Drone Mapping for Real Estate

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November 3, 2020

Drone Mapping Strategies Benefit Manufactured Housing Communities

By Seth Thompson, National Land Realty

Year to year, the evolution of computer technology can be staggering. In most cases, the advancements cause disruption— and opportunity—in every industry. In real estate, one such disruption is caused by drones, which have become an extremely effective tool for mapping and marketing property.

Drone mapping is replacing manned aerial flyovers, like Google Earth, a technology the industry has relied on for decades. More than taking pictures, videos, and plotting property boundaries on a map, drone mapping provides buyers and sellers with low-cost, high-resolution, and frequently updated imagery.

Drone Mapping for Manufactured Housing Communities

drone mapping white closeup camera Drones autonomously capture multiple overlapping images that are georeferenced and stitched together to create an orthomosaic, used just like any other layer in a GIS to serve as an accurate, high-resolution, updated aerial basemap.

Data such as boundary lines, trails, flood zones, and topographic contours can be laid on top of the drone imagery for mapping. Informative manufactured housing community data about utilities, damage, repair, and maintenance also be collected and plotted.

Photogrammetric software is available for drone mapping, such as Pix4D, DroneDeploy. Each software has its pros and cons, but all generate more than just imagery. A standard DJI drone and camera alone can create 3D meshes, digital elevation models, and measure plant health (via VARI algorithm). The data outputs can be used to generate topographic contours, identify troubled areas in agricultural fields, or even help determine the best location to build.

A small, helpful practice is adding the property boundaries and descriptive text on the drone photos. Software such as Photoshop or GIMP can aid with editing the raster photos themselves and adding vector boundaries and text.

Drone Pilot Certification

Drone pilots will tell you one of the best parts of drone mapping is being able to fly as you show a property to potential buyers, or discuss expansion projects with contractors.

It is even possible to buy and sell properties that have never been walked in person, because of the ability to survey the property through a live feed on a tablet from an airborne drone.

An FAA Part 107 certification is highly recommended for becoming a successful drone pilot and drone mapping. Many local and online schools offer preparation for the 60-question test. Drone Launch Academy online offers a pass guarantee or your money back.

Occasionally, you will need to coordinate with the airport before you fly, so it is always a clever idea to plan your flights ahead of time, particularly if a property or established community is near an airport or restricted airspace.

The Bottom Line About Drone Mapping

Modern drone technology is an excellent mapping tool that helps agents close deals more quickly. There are an exponential number of supplementary applications that provide a myriad of benefits to those in the broker industry. When all is said and done, drone mapping is a must-have for every listing in the brokerage industry.

Seth Thompson is a Realtor with National Land Realty licensed in Northwest Alabama and based out of the Tuscumbia (Ala.) office. The company’s proprietary video technology, Land Tour 360™, as well as its GIS land mapping system, LandBase™, is offered for free to the public. As a Land Professional, Thompson offers professional representation, integrity, and a keen depth of knowledge in land transactions.

YES Communities Starts New Podcast to Profile Resident Voices, Experiences

By

Patrick Revere

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November 2, 2020

YES Communities has launched a new podcast to tell the stories of residents and to share the dynamic advantages of living in a manufactured home community.

“What Living Means” is available at YES Communities website as well as through most commonly used podcasting platforms.

YES Communities Vice President of Marketing Vanessa Jasinski is the host of the show, which will provide a mix of authentic resident stories with discussions about particular experiences in raising children, engaging with the broader community, and finding ways to live affordably.

“This podcast is a way to look at manufactured home communities a little more closely from all angles, with both serious discussion and entertainment thrown in,” Jasinski said. “We work to make quality, affordable housing a reality for individuals and families across the United States—now we want to share those stories.”

Steven Schaub, YES Communities CEO, said “What Living Means” explores and brings to a wider audience the individual stories of the residents are powerful, and need to be heard in a new way. Guests on the show will share experiences from manufactured home communities nationwide, providing a variety of backgrounds and perspectives.

Some current topics being explored include the impact of afterschool programs for manufactured home community residents, the value of organized sports for children, and local resources that can provide family support and structure for individual residents.

“Our goal is to inform our listeners and recognize the individuals who are a part of YES Communities. We believe that both our residents and community team deserve more appreciation for the integral part they play both in their individual communities, as well as our larger YES Communities family,” Schaub said “We want to highlight the impactful but sometimes overlooked everyday actions that take place in our communities. We believe the podcast will allow a wider audience to join us in experiencing the extraordinary magic that lives in our family of communities.”

Gen Z Homebuyer Research Highlights Housing Needs

By

Patrick Revere

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October 30, 2020

Clayton Publishes New Generation Z Housing and Consumer Research Findings on Flexible Floor Plans, Sustainability Trends

Clayton, a national homebuilder of site-built and off-site built homes, recently conducted a study about the housing needs and preferences for the youngest generation of consumers, with supporting insights on Gen Z from US MONITOR syndicated research by Kantar™ on consumers’ attitudes and values.

Generation Z, or the Gen Z homebuyer, represents people born between 1997 to 2010. They are the most racially diverse generation in the U.S. and currently makeup 18% of the population, according to 2018 data from the U.S. Census Bureau.

With the oldest of Gen Z consumers now in their early 20s, many are starting to consider their future housing preferences. And the generation represents a powerful and outspoken group of customers, possessing a 2018 estimate of over $198 billion in collective consumer spending power, according to figures from the U.S. Bureau of Labor Statistics and Bureau of Economic Analysis.

“The U.S. housing industry is currently experiencing very low interest rates, high demand and inventory shortages during a time when families and individuals are seeking homeownership as a solution for comfort and security,” said Kevin Clayton, CEO of Clayton. “Gen Z, the youngest generation of home buyers, passionately understands the importance of choosing the right products and brands to serve their needs, and that also applies to choice in housing.”

4 Key Insights from Younger Buyers… they want

A Variety of Floor Plan Options

An internal Clayton research study, Home Built to Take Care of Me, Spring 2020, shows the household composition is shifting – there is a decrease of traditional nuclear family households. Therefore, buyers could seek flexible options outside of the traditional 3 bedroom, 2 bathroom layout.

Technology in the Home

Clayton also concluded in its study that 74% of those in their 20s say technology makes their home easier to live in, compared to 68% of all adults.

More Flex Spaces

More than 60% of homebuyers in their 20s report it is very important that their home can adapt to their changing lifestyles and life stages to come, according to the Clayton research study. For example, many Clayton off-site built homes come with floor plan options for work from home office spaces, creative areas or additional bedrooms.

Sustainability is Key

Kantar’s 2020 US MONITOR reports that if a product costs and performs the same, 71% of Gen Z buyers will always choose one that is more environmentally friendly, versus 56% of the rest of consumers. The optional EnergySmart™ Home Package upgrade is an example of a series of energy-efficient standards like additional insulation, sealed ductwork, and Low-E windows a home buyer can purchase with their new home.

“Gen Z is growing up in a world of volatility, unpredictability and untold lifestyle choices that create both anxiety and possibility – shaping values that will last a lifetime”, says Ann Clurman, partner and generations expert at Kantar. “They have grounded realistic expectations for themselves and are learning to value being financially responsible, circumspect and ethical when it comes to living their lives.”

Since COVID-19, America has entered an economic downturn and homebuyers are having to reconsider how they work, attend school, shop, and invest their spending money. Off-site built homes, which include manufactured, modular, and CrossMod™ homes, are providing new solutions for today’s youngest generation of homebuyers through a variety of design options, built-in technology, flexible floor plans, and energy efficiency home features – options Gen Z buyers want and expect in their homes.

Every Clayton Built® home comes with technology buyers crave such as, Kwikset® SmartKey Security™ to allow homeowners the ability to quickly reset their house keys and an ecobee® smart thermostat, which can seamlessly integrate with several smart home systems like Apple® HomeKit™ and Amazon® Alexa®. Additionally, flex spaces in the homes allow homeowners to choose how they wish to use specific spaces at different times – for example, a gaming room, craft space, guest bedroom, nursery, or home office.

Clayton off-site built homes are built with sustainability in mind. Every off-site built home is constructed inside of an ISO-14001 certified home building facility, where green building standards help regulate better recycling, energy usage, and landfill waste diversion.

To learn more about the Gen Z Home Buyer, please view Clayton’s helpful infographic on this generation’s preferences and trends

Relief from Cost of Lumber on the Horizon for Builders

By

Patrick Revere

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October 22, 2020

Manufactured home builders and buyers will continue to face COVID-related, historically high lumber costs, but may find seasonal relief with an autumn price drop created by the slowing of construction and home improvement in the county’s northern tier.

Cavco Industries President Bill Boor said the availability of lumber has loosened in recent weeks, and some lumber types in most markets have dropped in price.

“It’s nice to see some relief from the fast and huge run-up this year,” Boor said. “Where we were very concerned about getting lumber at any price a short while ago, availability has really improved.”

Lumber, and the greater than 160% increase in cost since COVID-related shutdowns began, has been the thorn in the side of manufactured home builders in all parts of the U.S.

The Cost of Lumber is ‘Eating Our Lunch’

Legacy Housing CEO Curtis Hodgson was quoted by the Wall Street Journal recently to have said during an investor conference “Lumber’s eating our lunch”.

The spring and summer’s dramatic increase in the cost of lumber is the result of low inventory in anticipation of a spring crash given COVID restrictions. While there was a short, sharp dip, the demand for lumber rose rapidly throughout the spring and summer as a move to the suburbs ensued aside massive homeowner push for expansions and improvements. Most building industry analysts and operators anticipated a longer and more disruptive lull in building and home buying.

Lumber mills and warehouses have spent much of the interim catching up.

Monthly home starts, for instance, dipped very briefly in the spring but were at pre-pandemic highs of better than 1.4 million again by July. Shiller’s Home Price Index followed a similar route before rising and leveling in the early fall.

Rich Rice, general manager for Adventure Homes, in Garrett, Ind., said lumber purchasing pressure has eased in recent weeks from the unprecedented heights.

“We have an unprecedented backlog, the demand for homes has not slowed at all for us during the pandemic,” Rice said. “Interest rates are at an all-time low with no changes in sight.

“Unprecedented, I can’t believe how many times I’ve used that word recently,” he added.

Rice said at the Garrett, Ind., facility, lumber costs make up about 24% of the value of the home.

Will Autumn Drop in Lumber Cost Impact HUD Home Builders?

Companies that build manufactured homes in cold-weather states may gain the most with high demand and an annual price reprieve.

Tim Hartzell is the director of pricing for Commodore Corporation, based in Indiana but with facilities from Pennsylvania to North Carolina.

“The run-up was hard to understand, and our home cost per house went up $5,000 to $8,000 in lumber alone,” Hartzell said.

He said plants in the south feel the effect of price changes about four weeks after the market trend is identified. In the midwest, it’s been more like eight weeks.

“And some parts of the industry iron that out, so we may not even see all of that run-up, in the plant, but it’s still a big number,” Hartzell said.

Timber futures are difficult to analyze much less to predict correctly, and the continuing backlog of home orders likely will require manufacturers to order lumber and other materials at full tilt regardless.

Boor said the cost of lumber typically stays relatively low into December before rising through January and into February. But given the market disruptions in 2020, annual market trends are anything given.

“We think about it a lot and make decisions based on the best information, but tend to not speculate on the direction of prices,” Boor said. “We will increase inventory targets if and when we are worried about actually being able to get a given material, but are less likely to base our decisions on pricing.”

Three Things We’ve Learned or Will Learn from COVID-19

By

John Ace Underwood

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October 21, 2020

Underwood sales lessons learned during COVID

john ace underwood sales lessons learned covid — John Ace Underwood

Depending on what part of the country you’re conducting business in, the COVID-19 pandemic seems to have had a fairly broad range of impact on your business climate. In some parts of the country, this virus has created havoc, in other areas it seems to have had a lesser impact. On a more personal level, for some this has proved to be tragic while for others it’s been an inconvenience.

Regardless of our individual circumstance, we all have to eventually seek out how the pandemic has permanently changed consumer behavior, and what we can all learn from this rather destructive and unfortunate life lesson.

Sales Lessons Learned from Operating During COVID

Perhaps the biggest impact this pandemic has had on our everyday life are the state-to-state orders requiring people to remain in their homes. For some it’s been a matter of weeks, others it’s extended into months of relative isolation. Bottom line, more people have become better at using their computer to investigate, research, shop, and buy the product or services they are considering.

Second, while many of them didn’t pull the trigger and actually BUY the product and services they were looking for, consumers certainly spent more time investigating and doing their homework. If you were in the market for a new boat before the pandemic, while you may have delayed buying a boat, the desire to own a boat and the opportunity to shop online didn’t go away.

So, what do we learn from this situation? Here are three things you have to learn and understand. These lessons are life lessons that are unlikely to go away.

1. Never Underestimate the Power of the Internet again!

Your website, along with your customer’s ability to FIND your website is more important than it was even three months ago. Your potential buyers have been searching for a community and researching homes via the internet for months. For months they have been visiting and revisiting websites in search of their “ideal” place. The question now is, did they spend more time on your site or your competitor’s site? If your website isn’t generating more leads than you need to sell all of the homes and lease all of the spaces you have available, the answer is they were spending more time on someone else’s site. That needs to be fixed.

2. Never underestimate the Power of Immediacy and Frequency

Immediacy refers to how quickly you respond to an inquiry and frequency refers to how often you try to reach out to the prospective customer. In your business, if you don’t know, you already have a problem. Immediacy, in today’s world, is measured in minutes, not weeks, days, or even hours. Frequency requires not one or two attempts, but something closer to the double digits, six of which need to be in the first 48 hours. Let me also suggest that without an effective Customer Relationship Management (CRM) system this will be impossible to measure. And that which you cannot measure, you cannot improve.

3. Never Underestimate the Power of a Personal Relationship!

The person who builds a personal (as opposed to a business) relationship with the prospective buyer first almost always wins. This is being proven over and over again. While technology may give the potential customer quicker access to a world of information, it is also a world of autoresponders, automatically generated e-mails, impersonal contacts, and emotional emptiness. Finding a community or a home is as much an emotional decision as it is financial. If not more so. The sooner you can reach out to the potential customer in a personal manner, and a personal relationship is built, the more likely that prospective customer will be sitting in front of your desk instead of spending time with your competitor.

So, there you have it. These are three powerful lessons that will either be learned from COVID-19 or they will be confirmed by COVID-19.

Either way, implement these lessons into your business and you will be handsomely rewarded. Failing to do so will likely have a far greater impact on your bottom line than you would ever care to admit.

Hollywood Backlot Homes Makes Good Use of Opportunity Zone

By

Patrick Revere

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October 13, 2020

opportunity zone hollywood backlot homes

New Manufactured Home Community in North Hollywood

manufactured home community opportunity zone — Hollywood Backlot Homes is being developed in one of California’s more than 800 approved opportunity zones.

A new community called Hollywood Backlot Homes leveraged federal Opportunity Zone funding to offer single to three-bedroom homes for residents to get “the neighborhood you’re looking for at the price you want”.

Opportunity Zones have been in existence since April 9, 2018. They allow investors and developers in any of the 8,700 designated areas across the country to defer capital gains and net 1231 gains through 2026. Deferred gains must be put in a Qualified Opportunity Fund and reinvested in the property within a reasonable amount of time.

Additionally, Opportunity Zones offer a 10% to 15% federal tax exemption on those gains if the developer or investor maintains ownership of the property for three to five years, respectively.

Hollywood Backlot Homes is developed in a zone in North Hollywood, one of 879 “distressed” areas within California alone. Multi-Opp, LLC, the development company for the property, received a $36 million bridge loan from 3650 REIT for the acquisition and redevelopment of the 10-acre manufactured home community aimed at fulfilling the demand for attainable housing in Los Angeles.

There are Opportunity Zones in each of the 50 U.S. states, as well as in Washington, D.C. and U.S. territories. Each can nominate underutilized or distressed tracts of land for the federal designation. An Opportunity Zone map with property listings and frequently asked questions can be found on the IRS website.

Community Named to Celebrate Nearby Film Studios

opportunity zone affordable housing — New factory-built homes for rent in a new development that uses Opportunity Zone incentives.

North Hollywood’s association with the film studios and production inspired the “backlot” name. Hollywood Backlot Homes is a rental community with 140 HUD-code homes marketed as luxury apartments. Amenities include a gated entry, outdoor pool, clubhouse, gym, gaming center, dog run, grill pavilion, and outdoor lounge.

Monthly rental pricing for the homes ranges from $1,800 to $2,495.

The community’s attainable price points relative to the area will allow renters to enjoy the privacy and extra space of a detached single-family home. The community currently is in development with new amenities and homes.

Multi-Opp, LLC Co-founder Mauricio Oberfeld said the all rental concept in an identified zone is the perfect match.

“We believe this project embodies the true goal of the Opportunity Zone legislation, to encourage investment, housing, and job creation,” Oberfeld said. “When we discovered the Hollywood Backlot Homes property, we immediately realized it would be the perfect property to launch our detached multifamily rental concept, where renters can enjoy all the benefits of a class A multifamily asset while living in a detached residential environment with attainable rents.”

The U.S. Economic Development Administration and Opportunity Zones

The EDA offers funding through competitive grants to foster job creation and attract private investment to support development in economically distressed areas of the United States.

The administration encourages its economic development partners to think of Opportunity Zone investment as “a new arrow in the quiver” to not only enhance ROI for business interests, but also to encourage the public/private partnerships needed to drive private investment to distressed areas.

Emphasis on Opportunity

In FY18, EDA issued a Notice of Funding Opportunity that made Opportunity Zones eligible for funding from EDA, through its special needs category, even if the area would not meet EDA’s economic distress criteria.
In June 2019, EDA added Opportunity Zones as one of its five Investment Priorities to help significantly increase the number of catalytic Opportunity Zone-related projects we can fund.
As part of the White House Opportunity and Revitalization Council (WHORC), EDA provides an overview of our role in the initiative at Opportunity Zone roundtables that are bringing together local elected officials, business leaders, community groups, and others across the country.

Datacomp Publishes October JLT Manufactured Home Community Reports for Six Midwest States

By

Patrick Revere

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October 8, 2020

Datacomp communities in illinois JLT Oct 2020

Datacomp has published its October 2020 JLT Reports for mobile home rent comps, occupancy, and other vital data from manufactured home communities in Illinois, Indiana, Kansas, Kentucky, Missouri, and Wisconsin.

JLT Market Reports provide detailed research and information on communities in 185 housing markets throughout the United States. These include the latest rent trends and statistics, marketing programs, and a variety of other useful management insights.

Datacomp maintains and provides the JLT Market Reports and is the nation’s #1 provider of market data for the manufactured housing industry. JLT Market Reports are recognized as the industry standard for manufactured home community market analysis.

The October 2020 manufactured housing market data published in JLT Market Reports for the six states include information from 13 markets on 317 “All ages” and “55+” manufactured home communities.

Altogether, the reports from the six states’ manufactured home communities include data representations for 80,243 homesites.

Regional Trends in Manufactured Housing Community Rent

Midwest region manufactured home communities show a year-over-year 5.4% increase in rent for retirement communities and a 3.6% increase for all-ages communities.
Midwest region manufactured home communities show a year-over-year 1.2% increase in occupancy for retirement communities and a 1.4% increase for all-ages communities.

“Within the 13 manufactured home community reports published in October 2020, one area shows a decrease in occupancy, and one other market had a small year-over-year dip in average rent,” Datacomp Co-President and Chief Business Development Officer Darren Krolewski said. “Also among the October JLT reports is a new publication in Kentucky for the Lexington and Fayette area, with nine new communities and more than 2,000 homesites represented.”

What’s in JLT Market Reports?

Each JLT manufactured home community rent and occupancy report from Datacomp has detailed information about investment grade communities in the major markets. The detailed information includes:

Number of homesites
Occupancy rates
Average community rents, and increases
Community amenities
Vacant lots
Repossessed and inventory homes, and much more

JLT Market Reports also include management insights that rank communities by the number of homesites, occupancy rates, and highest to lowest rents. Established reports show trends in each market with a comparison of October 2020 rents and occupancy rates to October 2019, as well as a historical recap of rents and occupancy from 1996 to the present date in most markets.

The October 2020 JLT Market Reports for Illinois, Indiana, Kansas, Kentucky, Missouri, and Wisconsin manufactured home communities are available for purchase and immediate download online at the Datacomp JLT Market Report website, or they may be ordered by phone in electronic or printed editions at (800) 588-5426.

Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed business decisions.

Patrick Industries: A Decade to Remember

By

Patrick Revere

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October 5, 2020

Patrick Industries a decade to remember woodshop — Patrick Industries is an Elkhart, Ind.-based supplier to the manufactured housing industry.

In September of 2010, Elkhart, Ind.-based Patrick Industries was a 50-year-old company with a stellar reputation for manufacturing and distributing a long list of building products and materials to multiple industries including manufactured housing.

The company had enjoyed slow, steady growth. Like nearly every other industry and sector, the Great Recession took a toll. Patrick Industries survived, and it was staring in the face of a grand resurgence in RV and recreational boating, as well as a doubling of the manufactured housing industry.

Trading on the NASDAQ 10 years ago, investors picked up PATK shares for 94 cents apiece. Those same shares today are valued in the neighborhood of $64, growth of more than 4,600%. In the ’10s, Patrick Industries took its place in the eyes of Wall Street among the better-known decade darlings like Amazon, Tesla, Netflix, and Dominoes.

An investor who put $4,000 into Patrick Industries 10 years ago would have made $270,000 on that investment alone. During that time the company grew to more than 8,000 employees, acquired more than 40 businesses, and reached annual sales of $2.3 billion.

Still, there have been few headlines of Patrick Industries’ remarkable success, partially because investors and those who cover the Street focus on “large caps”, companies that start at $10 billion or better. A decade ago, PATK was a “small cap” at $22.3 million. By 2020 that valuation hit $1.2 billion. As the Elkhart company was powering through 4,600% growth the entirety of the S&P 500 increased 200% in the market surge.

It certainly was a decade to remember.

Elkhart Executives Maintain Growth Focus

The Elkhart executives, Todd Cleveland and Andy Nemeth, who led Patrick Industries through the phenomenal decade of growth have preferred and likely benefited from the low-profile success.

In remarks during an earnings announcement and investor call at the close of the decade, Nemeth spoke of the quarter and the strong annual results with nary a word about the successes of previous years.

“We are pleased with our fourth quarter and full-year performance, especially in light of the volatility experienced in all of our primary markets,” Nemeth stated. “Our team’s efforts reflect tremendous focus on executing on strategic initiatives across all of our end markets, driving operational efficiencies and cost reductions to optimize and position our cost structure for 2020, leveraging synergies from new acquisitions and across our business units, and delivering market share gains. While our leisure lifestyle markets, comprised of RV and marine, continued to feel the impact of reductions in wholesale unit production levels to better align with retail demand, our housing and industrial markets exhibited positive momentum as we finished 2019.”

True, RV demand began to level as manufactured housing output increased nine out of the 10 years. Within Patrick Industries’ business mix, manufactured housing contributes on a recent annual average about 17 percent to corporate revenue.

How Patrick Industries Handled the COVID-19 Shutdowns

It certainly looked as though the only thing that could slow down the Elkhart company’s growth would be a global pandemic. When COVID-19 precautions began rolling out in mid-March, production slowed and stock tumbled to $19.43 per share in mid-March. It took a matter of weeks to double its value and has been trading above $60 again since mid-July.

Patrick Industries a decade to remember RV industry “We are pleased with our operating and financial performance during the second quarter and the tremendous flexibility and adaptability of our team as we navigated significant uncertainty and production shutdowns in both our leisure lifestyle and housing and industrial markets,” Nemeth said. “In particular, the RV industry experienced a five-week production shutdown, while various marine OEMs had production shutdowns ranging from one to five weeks. Our team took quick, disciplined, and focused actions to reduce our fixed cost structure to align with our revenue stream starting at the end of the first quarter and during the second quarter.”

Patrick Industries was able to avoid potential harm from COVID-19 measures and worked toward solidifying its operations to address ongoing uncertainty related to the pandemic, Nemeth said.

Again, rising demand in all major markets buoyed the company from its short-lived pandemic dip. In the latter half of the second quarter, buyers looked at recreational vehicles and boating as safe alternatives to flying. And the manufactured housing market rose to near-2019 levels, largely with consumers either looking to downsize or move from apartments to single-family living.

“We expect this momentum to continue into the second half of 2020,” Nemeth said in a recent investor call. “Additionally, we believe that the continued resilience and subsequent surge in retail demand in these markets have further reduced dealer inventories from what we believe were already at a low point heading into the 2020 selling season.”

Select List of Patrick Industries Brand Names

Adorn hardwood doors
AIA Countertops
Aluminum Metals
Baymont basins, enclosures, tilework
Cana Cabinetry
Collins & Company
Creative Wood Designs
Decor lamination and overlay
Dehco building materials
Frontline Manufacturing
Gustafson Lighting
LaSalle Bristol building products
LMI glass products
Middlebury Hardwood Products
Nickell Moulding Company
North American Forest Products
North American Moulding
Patrick Distribution
Praxis Group surfaces and furniture
Premier Concepts premium countertops
Quest Audio

Visit MHInsider for more manufactured housing news and information.

State of the Industry at SECO20

By

Patrick Revere

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October 1, 2020

state of the industry presentation seco20 — About 500 manufactured housing industry professionals are in attendance at SECO20, a virtual conference for community owners.

Manufactured Housing Institute President Mark Bowersox and longtime community owner and industry writer and educator George Allen provided the opportunity for 500 manufactured housing industry professionals to get a “State of the Industry” update during The SECO National Conference of Community Owners on Oct. 1.

SECO State of the Industry Guidance for Community Owners Sococo platform — SECO20 is a virtual conference being held on the Sococo platform.

Manufactured housing industry new home shipments have been a logistical challenge during materials and labor strains associated with the pandemic and COVID-19 restrictions. With that in mind, production has been good.

“2020 started out really strong and then COVID happened,” Bowersox said. “The industry responded very well. There’s the v-shaped recovery you’ve heard about, that’s very much what we experienced and that’s what you’re seeing here.”

“To this point right now our industry is about 100 homes off the pace from last year,” he said.

State of the Industry SECO20 MHI Slides shipments — Manufactured home shipments trend up from 2009. Slide images courtesy of MHI.

Beyond Manufactured Home Shipments

State of the Industry Mark Bowersox SECO20 — Mark Bowersox, of MHI.

Bowersox reminded his audience of community owners and operators, along with other factions of the industry, that growing the industry isn’t all about growing new home sales.

“It’s also about growing new land for land-lease communities, for our customers,” Bowersox said.

MHI works in Washington, D.C. to address national issues for the industry. It also partners with state associations to handle challenges on the state to local levels.

Allen said access to capital, particularly with a lack of secondary markets, continues to be among the industry’s top challenges. Still, land-lease communities provide a path to homeownership and a great value for those looking to buy a first home or to live more affordably.

Consolidation, Resident-Owned, Rental Business

George Allen State of the Industry SECO20 — George Allen, of EducateMHC.

Consolidation continues in the industry, Allen said. Resident-owned properties are an increasingly common model, as is the emphasis on park-owned homes for rent.

Community owners in all parts of the country are increasing the mix of rentals on a property, and some manufactured home communities are being designed or built for 100% rental homes. Allen cited the National Average Multi-Family Rental Rate, which shows a 2019 national average at $849 per month.

“This represents a roughly $50 incentive for living in a land-lease community,” Allen said.

During the last several months several surveys and reports have shown more stability among renters in manufactured housing versus apartment living.

“Virtually every land lease owner I’ve talked to during the last six months is impressed by how much residents have honored rental agreements,” Allen said.

The Future of Manufactured Housing

Bowersox said strength through the pandemic indicates the industry may be able to pick up where it left off when the crisis begins to wane. HUD Code reform plays into that, he said, and so does the support of HUD Secretary Ben Carson.

“He’s our chief storyteller,” Bowersox said of Secretary Carson. “There are many examples of him espousing the benefits of manufactured housing and we’re pleased to have him as an ally,” Bowersox said.

Visit MHInsider for more manufactured housing news and information on future manufactured housing industry events, trade shows, and conferences.

SECO20 in Full Swing with Professional Guidance for Community Owners

By

Patrick Revere

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September 30, 2020

Shawn Fuller Installation Guidance for Community Owners — Shawn Fuller, top right, from Tiny House Outlet, leads a SECO20 session guiding community owners on home delivery and installation.

The First-Ever Virtual SECO Conference Provides Platform for Industry Learning

A sold-out SECO20 held on a virtual platform is hosting 500 manufactured home community owners and other industry professionals for much-needed networking and professional guidance and sharing.

SECO, hosted each year for a decade in the Atlanta area, moved to virtual platform in partnership with MHVillage. The event opened with a welcome and thank you address by country music star and entrepreneur John Rich and moved into specialized programming on Manager Monday before kicking off in earnest Tuesday morning.

Tuesday at SECO20 from Installers to Attorneys

SECO provided guidance to community owners in a variety of ways during the first full day of programming at the annual event. There were presentations and panels for manufactured housing professionals that covered marketing principles, legal obligations, community valuation, sales strategies, and plenty more.

Andrew Keel from the Keel Team moderated a session on home delivery and installation hosted by Shawn Fuller of Tiny House Outlet of Lubbock, Texas, who offered up what to do and not to do in getting homes delivered and installed.

Find An Installer You Trust

A licensed and dependable installer is a person who is worth their weight in gold, especially during the limitations in the pipeline for products and services during the pandemic and COVID-19 restrictions.

“If you go out and try to learn every bit of information from every installation manual you’re going to waste a lot of time,” Fuller said. “You need to have someone who knows what they’re doing, but if they need to look something up, they can, they know where they need to go.”

In the state of Texas and in other locales, installers are able to operate without a license. However, it’s buyer beware. And an unlicensed contractor still would need to file an unlicensed installer form with the state or local governing entity.

virtual SECO Schedule of presenters and panelists — Community owners meet Sept. 28 – Oct. 2 in a virtual setting.

Foundation is Everything

“I’ve seen installers take not great homes and put them on really good foundations and they will last a long, long time. I’ve seen ponding or negative drainage under any kind of home and it’s not going to work out,” Fuller asserted.

Know the number of piers you need for a given home. Each pier can hold about 8,000 pounds and with the proper array of piers, there’s no more than 3,500 pounds on each one of those piers even if there’s a greater than a 6-foot span between piers.

And, to this end, Fuller defended the installation manual as a resource when needed.

“A lot of people don’t know that there is an installation manual in every home, there has to be, it’s required,” he said. “Open up a few drawers, find one of those things and take some time to read it. Pick a lazy Saturday or a rainy day and just take some time to give it a look.”

Make sure your cap is level with or in the topsoil, and that there are enough bolts to secure the arm between piers, regardless of whether they are 6 or 8 feet apart.

“In my experience, that’s the number one failing inspectors I know see in the field,” Fuller said.

And be aware, Fuller said, if you have to replace one pier, you need to get a new inspection, which means the entire setup needs to meet code.

Think Foundation, Consider the Pan

A pan section sets into the ground under a home and ties to each side of the structure so when the wind blows high from any direction, it digs in and stabilizes the entire structure.

Texas Tech University did a manufactured home experiment with a C-130 transporter jet plane for 15 minutes and couldn’t move the house.

“It because they had a pan system,” Fuller said. “The only thing they were able to do was to move some of the shingles and some fascia, and they weren’t able to do what they wanted to do, which was roll the house over.”

Give Added Space for Trees

The rules vary by state and locale, but it’s important to know what type of trees you have and how they root for water.

“Most people will say you want 15-foot clearance, but Sean says 25-30 feet,” Fuller told the audience, referring to himself. “We have elm trees out here in Lubbock, Texas, and some people call them shrub trees. We call them shade trees, but their roots will go about as far as they need to go to get a source of water.”

Recycle Odd or Outdated Parts

Set tires and axles aside, for instance, from installed homes for a recycler. It may seem an easy thing to pass on, but if you value you bottom line, pad it to whatever degree you can.

“They will come to you pick that stuff up and give you a receipt and cash,” Fuller said about a metals and materials recycler. “There’s a lot of nickels in that picture.”

The installer shouldn’t get paid until after the inspection clears

Tie Downs for Every Home

“Every home has to have tie downs,” Fuller said in answering a question during the session’s Q&A. “Whatever you’re building it’s hard to find guys to do hard labor. You may have to use a little bit of this smile you’ve got. It may not be a fun job, but buy pizza for the boys that day. The good guys will come out and help with tie-downs and whatever else is needed.

“If it’s in your park you should tie it down,” he said. “If it’s a tiny home, or a park model, tie it down. If it’s an RV, if you have those in your park, I will give that one to you.”

But maybe tie it down.

Keep Records, Documentation, Contracts

There are records on the home that must be kept, but community owners also should keep records and documentation for everyone who touched that house.

“When the wolves come and knock on the door, you can say here is all of my documentation,” Fuller said.

Visit MHInsider for more manufactured housing news and information on future manufactured housing industry events, trade shows, and conferences.

Drone Mapping Strategies Benefit Manufactured Housing Communities

By Seth Thompson, National Land Realty

Drone Mapping for Manufactured Housing Communities

Drone Pilot Certification

The Bottom Line About Drone Mapping

Clayton Publishes New Generation Z Housing and Consumer Research Findings on Flexible Floor Plans, Sustainability Trends

A Variety of Floor Plan Options

Technology in the Home

More Flex Spaces

Sustainability is Key

The Cost of Lumber is ‘Eating Our Lunch’

Will Autumn Drop in Lumber Cost Impact HUD Home Builders?

Sales Lessons Learned from Operating During COVID

1. Never Underestimate the Power of the Internet again!

2. Never underestimate the Power of Immediacy and Frequency

3. Never Underestimate the Power of a Personal Relationship!

New Manufactured Home Community in North Hollywood

Community Named to Celebrate Nearby Film Studios

The U.S. Economic Development Administration and Opportunity Zones

Emphasis on Opportunity

Regional Trends in Manufactured Housing Community Rent

What’s in JLT Market Reports?

Elkhart Executives Maintain Growth Focus

How Patrick Industries Handled the COVID-19 Shutdowns

Select List of Patrick Industries Brand Names

Beyond Manufactured Home Shipments

Consolidation, Resident-Owned, Rental Business

The Future of Manufactured Housing

The First-Ever Virtual SECO Conference Provides Platform for Industry Learning

Tuesday at SECO20 from Installers to Attorneys

Find An Installer You Trust

Foundation is Everything

Think Foundation, Consider the Pan

Give Added Space for Trees

Recycle Odd or Outdated Parts

Tie Downs for Every Home

Keep Records, Documentation, Contracts

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