Archive

Posts Tagged ‘Mobile Home Parks’

Legacy Housing Announces New Bulk Leasing Program for Manufactured Home Communities and Mobile Home Parks

February 15th, 2019 Comments off

LegacyHousingAnnouncesNewBulkLeasingProgramManufacturedHomeCommuniteisMobileHomeParksDailyBusinessNewsMHProNews600

Legacy Housing Corporation (NASDAQ: LEGH) has announced a new program for manufactured home park and community owners across America. 

 

The new Legacy bulk leasing program allows for parks and community owners to lease brand new singlewide and doublewide homes from our Eatonton, Georgia factory at an 8-year lease term.  With no payments for the first 60 days and a 4-home minimum purchase, this program is the perfect way for parks to fill spaces at affordable amounts and to get brand new 2019 models for their lots and communities.

Legacy’s bulk leasing program offers free shipping for the first 200 miles of transport and has a $1,000 refundable deposit per home, returnable upon the installation and skirting of home or the denial of credit/leasing qualification.  With the right to terminate a lease with proper notice with a minimum penalty, and the right to move homes within a park if appropriate notice is provided to Legacy, this program is currently helping to make new product accessible to small business owners and entrepreneurs in the park home market.

This upcoming Wednesday and Thursday, February 20 and 21, Legacy will be having our Semi-Annual Sale at our factory in Eatonton, Georgia.  Featuring over 140 brand new homes, including 100+ park-ready singlewides ranging from 12×34 to 16×64 and over 2 dozen Tiny Houses, this sale has something for every park owner.  With a mix of 1,2, and 3 bedroom units, wind zone 1 and wind zone 2 compliant houses, these homes are pre-built and ready to roll.

Legacy Home Sale Feb 20-21

With monthly bulk leasing prices starting at $243 / month for a 12-wide, this is a can’t miss opportunity to get the most bang-for-your-buck.  For more info on Legacy’s bulk leasing program or to join us at our upcoming Georgia Home Sale, email caseymack@legacyhousingcorp.com or call our Georgia sales team direct at (770) 502-6228.

That’s part of this Friday’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Legacy Housing Announces Corporate Role Changes, Plus Manufactured Housing Market Updates

Insider Trade During SEC Mandated ‘Quiet Period’ at Legacy Housing Corp

Legacy Housing IPO (LEGH) Quiet Period Set to Expire, SA’s Don Dion

Legacy Housing Exclusive to MHProNews on Firm’s Solid IPO, Plus MH Market Updates

 

 

 

 

 

 

 

Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

June 20th, 2018 Comments off
TheArtParkRobbieAntonioRevolutionPreCraftedHomesManufacturedModularPrefabHousingIndustryDailyBusinessNewsMHProNews

Still from the video below. Text, collage by MHProNews.

Housing is a global need, and Asia is the largest market. As the Daily Business News recently reported, U.S. based Hometown America is one of several operations in manufactured housing that has ties to Asia, some of which are deepening.  Hometown’s recently announced deal is valued at nearly ½ a billion dollars.

 

CNBC is a division of NBCUniversal, and their “Managing Asia” program is about the Asia Pacific region, featuring CEOs, entrepreneurs and other business leaders.

Divestopedia defines a unicorn like this, “…a unicorn refers to any tech startup company that reaches a $1 billion dollar market value as determined by private or public investment. The term was originally coined by Aileen Lee, founder of Cowboy Ventures.”

In a release to MHProNews, CNBC’s Christine Tan provided the following transcript of an interview with Robbie Antonio, or Revolution Precrafted, a firm which asserts their focus on “Modern Prefab Homes by World Renowned Architects & Designers.”

Here in the U.S. “trailer parks” evolved into “mobile home parks” of 5 (+/-) decades ago have become what a number of industry professionals today refer to as “land lease communities” or “manufactured home communities.”

Forget all of that for the next few minutes, save as history and background.

Then, consider what Robbie Antonio is doing to bring factory-crafted homes into the future. Note how Antonio is attracting global attention, including well qualified buyers and investors alike.

The project that Tan is asking Antonio about is the one in the video, below.

 

 

Christine Tan: You know Robbie, we’re here at this 150 hectare park at Batulao Artscapes which you call a living Art Park. What can one experience by living here?

prefabhomeinstalledintwodaysaspartofparisshowcreditrobbieantoniodesignbloomrevolution-postedtodailybusinessnewsmhpronewsmhlivingnews

Robbie Antonio. Credit: Design Bloom & Revolution Precrafted Properties.

Robbie Antonio: I’ve seen other art parks around the world and many of them are just museums and you get to see art and then you go back home. Imagine living in it. Imagine living in a David Salle house, Elizabeth de Portzamparc house, and really being surrounded by this magical environment.

C: What is the price point? How cheap can a prefabricated housing be?

R: The house and lot here is less than 50,000 dollars which is about 3 million pesos or so

C: Your family has been in real estate for almost 30 years. You started Revolution Precrafted in 2015 to essentially create a startup for prefab housing. How did you stumble upon the idea?

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

R: I come from the real estate world and I’ve been doing this for over 10 years. In New York, I built my own company called Antonio Development where I did a project in the Plaza District, the most sought after area in all of Manhattan, close to Central Park where nothing has been made in 20 years. So when I did that with Mr I.M Pei, it was the first round of residential products I had ever done. At the very early age of 28 I started the idea of positioning buildings in a proper format, came back to Manila and did a flurry of branded towers with fashion companies such as Armani, Missoni and Versace. I did Trump Tower and also projects with Hollywood icons such as Paris Hilton where I did 9 towers with them. In mid-2015, I wanted to do something extremely disruptive. I wanted to be an asset-light, no inventory business and global.

C: So you were tired of the old model?

R: Yes, to begin with, and second I was looking at major unicorns like Airbnb and Uber from miles away and I basically said this to myself: “What do they have in common?” I asked myself this for a straight week. No inventory, asset-light, using technology and truly global.

I feel that I’m a man of the world and I did not want to just do projects here in Asia. I wanted to look at the world as if it were all the same country and I wanted to be global without being asset heavy. Then it just dawned upon me. It was like a Eureka moment, an epiphany in the middle of 2015. I wanted to investigate an industry called the prefab market, a space which allows you to get from Point A to Point B very succinctly.

It’s a means to the end, not the end. The end is to truly be everywhere, ubiquitous, and I wanted to be prevalent and omnipresent in all the regions of the world. I’ve told my team I want to be in 25 different countries this year, 55 by next year, 85 in 2020 and possibly go public then.

C: You’re not worried about cannibalizing your family’s real estate business?

R: Why would you talk about cannibalization when you should be talking about complementary businesses?

C: How so?

R: We’re in Batulao, it’s a 145 hectare development. This specifically is a Century Properties Development, the only 1 I’m doing out of 11 countries and all the master plans we have closed. Case in point you have David Salle’s house there, Elizabeth de Portzamparc’s house here. Most of these developers outsource construction and supplying of construction to an entity anyway so that’s adding value, not cannibalization.

C: So I know it’s your own business but what did your father say when you told him about it?

R: I told him after the fact. I said this is what I’m doing, I’ve been working on this and I’m recently launching this in Miami Art Basel which had just happened a week or 2 weeks before. So I’m very independent, I’ve always been an independent person. To be emancipated and to really feel empowered is something that is integral to my existence.

C: You literally introduced brand to the whole concept of prefabricated housing by listing well known designers like the late Zaha Hadid and Tom Dixon to create these pre-fabricated housing for you. How do you get these high-end well known architects and designers to create something? They’re so used to big budgets, how do you get them to create something at a fraction of the cost? How big a challenge was it?

R: That’s the point. That’s why it was so intriguing for a lot of people and that’s why it was so intriguing for me. I always say in business that if someone’s in, I’m out. So that really means I always want to be a first mover in anything I do, and for this particular case as you just stated a lot of these brands are used to doing mega mansions or mega museums. Jean Nouvel’s did the Louvre Abu Dhabi, a billion dollar project but now we’re doing a Jean Nouvel museum here for not even 0.5% of that. So it was this antithetical rationale and business concept that was intriguing for them.

StillFromRevolutionPrecraftedPropertiesVideoTheArtParkManufacturedHomeLivingNewsMHProNews600x

Collage based upon still from video above.

C: They took it as a challenge?

R: Of course! If you have the foremost brands in design and architecture doing really expensive structures with probably no budgets at all, you get people to think a little bit more. That sets parameters like a mathematical equation and gets people to challenge themselves more.

C: I can understand architects, but you recently just signed on Manny Pacquiao –

R: That was last night, haha.

C: What has boxing got to do with housing?

R: I’m going to do sports cities around the world with him.

C: That’s your latest addition?

R: That was yesterday, he’s our 76th one. I told everyone in my office that I’m going to stop when we hit 100 and take a break.

RevolutionPreCraftedYoungGunsLegendsRobbieAntonioTrump-ModularPreFabHomeMHLivingNewDailyBusinessNews

MHLivingNews and MHProNews were the first in the manufactured home space to spotlight this rising star in prefab housing. Note the thinking of Robbie is similar to that of builder-businessman Donald Trump – “I like thinking big. If you are going to be thinking anyway, you might as well think big.” https://www.manufacturedhomelivingnews.com/young-guns-legends-robbie-antonio-eric-trump-high-end-designer-prefabs-class-for-the-masses-revolution-pre-crafted-properties/

C: How did you convince Manny Pacquiao to sign with you?

R: First we’re the only branded housing company in the world, bar none. So ultimately it’s a choice of doing it with some entity that has not done it or it’s not within their business plan, or doesn’t understand the full ethos of high impact design and doing it at an accessible price point.

He’s a humanitarian and that’s what I like about him. So we’re talking about creating sports cities and fitness centres under his name and his design, possibly even his land and really trying to change his neighborhood. That’s what I found also enthralling about the entire conversation, and we’re going to go after it. I don’t go for brands just because they’re famous; I go for people who are relevant.

C: So, you’ve got housing, you’ve got this, and you’ve got sports cities and sport complexes, what’s next?

R: At Revolution we’re doing multiple products in multiple geographies. I want to be in 6 regions in the world pretty much everywhere in the world. We’ve hit 4, definitely Asia with our projects in Myanmar, Philippines and Indonesia. For Dubai, our mega project in 9 islands in the world, we’re a foreign group doing something there where not even locals have actually announced so it has been something really interesting to us. I just came from Bahrain where I spoke and we’re definitely going to enter that market as well.

C: But what’s next? Office towers? Skyscrapers? What’s next for Robbie Antonio?

R: We’re going to go vertical, and we’re going to do prefab condominiums and prefab hotels later on this year. We’re actually going to do an Art Hotel here which is still relevant to the art concept. Aside from just creating products, we also engender creative and ingenious concepts for different master plans.

C: Revolution became profitable barely a year after it opened for business.

R: Yeah, the first quarter actually.

C: Did you ever think you would be so successful so quickly? You’re actually the Philippines’ first unicorn startup

R: I mean, I knew we were going to be successful, but I didn’t know the speed with which we were going to achieve this. A lot of these other mega startups, so-called unicorns have unbelievable valuations which raise a billion dollars so on and so forth, but I wanted to stay true to the integrity of the firm to be an asset light business model and to be everywhere.

C: You’ve signed up more than 7 billion dollars in deals in countries like Puerto Rico, Japan and Dubai, in more than 10 markets. Which overseas markets are you eyeing next?

R: I’m going to Europe next week, to 8 or 9 different countries. Scandinavian countries love modular prefab systems and I’m going to Norway, Sweden, Finland, also going to Poland as well and Spain. But this is a night each, this is no vacation. I haven’t had a single day of vacation since I started the company.

C: I understand the basic concept of your business model is that you manufacture parts of the home in the factory then you ship them on-site before assembling them like Lego bricks. How big a challenge is that, logistically?

R: Extremely complex. The prefab business has always been a fragmented industry, meaning that American prefab companies cater mostly to American end users and you go straight to retail. Asian ones are catering to Asians, Malaysian ones are catering to Malaysians and so forth, and it’s the same thing in Europe.

C: So you try to build the factories close to your projects?

R: No, that’s why I have a network, because the orders are coming from different parts of the world. In some cases for example Batulao is not all, fully prefab. Some are inserted on site in terms of some of the components.

C: So it’s basically cheaper to do it that way?

R: Yes, and faster. This goes back to the value proposition of Revolution. The first is speed, we’d like to say we produce things – we used to say at least 90 days, but now I produce in 45, 60 days.

C: So how safe is your housing, Robbie?

R: These are rigorously tested from the factories which go up to 250km/h seismic conditions to the highest degree, so these are very strong robust structures.

C: So just to clarify they can withstand a bad typhoon or a bad hurricane?

R: Why do you think we’re shipping in Puerto Rico and why do you think our orders are coming from there? Didn’t they just have a massive hurricane there last year? This is exactly why the value added is also helping people get to the points they usually can’t get to. For example, Islands, Dubai the World Islands is perfect. Puerto Rico, Vieques is perfect.

C: So you’re actually solving the world’s housing shortage problem?

R: In a way. I mean think about it right? It’s not all about design anymore. The amazing thing about it is it’s not a want, it’s a need and that’s something we’re trying to solve here.

StillFromRevolutionPrecraftedPropertiesVideoTheArtParkManufacturedHomeLivingNewsMHProNews

Still from video above.

C: I know you’ve done the math, so I know you’ve worked out how much it costs in terms of transportation costs and shipping, give me an idea how much it costs to actually ship such a big structure to market?

R: It’s actually not that much. Our containers ship a little bit over a thousand US Dollars only, so some of these homes can be put in 2 or 3 containers and you can do the math, when it gets from one point let’s say Southeast Asia to Australia.

C: So you’re inking all these multimillion dollar deals everywhere across the world. But are you investing enough in factories to support the kind of growth you see overseas?

R: We have an amazing network of global fabricators, and depending on where their orders are coming from and from which region in the world, I basically make that call and start producing these homes. So it’s a really B2B2C model where we partner and form a joint venture or we supply to a developer and they turn it out to the end user, and so far the sales have been super robust. For example, our project in Lakeshore Pampanga, the world’s first livable food bar, sold over a 1000 homes in about 2 months so it’s very enriching to see that people appreciate what you do.

C: Are you upping your investment in factories? What sort of amount are we talking about?

R: Absolutely. Ultimately later on I’d like to have different networks of different fabricators, but I’m not at that point right now. I’d like to create my own because I’m literally a control freak.

C: You want to set up your own factory?

R: Yeah.

GetEmailedHeadlineNewsDailyBusinessNewsMHProNews

Thousands of pros and investors get it. MH industry headline news in your inbox, typically 2x weekly. To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above. . 

C: When will it happen?

R: As early as this year actually. I’m already having conversations with amazing technology providers and we’re just going to go make the investment

C: So how many of your own factories do you ultimately want to have?

R: Ideally I’d like to have 1 per region, so ultimately that will be 6. I’ll start with Asia because that’s where most of the orders are coming from.

C: So, late last year, you’ve actually raised an undisclosed amount of money in your second round of funding from Singaporean venture capital K2 Global. Given all these deals you’re inking and your need for investment in factories, how soon before your next capital raising exercise?

R: I’m probably not going to do a Series C because we don’t need the money until maybe next year. We’ve gotten good fresh round from institutional investors and large family offices so I think it won’t be until next year when I have hundreds or thousands of these homes already and different master plans to show, and I’ve reached the goal of hitting the 25 countries we have to have penetrated by the end of the year.

C: What are your plans to take Revolution public? What are you looking at?

R: I mean there are only 2 ways to go to exit out of this or to maintain it. One is to sell it to a company.

C: Are you interested in that?

R: Look, the biggest homebuilders in the world are in America and they’re worth 10-13 billion so how can they buy some entity which should be selling at more than that? So the only way to go like many of the unicorns you’ve seen is to go public

RobbieAntonioArtParkVisionToAmericaStilfromVideoManufacturedMOdularPrefabHomeDailyBusinessNewsMHProNews

C: Where would you list?

R: Probably America, UK, or Singapore

C: What sort of time frame are you looking at?

R: Maybe 2020 or 2021.

C: Give me a sense of how big you will be in 2020?

R: 85 countries, we hope – north of several billion dollars of revenue a year.

C: North of several billion dollars?

R: That’s for sure

C: What are you talking about, 10 billion, 20 billion?

R: No, that’s probably a valuation but that will be very difficult to achieve in terms of revenue and high profitability. The greatest thing for our business would be if we can achieve the sort of scale where we can be truly global, supply everywhere, and be very highly profitable.

C: What is highly profitable to you? What sort of figure are you looking at?

R: 30, 35% margin

C: And is that something you’re looking at?

R: So, think about it. We have total project revenues about 7.2. About a 3rd of that goes to construction, that’s our revenue. So you can just do the math accordingly and then we make about 30% of that, so that’s what we’re expecting from the current deals. I haven’t even got to Europe yet though, but that’ll be next week.

C: Do you worry about expanding too fast?

R: Do I worry about expanding too fast? I don’t think I’m expanding fast enough in fact.

C: Really?

R: I’m a man of instant gratification and quite frankly I need to see things done very quickly. Expediency is integral and I always say my biggest weakness which is actually my biggest strength as well, is my impatience. I like to see things in a jiffy.

C: Will you be happy just heading Revolution Precrafted? Is there something else in the pipeline you want to kick off?

R: Not at all, I don’t think this is the ultimate legacy.

C: What other things are you planning?

R: I think we’re doing something great here.

C: But what projects would interest you? Does it have to be a 100 million dollar idea or 200 million dollar idea?

R: No, it’s got to be a several billion-dollar idea for me to jump and be excited about something, and it’s not just about the math believe it or not. It’s about truly changing the way people think about something. That’s what really interests me, the challenge of that. The sheer challenge and difficulty of achieving something that is seemingly insurmountable challenges me.

C: You father is well known Philippine real estate tycoon Jose Antonio of Century Properties. You’ve joined him in the ranks to be among Forbes’ 50 richest in the Philippines. How does it feel like to create your own business, to be successful in your own right?

R: It’s obviously gratifying. I know a lot of people and friends from different countries who are of the 2nd or 3rd generation and I respect that but I respect the founders more. I mean growing a business is very impressive, but starting a successful business is the most difficult thing.

SubmitNewsTipsManufacturedHomeProNewsMHProNewsLogoDailyBusinessNews

Submit confidential or on-the-record news tips, or comments at this linked email –> iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

C: So you don’t want to be seen as the 2nd generation, you want to build something in your own right, in your own right?

R: I’ve already done it, so I think that’s the point of this exercise. And look, I don’t know what you call that, insecurity. Sometimes when I interview people I actually like people who are because they always have something to prove and when you have something to prove you work harder than everyone else.

C: You have something to prove all the time?

R: To myself. Not to anyone else, but to myself.

C: So your family is in real estate, your father obviously running Century Properties. Any valuable lessons you picked up from him over the years as young boy watching him grow his business?

R: I mean I obviously thank him because my love for real estate came from him so I will never take that away from him. But the desire to do something differently, the desire to create something is truly inborn and sort of innate with me, so I always try to innovate, disrupt an industry or industries.

C: Whether it’s Paris Hilton, Lenny Kravitz or Adrien Brody, you in particular hang out with the who’s who in the celebrity world. What’s it like having friends in such high places? Is it mostly business or mostly pleasure?

R: First, I don’t just hang out with celebrities. I mean a lot of people think that but a lot of it is they’re my friends. Some of them are my very good friends or my best friends. To me work is play; to me a trip in Spain has got to be filled with meetings aside from other things. It’s all intertwined in one.

C: So you always try to find a way to turn a personal relationship into a business relationship? You’re always looking for an opportunity?

R: I always think, “Is there a deal here?”

C: So when you’re talking to Lenny Kravitz or Adrien Brody, you’re always thinking is there something I can do with them?

R: I bet you half of them are thinking the same way! So I might as well just make the first move, some of them may come to deals and some of them may not be deals and that’s really ok,

I get back to them in a couple of months or weeks when I have something formidable because I want everyone to be excited by this.

C: You’re one of the most well connected young Filipinos today. You’ve been described as someone with a magnetic personality that no one can say no to. Are you really that persuasive when it comes to closing a deal?

R: First I think I give the value proposition in a succinct and formidable manner where they can truly understand it and buy into it. I think obtaining 76 of the world’s best architects and designers is not an easy thing and I’ve been doing this prior to this, so I’ve totaled it to about 84, probably more than any human being in the world

C: So you just turn on that Robbie Antonio charm to get people to say yes to you?

R: No, I mean, I think it’s just my personality. I’m very much driven by obtaining these things

C: Do people ever say no to you?

R: Of course some people do. Very few, but some people do. Most say yes and we’d like to keep it that way

C: You’re 41 years old, born in the Philippines. You studied many years in the US, got your Economics degree there, an MBA from Stanford, spent 5 years working in the US, joined your father’s business in 2009, and then really founded Revolution Precrafted in 2015. How would you describe your leadership and your management style? What is Robbie Antonio like?

R: I’m hardcore. I have an almost West Point type of leadership, military style. In fact I love interviewing military people, people who have business backgrounds because they’re very disciplined. I wake up my team up at like 4:35 in the morning.

C: You wake them up at 4:35 in the morning?

R: Yeah, I basically Whatsapp all of them and I ask for reports and all that and I’m probably the last person they hear from in the evening.

C: Is it true you have a rule in the office where employees have to answer a text or an email within 10 minutes of getting it and accomplish the task within 24 hours?

R: Yeah, that is correct and if I don’t hear from them, I have 1 of my assistants (and I have 4) contact them to get me a response.

C: Why is speed important to you?

R: Because it’s always a race. People say it’s not a sprint, it’s a marathon, but I strongly disagree. It’s both, it’s always a sprint and then you need to be sustainable to make it a marathon.

C: And finally as one who’s won awards and really made the journey, what advice would you give other young entrepreneurs on how to build great disruptive businesses?

R: Think bold, always think big and achieve it no matter what people say. Be passionate, be obsessed, do it all. Know your rights and never, never, ever give up. Once you give up it becomes a habit and you don’t ever want that to happen. ## (News, analysis, and commentary.)

(Third party images, and content are provided under fair use guidelines.) 

Related Reports:

$1.1BillionDollarPreFabProjectRobbieAntonioRevolutionPreCrafttedHomesDailyBusinessNewsManufacturedModularPrefabHomeIndustryMHProNews

Robbie’s Revolution Precrafted’s $1.1 Billion-Dollar PreFab Project

 

ConfidentialNewsTipsOKTipsIreportMHNews@MHMSM-comGraphic

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Investors’ View of Manufactured Housing Industry Production & Retail – Cavco Industries (CVCO)

April 6th, 2018 Comments off

CavcoIndustriesInvestorsViewManufacturedHousingDailyBusinessNewsMHProNews

With the stock markets roiled by uncertainty sparked by political events, concerns over “a trade war” that’s been underway for decades, and a number of tech giants bruised over regulatory issues, smart money investors are in search of options.

 

FocusedTransformationGrowthCavcoIndustriesCVCOManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

While many investment opportunities can be found, perhaps among the highest ranking contrarian investment strategies would be manufactured housing production, retail, and development.

 

CavcoSnapshotManufacturedHousingIndustryDailyBusinessNewsMHProNews1

There are those who question some of Warren Buffett’s politics and business practices, but one principle he’s proven for years is that buying and operating a good company allows the investor to control their own destiny, instead of riding a roller coaster with the sometimes turbulent markets. Buffett is a buy and hold guy, saying “our favorite holding period is forever.” on good operations in business sectors that he says are easy to understand. Buffett has bet billions on Manufactured Housing, and Cavco Chairman Joe Stegmayer hails from years at Berkshire Hathaway owned Clayton Homes.

 

A Brief Note on the MH Community Sector

Before diving into this report, there is certainly an ongoing interest in manufactured home communities as one of the more appealing sectors in commercial real estate. Loan performance on manufactured home communities – even during the so-called Great Recession – was better than most.

Sun Communities Annual Data and Manufactured Housing Industry Investor Presentation Highlights

 

But the competition for communities has grown quite intense. Portfolios pros tell MHProNews that they are still doing community deals, but the super-bargains are harder to find than 5 years ago.

That said, with the correct relationships, the community sector still has strong appeal. A snapshot of a publicly traded industry giant – Sun Communities (SUI) is linked above.

 

CavcoCVCOAgeRestrictedResortCommunitiesManufacturedHomeIndustryDailyBusinessnewsMHProNews600

Cavco supplies homes to land lease manufactured home communities, as well as others who retail or rent manufactured housing.

 

Snapshot of the Logic of Investing in Affordable Housing

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

CapeCodStyleHomeManufacturedHousingIndustryDailyBusinessNewsMHProNews

Manufactured Housing “Top Ten Truths”

Some other hidden gems of manufactured housing are summed up in the following report, and the brief but potent insights in the video that follows.

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

 

 
MultiFamilyMultiStoryProjectsCavcoCVCOManufacturedModularPrefabHousingIndustryDailyBsuinessNewsMHProNews

 

Production, Retail and Development

Retailers, and some HUD Code manufactured home builders report they are supplying more homes going into various kinds of new developments.

CavcoCVCOCompanyHighlightsManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Among them are developments geared for rental housing. The returns on that, per sources to the Daily Business News, can be attractive. The cost of developing with manufactured homes can be lower and faster than conventional building of single or multifamily housing.

 

 

But perhaps the biggest gem hiding in plain sight is manufactured home production that’s tied to retail.

CVCOManufacturedHousingIndustryProfileManufacturedHousingIndustryDailyBusinessNewsMHProNews

There are several possible business models.  As a quick overview there are those HUD Code manufactured home builders which:

  • supply independents,
  • at least one builder that actively supports the establishment of new independent manufactured home retailers,
  • those producers whose operations are entirely vertical,
  • and those which include a mix of vertical and independent companies.

Clayton, Cavco and Champion – to their respective degrees – follow the latter pattern; selling to their own sales centers, as well as to independently owned dealers.

Skyline Corp, Champion Homebuilders Conference Call Presentation Facts, Figures, Forward-Looking Statements, Planned Merger Detail$

There seems to be an apparent variation between the data cited by Cavco, and that cited by Champion-Skyline during their conference call that discussed their pending merger.

ManufacturedHousingIndustryProfileAprox9MllionHouseholds22MillionAmericans9percentSingleFamilyHousingStock

Investor$, Manufactured Housing, and Proof of Concept

Cavco and Champion have each claimed to be larger than the other in market share. There are several possible explanations, but the Daily Business News merely notes that observation for now, and is taking no position at this time in that intra-MHI member data dispute.

ResortRentalModelManufacturedHousingIndustryDailyBUsinessNewsMHProNEws

From Cavco’s (CVCO) Investor Relations Page

Cavco is a leading designer and builder of systems-built structures including manufactured homes, modular homes, commercial buildings, park model RVs, and vacation cabins. We operate 20 manufacturing facilities across the nation, which build some of the most widely recognized brand names in the industry: Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, Fairmont Homes, Friendship Homes, Chariot Eagle and Lexington Homes. The company’s insurance group, Standard Casualty, offers a wide range of insurance products for manufactured home owners and its finance subsidiary, CountryPlace Mortgage, offers a variety of homebuyer financing options.

CavcoCVCOkitchenManufacturedHousingIndustryDailyBusinessNewsMHProNEws

As a corporation publicly traded on the NASDAQ Global Select Market (symbol CVCO), we have a commitment to our stockholders, our people, and our homebuyers to provide quality housing and exceptional service. In recognition of its innovation, customer service, and long term stability, Cavco Industries has been awarded the following accolades:

  • MHI Manufacturer of the Year, for seven consecutive years
  • Forbes Magazine 100 Best Managed Companies in the U.S.
  • Forbes Magazine America’s 100 Best Small Companies

CompellingMasterBedroomCavcoCVCOManufacturedHousingINdustryDailyBusinessNewsMHProNews

CavcoCVCOSystemsBuiltInFactoryModulesFittedTogetherManufacturedHousingINdustryDailyBUisnessNewsMHProNewsFactoryVsSiteBuildingLessWasteTheftCAVCOCVCOManufacturedHousingIndustryDailyBusinessNewsMHproNewsManufacturedHousingMarketDailyBusinessNewsMHProNews

We like some of the Skyline Champion and Sun Communities industry data presentation better than what Cavco provides, so the charts below are from information they’ve provided.

ManufacturedHomeShipmentTrendsPercentageNewHomeStartsSkylineChampionPowerPointMastheadBlogDailyBusinessNewsMHProNews

SunCommunitiesSUI-InvestorPage11ManufacturedHomeVsSingleFamilyHousingManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

SunCommunitiesSUI-InvestorPageComparetoMultiFamilyHousing10ManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

The industry – and investors – have to ask and answer the question, if manufactured homes are such an amazing value, why isn’t the industry doing better? It’s a question that investors and newcomers put to MHProNews.  Part of the answer can be found in the report linked below, which spotlights the Urban Institute’s asking and responding to the same question.

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

Last and not least is this report that looks at why a new post-production association is needed in manufactured housing.  This provides several clues as to why the industry isn’t performing better today.

Study Recommending New Manufactured Housing Association for Independent Retailers, Communities, Lenders, Others Released

Finally, a bit of history also helps. The manufactured home industry was far more vibrant and diverse in days gone by.  Understanding the past – something that Warren Buffett strongly believes in, plus understanding the present – can provide powerful insights as to what is possible in the future.

“Move, Open, Live” De Rose Industries & Senator Thom Tillis’ Mobile Home Comments

Appealing Manufactured Housing Institute (MHI) Marketing, Finance Booklet Reviewed

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Bloomberg, HousingWire, Realtor and Fox all suggest Manufactured Homes as Important Solution for Affordable Housing in America

The bottom line is that the right combination of capital committed to long-term thinking, that attracts a blend of industry veterans and new blood, and that is willing to buck the ruling oligarchy could dominate in manufactured housing.   “We Provide, You Decide.” ©  ## (News, analysis, and commentary.)

(Third party images are provided under fair use guidelines.)

Consulting, Marketing, Video, Recruiting, and Training Resources

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Drain Cleaning System for Manufactured Home Communities, Multi-Family Properties, Announced by Electric Eel

December 1st, 2017 Comments off
ElectricEeld5DrainCleaningSystemManufacturedHomeCommunitiesAKAMobileHomeParksElectricEelDailyBuisnessNewsMHProNews800

Electric Eel D5 drain cleaning system, MH Community, NY Times. All third party Images are provided under fair use guidelines.

Owners, managers, operators, and service personnel at manufactured home communities (a.k.a., “mobile home parks”), know the often-ongoing headaches caused by clogged drain lines.

Besides the hassles, there are the time delays, plus those ongoing expenses of having outside contractors come in to service those needs.

There are resident satisfaction issues too, when service delays cause manufactured home owner inconvenience.

With thousands of MHC properties built decades ago, it’s a widespread and growing need.

Springfield, Ohio based Electric Eel tells MHProNews in a release that they have developed a cost-effective solution for such problems.

It’s their Model D-5 Drain, Sewer Cleaning Machine, designed for Manufactured Home Communities (MHCs, a.k.a. Mobile Home Parks), as well as for other forms of Multi-Family properties.

The company says that their “Model D-5 combines professional quality and affordability in a continuous cable drum machine for cleaning 3” – 10” diameter lines up to 100 ft.”

The high-density polyethylene drum and belt guard will not rust or dent and holds up to 100 ft. of 3/4” diameter Tri-Max cable, the toughest cable in the industry which consists of certified, galvanized aircraft wire inner core, a protective plastic sheath to guard against rust and corrosion, and a tough, long-lasting outer layer of stress-relieved music-type wire for longer life,” said Electric Eel Mfg.

The firm has been in business since 1939, and is their products are made in the U.S.A.

To learn more, you can see their entire news release, linked here. Or click to the Electric Eel website, at this link here. ## (Product announcement, news, media release.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com

“Make MH Great Again” – Marty Lavin Exclusive

August 4th, 2017 Comments off

MakeMHGreatAgainMartyLavinManufacturedHousingIndustryCommentaryDailyBusinessNewsMHproNewsIt could prove to be one of the most controversial, witty, sarcastic, and challenging commentaries of the year about the state of the modestly growing manufactured housing industry.

The title MHI award-winning Marty Lavin has chosen isn’t “Make MH Great Again.” But that’s precisely what his unstated theme is.

Lavin looks at the facts.

He thoughtfully examines the industry’s “business model.”  Step by step, the actively retired veteran unpacks the present in light of the past that brought the industry to this stage.

The attorney and industry expert’s writings have long been of keen interest to investors, the GSEs, thousands of MH professionals, association leaders — and even the industry’s billionaires.

As his classic home in a posh Burlington neighborhood – and the fine three-level custom Italian vessel berthed in Miami reflect, Lavin’s years in the community, retail and finance sides of the manufactured home industry brought him significant success.

His points are not to be taken lightly.

FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

Lavin’s must-read views will be live on the MHProNews home page Sunday night, August 6, 2017.  His commentary will be joined by over 18 featured articles, including several other notable industry professionals.  Don’t miss it. ## (News, commentary, scheduling, announcements.)

Update: Marty’s article is live on the home page, at this link here.

(Image credits are as shown above.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News on MHProNews.com

January Manufactured Home Community Loans, 30 Million Dollars by Security Mortgage Group

February 10th, 2017 Comments off
GerryAnthonyDimarcoSecurityMortgage30MillionJanLoans-PostedManufacturedHomeCommunityIndustryDailyBusinessMHProNews

Photo credits, Security Mortgage, used here under fair use guidelines. Collage credits, MHProNews.com. For more information, click the photos above.

In a release to MHProNews, Security Mortgage Group’s Managing Director, Gerard D. DiMarco, Jr. informs the manufactured housing industry’s Daily Business News that the firm has secured 30 million dollars in lending for new and existing clients.

As regular readers of the Daily Business News know, Security Mortgage Group is a four-time recipient of the “Manufactured Home Community Lending Broker of the Year.”

For the loan types, properties and locations which are itemized for January 2017, click this link here.

For another recent report on other recent commercial loans secured by the firm, click here. ##

(Image credits are as shown above.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News on MHProNews.com.

Proposal to Keep Manufactured Housing Out Sent Back to Planning Commission

January 17th, 2017 Comments off
nimbycomicpostedmanufacturedhousingindustrydailybusinessnews-mhpronews

Nimby comic credit as shown, used here under fair use guidelines.

In another case of NIMBY (Not-In-My-Back-Yard), a South Carolina County Council is asking for more clarity.

The Aiken County Council has sent a proposed rezoning back to the planning commission to review alternate zoning of some or all of the area.

According to the Aiken Standard, last month the County Council passed the first of three readings on a proposed amendment to the Aiken County Official Zoning and Development District to rezone 362 tax parcels, or approximately 1,935 acres.

The Council decided this month to continue second reading on the ordinance until its Feb. 21 meeting to allow for review of alternate plans.

The reason that residents wanted to rezone the area? The potential for a large manufactured home community.

ProposaltoKeepManufacturedHousingOutSentBacktoPlanningCommissioncreditAikenStandard-postedtothedailybusinessnewsmhpronewsmhlivingnews

Stephen Strohminger. Credit: Aiken Standard.

The reason residents wanted to rezone the area is to keep mobile home parks [sic] out,” said Aiken County Planning Director Stephen Strohminger.

Residents in the area had reached out to former County Councilwoman LaWana McKenzie and District 3’s new representative Councilman Danny Feagin, concerned with the possibility of a large, manufactured home park.

They wanted some protection,” said Strohminger.

Strohminger shared that Residential Use Zoning (RD) limits the uses to single-family and multifamily residential, including manufactured homes but not manufactured home communities. It also included crops, bed and breakfast inns, day cares, and uses complimentary to residential such as parks, churches, elementary schools, utilities, and police/fire.

During the council meeting, Strohminger said Rural Development District (RUD) zoning allows for manufactured home communities.

ProposaltoKeepManufacturedHousingOutSentBacktoPlanningCommissioncreditAikenStandard2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Danny Feagin. Credit: Aiken Standard.

When asked how the residents would feel regarding potential zoning changes, Councilman Feagin provided an ominous answer.

As long as it keeps the mobile home parks [sic] out, I think the folks would be satisfied,” said Feagin.

 

Potential MH Impact 

As readers of the Daily Business News may be aware, South Carolina has the highest percentage of manufactured housing in the U.S., with nearly 19 percent of all housing in the state falling into the MH category.

edschafergovtaffairsmanufacturedhousinginstitutesouthcarolina-postedmanufacturedhousingindustrydailybusinessnews-mhpronews

Ed Schafer. Credit: MHISC.

The potential zoning actions by Aiken County could have far reaching impact.

For the last three or four years, the South Carolina association’s focus is to move beyond killing bad zoning proposals and working to reopen areas that have been closed to manufactured homes for many years,” said Ed Schafer, Government Affairs Director for the Manufactured Housing Institute of SC.

In some areas it’s been easy. Progressive planning officials in several towns have been very interested in using manufactured homes for ‘urban’ infill.

You can find the full commentary from Schafer and others on zoning linked here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Candidates, citizens talk rent control, manufactured home community issues at ice cream social

September 14th, 2016 Comments off
casagrandemobilehomeparksantamariaca-credittrulia-text-posteddailybusinessnews-mhpronews1

Casa Grande Mobile Home Park, Santa Maria, CA – photo credit, Trulia, text credit, MHProNews.


The Controversy
– two sides of rent control – are found in what looked to be a political event at an ice cream social.

It began when the North Santa Barbara County Manufactured Homeowners Team (NSBMHT) gave congressional, state legislature and city council candidates a chance to talk about their stance on major issues – including manufactured home communities – at an ice cream social on September 12, reports the Santa Maria Times.

The event, co-hosted by the Casa Grande Homeowners Association at the organization’s clubhouse, allowed politicians like Salud Carbajal, First District Santa Barbara County supervisor and Democratic candidate for the 24th Congressional District, the opportunity to share what he views as his longstanding history of support of manufactured homeowners to more than 60 attendees.

Carbajal mentioned the conversion protection ordinance passed in 2012 for manufactured homeowners in Santa Barbara County, and that he’s always favored the affordable manufactured homes and rent control ordinances that exist in the county.

saludcarbajal_santamariaca-credit-countyofsb-orgposteddailybusinessnews-mhpronews

Salud Carbajal, photo credit, CountyofOFSB.org

I believe manufactured homes should continue to have rent control,” Carbajal told the crowd. “Rent control can afford manufactured homeowners the security from that fear they are facing every day that someone is going to sell your park and not give you notice and worry about displacing you.”

hannah_beth_jackson_wikipedia-posteddailybusinessnews-mhpronews

Hannah Beth Jackson, photo credit, WIkipedia.

Nineteenth District California State seat Democratic incumbent Hannah-Beth Jackson was also in attendance. Jackson shared the legislation she helped pass that provides protection to mobile and manufactured home owners if a landowner tries to sell the land where their home is. If most of the land’s residents object to the sale, this legislation lets local government intervene and stop the transaction.

Housing is a right,” Jackson said at the event. “We are all entitled to a decent place to live. Mobile home ownership for many, many people is the last opportunity to own a home or stay off the streets.

Santa Maria incumbent mayor Alice M. Patino discussed the city’s current ordinances to help protect pre-HUD Code mobile home owners, manufactured home owners and community owners. While some developer could go through California and purchase MH communities for conversion to other uses, he or she would be stopped from doing so in Santa Maria, the mayor said. Patino expressed her desire to be re-elected as mayor to continue the work she and the council have started.

We have seen the economy take a downturn, but since that we have seen policies in the city of Santa Maria where we are encouraging businesses,” Patino told the crowd.

Perhaps Patino didn’t realize the economic and political irony of her statement?

alicepatino-centermayorsantamariaca-creditsantamariasun-posteddailybusinessnews-mhpronews

Santa Maria Mayor Alice Patino, center, at city meeting – credit, Santa Maria Sun.

Ice Cream Social, Politicos and Harming the Free Market

One of the challenges facing the manufactured housing industry in general, and manufactured home communities in this particular case, is how ignoring the laws of supply and demand – the operation of a free market – often harms the very affordability for which candidates’ advocate.

When unreasonable price controls are placed on articles of immediate consumption, like bread, for example, the bakers can simply refuse to continue to bake and sell it,” wrote Henry Hazlitt, in Economics in One Lesson, The Lesson Applied – What Rent Control Does. “A [bread] shortage becomes immediately obvious, and the politicians are compelled to raise the ceilings or repeal them.”

But housing is very durable,” stated Hazlitt. “It may take several years before tenants begin to feel the results of the discouragement to new building, and to ordinary maintenance and repair. It may take even longer before they realize that the scarcity and deterioration of housing is directly traceable to rent control.”

henryhazlitt-quoteeconomicsinonelessonmises-org-posteddailybusinessnews-mhpronews

Hazlitt photo credit, Mises.org, grahpic by MHProNews.

What Hazlitt described is at the heart of the good intentions gone astray that occurs so often in modern politics at the local, state and federal levels.

When it comes to manufactured home communities (MHCs), instead of Hazlitt’s example of bread makers not baking more bread – in the case of MHCs, it drives out new construction. That over time will tend to drive up the prices of existing communities.  Site fees for residents rise, as competition is decreased.  And thus the very people the rent control laws are intended to “help,” are in fact slowly, over time, harmed.

This in turn explains, in part, the lack of new MH communities being constructed. Why would investors risk the high costs involved in creating a community, the infill time needed to make a community profitable, if politicians later come in with rent control and make obtaining a profit difficult or impossible?

nimbyismdebunkingmythsmanufacturedhomecommunities-posteddailybusinessnews-mhpronews

Click here or the image above for the report on an example of NIMBY in action.

Another factor, of course, is NIMBY – not in my back yard – when it comes to the creation of affordable housing that features manufactured homes, as the recent story out of Texas linked here reflects.

samlandyonrentcontrolmanufacturedhomecommunitiesakamobilehomeparkssic-postedindustryvoicesmhpronews

For Sam Landy’s statement in full context, please click here or the image above. Image credit, MHProNews.

Back at the Ice Cream Social at Casa Grande Mobile Home Park Clubhouse in Santa Maria…

I have no problem with someone trying to make an honest return on their money but not at the expense of a very unique demographic in our community,” Cordero said at the event in regards to community owners who want to sell their properties.

Other Santa Maria City Council candidates who attended the event included former Santa Maria planning commissioner Michael Moats, businessman Hector Sanchez, Mary Hernandez (representing her husband candidate Ed Hernandez who couldn’t attend) and incumbent Terri Zuniga.

brad-nelms-coo-manufactured-homes-com-posted-daily-business-news-mhpronews-com

Brad Nelms, for full context, click his image above or here.

Speaking about a somewhat similar story on the opposite coast,  “…this news story out of Dover, DE is yet another example of blatant agenda and discrimination against our industry. More importantly, this is discrimination against affordable housing and the individuals who live in manufactured or pre-fabricated homes,” Brad Nelms of ManufacturedHomes.com told MHProNews.

If anything,” Nelms said, “this Dover zoning/MHC story is a case of officials harming their own constituents. Rent control is proven not to work, save to drive out more affordable housing over time.”

Nelms was echoing the point in Hazlitt’s economic principle in regards to rent control, as noted above. But that point stands in contrast to what the attendees at the ice cream social believe.

My record on the City Council shows I’m for affordable housing,” Zuniga said. “I have asked that large residential developers, whether they are multi-family developments or single-family developments, allocate a portion for affordable housing. I haven’t been successful yet, but I think that is critical.”

Why hasn’t Zuniga been successful?  Could it be that ignorning the law of supply and demand has thwarted the very thing he claims to support?

And so the political struggles and economic tensions over rent control and the spread of the affordable housing crisis and its impact on manufactured homes and land-lease communities continues. ##

(Update 9-14-2016 @ 3:36 PM ET – see the related letter to the editor from a respected, successful and well known MH Community CEO, linked here.)

(Editor’s Notes: the quote from Brad Nelms was taken from his recent commentary, Discrimination, Injustice against manufactured housing – a Call for Action by Industry Professionals, linked here. For the download of Hazlitt’s chapter on rent control, quoted above, click here.)

(Image Credits as shown.)

Joe_Dyton_DailyBusinessNews-MHProNews125x125-

Joe Dyton, for the Daily Business News, MHProNews.

Submitted by Joe Dyton to the Daily Business News, MHProNews.com.

Urbanist Alan Davies – On not trashing “Trailer Parks” (sic)

September 6th, 2016 Comments off
1930-1945LifeInTrailerParkFlordia-creditCrickeyUrbanist-postedDailyBusinessNews-MHProNews-

Editor’s note: “Massachests” is in the original.

Alan Davies, editor of The Urbanist on Crikey, has taken a unique look at U.S. “trailer parks” (sic). His provocative, yet witty, headline tees it up well, Should trailer parks be trashed?”

Davies notes the rather colorful view of “trailer parks – which he later identifies as “manufactured housing communities” (sic) – as places where “TV bad guys” – i.e.: criminals – are depicted as living.

But some of what Davies writes appear to be are clever rhetorical devices, and where his facts or nomenclature may error, his insights ought to be of keen interest to his Australian audience; and it could be to American MH professionals too.

Davies cites Alanah Semuels, Lisa Margonelli and Nolan Gray, and then notes “These writers make the point that trailer parks provide the largest source of unsubsidised affordable housing for households of modest means or on low incomes in the US.”

The key reason so many Americans choose to live in trailer parks,” writes Davies, “is they’re remarkably low-cost, requiring an all-up outlay on trailer and park site of between $300-$1,000 per month. They have other benefits too. They have an effective governance mechanism for managing services, facilities and relationships between residents; and they promote social interaction more effectively than other housing forms.”

Davies presses on with his pro-MH Communities case by quoting Nolan Gray’s work, “If you had 70% home plots/15% roads/15% shared amenities like parks and squares, 1000 sf plots, and 2.5 people per household, that works out to population density of 46,000 people per square mile — with one or two story construction! At this level of density, compared to about 9,000/mile for the denser Los Angeles suburb, you could easily have a lot of neat commercial stuff (bars, restaurants, shops, schools, etc.) within walking distance.”

AlanDaviesEditorUrbanistCrikey-creditTwitterPostedDailyBusinessNews-MHProNews-

Alan Davies photo credit, Twitter.

Davies elaborates by saying, “That’s around 180 persons per hectare. By way of comparison, new fringe suburban developments in Melbourne are around 16 persons per hectare and the NSW government says its new Waterloo redevelopment will be 220 persons per hectare…”

The major negatives,” Davies writes, “are a lower level of privacy and limited private indoor and outdoor space compared to detached houses (but not apartments). It’s also inevitable that some operators will be unscrupulous. That’s important because while some residents own their manufactured house, they mostly rent the site from the park manager. Another issue is finance to purchase a manufactured home – like any vehicle, it depreciates – is expensive.”

Here, manufactured home veterans in the U.S. know – and the Daily Business News must note – that less than half of manufactured homes are in communities, the majority are on privately owned land. The finance issue has been dealt with in depth on MHLivingNews, see the most recent article, linked here, or on the professional side by Triad Financial’s chairman and CEO, Don Glisson Jr.’s explained in the video embeded below.

Further, while depreciation can occur, it does so for the same reasons as in conventional housing, see the video report with an MH home owner and community leader, linked here.

This is an arena that MHLivingNews and MHProNews has editorially sounded off on, because with the proper approaches – which Australians and Americans alike could certainly implement – appreciation could become more common place.

While some hairs could be split, the thrust of the points made by Davies is that the proper use of manufactured housing and manufactured home communities could create advantages in affordable quality living for Australia.  His points are well laid out.  A similar reasoning can apply here in the U.S. too. ##

(Editor’s Note: For a recent report on manufactured housing in Australia – and an American connection – please click here.)

(Image credits are as shown above.)

l-a-tony-kovach-daily-business-news-mhpronews-

L. A. ‘Tony’ Kovach is the publisher of MHProNews.com and MHLivingNews.com.

(Editor’s note 2: with Matthew Silver taking some time off, L. A. “Tony” Kovach is filling in.  We are also doing ‘tryouts’ for an addition to the Daily Business News team, for example, see Joe Dyton’s report linked here).

Submitted by L. A. “Tony” Kovach, to the Daily Business News, MHProNews.com.

Will Hometown America and Gateway ally to Increase Manufactured Home Community Holdings?

August 23rd, 2016 Comments off

GatewayLifestylesHometownAmerica-Logos-postedMHProNews-Gateway Lifestyle, an Australian-based holder of factory-built retirement home communities, is exploring partnering with U.S.-based Hometown America in a venture that could reshape Australia’s emerging manufactured housing market.  The two firms may join forces for the pursuit of National Lifestyle Villages (NLV), Western Australia’s largest operator of ‘mobile home parks.’

As reported by The Australian, sources speculate the deal would entail Gateway acquiring NLV’s land holdings and project pipeline, while Hometown would obtain the company’s passive investment income stream – currently held by Blackstone, a U.S. private equity giant.

Blackstone has entertained a possible sell of their portfolio stake for a rumored $225 million, although official comment from their spokesperson described their status as not “actively seeking.”

The report underscores the reality of the increasingly international nature of the manufactured housing industry.  The big, recent Singapore-based GIC investment in Yes! Communities, or the Trump interests in Revolution modulars are other examples.

In comparison to the more mature MH industry in the U.S., Australia’s market is considered to be in its infancy stage.

GatewayLifestylechartGraphic-creditAustralian-postedDailyBusinessNewsMHProNews595x329

Graphic credits, Australian.

Hometown, which dedicated MHProNews domestic readers know is a larger MH Community operator, is said to be working to get Blackstone’s stake in NLV.  The Australian’s sources stated that “Gateway has considered acquiring NLV’s land bank and sizeable development pipeline, as part of a partnership with Hometown that would see the US company snapping up Blackstone’s passive investment in the portfolio’s income stream.”

U.S. powerhouse, Equity LifeStyle Properties (ELS), was also mentioned in their report – ELS is among the stocks tracked in the Daily Business News market report.

John Wood, founder and minority owner of NLV — says the land and development pipeline are 90 percent controlled by Navis Capital, a Malaysian-based private equity firm.  Wood likewise said he “has no plans to sell.”

MHProNews  has tracked the emerging Australian MH market, including the two stories linked below.

(Image/logo credits at top are the property of each respective operation.)

FrankGriffinDailyBusinessNewDBNwriterMHProNewsManufacturedHousingIndustryNews75x75

Frank Griffin, Daily Business News, MHProNews.

Article submitted by Frank Griffin for Daily Business News – MHProNews.