JANUARY/FEBRUARY 2020
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MHINSIDER.COM
T H E M A G A Z I N E F O R M A N U FAC T U R E D H O U S I N G P R O F E S S I O N A L S
LOUISVILLE MANUFACTURED HOUSING SHOW • JAN 15–17, 2020
Learning from Luxury Brands Bridging the Gap in Changing Times
A Publication of
Adventure Homes Makes Big Plans for Modular Duplexes
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E x p er i en ce Ki t t op i a & t e n n e w hom e d e si g n s from t he Skyl i n e C h a m p i on fa m i l y a t the 2 0 2 0 Lo u isv ille Manu f ac t u re d H o u sing S how
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LEARNING FROM LUXURY BRANDS: ARE WE UNDERSELLING OUR BUYERS?
CONTENTS HAPPENINGS 8 Industry Happenings EVENTS 12 Upcoming Industry Events COMMUNITY 26 Nadi Design, Don Westphal Associates Combine Forces 30 River Villas in Central Florida is an Oasis of its Own Sort 34 How Communities Buy Homes LOUISVILLE MANUFACTURED HOUSING SHOW GUIDE 42 The Louisville Show Reaches for New Heights 46 Louisville Show Map and Exhibitors List 48 Louisville Show Seminar Schedule 49 A Word From the Show Chairman SERVICE / SUPPLIER 52 Alabama College Begins Manufactured Home Installer Training Courses BUILDER / RETAILER 54 Arkansas Retailer Sees Continued Growth in Demand 56 Westward Expansion for Navada Retailer 58 Business Grows With Product Diversity for Michigan Retailer 60 Plattsburgh Housing Outlet Can Be Something To Everyone 64 New Design Studio Creates National Hub for Architecture, Design Thinking 72 Champion Line of Genesis Homes Returns on New Footing SALES 74 The Truth About Lost Sales... and How to Avoid Losing Them 78 “You Promised” (The Two Words You Never Want, But Too Often Hear) THE ALLEN LEGACY 82 The Quintessential Family Business
VOLUME 3 • ISSUE 1 JANUARY / FEBRUARY 2020 MHInsider.com Publisher Darren Krolewski darren@mhvillage.com
Associate Publisher Mark Dollan dollan@mhvillage.com
Executive Editor Patrick Revere patrick@mhvillage.com
Contributing Editor George Allen gfa7156@aol.com
Senior Graphic Designer Merit Kathan merit@mhvillage.com
Contributors Suzanne Felber Steven Blank Josh Weston John Ace Underwood Ken Corbin
Cover Image
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Image courtesy of Lisa Stewart Photography
BRIDGING THE GAP IN CHANGING TIMES
Advertising Sales Joy Adams Call (877) 406-0232 joy@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 ©2020 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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ADVENTURE HOMES MAKES BIG PLANS FOR MODULAR DUPLEXES
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FROMTHEPUBLISHER Resolve to Make Every Day Better Than the Last
N
ew Year’s resolutions are a funny thing. We always start out another year with such good intentions, as if there’s a certain magic bestowed by the turning of a calendar page. Lose weight. Stop smoking. Exercise more. Yet after a few short weeks of enthusiasm, most of us gradually fall back into our old habits. It’s no different in business. We have our year-end planning sessions. We set our goals. We adjust our budgets just so. And the first day back in the office after the ball drops, all that optimism goes out the window. We allow ourselves to get consumed by fresh priorities, become preoccupied with fighting fires and feel overwhelmed by everyday issues. Before you know it, another year has passed and we start the cycle all over again.
...challenge yourself to make just one thing better personally or professionally on a daily basis, no matter how small.
On the subject of resolutions, speaker Michael Josephson once said, “Approach the New Year with resolve to find the opportunities hidden in each new day.” He might have been on to something there. Rather than the traditional list of ill-fated resolutions that are quickly discarded by mid-February, challenge yourself to make just one thing better personally or professionally on a daily basis, no matter how small. You’ll accomplish more of your goals and feel better, too. This issue of the MHInsider certainly provides no shortage of inspiration to help you grow personally and professionally. From learning from luxury brands, to reinventing established business models, and making more informed product decisions, you’ll find plenty of thoughtful insight from our contributors to assist you in making this year better than the last. Most importantly, we’re honored to begin our third year of publication thanks to your readership, feedback, and support. What began as an idea on the back of a napkin has grown to become the industry’s premier print and online trade magazine for manufactured housing professionals. We couldn’t have done it without you, and I couldn’t have done it without our incredible editorial and marketing team. On behalf of everyone at the MHInsider, Happy New Year and best wishes, each day, for a prosperous 2020.
-Darren Krolewski If this sounds like you, you’re not alone. According to an oft-quoted figure by U.S. News & World Report, the failure rate for New Year’s resolutions is around 80%. Which makes you wonder, if so few people succeed in achieving their resolutions, maybe the problem isn’t the resolution or even the individual. Perhaps it’s simply the concept of waiting until once a year to try and reinvent yourself.
Darren Krolewski is co-president and chief business development officer of MHVillage. Prior to joining MHVillage in 2014, Darren held senior marketing positions in the telecommunications, advertising and financial services industries — and was a partner in a marketing consulting firm serving the housing industry.
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 7
INDUSTRY
Happenings Colorado City Considers Residential Code Changes
Greystone Backs California Community Transaction
Woodland Park, Colo., is reconsidering its zoning code after the
Greystone, a commercial real estate lender, investment and
approval of a manufactured home community, The Village at Tama-
advisory company, provided a $33.7 million Freddie Mac loan to
rac, turned up inconsistencies among detached single-family-home
refinance Belmont Shores Mobile Estates, a 347-unit age-restricted
projects in multifamily zones within the city. The review may take
manufactured and mobile home community in Long Beach, Calif.
several months, officials said. The board is trying to update codes
The transaction was originated by Dale Holzer in Greystone’s
that led to a high number of variance requests in 2018. Most of
Newport Beach office, on behalf of Alamitos Bay Partnership LLC
the variances pertained to side setbacks, especially on small lots.
with Don Smith of Sunrise Mortgage & Investment Co. serving as a correspondent.
Sun Communities Closes on Jensen Purchase Sun Communities, Inc., a real estate investment trust with
ROC USAÂŽ Network Expands into Idaho
ownership or interest in manufactured housing and recreational
ROC USA and the local affiliate LEAP ROC in the fall worked
vehicle communities, has closed on the previously-announced
with the owner of Pleasant View Manor in Caldwell, Idaho, to
acquisition of Jensen’s, Inc. The Jensen portfolio includes 31 man-
sell to residents and stabilize housing costs in the park. Caldwell,
ufactured housing communities in eight states comprising 5,230
30 minutes west of Boise, is the fastest-growing metropolitan area
developed sites and more than 460 additional potential expansion
in the country and is feeling the housing cost pressures that have
sites. The total purchase price was approximately $343.6 million,
reached beyond Boise. Pleasant View Homeowners Cooperative
including an allocation of approximately $8.0 million for expansion
became the first resident-owned community in Idaho.
land and adjacent parcels ready for development.
Photos Courtesy of Tharakan Consulting
HAPPENINGS N.Y. Developer Plans Net-Zero Neighborhood
housing community. The borrower purchased the property in 2005.
A Geneva, N.Y., modular home builder has entered the Ithaca-area
The new loan refinanced existing debt and included a cash-out
market with plans for a 43-unit, single-family subdivision on a
feature to acquire other manufactured housing properties. The
nearly 25-acre swath of open land in the village of Lansing. The
loan has a 10-year term amortizing over 30 years, and the first
Solar Home Factory combines modular homes with the features
three years are interest-only.
of a net-zero energy home to create an affordable and efficient new home that runs on its own energy.
California Community Changes Hands
MHI Promotes Vice Presidents Bowersox, Gooch in New Dual Leadership Structure The Manufactured Housing Institute has chosen Dr. Lesli
Karcher Mobile Home Park, a property with 151 homesites,
Gooch as the organization’s next CEO, and Mark Bowersox as
sold for $7.5 million to Boa Vida, a California-based manufactured
the organization’s president. The institute voted to change its
home and RV park ownership group. The previous ownership
bylaws in order to create the dual leadership structure. Gooch
group, Elevate Commercial and Patriot Parks Management, bought
and Bowersox, who have served as executive vice presidents at
the park in 2018.
MHI, succeed outgoing President and CEO Richard Jennison who retired at year’s end. The announcement was the culmination
New Land-Lease Proposition in Atlanta
of a months-long search to find and name new organizational
The city of Atlanta has launched a ground-lease program designed
and industry leadership. MHInsider’s March/April edition of the
to protect “legacy residents” who want a path to homeownership in
magazine will have expanded coverage on MHI’s new leadership
their neighborhood but can’t afford a mortgage. Invest Atlanta works
structure, as well as plans for 2020 and beyond.
through the Atlanta Land Trust so buyers using the ground-lease program can purchase a home and lease the land it sits on from
Bennett Truck Transport Buys Roadmasters
the city at $1 per year for up to 99 years. If the home is sold at a
Bennett Truck Transport has purchased RoadMasters Transport
later date, the owners keep any appreciation on the structure, while
Company and its open-deck, general freight carrier RoadMasters
the land remains in the city’s hands. Other local governments in
Power Transport. RoadMasters is an Athens, Texas-based private-
Virginia, Oregon and Washington also are testing the approach.
ly-held company founded in 1978. The RoadMasters Companies have provided over 41 years of service to shippers of manufactured
Tempe, Ariz., Community Refinances
housing and modular buildings, and almost 15 years of service to open-deck freight shippers across North America. With this
Hunt Real Estate Capital provided a Freddie Mac conventional
acquisition, Bennett increases its fleet capacity by 100 toter own-
multifamily loan in the amount of $35 million to refinance a 4.5-star
er-operators and 145 open-deck owner-operators in its general
manufactured housing community located in Tempe, Arizona.
freight network. »
Contempo Tempe is a 454-pad, age-restricted manufactured
HAPPENINGS Community Owner Commended for Rehab
the first community in the state to receive
tured housing communities, announced
funding through the COL MOD program.
an expansion to the Prairie Greens, a
One of Murray, Utah’s oldest manu-
MSHDA’s Acting Executive Director Gary
community in Frederick, Colo. Prairie
factured home communities, a few years
Heidel said the city meets the criteria of
Greens is an affordable housing community
ago was slated for demolition until it was
having a workforce housing shortage, is
that includes just under 300 modular-built
purchased by a new owner. Winchester
an income-eligible community and has
homes. The expansion will add almost 70
Estates is on more than 60 acres along the
available sites for infill or new construction.
homes to the community.
Board Considers Expansion to Maine Community
Oregon Senior Community Faces Redevelopment
Jordan River and adjacent Murray Parkway Golf Course. The 200 community residents were able to keep their homes. Investment Property Group, of California, purchased
The Waterville, Maine, Planning Board
The Springfield, Ore., City Council
the property in 2017 and added new homes,
is considering the proposed expansion
voted in favor of redevelopment for the
a gazebo, and is building a new clubhouse,
of Countryside, a manufactured home
Patrician Mobile Home Park, approving
among other improvements.
community in central Maine. The project
the rezoning of the land to mixed-use
would increase the mobile homes in that
commercial. Residents at the 13.6-acre park
area to about 225, according to the plan.
with 81 homes are finding other places to
Work is to begin in the spring, if approved.
live. The developer, Urban Transitions,
New Modular Home Part of Expanding Program A new modular home at 74 Thompson Boulevard in Coldwater, Mich., was installed with funding from a re-payable
L.L.C., wants to develop new restaurants,
Frederick, Colo., Community Expands
grant through the Michigan State Housing
YES Communities, one of the nation’s
Development Authority. Coldwater was
largest owners and operators of manufac-
businesses, and apartments in place of the mobile home park.
South Florida Community Under New Ownership Aquarius Mobile Home Park in Homestead, Fla., sold for $22 million. The community takes 24.3 acres and last was purchased in 1997 for $1.3 million. Walker & Dunlop provided a $17.5 million loan for the latest acquisition.
Obituary MH Supplier, Arkansas Association Leader Mourned Robert J. White Sr., age 86, of Hot Springs, Ark., formerly of Warren, passed away Oct. 28, 2019, at Quapaw Care and Rehab in Hot Springs. He was born June 9, 1933, in Monticello, Ark. A retired business owner, White founded and operated White’s Heat & Air and White’s Mobile Home Supply. He also was past chairman and a Hall of Fame member of the Arkansas Manufactured Housing Association. White proudly served his country during the Korean War and had been a master sergeant in the U.S. Air Force. MHV
10 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
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upcoming INDUSTRY EVENTS Louisville Manufactured Housing Show 2020 | Jan. 15-17 Louisville, Ky. — Kentucky Exposition Center The Midwest’s premier event for manufactured housing professionals. The annual show brings out an array of new manufactured home designs, the latest in technology, the best in supplier offerings, and a look at all the newest amenities and system-built options the industry can offer.
International Builders’ Show | Jan. 21-23 Las Vegas, Nev. — Las Vegas Convention Center The 2020 Builders’ Show will bring together more than 1,400 top manufacturers and suppliers from around the globe in 600,000 net square feet of exhibit space, showcasing the latest and most in-demand products and services, including the entry of new HUD-code product from Skyline Champion Corp.
TexCO2020 Houston Conference | Jan. 23 The Woodlands, Texas — The Woodlands Waterway Join Sunstone, Mobile Insurance, and the Texas Manufactured Housing Association for the fourth annual TexCO Houston Conference for networking, education, and deal-making.
MHI Winter Meeting | Feb. 18-20 Nashville, Tenn. — Hilton Nashville Downtown The Winter Meeting provides another opportunity for members to network, exchange information, hear about the latest housing trends, and learn about industry issues. In addition, various MHI boards, divisions, and committees will meet to discuss and debate issues important to their members.
12 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
Have an event you'd like listed here? Call Executive Editor, Patrick Revere, at (616) 888-6994, or email at patrick@mhvillage.com
The 2020 Tunica Show | March 24-26 Tunica, Miss. — Hollywood Casino The Southeast’s premier event for manufactured housing professionals. As the largest outdoor manufactured housing show in the nation, the Tunica Show captures the attention of the manufactured housing industry as few events can.
IMHA Annual Conference & Member Meeting | April 22-23 Oak Brook, Ill. – The Drake Hotel The Illinois Manufactured Housing Association invites members for legislative and regulatory updates, networking, and educational programming to help grow your business and sell more homes.
2020 MHI Congress & Expo | April 6-8 Las Vegas, Nev. — MGM Grand The national trade show where you can obtain the knowledge and resources necessary to excel in today’s housing marketplace. Choose from attending top quality educational programs with powerful speakers, networking with the industry’s most successful professionals, developing new ideas for your business, and visiting the exhibit floor to see the latest and greatest products and technologies.
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MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 13
TRENDS / INSIGHT
‘You would think spending time researching luxury brands and how they do business would be a waste of time, but that couldn’t be further from the truth.’ –Suzanne Felber
Learning from Luxury Brands: Are We Underselling Our Buyers? By Suzanne Felber Photos Courtesy of Lisa Stewart Photography
T
hink back for just a bit. Who would have ever thought five years ago that manufacturers would be able to affordably offer ceramic tile, stainless steel farm sinks, and large, walk-in showers in their homes? It’s increasingly common for manufactured home professionals to have a photo album on their phones of amazing homes they’ve seen, or been a part of bringing to market. My regular rounds provide a nice album of merchandised interiors for Clayton Homes. A sweep through five or six images can change even the most jaded opinions of our homes. »
TRENDS / INSIGHT
Why Not Find A Way? Patriot Homes had heard about my work from some of the leading site builders and invited me to work on their homes. As an introduction, the plan was to attend The Tunica Show and walk every home, come back with suggestions on products that could aid the designs. The purchasing agent at the time had other plans. The reason? Because “We don’t do things that way in our industry”. After getting to know each other, and with some give and take on both sides, the plan came together and we were able to provide some innovative but still cost-effective looks for consumers who are influenced by HGTV and the home decor magazines. Add to that, our project gained the attention of Home Depot, which designed some product lines just for us.
The Louisville Show Among the greatest places to get inspired is the professional seminars at trade shows. It’s a great place to hear the valuable success stories, and to learn from some great experiences. Last year it was a real treat to speak at the Louisville Show and to see the evidence of how far we have come as an industry. Typically at shows we get to see the best of the best, but it’s an industry show and not a consumer show. So, how do we share who we are now? How do we share with potential customers who think we are still the mobile home of the 1970s? More than 90% of consumers now start their home search online, and if homes aren’t professionally staged and photographed, it will be harder to convince that consumer to come to see the place in person. Many of the major manufacturers provide photography to help you sell homes. But what if the customer falls in love with the home they see online ad? If they come to your community or retail center and see something with no skirting, dated furniture, and no electrical power, they are going to feel deceived. So for practicality, and for progressive business practices, we are tasked with creating masterfully staged home that can be photographed and made available for tours.
But Why Luxury Brands? You would think spending time researching luxury brands and how they do business would be a waste of time, but that couldn’t be further from the truth.
TRENDS / INSIGHT Many of the trends and products that consumers want start at the luxury side of the business, then filter down to affordable design. Progressive manufactured home builders have recognized this. You’ll see some of their team members walking shows like the International Builders Show, The Kitchen and Bath Show and the High Point Furniture Market. They are learning about new trends that connect with consumers now - many at price points way above what our customers expect to spend. But they take these ideas home. They do some research on how to get this look for less, then incorporate it into their homes. Something that many luxury brands are good at is listening. They don’t tell their customers “we can’t do that,” they say let’s figure out how we can make your dreams come true.
he discovered their frustrations with buying at home the wines they discovered when they traveled, and how many stores wouldn’t even try to help them get what they wanted. They tried to sell the customer something else. Sound familiar? If you think our industry has a lot of rules and regulations, you should research the wine and spirits world! But, not one to take no for an answer, Boisset kept asking questions, kept researching, and discovered a way to sell directly to consumers through “ambassadors”. These were and are friends and neighbors in the community who could assist on wine journeys and get the best value for customer tastes. Customers can go online and buy wine from the wineries and it’s delivered right to their home, cutting out the middle man, and also making sure that the wine has been stored correctly. A brilliant move for everyone, but The Fruit That Makes The Wine LG's Experience and Design few people are as brave as Boisset. He alone completely Center in Napa Valley, Calif. Jean-Charles Boisset is the perfect example of this. When changed an industry. he was 11 years old his schoolteacher grandparents brought Think about what listening more to our customers could him on vacation to the United States from France, and as do for our industry as well. someone who grew up in wine country, he fell in love with LG Appliances is one of the most highly respected Napa Valley - especially the Buena Vista Winery. He said appliance and electronics companies in the world. Based right then that someday he was going to own that winery. in Korea, the company understood other markets but were After coming back to the U.S. for college, he did buy it and having trouble understanding, and selling to the luxury restored it to its original grandeur. The Boisset Collection buyer in the U.S. Wisely, they hired a well-known and is now 27 wineries in the U.S. and France and has expanded respected leader in the luxury appliance world, and started into a luxury lifestyle brand. After listening to his customers, Signature Kitchen Suite. One of the first things they did was Luxury wine and lifestyle brand The Boisset Collection traveled to cities coast to coast and hosted “Alchemy of the Senses”.
TRENDS / INSIGHT
to build and open their Experience and Design Center in Napa. When asked why Napa, the answer was that “it’s the destination for the culinary world and close to Silicon » Valley, the hub for the tech world.” Since they build smart technology appliances for their Technicurean® customers (a word they came up with and trademarked), the location made sense. What does all of this have to do with manufactured housing? Everything.
Extend the Invitation When is the last time you asked customers or potential customers for an open dialogue on what they want? Or are we price selling or value selling? Do we just assume our customers are on a particular budget? Do we educate them first and see what upgrade or home can be something they want and will pay to have? One impressive interaction recently came from Bryan Rogers, regional vice president for Clayton Homes. We had a day with the sales team in Desoto, Texas. Rogers was inside the homes, showing the teams all of the special features. He covered how to show the homes to potential customers. We all learned a lot listening that day, and as the merchandiser of these homes, it helped me understand the features I needed to highlight with my designs.
What To Do Next? I’m going to break the rules (again) and offer some suggestions - And I would love to hear your ideas as well. 1. P ress Tours and a guided consumer tour of our homes at shows: It’s understandable that we want to avoid having non-industry people in our homes at trade shows where pricing is shown and conversation can go 18 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
in a lot of different directions. But what about doing a preshow or something after hours at a specified time that allows media, bloggers, inf luencers, and potential homeowners to take guided tours through our beautiful homes? Tour them like Bryan with the Desoto sales team, showing them what makes our homes such a great value. Let them take a lot of photos that they could show to friends and share on social media. Pricing could be removed, and we could show them what we want them to see. 2. We expect the customer to always come to us: Why don’t we go to the consumer? Jean-Charles Boisset is doing this by hosting the “Alchemy of the Senses” tour. He has gone coast to coast renting luxurious estates that happen to be for sale, and brought his team of chefs, designers, sommeliers, and marketing people with him to create an experience of a lifetime. People tend to remember tasting experiences more than visual ones, and an event like this proves that point. Teaming with retailers and communities in an area where the consumer lives, and creating a unique sensory experience where they could see, touch and understand our homes sounds like an “out there idea”, but it would set us apart. Food actually cooking in our kitchens, people tasting and chatting in our dining rooms, playing and cajoling in our family rooms, gathering in our flex or outdoor spaces. 3. Get social: Yes, the mention has been made, but social media is more important than ever
because this is truly where your customers are spending their time. Creating a Pinterest account and sharing unique design details in your home, or recipes that can be cooked in your kitchens, or lifestyle shots and ideas really can make people rethink their perceptions about manufactured housing. 4. Sell it, Don’t Save It: Shari McLellan and her team at Clayton Homes of Victoria have figured out that it makes a lot more sense to sell her lot models furnished than to move everything into storage and try to reuse it later. This gives them the advantage of saying “yes!” to that customer who wants a home that looks as good as the model - they can own the model home and everything in it. And, The homes on their lot are always fresh and up to date. When you are attending and touring our industry shows, or some of the shows for other industries, don’t forget to take many, many photos. Pick up the literature. Ask the questions. All of them. Challenge yourself to take home at least one great idea every day. 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, 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 @lifestylist social media posts.
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MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 21
COMMUNIT Y
Steven Blank of Blank Family Communities walks a property for a new client.
Bridging the Gap In Changing Times By Steven Blank, Blank Family Communities
O
ver the past five years, the manufactured housing industry has been one of the hottest multi-family housing investments. An influx of community investors/owners has caused consolidation among operators in the country while increasing their market share. In 2015, the largest 50 operators owned and managed 500,000 sites while, in 2018, the largest 50 operators owned and managed 700,000 sites.
COMMUNIT Y
During a property inspection, father and son Ronald and Steven Blank survey a client’s property from the front porch of a model home.
Times have changed I’ve seen this industry’s evolution firsthand from the vantage of virtually every job in the business. Today, it is as president of Blank Family Communities, a third-party property management company based in Michigan, and over a career that dates
back 15 years. My family successfully owned and operated Franklin Communities for 35 years before selling their 2,500 site Michigan portfolio in August of 2018. I was taught and learned a “boots on the ground” approach to operating, and that it takes industry knowledge, people skills,
accountability, and follow-up to be profitable in the near and long term. I have worked with three of the top 10 largest operators in the country and have consulted, acquired, and/or sold with another 50 operators. I have seen the good, the bad, and the ugly. »
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 23
COMMUNIT Y
The days of passively collecting rent from manufactured home communities at scale are over – unless you already have a stabilized portfolio. –Steven Blank
With the industry consolidation comes new players with new ideas. After recently attending the Michigan Manufactured Housing Association (MMHA) expo in Novi, Mich., in October, and speaking to several longstanding operators, I realized that there is a disconnect between new and traditional operators’ views on how to be successful. At the same time, our industry is being moved forward by state and national associations that have everyone’s best interests at heart. That’s a very good thing as the fights we are all are facing need to be faced together. I have operated and seen methodologies, strategies, and approaches to our industry on both sides of the old-new equation and I firmly believe that bridging the gap between the two needs to occur.
The Old Way How many times have you heard, “There’s no need to reinvent the wheel?” That comment is a long-time 24 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
staple of our industry, which has had relatively the same business model for the past 50 years: Having a community that is filled with resident-owned homes and residents who pay monthly site rents in exchange for community maintenance, and operating the land on which the home sites reside. The cost of the maintenance on the land traditionally is low compared to the revenue that is brought in, so the community, if well if occupied, is a great investment and source of cash flow. This scenario is becoming less and less common as it is no longer easy to sell homes, post-recession. Moreover, many MH loans, in the Midwest and other major pockets across the country, require community owner recourse. The recession also created the need for communities to pivot their business model to include rental homes. The impact of this business model shift cannot be understated. It changed the landscape of the industry.
In the past, bringing in and selling a new home was simple. There was little liability to the community owner. With recourse loans and rental homes, the community owner is never free of liability as they have a financial stake in the success and/or failure of the residents. The days of passively collecting rent from manufactured home communities at scale are over – unless you already have a stabilized portfolio. This shift has made the refined operation of communities much more critical and labor-intensive. The result is that there are a dramatically reduced number of communities that can be operated efficiently with a passive management style.
Today’s Value-Add Approach Value-add is the most common buzz word I hear in the industry today. I believe the term has lost some of its merit. Because communities lost occupancy and revenues during
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the recession, many communities currently being purchased still have vacancies, deferred maintenance needs and in some cases are below market rent. Ideally, when purchasing such a community, an operator will infill the community with new homes, sell some and rent the rest. They will revitalize the community by completing deferred maintenance, and, once value is added and the resident base is happy, the rents are raised, sometimes incrementally, to market value. In this situation, you now have a stabilized asset that will yield positive cash flow – if the operating system can sustain the new changes. The biggest difference between the new companies and the traditional players is their operating structure and the stability of their portfolios – meaning, many communities acquired
and owned by traditional operators paid significantly less aggressive capitalization rates. New players need to be more efficient with their value-add and operations, as the profit margins on communities purchased today will be lower due to the high capitalization rates that have become the norm. Along with acquisition advantages, old school operators documented operating systems and continually trained and supported corporate and field staff, all of whom contributed to these companies enjoying sub 5% delinquency and high occupancy numbers. Newer companies, on the other hand, focus far too much on the acquisition and not enough on the operation. That’s simply not a great recipe for long-term success. As an industry, we are facing more attention and scrutiny than ever. As
such, it is important that all of us make sure that we are operating our communities profitably and efficiently while providing value to our residents. That way, we can remain the most viable form of affordable housing in America and continue to gain popularity across wider demographics. MHV Steven Blank is the president of Blank Family Communities, a third-party management group in the Midwest, with 10 years of MH owner/operator experience and membership in the MMHA. He has a bachelor’s degree from Oakland University in industrial/organizational psychology and is the creator of the Blank Operating Method.
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COMMUNIT Y
Nadi Design, Don Westphal Associates Combine Forces By Patrick Revere
A
highly regarded landscape architect and commercial design firm based in Michigan has merged with another respected group of urban planners and design professionals operating in parts of Canada and the United States. Donald Westphal, of Westphal Associates, and Emeka Nnadi, of Nadi Design, announced the merger and succession plan late last year. “I’d had conversations with two or three other parties trying to establish a legacy for my company and nothing seemed to fit right in terms of my goals and the way we go about our process in land planning and relating to our customers, and the sensitivity we have to people who reside in our communities,” said Westphal, who operates from Rochester Hills in the Detroit metro area. Westphal has been active in manufactured housing, multi-family and other residential development efforts for the last 50 years. He’s helped in planning and consulted on some of the country’s most magnificent manufactured home communities, and is respected throughout the industry. “It’s really time to move beyond growing my individual firm to help grow a partnership,” Westphal said. “Being involved with Emeka will allow us to expand our services into more detailed design after the basic land plan is complete. I see a great opportunity for a large impact in all three of these areas.”
26 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
Don Westphal, left, and Emeka Nnadi, will operate their new combined offering as Westphal Associates.
Mentorship and Succession in Planning, Development The pair were acquainted through a mutual friend in the business. “We connected and began to chat about how all this might look and here we are shaking hands on a deal that will help carry on his legacy with us,” said Nnadi, who operates from Winnipeg, Calgary, and Atlanta, Ga. “There always was a desire to take our success solely based in Canada to offering services in the United States,” Nnadi said. “From that perspective, meeting with Don and seeing how similar our practices are, that was a huge opportunity for me.” Nadi design is a 10-person firm that provides services to the three central provinces, Alberta, Saskatchewan, and Manitoba. “I really relate with his experience because I am in the middle of that development myself,” said Nnadi, who looks at Westphal as both a colleague and mentor. “I frankly stand to learn a lot in the next couple years in regard to some of the stuff Don does specific to manufactured housing and RV properties.” Westphal sees the merger as an opportunity as well, particularly further capitalizing active Canadian markets. “I will work on projects with Nadi Design for two years at a minimum,” Westphal said. “If I’m willing and able at the end of two years, I could serve as a consultant for Emeka’s company. At this juncture, I don’t see a time when I will not want to be contributing to the business.” MHV
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COMMUNIT Y
River Villas in Central Florida is an
Oasis of its Own Sort
By Patrick Revere
A
way from the highrise developments, postcard beaches and tourist attractions sits a destination community called River Villas, perched on the banks of the St. Johns River amid some of central Florida’s most charming cities. “This presence on the river and the marina, it makes the community a major draw,” said Terry Pierson, who helps market the community for the owners, his son-in-law Ross Perkins and business partner Barry Klopstad. “It’s a beautiful spot. It’s a quiet, country setting,” Pierson said about River Villas, in Putnam County about 30 miles west of St. Augustine. “The St. Johns River runs through the nearby town of Palatka. It’s a big, beautiful river and an international destination for sport fishermen,” he said. “Palatka is a cute little town and I think it’s viewed as a ‘new find’ in terms of lifestyle and affordability. This part of Florida has more of a laid back, southern feel than most parts.”
Expanding River Villas By Setting Up, Selling Model Homes Perkins and Klopstad purchased River Villas from its previous owners in April of 2016. The community was in good shape, and the residents were happy. But there were improvements to be made. 30 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
The owners replaced a pair of AC units that were original to the 5,000 square-foot clubhouse. They added wifi for the clubhouse, pool, and surrounding common areas. A keypad was installed on the clubhouse doors so residents could have access at all times. “We’ve put a lot of attention into updates,” Perkins said. “We added a big heat pump to the pool and we put in new Trex decking down at the marina. The owners and their team also are purchasing model homes for sale. The community can expand by another 40 homesites, and Perkins has been buying from Champion, Homes of Merit, Clayton, and Fairmont. “Essentially we will keep three models at all times and buy another new home every time someone moves in,” Perkins said. “We’ve been really happy with the community. This is the first time I’ve been involved in adding homes to a community, so it’s been an interesting bit of learning for me,” he added. “But the residents in the community are delightful and very well self-organized as far as community activities. It’s been fun to get to know the residents and watch the community grow.” Each homesite is either 50-by-90’ or 50-by-60’ in dimension. All homes in River Villas are semi pit-set, and each home includes a concrete driveway and carport. The $425
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River Villas is situated on the water in north central Florida. Photo courtesy of River Villas.
monthly lot rent includes water, sewer, trash, and lawn care services.
Finding A New Home at River Villas Maxine Bolan lived in Jacksonville for 20 years where she worked in real estate before re-configuring her life and becoming a seasonal resident. “We bought a motor home and decided a place like River Villas would be ideal for us, knowing that when we’re out on the road our place is well taken care of and looked after,” Bolan said After moving into the community, Bolan began helping Perkins and Klopstad with home sales. She’s lived in River Villas for four years. “It’s a small community, very well kept, and the community is very active with a lot of friendly people,” Bolan said. “We have ladies luncheons, we play cards, we have a dinner night out and people just look after each other. It’s a really nice place to be.” The clubhouse has a jukebox and activity rooms that serve as venues for art classes, yoga, card games, and birthday parties. The community also has newly sealed and paved streets, curb cuts, sidewalks, street lighting, onsite RV/boat storage, and a pair of gazebos near the water.
“That’s where people gather for a glass of wine, and some time to converse,” Pierson said. “There are a couple of fire pits down there, and the views of the water are great. It’s a nice spot.” MHV Patrick Revere is executive editor for the MHInsider magazine, as well as the MHInsider blog and MHVillager, a lifestyle and resources blog for homeowners and residents. He is an award-winning journalist and writer who has written extensively about manufacturing, real estate, management, technology, the building trades and the labor markets.
Community Quick Facts River Villas 239 E Buffalo Bluff Road • Satsuma, FL • 55+ Community • 72 Homesites • Built in 1993 • Home Prices: $115,000 • Monthly Lot Rent: $425 MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 31
WWW.MONROE-GIORDANO.COM TEL (813) 229-5055 • FAX (813) 229-5363 777 S. Harbour Island Blvd., Suite 140, Tampa, FL 33602
AEP Ohio Offers Incentives for Built-in Efficiency Looking for a competitive advantage? AEP Ohio offers cash incentives to retail centers/ communities and their HVAC suppliers for new energy-efficient manufactured homes within its service territory through their EfficiencyCraftedSM Manufactured Homes Program. Eligible homes are built with enhanced insulation and heat pumps sized to maximize efficiency. This increases the comfort of your customers—and makes manufactured home ownership even more affordable. For more program details, call (614) 360-9309, e-mail AEPOhio-NMH@magrann.com or visit EfficiencyCraftedHomesAEPOhio.com/NMH.
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 33
COMMUNIT Y
Photo Courtesy of UMH Properties
34 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
COMMUNIT Y
How Communities Buy Homes By Patrick Revere
B
y most estimates, there are approximately 40,000 professionally run manufactured home communities in the country. And even though most homes in a community are owned by the resident, few organizations buy more homes than large operators of communities.
So, why and how do communities buy homes? Those who buy homes professionally stay active for many reasons. New communities need homes, as well as communities that are expanding. Community buyers purchase homes that will be marketed as rentals, and model homes that will be used to demonstrate how well-built and thoughtfully designed modern manufactured homes can be.
Homebuying Insight from a Purchasing Professional Ayal Dreifuss is the vice president of rentals for UMH Properties, which owns and operates communities in eight states on the eastern seaboard and in Tennessee. Simply stated, Dreifuss said buying homes in volume can be tricky. “I order hundreds of homes every year for our manufactured home communities,” he said. “Since the demand for rental homes is very strong in all our communities, we’re trying to stay ahead of the game everywhere, by trying to estimate the amount of brand new vacant inventory we’re going to need in each community.” Dreifuss said he buys new homes with the expectation of having them occupied in three months or less. “Estimating the number of homes is the tricky part, where sometimes we fall short for unexpected high demand or vice versa,” he said. »
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 35
COMMUNIT Y
Getting the Needed Pricepoint The final price of a home will vary from location to location and region to region. This has a lot to do with the cost of freight and distances that are traveled for and with the home. Price also is impacted by local code and regulation, both where the home is being built and where it’s being placed. “While homes in Tennessee wouldn’t have to stand for more than 30 pounds of roof load, homes in New York would have to stand for more than 40 pounds of roof load, and require a higher grade of insulation,” Dreifuss explained. UMH Properties also pays more for freight going to New York, because they’re buying from a home building facility in Pennsylvania. The company works with select builders in volume and the Pennsylvania provider is the nearest in their network to New York. “We usually prefer to purchase our homes from the closest location not only to save on freight but also for service purposes,” he said. “In any case the purchase price always has to be competitive, if the prices of the local home manufacturer are too expensive, we would consider getting homes from manufacturers located farther away and even from different states for a lower price.
36 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
“We believe that our homes are strong enough to take a trip of any distance, whether it’s 50 or 400 miles,” Dreifuss said.
What it Means to Purchase in Volume UMH Properties has purchased nearly 4,900 homes since the start of its designated rental program in 2012. The homes they purchase, Dreifuss said, are forecasted to serve residents well for at least 40 years and more. “For that reason above all, we’re not compromising on quality,” Dreifuss said. “We have our special UMH standards that all our home builders are keeping. That includes items such as steel doors, porcelain sinks and tubs, and real wooden cabinets. “Although these options make our homes more expensive, they are all well worth it for the long run,” he said.
Dreifuss said the focus that UMH and its builders put on structural integrity and quality material choice is off-set when possible by avoiding the urge install premium upgrades such as spa tubs or granite counters. “These luxury upgrades we will include many times in our show home inventory… homes that we have for sale, not for rent. The new rental homes have to be well built with the most durable components, that would be able to stand any normal use of our renters, but still be affordable enough,” he said.
What is Customer Response? UMH Properties has focused in recent years on its rental business. In fact, it’s the first large operator to program and build an all-rental community, with its property Memphis Blues in Tennessee.
COMMUNIT Y
We believe that our homes are strong enough to take a trip of any distance, whether it’s 50 or 400 miles. –Ayal Dreifuss
Photo Courtesy of UMH Properties
Attention the company’s rental homes have received has resulted in a waiting list at nearly every property. “Our customers are very excited to move into our brand new homes,” Dreifuss said. “The most common rental home we order is a 3-bedrooms, 2-bath 16x76 single section home. This one is a winner because most people find that a 1,200 square-foot house is a great fit for a family with two or three children.” The end cost for UMH Properties is about $45,000 for that home, which is achievable only because of the volume of purchasing. However, that price point allows the company to charge a new resident, in a new home, only $750 per month. “This is a very affordable price in most areas,” Dreifuss said. “And we can still get the return on our investment within five years.
Another reason the rental program has been successful is because UMH Properties, with the help of the Manufactured Housing Institute, was able to make progress in Washington, D.C., in getting rental home financing for new manufactured homes in a park on a similar footing as the multi-family rental industry.
Homes of Varying Size A good number of UMH residents desire to live in larger, multi-section homes. Those homes, while in lesser numbers, can be rented at a UMH property for between $850 and $950 per month, depending on the location and size of the home. “In some areas we have only small sites available, but we can fit a 1- or 2-bedroom tiny home. Although most of our costumers prefer living in bigger homes, we still have a very
strong market for single men or women, young or older, who want to live by themselves and don’t want to pay more than they have to for their homes,” Dreifuss said. UMH Properties’ rental programs provide millions in revenue each year. And, the massive volume of brand new homes brought into communities every year is having a stunning impact on the overall curb appeal of the communities, Dreifuss said. “It actually has transformed our communities, and our new acquisitions, into exceedingly beautiful and very desirable communities that our residents are very proud to live in at very affordable prices,” Dreifuss said. MHV
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 37
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38 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
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January 15-17, 2020 • Kentucky Exposition Center
SHOW GUIDE 2020 SHOW HOURS
Wednesday, January 15 9:00am – 5:30pm
Thursday, January 16 9:00am – 5:30pm
Friday, January 17 9:00am – 12:00pm
THE LOUISVILLE SHOW REACHES FOR NEW HEIGHTS The Louisville Manufactured Housing Show, one of longest-running and largest manufactured home shows in the country, yet again has reached new heights leading up to the 2020 event, having sold out supplier exhibitor space earlier than any previous year on record and again having achieved a rich mix of manufacturer exhibitors, as well as educational and networking opportunities. “We’ve put together a great mix of service and supply providers for 2020. We sold out so early that we spent much of the end of 2019 building a waiting list,” said Dennis Hill, of Show Ways Unlimited, which produces the annual gathering. “There was so much interest. That feels good.” The Louisville Show is back in its traditional space at The Kentucky Exposition Center, the newly remodeled North Wing. And the added space will be put to good use.
All The Homes in Louisville “Winston and Hamilton Homes have increased homes they’re going to show, each of them going from two to four,” Hill said. “Clayton is showing more homes than they have in the past. Ritz-Craft is back this year, too, after taking some time off. Fairmont, MHE and Fleetwood all will show three homes. And a new manufacturer, Slate, from Cincinnati will display a home. It’s sure to be a great year.” All told, the show will display more than 50 model homes in 2020. Adventure Homes, from Garrett, Ind., seems to have been planning for the show since the day the show ended in 2019. The company will bring seven homes to Louisville. “Every year we have a dominant house among the offerings we show, and sometimes it’s a higher-end home or a modular,” Adventure Homes General Manager Rich Rice said. “This year we’re focusing on the MH Advantage® and CHOICEHome™. “This makes our year,” Rice said of The Louisville Show. “We are invested in this, and we are determined to build the homes our customers want. For us to live up to the model we have, we need to have a cross-section of examples for all we do. There’s a cost for that. It looks ostentatious, but Louisville is our big investment. And we’ve had double-digit increases over each of the last few years, so I don’t see us doing anything else.”
Education & Networking in Louisville The Louisville Show is hosted by the Midwest Manufactured Housing Federation, which consists of state executives and representatives from Illinois, Indiana, Kentucky, Ohio, and Michigan. The federation will have an annual meeting during the show, and executives from each state association will participate in moderated panels and educational presentations among the more than 20 experienced manufactured housing professionals who will present.
More than 3,500 manufactured housing professionals representing more than 1,100 organizations will attend the show. Industry consultants and seasoned sales professionals Ken Corbin and John Underwood, with input from MHVillage’s Darren Krolewski, developed the educational programming for the show, including the in-depth pre-show sessions. In addition, Betty Whittaker, executive director of the Kentucky Manufactured Housing Institute, worked with Freddie Mac to organize a manufactured housing appraisal seminar. “We’re in a much larger room this year for the seminars, so we can easily accommodate 180 people in the room,” Hill said. “Last year we had standing-room-only at times, so we will be in a better position to accommodate all of our attendees this year. “I think we’re going to turn out more people than we did last year,” Hill said.“And that’s very positive considering the strong showing in 2019.”
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 43
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B101
Skyline
Skyline
B102
B110
COMPANY BOOTH # 2-10 Home Buyers Warranty.............................................105 21st Mortgage Corporation..............425, 427, 429, 431 ABT Water Management, Inc..........................................217 Ace Tire & Axle, Inc.................................................................518 Alliance Credit, LLC..............................................................520
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Dresden
Benton
B103
WOMEN
B105
ENTRANCE
Topeka
Topeka
C102
C104
C103
C108
C107
640 638 636 634 632
C110
421 419 417
431 429 427 425
321 319 317 315 313
331 329 327 325
221 219 217 215 213
231 229 227 225
121 119 117 115 113
131 129 127 125
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SEMINAR AREA
SERVICE DESK
109 107 105 103 101
208 206 204 202 200
209 207 205 203 201
308 306 304 302 300
309 307 305 303 301
408 406 404 402 400
409 407 405 403 401
508 506 504 502 500
509 507 505 503 501
608 606 604 602 600
Ritz-Trans
ENTRANCE REGISTRATION
AISLE 100
220 218 216 214 212
230 228 226 224
AISLE 200
320 318 316 314 312
330 328 326 324
AISLE 300
420 418 416 414 412
430 428 426 424
AISLE 400
520 518 516
530 528 526 524
SHOW OFFICE
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MHE
521 519 517 515 513
AISLE 500
620 618 616 614 612 531 529 527 525
AISLE 600
Ritz-Craft
FOOD COURT
630 628 626 624
WOMEN
Park Lane Finance Solutions, LLC................................529 PayLease..................................................................................307 Perfect-A-Line, Inc..................................................................300 Performace Equity Partners, Inc......................................509 PFS Corporation dba PFS TECO...................................314 R.E. Michel Company, LLC................................................407
C105
C106
Deer Valley
COFFEE SERVICE
C101
Adventure
Adventure
Illinois Manufactured Housing Association.............326 Indiana Manufactured Housing Association...........328 J.D. Power / NADAguides..........................................624, 626 Jamie’s Interiors......................................................................606 Kentucky Code Officials.....................................................329 Kentucky Manufactured Housing Institute...............331
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MEN
Slate
Courtyard
Courtyard
Courtyard
Courtyard
MHE
MHE
Topeka
Topeka
All American
Dresden
Fairmont
Fairmont
Adventure
Adventure
Adventure
Fairmont
Fleetwood
Adventure
Adventure
Slate
Adventure
Fleetwood
Adventure
Fleetwood
Adventure
Adventure
Hamilton HB
Hamilton HB
Commodore Commodore Commodore PA
Winston HB
Winston HB
MEN
Commodore Commodore
Colony
WOMEN
Adventure
Slate
MEN
MEN
FOOD COURT
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Clayton
Clayton
100
Clayton
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January 15-17, 2020 | Louisville Manufactured Housing Show
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American Commerce Bank.............................................513 American Insurance Alliance, LLC...............................113 AmRent Resident Screening...........................................306 *B.A.C.H. Land Development, LLC.....................205 Bennett Truck Transport, LLC..........................................616 Blevins, Inc......................................................................125, 127 Capitol Supply and Service, Inc..........................524, 526 Cascade Financial Services..................................318, 320 *Cereniti DataSource Networks.........................517 CIS Home Loans..........................................................101, 103 Cordell International, Inc.........................................219, 221 CountryPlace Mortgage.....................................................406 Credit Human Federal Credit Union..................528, 530 *CrossCountry Mortgage.....................................400 Cutting Systems, Inc...............................129, 131, 228, 230 DEHCO, Inc............................................................417, 419, 421 Discover Modular Homes...................................................632 Donald C. Westphal Associates, LLC............................213 Dura-Bilt Products, Inc..........................................................408 *Edward Jones........................................................303 Electric Eel Manufacturing................................................630 eLend...........................................................................................402 Everlock Systems...................................................................430 First Bank.........................................................................418, 420 *First Federal Bank................................................302 *Freddie Mac...........................................................521 Gama Sonic Solar Lighting..............................................209 General Supply, Inc...............................................................229 *Go Mortgage.................................................201, 203 *Guardian Water Products & Power..................646 *HazardCall...........................................................506 Heritage Distributing, LLC.................................................309 *Holdfast Technologies........................................503 HomeCarePlus........................................................................316
Land Home Financial Services.......................................516 *Lenderly..................................................................664 Latham Buying Group.................................Special Display Louisiana Pacific Building Solutions...........................527 Manufactured Home Loan, Inc......................................634 Manufactured Housing Institute........................319, 321 Manufacturedhomeloans.com....................................636 ManufacturedHomes.com.............................................638 *Marcus & Millicap, Inc. of Atlanta.....................304 Metron Sustainable Services, Inc..................................315 *MH Manager..........................................................519 *MH Specialty Services........................................650 *MH20 The Selling Edge......................................642 *MHBay.com / MobileHome.net........................662 *MHP Secure, LLC..................................................214 MHVillage.com..............................................................115, 117 MHWC........................................................................................215 Michigan Manufactured Housing Association......330 Minute Man Anchors, Inc..................................................312 Mobile Home Depot, Inc....................................................531 Modularhomes.com.........................................................640 Mudmaster, Inc........................................................................608 N. Tech Industries, LLC........................................................409 Net-Wired, Inc...........................................................................525 Newport Pacific.......................................................................231 Next Step Network.................................................................628 Nickell Moulding Company.............................................500 Nortek Global HVAC...........................................216, 218, 220 NorthPoint Commercial Finance...................................612 *Novik...................................................................515 Ohio Manufactured Housing Association.................324 Oliver Technologies, Inc..................................424, 426, 428 *Ox Engineering Products..........................401, 403 Panel Processing, Inc...........................................................404
Co-Sponsored by KMHI and the Manufactured Housing Institute. Cocktails & Hors d’oeuvres will be served.
Wednesday, January 15 from 5:00pm 7:00pm Crowne Plaza Louisville Airport
THE 2020 LOUISVILLE SHOW APPRECIATION RECEPTION
YOU’RE INVITED!
*New Exhibitors for 2020
R-Co Product Corporation.................................................508 Remote Trax..............................................................................200 Rent Manager...........................................................................308 Rustique Enterprises, Inc....................................................212 RV/MH Hall of Fame..............................................................325 Seal Smart, LLC.......................................................................305 Shaw Industries, Inc..............................................................317 *Stockton Mortgage..............................................501 *Strong Skirt...................................................502, 504 Style Crest, Inc................................................................107, 109 Sunlight Creations.................................................................301 Superior Axle, LLC..................................................................614 Tammac Holdings Corporation..........................206, 208 Tie Down Engineering.............................................225, 227 *Titan Building Systems.......................................405 Translift Sales & Service...........................................202, 204 Triad Financial Services...........................................119, 121 *TStud...............................................................505, 507 Unique Fabrications /Bennett Truck....Special Display Unique Fabrications, Inc./Weber Products.....618, 620 Universal Utilities, Inc.................................................224, 226 *Universal Windows Direct.................................660 Vanderbilt Mortgage - VMF Homes....................414, 416 Vanderbilt Mortgage and Finance, Inc.......................412 *Water Systems, Inc...............................................207 Whitley Mobile Homes, Inc.........................600, 602, 604 Wisconsin Housing Alliance............................................327 Wisely Commerical Realty................................................313
Wednesday, January 15 8:00am to 9:00am STATE OF THE INDUSTRY Moderator: Ken Corbin CallKenCorbin.com Panelists: Bill Sheffer (MI), Amy Bliss (WI), Betty Whittaker (KY), Eric Oaks (IN), Frank Bowman (IL), Erin Smith, EducateMHC, Dr. Lesli Gooch - MHI Here’s a great way to start Louisville 2020! Join your state executives and leaders in our industry as they discuss current trends, opportunities and challenges in today’s manufactured housing market.
Get the latest show news and updates online at: www.TheLouisvilleShow.com
9:00am to 10:00am LEADERSHIP VS MANAGEMENT Presenter: John Ace Underwood MH20 The Selling Edge One of the most common questions asked of business development consultants is “what is the difference between Leadership and Management?” At great cost to the organization, it is this confusion that often leaves the leadership functions unfulfilled. Essentially, leaders only perform 5 functions; everything else is management. Whether you are in a leadership position in a manufacturing organization, a retail dealership, a community, or running a department in any organization, you must know and fulfill the 5 critical functions of leadership.
10:00am to 11:00am INTERNET MARKETING Presenter: Darren Krolewski MHVillage Learn about the top area to engage today’s customers! The internet is also the fastest growing marketing segment not only in manufactured housing and communities but all consumers’ markets! • Reach people who have a specific interest in your homes or community • Use mobile dominance on smartphones and tablets • Get higher conversion rates to your website • Gain up to 100% higher lead-to-close rates
Thursday, January 16 8:00am to 8:45am ISSUES EATING COMPANIES ALIVE Moderator: Frank Bowman - IMHA Panelists: Amie Hacker - Parkplace Homes, Steve Anderson - MHC Capital, Glenn Esterson Marcus & Millichap Hot Topics for Today’s Communities & Retailers! • Paid too much for your acquisition? Now what do you do? • Keep residents informed, and from selling out and leaving • Overcome building and zoning issues and earn the respect of municipal officials • Who actually owns the home on the space you rent? • Grow good service, setup, and subcontracts *Show information valid as of print time 48 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
8:45am to 9:30am MANUFACTURER PANEL 2020 TOP TRENDS Moderator: Ken Corbin CallKenCorbin.com Panelists: Wally Comer Adventure Homes, Steve Quick Fleetwood Homes, Byron Stroud - Champion Homes Today’s manufactured homes are better than ever! Hear from the top builders in our industry as they share valuable information on: • Hot new trends • Homes for millennials, generation X, baby boomers and generation Z • Right mix of model types • Selecting custom features that sell • Partnering with your manufacturer
9:30am to 10:30am GROWING YOUR BUSINESS Presenter: Ken Corbin CallKenCorbin.com Is 2020 going to be your year or just another year? 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? Ken’s message is directed exclusively to retailers and communities. During this interactive program, you’ll learn how to: • Increase home sales in a competitive market • Triple prospects and not spend more • Sell more, spend less, and increase margins
Friday, January 17 8:00am to 8:45am CHATTEL FINANCING IN TODAY’S MARKET Moderator: Darren Krolewski - MHVillage Panelists: Tim Cooley ManufacturedHome.loan, Luke Foster - Park Lane Finance A panel of industry-leading chattel lenders will share insight on trends and challenges in manufactured housing financing in 2020. Home-only lending to consumers is central to the success of our industry. Learn about the latest programs for consumer financing, get an update on important changes that will affect you, and take advantage of all the resources designed to help you sell more homes.
SHOW CREDENTIALS MUST BE WORN FOR ADMITTANCE INTO ALL SEMINARS
8:45am to 9:45am FANNIE MAE, FREDDIE MAC & DUTY TO SERVE Moderator: Darren Krolewski - MHVillage Panelists: Dennis Smith Freddie Mac, Ben Navarro & Jose Villarreal - Fannie Mae Join representatives from Fannie Mae and Freddie Mac as they provide updates on the recent Duty to Serve listening sessions conducted across the country. FHFA tasked the Enterprises with the DTS initiative with the goal of addressing underserved markets, including manufactured housing. Learn more about opportunities for the manufactured housing industry including the MH Advantage® and CHOICEHome™ programs for affordable land/home financing, and advancements in community financing.
A Word From the Show Chairman Byron Stroud, from Skyline Champion Corporation, is the Show Chairman for the event. He points out that many manufacturers have begun to design, price, market and sell homes that qualify for the new finance programs offered by Fannie and Freddie, each of which were introduced to the industry a year ago during the 60th anniversary Louisville Show. “Last year’s show was supported by the presence of Fannie Mae and Freddie Mac, which continue to provide detail on the tremendous benefits of these programs in securing competitive conventional finance terms for manufactured homes,” Stroud said. “This year’s 61st show will continue to display the new models. With the support of HUD under Duty to Serve, industry companies, Fannie Mae and Freddie Mac, will be back to reinforce all the details of these programs in special sessions, as well
as through being present in and around the qualified homes throughout the show.” Stroud said The Louisville Show has continued to be a primary element in the development of the industry, which has taken leaps during the last 12 months. For instance, new home building locations have opened in Arizona, California, Louisiana and Pennsylvania. . And, while the industry grows in size, it also grows in sophistication. “Many new mortgage lenders will be acknowledged at this year’s show, and existing industry lenders are offering new or expanding programs to support inventory and home sale increases,” he said. “And many other industry members will display homes and programs that are gaining positive results in various market channels that include retail display, builder- developer, community, resort, and innovative housing alternatives.”
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 49
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SERVICE / SUPPLY
Alabama College Begins Manufactured Home Installer Training Courses By Josh Weston
T
he first semester of Bevill State Community College’s Manufactured Home Installation Training program is complete. The 10-week certificate program acts as a preparatory course for the Alabama Manufactured Housing Commission Certified Installer exam. The curriculum is designed to prepare students for a career in manufactured home installation and to attract new talent to the industry.
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According to Lance Latham, deputy director of the Alabama Manufactured Housing Association, 70% of manufactured housing customer complaints are due to improper installation. “When manufacturers have to go out and fix things if it didn’t happen in transport, it’s due to improper installation,” Latham says.
SERVICE / SUPPLY
Latham also says it’s not just a quality issue, it’s a quantity issue. “Lots of people are retiring, and not many young people are getting into the business,” he said. T he Ma nu factu red Home Installation Training program seeks to address both issues, to recruit young people to the field while improving the quality of installations. Bevill State’s Manufactured Home Installation Training P rogra m was conceived when both the A labama Manufactured Housing Association and ma nu fact u red housi ng industry leader Clayton Home s i ndep endent ly reached out to the college about developing a program. Clayton Homes provided the bulk of the curriculum, which was approved and expanded on by representatives from Bevill State, the Alabama Manufactured Housing Association, and the Alabama Manufactured Housing Commission, HUD’s Alabama state administrative agency (SAA). “We’re proud to help develop the Manufactured Home Installation Program to support the industry’s growing workforce and elevate the role of installers to replace the aging contractor base,” said Chuck Morgan, vice president of site construction for Clayton. “Together, we are better equipping the workforce to improve installation and continue to ensure that homeowners turn to manufactured homes as a reliable housing solution to ultimately grow the industry.” The Manufactured Home Installation Training program’s inaugural enrolled nine students. Looking ahead, Latham only expects the program to grow. Certified manufactured home installers start out making about $20 per hour. With many industry professionals reaching retirement age, they’re in high demand.
Latham anticipates the program will prepare another 12 students to take the Alabama Manufactured Housing Commission Certified Installer exam this Spring. In years to come, the goal is to expand the Manufactured Home Installation Training program from a certificate to an associate’s degree, which also will prepare future manufactured home transport professionals for Alabama’s CDL test. As it stands now, students receive a mixture of classroom and on-site instruction, learning everything from how to install footings and stabilizing systems to business and legal compliance best practices. Latham hopes that the program also serves as a networking opportunity for the students and for retiring manufactured housing industry professionals looking to sell their businesses. Latham says they’ll know the program is a success when installation complaints go down and more young people are joining the state association. For now, classes meet Tuesday and Thursday night from 6-8 p.m. at Bevill State’s Jasper location. The class is scheduled in the evening to allow this next generation of manufactured housing industry professionals to gain experience during the workday. MHV Josh Weston is a Michigan-based writer with a background in construction and the trades. He covers the housing market, real estate, management, and finance for MHInsider.
The install team from Lollie’s Mobile Home Service in Grand Ridge, Fla. MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 53
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Photo Courtesy of Affordable Homes Center
Arkansas Retailer Sees Continued Growth in Demand By Patrick Revere
E
ric Blount runs Affordable Homes Super Center in Brookland, Ark., an independent Champion Homes dealer near Jonesboro that provides new manufactured homes to portions of Arkansas and Missouri. “Every market is different,” Blount said. “We are in northeast Arkansas, where salaries aren’t quite as high as other places. But the region is growing. “We’ve made a little niche for ourselves here in this part,” Affordable Homes’ Sales and Marketing Manager Mallory Taylor said. “Champion has done a great job in getting us two different primary options. The Tennessee facility get us a bit higher-end homes and the Kentucky facility handles the more entry-level home. They’ve really listened to us tell them what buyers are looking for, and have been great in coming up with new floor plans and other options.” Blount said what’s happening in rural parts of Arkansas and other portions of the south is the growth of regional hubs influencing development in other, outlying areas. “There’s still a lot of land available here,” Blount said. “Land can be an issue in some places, and we don’t run into the availability issue or the regulations you find other places, especially in the city.” Blount has built the business on a high level of customer service, which includes home installation and setup. 54 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
“Even though we’re a small company we’re very agile. We’re quick to deliver and quick to service. We work a lot, we work hard, and we work fast.” said Blount, who grew up in the business, with his father supplying homes to a now-shuttered Air Force base. Taylor said business across Arkansas was a little slower than anticipated in 2018, a year in which many home sellers were achieving numbers not seen in more than a decade, if ever. “Compared with last year, we’re killing it this year,” Taylor said. “My boss and I have really found a way to run the business with his experience and my outlook on data and trends.” In the northeast section of the state, Taylor said there’s a unique sales environment. “It’s just me and Clayton here,” she said. “And there are plenty of buyers. “To do the job right, It is physically demanding,” she said. “It is backbreaking, hard work that you cannot learn from a book. You need to be out in the field to understand the art and science of getting these homes in safely, to code, and looking just amazing for the homeowner.” MHV
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Westward Expansion for Nevada Retailer By Patrick Revere
L
eo Poggione is an organizer by nature, leading the Nevada Housing Alliance, contributing time and industry experience to the Manufactured Housing Institute, and building a trio of manufactured and modular home dealerships in Nevada during the last 20 years. Chances are, when Poggione is making change, it works for other retailers, builders and all of their customers as much as the change benefits him or his Craftsman Homes dealership. “Generally speaking, the factories do a very good job… but many times it’s really the retailers who push what the factory comes up with. It’s like ‘Hey, we have a customer who wants this and this…’ and the more assertive retailers are pushing factories with customers in mind. “We always want to challenge the industry to do new things,” he said. “If we’re not doing that we’re not doing our customers any big favors, nor are we benefiting the industry as a whole.” One of the builders Poggione works with for his Reno-Sparks, Winnemucca, and Silver Springs locations is Kit Homebuilders West in Caldwell, Idaho, which does mid- to high-level HUDcode and modular homes. “They do an annual dealer council meeting. Let’s say they get the top 10 or 15 dealers, we all fly to one location and they go over some of the new decor and get into logistics in regard to how quickly they’re able to fill an order,” Poggione recounts. “And then it can be about how we are following up, what does that service standard look like. It’s an open dialogue that I’ve found very helpful.”
Craftsman Homes operates three retail locations in Nevada, selling manufactured homes and modular homes largely for placement on private land. Photos courtesy of Craftsman Homes.
56 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
Discover the Credit Human difference Poggione said a great example of industry progress that’s been pushed by customers through retailers to builders is the advancement in master baths, particularly with the 6x9’ shower with tile walls and glass surround. “The builders have gotten really creative with how they’re doing them. They turn out really nice,” he said. “They figured it out, and it’s really nice to have. You used to never see this, and now it’s one of the primary aspects of a HUD home that no longer looks like what we might have expected.” The same can be said for windows, sinks, faucets, light fixtures, and the list goes on. Poggione said constant innovation -- the element of surprise -- is what keeps a customer coming back, and referring friends. Likewise, the Fleetwood facility in Idaho is creating new solutions, new looks for customers. “They’re doing a lot on the inside of the house that I’d not seen. I flew in to view their models in the fall and I was really impressed,” Poggione said. “This plant is really hitting the entry-level home and then jumping up to the accessible high end… moldings, barn wood, a contemporary ‘cabinish’ feel.”
We always want to challenge the industry to do new things...
The New Dealership in ‘Gold Country’ Poggione last year opened his third location, this one in the north-central portion of the state -- “gold country”. “That market’s doing well because the price of gold is good. It’s a big mining area,” he said. “The operations there can expand because they can afford to mine and make good money. They’ll bring in 300 or so people almost at once and they need homes for all of them. Some of these towns only have 8,000 people, so that’s a big number. It’s kind of like the phenomenon with oil in North Dakota.” Poggione said his dealerships have grown by bounds in recent years, building on existing relationships and urged forward by “out west housing availability and affordability”, or lack thereof. “My dealerships have never been the affordable housing model,” Poggione said. “It’s weird, everyone thinks we have people come in and that we have to qualify them, but I would say the homes sold from my dealership for many years have been cash deals half the time.” In addition to the lack of housing inventory and affordability in the region, the factory-built housing efforts also benefit from demand for new, site-built homes. “There are not enough contractors,” Poggione said. “If you want a home built on site you’re going to be on a three-year waiting list, and that’s after you find a builder you like.” MHV
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MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 57
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Business Grows with Product Diversity for Michigan Retailer By Patrick Revere
P
hil Lamarch of Phil and Lee’s Homes in Wells, Mich., has become accustomed to greeting customers who are increasingly more aware of factory-built housing options, and have a more open mind toward the wide set of available homes, floor plans and features. “For many years we weren’t selling any single-wides, and now we’re selling about a half dozen single-wides and about the same with double-wides,” Lamarch said. “And our existing home sales have been really strong. We sell them just about as fast as we get them.” In a southwest nook of Michigan’s Upper Peninsula -- not far from Escanaba – Lamarch’s dealership takes a while each spring to dig out from the snow. But when it does, the customers come calling. “I am getting a lot of people who are looking to downsize because they’ve already had their big house and want less,” Lemarch said. “They need something quick because they’re home is selling, so they go to manufactured and modular. “They’re looking for something that’s maintenance-free,” he said. “That’s the main thing when you’re looking at an aging demographic.” Most buyers in the area are looking for a home to put on private land, but Lamarch said he has sold a handful of single-section homes for area communities. Lamarch said his outf it sells as much HU D code produc t tod ay a s a ny t h i ng, where i n previous years customers leaned heavily toward modular homes. Phil and Lee’s acquires its new homes from Fa i r mont a nd M id C ou nt r y Home s out of Wisc., as well as from the Champion Highland plant in Minnesota. “It’s nice bringing someone into a new home because they may not be expecting much and they nearly every time are surprised and really pleased,” Lamarch said. “I don’t think I’ve had anyone come through these new homes and leave any way other than impressed.” Existing homes, Lamarch said, come from anywhere he can find them. He takes referrals, watches the area news and uses listing services, including MHVillage. MHV
58 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
Photo Courtesy of Champion Homes
Phil Lamarch, owner of Phil and Lee’s Homes.
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Plattsburgh Housing Outlet Can Be Something To Everyone By Patrick Revere Photos courtesy of Plattsburgh Housing Outlet
Plattsburgh Housing Outlet sells modular and manufactured homes in Upstate New York.
M We try to stay top-of-mind with people who have purchased a home. –Michelle LaBounty
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ichelle LaBounty, of Plattsburgh Housing Outlet, keeps about 10 homes on display at all times, from a small single-wide to a larger two-story. Each of these homes will have some unique f loorplan characteristics, as well, that really work to capture attention. “Many times people are drawn to these forms of factory built homes because they do regularly have the ability to walk through and experience the home first hand,” LaBounty said. “That’s not true for every type of purchase, so we will leverage that to the greatest degree possible.’’ Plattsburgh, in Upstate New York,
has experienced a housing shortage and a void in affordability, as have many other areas of the country. “We are kind of like something to everyone,” LaBounty explained. “We sell homes to people of modest means and we sell homes to people who can do anything they want. It’s just so diverse. “We sort of reinvent ourselves from project to project,” she said. Customers in her neck of the woods have warmed up to single-section homes, partly because the previous area provider for the cost-minded customer is no longer in operation. But smaller homes, including park models and ADUs,
BUILDER / RE TAILER
have trended up in many locales out of customer preference. “We’re in very Upstate New York, which is very rural and blue color,” LaBounty said. “A few years ago we were about 70 percent modular, and now the HUD business has cut into that.” There’s more than one reason for that, she said. But there’s one reason LaBounty has heard regularly. “It’s expensive to develop property, and the customer can get more of what they want in a manufactured home compared with modular. It can save them a lot, and get them all they’re looking for in a home.”
Welcome Home and Happy Seasons Plattsburgh puts itself out on social media, advertises, and hold promotions. Still, much of its business comes by way of referral, which is a
matter of staying in contact with previous homebuyers. “We try to stay top-of-mind with people who have purchased a home,” she said. “We send them a house warming or welcome home gift, like a wooden plaque that says ‘Home is Where Your Story Begins’ for first-time homebuyers. If people are downsizing, I do something similar with the phrase ‘Home Sweet Home’. “In summer after they purchased the home they will receive a summer BBQ cookbook, and we send them a holiday ornament at the end of the year, like a snowflake or snowman,” LaBounty said. The outlet has an email newsletter with events and updates, home buying and maintenance tips. They also conduct homebuilding seminars a few times each year to prepare buyers on topics like financing, codes and zoning, and foundation requirements
“We try to be incredibly transparent about the value and the challenges, equally,” she said. That level of service and attention to detail has garnered Plattsburgh a pair of MHI Retailer of the Year awards, one in 2003 and the other in 2013. Within the 40 or so homes they sell each year, inevitably there are a few transactions that call for more direct interaction with the factory. “I will advocate for what our customers want until it’s settled,” LaBounty said. “I understand if our customer really wants something, if we can’t get it for them, someone will. And we love our customers, we want the business, so we do try hard to move a wall if we need to do that for the sale.” MHV
Michelle and Eric LaBounty with Nathan Smith, community owner and former Chairman of the Board for MHI, at center, in 2013 when Plattsburgh Housing Outlet earned Retailer of the Year for the Northeast. MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 61
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New Design Studio Creates National Hub for Architecture, Design Thinking By Patrick Revere Photos Courtesy of Clayton Homes
Megan Foster, the interior design manager for Clayton Homes Building Group, answered some questions for MHInsider magazine about the thought behind the company’s new design studio, how it was developed, and why its implementation is important for the market.
What was the concept/strategy at play during the time of the initial conversation regarding a designated design center in Maryville? As we traveled the country, visiting every Clayton home building facility, we found that each facility was completely different when speaking about design capabilities and product options. Some facilities were really great with design and floor plans. However, some facilities could benefit from additional resources. So, the conversation of having a facility/design studio to support our 40 home building facilities really started to become important. We truly needed a collaboration space to provide design services for a consistency that was felt to be missing.
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How has that initial vision evolved with further conversation and development of the space? Originally it was more on the design side, but it has evolved into the addition of architects, engineers and 3D rendering teams all in one space.
Can you detail for us the size of the space, where it’s configured at the headquarters and what elements were brought in for use of the space? The Design Studio is approximately 5,000 square feet, with multiple workspaces including presentation rooms, collaborative sitting rooms, and office areas. It is located directly behind our corporate headquarters in Maryville, Tenn.
BUILDER / RE TAILER
Clearly, you were very involved with the development of the space. Who else was leading the charge? Our in-house interior design team was involved, specifically Ashley Skowron and Ryan Burgess. Local contractor Joseph Construction managed the project, and local firm Johnson Architecture served as the architect.
How was the development of this space informed by customer needs? Who are these customers? We have really built out our teams with experienced, high-talent level, creative individuals with different skillsets that really round out this department well. We recently added a position that specializes in discovering and dissecting housing trends, how today’s family lives and who our home buyers are. We have an opportunity with the age of social media to instantly poll our followers to get directional feedback. That just adds another layer of information and affirmation that we are headed in the right direction. Our home building facilities also are our customers and our job is to equip them with the latest trends for their region, and for their target customer. We are continuously working with our retail partners and can’t wait for them to have an opportunity to visit the Design Studio so we can further showcase our process.
How do you envision the use of this space impacting the market? Is there a 3-year, or 5-year plan for what its use should result in? Technology plays a big role…we offer virtual prototypes, which provide more consistency throughout the building process, along with visual aids that assist in selling tools, as well as production. Greater efficiencies in our building process will be achieved due to the fact that we have built out this team of architects, engineers and designers who are constantly collaborating and working on new and improved homes. The space allows us to work closer with vendors to develop the most innovative and creative materials to bring to market. We have a great opportunity to create materials that typically may not be available in our industry and make them available, production-friendly and appropriate for design trends…all in one. That’s pretty cool. »
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Is this a pilot? Might you envision similar spaces set up in other parts of the country? Currently, we do not anticipate opening any more spaces like this one because the Design Studio’s overall intention is to provide a central, collaborative meeting location, with materials and resources for our facilities to visit annually. Our team members across the nation are talented, and we’re here to help support their design efforts, share ideas and recommendations – and then they can take what they have learned back to their locations.
Can you tell us about the early use of the space? With 3 decades of experience, MHWC is the leader in New Home Warranties for the HUD-Code Housing Industry.
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Megan Foster, the interior design manager for Clayton Homes Building Group
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MARCH 24-26, 2020 A Spring Extravaganza! REACH CUSTOMERS FROM ALL OVER THE SOUTHEAST REGION AND BEYOND! March is a prime time for builders, developers, retailers, community owners, operators, and installers to place orders and have inventory delivered in time for the spring selling season. The Tunica Show attracts these manufactured housing professionals from all over the region and beyond, making it an unparalleled marketing opportunity that will pay off now and in the future.
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Contact Show Coordinator: Dennis J. Hill at (770) 587-3350 or visit us online at www.thetunicashow.com for more information. The Tunica Show is sponsored by the Alabama Manufactured Housing Association and the Mississippi Manufactured Housing Association. It is produced and managed by Show Ways Unlimited.
BUILDER / RE TAILER
Adventure Homes Makes Big Plans for Modular Duplexes MH-inspired Modular Homes in Demand for Campuses, Workforce Housing, Communities By Patrick Revere Photos Courtesy of Adventure Homes
T
he manufactured housing industry is at it again, bringing new concepts in housing to the forefront. And this time, Adventure Homes has a hunch that its “two is better than one” concept will find success in communities, at worksites, and on college campuses. Duplex homes, as the Indiana-based company sees them, use a HUD code envelope. However, the homes are built to modular specifications and provide a pair of residences rather than one. “We have a prototype that has a one-bedroom and a two-bedroom residence in a 16x76’ envelope, and a duplex sectional that has a pair of two-bedroom residences in a 28x64’ envelope,” said Rich Rice, general manager of Adventure Homes. Though the homes work within a manufactured home envelope, Rice said, they have to be built to modular specifications because HUD-code
68 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
calls for its homes to be singlefamily residences. Rice said duplex homes offer the company’s customers “another wrinkle, another approach” in factorybuilt housing.
Where Do Duplex Homes Go? Rice said he and the production team at Adventure envisioned a place for the new factory-built duplex homes on college campuses and at or near large worksites in rural settings, where housing stock is short or nonexistent. However, the potential for duplex housing in manufactured home communities also has been broached with industry leaders and the state of Ohio. In the fall, Adventure Homes organized a meeting with the Ohio Department of Commerce that included UMH Properties, a large regional owner and operator of communities, as well as the Ohio Manufactured Homes Association.
“We are pursuing mods in communities both in Ohio and in Indiana with both existing state statues and new legislation,” Rice said. “The Indiana Association is drafting new legislation and we have verbal commitments from more than one legislator to help sponsor a bill. Minnesota already has statues that allow modular coded homes in communities,” Rice said. In late November, the Ohio Department of Commerce announced that modular homes would be allowed in the state’s manufactured home communities. Part of that announcement included provisions for inspection and approval by a local housing authority as it pertains to local modular code and site-built additions. Modular homes are permitted in Ohio manufactured home communities under the following guidelines: 1. T he manufacturer’s plans for the modular homes are approved through the Ohio Board of Building Standards’ (BBS) Industrialized Unit Program.
BUILDER / RE TAILER
2. Modular homes are placed on a non-manufactured housing lot in a manufactured home park. 3. The development plans for placing the modular home in the park are approved by the Ohio Department of Commerce Division of Industrial Compliance (DIC). Rice said suitable financing for modular homes placed in a community still needs to be worked out, which could take until mid-2020. The company also has been in talks with a community in Champagne-Urbana, Ill., whose owners are open to the concept and are willing to work on the effort in Illinois. Rice said officials in that part of Illinois have cited a rapid increase in enrollment at area colleges as a primary need for new, readily available affordable housing. “We’re going to have to work out each eventuality and figure out where the speed bumps are, and work our way around it and keep moving forward,” Rice said of lending questions and particulars with various local
governments. “If everyone is on this, we should be able to get it done. “We’re seeing the old adage change, the prejudices (against factory-built housing) start to disappear because local governments are beginning to see this more clearly as the solution to their housing dilemma,” he said.
Bringing New Modular Duplexes to the People Rice said, as with anything new, the company will manage the ebb and f low of negotiations on the concept. The two duplex homes are among the seven Adventure Homes is bringing to attendees at The Louisville Show. “We have 220 people who absolutely have a passion for what we’re doing here, and it’s our job to take it outside the walls,” Rice said. “It’s going to be a learning process, and we’ll all adjust.” MHV
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 69
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Champion Line of Genesis Homes Returns on New Footing By Patrick Revere
T
he return of Skyline Champion Corporation’s Genesis® line of homes signals a new beginning for builder-developers who want a quick entry to market and cost savings to boot. “The previous form of this program relied on modular construction, and that worked well for a speed-to-completion standpoint, with a narrow advantage on price,” said Wade Lyall, executive vice president of business development for Champion Homes. “This new product under the HUD code will start with the price advantage, and we’re still going to be able to beat people to market with 72 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
product, competing with modular and site-built.” The line of homes was relaunched in the fall, and this January will be on display at the International Builders Show, Jan. 21-23 in Las Vegas. Genesis was brought back to market with 11 new models, all ranch-inspired homes with between 1,100 and 1,800 square-foot floor plans. The company also will follow those designs with four new designs for Accessory Dwelling Units, or ADUs, which are smaller homes typically put on an existing lot often behind or adjacent a primary residence.
Lyall said the company invested two-plus years of research into Genesis prior to the re-launch. “We’re really focused in on that 1,500 square foot sweet spot,” he said. “What we’re hearing is that this particular footprint and size is either hard to find, unavailable, or out of range on price for people in that market.” The ranch-inspired homes will be built in 23 manufacturing facilities across the country, enabling the company to meet customer demand in any of the 48 contiguous states. The ADU offerings will be constructed in 14 plants across the U.S. and can be delivered to nearly any locale.
Photo Courtesy of Champion Homes
How MH Advantage®️, ChoiceHOME℠ Aid in the Return of Genesis Fannie Mae’s MH Advantage program and Freddie Mac’s CHOICEHome program, which each provide a new form of lending for manufactured homes with characteristics resembling site-built homes, offered a new avenue for Skyline Champion to work on the relaunch of Genesis. “It’s really heavily driven by the new financing programs on the HUD product,” Lyall said. “To be able to provide a HUD product rather than the typical modular product is really going to benefit builder developers. “The products that we’re offering with our Genesis line today are better suited for off-site construction compared with some of the modular designs we had, which were efficient but still required significant on-site labor to finish the project,” he said. “What we’re really driving for is to
create a better alternative to site-built labor. If you read anything about the site-built process today, there’s always a big mention of the difficulty finding and maintaining skilled labor in the field. It’s always been an issue, but more so today, and our process stands to solve that problem.”
Champion, Genesis at IBS in Las Vegas For the first time ever, the International Builders Show will have manufactured homes. Champion, the only HU D -code builder at the 2020 event, will show one of the ranch-inspired homes, a 1,493 square-foot, three-bedroom, two-bath home with an attached garage. The other Genesis home Champion will show is one of the ADU floor plans, a 510 square-foot, one-bedroom, one-bath model. Both models will be in the Outdoor Exhibits area, spaces P10 and P12.
“The International Builder Show is the largest home building show in the country,” Lyall said. “It has every aspect of product, technology, offerings… it’s all on display at the show. It takes three days to walk the show, and that’s not counting the outside display.” He said the company will bring about 20 people to the show, as they have in year’s past, even as attendees. About a dozen of those team members at any given time will be working at the model homes, showing the homes and answering questions. “The reason for the show is to identify builder-developers who would be able to benefit from our product,” Lyall said. “And we want to take into consideration some of the needs of folks who are interested but have challenges. We’re there to learn, figure out what those challenges are and be able to work through them.” MHV
MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 73
SALES
SALES
The truth about
LOST SALES… and how to avoid them By John Ace Underwood
O
ne of the first questions we ask any new potential retail or community client we take on is this: “Are you selling all of the homes you could, and therefore should, be selling?” Now, in some very rare cases, the response is “Yes, and please do not threaten us with more business.” In those unique cases, we simply encourage them to count their blessings and continue doing what they’re doing. As for the rest of the retail dealers or community owners and operators, they, unfortunately, work all of their lives to have such a problem. The more common answer is “No, we should be selling more homes than we are selling” and when such individuals want to explore what can be done to increase sales, we inevitably look for reasons why. Now, if you’re NOT selling all of the homes you could, and therefore should be selling, it is often said there must be something wrong with one or more of the following: Your PRODUCT, your PRICE, your PROMOTION, your PEOPLE or your PROCESS. That obviously makes sense. Even more interesting than the recognition of these five contributing categories, is the realization that these five categories are NOT weighed equally, meaning some have a significantly greater impact on sales than others.
When we listen to the rationalization of an underperforming sales team and their reasons as to why sales are not higher, the top three reasons are: 1: We don’t have the right PRODUCT 2: Our PRICES are too high. 3: We don’t do enough PROMOTION. (We don’t get enough leads) 4: PEOPLE (are never mentioned) 5: PROCESS (is never mentioned) When we go in to help raise the sales performance of our clients, we typically shoot for a minimum increase of 25% and when we examine how our prospective clients actually conduct business, here is how we re-think and re-order these same five categories
Reason #1: PROCESS The first principle any business owner needs to embrace is this: People don’t run companies. Systems run companies and people run those systems. It is the responsibility of the owners and managers of those organizations to provide, implement, measure and manage systems by which each individual can experience success. This category alone represents the greatest opportunity for increased sales. » MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 75
SALES
Let me reiterate the previous principle: People don’t run companies. Systems run companies and people run those systems. This means you need people on your teams who are systems compliant. You need people who are willing to use systems that have withstood the trials of time and be open to coaching. When you recruit, hire, develop and promote people, make sure they understand with crystal clarity, your organization is run by systems; hire and promote those who understand those systems. If you don’t have systems in place or your people are not using the systems, (which is a leadership issue) get help! This is the second biggest opportunity to increase sales.
Reason #3: PROMOTION The third significant reason for
low sales is a lack of leads, or at least the perception of not getting enough leads. We chose to rank this as #3 simply because if you don’t have a system in place for handling leads, making appointments, converting prospects into buyers, and people who are willing to work those systems, adjusting your advertising budget up or down makes little sense. The reality is, most organizations have no idea how many leads come in, where they come from, what prospect may want, or when they’re going to buy.
Reason #4: PRODUCT We’re bringing this one in at #4 because we rarely see a dealership or a community that couldn’t increase sales significantly with the very same product. Most dealerships have or can get something the vast majority of their prospective buyers would be
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Reason #5: PRICE We see price as being the least likely reason you may be losing sales and, quite frankly, so do customers. I realize it’s a competitive market, but know this, most buyers could have purchased virtually the same home for less money somewhere else. We get occasional pushback when we rank price so low. In a salesperson’s mind, price is all customers ever talk about. Here’s a thought; maybe that’s all our salespeople ever talk about. You don’t increase sales by lowering the price. You increase sales by increasing value. In closing, if you want to increase your sales performance, start working on these five categories, specifically in that order. Many of you will be able to increase your sales results by 15-20% focusing only on Process and People. The vast majority of you will never get past the third category of Promotion and you will already have all of the additional business you expected. If you don’t know what to do in these categories, reach out to people who do. I will leave you with this thought… Your sales team is probably already talking to the very people who would buy the additional homes you’re trying to sell or would rent the additional spaces you’re trying to fill. In 2020, let’s really focus on capturing them! MHV John Ace Underwood is the founder of SellingEdge, a consulting firm within th e m a n ufa c t u red housing industry, as well as microseminars. com, an online training program. Reach him at johnaceunderwood@gmail.com, or 520-241-9907.
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SALES
78 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
SALES
‘You Promised!’ (the two words you never want, but too often hear) By Ken Corbin
T
he phone rings and the first two words from your unhappy customer are, “You Promised!” Sound familiar? The next two words your delivery, set up or service department (AKA the back end) says are, “I’m sorry.” Does this also sound familiar?
After the conversation ends, the back end immediately runs to the front end. The new conversation between the back end and the front end goes something like this: Back end: “They say you promised they’d be moved in by February 1st” Front end: “No, I said we’d try to get them in by February 1st” Back end: “That’s crazy. You’ll promise anything to make a sale!” Front end: “Again, I didn’t promise. I said we’d try to get them in by the 1st.”
Sales said “Yes” when they should have said “No” You have a customer who says, “If you can have us moved in within 60 days, we’ll buy that home you have in stock and sign a contract today.” Your sales team member (who just might be your lead salesperson) says “Absolutely”. In fact, in the past, you were able to have a customer moved in within 60 days. At the same time, it’s the middle of winter and you know it’s likely to take two months or longer to meet the customers’ expectations. In this scenario, I’d suggest the owner/manager say to the customer, “I want to ensure we’re are all on the same page. I know, in a perfect setting, we’ve had a customer moved in within 60 days. Other projects have taken closer to three months. I’d hate for any delays to impact you. I’d like to know we all have the same expectation of three months, knowing we’ll do whatever we can to shorten the schedule to 60 days. Would that be OK?”
This accomplishes three things: You’ve firmly set the expectation with the customer and overcome any “promises” (aka “we’ll try”) they may have heard from the salesperson. Unless you are delivering the ball for Times Square on New Year’s Eve, a short delay is often not a deal killer; just manage their expectations up front. If your customer is being unrealistic, fire them now! Here’s a Ken Corbin-ism that says, “The lower the control & the lower the gross, the higher the grief!” » MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 79
SALES
What sales or the back end said was accurate until something messed up
making yourself not look foolish, it just doesn’t work.
Perhaps sales, delivery, and set-up did set correct deadlines and expectations. However, your solution depends on the work of others, or weather. Perhaps you depend on special permits, equipment, materials, suppliers and so on. In these situations, the natural thing to do is throw the other party under the bus. I was at a restaurant recently where the food was delayed. The waiter said “The kitchen has no clue what they are doing. It’s not my fault.” Having heard that statement, I wasn’t inclined to dine there in the future. In fact, I was dubious about staying for the remainder of my meal. If you throw your own team under the bus with the hopes of
I call this the boomerang effect In this scenario, CA LL THE CUSTOMER BEFORE THEY EVER CALL YOU! The person making the call should always be someone in authority. In this instance you might say, “We felt we had planned for potential delays, but I guess we did not allow enough time. (explain the situation honestly) We’re doing everything in our power to get the issue resolved, and as soon as we know with certainty the revised schedule, I’ll personally call, text or email you. Which would you prefer?” This will likely take some of the fire out of them; although they’ll still be
disappointed. YOU took the initiative to contact them before they called you. End the conversation this way. “I promise to keep in close contact with you. We’re in the business of selling homes and making friends. I also want to give you my personal cell number and feel free to call or text me at any time. Is there anything else I can do for you at this time?”
Bottom Line When faced with a difficult situation, you might make the mistake of trying to hide facts from your customer. That approach rarely has a good ending. When you make a mistake, take ownership and communicate honestly. Customers realize “stuff happens”. You will often be rewarded for how effectively you address setbacks. The most important thing to remember is that the sooner you can reset expectations, the better. Finally, when you or someone on your team makes a mistake, remember to always contact the customer before they contact you. Your candid conversation will go a long way toward making them feel comfortable. MHV Industry consultant Ken Corbin has worked with over 800 communities, retailers, associations and manufacturers. He’s also co-facilitator of the MH20 Group. For more information, e-mail: ken@callkencorbincom.
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THE ALLEN LEGAC Y continued from page 82
and changed the name to Hames Homes, realizing the name Hames is derived from the German word haimo, meaning home. In time, the street retail sales center was shuttered, and home sales moved on-site into three of the family’s land-lease communities, Grand View, Summit View and, WestPark. Since Curt’s passing in 2017, Norma, now 85, has seen her children, Barbara, Troy and Cynthia, share responsibility for leading the firm. And recently the third generation has come aboard. A hallmark of the family’s 50 years in business has been Curt’s, and now Barbara and Troy’s, active participation in statewide politics, as well as loyal support of the Iowa Manufactured Housing Association.
The Haneys Moving westward, meet one of my longest-term friends in the manufactured housing business, Neal Haney, founder and principal of NTH Property Management, a 100% fee-based management firm located in central Arizona. Neal and his son, Dan, specialize in managing land-lease communities and RV parks throughout the state. Besides being widely known and respected for his property management expertise, Neal has been the longest-serving chairman of the Manufactured Housing Communities of Arizona (‘MHCA’) association, now in his 22nd year. And in 2018, he was co-founder of the National Manufactured Housing Communities Association (‘NAMHCO’), lobbying exclusively in Washington, D.C,. for land-lease community owners/ operators nationwide. So, who else out there is two or more generations into the land-lease community business? Looking at the list of 100 property portfolios featured
in the 30th anniversary edition of the ALLEN REPORT, we find these multigenerational firms: Sun Communities, Inc.and UMH Properties, Inc., both REITs. Also Bessire & Casenhiser, Zeman MHC, Newby Management, Ascentia Real Estate, The Choice Group, Santefort Real Estate, ALS Properties, American MH Communities, Harshaw Asset Management, Ashwood /Flood Com munities, Cohron’s Realty, State Street Group, Augusta Communities, Germano Management, Missouri Modular, Candlewood Estates, Stefferud Properties, and probably a few more I overlooked. So, right there, 20-plus out of 100 portfolios, or 20 percent, are multigenerational firms! I consider myself among those multigenerational firms, as my daughter, Susan McCarty, and her business partner, Erin Smith, acquired my last land-lease
community nearly two years ago, and last year, absorbed COBA7, a division of GFA Management, Inc., dba PMN Publishing, into their new firm, EducateMHC. The new entity serves the product (newsletters and books) and service (professional community evaluations and property management training/certification) needs of landlease community owners/operators nationwide. For more information on the new organization, visit www. educatemhc.com. MHV George Allen has owned and fee-managed land-lease communities since 1978. He’s a former MHI Industry Person of the Year and a member of the RV/MH Hall of Fame. He has been designated a Certified Property Manager-Emeritus and a Manufactured Housing Manager-Master. He’s also a senior consultant and staff writer with EducateMHC. Allen can be reached by phone at (317) 346-7156, or by email at gfa7156@aol.com.
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Contact us today: Ben Kadish • ben.kadish@mavcm.com 312-268-6000 | 312-953-4344 MHINSIDER.COM • JANUARY / FEBRUARY 2020 | 81
THE ALLEN LEGAC Y
From left, Neal and Dan Haney have turned NTH Property Management into a multi-generational business. Photo courtesy of NTH Property Management.
The Quintessential Family Business ‘Land Lease Communities Have Long Been Multigenerational’ By George Allen, CPM Emeritus, MHM-Master
T
here a re thousa nds of family-owned land-lease communities, large and small, scattered throughout the U.S. – despite the ongoing consolidation of them into 500 property portfolios. I first addressed this familial matter decades ago in a feature penned for now-defunct Manufactured Home Merchandiser magazine. In it I identified dozens of multigenerational community owners, and described why family succession was so common throughout the realty asset class; i.e. a great way to work together, share prosperity, and serve one’s fellow citizens. Nothing much has changed. One of the firms profiled back then operated the 171 rental homesite-Vil82 | JANUARY / FEBRUARY 2020 • MHINSIDER.COM
lage Green Senior Community in Media, Pa., owned since the 1930s by the Holefelder family. Today, the firm, then headed by patriarch Jack Holefelder now is led by son John III, a fifth-generation Holefelder, in the business, and well-educated with an MBA from Eastern University. Jack, if the name sounds familiar, is the author of the seminal book Passing the Torch, Will Your Family Business Survive? Penned in 2006, it was widely distributed at the time, including at the Networking Roundtable that year, and remains a compelling read to this day. Near the end of the book, Jack admonishes readers, when it comes to family business succession planning… “Don’t put off till tomorrow what you
should do today!” Jack, a Vietnam veteran, is one of the founders of the Veterans National Education Program, providing historically accurate, media-rich educational resources for students of modern history. For more, visit V-NEP.org.
The Hames Family Turning attention to the Midwest, meet the Hames family, this year celebrating 50 years of being in business in Cedar Rapids, Iowa, as Hames Homes! The firm was founded in 1969 by retiring military veteran Curt and his wife Norma. Originally a franchised independent (street) retail sales center named Homestead Mobile Homes, they acquired the business continued on page 81
REDEFINING VALUE FOR THE MH/RV ASSET CLASS BROKERAGE & ADVISORY SERVICES CLIENT
FOCUSED
DRIVEN
PROVEN
Christopher Nortley President | CEO (586) 884-8416 chris@mhreinc.com
RESULTS
Colleen Lannoo Melissa Wade Broker Associate | Senior Transaction Director of Data Research Manger (586) 580-7322 (586) 884-8415 colleen@mhreinc.com melissa@mhreinc.com
Richard Zicker Senior Advisor (407) 640-7044 richard@mhreinc.com
MANUFACTURED HOUSING GROUP
Detroit HQ Location 12900 Hall Road, Suite 190 Sterling Heights, MI 48313
Michel Mikkola Senior Advisor (407) 640-7046 michel@mhreinc.com
Tampa Location 100 S. Ashley Drive, Suite 600 Tampa, FL 33602
Mark St. Germain CFO | Senior Advisor (586) 884-8417 mark@mhreinc.com
Melanie Ng Senior Analyst | Sales Associate melanie@mhreinc.com
www.mhreinc.com
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