...top-of-the-line manufactured house, but I am being offered bottom-of-the-line financing, even though my credit is pretty good. They want 8-9% when other mortgages are going for 5-6%. How come?" Most purchasers of manufactured housing, including you, are shut out of the mainstream mortgage market. They must find loans in a parallel market, which is much like the unsecured personal loan market. Lenders in this parallel market assume that loss rates on manufactured house loans will be high, as they are on personal loans, and they price them accordingly. They view manufactured houses as poor collateral that provides them with little protection. One reason for this view is that manufactured houses can be moved. Before the HUD building code went into effect in 1976, manufactured houses were called "mobile homes", and this term is still widely used. Even though few ever leave their first site, they remain tarnished by the image of mobility. Lender concern that the collateral can disappear is well grounded when the house sits on rented land, which is the case for about half of all manufactured houses. Most leases are short, and if the landowner decides that it is more profitable to use the land in some other way, the manufactured house owner must move it or leave it. Since the cost of moving is very high, and in many cases the property is worth little more than the debt, owners sometimes just walk away. The lender's collateral ends up in the trash heap. Few owners of manufactured houses...
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...1. The key aspects of Manufactured Homes(MNH) are the selling of manufactured homes at a big price range with the focus on the lower end of the market and the financial participation. MNH sells the mortgages of the customers to unrelated financial institutions and earn money by the difference in the interest rates. MNH sold mobile homes in the Southeast US, primarily to low-income individuals who could not afford a traditional single-family home. The company sells affordable comfort. The company believed that its focus on the lower end of the market had two advantages. First, since its customers were seeking to fulfill an essential housing need, sales were less affected by changes in general economic conditions. Second, the company’s repossession rates were significantly lower than those of the industry since its customers were likely to work very hard to keep their primary residences even when times were bad. Although the market will be very competitive this year, we think the company’s special attention to the low-end of the market, to which many large competitors pay less attention, will give MH a solid niche position. MNH has a viable business, because it earns their money with two different aspects that are related to each other. The selling of manufactured homes to the lower end of the market and the selling of the mortgages (installment contracts) on a recourse basis. When the customers buy a home it is easy for them to buy a mortgage with it at the same company. Another...
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...Financial Statement Analysis Assignment 1 “Manufactured Homes” 18 February 2015 Semester 2, Period 1 2014/2015 Student Name (Student Number), Tutorial Group Number ), 2 ___________________________________________________________________________ Question 1: The key aspects of Manufactured Homes business are, Manufactured Homes sells mobile homes for affordable prices. Their main focus is on low-income customers like retirees, people seeking a single-family residence but lacking to ability to buy a conventional house and people who want a second home for vacation purposes. Manufactured Homes sells 2 kinds of mobile homes, single-sectional homes and multiple sectional homes. Most of the sales Manufactured Homes makes are credit sales where to customer pays a down payment of 5-10% of the purchase price and the remaining amount through an installment contract over periods ranging from 84-180 months. The company sells the majority of these installment contracts to unrelated financial institutions on a recourse basis. Which means that Manufactured Homes is responsible for the payments to the financial institution if the customer defaults. I believe Manufactured Homes has a viable business, although the market is very competitive, because Manufactured Homes focuses on the low-end of the market to which many large competitors pay less attention Manufactured Homes will have a solid niche position. Manufactured Homes also has the potential to buy in bulk, which gives them...
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...___________________________________________________________________________ 1. Manufactured Homes, Inc. focuses on the retail sale of fully furnished and carpeted new and old mobile homes for individuals in the low income category. Manufactured Homes, Inc.’s customers are those seeking a single-family primary residence but not having the ability to purchase housing due to high costs. These customers, typically blue-collar workers in manufacturing, service, and agricultural industries, make a median of $20,000 per year. Manufactured Homes, Inc. then typically sells their single sectional homes for $10,000-$25,000 with the median being $17,000. Hence, the affordability. They also have a market share of multi-sectional homes (30%) that sold for prices ranging from $17,000-$40,000. According the Manufactured Homes, Inc., it focuses on this particular market because: a. Its’ customers are seeking to fill a general housing need and therefore, its customers are not affected by general economic downturns or conditions. b. Repossession rates are significantly lower since the customers are more likely to work hard to maintain the condition of their homes at any point in time. As far as sources of income, Manufactured Homes receives sales revenue (from the sale of its mobile homes) and interest rate spread (from the finance participation income). In the letter from the chairman, it is mentioned that Manufactured Homes plans to continue to be “ primarily a sales and marketing company...
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...Manufactured Homes Inc. start in 1975 to its rapid growth through the 80’s allowed it to be one of the largest retail of manufactured homes by 1987. With impressive revenue sale in 1988 of $210 million, at first glance this may seem like a sound investment but through analysis and valuation we have prepared a summary of the company’s strategy, risk factors, and industry conditions. Although, Manufactured Homes on paper seems like a great candidate for your firms portfolio, after reviewing our analysis you may have a change of heart. The manufactured home industry is fragmented, there is approximately 10,000 manufactured home retailers throughout the nation which are smaller “mom and pop” operations. This market is under a transition of consolidation, larger retailers like Manufactured Homes are acquiring the smaller firms lacking buying volume and inadequate capitalization. The larger companies like Manufactured homes were able to acquire companies because they could sell their products at a lower cost. As a whole the manufactured home industry is expected to grow on a year to year basis. This was caused by the continuous increases in average prices of conventional housing, causing low income families to seek alternatives. Families turned to manufactured homes which have much more to offer than an apartment with the advantage of equal to lower monthly payments. In addition the south eastern U.S was the country’s fastest growing market for mobile home which Manufactured...
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...Manufactured Homes, Inc. This Winston-Salem company sells affordable Southern comfort: ful ly furnished and carpeted mobile homes for as little as $10,000. Robert Sauls, the 59- year-old founder and chairman, was an orphaned boy who never finished h i g h school. Through acquisitions, Sauls has built the retailer into the industry's largest, with annual sales ballooning to about $180 million in four years. Th e company sells the homes, built primarily by Fleetwood Enterprises and Redman Industries, to rural blue-collar workers in the Southeast. "Our people buy in good times and bad," says Sauls. If he can raise the capital, he foresees a doubling of sales in four to five years. The stock recently sold at 6.5 times estimated 1988 earnings. Jane Edwards, Director of Research at a small Boston-based investment management firm specializing in growth stocks, noted the above review of Manufactured Homes in the February 15, 1988 issue of F o rtun e magazine's Companies To Watch column. She knew that attractive growth stocks are hard to find and wondered whether Manufactured Homes would be a good addition to her firm's growth stock portfolio. She checked the recent performance of Manufactured Homes' common stock and noted that the stock performed favorably relative to the stock market (see Exhibit 1). Jane Edwards asked her assistant Peter Herman to gather additional information on the company and to write a report analyzing the company's recent financial statements...
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...Why is Manufactured Homes getting into financing? Into manufacturing? Look for clues on the balance sheet. Growth and Expansion I. Financing Manufactured Homes decided to create its own financing business for two major reasons. One is that it needed to replace the financing options they lost since they lost two major financing partners due to curtailments, and also due to the unfavorable changes on the rates of these partners. Another reason is by looking through their balance sheet, they seem to have a lot of non-restricted cash and cash equivalents (23% of total assets) which will stand idle if they do not seek other areas of growth to invest on. Since financing plays a large role on their business model, they have decided that they could finance their own installment sales. It gives them greater control on the credit application process, which if implemented correctly will reduce default risks and other financing risks. It is also gives them a small bargaining chip against financial institutions into giving back more favorable rates. Another advantage of taking control of the financing portion of the business is they could potential produce more accurate estimates on their allowance/reserve for credit losses, of which we think is too low for all the risk related to defaults (1.3%). II. Manufacturing Manufactured Homes also decided to expand on the manufacturing by setting up its own factory. It will help alleviate shortages and create a more efficient supply chain...
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...HUISWERK WEEK 3 (E6 C32 & E8 C39) + OPGAVE E7 DQP 29 & 31 Case 6-32 a. A review provides limited assurance about the fair presentation of financial statements in accordance with generally accepted accounting principles but far less assurance than an audit. Presumably, the bank decided that the assurances provided by a review were needed before a loan could be approved, but an audit was not necessary. A review includes a CPA firm performing analytical procedures, making inquiries about the fair presentation of the statements, and examining the information for reasonableness. Because of a CPA firm’s expertise in accounting, the accountant from the CPA firm can often identify incorrect presentations in the financial statements that have been overlooked by the accountant of the company. Reviews are common for smaller privately-held companies with relatively small amounts of debt. The bank probably did not require an audit because the additional cost of an audit was greater than the benefit the bank perceived. In many cases, the decision as to whether to have a review or an audit is negotiated between the company seeking a loan and the bank loan officer. Both the company and the bank have options in negotiating such things as the amount of the loan, the rate of interest, and whether to require an audit or a review. The bank can reject the loan request and the company can go to other banks that want to make loans. Frequently, banks have a list of CPA firms in which they...
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...Question 01: Select the name of the company and briefly explain the nature of its operations. Cavco (http://www.cavco.com) is a leading designer and builder of manufactured homes, modular homes, commercial buildings, park model homes, and vacation cabins. We produce and sell some of the most widely recognized brand names in the industry including Fleetwood Homes, Palm Harbor Homes and Cavco Homes. The company’s insurance group, Standard Casualty, offers a range of insurance products for manufactured home owners and its finance subsidiary, Country Place Mortgage, supplies a variety of homebuyer financing options. Question 02: Explain why and describe how the company would adopt job order costing system. Job order costing system is a system of assigning product cost to the manufactured goods when each of the products is very different from each of the product. Cavco adopts the job order costing system because they are a leading designer and builder of homes, modular homes, commercial buildings, park model homes and vacation cabins, so each of the product is far different that other product. People don’t want make their houses as other people did, they want a newer model of their buildings. When Cavco is making every product different than previous than its material, labor and factory overhead cost are also different that other products and they need make calculations for each of the product separately. So Cavco adapts the job order costing system by making record for each of...
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...Arimount Marketing Plan 1.0 Executive Summary Arimount is one of the world's leading fast moving consumer goods companies. It offers products across foods, home and personal care categories. Arimount first and foremost operates in America. It is headquartered in Dallas, Texas and employs about 171,000 people. I addition to the above products Arimount has also developed a new product called Texas Deluxe deodorant that is in a aerosol can. The product was developed by our leading scientists that allows customers to use the deodorant once every 5 days is they deem necessary. This product is eco friendly and three times the strength of other clinical deodorants. Although there are several competitors that produce deodorants but known that lasts more than 24 hours. The new product for Arimount has been clinically tested. Arimount Sales and Marketing department has purchased an contact list which includes detailed contact information for individuals across Texas in which we will have the initial release of the product. The list not only includes Texas but also the complete area of the Unites States. The “Go To Market” promotion enclosed within will characterize the demarcation in strategy between the geographical regions. The cost of the purchased list was $2,259.00 with a total of 13,292 individual contact names, which calculates to .17 cents per contact. The number of actual companies has yet to be calculated as the file will require clean up, however, appears to have...
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...intro Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items.[1][2] Though the absolute profit made on FMCG products is relatively small, they are generally sold in large quantities, and so the cumulative profit on such products can be substantial. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game players, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable. Cheap FMCG electronics are often retained even after immediate failure, as the purchaser rationalizes the decision to not return the goods on the basis that the goods were cheap to begin with, and that the cost of return relative to the low cost of purchase is high. Thus low-quality electronic FMCG goods can be highly profitable for the vendors. Global leaders in the FMCG segment are Anheuser-Busch InBev, Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, L'Oréal, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc. The following are the main characteristics of FMCGs:[1] • From the consumers' perspective: o Frequent purchase o Low involvement (little or no effort to choose the item – products with strong...
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...Import Substitution and Industrialization in Latin Amercia: Experiences and Interpretations Author(s): Werner Baer Source: Latin American Research Review, Vol. 7, No. 1 (Spring, 1972), pp. 95-122 Published by: The Latin American Studies Association Stable URL: http://www.jstor.org/stable/2502457 Accessed: 26/08/2009 09:21 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=lamer. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@jstor.org. The Latin American Studies Association...
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...I. Issue- Do mobile homes fall under UCC as good not real estate? II. Rule: N.C. Gen. Stat. § 25-2-102 (2009), the law traditionally treats a mobile home not as an improvement to real property but as a good, defined and controlled by the UCC as something movable at the time of identification to the contract for sale. III. Application of facts-. The defendant sold the plaintiff a mobile home. Since the mobile home was on a brick foundation the plaintiff contends that it was real estate and not a good under UCC. IV. Conclusion: Because the plaintiff had crew break down the home from the brick foundation and remove it’s under pins, the home therefor is considered moveable, and falls under the UCC as good. V. Issue- Does the transfer of risk of loss of the mobile fall under UCC or DMV? VI. Rule: N.C. Gen. Stat. § 25-2-509 if the contract does not provide for the seller=s shipment of the goods by carrier or a bailees holding of the goods for delivery without being moved, and the seller is a merchant, and the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant VII. Application of facts- Defendant proposed a contractual provision requiring it to relocate the mobile home from its existing location to Plaintiff=s property, but Plaintiff ultimately declined the inclusion of such provision. Instead, Plaintiff elected to purchase and accept the mobile home “As is where is”, as reflected in the sales contract. VIII. Conclusion:...
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...in-house and out-house laundry. In each room, every maid has a 30 minutes for cleaning the room, and there are 3 shifts / day in which the maids has to clean the room. (every floor has at least 10 maids). The laundry in the hotel is one in-house, and one of the reasons why the hotel is dotated with a in-house laundry is that the GM provides greater control of where the inventory will be laundred. What housekeeping meaning? Housekeeping is the act of cleaning the rooms and furnishings of a home. It is one of the many chores included in the term housework. Housecleaning includes activities such as disposing of rubbish, cleaning dirty surfaces, dusting and vacuuming. It may also involve some outdoor chores, such as removing leaves from rain gutters, washing windows and sweeping doormats. The term is often used also figuratively in politics and business, for the removal of unwanted personnel, methods or policies in an effort at reform or improvement. Housecleaning is done to make the home look better and be safer and easier to live in. Without housecleaning limescale can build...
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...Dress Homes TABLE OF CONTENTS S.No. 1. Contents Competitors’ Background - Bareeze Home Expressions IKEA Pakistan alKaram Studio ChenOne Ideas Habitt Junxion Zubaida’s homestore 2. 3. 4. Marketing Audit - Tagline Comparison - USP Comparison - Website Comparison Action Plan (8-Step Plan) - Step 1: USP - Step 2: Vision Mission & Values - Step 3: Brand Personality - Step 4: Corporate Tagline - Step 5: Product Development Strategy - Step 6: Service Development Strategy - Step 7: Social Media Marketing - Step 8: Promotional Strategy References Page No. 3 4 5 6 7 8 9 10 11 12 12 13 14 15 16 16 17 18 19 20 21 23 24 2 3 Home Expression was founded in 1998 by Bareezé. All bed sets, bed covers, etc. of Home expressions are made with Bareezé quality fabric. Bed sets by home expressions are designed according to local and global fashion trends. Beautiful bed without beautiful bed cover looks ugly, taking consideration this need of customers, Home expressions has made several stylish bed sets in several designs and color combination. Now Home expressions has also introduced various new home accessories as well like beautiful rugs, soft furnishing etc. which helped Pakistani women to decorate their home in a more stylish way. Design Type: Floral/trendy motif Designs 4 Affordable Solutions for Better Living The IKEA Concept is founded on a low-price offer in home furnishings. It is based on offering a wide range of well-designed, functional home furnishing...
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