Posts Tagged ‘Co-Founders’

What Others Say – Legacy Housing Corp (LEGH) IPO Set for 12.14.2018

December 11th, 2018 Comments off



The initial public offering – IPO – for Legacy Housing Corporation is set for 12.14.2018, per NASDAQ.


That makes this a good time to take a look at what they and others beyond the manufactured housing industry are saying about Legacy.

We like old-fashioned businesses. This one is in low-cost, manufactured housing. If you know what a “double-wide” is then you know what types of homes we are talking about here,” said Candyman of IPOCandy for TalkMarkets.

Any investor should respect the numbers Legacy (LEGH) is generating – $169M LTM revenues up 31%, 24% EBITDA margins and pre-tax ROE of 26%,” Candyman continues. “These levels of growth and profitability have been consistent over the last 10 years.”



Candyman then goes on to elaborate a point known by thousands of manufactured housing pros, and often plugged here on MHProNews or on Namely, the savvy of offering affordable homes during an affordable housing crisis.




Considering Low Cost Housing

Housing is expensive, especially stick-built single family homes. For many Americans, a manufactured home is an excellent, low-cost solution. Demand for lower-cost housing has been very durable and it’s not just from low earners. As rents increase in greater metropolitan areas young adults are realizing that they may be better off owning, if they can find a “starter” property that they can afford. Often that won’t be a detached stick-built structure,” per TalkMarkets.

Other demand drivers are from community builders (described below) and as vacation homes requiring less investment and maintenance that a typical one family home,” adding, “Unit volume has been recovering since the US economic collapse in 2008 but still has room to expand further before nearing prior levels.”



Legacy clearly believes in the future of the business, because they are raising capital to expand their retail base.  The chart above is more useful than the ones shown by other media. 

NASDAQ said, “Legacy Housing Corporation, formerly Legacy Housing, Ltd., builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured home communities. We are the fourth largest producer of manufactured homes in the United States as ranked by number of homes manufactured based on information available from the Manufactured Housing Institute and Institute for Building Technology and Safety for the second quarter of 2018.”




With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $22,000 to $95,000. In 2017, we sold 3,274 home sections (which are entire modules or single floors). During the first nine months of 2018, we have sold 3,045 home sections. We commenced operations in 2005 and have experienced strong sales growth and increased our equity holders’ capital at a compound annual growth rate, or CAGR, of approximately 25% between 2009 and 2017. We currently have the largest backlog of orders in our company’s 13-year history.”

Donovan Jones writing for investors media outlet Seeking Alpha shared the following video from Legacy, and basically says they think this stock ought to be a buy.


Among the pull quotes Jones at Seeking Alpha cited was this:

Market & Competition

According to a 2016 release by the U.S. Census Bureau, the total manufactured homes market was valued at about $6.245 billion in 2007, marking a decline to about $5.8 billion in 2016.

The average sale price per manufactured house has risen from $65,400 in 2007 to $70,600 in 2016, while the total number of homes sold has declined from 95,752 in 2007 to 81,136 in 2016.”


Graphic, including apparent errors, is by MHI. Their GDP, count is about 50 percent understated. There are also some 10 more manufacturing plants now than what’s shown. Some sources dispute the job count as too low for the total industry as well.


That GDP figure once more makes a point that MHProNews has made for over a year. Namely, that MHI is wrong, wrong, wrong in saying that the manufactured housing industry adds $3 billion to the economy.  As a short segue, does it seem that MHI wants to make manufactured housing seem smaller than it is?  MHI, per member Frank Rolfe, under-reports the number of land-lease communities by about 6,000.  Rolfe and his partner Dave Reynolds say that a “two year hand count” resulted in some 44,000 communities they identified, while MHI uses a number closer to 38,000 communities, which – no surprise – mirrors the figure that purportedly favored-member MHVillage provides.


Legacy Housing Files for IPO, Plus Manufactured Housing Industry Market Updates

Those details matter to companies that are emerging, such as Legacy, and others.

CurtisHodgsonKennyEShipleyLegacyHousingCorpCoFoundersLEGHIPOMHProNewsLegacy was co-founded by Curtis D. Hodgson and Kenny E. Shipley, and per NASDAQ, “Our homes address the significant need in the United States for affordable housing. This need for affordable housing is being driven by a nationwide trend of increasing rental rates for housing, higher prices for site-built homes and decreasing percentages of home ownership among portions of the U.S. population. Our customers typically have annual household incomes of less than $60,000 and include young and working class families, as well as persons age 55 and older. In 2016, there were approximately 63,799,000 households in the United States with annual household incomes of less than $60,000, representing a majority of all U.S. households, according to the Current Population Survey and 2017 Annual Social and Economic Supplement published by the U.S. Census Bureau.”


We believe our company is one of the most vertically integrated in the manufactured housing industry, allowing us to offer a complete solution to our customers, from manufacturing custom-made homes using quality, cost effective materials and distributing those homes through our expansive network of independent retailers and company-owned distribution locations, to providing tailored financing solutions for our customers. Our homes are constructed in the United States at one of our three manufacturing facilities in accordance with the construction and safety standards of the U.S. Department of Housing and Urban Development (“HUD”). As of the date of this prospectus, our factories employ high-volume production techniques that allow us to produce, on average, approximately 75 home sections, or 62 fully-completed homes depending on product mix, in total per week. We use quality materials and operate our own component manufacturing facilities for many of the items used in the construction of our homes. Each home can be configured according to a variety of floor plans and equipped with such features as fireplaces, central air conditioning and state-of-the-art kitchens,” said NASDAQs review.


From Legacy Housing (LEGH) S1. See full S1 as a download, linked here.

Nasdaq goes on, “Our homes are marketed under our premier “Legacy” brand name and, as of September 30, 2018, are sold primarily across 15 states through a network of 115 independent retail locations and 11 company-owned retail locations and through direct sales to owners of manufactured home communities. Our 11 company-owned retail locations, including our nine Heritage Housing stores and two Tiny House Outlet stores, exclusively sell our Legacy branded homes. During 2017, 62% of our manufactured homes were sold in Texas, followed by 8% in Georgia, 8% in Colorado, 5% in Oklahoma, and 4% in Louisiana. For the nine months ended September 30, 2018, our largest sales occurred in Texas (59%), Georgia (12%), Louisiana (9%), and Oklahoma (4%). We plan to deepen our distribution channel by using a portion of the net proceeds from this offering to expand our company-owned retail locations in new and existing markets.”

We offer three types of financing solutions to our customers. We provide floor plan financing for our independent retailers, which takes the form of a consignment arrangement between the retailer and us. We also provide consumer financing for our products which are sold to end-users through both independent and company-owned retail locations, and we provide financing to manufactured housing community owners that buy our products for use in their housing communities as rental units. Our ability to offer attractive financing options provides us with several competitive advantages and allows us to capture sales that may not have otherwise occurred without our ability to offer consumer financing.”

We were originally organized in May 2005 as Legacy Housing, Ltd., a Texas limited partnership. Effective January 1, 2018, we converted into a Delaware corporation and changed our name to Legacy Housing Corporation, which is referred to herein as the Corporate Conversion,” adding, “Our principal executive offices are located at 1600 Airport Freeway, #100, Bedford, Texas 76022, and our telephone number is (817) 799-4900. You may access our website at”

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PreFab SunDog’s Leaders Encourage Buyers to “Contain Yourself”

November 13th, 2018 Comments off



The report by WFLA, an NBC affiliate in Tampa, FL, is so glowing, one must wonder if the article and report were ‘commissioned,’ or a straight-news report.


The Daily Business News on MHProNews asked WFLA.  Normally, mainstream news media are happy to say, unless it is a de facto advertorial, then they are less likely to reply.  WFLA gave no reply.

But SunDog sales manager Miranda Piechowski told the Daily Business News on MHProNews that the firm has obtained other positive media from the Tampa Bay Times, and Channel 13, a local Fox affiliate.  “Straight news,” Piechowski said.

The report by John Rogers included the video as shown, and the text looks like a close match for much of the narration of the video.


In a report that uses some hyperbole and is missing some data to back their claims, WFLA said, “The hottest trend in real estate across the U.S. is a 40-feet metal box. Container homes are taking the country by storm, and now the trend has made its way to Tampa Bay. In an effort to save money on a new home, more and more people are thinking outside the box and choosing to move into one instead.

Scott Myers and his wife Emily Cusmano, per WFLA, said the pair looked at a SunDog container house as an option over a tiny house, and thought ‘I want to live in that!’

My wife and I, we’re really into efficient living and small living,” said Myers.  The report says it will be the first one in Tampa, FL.




The couple originally considered a tiny house, but they changed their minds after seeing how much bang for their buck they could get with a container home.

Theirs will be one of the first of its kind in Tampa.

We got over [our concerns] pretty quickly when we realized how cool they were,” said Cusmano.

We looked at custom builds, and it was almost double the price and it doesn’t give the look we’re gonna get from having this nice piece of house here,” said Myers.

WFLA said, “At SUNDog Structures, container homes can be built roughly $15 a square foot cheaper compared to the construction costs of a traditional home.

“Fifteen-dollars may not sound like a whole lot but when it comes to multiplying it by 2,500 times, it really adds up quickly,” said Cox.

The homes can be built on land you own – and fast. So while a foundation is laid, SUNDog will complete the house indoors in less than 160 days. 

By building the homes in a warehouse, the workers can focus on quality and avoid exposure to the elements.

Officials say durability is what truly sets container homes apart compared to prefabricated or manufactured homes.”

The photos and illustrations shown were not part of the WFLA report.




The NBC affiliate said that, “SUNDog Structures provided this list of the pros and cons of container homes:”

The Pros Of Container Homes

There are many reasons that the container home trend is the newest “poster child” for the tiny house revolution. Here are a few of the biggest advantages of container homes! Take a look now, and see why they’ve become so popular.

  •  They’re incredibly affordable – Building a container home is affordable, and it’s within reach of many Americans who may be priced out of the traditional housing market. Container homes usually cost around $117-$125 per square foot.In contrast, the construction of a traditional home usually costs about $200 per square foot – at a minimum. This means that building a shipping container home – whether it’s permanent or mobile – will be much less expensive than a traditional home.And this has other benefits. The more you save when building your home’s structure and purchasing appliances, the more money you can spend on luxury items. You can afford better furniture, appliances, and even other luxuries like a spa, swimming pool, solar panels, and so forth.

And not only are container homes affordable to buy, they’re affordable to live in. You can use solar panels and rainwater tanks to save on utility bills, and insulate your home to ensure that it does not consume too much power.

The more you save on construction and utilities, the more luxuries you can afford! And that’s a good thing.

  •  Eco-friendly and sustainable – This is a huge benefit for anyone who is concerned about their environmental footprint, and wants to think globally and act locally. The process of building a traditional home is quite resource-intensive, and requires a lot of supplies and materials that must be shipped from around the world, increasing your carbon footprint. Traditional homes also often require a large plot of land to be cleared of grass, plants, trees, and more, to prepare for construction and the pouring of a foundation, which means you’ll damage your local environment when you build one. In contrast, shipping container homes are built from recycled materials, making them more environmentally-friendly. And they can even be built in a factory, which means less transportation of materials, and a lower carbon footprint.

Their eco-friendly design extends further than just construction. You can build your home with solar water tanks and solar panels and other features that make you less reliant on local power, which means you’ll reduce the impact you have on your surrounding environment.

So if you’re interested in “going green”, a shipping container home is one of the best ways to do so. You can make the most out of a small space, and make sure that you don’t damage your environment.

  •  You can customize every part of your home – With a company like SUNDog Structures, you’re in complete control of how your home is built. Whether you’re interested in a mobile shipping container home, or a permanent structure, you can work with experienced designers to create a shipping container home that lives up to your vision of an ideal home. This means you’ll get exactly what you want – and you don’t have to just accept a pre-built home from a developer, which can’t be changed and modified. Whether you want a “green roof” which can support plants and grass, a window that takes up an entire side of your container, or home office underneath your loft bed, you can build the home you’ve always wanted.
  •  They can be built very quickly – Shipping container homes can be built in just a few weeks, especially if they are made from only one or two containers, and are designed to be mobile. The home can be built in a factory, and ready in less than a month. In contrast, it can often take a year or more for a traditional developer to complete the process of building a home, and even longer for it to be ready for habitation by you and your family.
    These are just a few reasons that container homes are becoming so popular, especially among younger folks. They’re affordable, flexible, customizable, and environmentally friendly!

The Cons Of Container Homes

Container homes are great – but because they’re a relatively recent innovation, there are some drawbacks that you may need to be aware of, before you commit yourself to purchasing one. Let’s look at some of these disadvantages now.

  •  Zoning and building permit acquisition may be complex – Building permits, zoning codes, and other local municipal ordinances may make it hard to get permission to build a permanent home out of shipping containers – or bar you from placing a mobile container home on your property. Most local city councils and lawmakers don’t really know much about shipping container homes, and their outdated laws reflect this. Before you begin construction, you must research your local planning regulations. They may specify things like disallowed building materials, the minimum size of a home, and other such guidelines that your container home must abide by.

Building permits take time to be approved, and it may take longer for you to get approval when building a container home, compared to a traditional home. Be prepared for this, and make sure you double-check with all local zoning and inspection departments for approval – before construction begins.

  •  They’re small (if they’re mobile) – Shipping containers provide about 320 square feet of area, and this means that they are very small, particularly if you build a mobile home, and use just one container. If you have lived in small spaces before, you won’t have any issues – but if you’re used to more spacious living situations, this may be hard for you to get used to.We recommend you do some research, and visit some other tiny homes and mobile homes to make sure that you are up to the task of living in a small home.
  •  Offsite construction may be required – This could be a pro or a con, depending on your perspective. While it’s nice to have your home built offsite – because it’s fast and efficient – you can’t be very involved in the process, unless you live near the factory where your home is being built, which is unlikely. This is a potential drawback. However, if you don’t mind, and you trust your contractors to make your home look perfect even without your oversight, this could actually be a benefit! Your dream home will be delivered right to your property!
  •  It may be hard to find an experienced contractor – Again, this drawback is primarily related to how new container homes are. Most builders and developers have never worked with shipping containers, and they won’t really know how to build a home using shipping containers – which could mean you’ll have to settle for an inexperienced contractor. However, there are some contractors who have years of experience working with tiny homes and container homes all around America, such as SUNDog Structures. If you can find the right contractor, you don’t have to worry about this drawback!
    While container homes have a number of advantages, there are some quirks and drawbacks associated with building one, so make sure you understand the disadvantages we’ve outlined above!”

The text between these two images here and further above are from the WFLA report, which said they obtained it from SunDog Structures.  


Sit Up and Take Notice 

Once more, manufactured and modular home producers should take note. They are positioning their product – which is certainly their right – in ways that aim for the HUD Code or modular buyer.

ICYMI, or need a refresher, see the report about a Jeff Bezos/Amazon investment unit that has made a bet on prefab housing, in the related reports, further below.

That’s this morning’s “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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