As a result of the Dodd-Frank Act, federal regulations now require lenders to provide buyers of new, financed manufactured homes a valuation disclosure when a home-only transaction meets certain criteria and is defined as an HPML, or Higher-Priced Mortgage Loan.
Fortunately, our friends at Datacomp have developed a valuation product that is quick, easy and intended to fulfill these requirements. Not only is it an important compliance resource for lenders, it can also be a valuable sales tool for manufactured home retailers and communities.
What is the MSRV report?
The Datacomp MSRV, or Market Suggested Retail Value, is a valuation report that is intended to fulfill the HPML appraisal rules (12.CFR 1026.35) for new manufactured homes. Based on Datacomp’s trusted platform for accurate, market-based valuations, the MSRV establishes an independent, local retail value for a new home based on actual market sales.
Why would I need an MSRV report?
If you are a lender, a valuation disclosure is required to be provided to the client three days prior to closing when a new, home-only transaction meets certain requirements to be considered an HPML.
As a retailer or community, this disclosure requirement is handled by your lender as part of the financing documents. However, Datacomp also offers a pre-sale MSRV certificate designed as a sales tool for retailer and communities.
Many retailers display a pre-sale MSRV in the home to show value to the customer. Also, it gives buyers confidence in the selling price of the home. The report provides insight to the value the buyer will receive from the lender. And it introduces the concept of a valuation to the buyer, so it is a non-event when it happens.
How is value determined?
The Datacomp MSRV uses a market approach based on comparable, new home sales transactions. Consistent retail values are provided through automated decision-support tools and appraiser-reviewed for accuracy and reliability.
How can I order an MSRV report?
Whether you are a lender, or a retailer, you can order the appropriate MSRV report from the Datacomp website. From this website, you can order the MSRV with your Datacomp account, as a guest user or you can download an order form that you can fax to the office.
Datacomp also offers a number of other valuable reports on its website, as well as an experienced customer service team to assist with any questions!
Maybe it’s the heat getting to us, or these adorable puppies. Either way, we are giving you $5 Promo Credit for your next listing upgrade with MHVillage!
To apply, enter this AdCode when you select your listing package.
If you have any questions, or if you would like one of our representatives to walk you through the process, please give us a call 1 (800) 397-2158.
New Manufactured Home Community Set for Central East Florida
The effort it takes to build something new often is viewed as a source of frustration.
However, a new manufactured home community, like one being developed in Ormond Beach, Fla., with approval to clear and level, start utilities and lay out a site plan certainly is cause for celebration.
The development of a new manufactured home community in Florida last occurred about 15 years ago. The challenges can include a difficult economy, zoning hurdles, investment barriers and the negative perception of a new manufactured home community.
New Development Data
What is the Trend for New MH Communities?
About 310 new manufactured home communities were built nationwide since 2002. Note the 2,645 new communities during the prior 15 years, including 395 communities built during 1986-87 alone. Comparatively, it’s easy to understand why affordable housing advocates are concerned.
Ormond Beach Commissioner Dwight Selby serves Zone 1 where the new community is located. Additionally, he serves as treasurer for the Florida Manufactured Housing Association and co-owns the nearby Shady Oaks manufactured home community.
“I think it’s important to stay focused on providing housing for all kinds of income, not just the rich and uber rich,” Selby said. “We have a huge gap in affordability. Most builders aren’t putting up anything below $250,000 – $300,000, and the developers at Plantation Oaks are coming in at half that. It’s a way more affordable number for a lot of people.”
“We’re selling the lifestyle, the amenities, the gated entry,” Mynchenberg said of the 55+ community.
Plantation Oaks is near the intersection of I-95 and U.S. 1, north of the municipality. The plan includes annexation of the unincorporated property when phase one is complete.
Phase one of the development calls for 427 lots. The final project will include 1,577 home sites.
“We were just held up for a bit and got back at it,” Bledsoe said. “We’re in a great location to do this. Ormond Beach is among the nicer communities in the area. It’s a great place to live.”
Two- and 3-bedroom homes in the new manufactured home community will range from 1,200 to 2,400 square feet. Prices are between $120,000 and $200,000. The community will operate as a dealer for homes from two makers, Homes of Merit and Palm Harbor. Homeowners can rent the land their home sits on for about $700 per month.
“The rents will vary a little,” Bledsoe said. “Depending on whether you have a waterfront lot, a premium lot or a lot that borders a preservation area.”
Add to that, each home will have a front porch, and a two-stall garage rather than carports.
The Obstacles for a New Manufactured Home Community
“Once they’re leased up, they’re sought after by investors,” Bledsoe said. “Not so much when they’re being developed.”
Commissioner Selby said bridging that gap should be a priority locally, and nationally.
“It’s a total mystery to me how a product class can be so attractive, yet there are no people chasing new deals,” Selby said. “It relates to financing and delayed returns, but all that being said, somehow we have to figure this out.
“There needs to be a mechanism whereby new communities can be built,” he said.
That said, Selby points to the wave of Baby Boomers who will retire to Florida and other warm weather places. If there are homes for those arrivals to live in, Florida’s economy can reap the benefits.
“Boomers add a lot and require very little,” Selby said. “We should prepare ourselves before they advance to an age where more community services will be required.”
Community perks
“We’re doing a 10,360 square-foot clubhouse with café and large kitchen, as well as community rooms to play cards, exercise and meet friends,” Mynchenberg said. “Out back are covered and screened porches that overlook an Olympic size zero entry pool. It’s ADA accessible, and very good for seniors.”
Mynchenberg is a civil engineer, landscape architect and pool designer. Bledsoe has significant experience as an underground utilities contractor. The two have teamed in development efforts several times, including on Plantation Oaks of Flagler between 1998 and 2004. They sold that community and purchased the Ormond Beach property, waited out the recession and in 2012 worked on re-zoning for manufactured housing.
Plantation Oaks of Ormond Beach will boast dog runs and dog parks. Additionally, it will provide tennis and pickle ball courts, shuffleboard, walking and bike trails, boat and RV storage, nearby shopping and entertainment.
The Plantation Oaks Lifestyle
The median home price near the coast is significantly higher than the cost at Plantation Oaks. However, Bledsoe and Mynchenberg have declined to advertise the community as affordable housing.
“I think if you asked the customer about the high point, it’s not affordability, it’s lifestyle,” Bledsoe said. “We’re proud of this community. We’ve had a huge response. When we put up the billboard alone, I can’t say how many emails we received.”
The first model homes were placed during the fall, model homes will be open for a walk-through in the spring and all infrastructure and amenities will be complete by the time residents begin to move in by early 2019, Sales Director Doug Kamm said.
Plantation Oaks is hosting an industry open house on March 20, and will have a grande opening April 4 with three days of home and community tours to follow.
Head of Rochester Property Group Watches Great Lakes Manufactured Housing Communities from Afar
Jason Janda, Rochester Property Group
Jason Janda works in L.A., and spends his day thinking about manufactured housing communities in Great Lakes states and to the east.
An attorney in tax law for a private equity firm, he purchased apartment buildings on the side. In 2014, Janda was drawn to manufactured home communities. He enrolled to the Mobile Home University boot camp, run by Dave Reynolds and Frank Rolfe, and read everything he could find on the subject.
In 2016, he took the leap and made the purchase of his first park.
Re-imagine What You Know
“You really have to educate the investor and break those false impressions that are created by TV and our culture in general, and make sure the first investment goes really well,” Janda said, looking back on the deals he might have signed if hadn’t initially been so risk averse. “I couldn’t afford to have anything go wrong, otherwise my investors would question the whole direction, the whole industry.”
The investors he’s attracted are high earning professionals who aren’t distracted by the details, they just want to know they’re getting 10 percent return on investment.
Janda purchased from a gentleman who had operated a Wisconsin park for 35 years and ran into some health problems. The owner sold so his wife would get a regular check if something were to happen, Janda said.
He bought the “Ma and Pop” community south of Lake Winnebago, a small park that could be fixed up, But it was hardly the 200-plus site “Cash Cow” larger investors have targeted.
With it, he has an adapted strategy that suits him well.
“It’s still a good niche to be in, and will stay pretty good for the near to middle term,” Janda said. “If I was looking to buy something at a 5 cap, I’d be doing something off market in apartments still. I’m here because I want an 8 cap, and that’s still happening in the Midwest.”
An Effective Strategy
“Let’s say you try to buy 300 sites all together in a single metro area, you’re paying a lower Cap. You could also buy 50 sites at six different places all within two hours of each other.”
There’s a regional manager and a maintenance supervisor who can drive to a community within a couple hours. That person can put in four hours on site and drive home by the end of the workday.
“You need to have these employees getting to every community at very least once per month, and then you also have a site manager who’s there every day,” Janda said. “Without the technology we have today, this couldn’t be done. So, if you’ve been in the business for decades, you’re not compelled to work this way. But if we’re picking up communities, we can implement this way of working that happens remotely almost instantly.”
Janda works without a broker, checks mil rates for tax purposes, and makes his own net operating income estimates. A community priced higher than his budget is justifiable if the place is in reasonable physical condition. This is particularly true if the park has some improvements to be made in operations.
His intention is to add as many as 200 sites in his portfolio of manufactured housing communities by 2018.
“An adequate goal for us would be at least two park purchases every year for the next 10 years,” Janda said. “And maybe it’s three or four per year in those later years.
“The manufactured home industry is in itself a community,” he said. “People are generally helpful. It’s more open than many places you might invest.”
The 26th Annual International Networking Roundtable is a Homecoming for Its Founder
George Allen, MH professional
When George Allen was in his early 20s and new to real estate, he worked with a group that gave him a portfolio of apartment properties to prop up.
He did such a good job, they offered him a nice raise, gave him a bonus and a well-earned vacation.
When he returned, they reassigned him to a group of mobile home parks.
“I had to think about that for a little while,” Allen admitted. “I was apprehensive, and had never been around ‘trailer parks’. That was mostly what they were called in those days. I had a feeling about it, but I was unsure what it all meant and how I fit in.”
Even more so than his career trajectory, he had a wife and kids to consider.
Upset, he gave himself 60 days to gain what he calls “a major attitude adjustment”. Allen took to the road to visit the communities. He talked with managers and residents. All of the parks were operating in the red, and many had very poor social conditions.
He did want to turn things around, but he realized there was a catch.
“There was not a single book, tape or newsletter to get a hold of,” Allen said. “I thought, ‘perhaps I can replicate what I had in apartments for mobile home park training materials’. That’s what really intrigued me.”
Write the Book
More than three decades later, Allen’s trek through the annual calendar includes 24 newsletters, 50 blogs, four to six manufactured home management classes and a late summer roundtable, the latest rendition of which will occur Sept. 6-8.
During that time, Allen has purchased and operated his own manufactured home communities in Central Illinois and authored several books, including “Swan Song”, a history of manufactured housing soon to be released.
So, the man’s been busy. Busy making himself the voice of an industry.
“It was really peer pressure,” he said of the original Allen Letter, the professional journal for the manufactured housing industry, published each month for 27 years.
“Everyone subscribed to it, and it was successful. It helps us all make some money, and a lot of people give us credit for having a cohesive effect on the industry,” Allen said. “So, the natural next request was that I organize a meet-up.”
The Show
The 26th Annual International Networking Roundtable comes with a certain amount of synchronicity for Allen. The first one was in Clearwater, Fla., with about 70 people. The 2016 Roundtable was at the Grand Ol’ Opry in Nashville with about 250 attendees. In the years between, the event has traveled from San Diego to Atlanta to Mystic, Conn. and points in between.
“This is the first time in 26 years of hosting this event that I’m bringing it to my hometown,” Allen said. Despite Allen’s tenure, not to mention the title of his new book, this year will not be his swan song.
“I am trying to slow down,” Allen said, emphasizing trying. “I have some younger people coming along side me who I might be able to let take it over. We don’t have a schedule for that, but I figure bringing the Networking Roundtable to Indianapolis will help with an understanding for what we do.”
Part of what he does is settle down each January to look at the most recent of his newsletters, to judge “what’s hot and what’s happening”, to then form the annual event’s agenda.
This year’s broker presentations, for instance, will include Tammy Fonk, of Milwaukee, Wis., from HomeFirst Properties, and Joanne Stevens, of Des Moines, Iowa, from NAI, offering insight on “Anatomy of the Deal” for investors and brokers and “Preparing Your LLCommunity to Sell”.
“A lot of people who are coming want to know who else is in the same business, but part of that is finding out whose community you’re going to buy,” Allen said.
Looking back
There are few years that stand out less for the content of the International Networking Roundtable and more for the events or circumstances of the day.
Colorado Springs in 1997, when George and his wife Carolyn arrived on Wednesday to prepare, the sun was out and the weather was very warm.
“Friday night when we had our second reception they had a snow like I’ve rarely seen,” Allen said. “There was five feet the next morning. The whole place shut down.”
So, they made the best of it.
They continued on, they ate in the hall and eventually retired to the Marriott lounge to have cocktails and watch the Indians and Marlins in the World Series. The bartender at some point began to close down, and the patrons were put on notice.
“One of the guys there was friendly with Bill Marriott and had someone make a call to explain the circumstances, and they re-opened the bar and left it open. No one was even able to leave until Monday,” Allen said.
There was one question about potential upcoming venues on the feedback forms returned by attendees. The consensus was “anywhere but snow”.
The Roundtable was in Del Ray Beach, Fla. in 1998. Attendees arrived as much of southeast Florida was fleeing Hurricane George.
“We managed to get about 70 people in the hotel before they battened down, and the hurricane was raging. You couldn’t really hear it but it looked awful,” he said.
Feedback form response: “Anywhere but snow, hurricanes… and let’s throw in earthquakes for good measure”.
Flash forward to 2001, all air travel was halted following the 911 terror attacks when attendees were set to fly to Chicago. The Roundtable was held a week later than planned, and was well attended, but the notion of “can we stick with the less eventful events?” was very real.
More to Come
Yes, the Septembers of late have been more kind, even if the murmurs of George Allen’s possible retirement have heightened.
“For the last 10 years, I’ve been dealing with the sons and daughters and heirs apparent,” Allen conceded. “So, every time I start to rattle on about doing something else, I hear about it from the industry people who begin to worry about where they’ll turn.
“I can’t just go away,” he said. “It wouldn’t stop the business, but it would dramatically change how people interact and learn.”
It’s true, even hard-to-impress industry leaders can appreciate that the 200 people Allen draws are high-level players; owners, CEOs, CFOs and highly regarded analysts and consultants.
And Allen himself, with those decades of experience, and the way he weaves a story.
So, come to Indianapolis this year for the George Allen International Networking Roundtable, grab a copy of “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.
Allen, center, and Darryl Searer, left, with Mike Sullivan wear their green RV/MH Hall of Fame jackets
MHVillage sister company Datacomp, publisher of Florida JLT Market Reports and the nation’s #1 market data company for the manufactured housing industry, has made available a 17-year summary report of its manufactured home community rent surveys for 32 Florida markets.
The most recent Florida JLT Market Reports released May 2017 include 752 communities and 208,881 homesites. This summary report is based on rent and occupancy trends from May 2000 to May 2017.
For the seventh consecutive year, occupancy rates for Florida “All Ages” manufactured home communities increased. As of May 2017, the occupancy rate for All Ages communities is 91 percent. That is an increase of 1.8 percent compared with May 2016. The national average for All Ages communities as of December 2016 was 89 percent.
For the fifth consecutive year, occupancy rates for Florida “55+” communities increased. As of May 2017, the occupancy rate is 95 percent, up 0.9 percent compared with May 2016. The national average for 55+ communities as of December 2016 is 95 percent.
As of May 2017, Florida ranks third among five states in the south for average occupancy in All Ages communities. Of the four states within the South region that include 55+ communities, Florida ranks second for average occupancy among this segment.
Among All Ages manufactured home communities,Florida ranks eighth nationally for average occupancy. Of the 55+ communities in the 33 states where JLT market reports are published, Florida ranks fifth.
Strong Rent Growth in Florida JLT Market Reports
Average rents in All Ages Florida manufactured home communities continued to increase for the 17th consecutive year.
In May 2017, the average adjusted rent in All Ages communities increased by 2.1 percent to $497. This is lower than the average annual compounded increase of 3.5 percent during the last 17 years. In comparison, the national average adjusted rent for All Ages communities was $458 as of May 2017.
The average adjusted rent among 55+ communities in May 2017 increased by 4.2 percent to $498. That value puts Florida above the average annual compounded increase of 3.7 percent through the last 17 years. In contrast, the national average adjusted rent for 55+ communities was $519 as of May 2017.
Nationally, Florida ranks eighth in average adjusted rent for both All Ages and 55+ manufactured home communities in the 33 states where JLT market reports are published.
If you are a professional in the Manufactured Housing industry, MHVillage has created a special home listing app just for you.
Find the new MHVillage Home Listing App in the App Store or on Google Play today!
A number of members expressed a need for an easier way to list homes while in the field. They wanted to be able to enter the listing information while walking through the home, easily upload photos from any phone, and be able to add and remove listings from the road! In response, we created the MHVillage listing app.
This free app will let you manage your home inventory right from your phone. You can easily create new listings, edit existing listings and remove homes that have sold.
We also wanted to give you, the MHVillage Professional, powerful tools that you can use on your phone. To check out our app, either head over to iTunes or Google Play to download. We would love to hear your comments and suggestions as we further develop these tools, so please, let us know what you think!
Your home listing description can make all the difference
The home listing description space is where MHVillage invites you to give a detailed description of the home.
Something we see quite a bit on MHVillage is home sellers using the description area to either list additional details (sometimes the same features already selected and listed in the home features section) or enter nothing at all.
We have found that this is simply not as effective as taking the time to give the shopper more information about the home, the community it is within and any other details that might make this home stand out from the crowd.
Here are some examples of actual home descriptions on MHVillage:
Option 1:
The description has no word limit. Still, this seller only included two sentences about the home.
Option 2:
This seller took the time to walk the buyer through the home describing each room!
The difference in these two listings is crystal clear. One of the sellers took the extra steps to really show off what this home has to offer, while the other seems like they tried to list the home as quickly as possible, not really giving much information.
Rise Above the Rest
It is important to remember, a lot of home buyers are looking at tons of listings and a good number of these buyers are looking at homes in other states. So by giving buyers more information in your home listing description, you set them up to be interested enough to contact you for a tour or more information. And this is the whole point of advertising in the first place!
Now, there are plenty of different ways you can use this space from a marketing stand point. You can follow the two examples mentioned in this article or you can write it more in the style of a newspaper article where it’s in paragraph format. Either way you want to be able to give the buyer the experience of walking through the home, noting all of the details that matter to a home owner. We found that the ads where you can tell that the seller took the time to describe the home, keeps buyers interested and eventually gets them to contact the seller.
So, no matter what your style of advertising is, it’s important to share with the buyer why they should consider your home over all of the other options out there. Why not take the time to use this space to your benefit?
We try to give you all of the tools you need to go the extra mile in your advertising, but if you find you have some questions about what features you have on MHVillage, give us a call or an email today! We are happy to help.
MHVillage helps you “talk to your fans”… Your fans are the people who have shown interest in your listings.
We love the “Talk To Your Fans” feature, and we’d like you to use it more.
As you know, our website offers a number of advertising tools to home sellers, community managers, and retailers. We also offer shopping tools for home buyers on the site. Home shoppers can set up alerts for home listings of interest.
So who are your “Fans”?
Homebuyers have two different ways to become a fan of a listing, community or retail sales center.
1. While searching MHVillage, buyers can click the “Like” option. That saves the listing, community or retail sales center to their account.
2. Buyers also can create an “Ideal Home Search” alert, which will make them a fan of any listing that matches their criteria, (even homes listed after the alert is created).
Once a customer is a “Fan” certain events will trigger automatic updates:
Reduced Sale Price
Updated Photos
Updated Description
Added Open House
A Home Marked “SOLD”
Homes added to Community or Sales Center
So, when any of these happen, MHVillage send them an automatic email letting them know.
You can email your Fans directly through the “Talk To Your Fans” tool!
Want to reach out to people who have expressed interest in homes in your area? Here’s how to do it:
Click “Talk to your Fans.” This feature is located on your account page to the right side.
Select which fans you wish to reach out to. You can choose fans of a particular home, or all your fans all at once.
Here you can send an email directly to your interested buyers. There is space for additional information about the home or any buyer incentives you might be offering.
The Talk to your Fans tool is incredibly useful since it gives you the opportunity to reach your consumer base directly. This allows you an added opportunity to connect with them and hopefully sell them their next home!
If you have any questions about the Talk to your Fans tool – or anything in your account – send us an email. We are happy to help!
A big thank you to all the folks that made the Louisville Manufactured Housing Show for the MHVillage presentation on Internet Marketing in 2016 and Beyond. Yes, it was such a great success, once again! I was honored to give the opening seminar to a fantastic, engaged audience.
Several professionals have asked for a copy of my slide deck for Internet Marketing in 2016 and Beyond.
The file is too large to email, so we’re posting it here so that you can download the PDF.
Click the first slide below to download. Note, the PDF is password protected. If you have questions or need the password, please feel free to contact me at MHVillage. Thanks again for a great show – and we’ll see you in Tunica!
By Dawn Highhouse, MHVillage VP of Digital Marketing and Social Media Strategy
Large File – please allow a moment for download – Internet Marketing
In August, the RV/MH Hall of Fame will celebrate the 2025 class of inductees, five from each industry.
“Our selection committees held meetings to review...
“We’re doing a 10,360 square-foot clubhouse with café and large kitchen, as well as community rooms to play cards, exercise and meet friends,” Mynchenberg said. “Out back are covered and screened porches that overlook an Olympic size zero entry pool. It’s ADA accessible, and very good for seniors.”
The description has no word limit. Still, this seller only included two sentences about the home.
