This episode features MAI Appraiser and MH industry expert Chuck Schierbeck, a senior valuations specialist with Colliers International and an expert on commercial property evaluations like preparation of appraisal reports, supply and demand analysis, financial and site feasibility, and overall market examination.
Chuck gives us an insider's view of the biggest changes in the industry since the recession. He also shares his views on trends and risks that are the shaping the future of mobile homes.
"So what happened sort of in the 2000's all the way up to today is people, owners started to have them figure out how to sell homes in their communities, finance them, do all that. So owners have had to become more than just property owners. They've had to become retailers, lenders, things like that."
"If you're not built to dig up the dirt and put in the roads, you're not comfortable doing that, the same thing goes back to the smaller homes. I don't think the industry is built for that yet."
"The question is with these different trends, what does my market want?"
"The ideal thing is you got a community, trying to sell homes, you open the rentals, get your property filled out with whatever methods you can, and then try to turn those rentals into owners. And from zero, that would be the model that I would say."
"I think there is some risk in increasing interest rates. I don't know that it's impending... people thought it was going to go up and then it didn't."
[05:15] Chuck's background and how he got into the business
[10:43] Big industry changes since the recession
[21:07] Discussion on trends (tiny homes and rentals)
[36:32] Creating additional ancillary income streams
[45:56] Risks to the industry in the future
Today's podcast features Jethro Van Aardt, Director of Operations at Sunrise Capital Investors. He has an extensive background in commercial real estate and asset management.
Jethro talks on how he’s implemented processes which produced multiple benefits to consolidation planning, better organization, cost savings, and higher quality of coverage, while also spearheading their insurance project.
"That's what it boils down to. That's why you want to choose your broker first. You also want to be sure that you've got the right person servicing you."
"Like everything in life, you get brokers that are small, they don't have access to products that the big corporates would have."
“But generally, I'd say about between 800 and a thousand pads is when you really could start seeing some great pricing efficiencies and really the brokers would start getting excited. Anything smaller than that, you know, it's going to be difficult to get the brokers excited because it takes a lot of work on their side too."
"Guys would never do this product if they felt that their clients were at risk or the entire industry was at risk."
"Insurance is a complex product. When you are going out there and you're comparing your different products, just make sure you're comparing apples to apples."
Discussed in this Episode: