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Facebook Ad Changes Force Retailers to Adjust

Facebook Ad Changes

HUD Files Complaint, Prompts Facebook Ad Changes

Facebook is updating its advertising policies, which could have far-reaching effects for companies that buy ads on the social-media platform – including manufactured housing retailers.

On Aug. 21, Facebook announced that it would remove more than 5,000 ad targeting options “to help prevent misuse”. Removal of the targeted options is a way to prevent advertisers from excluding audiences based on attributes like ethnicity and religion, according to the announcement.

Facebook’s announcement came four days after the U.S. Department of Housing and Urban Development (HUD) lodged a formal complaint against Facebook for violating the Fair Housing Act by allowing landlords and home sellers to engage in housing discrimination.

What the HUD Complaint Against Facebook Says

According to HUD, Facebook enabled advertisers to control the ads specific users receive based on race, color, religion, sex, familial status, national origin, disability and location. Facebook allowed advertisers to “effectively limit housing options for these protected classes under the guise of ‘targeted advertising’,” the complaint states.

HUD alleged that Facebook violated the Fair Housing Act, partly by allowing housing ads to men or women on a selective basis. And avoiding display of ads to users interested in terms that include…

  • “assistance dog”Facebook Ad Changes
  • “mobility scooter”
  • “accessibility”
  • “deaf culture”
  • “child care”
  • “parenting”

Additionally, the complaint points to discrimination against users interested in a particular place of worship, religion or tenet. Also, for not showing ads to users interested in terms like “Latin America”, “Canada”, “Southeast Asia”, “China”, “Honduras” and “Somalia”. And for withholding ads for users who live in specific zip codes.

The Social Media Platform’s Response and Facebook Ad Changes

The Facebook announcement did not list any of the specific ad-targeting options that it would remove. It stated that, for more than a year now, Facebook has been requiring advertisers of housing, employment or credit services to certify their compliance with the platform’s non-discrimination policy. Gradually, Facebook will roll out that certification to all U.S. advertisers via its Ads Manager tool.

“Advertisers will be required to complete this certification in order to continue advertising on Facebook,” according to the announcement. “We’ve designed this … in consultation with outside experts to underscore the difference between acceptable ad targeting and ad discrimination.”

Fair Housing Complaint Against FacebookAccording to Rick Robinson, senior vice president of state and local affairs for the Manufactured Housing Institute (MHI), one of Facebook’s goals with the new rules is to prevent “online redlining” – targeting ads in a manner that would exclude protected classes of consumers.

“We expect to see more changes to the platform as the case continues,” Robinson said.

Robinson offered more perspective from MHI on the HUD/Facebook situation, along with some suggestions for best advertising practices.

Stay Nimble in Response to Facebook Ad Changes

So, what’s a manufactured-housing retailer who advertises on Facebook to make of the platform’s ever-changing and ambiguous rules?

Facebook Ad Changes
Gary Adamek, Fayette Country Homes

Gary Adamek, owner of Texas-based Fayette Country Homes, said his company had not yet responded to the latest Facebook announcement, but one of his three retail locations is already decreasing its dependence on Facebook ads – mainly because they are not as effective as they used to be.

The Fayette Country Homes store in Sealy, Texas, was the first of its locations to advertise on Facebook. Before long, the store was running large ad campaigns on the site, which caused a noticeable bump in customer traffic, Adamek said. He added, two other stores in Schulenburg and Huntsville eventually followed suit.

However, the boost in customer traffic at the Sealy store was brief. Just a couple of years ago, the store put about 85 percent of its advertising budget on Facebook ads. Today it dedicates about 30 percent of its budget toward the platform. The store is now concentrating most of its ad dollars on strategically located billboards, he said.

“I’m not sure that’s the right answer,” Adamek said, but Facebook “didn’t seem to bring people in like it used to, so we decided to start trying something else.”

Furthermore, Adamek said he is uncertain why Facebook-generated traffic slowed down at the Sealy location, but he has a theory.

“I chalk it up to everybody using Facebook for ads now,” he said. “It used to be special, but now it’s just run of the mill.”

Still, Facebook remains a big part of his company’s advertising mix. The other two locations use it more than ever, Adamek said.

How to Find Your Customer & Get Them the Home They Want

Find Your Customer
Michael Callaghan of Four Leaf Properties offers suggestions for pricing and advertising homes for communities.

MH Pro Provides Insight on How to Price Your Home and Find Your Customer

Michael Callaghan of Four Leaf Properties presented at the 27th International Networking Roundtable in Indianapolis to provide information on strategies that will help you find your customer. Or, better yet, how to find your “Alice”.

Yes, Callaghan and his colleagues developed a system of customer personas based on 1970s and ’80s screen characters – Maude, Alice, Roseanne and Edith for instance.

“This is real for us,” he said of the characters. “You of my sales people will call me and say ‘I’ve got a Roseanne, and she’s looking for…’”

If you want to bring your business to its greatest potential, you have to know who your customer before you can find your customer. If you build out personas, you’re certain to better understand your market and be able to satisfy wants and needs for their next home.

 

Pricing Homes

When you sell homes in a community, you have to understand there are a certain percentage of homes you will end up taking back to sell again. If you’re not priced fairly from the start, you might be doing yourself a great disservice down the line.

“It’s just the way the math works,” Callaghan said. “I shouldn’t be losing my shirt bringing in a new home for you, but I shouldn’t be raking you over the coals either.

“Get your pricing in line before the home arrives,” he added.

Getting the Right Website to Find Your Customer

The company or community website is the place to start for customer engagement. If youFind Your Customer have a less than intriguing website, advertising and social media campaigns will fall short. With campaigns abroad, you need to have a great place to point your customer for the close.

“You have to create an experience for them, get them to feel a little something about the community on that website,” Callaghan said.

Put the pricing out front on the website; don’t make your Alice wait. Get the home details and specifications in place, and use good photos and video. Use a great resident testimonial or other evidence that will help your customer find what they need.

Advertising to Find Your Customer

Craigslist and other general market listing sites, especially the free ones, might find you customer but they’re unlikely to find you the steady flow of the customers you want.

“We were basically chasing around at the bottom of the barrel wasting our time,” he said.

When his group became more serious about mapping their success, they got more focused with campaigns on Facebook and MHVillage, and made the most of their Google business listing.

“If people Google you and can’t find you, you don’t exist,” he said.

Find Your Customer Through Targeted Campaigns

Find Your Customer

Callaghan said Four Leaf recently has expended more than $700,000 on marketing campaigns. Flowing money to marketing is much needed, even if not to that degree.

Some of the digital campaigns Four Leaf has run this year carry messages like “Apartments Suck” and “Give Me Space”.

“Campaigns are not that hard,” Callaghan told the Roundtable attendees. “Come up with an idea and do it. It will energize your team and you will be amazed how much activity you get.”

You may find your customer, and you may even find your Alice.

Cavco’s Joe Stegmayer Kicks Off Roundtable with Remarks on Regulatory Relief in Washington

Joe Stegmayer during a presentation in Indianapolis in September 2018.

Stegmayer Plugs MHI’s Quality Representation on National Stage with Regulatory Relief in Washington

The 27th Annual International Networking Roundtable is underway in Indianapolis, headed

Regulatory Relief in Washington
George Allen, a longtime manufactured housing industry community owner and consultant, founded the Roundtable and introduces Joe Stegmayer.

off by Cavco Industries Chairman Joe Stegmayer, who lauded the Manufactured Housing Institute for its work in Washington, D.C.

Stegmayer also is chairman of the board for MHI. He said with limited membership and budget, MHI has been able to lobby and propagate positive change on par with other, much larger and more well-funded trade associations.

“We’ve made a lot of progress on laws and regulations that affect our industry,” he said. “We’ve had 100 meetings on Capitol Hill with legislators and their staffs. To think that MHI is getting this done is pretty amazing.”

Areas of Positive Change on Regulatory Relief in Washington

  • Turn-back of Dodd-Frank language that prohibited home sellers from mention of finance terms
  • Initiation of discussion and education leading to HUD top-down review of manufactured housing rules
  • Lobby against federal overreach on prohibitive regulations regarding frost-free foundations, garage and porch-ready homes, transport and install of French door systems
  • Continued work on opening chattel financing for manufactured homes, including secondary markets

With housing prices rapidly and continually rising, the surging demand from millennials and retirees, manufactured housing has presented itself as an answer to the housing crisis, if not “the answer”, he said.

“We’re affordable housing without the subsidies,” Stegmayer said. “Not a lot of people know that, and MHI, the RV/MH Hall of Fame are institutions that provide platforms to send this message.”

Regulatory Relief in Washington

Dodd-Frank Change is a Big One for Regulatory Relief

Until MHI’s lobby efforts took hold, retailers in all areas of the business — from street dealers to community operations — had a difficult time selling homes because federal law said they couldn’t talk about approximate loan payments and terms.

“I think that really tied the hands of home sellers,” Stegmayer said. “And it made the buyer leery of ‘why wouldn’t they tell me what my approximate loan payment would be?'”

27th International Networking Roundtable Boasts More Than 20 Speakers

Regulatory Relief in Washington
George Allen, a longtime manufactured housing industry community owner and consultant, founded the Roundtable.

George Allen’s 27th Annual International Networking Roundtable starts today in Indianapolis, at The Alexander hotel through Friday Sept. 7. The event includes more than 20 presentations from manufactured housing industry experts.

Topics range from finance options to marketing opportunities to property management 27th International Networking Roundtableissues.

Event Founder George Allen will greet attendees Thursday morning and introduce 2018 keynote speaker Joe Stegmayer, chairman of Cavco Industries and chairman of the board for both the Manufactured Housing Institute and the RV/MH Hall of Fame.

At 10:15 that same day, Mike Price from the Federal Housing Finance Agency will serve on a panel with Griffer Cotter and Michael Harn from Freddie Mac, as well as Jose Villarreal and Ben Navarro from Fannie Mae.

Who Goes to the International Networking Roundtable?

The more than 250 industry leaders anticipated in attendance at this year’s Roundtable will have the chance to meet new people and talk with old friends at the eight built-in networking sessions planned for the event.

The Roundtable continually draws community owners, CEOs, CFOs, investors, highly regarded analysts and consultants from across the country.

Energy is high in the industry, which is seeing resurgent home sales and high demand for community and village living.

Below are just a selection of the professional presentation being offered at the 27th International Networking Roundtable.

Wednesday, Sept. 5

  • 4 – 6 p.m. — “Art of the Deal”; Marketing Land Lease Communities led by Joanne Stevens, CCIM, and Tammy Fonk, CAIC
  • 6 – 8 p.m. —  Welcoming Reception for All (Bring business cards)  “Celebrating National Land Lease Community Week”!

Thursday, Sept. 6

  • 11-11:45 a.m. — “How to Buy, Sell & Seller-finance New Homes” on-site by Michael Callaghan & Lisa Lane of Four Leaf Properties
  •  1 – 1:45 p.m. — “How to Develop a New Land Lease Community” from Jamie Dougherty of Community Management Group
  • 3 – 3:45 p.m. — “Building America’s Homes Together” by Mark Yost & Phil Copeland of Skyline Champion Corporation.
  • 4 – 4:45 p.m. — “Compensation Guidelines for Property Managers” by Frank Bowman, MHM, Executive Director for the Illinois Mfd. Hsg. Association

Friday, Sept. 7

  • 11 a.m. – Noon  — “Writing Basics for Publication” from Patrick Revere of MHVillage and MHInsider magazine and blog
  • 1 – 2 p.m. — “New Technology = Tracking Underground Systems” by Brian King of Underground Infrastructure

For more information on the 27th Annual Networking Roundtable, go to https://mhv.mhvillage.com/2018-international-networking-roundtable/

FMHA Workforce Development Initiative Looks to Feed Industry Production

FMHA Workforce Development Initiative
FMHA is creating awareness and avenues for jobs in manufactured housing.

FMHA Workforce Development Initiative

 

The Goal of FMHA Workforce Development Initiative is to Meet High Demand for Manufactured Housing Through Dedicated Talent Recruitment

Demand for manufactured housing in many parts of the country, including Florida, outpaces supply, and the FMHA workforce development initiative looks to address a labor shortage that could improve home deliveries.

“Several Florida home builders have reported lengthy backlogs,” Florida Manufactured Housing Association Executive Director Jim Ayotte said.  “Some builders are forgoing sales because they are unable to complete homes in a manner that would satisfy any additional demand.”

Lengthy backlogs eliminate one of the industry’s important value propositions – speed to market. And this could have ramifications for the long-term growth of the industry.

Several factors have heightened manufactured housing demand, including escalating single family home prices, which are tied to the steady growth in need for workforce, millennial and retiree housing.

The demand for moderately-priced housing won’t wane any time soon, so the solution is to increase production capacity. The question is: how, and how quickly can it be done?

FMHA Workforce Development Initiative

Several things can be done to increase homebuilding capacity:
  • Open new factories
  • Expand existing factories and production
  • Added automation and other factory efficiencies
  • Increased skilled and semi-skilled labor

The introduction of new plants and more automated systems, including the use of robotics, is pricey and involves months if not years to develop.

More immediate impact is needed, and the Florida Manufactured Housing Association is taking the lead to attract more workers to the manufactured housing industry in Florida and south Georgia.

Ayotte said he anticipates the FMHA workforce development initiative will not only work for his members, but can serve as a model for other industry associations.

“There are no secrets when it comes to strategies for identifying, attracting and training qualified workers,” Ayotte said. “The real secret is having the discipline to follow through on a plan of action.”

The FMHA Workforce Development Initiative Task Force

FMHA launched its workforce development initiative in early 2018 by creating a Task Force of member volunteers. The Task Force was charged with identifying specific employment needs and creating strategies for communicating to young people why they should consider a career in manufactured housing. Task Force members have agreed to personally deliver the industry’s message to school administrators, career counselors and students.

Byron Stroud, director of community sales for Skyline Champion Corporation, is among the Task Force members.

FMHA Workforce Development Initiative
Byron Stroud from Skyline Champion Corporation serves on FMHA Work Force Development Task Force.

“The task force objective is in regard to the entire workforce in our industry. We want to develop a program to find, train, education and maintain our workforce,” Stroud said. “The first thing is to communicate in a way that cuts through the perceptions that people might have of the industry. We have to do a better job of helping people understand the value and importance of manufactured housing.

Stroud said multiple manufacturers are ready and willing to dedicate resources to the effort, and would like to see the effort expanded beyond Florida and south Georgia.

“We are considering setting up training centers right in our facilities and working with the industry to set up certification criteria within the trades for our industry, including electrical, framing, plumbing, welding and possibly even HVAC,” he said. “Our company has voiced this willingness and we think we can initiate good processes and programs that can be emulated and used in other markets.”

Recruitment Goes Beyond Home Building Trades

Recruiting goes beyond the trades, as well, Stroud said. In most of the same factories where homes are being built, there is a need for skilled team members to work in purchasing, IT, and drafting and design, for instance.

FMHA Workforce Development InitiativeFMHA and its task force also will be setting up job fairs, starting with a yet-to-be-announced location in Gainesville, where model homes will be set up. Task force members and other builders and retailers will be at the fair to show the homes and answer questions from prospective employees. The homes will remain on site for a month or more, and will be open to the public and community owners for tours and purchase.

The association staff is developing educational materials and creating a platform on social media and its website to connect prospective employees with interested employers. It conducted research on career and technical schools, employment centers and job fairs in proximity to each member manufacturing plant to enhance the likelihood of identifying and attracting qualified employees.

Facebook, Twitter and Instagram ads were developed to catch the attention of young people who are ready to choose a career path. Those who click the ad links arrive at the FMHA Employment Opportunity landing page, where all FMHA member manufacturers’ contact information is listed and linked directly to their websites.

After connecting employees to employers online, the next step was for potential candidates in high schools and tech schools to receive information in person, by a knowledgeable, engaging member of FMHA. A slideshow presentation has been used with counselors and teachers, as well as a full-color brochure aimed directly at young prospects.

The Value of ‘Hand-Built Homes’

FMHA Workforce Development Initiative
Hand Built Homes, a campaign on product awareness and workforce opportunities.

In 2017, FMHA created an image campaign, called “Hand-Built Homes”, to dispel misconceptions about this industry. The workforce development initiative, the Hand-Built campaign and the association’s research and on home quality in assessing storm damage to manufactured homes post-Irma all work in concert to raise the profile of manufactured housing.

FMHA’s workforce initiative Task Force members also will use a 3-minute video and brochure for supporting materials. A team of FMHA members has committed to take these tools on personal visits with students and educators in their locales. After a period of feedback from those visits, adjustments can be made, and new tools can be developed.

“Creating industry career paths that continue through generations ensures that as advanced building techniques occur, there will be enough skilled workers ready to implement those improvements,” Ayotte said. “Production can begin to fill the need for high-quality, affordable housing for Florida’s workforce and income-restricted homebuyers.”

As a state association, FMHA has the unique ability to drive the workforce development initiative because of existing relationships with state and local government officials, Florida’s school systems and forward-thinking industry leaders.

“By deploying our task force ‘ambassadors’ with effective tools, we enable them to make one-on-one connections in rooms full of eager minds,” Ayotte said. “And the blueprints FMHA has developed are not Florida-specific; our efforts to solve the industry worker shortage can  and should be used as a model throughout the country.”

The Louisville Show Warns of Unauthorized Solicitations for Attendee List

Unauthorized Solcitation
The 2019 Louisville Manufactured Housing Show is warning guests and interested parties to be on the lookout for an unauthorized solicitation in regard to the show attendee list.

Avoid Unauthorized Solicitations for Attendee List, Report Suspicious Activity

The 2019 Louisville Show, to be held Jan. 30-Feb 1., put out a warning that guests and interested parties should avoid a recently circulated unauthorized solicitation for sale of the event’s attendee list.

“We discovered an unauthorized solicitation email in regards to the Louisville Show. This email is offering an ‘Attendee List’,” show organizers said in a prepared statement. “As we have done in the past, we send out an up-to-date ‘retailer’ list… The Midwest Manufactured Housing Federation is the only ‘official and correct’ source for our attendee list.”

Ignore and delete emails from a “shelly” or other party with an email extension of @prodataleads. The show organizers indicated that a respondent to the solicitation could be putting their personal and digital information at risk.

“We are working on getting to the bottom of this,” the prepared statement read. “Please note that despite this solicitation, your information hasn’t been compromised through the show.” 

Attendees strongly urged to ignore “@prodataleads” solicitation

Anyone with questions about this information should call (770) 587-3350.

George Allen International Networking Roundtable One Week Away

International Networking Roundtable

Roundtable Returns to Indianapolis in its 27th Year

George Allen’s 27th International Networking Roundtable will take place in Indianapolis at The Alexander hotel Sept. 5-7, drawing a few hundred of the leading land-lease community owners and operators for a discussion on best practices and deal making.

Allen, who founded and runs Community Owners Business Alliance (COBA7), will greet attendees Thursday morning and give way to the 2018 keynote speaker, Joe Stegmayer, who is chairman of Cavco Industries and chairman of the board for both the Manufactured Housing Institute and the RV/MH Hall of Fame.

There is still time to register for the Roundtable, and book a room while event rates remain.

International Networking Roundtable

Two Days of Professional Programming from Industry Experts

In addition to the presentation by Stegmayer, there will be a pair of conversations on chattel capital, which will include information from Fannie Mae and Freddie Mac.

Spencer Roane, a champion of smaller to mid-size community owners who is a co-founder of the SECO annual symposium in Atlanta, will present on the development of a new chattel capital program for owners and operators.

Allen himself will present on the idea of preserving industry history though written stories that can be compiled into a memoir. MHVillage, a sponsor and presenter, also will provide information on writing for publication.

Attendees stand to gain a lot at this year’s International Networking Roundtable, with the industry on the rise and energy among its top contributors at an all-time high.

International Networking Roundtable

Manufactured Housing Managers Training Available on Wednesday

Indeed, even hard-to-impress industry leaders can appreciate that the 200 people Allen draws are owners, CEOs, CFOs and highly regarded analysts and consultants.

Katie Hauck and Kathy Taylor, who each own and operate 11 communities in the Midwest, will kick off the unofficial first day of the Roundtable on Wednesday Sept. 5 with the Manufactured Housing Manager Class.

International Networking Roundtable
Attendees to the 2017 Roundtable chat during check-in.

In addition, there will be more than a dozen other presentations ranging in topic from how to acquire or refinance a community, how to host a sales seminar, information on third party fee management and a talk on writing for publication

And for Allen himself, with those decades of experience and the way he weaves a story, the Roundtable is well worth the visit.

So, come to Indianapolis again this year for the George Allen International Networking Roundtable, grab a copy of the updated “Swan Song”, and let Allen tell you how he once, long ago, purchased a community for $400,000 and a couple years later sold it for $2.5 million in cash.

It’s one worth hearing.

It’s a Seller’s Market: 3 Things to Consider When You’re Ready to Sell Your Community

Sell Your Community
Photo Courtesy of EquityLifestyle Properties -

There has never been a better time to sell a mobile or manufactured home park than right now

Sell Your Community
Kevan Enger is a seller-focused broker for manufactured housing communities.

The need for affordable housing is at an all-time high as baby boomers retire in record numbers, home prices hit historic highs, and fewer affordable housing units are being supplied to the market for either the low-income or 55+ segments.

In addition, interest rates remain low, at least for the time being, and recent publicity about the opportunity mobile home parks provide — and the need they fill — has prompted increased demand across the country, and investors are taking notice.

While the demand for manufactured home properties as investments is rapidly growing, the supply is not. The inventory of available manufactured home parks is low and decreasing. The barriers for new entrants are high, and the path to approval and profitability for new developments can be long and difficult.

This high demand versus the supply/inventory dynamic is driving prices for mobile home communities higher than ever with record prices being achieved across the spectrum.

It’s a seller’s market

If you’ve been thinking about selling your community, now is the time

Whether you’re ready to retire or simply interested in moving into another property class, there has never been a better time to sell your mobile home park than now.

Regardless of the optimum market conditions, there are other factors every seller should consider.

As a seller-focused broker, the three questions I get asked most are:

  • How do I know how much my property is worth?
  • How do I get the highest sales price for my property?
  • How do I reduce my tax liability?

It’s important to note that a seller’s market provides owners the opportunity to get a great price, but it doesn’t guarantee it.

To leverage that opportunity and maximize your property’s sales price and proceeds, there are three things you must do:

  1. Increase the number of prospects and competition for your property
  2. Know how much your park is worth and how much to ask
  3. Mitigate your taxes

Let’s take a closer look at these three areas and how they can impact your bottom line.

Courtesy of EquityLifestyle Properties

How to Get the Best Price

While all sellers want the best market price, not all will get the best available market-driven price. Make sure you do by selling your property through a seller-focused broker, also known as a seller’s representative or listing agent.

As I mentioned earlier, I am a seller-focused broker, but I am not making the recommendation for my benefit. There are several reasons to work with a seller-focused broker, all of which can have a significant impact on your bottom line.

Leverage: There are buyer-focused brokers and seller-focused brokers. A buyer-focused broker, also known as a buyer’s agent or representative, does as their title implies. They represent the buyers and their interests first, not the seller’s interests. Their primary objective is to get their buyers the lowest possible price for the property at terms that are most beneficial to them. This is great for the buyer but not the seller. The result: Your property sells for less than it should.

A buyer’s agent also wants to market your property exclusively to their buyers so they can maximize their commission in what is called an off-market deal. Because off-market deals are offered only to a closed and small pool of potential buyers, competition for your property will be minimized. They are essentially taking your property off the current seller’s market.

In addition to being at a disadvantage by working with an agent whose primary goal is to get the buyer the best deal, off-market deals keep the price of your property artificially low, typically extend the length of time it takes to sell your property, and puts you at a disadvantage at the negotiating table. We’ve seen deals bounce around for 6 to 12 months while the comings and goings of potential buyers disturb and unsettle the tenant base, and as buyer’s agents try to make the deal work with their limited portfolio of prospects.

It’s a seller’s market, so don’t give up your leverage!

Your Advantage: The competitive environment is prompting buyers to approach owners/sellers directly. They are doing this for two reasons: To avoid paying full price for your property and to put themselves at an advantage.

While it may seem that negotiating directly with a potential buyer allows you greater control, it puts the unrepresented seller in an non-beneficial position by:

      • Reducing or eliminating competition for your property
      • Putting the burden of establishing the value and setting the price for the property on you
      • Taking time and money to draft the sales and other documents
      • Having to directly negotiate the deal without the market data and expertise that will support your obtaining the best price for the property
      • Ensuring you are protected on the path to closing

Your Interests: A seller-focused broker, also known as a seller’s agent or representative, puts the seller’s interest first. They will:

      • Broadly yet discreetly market your mobile home park to all relevant buyers (This is particularly important since the best buyers often come from outside the market/region.)
      • Create a competitive environment for your property
      • Conduct a proper value analysis on your property to set the right price
      • Shorten the time it takes to close on your deal
      • Have market comps and data available to support your property’s sales price
      • Increase the number of qualified offers you receive
      • Provide guidance and ensure you are properly and beneficially represented from beginning to end
      • Get the best price and terms for you, the seller

How to Find Out How Much Your Park Is Worth

Knowing how much your mobile home park is worth today, including its intrinsic and market value, and how much to ask, is essential. The analysis is extensive and has to be backed by market data and property variables such as:

  • Size of the property
  • Location
  • Occupancy rate
  • Cash flow
  • NOI
  • Private vs public utility connectivity
  • Park-owned homes vs lot rentals  
  • Amenities
  • Financing availability
  • Market conditions
  • Available on-market inventory of similar properties
  • The price/value of other comparable properties that sold in your market
  • The asking price of other on-market properties

The best way to arrive at the proper price is through a market analysis. A market analysis includes all of the considerations listed above to arrive at a market-driven price, while many appraisals can place more weight on the intrinsic value of a property. The difference is akin to looking backward through the rearview mirror with an property appraisal versus looking forward through the windshield with a market analysis.

Look for a seller-focused broker that will provide you with a no-obligation market analysis that shows you the cap rates of other properties that have sold in your market, as well as the potential cap rates for your property.

The desired cap rate dictates the purchase price and is one way to measure the efficiency of your sale. To find the cap rate, divide your property’s NOI by the Sales Price. To find your Sales Price, divide your NOI by the desired cap rate. For sellers, the lower the cap rate, the higher your return because it means the sales price was higher.

Cap Rate = NOI/Sales Price

A ½ point difference in the cap rate can mean millions of dollars less or more in your pocket.

How to Mitigate Your Taxes

Now that you’ve optimized your price and capital gains, mitigating your tax liability after the sale can and will have the most significant impact on your pocket.

1031 Exchanges

One of the most common ways owners reduce their tax liability is by using the provision in the Internal Revenue Code (IRC) Section 1031, which allows you to postpone paying tax on the gain if you reinvest the proceeds in a similar property as part of a qualifying like-kind exchange.

This is commonly called a 1031 Exchange.

Many retiring owners, or those who wish to take on investments with less intensive management and responsibilities, opt for triple-net (NNN properties) for their exchange. In triple-net properties, the tenant is responsible for the rent and utilities, and other typical expenses stipulated in a leasing agreement for the property type. The tenant also pays for and manages the property’s real estate taxes, building maintenance and insurance.

The arrangement frees the landlord from the typical responsibilities of an actively managed property.

In addition to the “passive investment” nature of NNN deals, other benefits include, restarting your property depreciation schedules, steady income especially from properties with corporate-backed and/or established tenants, built-in rental rate increases, and long-term stability.

Delaware Statutory Trust

A Delaware Statutory Trust, or DST, is a separate legal entity that allows smaller investors to own high-quality institutional level and professionally-managed commercial properties as individual owners and not partners. In addition, a DST is a passive investment with no active management responsibility for the investor, provides an extra layer of protection through non-recourse debt preference, and offers stability, among other benefits.

Be sure to discuss the pros and cons of 1031 Exchanges and DSTs with your tax advisor.

Making the decision to sell is not easy, but by aligning yourself with a broker that has your best interests in mind and ensuring you are fully informed on how to value your property, obtain the best price for it, and mitigate your tax liability, you will not only maximize your return for your years of hard work, you also will maximize your peace of mind.

Kevan Enger is a partner and manufactured housing director for Capstone MH. He specializes in helping mobile and manufactured home park property owners across the country successfully position, market and sell their properties to maximize returns. Capstone has seven offices in five states through Florida, the Southeast, Midwest and Mid-Atlantic regions.

Tiny House Industry Days Off to Strong Start

Tiny House Industry Days
Tiny House and Simple Living Jamboree Founder Darin Zaruba welcomes guests to the first-ever Tiny House Industry Days.

Hundreds Attend Jamboree for Tiny House Industry Days

More than 250 people were in attendance Thursday morning for the first ever tiny house industry days, a new element added to the annual Tiny House and Simple Living Jamboree, now in it’s fourth year.

The Travis County Exposition Center is the venue for the event, opening to the general public for Saturday and Sunday attendance.

Seminars and solo presentations by tiny house professionals — from builders to developers to members of the media — are being held in the banquet hall. Dozens of homes and park model RVs are being shown on the expo grounds and industry exhibitors are setting up shop in Luedcke Arena, all east of downtown Austin.

Jon Fontane, with event coordinator Reed Exhibitions, said tiny house industry days is off to a good start.

“We’ve had a steady audience of very engaged professionals sitting and listening, asking questions and participating in our conversation, even with the attraction of all the home set up outside,” he said. “We’ve had a good response from the media too, with all three area news networks coming out.”

Tiny House Industry Days
New Zealander Mark Beckingham came all the way to Austin for answers on tiny living.

Jamboree’s Tiny House Industry Days Draws International Audience

Mark Beckingham and his wife Sasha traveled from the Northland region of New Zealand specifically to attend the tiny house industry days in Austin. He said an aging population, rising home prices, and recent government crackdown on caravan community living has created a dire situation that cries for solutions.

He and his wife are looking at everything from AC units to land practices, not for commercialization but for best practices in effort to help family.

“I have 3 1/2 acres of land and easily could have some of my family come and stay,” Beckingham said. “But my mom can’t come live on my property? We really want to just understand what can be done and hopefully come home with some answers.”

Scott Wilson of ZeroSquared is from Alberta, Calgary. He is in Austin to show his tiny

Tiny House Industry Days
Scott Wilson of Zero Squared speaks with developers about the product they’ll use to fill a pending project in South Texas.

retreats, which utilizes expanding walls and deck space to get to 374-square-feet.

“What we’re doing is implementing a slide system that allows for simple transportation and added comfort when you reach your destination,” Wilsons said.

Tiny house industry days continues on Friday, and the Jamboree opens to the public for the weekend.

Tiny House Industry Days
The Aurora from ZeroSquared of Calgary.

Florida Manufactured Housing Association Annual Convention Less Than One Month Away

FMHA 2018 Annual Convention
Rosen Shingle Creek Resort, Orlando, Fla.

FMHA 2018 Annual Convention in Orlando, Fla., is Sept. 18-19 — Register Now!

In little less than a month hundreds of manufactured housing industry professionals will head to Orlando for the FMHA Annual Convention, one of the biggest state meetings in the industry.

Attendees at the FMHA 2018 Annual Convention can expect to find dozens of product and services representatives exhibiting at the show, as well as a host of solo presentations and panels on best practices in the manufactured housing industry.

FMHA 2018 Annual Convention Topics and Speakers Include:

The following three presentations here are only a selection of the 10 programming pieces on community management, leadership and disaster planning available at the FMHA 2018 Annual Convention.

  • Keynote Presentation: “The Passion of the Playmaker” from former New England Patriots All-Pro Brian Holloway. In what he calls the “Crown Jewel” of his motivational presentations, Holloway will (1) Get leaders “un-stuck” once and for all; (2) Uncover the untapped wealth, power and potential that lies harbored inside the flurry of business activity; (3) Provide solutions for “getting people onboard” once and for all; (4) Clearly define the pathway and momentum to get to the next level, and (5) Show that this mind-set is measured in decades.
  • Workshop: “Mistakes Managers Make” by President of The Housing Marketplace Joe Adams, who will talk about how managers of retail sales centers and communities must wear numerous hats to succeed in relationships with customers, residents and staff. Adams takes a positive and fun look at the common mistakes managers make when performing as a firefighter, accountant, teacher, counselor, architect and trustee.
  • Workshop: “Ask the Lawyers” will involve a panel of Florida’s most experienced industry attorneys discussing changes and trends in community regulation, local government activities and the latest legal cases. The panel will conclude with an audience Q&A.

FMHA 2018 Annual Convention

Additional Activities Planned for the FMHA 2018 Annual Convention in Orlando

The 2018 FMHA Annual Convention is pleased to have Sen. Wilton Simpson for its Awards Luncheon address on Wednesday. A long-time proponent of responsible regulatory practices for Florida business, Sen. Simpson specifically has supported the manufactured housing industry for many years. He represents District 10, composed of a portion of Pasco and all of Hernando and Citrus counties.

Also, the FMHA Board of Directors will meet the day prior to the opening of the convention. Manufactured housing professionals interested in serving on the board should contact FMHA Executive Director Jim Ayotte at (850) 907-9111.

Golf Outing Planned in Conjunction with FMHA Annual Convention

FMHA 2018 Annual Convention attendees can register for a golf outing at Shingle Creek Golf Club. The outing begins at 8 a.m. on Sept. 18, and registration is $75 per participant.

Convention registration is near full, and rooms for Sept. 18-19 can be booked while space remains at Rosen Shingle Creek.

Approximately 250 people will attend Florida’s largest gathering of manufactured housing professionals. Exhibitor booths will be open during the Tuesday night Welcome Reception and the following morning’s Continental Breakfast. The FMHA Welcome Reception includes open bar, a variety of catered foods and is among the best networking opportunities of the year.

 

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