Manufactured Housing: A Hidden Investment Opportunity

Remember your grandma’s mobile home park? Nothing to do, rickety houses lining disheveled streets. Today’s four and five star manufactured home communities are a far cry from those, and investors are taking notice.

These communities offer green spaces, amenities and high-end homes that offer the convenience of single-family homes without the cost. From fitness centers and clubhouses, to activities and luxury swimming pools, these communities are becoming more and more attractive to investors. In business terms, they offer stable returns, long-term occupants, and a relatively low capital cost to maintain the properties.

The financial risk is relatively low as well. Second only to self-storage, these communities have one of the lowest rates of default. It also has the second-highest net operating income growth, making manufactured home communities very attractive to both mom-and-pop, along with large investors.

Speaking of mom-and-pop, they make finding a manufactured home community for purchase difficult. The stability of the asset encourages long-term ownership, and the assets are often kept in the family. Still, investors in the market can often find a distressed property with 50% occupancy in need of repairs and community spaces. Besides mom and pop owners, large companies own a majority of the parks in the Untied States. Sun Communities, Equity Lifestyle Properties and RHP Properties are the top three owners, with a combined ownership of 200,000 sites.

An increased demand for manufactured housing from baby boomers and young families has encouraged lenders like Fannie Mae and Freddie Mac to announce an increase in manufactured housing production goals. The average cost of a manufactured home, minus land, is $70,600, compared to nearly $300k for a single-family home, according to the Manufactured Housing Institute.

Due to their affordability, manufactured housing falls outside of the institutional lending limit caps set for Fannie and Freddie. Interest rates have remained low, and borrowers have the option to shop around for the load terms that best suit the mobile home community, and the market. Because of this, borrowers benefit from a competitive product with a low interest rate, and a good return in a low-risk environment.

In the meantime, demand for manufactured homes continues to rise, leaving investors on the market searching for the next good deal.

5 Reasons Manufactured Homes are Better Than Apartments

Today, manufactured homes are built with quality craftsmanship and materials. They are built by professionals in controlled environments, helping them produce excellent products with less waste.

These newer homes often include modern and luxury upgrades like granite counters, stainless steel appliances and garden tubs. They are built using strict guidelines, so in many cases they are just as safe, or safer, than site-built homes.

It’s easier than ever to get financing for a manufactured home, especially for newer homes. That’s why we think purchasing a manufactured home is even better than renting, especially if you’re in an apartment. Here’s just 5 reasons manufactured homes are better than apartments.

Let’s face it, manufactured homes get a bad rap. Even though modern day manufactured homes are totally different than their predecessors, people still can’t get over those old homes. But when it comes to making investments, we think mobile homes are better than apartments. If you’re renting an apartment, it’s a good time to consider purchasing a mobile home.

 

1. Your Own Space

new mobile home, new mobile home for sale, manufactured home for sale, mobile homes for sale Ocala, Ocala homes for sale

When you buy a mobile home, it’s yours. You can paint the walls and customize your home any way you like. Plus, you aren’t in close quarters with your neighbors. You learn all too quickly the schedules and habits of your neighbors in an apartment. Buying a manufactured home gives you a space that’s all your own.
2. More Bang for Your Buck

new mobile home, new mobile home for sale, manufactured home for sale, mobile homes for sale Ocala, Ocala homes for sale

In most cases, you’ll get more square footage, more storage and more options per dollar on a manufactured home than on an apartment. Today, manufactured homes often have two bedrooms and two bathrooms, a storage shed, a patio and large living areas. They feature open floor plans that create light and cheery spaces. Often times, you’ll pay more for rent in an apartment than you would for a mobile home mortgage. You’ll have the added advantage of knowing that your money is going to your home, not to your landlord.
3. A Backyard 
mobile home space, mobile home yards, land lease mobile homes, mobile homes for sale fl, fl mobile homes
The backyard on a mobile home located in Rolling Greens.
Not having a backyard is one of the most bothersome aspects of renting an apartment. When you purchase a manufactured home, you’re getting a backyard that you can enjoy. Whether you have dogs or just like to grill out on the weekends, a backyard can make a big difference. When you buy a manufactured home in Florida, you’ll find that you can spend a lot of summer nights enjoy your backyard. Plus, many manufactured homes come with screened in porches that feature ceiling fans, so you can be outside even on hot dogs. Invest in a corn hole game and invite neighbors over for a BBQ!
4. A Sense of Community 
mobile home community, mobile home community florida, florida veterans, manufactured home community
Residents raising the flag in honor of veterans in their community at Tuskawilla Trails.
Living in an apartment complex can make you feel very isolated. Often times you hardly see your neighbors and chances are you’ll never meet them. In many manufactured home communities, there are events, social activities and a true sense of community. Whether you’re a young family or enjoying retirement, a sense of community can keep you grounded. In Newby Management communities, we strive to create a strong sense of community through social activities. It fosters a family that many people don’t find in other communities.
5. Security and Stability 

new mobile homes, mobile homes for sale, new manufactured homes, energy efficient mobile homes, mobile home financing

Renting an apartment can be a great option in the short term. It gives you flexibility if you aren’t ready to move to a permanent location. But when you’re ready to make a permanent move for your family or in retirement, buying a mobile home is a great option. It gives you so much value for your money, and you can feel more secure as a homeowner.

How to Serve Residents at the Holidays with a Single Bag

service, serving christ, christian company,acts of service, property management, property management florida, florida property management company, mobile homes, manufactured homesRows of Cherrios lined the walls and boxes of food filled the conference room. For one day, the team members at Newby Management turned into a food packing assembly line.  As holiday music plays, team members gather to serve residents. For some team members, like Kelly Horalek, a corporate office accountant, this is her favorite day of the year.

At the holidays especially, we notice the needs of people around us. At Newby Management, the team noticed that some residents were struggling to feed their families, something that becomes especially difficult around Christmas. That was when they started delivering holiday food bags to residents in their communities who needed an extra hand.

This year the corporate office team packed an astounding 1,500 pounds of nonperishable food. It’s the kind of food most people take for granted, like peanut butter and jelly or oatmeal. But for some families, those staple items will go a long way.service, serving christ, christian company,acts of service, property management, property management florida, florida property management company, mobile homes, manufactured homes

138 bags were given away in total. The bags are personally delivered by a corporate team member, so the residents aren’t just getting food, they are getting encouragement too. While some residents need food care packages, others just need a bit of holiday cheer. For residents who had a difficult year, the team delivered fresh poinsettias to their homes. It’s just a simple reminder that they are being thought about during the holidays.

Serving residents in your mobile home community during the holidays can take on many different forms. Whether you do something big or something small, know that it can go a long way to boosting morale in your community. Sometimes the best thing you can do is to meet people where they are and love them.

Merry Christmas, from everyone at Newby Management.

See More Photos from the food drive on our Facebook page!

Could 30 Year Mortgages be Available For Manufactured Homes Soon?

Manufactured home loans, manufactured home financingGetting a loan for a manufactured home can be difficult, but new 30-year financing plans could make it easier. Fannie Mae is launching  a financing program in New Hampshire that could be a starting point for government-sponsored enterprises (GSE) to offer similar loan terms nationwide.

The GSE is working with the New Hampshire Housing Finance Authority on the program to provide loans to manufactured homes located in resident-owned communities, or ROC’s.

The program takes advantage of a New Hampshire law that requires all manufactured homes, whether located on owned land, in an ROC, or an investor-owned park, to be titled as real property instead of chattel.

Chattel loans classify manufactured homes as personal property, rather than real estate. With the 30-year real estate loans, home owners could get up to a 95% loan-to-value ration with private mortgage insurance.

For homeowners in ROC communities, these loans are great news for curb appeal. Most often, people are more likely to become invested in their homes if they are staying long-term.

In an ROC, residents are responsible for the maintenance and upkeep of the community. Since homes eligible for financing are located in ROCs, Fannie Mae has more comfort from a risk-management perspective, since the borrower is less likely to walk away is there’s a problem.

 

Although this is a great step forward for manufactured housing financing, ROCs make up just 5% of the communities nationwide. Right now, the Manufactured Housing Insistute is focused on making financing available to anyone seeking to purchase a manufactured home, no matter how they are titled or where the sit.

Learn more about the program, and how the MHI plans to bring loans to all potential manufactured home buyers in the future at National Mortgage News. 

 

 

Just One Word Will Change Your Customer Service

resident relations, property management, property management company, manufactured home, resident services One of the first things we learn as children is our name. It’s our identity. It’s often the first thing someone knows about us. When someone uses our name, we feel connected.

At Newby Management, the first of our Three Steps of Service states: “Always use a warm and sincere greeting. Use a person’s name if and when possible.” We covered the importance of using a warm and sincere greeting, and today we will discuss the importance of using a person’s name.

Imagine you go to a local coffee shop for the first time. The owner introduces himself, chats with you and makes you a latte. The next time you go in, the owner remembers your name and drink order. You’ll likely leave that coffee shop feeling very positive about your experience. You’ll feel appreciated as a person and as a customer.

We train our team members to use people’s names when possible because it not only encourages good customer service, it also encourages compassion. The simple act of using someone’s name can make their entire experience with you more positive. This is especially true if they are coming in to voice a complaint. When you use their name, they will feel as though they are important and that their issue will be addressed.

Remembering resident names may feel like a challenge if you’re bad with names. We have a few tips to help you start getting those names down.

  1. Repeat their name out loud. For example, if they say their name is Jerry you can say “It’s nice to meet you, Jerry.”
  2. Write their name down.
  3. Associate their name with a picture or another person. Have you ever met someone and they said “Well, I won’t forget your name! It’s my dad’s name.” Think of a way to associate their name with something already in your memory.
  4. Stay focused on the person as you interact and continue to use their name throughout the conversation.
  5. Write down a small fact you learned about them next to their name, like “Jerry, from Ohio with two dogs.”

It’s easy to forget the importance of using someone’s name. In fact, it’s one of the most important resident relations tips we can give. If you’ve never been good at remembering names take it one person at a time. You’ll start seeing a difference in the way you interact with people right away!

Manufactured Homes Fare Irma Better Than Expected

Hurricane Irma, Manufactured Homes, Manufactured Home’s Safety, Manufactured Homes HUD, Manufactrued Homes Hurricane, Mobile Homes Hurricane Irma, Mobile Homes after Hurricane Irma
Post-Irma Tree Clean Up in Edgewater, FL.

Manufactured homes are considered among America’s most vulnerable housing, so it’s no surprise that owners were concerned for their assets during the storm.

There are 850,000 manufactured homes in Florida, more than any other state, and most fared well during the storm, sustaining only minor damages.

While many are surprised by this fact, manufactured home professionals are not. Following Hurricane Andrew in 1992, manufactured housing codes were updated to make homes safer during natural disasters.

For example, manufactured home regulations added over-roof anchors  post-Andrew. This update is expected to have saved many homes during the most recent hurricane to strike Florida. Previously, most homes were only secured by connecting the frame to a rod buried in the ground.

Today, HUD codes for manufactured homes in hurricane zones are equivalent to the current standards for regional and national site-built codes. Manufactured homes are constructed to withstand wind speeds of 150 miles per hour in Wind Zone 2 and 163 miles per hour in Wind Zone 3, based on standards from the 2010 International Building Code.

This means modern manufactured homes are constructed to hold up in a Category 5 hurricane. Additionally, federal regulations for manufactured homes require design and quality assurance professionals during construction. Each home must also have a label certifying it has been designed, constructed, tested and inspected to comply with federal standards, which site-built homes do not require.

With the improvements in both manufactured home safety, and how they are built, it’s no surprise that they fared better than expected during Hurricane Irma. Although the media frenzy expected all homes to be destroyed, manufactured homes fared similar to site-built homes.

Working to end the stigma towards manufactured homes is an important part of the industry. As we change people’s long-held beliefs on manufactured home quality, safety and design, we can start to revolutonalize the way people buy homes.

Builder Challenges Manufactured Home Stigmas

affordable housingRemove term: affordable housing crisis affordable housing crisisRemove term: manufactured homes manufactured homesRemove term: mobile homes for sale mobile homes for saleRemove term: manufactured homes for sale manufactured homes for saleRemove term: 2017 manufactured homes 2017 manufactured homes
Photo Courtesy of Clayton Homes.

It’s no secret America has an affordable housing crisis. With homeownership outside the reach of many Americans, they are often left paying exorbitant rent prices. To fight back against the crisis, and to challenge the stigmas associated with manufactured homes, one builder has launched its biggest marketing campaign to date.

Clayton homes, one of the largest home builders in the country, launched the Have it Made initiative nationwide on Sep. 2. The 60-second commercial aired during the University of Alabama and Florida State University football game, and represents the company’s mission to provide quality homes at affordable prices, says Kevin Clayton, CEO of Clayton Homes.

“With the cost of homes skyrocketing, we want people to know that buying a beautiful new home at an affordable price is still an attainable dream for Americans,” he says.

Partnering with the Boulder, Colorado ad agency, Made, Clayton homes hopes to position itself as a solution to the growing need for affordable housing. The U.S. Census Bureau reports the average cost of a new single family site-built home with land is approaching $380,000 while today’s manufactured home can be purchased for significantly less–about $70,100 not including land.

Have It Made challenges the stigma associated with homes built in factories and delivered in sections to their final locations. Clayton Built homes are constructed indoors to avoid water damage and weather delays while creating long-term value from the use of economies of scale. The homes are built to highly regulated building standards and offer many energy-efficient features, the company says.

Clayton Homes is among the builders who have patterned with Energy Star. Their homes  must meet guidelines for energy efficiency set by the U.S. Environmental Protection Agency. In fact, their homes are 20 to 30 percent more efficient than most standard homes. To achieve this, Clayton Homes uses:

  • Top-Grade Insulation
  • Extensive caulking and tight construction to eliminate unwanted drafts
  • High-Performance Windows and Doors
  • Use of UL and Energy Star approved materials including low-escape air ducts

According to the National Association of Home Builder’s latest survey of home buyer preferences, Energy Star appliances and windows, along with an overall Energy Star rating, were among the top-5 most wanted features. Other wanted features include a programmable thermostat, which is available as an upgrade in Clayton Homes.

New manufactured homes are comparable to site-built homes in not only quality, but also style. One of Clayton’s luxury homes comes in at over 2,200 square feet and features three bedrooms, plus two full baths. The Captain Jack includes features such as granite counters, a kitchen island, a breakfast bar, glass enclosed large showers, a fireplace and more. You won’t believe the styles and upgrades that are available for new manufactured homes.

It’s time to end the stigma and make affordable housing available to Americans again.

Learn more about Clayton and their homes: https://www.claytonhomes.com/

 

 

Fannie-Freddie Look to Provide Manufactured Home Financing

Mobile homes, mobile home financing, mobile home loans, low income financing, manufactured home financing, Fannie Mae, Freddie Mac As more buyers turn to manufactured housing, more lenders are looking into offering financing for the homes. Fannie-Mae and Freddie-Mac released draft plans that show they may soon provide financing to buyers of manufactured homes.

The proposal was outline as part of plans to help affordable housing challenges in America. Mortgage firms see these programs as a way to help low-income buyers become home owners.

While many see this a progress in the affordable housing crisis, some are concerned about the risks involved with mobile home lending. The concerns include the homes sitting on leased land and their tendency to depreciate quickly.

Those fears, while valid, are no longer true for many manufactured home owners. This is especially true of those purchasing new manufactured homes. These homes are comparable in quality and pricing to similar site-built homes and offer similar value as well.

The U.S.-controlled companies need to get sign-off for the pilot programs from their regulator, the Federal Housing Finance Agency.

Learn more about this proposal and the affordable housing challenges. 

5 Reasons to Live in a 55+ Manufactured Home Community

Optimized-55-communitiesIf you’re thinking of retirement, you may be looking into 55+ communities. It’s a big decision with lots of options, from community style to location. We think 55+ manufactured home communities are a great choice, and we’re going to give you 5 reasons to make the move!

1. Living in a Community of Peers

At Newby Management, we always notice that the people in our communities aren’t just neighbors, they are friends. Living in a community of your peers gives you tons of opportunities to make lifelong friends. Often times people can become secluded in retirement and lose touch with the outside world. 55+ communities put you in a position to be active, to have fun and to try new things.

2. Living an Active Lifestyle

When you start looking into 55+ communities, you’re going to hear the phrase “active lifestyle” quite a bit. Although this may seem like a marketing term, it’s actually something we see in our communities often. Especially in Florida, you’ll see people doing water aerobics, playing shuffleboard, tennis, horse shoes and much more! If you find a 55+ community with great amenities, you are sure to see people using them often.

3. Living Somewhere Safe

There’s no guarantee that your 55+ community will be safe, but on average they are much safer than your average community. Often times the community will have security cameras in common areas along with a courtesy patrol. Plus you’ll have watchful neighbors at most locations who take care of each other. Whether that means watering plants or watching your home while you’re away.

4. Living Where the Action Is

Maybe you love to explore the city or maybe you’re more of a homebody. Either way, 55+ communities offer great options. Most communities are located in or near cities with lots to do. But there’s often lots of great events right within the community for you to enjoy. Have fun with arts and crafts, shuffleboard competitions, dances, pot lucks and more!

5. Living Where You Save Money

If you’re living on a budget in retirement, you might be trying to find ways to save money. Living in a manufactured home community is one way to save money without compromising on the lifestyle you want. It’s all about finding the home and community that are right for you. A manufactured home community is much less expensive than other 55+ communities and you’ll find that it’s a great place to spend your retirement.

Want to start searching for your dream home? Visit www.NewbyRealty.com to see homes available across the beautiful Sunshine State!

5 Mobile Home Myths You Still Believe

new mobile homes, mobile homes for sale, new manufactured homes, energy efficient mobile homes, mobile home financing
We all know the stigmas associated with mobile homes. Here’s the thing, most of these aren’t true anymore. There’s a huge difference between parks of the past and parks of today. Today, we’re going to debunk 5 myths that you’ve heard about mobile homes that just aren’t true.

1. Manufactured Homes are More Prone to Fires
Manufactured homes get a bad rap for being fire-prone. In fact, the media seems to just love writing about them catching on fire. This, combined with the idea that mobile homes are more likely to catch fire makes people believe it must be true. Today, the fire resistance provisions of the HUD code have strict standards for fire retardation and smoke generation materials, large windows in bedrooms, smoke alarms and at least two exterior doors which must be separate from each other and reachable without having to pass through other doors that can be locked. On the other hand, site-built homes do not have such strict requirements. The truth is, fires can happen anywhere and today’s mobile homes are no more at risk for fires than comparable site-built homes.

2. Manufactured Homes Are Poorly Constructed 
Many people seem to believe that manufactured homes aren’t constructed as well as site-built homes. In reality, site-built and manufactured homes are built out of the same materials, just not at the same locations. Although they aren’t built at their final location, manufactured homes are sturdy and follow the same and often stricter HUD building codes than site-built homes. Many of our renovated homes include features such as cherry wood cabinets, granite counters, stainless steel appliances and more. These homes exude both quality and beauty.

3. Manufactured Home Communities Aren’t Nice
The truth is, a few places give manufactured home communities a bad name. There are definitely some manufactured home community operators who care more about profits and let an aging community fall to the wayside. However, you’ll also find a great deal of community managers like Newby Management who places great importance in capital improvements and putting people before profits. For example, in our premier communities like Camelot Lakes, Camelot East and Rolling Greens we are currently working on big capital improvements that will benefit the entire community. We also are always working to update the home inventory. There are many operators and managers who take the time to ensure that communities are kept up-to-date and beautiful for residents to enjoy.

4. Manufactured Homes Don’t Appreciate
Like site-built homes, appreciation depends on a lot of factors. The reality is that some homes appreciate and others do not, no matter what type of home it is. Appreciation factors depend on some of the following:

  • The housing market in which the home is located, will have a significant impact on the future value of the home.
  • The community in which the home is located, has a similarly significant impact on the home’s future value.
  • The initial price paid for the home.
  • The age of the home.
  • The inflation rate.
  • The availability and cost of community sites, which reflects the supply and demand influences on the home’s value.
  • The extent of an organized resale network, where an organized network will usually result in homes selling for a higher price than in markets without such an organized network.
Any home that comes out on the positive end of these factors is likely to appreciate, whether the home is manufactured or built on site. If you’re hoping your manufactured home will appreciate over time, consider the factors listed above when making your purchase.
 
5. Manufactured Homes Are For People With Financial Issues
When mobile homes first came into the market they were used as quick, cheap housing for people in need. Eventually this style of home broke into the mainstream market and became what we know today. When this happened, HUD standards, quality standards and societal standards were placed on manufactured homes. Today, there is hardly any difference between a site-built home and a manufactured home. The quality of manufactured homes, along with the price, make them an amazing affordable housing option. However, they are no longer only a housing option for people with financial troubles. More and more they are becoming smart decisions for people looking to own a home without getting into a ton of debt.