LGI Homes: Difference between revisions
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{{Infobox company |
{{Infobox company |
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|company_name = LGI Homes |
|company_name = LGI Homes |
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|company_logo = [[File:LGI Logo.jpg|200px]] |
|company_logo = [[:File:LGI Logo.jpg|200px]]<!--Non free file removed by DASHBot--> |
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|company_type = [[Public company|Private]] |
|company_type = [[Public company|Private]] |
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|slogan = The Leader in Affordable New Homes |
|slogan = The Leader in Affordable New Homes |
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Revision as of 05:05, 13 February 2011
| 200px | |
| Company type | Private |
|---|---|
| Industry | Construction |
| Founded | 2003 |
| Headquarters | Conroe, Texas, U.S. |
Key people | Thomas Lipar, Founder Eric Lipar, CEO Mike Snider, President |
| Website | http://www.lgihomes.com |
Based in Conroe, Texas, LGI Homes is the 57th largest homebuilder in the United States[1], with community development focused mostly in the southwestern region. The company began building homes in the Houston, Texas area in 2003[2]. Total revenue for LGI Homes in 2009 was $56 million dollars, making it the 34th largest builder in the Southwest[1].
History
Former Patten Corporation manager Thomas Lipar, founded Lipar Group Inc. (LGI) Development in 1995[3], the year in which the company’s first development was built in Magnolia, Texas[2]. The separate LGI Homes brand was a subsequently founded in 2003.
Corporate Culture
LGI Homes has been noted within its industry as a company that runs contrary to the trend[4], in sales as well as in corporate culture and marketing approach. The company focuses on entry-level, affordable homes in the vicinity of major metropolitan areas, and its prime customer is the first-time homebuyer[5], a segment of purchasers who make up only about 43 percent of new home sales[6]. Despite targeting less than half of the total homebuyer market, the LGI brand was considered a success story among homebuilders during the collapse of the United States real estate market in 2008[4], even when compared to builders who sold to the entire market.
Core to the LGI Homes business model is what the industry considers a “back-to-basics” approach of direct mail marketing, which targets renters living in apartment complexes near the company’s newly-built communities, and encourages them to consider homeownership as an alternative to renting[4].
The company also employs a sales force that receives close to 100 days of training before they are able to interact with prospective buyers[4]. Sales people also regularly walk homes in the community, and engage in ongoing sales-training, making them one of the most highly-trained sales teams in the industry[7].
Projects and Sales
| Community Name | Location |
|---|---|
| Canyon Crossing | San Antonio, Texas |
| Creekside Village | Houston, Texas |
| Sunrise Meadow | Houston, Texas |
| Deer Creek | Fort Worth, Texas |
| Chisholm Springs | Fort Worth, Texas |
| Mallard Crossing | Houston, Texas |
| Sterling Lakes | Houston, Texas |
The affordable and entry-level home market that is the focus of the LGI Homes brand has grown rapidly since the company’s founding in 2003, with LGI benefiting from the expansion. Sector publication Builder Magazine named LGI Homes the industry’s fastest-growing private company in 2008[8]. LGI Homes currently builds in exurban areas in Texas, including San Antonio, Fort Worth and Houston[9], focusing development in many towns that have been traditionally rural, but are now being incorporated into the greater metropolitan areas of their respective cities.
LGI Homes weathered the economic recession of 2007-2009 well relative to the rest of the homebuilding industry, with the company CEO attributing the success to their direct-mail marketing and trained sales staff[8] . The company saw sales trend upward from 2006 through 2008, when it was the only builder in the Builder Magazine Top-200 builders to generate unit sales and see revenue growth across that period[10]. The growth slowed in 2009, when—despite a difficult real estate economy—the company only experienced a 9% drop in home sales, year-over-year[11], as compared to the average 30% drop in sales experienced by larger homebuilders[12]. LGI saw sales growth for fifteen straight quarters through 3Q 2009[13].
LGI Homes Sales Data
(All sales data from BuilderOnline.com annual builder rankings)
| Year | Units Sold | Revenue |
|---|---|---|
| 2009 | 425 | 56 million |
| 2008 | 475 | 63 million |
| 2007 | 434 | 59 million |
| 2006 | 418 | 54 million |
The company is expected to see continued growth in sales and development due to their partnership with investment firm Golden Tree Insite Partners (GTIS), a relationship which was announced in March of 2010[14]. The partnership led to the purchase of a 93-acre parcel of land just outside of San Antonio, Texas in September of 2010[15].
Rankings, Complaints and Litigation
The company currently has an A+ rating from the Better Business Bureau[16], with four complaints on file, all of which were marked as resolved. There were no outstanding complaints.
LGI Homes was ranked as number one in new-home quality among Houston-area homebuilders by J.D. Powers & Associates in 2010[17]. The ranking was based on customer satisfaction surveys of those who had recently purchased newly constructed homes in the Houston metropolitan area.
Community Involvement
The founder of LGI Homes, Thomas Lipar, was a professional snowmobile racer in the 1970s[18], and founded his own drag racing team, Tommy Lipar Racing, Inc., in Texas in 2003[19]. The team is still active in the racing circuit. Lipar is also a partner in the “FightMe” mixed martial arts league[20].
Divisions, Partnerships & Subsidiaries
LGI Homes currently has several divisional offices[21], located in the Houston, Texas; Dallas/Fort Worth, Texas; San Antonio, Texas; and Phoenix, Arizona metropolitan areas.
The mortgage affiliate of LGI Homes, InterLinc Mortgage Inc.[22], began operating in 2002[23], and currently has an annual production of over 750 million dollars[24].
In 2010, LGI partnered with investment firm Golden Tree Insite Partners (GTIS) to purchase land for future developments[25], in the San Antonio area.
Notes
- ^ a b 2009 Builder Magazine "Builder 100"
- ^ a b LGI Development "About Us" Page
- ^ "Tommy Lipar Bio", Tommy Lipar Racing website. As accessed January 2011.
- ^ a b c d "Exception to the Rule", Builder Magazine, March, 2009.
- ^ "Refuse to Participate in the Housing Slow-Down", Builder Radio interview with company CEO Eric Lipar, 2008.
- ^ "Characteristics of First-Time Homebuyers", National Association of Homebuilders, 2008.
- ^ "Is Training an Expense or an Investment?", ExchangeMagazine.com, February 2009.
- ^ a b "BUILDER Magazine Honors Pulte CEO as Executive of The Year", BuilderOnline.com, 2009
- ^ LGI Homes website, with list of current building projects.
- ^ "LGI Homes, GoldenTree Insite targets dirt-cheap lots", Houston Business Journal, 2010.
- ^ "LGI Homes" from the Builder Magazine 2009 "Builder 100".
- ^ 2009 "Builder 100", top-100 builder statistics from Builder Magazine.
- ^ Statistic from LGI Homes.
- ^ "GoldenTree InSite Partners and LGI Homes Form Joint Venture", from GTIS website.
- ^ "LGI Homes and GTIS Partners Acquire 393 Residential Lots in San Antonio, TX", from GTIS website.
- ^ BBB Website. As accessed 17 January 2011.
- ^ "LGI Homes Ranks Highest in New-Home Quality", from J. D. Powers & Associates website.
- ^ "Tommy Lipar Racing Bio", Tommy Lipar Racing website. As accessed 09 Feb 2011.
- ^ "Tommy Lipar Racing, Inc., entry from Texas Comptroller Accounts database.
- ^ Tommy Lipar, "LinkedIn Profile" as accessed February 2011.
- ^ According to LGIHomes.com
- ^ "InterLinc Mortgage" from LGIDevelopment.com
- ^ "About InterLinc" from InterlincMortgage.com
- ^ InterLinc Mortgage FAQ
- ^ "GTIS Makes a Raw-Land Bet", The Wall Street Journal, 15 September 2010.
