhomesblake@bellsouth.net (256) 734-7999 • (256) 734-7214 Blake Johnson, Sales Manager

Dealers that I meet from other states are always surprised at our low prices. Our freight is reasonable and the market in our area is very competitive.

MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

53

BUILDER / RETAILER

Retail

INSIGHTS TEN N ESSEE

With Marty Hebert, General Manager for Clayton Homes in Dickson, Tennessee Photo courtesy of Clayton Homes, Dickson

How long have you been in the manufactured housing business?

What is the most common add-on feature in your market?

Since 2007.

Vinyl throughout the home, atrium doors, walk-in showers, farmhouse sinks.

What brands do you sell?

Norris, Rutledge, Southern Homes, Southern Estates, Giles, Maynardville, Appalachia, TRU.

Why do you feel it’s important to come to events like The Tunica Show?

What percentage of homes do you sell for private land vs. land-lease community?

To see what other people in our industry are saying.

The newest trends, what’s working and what’s not, seeing the newest products from vendors and manufacturers, as well as what the lenders are doing to help the consumers.

Ninety-nine percent private land.

Is the average home you sell increasing in size, getting smaller or staying about the same?

It’s staying about the same in our market. 1,568 square feet has been the most popular square footage size that we’ve been seeing.

How many homes/sections do you sell annually?

50-plus.

What are the most popular customer trends right now?

Technology, affordability, trend setting, rustic farmhouse.

How do you assist your customers in financing the home?

How are most people buying in your area? We offer a lender board that has multiple options for the customer to pick from if they haven’t obtained a lender already. This year, we’ve seen a 60/40 finance-to-cash ratio in our sold homes.

How has your business evolved over the last few years?

Truly listening to the consumers’ wants/needs and applying them to our industry.

What do you think 2019 has in store for the industry?

Huge increase with social media.

What do you think is the greatest challenge facing the industry?

The older perception of the term “trailer.” For example, weather channels saying if you’re in a trailer during a storm, get out. Also, this isn’t an overnight process anymore, and that the construction process takes longer than before. Letting everyone know that this is a safe, affordable, cutting-edge way of building your dream home.

What is your average time from order to set-up?

Clayton Homes in Dickson

Three to six months, depending on the weather.

www.claytonhomesofdickson.com 1948 Hwy 46 South, Dickson, TN 37055 marty.hebert@claytonhomes.com Marty Hebert, General Manager

54 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

615-446-5900 • 615-446-3595

Whether you are a new or experienced MHC owner, our mission is the same – deliver superior loan

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BUILDER / RETAILER

Rendering courtesy of Kabco Builders

Kabco Builders Rolls the Dice on New MH Advantage-Eligible Home

The Boaz, Ala., Manufacturer Shows a KB Series Home with All the Fannie Mae Qualifying Features

By Patrick Revere Rendering courtesy of Kabco Home Builders

E

ach fall, Kyle and Keith Bennett from Kabco Builders gather their team together and get creative on what new home, home feature or product they’ll bring to The Tunica Show that next spring.

For 2019, the team kept coming back to one thing: Fannie Mae’s MH Advantage Program.

“Every year, you have to come up with something different. We thought, Fannie Mae is doing this program and that’s what we want to focus on,” said Kyle Bennett, general manager and vice president of operations for Kabco Homebuilders. “But we didn’t want to just talk about it. We wanted something

you could see, feel, walk in and get a real sense for how it’s made.”

So, Kabco decided on sticking to what they do best. They built a home that meets all of Fannie Mae’s criteria and sent it nearly 300 miles northwest in time for the annual show in Tunica.

The way the Boaz, A la .-based builders see it, they wanted to do something that would help emphasize the value of MH Advantage, for Fannie Mae, for themselves, for retailers and prospective homeowners.

“We really wanted to drive toward what everyone has been talking about and provide a way to help the momentum we have seen in expanded financing and

56 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

give a little extra boost to retailers,” Kyle Bennett said.

He anticipates the new model home will get plenty of attention in Tunica, particularly from retailers.

To be eligible for the program, Fannie Mae asks manufacturers to follow a series of guidelines: Build an MH Advantage-eligible home with: • R oof treatments distinct from traditional manufactured homes, including eaves and higher pitch rooflines (greater than 6-inch eaves and at least a 4/12 roof pitch) • Lower profile foundations, carports, garages, porches, and/or dormers

BUILDER / RETAILER

• Taped and textured drywall • K itchen and bathroom cabinets with solid wood front • E xteriors w ith durable siding materials One of the most attractive features of the new Fannie Mae program is that it will allow comps from site-built homes to factor into the appraisal process if there is a lack of reasonable manufactured housing comps to consider.

On its MH Advantage webpage, Fannie Mae states: “MH Advantage-eligible homes can become a seamless part of any single-family neighborhood.”

Kabco’s MH Advantage Home Comes from its KB Series Line

Kabco found it relatively easy to implement the criteria, because most of what MH Advantage calls for is already standard in the company’s KB Series Homes.

“Really the only thing we had to do different to get approved and certified for MH Advantage was order the rafters to do the roof pitch,” Kyle Bennett said. “It’s a 32x80 home, right around 2,200 square feet, and three bedroom and three bath.

Each bedroom has its own walk-in closet and bath. There’s a big kitchen, separate dining room and great room floor plan.

“We can do about any floor plan we have in the KB Series with all of these

features,” he said. “So no matter what home our customer wants, we can make it comply with MH Advantage. We custom build all the time, so there’s nothing

“Every year, you have to come up with something different.

We thought, Fannie Mae is doing this program and that’s what we want to focus on.”

– Kyle Bennett, general manager and vice president of operations for Kabco Homebuilders

that’s going to be a line stopper for us in getting this done.”

The MH Advantage features Kabco decided on require no additional on-site construction, which means the home can be delivered and set up without hiring contractors. Other approaches that include a carport or garage, for instance, likely would involve on-site construction from contractors.

“It’s really pretty cost-effective. Now the retailer doesn’t have to do aftermarket work and we don’t have to send out a team. It makes it easier on everyone, including the homeowner,” he said.

Industry Change Comes with Industry Collaboration

Kyle Bennett said he worked with CIS Financial President Paula Reeves, asking her opinion about whether it would be beneficial to build and bring a program-compliant home to the show.

As a lender who works closely with Fannie Mae and would like to see a great flow of MH Advantage-financed homes, Reeves was enthusiastic about the work.

“Fannie Mae released the MH Advantage Program under their ‘Duty to Serve’ mandate, and it’s an awesome program for our industry,” Reeves said.

“I think it’s very refreshing to see one of our manufacturers embrace this new program and support the partnership with Fannie Mae by showing one of these homes in Tunica.”

Reflecting on the decision to put the time and effort into building a new class of home, the Bennett brothers and their team are pleased to take the lead.

“Somebody has to take the bull by the horns and get this thing going,” Kyle Bennett said. “And we’re feeling, with the ebb and flow of the industry, maybe we’re going to need this as a staple five years from now. And we’re always looking ahead, checking that crystal ball to see what we might need to do to prepare ourselves.” MHV

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BUILDER / RETAILER

Photo courtesy of Platinum Homes

Tunica Exhibitors Following Color, Material Trends

By Matt Milkovich

T

he MHInsider talked to a few manufacturers that will exhibit at The Tunica Show, asking about their plans and outlook for the year.

Jessup Housing

Jessup Housing, based in Waco, Texas, introduced a new line of multi-section homes in January. Though the demand for all homes softened in the last quarter of 2018, there’s still a strong demand for single-section homes. And the demand for multi-section homes has been even larger, said CEO and President David Jessup.

As far as décor and materials, Jessup’s customers are asking for bright whites and rustic color combinations,

open kitchens with farmhouse sinks, and shiplap paneling, Jessup said.

Platinum Homes

Platinum Homes customers continue to gravitate toward open floor plans, where the kitchen is the central gathering area of the home, said Todd Evans, sales manager for the Lynn, Ala.-based manufacturer.

“Most of our customers are also attracted to luxurious bathrooms that include oversized ceramic walk-in showers,” Evans said. “We continue to see the gray tones mixed with a little rustic as the most dominant color schemes.”

BUILDER / RETAILER

Platinum offers full-drywall homes that allow its customers to change the look dramatically with just a few color choices in cabinets, paint colors, Formica or ceramic accents. The ability to change the look with just a few adjustments helps the company be more attractive to a wider variety of customers from different generations.

“Customer expectations of a manufactured home are at an all-time high,” Evans said. “Customers are willing to spend their money to get the home they desire.”

Legacy Housing

For Legacy Housing, based in Bedford, Texas, the most consistent features customers are requesting are upgrades in bath fixtures, color schemes, and wallboards, according to Neal Suit, Legacy’s executive vice president and general counsel.

“One of our other most in-demand upgrades is smart panel or lap-siding, which is a treated wood product that is moisture-, mold-, and fungal-resistant,” Suit said. “This gives our homes a more site-built look, as well as adds to the durability and life-span.”

For Legacy, single-wide homes are more in demand right now than multi-section homes, but that could change.

“We’ve seen times when double-wides are more in demand, and we may be moving toward that again as interest rates rise and some consumers realize they can find much more value in a multi-section manufactured home than a similar-sized, site-built home,” Suit said.

Wilkins Mobile Builders

Most customers of Wilkins Mobile Builders, based in Double Springs, Ala., are asking for custom f loor plans. They want to design the plans on their own, so the sales department has the ability to work one-on-one with each customer. Wilkins also offers standard floor plans for the customer who wants them, said Project Manager Paula Brannon.

Wilkins customers also are asking for neutral color tones and finished Sheetrock. Multi-section homes are moving faster right now than single floors, Brannon said. MHV

BUILDER / RETAILER

Manufactured Home Sellers Seek Relief From Georgia Residential Mortgage Act

By Patrick Revere

T

he Georgia Manufactured Housing Association opened the state’s 2019 legislative session with a plea on behalf of manufactured home sellers to turn back the 1993 Georgia Residential Mortgage Act, which prohibits retail sellers from assisting customers with loan applications.

Pressure on Georgia manufactured home retailers has heightened, even with the change to federal Dodd-Frank language made in July 2018, which provides an exception to mortgage lending rules for manufactured housing sales people. The Dodd-Frank change provides an exemption for manufactured housing retailers when it comes to the limited, if any, role they play in originating, processing and servicing loans.

Jay Hamilton, executive director of the Georgia Manufactured Housing Association, said the state’s banking and finance department expressed displeasure with the changes to Dodd-Frank, changes that it felt peeled back consumer protections.

“What they did to counter the federal change was reach back for the 1993 Georgia Mortgage Act, which required Georgia manufactured home retailers who handled land-home packages at the time to have a Georgia Mortgage Brokers License,” Hamilton said. “It was never enforced because it really was designed for retailers who they thought would start toward their own loan brokering … which did not occur.

“They are taking this old law and utilizing it to require all Georgia retailers who touch any financial documents to possess this license,” he said. “So obviously it has turned our retail operations upside down.”

A bill, State House Bill 212, seeking to turn back the 1993 Georgia law was entered in the state House in February, and was expected to take three months or more to move through the legislative process (and potentially could linger into 2020).

Hamilton said the association worked with McGlinchey Law Partners and the Manufactured Housing Institute, the

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national association that represents factory-built housing, to draft the bill.

He said other states will watch to see how the Georgia law is addressed. Its resolution could serve as precedent for other state legislation.

What Retailers Say About Restrictive Regulation

Jerry Rollins and his sister Patty Akin are owners of Five Star Manufactured Homes Inc., a retailer in Bowdon, Ga. “We can’t help a customer fill out a loan application at all. They have to do it on their own. They use our fax machine and send it to a potential lender of their choice,” said Rollins, who’s been in business since 1962 and last year sold 70 homes.

“It’s really weird. It’s not like it used to be, where we could sit down and fill out a detailed application, asking all the possible questions. That’s one of the downsides,” he said.

BUILDER / RETAILER

Unfortunately, the clumsy nature of being unable to talk about the loan application turns away business.

“People get disgusted with a bureaucracy. Some of our customers, they get frustrated and say the heck with it, I can buy a site-built home easier than this,”

Rollins said. “That’s not always true, but it happens. And one deal here and there can make a big difference on your bottom line over the course of a year.”

Kerry Bennett works for Akin and Rollins at Five Star. Her title was finance manager, until the regulatory guidance

required her to pull back and drop the title. She refers to herself as an assistant manager now, and will only hand over a blank loan application, with no interaction afterward.

“I was doing all the compliance that Georgia asked years ago, and really did more than was asked,” she said. “It would be good if we could help a little bit on the credit app. People miss things sometimes, and it slows down the transaction.

People get frustrated and leave and they don’t come back.”

‘There’s an Office in the Back’

Jerry Rollins and Patty Akin, owners of Five Star Manufactured Homes Inc. in Bowdon, Ga., say they’ve had customers walk out, frustrated by the retailer’s inability to assist and answer general questions on home finance. Photo courtesy of Five Star Manufactured Homes.

At Oasis Homes in Augusta, Ga., there’s an office in the back of the retail location where only customers go.

“We call it an application room,” Oasis Homes Owner Ray Sollie said. “We have the lending information from a variety of lenders posted in the office. The customer goes in, looks at the different company names and services. They select a lender continued on next page

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BUILDER / RETAILER

continued from previous page

they feel best suits their situation. There’s a computer set up in that office where they can fill out an online form, and we also have a fax.

“They submit it, too. It does make it a little sticky and awkward navigating what you’re allowed to do and not do,” he said. “But we do everything to follow the law, and still do our best to service the customer.”

Sollie said he and his team have no discussion on rates or monthly payments, even though they’re entirely insulated from the lenders who actually set those terms.

“It does kind of tie our hands,” Sollie said. “We’ve been doing this for 40 years, and we have enough knowledge to figure out approximately what a payment would be, but there are so many variables it’s hard to put it all together unless you can have a conversation.”

Sollie said he suspects the state is using consumer protection to gain revenue from licensing fees, and is hopeful the association’s efforts will pan out.

“I’m 70 years old, and I’ve been in this industry for 45 years. I’ve not done harm to anyone,” he said. “What I have done is facilitate people getting into

much-needed homes, and that’s all I want to continue to do.”

Hamilton said the association, in addition to suggested language to exempt manufactured home retailers, also entered bills that would change the max home length for standard commercial transport from 76 to 80 feet. It also is partnering with the home builders and multi-family industry associations, and potentially Delta Airlines, to bring clarity to rules around emotional support animals. MHV

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Q&A with Legacy Housing on Its Place in the Industry and Its Decision to Go Public With Neal Suit, Executive Vice President and General Counsel

T

he day the “quiet period” ended following Legacy Housing’s initial public offering, MHInsider staff posed a series of questions on the company’s history, its place in the market and its decision to go public. Here’s what they said:

How long have you all been operating?

Legacy Housing was co-founded by Curt Hodgson and Kenny Shipley in 2005.

Curt and Kenny had both been in the manufactured housing industry for 20+ years prior to that, including partnering together for much of that time, but Legacy was their first venture into the manufacturing side of the business.

Are you still in the original plant?

How have you expanded?

Legacy still operates from its original plant in Fort Worth, Texas. Legacy, however, has brought online two additional

66 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

plants since Legacy first opened its doors; one plant in Commerce, Texas, and most recently a plant in Eatonton, Georgia.

The plant in Eatonton is approximately 388,000 square feet, and we believe it is the largest manufactured home facility operating in the United States.

In 2018, we also opened our corporate headquarters in Bedford, Texas — in between Dallas and Fort Worth — as well as opened a sales office near Atlanta to support our Eatonton plant and Southeast operations.

BUILDER / RETAILER

What types of homes/floor plans do you focus on? Single- or multi-section, for open land or communities or both?

Legacy offers a wide variety of homes and floorplans, including single-wides, double-wides, tiny houses, park housing, and workforce housing, which is often used by clients in the oil and gas industry.

Legacy offers houses as small as our tiny homes that are under 400 square feet, and as big as a 36-wide home that is almost 2,700 square feet. Legacy endeavors to make our houses the best value in the industry, not only due to our very competitive pricing, but also because we take the time to think about what is going to make living in our homes a better, more enjoyable experience. That’s why the more than 70 copyrighted floor plans used by Legacy take into account

and leave plenty of walk-thru space. At Legacy, we try to think about those things that our competitors sometimes overlook, whether it’s where the trash can goes, where the windows are situated, or the placement of the dining room table.

We want to make living in a Legacy truly a home for all the families that buy and live in our homes.

we can easily serve states like Ohio, Indiana, Illinois, Michigan, Pennsylvania and western New York. But we’d only do that if the situation and cost made sense to the company and our shareholders.

How many states do you deliver to? Which ones? And how do you anticipate expanding geography over time? I.E., what states when?

Legacy has a robust network of independent retailers that sell our homes.

Legacy is proud of the long-standing relationships we’ve built with these independent dealers, many of whom have been with Legacy from the beginning.

Legacy has also opened around a dozen company-owned stores, many of which are in the Southeast, as Legacy builds out its distribution network in that region. Many of these stores operate under Legacy’s Heritage Housing brand.

We primarily deliver to approximately 14-15 states, largely in the Southwest and Southeast. In total, we can deliver products to approximately 65 percent of the manufactured housing markets with our current plants and distribution network. Legacy is always willing

How do you sell your homes?

A dealer network, independent retailers, from the factory?

Photo courtesy of Legacy Housing

those things that really matter to our customers that make our homes highly functional and livable, such as making the floorplans furniture-friendly so that furniture goes in places that make sense

to consider the right opportunity for expansion, including geographically, if it makes sense. One area we do have our eye on for the future is a possible expansion into the ‘Rust Belt,’ so that

We also do substantial business with manufactured home communities and parks across the country. continued on next page

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BUILDER / RETAILER continued from previous page

What is it that sets Legacy apart from its competition?

We believe Legacy is the best bang for the buck in the industry. Our customers love the f loorplans and features we can offer across our different models.

And we can provide this value because Legacy is such a vertically integrated company. We design the homes we manufacture. We cut out the middlemen and directly source many of the materials we use. We manufacture many of the components in-house, including building the frames and having our own lamination facilities in both Texas and Georgia. We have a fleet of trucks to transport homes from our factories.

And we offer financing options for our products, including to consumers and manufactured home parks, and we offer floor plan financing to our independent dealers. In short, by controlling all aspects of the manufacturing process, we can offer end-to-end solutions that result in a better product at a better price.

Tell me how you decided to go public. Was there one key reason, or cumulative?

There were several reasons Legacy opted to go public. For one, the public platform offers Legacy more visibility and credibility with dealers, customers, parks, vendors, and capital sources. Being public also provides an opportunity for Legacy to recruit and retain top talent to help Legacy grow and build out its management team. It’s going to be easier to go out to colleges, business schools, and our competitors and recruit the next generation of leaders at Legacy when we are listed on the NASDAQ, not to mention the possibility of now offering stock options to attract top talent. And, finally, being a public company is just a different world when it comes to how a company is valued in comparison to privately held entities. MHV

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EVENTS

SECO Symposium Continues to Expand

By David Roden

S

ECO (South East Community Owners) started as a small group of community owners, mainly from the Atlanta area, who would meet for a few hours to discuss problems and issues they all shared, with the hope they could help each other.

From those humble beginnings, the group’s annual symposium has turned into one of the largest small to midsized manufactured home community meetings in the nation. Last October, community owners, managers, vendors and exhibitors from 26 states met at the Atlanta Airport Marriott for SECO18, the group’s ninth annual meeting.

Today’s SECO gathering, while much larger and lasting three days, still has the same focus — to help other community owners be the best they can be and to help improve the industry by better management and by buying new homes to fill empty lots.

SECO has had a great working relationship with manufacturers over the years, including Giles, Horton (now closed), Clayton Savannah and Waycross, Fleetwood, River Birch (now closed), Champion, Legacy, Hamilton, and Schult.

Last year’s event was the first without new Community Series Homes at the show. Due to the difficulty of finding a location in Atlanta big enough to hold so many attendees, along with lodging,

food, and an adequate meeting space, it became nearly impossible to find a hotel that also could handle so many homes in its parking lot.

the group’s annual symposium has turned into one of the largest small to mid-sized manufactured home community meetings in the nation.

The SECO group has asked Dennis Hill, the coordinator of the Louisville and Tunica shows, if SECO can hold a meeting during the 2019 Tunica Manufactured Housing Show. Hill and his committee agreed. So, watch for a Tunica announcement from SECO.

SECO19 will be held Oct. 9-10 at the Hilton Atlanta Airport (pre-SECO workshops are scheduled for Oct. 8).

SECO is a 501(c)(3) nonprof it organization. SECO is and always has been for community owners, by community owners. Everyone is welcome. For more information, visit www.secoconference.com. MHV David Roden is co-owner of Mountain View Estates in Rossville, Ga., with his wife Judy.

He and his family live onsite and have one of the only tornado shelters in the area that can hold every resident of the community.

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Industry Events

Upcoming

EVENTS

IMHA Annual Conference & Member Meeting

April 28-29 • Bloomington, Ill. DoubleTree by Hilton Hotel Bloomington The Illinois Manufactured Housing Association invites members to Bloomington for legislative and regulatory updates, networking, and education programming to help grow your business and sell more homes.

2019 MHI Congress & Expo

May 6-8 • New Orleans, La. Hyatt Regency New Orleans The national trade show where you can obtain the knowledge and resources necessary to excel in today’s housing marketplace.

Choose from attending educational programs with powerful speakers, networking with the industry’s most successful professionals, developing new business ideas and visiting the exhibit floor to see the latest products.

Manufactured Housing Communities of Arizona

May 15-17 • Chandler, Ariz.

Wild Horse Pass Hotel & Casino This conference showcases retailers of manufactured homes and recreational vehicles, as well as suppliers of goods, materials and other services to the industry

together to learn the latest trends in community operation, management, finance, sales and products.

28th Annual International Networking Roundtable

September 11-13 • Location TBA Hosted by George Allen, this conference draws hundreds of the leading land-lease community owners and operators for a discussion on best practices and deal making.

MHI Annual Meeting

September 22-24 • Savannah, Ga. The Westin Savannah Harbor Golf Resort & Spa MHI’s largest membership meeting of the year provides an opportunity to exchange information with industry friends, stay current on housing marketplace trends and attend the board, committee and division meetings. Several awards will be presented.

2019 WMA Convention & Expo

October 7-10 • Reno, Nev. Grand Sierra Resort and Casino Western Manufactured Housing Communities Association’s annual event blends educational programs with entertainment and networking forums.

SECO19

MHI Summer Legislative Fly-In

October 9-10 • Atlanta, Ga. Hilton Atlanta Airport The South East Community Owners annual symposium has turned into one of the largest small to mid-sized manufactured home community meetings in the nation.

Two Days of Plant Tours and Educational Seminars

November 13-15 • Chicago, Ill. Westin Michigan Avenue Chicago Join MHI at the only strategic executive-level event of the year for those involved with manufactured home communities as an owner/manager, manufacturer, service provider, broker, lender, or consultant.

June 10-11 • Washington, D.C. The Liaison Capitol Hill An intensive two-day program that gives participants an inside look at the public policy process. Participants also visit their members of Congress to advocate for the industry.

June 17-18 • Elkhart, Ind. RV/MH Hall of Fame Two days of factory tours and educational workshops. Retailers, community owner/ operators and vendors from around the nation will have the chance to come

70 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

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EVENTS

Registration Now Open for the 2019 MHI Congress & Expo

By Kaitlyn Palatucci

T

he largest national event from the Manufactured Housing Institute (MHI) for industry professionals is around the corner. The MHI Congress & Expo planning is well underway.

MHI’s 2019 event will be held May 6-8 in New Orleans, at the Hyatt Regency.

The exciting new venue for the national show will offer three days of education sessions, networking and expo floor opportunities for all segments of the factory-built housing industry.

Registration is now open and exhibit booths and sponsorships for the event are selling quickly.

This year at the MHI Congress & Expo, the numbers and options will continue

to grow — including education sessions, expo hall booths and sponsorship opportunities. Make plans now to be a part of the expanded expo hall floor with a new

MHI’S 2019 EVENT WILL BE HELD MAY 6-8 IN NEW ORLEANS, AT THE HYATT REGENCY. Grand Prize Pavilion. Or submit your best industry topics for our education sessions in new learning formats being provided throughout the show. If that isn’t enough, we also are revamping our

awards program, offering more exclusive honors to those who make undeniable impacts within the industry.

Plan to arrive early, as activities for the MHI Congress & Expo will kick off before the show on May 5. We are offering two outdoor events, including clay shooting and a golf outing. The third annual Hart King Lutz, Bobo & Telfair Clay Shooting event will be held at the High Point Shooting Grounds in Belle Chasse, and the 15th Annual Oliver Technologies Golf Open will be held at the championship-level course at Bayou Oaks. Both events will benefit the MHI-PAC Administrative Fund. continued on next page

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EVENTS

continued from previous page

MHI will offer full-day pre-event sessions on May 6, including the Developing with Manufactured Housing Seminar and the National Communities Council (NCC) Spring Forum.

Each of these sessions can be added, for an additional fee, to a full MHI Congress & Expo registration.

• Developer Seminar: Designed to specifically address the needs of builders and developers who want to utilize factory-built housing to save time, money and provide affordable options to homebuyers. Attendees will have the opportunity to “Meet the Experts” to review plans and receive advice from seminar faculty.

• NCC Spring Forum: Content curated for manufactured housing community owner/operators, service providers, lenders or consultants to learn practical, real-world solutions. This seminar provides take-home, continued

value to help with your business today and moving forward.

Beyond the deep-dive educational sessions and innovative exhibitors on the expo floor, there will be endless options for attendees to connect. The MHI Congress & Expo offers networking opportunities throughout the show in food and beverage functions, receptions and show lounges. We understand the importance of linking up with other professionals to enrich your business.

• NEW! We are excited to announce that our first Retailers Roundtable will be held May 8, in conjunction with the MHI Congress & Expo. This new event will provide attendees access to the Congress & Expo’s trade show floor, networking events and specialized retailer training sessions. This day event will give manufactured housing retailers insight into Fair Housing laws, financing options and much more. Manufactured housing

74 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

retailers throughout the country should put this May 8 event on their calendars.

Join MHI in New Orleans for endless networking opportunities, one-of-a-kind strategic education sessions and topnotch mainstage speakers for growing professionals in the manufactured housing business.

Our early bird registration discount is available until March 29. Visit www.

CongressAndExpo.com to register today.

Looking to stand out? Book a booth or sponsorship at the 2019 MHI Congress & Expo. Contact events@mfghome.org for more information. MHV Kaitlyn Palatucci is the senior director of business development at the Manufactured Housing Institute in Arling ton , Va . She promotes membership, engagement and industry relations for the association.

INDUSTRY Photo courtesy of Equity LifeStyle Properties

FROM HOLLYWOOD TO MANUFACTURED HOUSING

By Matt Milkovich

INDUSTRY

H

ow do you go from Hollywood to manufactured housing? You start as a kid accompanying your father on real-estate trips, get sidetracked by the movie “Alien,” then return to commercial real estate — including manufactured housing communities — decades later.

That’s the short version of Chris Zarpas’ career. The long version is a little more complicated.

Zarpas, who grew up in Virginia, became acquainted with commercial real estate at an early age. His father and uncle were brokers and developers in Washington, D.C. According to Zarpas, he was well-versed in such concepts as “cash on cash return,” “net operating income” and “percentage rent” by the time he was a teenager.

“From the time he could stand me up, my father would throw me in the car and take me to see property, or to meetings with bankers, developers, and clients,” Zarpas said. “Commercial real estate was the subject of virtually all our conversations. Breakfast, lunch, and dinner, it’s all we talked about. I didn’t realize it at the time, but he was preparing me for a career transition.”

The transition came many years later, after his career took off on an unexpected trajectory. Zarpas was an usher at a movie theater during his college years.

He graduated from George Washington University and Brooklyn Law School.

One night in 1979, the movie “Alien” was playing. It had been playing for months and he had already seen it dozens of times, so on this night, he decided to watch the audience. Standing next to a curtain and looking up at a thousand faces, he saw the reaction to one of the most iconic scenes in movie history — when the alien creature bursts from John Hurt’s stomach.

“I saw the look of sheer, transported horror on a thousand faces,” Zarpas said.

“It had the audience spellbound. I said to myself, ‘I’ve got to do this for a living.’”

Fifteen years later, after finishing law school and starting a career in the movie

industry, Zarpas was working with the director of “Alien”, Ridley Scott, as a producer and the CEO of Scott’s production company, Scott Free. He worked for a few other production companies throughout his Hollywood career, including The Walt Disney Co. Along the way, he produced well-known movies like “The Sandlot” and “G.I. Jane”. One of his productions — “RKO 281”, about the making of “Citizen Kane” — won a Golden Globe for best miniseries or TV film.

By the end of a tumultuous two decades making movies, Zarpas was married with two children. Increasingly uncomfortable with the idea of raising a family in Malibu and Hollywood, he decided to move back home to Virginia.

Commercial real estate seemed like the best fit for a new career. He already

“One of the reasons I’m drawn to the manufactured housing business is that it’s the most affordable form of single-family housing there is,”

- Chris Zarpas, vice president and partner at S.L. Nusbaum Realty Co.

had the experience, and it was the only career he could think of that would allow him to live the lifestyle to which he was accustomed.

Zarpas’ Entry to Manufactured Housing

Zarpas is a vice president and partner at S.L. Nusbaum Realty Co., based in continued on next page

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INDUSTRY continued from previous page

Norfolk, Va. He brokers large commercial real estate transactions across every category of property, mainly in Virginia and North Carolina. One of the categories he’s particularly interested in, and quite fond of, is manufactured housing.

“One of the reasons I’m drawn to the manufactured housing business is that it’s the most affordable form of single-family housing there is,” Zarpas said.

He mentioned other reasons, too.

Manufactured housing is ideal for families that can’t necessarily afford site-built homes, but don’t want to live in an apartment building. And the quality of factory-built homes is now comparable to that of stick-built.

Zarpas said his primary area of concentration, North Carolina and Virginia, is basically “recession proof.”

Both states “enjoy an enormous amount of federal spending”. Virginia’s coastal region has the highest number of mil-

itary installations in the world, one of the reasons coastal property values are so strong. And the coming years will see “significant increases” in defense spending, which will further bolster the economies of both states.

The region is home to a large number of manufactured housing communities — and the military presence gives a significant boost to their occupancy rates. All told, it’s a very stable market, Zarpas said.

As a member of Manufactured Housing Communities of Virginia, the state association that represents the interests of manufactured and mobile home community owners, Zarpas keeps a close eye on industry trends. He’s seeing a few “alarming” signs on the horizon. Many states are contemplating rent controls, and in Virginia, special interest groups have proposed legislation that would require community owners, when selling, to give

a right of first refusal to their residents.

“That’s problematic, because what buyer will make an offer knowing that tenants have the right to match it?” Zarpas said.

“It would make it virtually impossible to sell a community.”

Park owners must be vigilant about protecting their rights from special interest groups that don’t fully understand the business aspect of manufactured housing, he said.

Despite the challenges, Zarpas is optimistic about the future of the manufactured housing industry. He attended the Manufactured Housing Institute’s NCC Fall Leadership Forum in Chicago last fall, and plans to attend more industry events, and to meet more people, in the future.

“There are a lot of really good people in the manufactured housing business who share the mission of providing affordable housing,” he said. MHV

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78 | MHINSIDER™ • MARCH / APRIL 2019 • MHINSIDER.COM

INDUSTRY Kentucky Gov. Matt Bevin, left, tours a home built in Benton, Ky., with Eric Coulter of Champion Homes.

Governor Touts Kentucky’s Potential for Manufactured Housing

By Matt Milkovich

M

att Bevin has a vision for his state. A generation or two from now, when people think of the center of engineering and manufacturing excellence in the United States, he wants them to think of Kentucky.

The current governor of Kentucky shared his vision during the Louisville Manufactured Housing Show, the Midwest’s premier industry event. Bevin gave a brief speech before touring a few model homes on the showroom floor. He made clear that his vision, if it becomes reality, will impact the manufactured housing industry in multiple ways.

When asked to think of the country that exemplifies engineering and manufacturing excellence in Europe, people around the world invariably answer “Germany.” When asked to think of the state that exemplifies engineering and manufacturing excellence in the United States, people give several answers.

There’s no frontrunner, Bevin said.

“Nobody owns it the way Germany owns it,” he said. “And if nobody owns it, what does that mean? That means it’s available for ownership. I want (Kentucky) to own it. We’re well on our way.”

For Bevin, a businessman before he was a governor, the first step is attracting

manufacturers. To attract manufacturers, the state has been boosting its workforce development, streamlining its tax structure and cutting red tape.

Cutting red tape — simplifying rules and regulations — not only makes it easier for companies to sell their products in Kentucky, it makes it easier for them to produce them there. Bevin referenced a manufactured home plant that Champion built in Benton, Ky., in 2016, a plant that he’s visited in the past.

“Your product is as fine a product as exists in the marketplace,” Bevin told his audience of manufactured housing professionals. “Last year 2,600 prefabricated homes were brought into Kentucky. We’d like to see more. What will drive that is demand, and demand comes from an environment where people want to live.”

He listed some of Kentucky’s advantages over its neighboring states. It produces more automobiles than any other state on a per-capita basis. It trails only Washington state in aerospace and aviation production. It’s already a leader in pharmaceutical and medical-device production. It has lots of arable land, excellent weather, more miles of navigable waterways than most states, and plenty of roads, railways and shipping hubs.

Despite these advantages, neighboring states like Tennessee and Indiana have outgrown Kentucky in terms of population.

“We have more natural advantages than they do, but they have more than 2 million more people,” he said. “What’s the difference? It’s tax policy. It’s business policy. It’s getting your financial house in order.

“Imagine 2 million more people. It would transform our entire housing industry. We have room for them, and the ability for them to have quality of life.”

The cost of affordable housing in Kentucky is 30 percent lower than the national average, Bevin said.

“This is a part of the country that benefits well from prefabricated homes,” he said. “These homes are widely used, but could be so much more so.”

Bevin likened the job of putting Kentucky on a firmer financial foundation to cleaning a barn after a long, hard winter.

He has to shovel out a lot of the crap that’s piled up.

“It’s not fun, it’s not easy, but that’s alright,” he told his audience. “You can help us by telling us what we need to shovel out. What’s under the feet of your industry?” continued on next page

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continued from previous page

Workforce Development for Manufactured Housing M H I n sider a sked Be v i n how Kentucky’s workforce development programs can help the manufactured housing industry.

Bevin listed programs such as skilledtrades training and apprenticeship programs in high school and work-ready scholarships for all ages. But the effort he dwelt on is the $100 million the state has offered in workforce development and training programs.

There are five broad employment areas in Kentucky with the greatest number of open jobs. Those five areas — health care, information technology, logistics, advanced manufacturing, and construction — encompass 60 disciplines, including construction trades such as carpentry.

About two years ago, the state government offered $100 million in workforce development for those industries. They

had to compete for them, however. In order to compete, they were required to include the local business community, local high school and local post-secondary school (including four-year universities, technical and trade schools) in their requests for funding, Bevin said.

So far, requests for funding have reached $540 million, he said.

“We got to select the top 18 percent or so,” Bevin said, but “we wouldn’t fund all of any idea, no matter how good. We want local skin in the game, from the business community and local government. People who have a vested interest in something get better results.”

The state’s $100 million has been matched by $150 million of local and private money. That means that in the last two years, Kentucky has invested a quarter of a billion dollars in workforce development, a “significant portion of which is going into the very skills needed in your industry,” he told the manufactured housing professionals.

“These are just seeds going in the ground right now,” Bevin said. “We’re at the very front end of starting to see anything out of that pipeline, but it’s coming.”

He said the state will continue to invest in workforce development programs.

Veterans an ‘Untapped Marketplace’ Bevin mentioned another “untapped marketplace” for industries like manufactured housing: Kentucky’s two major military installations. Every year, 6,000 people leave the military out of Fort Campbell and Fort Knox. Many of these highly skilled, highly disciplined people will go back to their home states, but many might be tempted to stay in Kentucky.

“How can we connect these folks to your industr y? ” Bev in asked the audience. MHV

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continued from page 82

capital for home loans), that they’d have to buy, sell, and often seller-finance new manufactured homes onto vacant rental homesites to stay in business.

It also was during 2009 that Community Series Homes debuted, supplanting

Developer Series Homes of the late 1990s (aka “big box = big bucks” homes, in subdivisions and on scattered sites conveyed fee simple), paving the way for this new, industry-saving focus on in-community sales and lifestyle.

Bottom line? More land-lease community owner/operators now attend the Tunica Manufactured Housing Show than before, slowly tilting new-home marketing empha si s t ow a rd communities and their unique needs.

All told, expect to mingle with thousands of attendees at

THE ALLEN LEGACY

The Tunica Show. And make the very most of the experience by participating in educational events, touring all exhibited homes, and engaging in interpersonal networking whenever possible.

I look forward to seeing you there, Dick Moore, Christine Lindsey and Spencer Roane! All three are RV/MH Hall of Fame inductees and present or past land-lease community owner/operators! MHV George Allen, administrator of COBA7, has owned and fee-managed land-lease communities since 1978. He’s been named MHI’s Industry Person of the Year and is a member of the RV/MH Hall of Fame.

He also has been designated a Certified Property Manager-Emeritus and a Manufactured Housing Manager-Master. He can be reached by phone at (317) 346-7156, or by email at g fa7156@aol.com.

Receipt courtesy of Dick Moore Bill of sale signed by Elvis Presley, proof he bought a mobile home from Dick Moore in 1974.

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Call Kim Scott - Director (MH Operations and Sales) at 248-865-0066 | www.mshapirorealestate.com MHINSIDER.COM • MARCH / APRIL 2019 • MHINSIDER™ |

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THE ALLEN LEGACY

Tunica’s History Ties Into Industry

By George Allen, CPM Emeritus, MHM-Master

M

anufactured housing has no shortage of colorful characters who are also successful businessmen and women. Many will be present at the 2019 Tunica Manufactured Housing Show in Tunica, Miss., March 26-28. And there’s one celebrity in particular you’ll want to meet and greet: R.C. “Dick” Moore of Millington, Tenn.

At 85, Dick is imposing in presence and jocular in disposition. He founded Dick Moore Manufactured Homes way back in 1958 — making it (get this!) the oldest independent (street) MH retailer in the United States! And during his 61 years in mobile home/manufactured housing sales and service, his firm sold more than 29,000 new homes, 1,000 rental units and a 1975 Woodcrest manufactured home to Elvis Presley! Along the way, he developed and filled two subdivisions, owned and operated four land-lease communities, and started his own chattel capital finance company, as well as an insurance company.

Dick was inducted into the RV/MH Hall of Fame in 2007.

For fun, Dick has purchased and restored no fewer than 10 antique and classic cars. These include four Model As, ’32, ’34, ’36, ’38 and ’57 Ford coupes,

More land-lease community owner/ operators now attend the Tunica Manufactured Housing Show than before, slowly tilting new-home marketing emphasis toward communities and their unique needs. roadsters, trucks, and convertibles.

His 1932 Ford B-400 Sedan won the Ford Dearborn Award, which in the auto-restoration world is equivalent to a Heisman Trophy!

With that said, what do Dick Moore and the Tunica Manufactured Housing Show have in common? Well, the obvious pairing is their focus on manufactured housing, especially from the “dealer,” or

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retail sales perspective. And the show, despite being held in three locations during its long history, is still a decade younger than Dick Moore Manufactured Homes. That’s right. This marks the 22nd year of the show being in Tunica. From 1977 through 1997, the show was located in Nashville, Tenn.; between 1968 and 1977, in Atlanta, Ga. (B et you S E CO fol k s don’t remember that!).

The Tunica Show is a-changing, slowly. Until a few years ago, it was undeniably and purposely a “dealer” show; where independent (street) retailers came to view new home designs and order housing stock for the months ahead. During the industry’s nadir year of 2009 — only 49,789 new manufactured homes were shipped that year, compared to 372,943 in 1998 — manufactured home community owner/operators soon realized, given the disappearance of 10,000 MH retailers (due to loss of easy access to chattel continued on page 81

MANUFACTURED HOUSING GROUP

REDEFINING VALUE FOR THE MH/RV ASSET CLASS BROKERAGE & ADVISORY SERVICES  CLIENT

FOCUSED

 DRIVEN

 PROVEN

RESULTS

2018 Review Total Sales

OVER

$381M

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