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Posts Tagged ‘credit customers’

Manufactured Housing facts from the National Association of Home Builders (NAHB) Report

September 3rd, 2014 No comments

The following information comes to us from the National Association of Home Builders (NAHB), forwarded from various state executive directors and MHI.

We estimate that in 2014 the average price of new manufactured homes (including the cost of lot development) is $53,230 for single homes and $100,259 for double homes. Increasing the price of new single manufactured homes by $1,000 will disqualify 347,901 households from being able to afford these homes. Similarly, if the price of new double manufactured home rises by $1,000, 315,385 households will be priced out of the market. The effects are NOT cumulative, since they are based on the same income distribution of all US households. These are NOT effects on sales, rather only on ability to qualify for a mortgage.

Our new manufactured home prices are based on the average sale prices for single and double new manufactured homes reported by The Manufactured Housing Institute (MHI). They are further adjusted for inflation and additional costs of lot development. The inflation factor is the increase in new manufactured home prices from 2012 to 2013 as reported by the MHI. The lot development cost adjustment is based on the NAHB survey of construction costs.

NATALIA SINIAVSKAIA, Ph.D.
Housing Policy Economist
Survey and Housing Policy Research

National Association of Home Builders
1201 15th Street, NW
Washington, DC 20005”

While some voices have made hay out of this report to show that even the home builders agree that price hikes of every $1000 leave hundreds of thousands of potential MH or other home buyers behind, let's flip this for a few moments.

Let's focus on this: “We estimate that in 2014 the average price of new manufactured homes (including the cost of lot development) $53,230 for single homes and $100,259 for double homes.

Using the $53,230 loan amount, a 4% FHA loan for a land/home purchase, at 30 years term the principle and interest (taxes, escrows, other costs not figured into this calculation) would be approximately $269.71 (before you object, yes, some lenders do make and FHA allows for FHA Title II loans on single section homes, the multi-sectional restriction is an overlay that some lenders impose).

Using the same idea as above applied to the multi-sectional with home-site numbers ($100,259) from NAHB's study yields a $478.64 monthly payment (disclaimer again, principle, interest only). This is clearly 'affordable' housing!

Both the GAO in their recent report, and Fannie Mae in a previous study, indicate similar payments that reflect the fact that manufactured housing is the most affordable permanent (as opposed to RVs or other seasonal) homes on the market today.

fanniemae-2011-chart1-affordable-manufactured-housing-posted-daily-business-news-mhpronews-362x430

FYI, credit studies suggest that some 58% of the U.S. has a credit score that is at or above a 692 FICO, as the chart above from Experian and Money-zine reports.

credit-score-chart-courtesy-of-Money-zine-cutting-edge-blog-mhpronews-

When you look at the facts here and consider the satisfaction and affordability suggested by the recently published Foremost Insurance study, or the CNBC discussion on a potential 5 to 6 million Americans who could be buying a home, and a picture of the industry's strong upside potential comes into sharp focus.

But, Tony, I'm not seeing those 692 credit scores at my location!” some say.

Sorry, but that my friends and MH Industry colleagues, is because the wrong kind of sales and marketing approach is being used! “Damaged credit OK” advertising brings you exactly that, and if you don't use those sorts of ads, so many in our industry have for so many decades that this is embedded into the psyche of millions of credit challenged customers. Remember these lyrics… Trailers, for sale or rent, rooms to let for 50c…

When you learn how to attract and sell the site built home buyer, you will get more of that as time goes on.

When you and more in the MH Industry mature to the point that we are selling good homes that are appealing AND affordable, you'll see more sales to cash and good credit customers, and more sales of new MH and MODs. That's a fact and I'm sticking with it! ##

latonykovach-com-brushed-cutting-edge-marketing-sales-blog-mhpronews-com75x75-By L. A. “Tony” Kovach

Hard Truths and Dominating Your Local Market

March 8th, 2014 No comments

If a business routinely treats their customers like dirt, it doesn't take a rocket scientist to figure out that sooner or later, that business will suffer and likely be forced to sell out to someone more savvy or close.

If a business owner treats its staff with disrespect, it is self evident that even in a tough economy and job market, the staffers will sooner or later find their way to a better place. In the mean time, can the disrespected staffers be expected to perform their best for the owner who maligns them?

If you are an association leader and don't get along well with people who have a differing view point than you do – alienating some, losing some members and creating avoidable adversaries along the way – would it be a surprise if the results of such an association leader would be slim at best?

There are a number of hard truths that every professional person must face. The above are so obvious, that they are shared to make a point. The hard truth is that 4 years into our industry's recovery from the bottom hit in 2009, we are faced with yet another wave of challenges.

But as John F. Kennedy wisely said, “When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity.”

written-chinese-crisis-composed-two-characters-one-represents-danger-the-ot ... -opportunity-john-f-kennedy-copyright-2013-lifestyle-factory-homes.jpg

Brutal Winter and CFPB Regulations

The combination of a brutal winter up north and new Consumer Financial Protection Bureau (CFPB) regulations represents a genuine crisis for some in our industry. Don't get me wrong, some will come through this profiting more than they did before. Some are doing well in the very areas that others are struggling. But others will fail or will have to hand over the keys to their business to someone else, likely at a distressed price.

marty-lavin-jd-manufactured-home-community-owner-on-board-spy-sea-.jpg

One of the more successful professionals in our industry – Marty Lavin, JD – who has been:

  • in retail with an operation that sold 5,000 homes a year
  • operated a manufactured housing finance firm that originated more loans than some of the chattel lenders we have today
  • survived a big downturn in the land-lease communities business, and still successfully owns and operates to this day
  • is an industry attorney who dealt with some of the biggest names in our industry and the likes of mortgage giants, Fannie and Freddie

said to me in his 6 million dollar list price 72' boat, “Tony, the problem is not the product!” (more from Marty Lavin, linked here).

We have a great home, at an incredible value. We have not done the sales training and marketing needed to grow the business. Who says? The likes of former Fleetwood manager and current state association executive Jay Hamilton:

We are an industry that for years has desired the best for our industry representatives, our customers and our distribution system but for all these years have been hesitant to:

  • invest financially in training our people,
  • marketing our product's image,
  • updating our technology,
  • improving our delivery system, etc..

Manufacturers and Retailers have made some bold attempts at the previously listed task but always fail to follow through because they don’t see immediate profits from marketing or training programs. 

We are an industry that has the need for all of our profits to be immediate. Future growth and maturation always loses out to the need for immediate results and immediate profits. 

jay-hamiltong-executive-director-georgia-manufactured-housing-association-gmha-posted-mhpronews-com(1).jpgUntil we are willing to train our people well, invest in technology, invest in customer service, invest $ in creating a brand image with the understanding that is will cost a percentage of our industry profits and will not necessarily produce immediate results we are doomed to keep repeating our same mistakes over and over.

Thank You,
C. Jay Hamilton
Executive Director
Georgia Manufactured Housing Association

At the Tunica Manufactured Housing Show, I'll be presenting on the topic of Dominating Your Local Market, version 2.0. A variation on this topic drew praise and a standing room only attendance at the Louisville Show.

You'll also have the opportunity to get the latest in

  • Manufactured Home financing, including information from lenders not present at Louisville
  • Commercial Land Lease Community Financing, both moderated by Dick Ernst of FinmarkUSA.com
  • Manufactured Home Community Lessons Learned Panel Discussion, moderated by Jenny Hodge
  • The Importance of CRM for your Retail or Community sales operation, a panel discussion

and more!

standing-room-only-2014-louisville-manufactured-housing-show-seminar-room-masthead-blog-mhpronews-com-.png

If you're marketing fails to attract enough of the good credit customers who are third party financeable or cash buyers in significant numbers, in the Dodd-Frank/CFPB era, you may not make it.

Learn more about what you need to do differently in today's market, at the free panel discussions and seminars linked above at the rapidly approaching Tunica Show.

You won't find these same topics all in one place at one event anywhere else in the U.S. at this time, so don't miss this opportunity. More information on the free business building seminars at the 2014 Tunica Manufactured Housing Show is linked here. ##

L. A. "Tony" KovachL. A. 'Tony' Kovach
ManufacturedHomeLivingNews.com | MHProNews.com |
Business and Public Marketing & Ads: B2B | B2C
Websites, Contract Marketing & Sales Training, Consulting, Speaking:

MHC-MD.com | LATonyKovach.com | Office 863-213-4090

Connect on LinkedIN:
http://www.linkedin.com/in/latonykovach 

What’s CRM? How Can it Make Your Location(s) more Money in 2014?

January 12th, 2014 3 comments

The value of CRM is demonstrated by the fact that hundreds of thousands of companies of all sizes in the U.S. use it to grow their business and improve their bottom lines. Our company doesn't sell CRM services, but we recommend it's use to the majority of our client's. So lets's answer a few common questions about CRM, you and your operation.

crm-word-cloud-300x216.jpgWhat is CRM?

Because we promote its use in articles, at live events and in training, a common question we get is what is CRM?

CRM is short for Customer Relationship Management. Briefly, CRM is software that when properly used helps a company's professionals stay in touch with prospects and customers.

Why use CRM?

Bluntly, because using CRM makes you more money! Common statistics are that proper CRM use will increase your business 15%-25% or more. When you consider the modest cost, this is a real no brainer.

CRM also protects your marketing investment! Most sales or leasing people can handle no more than 20-40 prospects using paper or manual notes. If you are getting a volume of leads or walk in customers, CRM use protects the dollars you are investing to bring those customers in.

Respected JD Powers and Associates studies are among those that point out the common sense fact that those who stay in touch with their customers greatly increase the odds of doing business.

I emphasize using CRM properly, because some may have CRM, yet fail to use it. Don't waste your money that way! If you get it, or have it, then use it.free_crm_systems.jpg

And if you have CRM, and don't like your current system, then why not see what else is available?

Why CRM in MH is More Important Now than Previously

In the Dodd-Frank/CFPB regulations era, CRM is arguably even more important now than previously. Why?

Because studies show that cash or good credit customers tend to shop 90-180 days in advance. They have cash or good credit in part precisely because they plan ahead. Those who stay in touch with those prospects are far more likely to close them than those who have a hit or miss approach.

Flash Bulletin!

Enjoy a Free, Special Presentation at the Louisville Show on CRM! We arranged for two industry veterans to do a rapid fire 25 minute session on CRM. Get first hand insights in their respective CRM systems. Learn more about this on the Show's opening day, Wednesday at 9:30 AM in the Seminar Rooms at the Louisville Show. See the map below for the location of the seminar rooms.

By the way, here are the other free, show sanctioned seminars that will take place at the Louisville Show:

http://louisvillemanufacturedhousingshow.com/louisville-2014-show-money-seminars/

Tony Kovach will do a quick introduction to this session on CRM, and the presenters will be:

Scott Stroud of BuilderRadio and Sell More Homes Academy, you can see Scott's current article at this link:

http://www.mhpronews.com/home/featured-articles/january-2014/117-marketing/6873-selling-to-or-against-buyer-perceptions-part-2-10-steps-to-changing-buyer-perceptionsp

Our other presenter will be Jason Brady with ManufacturedHomes.com, you can see his current article on our site, linked here:

http://www.mhpronews.com/home/featured-articles/january-2014/138-general-manufactured-housing-industry-topics/6870-start-the-year-off-right

There are 48 new model homes, 80 exhibitors, receptions/mixers, great networking and now 5 free, show sanctioned and business building seminars as reasons to be in Louisville January 22-24th. If your plans take you to Louisville, please be sure to attend this fast paced, insightful session on CRM and how it can help YOU close more sales in 2014! ##

FYI, we will be in booth #115 at the show, right by the main entrance to the show floor.  Please stop by and say hi!

(Image credits, MHI and MHProNews)

L. A. "Tony" KovachL. A. 'Tony' Kovach
ManufacturedHomeLivingNews.com | MHProNews.com |
Business and Public Marketing & Ads: B2B | B2C
Websites, Contract Marketing & Sales Training, Consulting, Speaking:

MHC-MD.com | LATonyKovach.com | Office 863-213-4090

Connect on LinkedIN:
http://www.linkedin.com/in/latonykovach 

Selling $2,000 – $20,000 “Mobile Homes” vs. Selling $40,000 – $200,000+ Factory Built Homes

January 5th, 2014 No comments

It is amazing that so many in the manufactured housing industry are stuck selling homes priced under $30,000. Don't get me wrong! Any sale that fills a vacant home/site or moves another home out of a street retailer's inventory is good. But until the majority of communities and retailers learn how to selling homes priced from $40,000 to $200,000 plus, our industry will continue new home production levels at historic lows.

Is there a way to sell more “residential” style homes without abandoning the pre-owned and entry level VOG homes most sell? Yes there is!

We know from real world experiences from coast to coast and border to border that factory built homes can compete head to head with conventional construction. Nor are we or are clients the only ones! There are operations that 'get good' at attracting customer who have good credit or who can write the check for a nice 'residential style' manufactured or modular home.

Bottom Feeding or Going for the Gold?

The Harvard study on rental housing, 10,000+ baby boomers retiring daily and the need for 20,000,000 new housing units by 2030 are all factors that point to a huge opportunity for a manufactured housing industry slowly coming back up to some 60,000 new home shipments per year.

Our experience shows that by reaching out to a broader mix of customers – not abandoning the lowest rungs on the housing ladder while reaching out with appropriate marketing to the better qualified customers – can work!

In his exclusive interview MHProNews.com, A Cup of Coffee with…Rick Rand, the award winning community owner/operator referenced 'bottom feeding.' This was a reference more to credit worthiness, and was not meant to be a put down to anyone, but rather points to the fact that so many in our industry fail to attract the more credit worthy customers. As more CFPB regulations kick in during January 2014, the need for retailers and communities to attract better credit customers or those who can pay cash becomes ever more clear.

In the interview with Hall of Fame inductee and highly successful independent retailer Mike Evans, training is part of the key that makes for their success.

At the 2014 Louisville Show, a number of seminars will be presented that are geared towards introducing communities, retailers and builder developers to facts and systems that work today to improve image, attract better qualified customers and sell more homes.

The traffic on the Louisville Show website tells us that the #1 page being accessed after the home page is the seminar page! Industry pros are pre-registering to attend the show in record numbers post 2010, and the seminars are expected to be robustly attended.

The map to the seminar rooms at the fabulous Kentucky Exhibition Center (KEC) is shown below.

seminar_locations_map-louisville-manufactured-housing-show-2014-posted-cutting-edge-blog=mhpronews-com-.png

At the Louisville Show, on Wed at 11:10 AM, immediately after the finance seminar, we will present a FREE session introducing some of our free, low cost or good ROI ways to improve image and grow results.

l-a-tony-kovach-dominate-your-locale-market-seminar-louisville-show-cutting-edge-blog-mhpronews-com-.png           manufactured-home-seminar-l-a-tony-kovach-cutting-edge-blog-.jp.jpg

You won't learn all our proven methods in less than an hour, but you will discover more than enough ways to improve and grow your business!

Don't take my word for it, see for yourself why we've received literally hundreds of Linkedin endorsements and dozens of recommendations over the years. See for yourself at the page linked above or throughout the MHC-MD.com website.

Then on Thursday, if you are in the MHC business, make sure you attend the Lesson's Learned session lead by MHC veterans! You can learn more at this link, and we will announce more details on that days ahead.

Financing you can use TODAY, Marketing and Sales tips and MHC insights from proven pros, all this and more awaits you at the 2014 Louisville Show…just 2 weeks away! Mark your calendars, change your plans, don't let the weather scare you away from the indoor comfort of the most popular venue in manufactured housing in 2013!

Selling $2,000 to $20,000 homes is easy. Discover at the seminar above insights into our proprietary system that we use to market and sell the $40,000 – $200,000 plus homes, including high end homes in land lease communities!

When we are not in the seminar room, you will find me/our team at booth #115, right by the main entry doors. Please do stop by to say hi, and you can collect something special that can help you grow your results in 2014. ##

PS: Check our many Exclusive and Red Hot Featured Articles for January and see the other new stories at MHLivingNews.com too.

L. A. "Tony" KovachL. A. 'Tony' Kovach
ManufacturedHomeLivingNews.com | MHProNews.com |
Business and Public Marketing & Ads: B2B | B2C
Websites, Contract Marketing & Sales Training, Consulting, Speaking:

MHC-MD.com | LATonyKovach.com | Office 863-213-4090

Connect on LinkedIN:
http://www.linkedin.com/in/latonykovach 

No Guts, no Glory

March 24th, 2013 No comments

I recall the first time I heard an industry pro tell me 'no guts, no glory,' back in the early 80s.  In marketing and sales that statement still rings true today.

Too many sales people in our industry are going after the low hanging fruit that falls in their laps.  We see credit scores in the 500s for a reason!  Until we market and sell in a way that attracts more of those 700 credit score buyers – and they are out there by the millions – we will stay stuck with low sales results because those low credit score customers are the main group that walk through doors, like yours…  

Believe it or not, the good credit customers are statistically in the majority in every state! 

This Wednesday in Tunica, MS at their big annual manufactured housing trade show, I'll be doing version 2.0 of our popular seminar, Attracting More Customers with Cash or Good Credit.  I say version 2.0, because we have refocused the presentation to hone in on concepts so amazing, the "Aha!" light bulb will be going off over dozens of heads in the seminar room in our free presentation Wednesday afternoon.

Here is the link:

http://www.MHProNews.com/events/attracting-more-customers-with-good-credit

Here is the link to the show, and all of the business and profit building seminars.

Maybe you are a manufactured home community owner looking to fill dozens or hundreds of vacant homes and sites with customers that have a better payment history.

Perhaps you are a manufactured home retailer, looking to grow your closed sales. You want more happy home owners!

Maybe you are a manufacturer, association, lender or other provider that wants to help your customer/members grow their business, so you organization can grow more too.

Pros in all of these groups who attend this free presentation will see facts, figures and some real world examples of how sales can rise from poor or fair to good or even great. You will see how this can be done profitably, with measurable, proven results.

Even if you've seen an earlier version of this presentation, be there and you will be fascinated and moved by what you see AND hear for the very first time! You will see examples of how to Attract and Sell More Customers with Cash or Good Credit.

Remember, no guts, no glory. ##

PS: Check our many Exclusive and Red Hot Featured Articles for March and see the

other new stories at MHLivingNews.com too.

l-a--tony-kovachL. A. "Tony" Kovach

MHLivingNews.com=Re-Discovering and Spotlighting the MHLifeStyle

MHProNews.comMHMSM.com = Industry News, Tips and Views Pros can Use

Services:B2BandB2CAds, Proven MH Marketing & Sales Systems, Websites other Industry Solutions.

Office –815-270-0500

latonyk@gmail.com or tony@mhmsm.com

www.MHC-MD.com

http://www.linkedin.com/in/latonykovach= connect with me on Linkedin.

http://pinterest.com/latonyk/manufactured-home-lifestyle/

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Whether you think you can or whether you think you can't, you're right. – Henry Ford