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Posts Tagged ‘business model’

MHC Owner Busy Selling Homes

May 20th, 2013 Comments off

Having re-branded 18-year-old SSK Communities as “You Got it Homes,” co-founder Nathan Smith says the company sold no new manufactured homes in 2011, 60 in 2012, and they are already ahead of last year’s sales, due to aggressive TV ads. As the owner/operator of 22 land lease communities with 4,900 homesites in Indiana, Kentucky, and Ohio, Smith says they are one of the first companies in the country to build a vertically-integrated business model—they sell the manufactured homes, arrange or provide financing, insure the home and manage the communities. Cincinnati reports Smith, who is also chairman of the Manufactured Housing Institute (MHI), says people like the streamlined one-stop shopping approach, and the company’s website, yougotithomes.com has generated over 4,000 sales leads. MHProNew has learned SSK is the largest MHC owner in Kentucky and one of the top 30 in the country.

(Photo credit: Carie Cochran/enquirer–Nathan Smith with one of the homes for sale.)

Dealer Switches to Refurbished Homes

May 20th, 2013 Comments off

The postandcourier reports from Ladson, South Carolina, Equity Homes salesman Allen Croft recalls in 1997 the company sold 986 new homes, but changed its business model as sales declined and now sells only refurbished homes. Although the majority of the firm’s homes come from auctions, 37 percent are from individual sellers. With prices from $15,000 to $65,000, they sell 18 a month, and are considerably lower than either a comparably-sized site-built or a new manufactured home. Croft says, We are 31 percent higher (in sales) than last year, and that was the best in three years.” Noting manufactured homes accounted for 18.2 percent of residences in South Carolina, the highest of any state in the country, Croft says Equity offers 25-30 models of manufactured homes, as opposed to a handful offered by a dealer selling new models. MHProNews has learned Equity also installs manufactured homes for others in this area just north of Charleston.

(Photo credit: Laura Olsen/Olsen Imagery)

WSJ Misses the Mark

February 12th, 2013 Comments off

An article in NuwireInvestor refutes the charge in a Wall Street Journal piece from Dec. 11, 2012 that the manufactured housing market is declining while the site-built market is rebounding. Of the 50,000 MHCs in the nation, 45,000 serve as affordable housing for those who pay around $500 a month for site rental and house payment. This segment of the population is the fastest growing demographic in the market, especially as 10,000 Baby Boomers turn 65 each day with an average Social Security check of $1,200 a month. The other 5,000 communities are lifestyle choice MHCs that offer many recreational and social amenities and run around $1,000 a month for site rent and house payment, a business model that does not apply to 90 percent of the factory-built housing market, but often used by the media as an example of MHCs. As MHProNews has learned, as long as apartment rents average $1,000 a month and those with lower incomes do not suddenly become prosperous, bottom tier apartments and manufactured housing communities present a viable option for those making under $20,000 a year.

(Photo credit: progressivehousing)

 

Community Ownership of Communities

May 4th, 2012 1 comment

A segment on National Public Radio (NPR) highlights the problem MHC residents may face if the MHC owner decides to sell his community, causing residents to lose a home that may no longer be mobile, and thus their financial investment. Where some people may see this as a huge boulder that cannot be moved, ROC (Resident Owned Communities) USA, a non-profit based in Concord, New Hampshire sees an opportunity for community residents to purchase the land their homes sit on as a co-operative. When a community comes up for sale, Paul Bradley, president of ROC, and his team help residents form an entity to make a bid on the land. If the bid is accepted, ROC helps the co-op find investors. To date he has received backing from several foundations, but he hopes to tap into the deep well of commercial markets, much like the $13 million Bank of America has invested. B of A’s’ Dan Latendere says ROC has a good business model. Says Bradley, “On over $200 million worth of total lending, not a single lender has lost a single dollar over the course of the last 30 years.” He sees MHCs as affordable housing for people of low to moderate incomes, and co-ops as the opportunity to control their destiny. MHProNews.com has learned community owner George Allen was quoted as supporting the ROC option. “ROC USA has helped 2,200 homeowners in 35 communities purchase their parks and gain economic security,” says Bradley. He adds, “I want resident ownership to be available to every homeowner group in the country that wants to buy their community.”

(Image credit: National Public Radio)