Archive

Archive for the ‘Affordable Housing’ Category

New Steps to Fill Skilled Jobs for American Businesses, including Manufactured and Modular Housing

July 19th, 2018 No comments

NewStepsToFillSkilledJobsForAmericanBusinessesIncludingManufacturedandModularHousingDailyBusinessNewsMHProNews

What are skilled workers?  “Its training the works for the skills that industry needs,” said Linda McMahon, who heads up the federal Small Business Administration (SBA).

 

Johnson Controls, makes numerous products, including heating, ventilation or air-conditioning systems and fire alarms, for housing, business and for manufactured home firms too.

Johnson Controls has partnered with Lincoln Tech, a leading provider of specialized technical training, to provide expanded career opportunities for graduates and help lay the foundation for the workforce of the future by providing the essential training needed to be successful in a technical career, according to Johnson Controls CEO George Oliver in an op-ed to Fox Business.

The White House, in a statement to the Daily Business News on MHProNews, touted approximate 3.2 million jobs created since President Donald J. Trump took office.

It should be noted, for accuracy’s sake, that When SBA’s McMahon said in the video posted that there’s been 3.7 million jobs created, she’s likely referring to the number of jobs since Election Day 2016.


McMahon notes that welders and construction workers are among those skilled positions needed, and those are among the jobs that manufactured home professionals – notably in production centers – are seeking too.

More than one HUD Code producer has told MHProNews that they are prepared to expand, open a new or re-open a previously shuttered production center, once they secure what they see as the necessary workforce.

These are real-world hurdles that face everyone in construction, which includes manufactured housing.

But these are positive hurdles – and at least in theory – a savvy factory producer or entrepreneur can more effectively train, and thus ramp up more quickly, than a site builder. Who says?  MHI and MHARR member factory-builders, among others.

 

 

Earlier today, the White House hosted a pledge to the American Worker event, where First Daughter Ivanka Trump spoke, and President Trump signed a new executive order.

The National Federation of Independent Businesses (NFIB) has told MHProNews on numerous occasions this year that filling jobs are a big issue.  NFIB has hundreds of manufactured housing industry connected companies among their roughly 325,000 total small-business members.

Manufactured housing industry professionals and executives have said similarly directly to the Daily Business News.

There are over 6 million jobs open in the U.S., and more openings than there are workers applying. The economy is moving.  So these are healthy – even if throbbing – growing pains.

With the passage of S. 488 in the House this week on a near unanimous, bi-partisan basis, there may be reason for some optimism – even in an election year – for serious efforts to advance the needs of businesses and workers ahead of the rapidly approaching midterms. When was the last time a bill passed 406 to 4?  See the related report, linked below.

Who Says Bipartisanship is Dead? House Passes Massive “JOBS & Investor Confidence Act” S 488 by 406 to 4 Vote

That’s curated “News through the lens of manufactured homes, and factory built housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third-party images and content are provided under fair use guidelines.)

Related Reports:

President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement

White House Signing Ceremony on Historic Pro-Growth Financial Regulatory Reform

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

CityLabs Spotlights ROC USA’s Bright Communities Brand, Lessons for Manufactured Home Professionals, Investors

July 19th, 2018 No comments

CitylabsSotlightsROCUSAsBrightCommunitiesBrandLessonsForManufacturedHomeProfessionalsInvestorsDailyBusinessNewsMHProNews

Manufactured home communities have a long history of providing low-cost housing in the U.S., where residents drive their homes in, secure them, and pay a monthly rent to stay on the owner’s land. These homes are typically the least expensive option when it comes to unsubsidized housing, serving households with a median annual income of about $30,000,” wrote Hallie Golden, in a new article for CityLabs. 

Golden – a freelance writer, who per LinkedIn does some work for the AP too – is the most recent to look at the topic of manufactured homes, land-lease communities, specifically through the lens of cooperatives as a form of resident owned communities (ROCs).

HallieGoldenReliefReporterAPAssociatedPressDailyBusinessNewsMHproNews

Third party content shown under fair use guidelines.

Golden’s story – and the majority of others through the years in mainstream media and third-party research – is readily categorized as positive, at least for ROC USA. Here’s how Golden opened her report,

When a landlord sells a mobile home park1, it can upend an entire community. Through co-ops, residents are finding a way to stay where they live and control their rent costs.”

It’s frankly a common theme in academia, and in mainstream media reports.  That point about “insecurity” for manufactured home owners in a land-lease is often played up by Prosperity Now (formerly, CFED), or resident activist groups such as NMHOA, and MH Action.

Golden cites Jim Wallace, a resident in a community who she says is “now a 71-year-old retired manufacturing engineer.” “I was doing some pacing on the floor,” said Wallace, when the community he lived in for years was about to be sold by its owner.

I was doing some pacing on the floor,” said Wallace.

Per CityLab’s account, “Wallace and the other members of the 25-home community had a plan. For years, the residents had wrestled with the fact that they have little to no say in the park’s long-term future. So in July, they wrote a letter to the landlord, expressing their concern. “We wanted assurance that our homes would be safe for us to enjoy in the future,” said Katy Bowen, president of the Duvall Riverside Village’s board of directors and one of its residents. The next month, the landlord sent them a letter offering to sell them the property.”

They formed a co-op, got a loan, and bought the 4.5-acre land, about 25 miles northeast of Seattle, for $1.18 million,” said Golden. “With that, they officially became Duvall Riverside Village.”

Golden’s story references the Manufactured Housing Institute (MHI) on a factoid that’s likely accurate. Namely, that the average income of a mobile or manufactured home owner hovers around $30,000.

But her CityLab report also references some other claims, including from Apartment List, which published a report that’s a mixed bag of accurate and problematic data. Golden’s figure on the number of communities comports with no known source, so perhaps she split the difference between what MHI and a source like “Frank and Dave” use.  As she put it: “an increasing number of approximately 40,000 mobile home communities1 in the United States have opted to take landlords out of the equation.”

Frank Rolfe, Dave Reynolds, George Allen, Manufactured Home Community Controversy Continues

That may be technically true, but if someone reads that as if there is a wave of ROCs, that’s not true. ROC USA’s president, Paul Bradley, has told MHProNews that they can convert roughly 15 communities a year as they are currently configured.  Would they like to do more?  In time, of course.

By the way, Mike Bullard told MHProNews today that they attempt to educate those they speak to about the proper terminology.  He also said that crane’s are obviously rarely used in the moving of a HUD Code manufactured home.

Here’s part of how Golden reported, “Owners [of manufactured homes] also must be able to afford the $5,000 to $15,000 price tag that may be needed to move the structure. Bullard said the process involves a crane and a truck, and often additional vehicles to escort the oversize load.”

 

Why the ROC Articles Matter, Lessons Learned?

The industry faces a real image issue that MHI and thousands of others in our industry have arguably only put their toe in the water on addressing.

Consider the comment below, posted on Golden’s article:

Gary_Gilmore: The housing solution that no one wants. No developer wants this – no profit. No architect wants it – no glory. No neighbor wants this – too much drain on the tax base.”

Almost every word of the above is demonstrably inaccurate.  But there’s plenty of evidence that there are millions who believe similarly.  Until MHProNews posted a reply, that statement went unaddressed.  Why?

Moving on, ROC USA has for years had overwhelmingly positive media. While they are at times misunderstood within the industry, that’s perhaps due in part due to the action of groups apart from ROC – like NMHOA or MHAction. When they demand ROCs, people believe they must be in cahoots with Bradley’s group.

There’s evidence to the contrary, like Bradley’s reply to the rent control issue.  As the commentary linked below from Bradley to MHProNews reflects, his view on rent control is hardly the position of NMHOA or MH Action.

 

Fair and Balanced on CFED – plus – Another View On Rent Control

So beyond the industry, where some totally get Bradley and company’s vision, and others don’t (joke – welcome to that club), ROC USA is widely admired.  Try to find a negative article in mainstream media that includes ROC USA.

You’ll be hard pressed to do so.

ROC isn’t the only one that gets positive media, but consider how often the industry gets negative media. Each one of those stories – good, bad or meh – are wake-up calls for manufactured housing professionals.  Just consider the series of largely negative stories on Clayton Homes in the Seattle Times, Buzz Feed and others.  While Clayton gets positive media, those are often fawning fans of Buffett who are bragging about their latest acquisition of a site builder.

The bottom line is that ROC USA is a bright spot for the industry’s story, but they shouldn’t be the only one.  There are, as Bradley has told MHProNews, numbers of good community operators who safeguard resident interests.

Bradly has also encouraged that the industry clearly define land lease communities that protect resident tenancy, and those who may sell out for redevelopment.

Promoting Manufactured Home Ownership – With “Only 1 in 100 Eaten by a Lion”

It’s the kind of advice that professionals should consider, because it comes from a voice that has carved a positive name for their brand in an often unjustly dismissed industry. Perhaps the new communities association that is being formed will take on this issue? Doing so well is arguably worth tens of billions of dollars in more revenue for the industry every year.  “We Provide, You Decide.” © ## (News, analysis, and commentary.)

Footnote 1 Typo or terminological error is in the original. For a better understanding of industry terminology, click here and here.

Related Reports:

“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”

Good News With Harmful Twist, Anti-Community Owners MHAction Activist Grabs Headlines

New Manufactured Home Industry National Association Related Statements

 

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

 

“Trailers for Sale or Rent,” “Pencil Head, Its Not a Trailer Park,” Manufactured Home Rental Reality Checks

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

John Wake, FSBOs, Forbes, Real Estate Decoded, Mobile Homes or Manufactured Housing Resales

July 19th, 2018 No comments
JohnWakeFSBOsRealEstateDecodedForbesMObileHOmesorManufacturtedHousingResalesDailyBusinessnewsMHProNews

The home above was shown as a manufactured home being sold by owner in a Google search on this date.  For those who aren’t familiar with the higher roof pitches found on some manufactured homes, click here to see other surprising examples of today’s manufactured homes.

The National Association of Realtors is usually a good source of statistics but they’ve gone off the rails with this factoid,” says John Wake in a new column on Forbes.  Wake’s column should get manufactured housing industry professionals and investors thinking.

 

Wake was looking at a tweet by the National Association of Realtors ™ (NAR), that he questioned (see below). He pointed to research done in the Madison, WI market that reflected an independent study of the relative performance between

  • selling a home via a real estate agent that uses the MLS (Multiple Listing Service),
  • vs. those on a “For Sale By Owner” (FSBO, pronounced “fizbo”) website.
RealEstateTweetAnalyzedByJohnWakeForbesManufacturedHousingIndustryDailyBusinessNewsMHPronews

Let’s note that the data may be true, for reasons that Wake cites. Is it an example of how information can be used for good or ill?  Is it just ‘marketing?’ 

Wake saves readers time by getting to a bottom line of that Madison study that is meaningful to the manufactured housing industry, investors, researchers, and others.

It’s not that homeowners who sell their homes themselves sell them for less money, it’s that homeowners who sell less expensive homes (mobile homes, manufactured homes, condos and single-family homes in rural areas) are more likely to choose to sell their homes themselves, “For Sale By Owner.” – said Wake.

If you’re selling a mobile home that costs as much as a used car, for example, you’re very likely to sell it the way you would sell a used car, directly from you to the buyer with no broker in between,” stated Wake. “Mobile and manufactured homes are six times more common among FSBO home sales than among agent-assisted home sales.”

TerminologyMattersBecausetheTerminologyDescribestheConstructionStandardsHomeBuiltToSteveDukeLMHAaMHLivingNewsMHProNewsBiggerPocketsSunshineHomesRedBayAL

Scholastica “Gay”  Cororaton, CBE in “The Market for Manufactured Homes” for Realtor University ®, and John Wake both made clear efforts to get the terminology right, and should be commended for doing so.  The graphic above is for first-time visitors that may not realize that there is a difference between a mobile home – the home above – and a manufactured home, second home, below.

 

Who is John Wake?

Hey, I’m John Wake, founder of Real Estate Decoded. I use my unique (weird) combination of 7 years as an economist and 14 years as a real estate agent to help home buyers and house sellers learn how real estate really works.” – states the About Us page of his website.

JohnWakeRealEstateDecodedManufacturedHousingIndustryDailyBusinessNewsMHproNews

John Wake, Real Estate Decoded, Forbes Contributor.

The Wisconsin study found a 0% price difference between homes sold directly from sellers to buyers without real estate agents (FSBOs), and homes sold with the help of real estate agents,” said Wake, who linked to the Madison study, which is found at this link here.

 

Wake’s Takeaway

I agree the vast majority of people are far better off using a real estate agent to help them sell their homes,” said Wake, who concludes his Forbes column by saying the following.

But real estate agents should be able to convince home sellers of all the advantages without resorting to scare tactics like in the tweet.”  The tweet he referenced was the one shown above from the NAR.

 

The Manufactured Housing Industry Professional’s Takeaway? #1

Kevin, it seems to me that the problem of your industry is resale.” said Warren Buffett, according to Kevin Clayton in the video posted below.

 

 

Before one embraces or rejects that statement by Buffett based solely on who said it, consider this.

The challenge for us all is that bias enters into what we read, watch, say, think, and do.

That reality about bias is why publisher, consultant, and industry expert L. A. “Tony’ Kovach advocates a “wheat and chaff” approach in reading and analyzing objectively, based upon evidence. In brief, the wheat and chaff principle encourages accepting good information, regardless of the source, while rejecting or culling out whatever is problematic.  That’s what farmers at harvest time did for centuries, separated good grain from the inedible-by-humans chaff.

On the resale point, Tony has long argued that Buffett is correct, based upon the evidence.

Wheat, Chaff, and the Monday Morning Manufactured Housing Sales, Marketing Meeting

Editorially, we concur with Wake that the vast majority of what the NAR ™ publishes does seem to be accurate.

But as the Daily Business News noted yesterday, their recent report on manufactured housing – as overall sound as it is – did have some factual errors, but fewer than say some Manufactured Housing Institute data can be.  Analytically speaking, there were also some points beyond the scope of Scholastica “Gay”  Cororaton’s “The Market for Manufactured Homes” otherwise fine research published in Realtor University’s Journal of the Center for Real Estate Studies that needs to be considered if one is to have a more complete picture of manufactured housing today. Among those are points are ones like the one that Wake raised. Cororaton‘s important research is posted at the link below.

 

“Market for Manufactured Homes,” Scholastica “Gay” Cororaton, for Realtor University, Analysis and the Manufactured Housing Institute (MHI)

 

Wake is correct in saying that manufactured housing is often not sold by real estate agents.

Those in the real estate field that learn how to market and sell manufactured homes (MH), often embrace manufactured housing (MH) as a quality housing option. The video interview below of real estate agent Linda Hazelhoff, who’s husband is a custom builder, is an example that realtors who take the time to learn the industry, are often impressed.  Those that decide to really understand the nuances of the manufactured housing business, profit from it.

 

 

Realtors and Builders Warm Up to the Wonders of Manufactured Housing

Millions, including some within the ranks of manufactured housing, do not question “why” something is as it is.

Susan Brenton, with the Manufactured Housing Communities of AZ association, was understandably excited when about the possibilities of working with real estate agents in her state.  See Brenton’s insights on that later in the linked post, below.

 

Law Allows Real Estate Personnel to Sell Homes in Your Manufactured Home Community

 

Equal access to:

these are all among the debatable reasons why manufactured homes are only a fraction of the total sales they once were or could be.

Whether you think you can or whether you think you can’t, you’re right.” – Henry Ford, reads a quote under Tony Kovach’s contact information in his emails.

Understanding the realities of the industry, and helping others to see those realities, are critical for manufactured home sales to achieve a potential of 500,000 to 1,000,0000 plus new home sales annually.

LowerMonthlyPercentCostManufacturedHomesConventinoalHouseRentalHousing2016narRealtorUDaiyBusinessNewsMHproNews

The bulk of Scholastica “Gay” Cororaton’s research appears to be accurate, and is insightful for serious researchers. See the report, linked here.

Rollohome demonstrated that a factory builder can go from a start up to 60,000 new homes produced in just two year.

Rollohome, Creating 60,000 Factory-Built Homes in 2 Years

New factories are opening.

Companies like Legacy Housing or Sunshine Homes have demonstrated the independents can compete, despite the challenges caused by Warren Buffett’s strategic “Moat.”

John Wake and Scholastica “Gay” Cororaton have each in their own way done an important service to manufactured housing. How well and with what speed will the industry’s professionals and investors embrace the lessons and opportunities? “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

“Take the MH Advantage Challenge – Can You Tell the Difference?” Fisk of Sarah Edelman, Director of Duty to Serve, Single-Family Mortgage Business for Fannie Mae

What local officials may or may not realize, is that there is more than a legal cost to their town for discrimination against affordable manufactured homes. There is an economic and development cost too. The report below reflects an academic view that it can costs even modest sized cities millions, and the nation some $2 trillion a year, because of discriminatory land use that harms affordable housing such as manufactured homes. Read the report and downloads from the article below for more details.

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

 

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

“Market for Manufactured Homes,” Scholastica “Gay” Cororaton, for Realtor University, Analysis and the Manufactured Housing Institute (MHI)

July 18th, 2018 No comments
MarketforManufacturedHomesScolasticaGayCoronatonManufacturedHousingInstituteMHILogoAnalysisDailyBuisnessNewMHProNewsLogo

Collage above is from Realtor University ®, Manufactured Housing Institute (MHI) logo, and designed by MHProNews, with images shown under fair use guidelines.

Compared with the unregulated mobile/trailer homes of the past, the manufactured homes built after 1976 have a higher level of safety, durability, and quality, and the small fraction of homes damaged during hurricanes attests to their safety and durability. New design features and multi-section homes are increasingly giving them the look of traditional site-built homes. These safety standards and improved features should lead to the increasing acceptance of manufactured homes as a safe, durable, and affordable type of housing.”

–   Scholastica D. Cororaton, Certified Business Economist (CBE), National Association of Realtors ® (NAR).

 

Scholastica “Gay” D. Cororaton, CBE, took a statistical dive into the manufactured housing industry in a report published in the National Association of Realtors ® (NAR) related Realtor University ® Journal of the Center for Real Estate Studies publication for May 2018.

ScholasticaGayDCororatonDBEResearchEconomistNationalAssociationRealtorsWashDCManufacturedHousingIndsutryDailyBusinessNewsMHProNews507

Composite information from LinkedIn.

Manufactured housing is an affordable housing option, especially among lower income groups. Households who obtain chattel financing for mobile/manufactured homes and who rent the land will tend to spend less on housing expenses (mortgage, interest, mortgage insurance, taxes, land rent) compared to households who obtain mortgage financing for the mobile/manufactured home and the land, even if chattel financing (interest) costs are higher (because the loan value is higher in the latter). However, if the house-hold already owns the land, then mortgage financing for the manufactured home only is less costly than obtaining chattel financing. However, taking account of both the appreciation in the value of the land and the cost savings, households who lease the land will likely accumulate less wealth compared with households who own the land.”

As the above pull-quotes reflect, The Market for Manufactured Homes,” is a arguably a good reflection on Cororaton, the NAR and in many respects for manufactured housing too.

She told the Daily Business News on MHProNews yesterday that this was her first serious foray into the world of manufactured housing.

Most of her nomenclature was well done, which sadly can’t be routinely said about much of the mainstream media, or other researchers.  Overall, she produced a largely positive, useful document.

That said, there are some errors, which we will explore.

 

The Review Plan

First in reviewing NAR’s “The Market for Manufactured Homes,“ this analysis notes the largely-solid information from Cororaton’s research.  There are potentially some areas that one might discuss the why, behind the what, which will be addressed briefly further below.  But in fairness to Cororaton, that could be viewed by NAR as going beyond a strictly data-driven report.

That said, this review will spend significant digital ink looking at a few data and graphical points that were errant, and how that came to be.

Why?

ManufacturedHousingHomesSingleDoubleMultisectionAveragePricesComparedConventionalHomesSizeCostPersqFt2016NationalAssocRealtorsDailyBusinessNewsMHproNews

From Scholastica D. Cororaton, Certified Business Economist (CBE), research for National Association of Realtors ® (NAR).  Solid, useful data is shown above.

The purpose for correcting-the-record is to support the accuracy about the bulk of her data for manufactured housing, pure and simple. It is not to undermine her largely valuable work.

Accuracy matters, a point which Cororaton gracefully agreed to by email and telephone yesterday.

ManufacturedHomeShipmentsbyState2016NARscholasticaGayCororatonDailyBusinessNewsMHproNews

The bulk of Scholastica “Gay” Cororaton’s research appears to be accurate, and is insightful for serious researchers on affordable, quality, manufactured homes. 

As prominent Manufactured Housing Institute (MHI) member Frank Rolfe told MHProNews last year, the manufactured home (MH) industry is in serious need of accurate information.

Lenders, investors, and reporters are all looking for accurate information, said Rolfe (note: that same point is true for affordable housing advocates, public officials, and obviously home seekers). Rolfe’s comments were part of a conversation separate but related conversation to the report featuring him and others connected with MHI, found at this link here.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

The NAR research could have benefited from some visuals of modern manufactured homes. That said, the thrust of the research is useful.  The above is provided by MHProNews, and wasn’t part of the NAR research. 

 

AveragePriceNewManufacturedHomesOctober2017NationalAssocRealtorsDailyBusinessNewsMHproNews

 

Accuracy, Accountability and The MHI Connection

Before taking a brief look at the important NAR research on manufactured housing, some background is useful.

Two Manufactured Housing Institute (MHI) staff members, plus an MHI paid consultant, were identified by NAR’s Cororaton report as having provided her data, as well as for reviewing early drafts of the information Realtor University ® published.

“…Jenny Hodge, Vice President Research & Market Analysis, Kara Beigay, Senior Director of Government Affairs, and Marc Lifset, Consultant, of the Manufactured Housing Institute for their invaluable comments on the earlier draft and industry insights,” said Cororaton‘s acknowledgment footnote.

All three MHI team members were electronically contacted by MHProNews to check to see if they had noticed any factual errors. MHI’s current and prior chairman were also CC’d.

MediaHouseholdInocome2016ByTypeTenureInThousandsManufacturedHomeConventinalRentingDaillyBusinessNewsMHproNews

The previously responsive MHI – which for years gave timely replies to MHProNews – did not respond to our inquiries on this issue.

By contrast, NAR’s Cororaton was prompt in her reply, and open to an immediate discussion of any concerns about factual errors.

What’s fascinating is that as of this date and time, this largely useful report is entirely absent from a Google search result for “The Market for Manufactured Homes,“ and the Manufactured Housing Institute (MHI).  Nor is it apparently on the MHI research page of their website.

Why not?

2018-07-18_1429MarketForManufacturedHousingDailyBusinessNewsMHPronews598

Further, why has there been no effort by MHI to promote a largely useful third party NAR report?

That absence, and the NAR reported absence of any follow up by MHI to have the glitches corrected, are both revealing.  They beg questions like these:

–   Did MHI review the work they participated in, once it was published by Realtor University®?

–   Since MHI staff and their consultant reportedly reviewed the draft, was there no one among them who found these errors?

–   If MHI reviewed and found the errors noted, why did they not contact Cororaton, and ask her to effect corrections?

–   Since the bulk of Cororaton‘s NAR research is useful, why hasn’t MHI put out press releases, or other media outreaches, to promote this information? Especially since it could arguably win over converts to manufactured housing? See the dearth of references from Google on this topic, in the screen capture, above.

–   Perhaps as important, why hasn’t MHI done a similar level of scholarly research, or commission truly useful third-party research?

For an association – MHI – that claims to represent ‘all aspects of factory-built housing,’ how is it that they routinely fail to properly protect and promote the industry?

LowerMonthlyCostManufacturedHomesConventinoalHouseRentalHousing2016narRealtorUDaiyBusinessNewsMHproNews

The bulk of Scholastica “Gay” Cororaton’s research appears to be accurate, and is insightful for serious researchers.

After some years of internal and external pressure on MHI, in fairness, they have produced a few articles, controversial advertorials, and arguably meh videos.  But these have gone largely unused, seem to be ineffective – based upon shipment data – and often contradict known facts – or even other MHI ‘data,’ as MHProNews has previously documented.

That debatable point brings serious minds back to the point Rolfe raised.  Namely, that the HUD Code manufactured home industry needs dependable information.

LowerMonthlyPercentCostManufacturedHomesConventinoalHouseRentalHousing2016narRealtorUDaiyBusinessNewsMHproNews

The bulk of Rscholastica “Gay” Cororaton’s research appears to be accurate, and is insightful for serious researchers.

 

Cororaton and the NAR Research

The impression from the NAR economist was that she understood the concerns MHProNews raised, and that they would be addressed.

Rephrased, Cororaton was professional, and appeared to be sincerely interested in better understanding the reality of manufactured housing (MH).  She said she wants to get the facts about the MH industry’s stated accurately.

The impression from Cororaton was that no one from MHI had contacted her with any factual concerns.

As noted, her report clearly says she valued the 3 MHI team member’s input, and she holds only herself responsible for any factual errors. Classy, and that’s the mature, educated, and professional posture.

  • That said, why doesn’t MHI have a similar attitude about accountability and accuracy? 
  • Why have they for some two years, failed to take ownership of demonstrable failures and fact errors, and make their own corrections? 
  • Why have they failed to engage with this pro-industry trade media?

It’s the failures of MHI, which reportedly led 2 state associations to leave their membership, and more recently, to start their own national association.

OddsofLivingInMobileManufacturedHOmesByRegionNARDataScholasticaCororatonDailyBusinessNewsMHproNews

 

The Specific Concerns

The first error in the NAR report is relatively minor, which Cororaton quickly acknowledged.

The date that the manufactured housing industry’s standards went into effect is June 15, 1976. Mark Weiss, JD, President and CEO of the Manufactured Housing Institute (MHI) confirmed that date for the NAR economist, and cited relevant part of the law.

Quoting Weiss’ message to Cororaton:

MarkWeissMHARRPresidentManufacturedHousingIndustryDailyBusinessNewsMHProNewsScholastica:

Regarding the below, thank you for your interest in manufactured housing, although I must concur with trade publisher Tony Kovach’s initial point.  Specifically, per 24 CFR 3282.1(a), the effective date of the federal (HUD) manufactured housing standards was June 15, 1976, not June 16, as stated in your article…”

Cororaton was but a day off on the start-date for manufactured housing. Not a huge issue, but facts are facts.  Accuracy on details arguably undergirds the rest of a document’s research. She was matter of fact, concurred, and thankful for the correction.

Another issue in her report – and a more serious one – was the graphic and related data below.

MarketforManufacturedHomesScolasticaGayCoronatonManufacturedHousingIndsutryDailyBuisnessNewMHPronews

It is the first map in the NAR report, and thus, significant in that it can set the tone for the accuracy of the rest of her research. The first clue was Hawaii, which caused a deeper look at the rest of their data.

The Realtor University ® data indicated that several states have a larger percentage of manufactured homes than they actually do.

2014ManufacturedHousingIndustryWhitePaperDailyBusinessNewsManufacturedHousingIndsstryResearchDataReportsMHProNews

That stands in contrast to the CFPB’s white paper, which is a document that was a resource for the NAR report. MHI’s consultant, Marc Lifeset, certainly is familiar with that CFPB white paper, because he’s previously told MHProNews as much.  No doubt others at MHI know the CFPB white paper too.

This percentage of homes error by state error is a more serious oversight, as public officials and others from or familiar with those states are likely to notice those factual glitches.

Why didn’t MHI notice these apparent factual errors?

 

Vital – 5 out of 5 Stars in Importance – Related Discussion for Manufactured Housing

Among the most important items discussed with Cororaton during a 90 minute call was the following. It relates to the discussion of the factors that cause appreciation and depreciation of any housing, including manufactured homes.

This NAR economist and this writer walked through what are the factors that cause appreciation and depreciation in all housing, including conventional homes or manufactured homes. We agreed upon the following (not in a specific order of improtance):

–   Location,

–   Condition of the home,

–   Local economy (jobs, opportunities),

–   Supply and Demand, and

–   Availability of financing.

Because financing is an ongoing issue for manufactured housing, the support for resale values – especially for resales in land-lease – are not as robust as they are for homes on privately owned land.

Cororaton agreed that the contraction of financing options caused conventional housing values to crash in the 2008-2009 mortgage/housing crisis. As lending began to return, conventional housing resale values rose.

When that same principle is applied to manufactured housing, one of the key reasons why manufactured homes don’t always appreciate the same as conventional housing comes into greater focus.

Conventional housing can be purchased and financed long term far more readily than manufactured homes. That’s true, even for conventional housing on a land-lease, in states like Maryland, Hawaii, and in parts of the Chicago metro, among others. Long-term mortgage financing has been done on land-lease too, for manufactured homes.  But its not something that MHI has actively pursued for years, per several sources.  Why?

In practice, it’s been well over a decades since an MHI task force dove into mortgages on land-lease.  The tests, per sources, were successful.  So why was there no robust follow up?

It is an advantage for manufactured housing to have both chattel (home only, personal property) lending options, and to also have mortgage options that operate at parity with conventional housing.

This is a crucial topic to home buyers and sellers, yet it goes largely unmentioned in MHVille trade media, save here on MHProNews.  It’s the kind of topic that a truly growth-oriented, post-production association should be promoting.

So why isn’t MHI pursuing it?

Could it be because MHI’s top two lenders – 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) – are both Berkshire Hathaway owned?  And wouldn‘t more real estate type financing potentially impact a profit-center that Warren Buffett has often bragged about in his annual letter to shareholders, and touted elsewhere too?  See related linked reports, at the end of this post for more details.

MonthlyPaymentEquityGainManufacturedHomesComparedNewSingleFamilySigeBuiltHomesNARScholasticaCororatonDailyBusinessNewsMHproNews

The discussion of appreciation and related with manufactured homes must be seen through the prism of more access to FHA, VA, USDA (Rural Housing), GSE and other lending. See discussion, above.  An important takeaway is that manufactured homes can and do appreciate, as other research has also demonstrated.

 

Part One – the Bottom Lines

Gay Cororaton did an overall fine, professional report that was data focused.  She explained that the point discussed above about financing access and resale values was not part of the scope of her initial data-based report. That’s understandable.

Cororaton indicated that she would see what could be done to correct the fact errors, and that she plans to revisit manufactured housing in her blog posts.

The National Association or Realtors ® (NAR) dwarfs MHI, and the entire manufactured housing industry in size and scope. That said, there is much that the MH Industry could learn from NAR.

As thousands of daily, long-time, detail-oriented industry readers of MHProNews know, this publication routinely cites NAR for their valuable research.

We specifically cite Dr. Lawrence Yun, PhD, Chief Economist and Senior Vice President. He’s arguably an accuracy and analysis rock star.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

The hope should be that NAR’s and Cororaton’s anticipated revised work on manufactured housing provide fuel for more evidence-based interest, investments, and embracing of the manufactured housing solution to the affordable housing crisis. Manufactured homes are a solution that’s been hiding in plain sight, a mantra started on MHLivingNews, and since picked up by others in and out of the MH industry.

Further, perhaps the NAR research will inspire in Arlington, VA a desire for greater accuracy, accountability, and willingness to correct errors.

As almost every industry veteran can confirm, when someone ‘stumbles upon’ the truth of manufactured housing – vs. the myths and misconceptions – professionals and the home buying public alike are impressed with the value found in modern HUD Code manufactured homes.

The path to growing the industry to a potential of some 500,000 to 1,000,000 (+/-) or more new HUD Code manufactured homes a year must include fact-reason-and-evidence based education.

MHI, and all others, are either part of the problem, or part of the solution. On that point, Rolfe is right. Accurate facts, defense, and proper engagement of the industry with the mainstream media and researchers very much matters.

Cororaton’s full report by NAR is found linked here, beginning on page 48 to page 78.  “We Provide, You Decide.” © (News, analysis, and commentary.)

(Third-party images are and content are provided under fair use guidelines.)

Related References:

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

 

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

Updated, added related resource:

John Wake, FSBOs, Forbes, Real Estate Decoded, Mobile Homes or Manufactured Housing Resales

 

Investors, Heartbroken Home Owners, Site Building Giant DR Horton, and Manufactured Housing

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Lawsuit Filed Against City to Defend Manufactured Home Owners Rights, led by Equal Justice Non-Profit

July 18th, 2018 No comments
LawsuitFiledagainstCityofNewarkARDefendMobileManufacturedHomeOwnersEqualJusticeUnderLawNonProfitDailyBusinessNewsMHProNews

Collage, illustration design by MHProNews.

NEWARK, ARKANSAS – on Tuesday, 7.17.2018, Equal Justice Under Law – a national civil rights organization based in Washington, D.C. – filed a federal civil rights complaint against the City of Newark for blocking and banishing residents simply because they do not own an expensive home.

 

In 2015, the Newark City Council [AR] passed an Exclusion Ordinance forbidding any mobile home worth less than $25,000 (single-wide1) or $35,000 (double-wide1) from existing within the city limits,” Equal Justice told the Daily Business News on MHProNews in a statement. “Failure to do so is punishable with fines up to $500 a day.”

Newark’s poverty exclusion scheme heightens a serious problem across the state of Arkansas: a lack of access to affordable housing,” stated Chrysse Haynes Director of Communications & Development for Equal Justice Under Law.  “For every 100 working family households living on extremely low income, the state has only 50 affordable homes available. Many Newark and nearby residents, including our plaintiffs, are personally affected by this – who either cannot find affordable housing or who are prevented from offering it.”

Among those affected are Veneda and Robert Marshall a retired married couple.

In order to supplement their social security income, they purchase used manufactured homes, which they fix up and rent out throughout Newark, AR.

With a vacant lot available on Thomas Creek Drive, the couple decided to place a multi-sectional manufactured home there.  But they were prevented from doing so because it did not appraise at $35,000. Yet, dozens of interested responses came to the Marshall’s from an online rental listing.

The Marshall’s stated that they are committed to providing affordable and safe housing to local residents. None of their four properties have ever been cited for a health or safety violation.

DefendManufacturedHomeOwnersRightsAgainstCityLedByEqualJusticeNonProfitNewarkARPhotoMHproNews

This is an important legal action for manufactured home (MH) owners, affordable housing advocates, public officials, and MH industry professionals to consider. Photo supplied by Equal Justice, text graphic added by MHProNews.

Equal Justice believes the city’s arbitrary ordinance is preventing a retired couple on a limited income to utilize the property and resources they have available to them, while further exacerbating the need for affordable housing citywide.

PhilTelfeyanExecutiveDirectorEqualJusticeUnderLawCivilRightsNonProfitDailyBusinessNewsMHProNews

Provided under fair use guidelines.

Executive Director of Equal Justice Under Law Phil Telfeyan says, “a society and the basic principles of fairness embodied in our Constitution.”

Equal Justice Under Law seeks a declaration from the federal court that the Exclusion Ordinance unconstitutionally discriminates and penalizes individuals based off their wealth status, and seeks an injunction prohibiting the City from banishing residents simply because they are poor, and want to live in an affordable, safe, manufactured home.

 

Key Manufactured Home Industry Takeaway

While Equal Justice is suing on behalf of citizens who want to own an inexpensive manufactured home, this suit and a prior one that was already successful are arguably legal actions that benefit manufactured home sellers too.

The MH Industry and our industry’s millions of home owners owes a note of thanks to the Equal Justice non-profit. See related reports for more details. Editorially, MHProNews applauds such efforts.

 

About Equal Justice Under Law

Equal Justice Under Law offers pro bono assistance to those most in need, giving voice to the silenced and disenfranchised. Our work focuses on a range of criminal and social justice issues. Since our founding in 2014, we have filed 31 lawsuits in 12 states and Washington, DC to end wealth-based discrimination and create a justice system that is truly equal,” the nonprofit told MHProNews. ## (News, analysis, and commentary.)

Footnote 1) The terminological error is in the original statement, the preferred terminology for a manufactured home, which is what these described homes are, would be single-section and multi-sectional.  Equal Justice will be advised of that, for more details on proper terminology and its significance, see the article linked here.

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

“Mobile Home Ban” Suit Win, “Equal Justice Under Law,” Manufactured Home Owners, Buyers, Industry

McCrory Lawsuit – “Significant Victory Against Zoning Discrimination” – Manufactured Homes

What local officials may or may not realize, is that there is more than a legal cost to their town for such discrimination. There is an economic and development cost too. The report below reflects an academic view that it can costs even modest sized cities millions, and the nation trillions a year, because of discriminatory land use that harms affordable housing such as manufactured homes. Read the report and downloads from the article below for more details.

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

 

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Balancing Capital Requirements and Access to Credit

July 17th, 2018 No comments

BalancingCapitalRequirementsAndAcesstoCreditWashingtonDCManufacturedHOusingIndsutryDailyBusinessNEwsMHproNews

WASHINGTON, D.C. – The Subcommittee on Financial Institutions and Consumer Credit met today.  They examined the existing regulatory structure for prudentially regulated financial institutions, with a view to exploring avenues how Congress and regulators can address challenges through policy changes.

 

While I believe in robust capital requirements, I don’t think capital should be required to the point that it consolidates risk and eliminates choice in the marketplace for commercial and individual clients.  The reality is that we still live in a world where the financial regulatory regime stifles growth and limits the availability of financial products,” said Subcommittee Chairman Blaine Luetkemeyer (R-MO), via a release to the Daily Business News on MHProNews.We need smarter, tailored regulatory regimes that promote not just transparency, but also effective consumer and systemic protections.”

As many manufactured housing industry professionals know that lived through the credit and capital crunch that began after the industry hit its peak in 1998, these are issues that have be near top-of-mind for business and association leaders.

Key Takeaways from Today’s Hearing

  • Under the Dodd-Frank Act, the largest financial institutions were subjected to new rules on matters ranging from capital adequacy guidelines to the creation of living wills.
  • The post-financial crisis Dodd-Frank era brought about more aggressive and adversarial relationships between financial institutions and federal financial examiners, even on standards that had been in place for decades.
  • Passing regulatory reform is a critical first step to ensure a fairer and balanced federal financial regulatory structure, but much work remains to simplify the complex and overly burdensome system of financial regulation.

 

HouseFinancialServicesCommitteePressReleaseDailyBusinessNewsMHproNews598

Topline Quotes from Witnesses

With nearly a decade of regulatory changes behind us, now is the time to conduct a holistic review of the post-crisis framework and to make adjustments that would foster greater efficiency and transparency and effectively balance the important goals of a safe and sound financial system with one that best supports economic growth and job creation… Integration of the stress testing and capital regimes to achieve a more simplified and harmonized capital framework is a laudable goal… The Federal Reserve should undertake a broader review of its capital and stress testing programs to ensure that boards of directors at financial institutions can clearly and appropriately make capital management decisions.” – Kevin Fromer, President and CEO, Financial Services Forum.

The current capital regime has some clear attributes but also some fundamental and important flaws. We now take for granted two of the most important post-crisis reforms… First, capital requirements now focus heavily on common equity rather than hybrid capital instruments that did not prove sufficiently loss absorbing in crisis. Second, off-balance-sheet exposures are now much better captured and capitalized. One could argue that these two changes alone would have been sufficient to prevent a recurrence of the stress on the banking system seen in the last financial crisis. Obviously, regulators did not stop there.” – Greg Baer, President, The Bank Policy Institute.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) imposed a series of capital regimes on financial institutions with more than $10 billion in total consolidated assets… there are large swaths of Dodd-Frank-related regulatory costs that have nothing to do with the causes of the financial crisis… The bottom line is that in exchange for a safer banking system, the U.S. sacrificed economic vitality and growth. It is difficult to quantify this with any precision… but it underlies the sentiment that Dodd-Frank simply went too far.” – Douglas Holtz-Eakin, President, American Action Forum.

The U.S. banking sector is an important segment of the economy that serves as the primary provider of credit to our communities, to consumers and small- and large- businesses alike, and is a vital engine of growth and innovation in our economy… today, moderately-sized regional banking organizations with traditional and straight-forward business models that provide communities with their traditional banking needs, such as getting loans and having a place to make deposits, have been generally subject to the same stress testing, risk management, capital, and liquidity requirements that are applied to firms that are materially larger and more complex. These requirements have adversely impacted the lending activities of regional and community banks, and have increased the price of, and reduced the access to, credit for families, small businesses, and other job creators in our economy.” – Keith A. Noreika, Partner, Simpson Thacher & Bartlett.

See the related report, linked below, for some of the bi-partisan movement in capital and credit reforms that are being advanced. ## (News, analysis, and commentary.)

(Third party images, content are provided under fair use guidelines.)

Related Reports:

Jeb Hensarling & Maxine Waters Unveil Bipartisan Capital Markets Reform Legislation

 

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews
2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Opportunities for Savvy MHProNews – Replacement or Repair Programs for Mobile Homes or Older Manufactured Homes

July 17th, 2018 No comments

 

OpportunitiesForSavvyMHProNewReplacementsProgramsforMobileHomesOlderManufacturedHomeOwnerCenterDaiilyBusinessNewsMHProNews

In states and local jurisdictions from coast to coast, various private or public agencies offer programs that provide grants, low cost loans, or other assistance in obtaining repairs or even replacements for aging mobile home or older manufactured housing units.

 

These types of programs routinely have income and other qualifications.  They are routinely a recognition that manufactured homes are an important resource in affordable housing efforts.  It’s interesting to note that several of these programs use the correct industry terminology, that sadly eludes many in the mainstream media. 

An example of such a program is found below, which was brought to the attention of the Daily Business News on MHProNews via a media release.

ReplaceMobileHomeswithNewManufacturedHomesMHPronews

Check with your local agencies to see what types of homes qualify for these programs.

Before diving into the details of that specific program and release, savvy professionals who retail homes and want to sell more new homes should ask certain questions.

·        What program(s) are available in my market(s)?

·        What are the qualifications for that program(s)?

·        How can a retailer – or manufactured home community – best position itself to sell a home to those who qualify?

LegacyHousingHurricanOverrunWholesaleEvent200x200ManufacturedHomeINdustryMHProNews

Click to learn more about this upcoming wholesale event.

With an estimated 2 million plus pre-HUD Code mobile homes, plus some of the mid-to-late 1970s manufactured homes, the potential market is not insignificant. A little time invested in research could yield a steady stream of additional new home business for those who learn the process. 

Keep in mind that some state associations can be a resource in this, others for various reasons may not be.  So be prepared to use Bing, Yahoo, and Google searches to find what’s available in your market(s). Let’s note that there are differences between the search results of those three major search engines, so if one doesn’t reveal the information you seek, use another. 

Often, state housing associations will have a resource list as well. 

The following is an example of one such program.  “Easy doesn’t pay well,” says Sunshine Homes President John Bostick.  This won’t fall in your lap, but once you learn how to navigate the hoops, it can be a benefit to those who get the home, and clearly a new profit center to those who are willing to navigate those opportunities.

 WhatsTheLatestHomeOwnerCenterUticaNYMobileManufacturedHousingINdustryDailyBusinessNewsMHProNews

 

We are now accepting applications for manufactured home replacement assistance! 

The manufactured home replacement program assists low income, rural Oneida County residents in securing new manufactured homes.  

Assistance will be issued as a grant and will cover the cost of the manufactured home replacement, and the installation of a foundation system. THIS PROGRAM IS 100% GRANT FUNDED! GET A NEW HOME AT NO COST! 

HomeOwnershipCenterUticaNYManufacturedHOusingIndustryDailyBusinessNewsMHproNews

This is one of numerous programs operated by private, public or joint funding.

Program eligibility requirements include:

       Must own the land and the existing manufactured home (no liens, mortgages or loans)

       Must meet the definition of low income, and provide documentation verifying income is below 80% of the area median income

       The property must meet the definition of substandard

       Property taxes, insurances and electric bills must be current

       Applicants must occupy the manufactured home as a primary residence

       Must demonstrate proof of ownership for both the manufactured home unit and the property on which it is situated.

       Program participants will be required to complete a Financial Education workshop offered by HOC.

For a complete list of eligibility requirements, or for more information, please contact the HomeOwnershipCenter at (315)724-4197, or visit www.UNHS.org. Completed applications are accepted and reviewed on a first come, first served basis. You may submit your application via email to Home@unhs.org, fax to 315.724.1415 or direct mail to 1611 Genesee St. Utica, NY 13501. ## (News, analysis, and commentary.) 

(Third party images, content are provided under fair use guidelines.)

Related Reports:

 

An Industry with a Heart – The Tomorrow’s Home Foundation

Proper Definitions, Mobile Home, Manufactured Home, or Trailer House – Civil Rights, Respect, Public Policy, & Value Issues

Friday the 13th, Mobile Homes, Fires, Tornado Magnets and the 2020 U.S. Census

NPR-Tornado Hits Mobile Home, Fact Check-Why Terminology Matters to Manufactured Housing Industry, Home Owners, Weather, News Pros

 

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews
2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Huge New Factory-Built Home Wholesale Liquidation Event Announced

July 16th, 2018 No comments
HugeNewWholesaleEventFeaturesFactoryBuiltHomes550x315DailyBusinessNewsManufacturedHousingIndustryMHProNews

Composite image by MHProNews.com.

It’s an event that’s more than double the size of the Louisville manufactured housing trade show’s display.

 

This brand-new event is also much larger than the number of manufactured and tiny homes displayed at the factory-built housing industry’s Tunica Show.

Who’s making this special event happen?

AmericasFastestGrowingPrivateCompaniesINC5000ManufacturedHousingLegacyHousingDailyBusinessNewsMHProNews

Out of millions of privately owned businesses, to be named to this prestigious list is an amazing accomplishment.

Out of millions of American businesses, they’ve been named as “one America’s Fastest Growing Companies” by Inc. Magazine.

Even during the industry’s most difficult times, the strong rise of Legacy Housing in Texas – and beyond – has been observed with keen interest by manufactured home industry professionals, and investors.

Legacy is now announcing a giant “hurricane overrun liquidation sale” at their Eatonton, GA facilities.

The upcoming event – set for September 12 and 13, 2018 – is for manufactured home communities and retailers, – a wholesale buyers only extravaganza.

So, it is not open to the general public.

Less than 2 years ago, Legacy moved into the expansive factory home building facility once operated by Horton Homes. 

So Legacy Housing now has one of the largest factory home building production centers – perhaps the biggest in the country – according to various industry sources.  That means, they’re poised to support the growing demand for manufactured homes in the Southeastern U.S., including Florida and Tennessee.

 

A Legacy Retailer Sounds Off

The Daily Business News reached out to a Legacy Housing retailer that’s sold their products for several years for comments about the popular, and growing company.

Legacy is a partner you can grow with long term. Very good product, they have special retail financing programs, and a liberal floorplan [wholesale financing] program for their dealers too,” said Gus Rodriguez, a principal at Tejas Homes. 

Management sources at Legacy tell MHProNews that they are now the #4 producer of HUD Code manufactured homes in the U.S. It’s an impressive rise to prominence in a short period of time.

LegacyHousingHurricaneLiquidationEatontonGAMHProNews500x335

Learn more about Legacy Housing at this link here, or to learn more about the event, click here or the image above.

Their leadership’s eyes are set on more growth. As prices on new inventory have been rising for all builders, this Legacy event offers manufactured home (MH) retailers and MH Communities in the South Eastern U.S., Florida, and Tennessee the opportunity to restock at special prices and terms.

To learn more about Legacy Housing and their history, click the link here.

To learn more or to register for their wholesale liquidation event in Eatonton, GA – click here or on the graphic above. ## (News, events, analysis and commentary.)

(Third party images, and content are provided under fair use guidelines.)

ConfidentialNewsTipsOKTipsIreportMHNews@MHMSM-comGraphic

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Crawl, Walk, Run – Monday Morning Manufactured Housing Marketing and Sales Meeting

July 16th, 2018 No comments

 

CrawlWalkRunMondayMorningManufacturedHousingMarketingSalesMeetingDailyBusinessNewsMHPronews

No good parent demands that an infant start to walk moments after they’re born. Development of motor skills and intellect takes time. The initial achievement for the normal baby is to learn to roll over, then to crawl, later that first step, walking, and finally a healthy child learns to run.

 

Once learned, the child doesn’t run or even walk constantly. Different activities are needed for different times. 

Once we learn to walk, we can still stumble and fall. Perfection is a goal, but it isn’t one we achieve in this life. That said, the standard should always be excellence.

BeAYardstickofQualitySomepeopleAren'tUsetoEnvironmentWherefExcellenceExpectedSteveJobsPhotoQuoteDailyBusinessnewsMHProNews

Failing to seek excellence hurt many manufactured housing in the 1990s, and it hurt numbers in the mobile home era of the business in the late 1960s and early 1970s. Let’s learn the lessons.

The D.R. Horton Homes story we spotlighted last week on the Daily Business News ought to be mandatory reading for every person that works in manufactured housing.  

Why?

Because it reminds us all that you can spend $300,000, $400,000 or more on a new residence, and that conventionally “site built” house can still have HUNDREDS of defects.

If you missed that D.R. Horton Homes story, the public version of that story is linked here. Link that version from social media. Show it to prospects, in the right way, and only at the right time.

The professional version of that D.R. Horton post is linked below, and should be read later for greater insights. This is a must for every pro, period, regardless of your job in MHVille.

Investors, Heartbroken Home Owners, Site Building Giant DR Horton, and Manufactured Housing

Note that we’ve made that point years before, when we video interviewed for MHLivingNews.com a conventional housing inspector. He spoke then about the problems he found with new homes that cost over $500,000, back at that time.  He told us then that he finds fewer errors in a manufactured home, than in conventional housing. Surprising?  

But regardless of the price, no house is perfect.

 

The High Cost of False Expectations 

The normal person who buys a car knows that it will require new tires, oil changes, brake jobs, and other maintenance.

In the RV business, initial quality is frankly an issue. Who says? Among others, a gent who used to do quite a lot of work for the RV industry, and is currently a vice president at the Manufactured Housing Institute (MHI). He told me that initial quality is an ongoing challenge for RVs.  Yet, RVs cost far more per square foot than the most expensive manufactured home on the market.

That MHI VP is not alone on the initial quality of RVs point. 

So it isn’t just site built houses. RVs, cars – or manufactured homes – that need service and adjustments.  They all do. These are facts. 

In coaching new or even seasoned sales people, the way to handle such issues is to set the right expectations as early on as reasonable with a given prospect. 

If a home being sold to a customer is an entry-level, VOG design (Vinyl over Gypsum, or wall boards that use batten strips), tell the customer at the right point and as early on as reasonable what to expect. Give them a $20 tool kit with the sale of the home, that includes an inexpensive claw hammer.

At the right time, which varies from prospect to prospect, explain that in transport, or as a house settles, that they may see some of those nails or staples pop out some, and that a batten strip can bow.   

Correcting the Record on Housing Affordability, Manufactured Home Shoppers, & MHI

Then, explain or show them how to tap that nail or staple back in.  You begin by telling them something like the following.

Can I give you a dose of reality for a few moments?” 

When they give you their ok, start with something like this.

Some of what I will share will sound negative, but facts are facts. The better you understand the facts, the happier you will be as a home owner.” 

Keep good eye contact. 

Consumer Reports, Fannie Mae, and Harvard University are among the third-party researchers that have cited for years the fact that a manufactured home can last as long as a conventional site-built housing.  That’s amazing isn’t it?  But that doesn’t mean that this or any other kind of home is perfect. ABC News is among the mainstream news media outlets that have said that giant conventional housing builders – like D.R. Horton Homes – may have hundreds of cosmetic or other defects, in a single house.”

Let that sink in for a beat or two, keep that eye contact, and then continue.

VOGEntryLevelManufacturedHomeManufacturedHomeLivingNewsPostedDailyBusienssNewsMHProNews

Manufactured housing produces build entry level homes, such as the one shown above, as well as residential style homes. Entry level homes often use VOG and batten strips. This is similar to entry level cars, cells, RVs, etc. Lower cost, less expensive finish. But that entry level manufactured home must still meet all of the safety, energy and construction standards established by HUD. That’s the beauty of manufactured housing! Satisfaction with manufactured home living is well established by both federal and private reports.

There are pluses and minuses to everything. In manufactured housing, you commonly see some models of homes that are lower in cost, which often use batten strips and VOG. VOG is a fine product. VOG allows you to clean the walls without painting them. VOG is Vinyl over Gypsum. So VOG is sheetrock with a covering, similar to the sheetrock without a covering used in site built or other homes, that gets tape and texture.”

Tape and texture can get stress cracks. That’s not as common in VOG. But with VOG, you may see nails or staples that pop out. That’s normal after transport, or if a home settles.” 

Some sellers promise the moon, and fail to deliver.”

“We’d rather tell you the truth, and then you will be happier because you will have the right expectations. If you don’t already have a tool kit, and when you buy a home from us, when you close, we’ll give you a basic tool kit with your home.  We will also show you just how simple it is to tap that nail or staple back in place. Is that fair enough?” 

I’ve sold, managed the sales of, and coached others to sell the same kinds of homes – high, medium and entry level – that you have. Thousands upon thousands of homes were sold the right way. We had stellar review from customers. 

But here’s a hidden payoff. At my own dealership which sold hundreds of homes a year before it was profitably sold, I never had even one retail consumer hire an attorney.

Think about it.  Not one letter from an attorney for a retail customer. We did have a dispute or two with others in business, but not with consumers. Instead, we had routine satisfaction and referrals. That satisfaction and those referrals came to us, by doing things the right way. 

A key part of that was setting the right expectation.  What we share, we know that it works, when you do it properly.

How do you achieve that level of customer satisfaction? There are several points, but one of them is by setting the right expectation on the front end. 

The reality is that customers will find out everything in time anyway. So, why not be up front about it? 

  • Which way will the customer respect you more?
  • Which way will bring you more business?
  • Which way will cost you customers later on in life? 

We have scores of simple tips that we teach and coach clients on that result in higher satisfaction, more sales, and more referrals.

We also have sophisticated recruiting, marketing, and sales systems that perform in manufactured housing. By performance, I mean systems that when properly used are proven to attract and sell more customers who can stroke the check, or who can qualify for most any kind of good financing. 

The bottom line is simple, yet profound. “Do for others as you would have them do for you.” A Jewish Carpenter named Jesus said that, and if it was good enough for that home builder, it’s more than good enough for you and me.  

Should every plant and production center strive to do the best job they can for their price points?  

Absolutely.

 MyJobIsNotToBeEasyonPeopleMyJobistoMakeThemBetterSteveJobsQuotePhotoDailyBusinessNewsMhproNews

But be realistic. That $300,000 and up D.R. Horton Homes that ABC News spotlighted isn’t a one off. There are a number of websites and other mainstream news stories that reflect complaints against site-builders.

So, why don’t they have the image issues that manufactured housing does?

We’ll look at that question another time, but for now, you focus on setting the right expectations.

 

LouHoltzCoachNDDOwhatsRightDoYourBestTreatOthersLIkeYOuWanttoBeTreated3QuestionsCanITrustYOuAreYouCommittedDoYOuCareAboutMeNCRDailyBusinessNewsMHproNews

Before Lou Holtz coached at Note Dame, he coached at Arkansas. In the 1978 Orange Bowl on January 2, 1978, featuring the Arkansas Razorbacks against the heavily-favored Oklahoma Sooners. The sixth-ranked Razorbacks were 10–1, but were heavy underdogs to the #2 Sooners. Holtz benched two of his best players before the game, for a rules violation. People thought he was crazy. Holtz’s team still pulled off a stunning upset win.  Holtz practiced what he preached.

Treat that customer as you’d want them to treat you. When you do, something almost like magic happens.

You’ll rarely regret it if you routinely tell the truth in an effective, and compelling way. Need more sales? Got a budget for marketing, sales, and coaching? Call or message to learn more. The ROI is terrific for marketing and sales done properly. ## (Coaching tips, marketing, sales, management, commentary, and analysis.)

(Third party images, and content are provided under fair use guidelines.)

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.


http://www.linkedin.com/in/latonykovach

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related Reports:

Wheat, Chaff, and the Monday Morning Manufactured Housing Sales, Marketing Meeting

 

 

7 Reasons Why Manufactured Housing is Poised to for More Rapid Growth

July 14th, 2018 No comments

7ReasonWhyManufacturedHousingIsPoisedForMoreRapidGrowthCNBCManufacturedHousingIndustryDailyBUsinessNewsMHproNewslogo

Nature abhors a vacuum. At the center of every business’ or industry’s success was the recognition of a need, followed by the steps required to fill that need.

 

The affordable housing crisis is well known and documented. What is less embraced are the causes and potential solutions, which includes manufactured homes, as well as other forms of factory-built or industrialized housing.  That’s opportunity in disguise.

The Daily Business News will spotlight today 7 Reasons Why Manufactured Housing is Poised for More Rapid Growth.

In no particular order of importance, the following are the seven reasons.

The 7 can be summed up in two words, “Money” and “information.”

1)   Record Equity. A decade after the housing/mortgage crash of 2008, the housing markets have recovered.  “The first three months of 2018 saw homeowners’ tappable equity surged by $380 billion to $5.8 trillion, the largest recorded,” states MPA, the Mortgage Professionals of America.

 

2)   There are many retailers and communities that know what the award-winning manufactured home retailer in the video below told MHLivingNews.com. Namely, that a large percentage of manufactured home buyers have first owned a conventional house. When some sell their house, they may pay cash or have more down payment to finance a manufactured home.  Some will borrow against a house in order to buy another home.

 

 

3)   The video above makes another important point for manufactured home professionals, investors, advocates, and the home buying public to know.  There are both entry-level and residential-style manufactured homes.  Both are necessary!  Each one – entry level, and residential style – benefits and complements the other. High-end producers or sellers are wise not to diminish their ‘shade and shelter’ kin, and vice versa.

 

NathanHararyMarketSnapshotAllAboutEquityFamilyFirstFundingManufacturedHousingINdustryDailyBusinessNewsMHproNews598

 

4)   Rapidly Rising Equity in Housing in the 1st quarter of 2018. Nathan Harary, Senior Loan Officer at Family First Funding tells MHProNews that “It’s all about equity.” As proof, he ticks off some specific examples of expert insights. By the way, when he says that 63 percent have a mortgage, that’s like saying that 37 percent don’t. Each kind of home owner is an opportunity in disguise for a savvy, ethical, and long-term thinking manufactured home marketers.

 

HomeownersareIntheMoney63PercentHaveMortgageFamilyFirstFundingLogoDailyBusinessNewsMHproNewslogo

When you say that 63 percent have a mortgage, that’s another way of saying that 37 percent are mortgage free.

 

5)   2018 1st quarter year-over-year growth.  Housing values rapid rise boosted equity by $1 trillion dollars in a a year. Wow!

NationalHomeOwnerEquity1stQuarter2018ManufacturedHousingIndustryMHproNewsFamilyFirstFundingLogo

A trillion dollars is equal to about 16,205,476 of the averaged priced manufactured home sold in December 2017, using Census Bureau data. So about half of that trillion dollars could pay for enough manufactured homes to meet the nation’s 8.3 million unit housing shortage, using NAR data.

 

6)   CoreLogic’s CEO’s statement.

CoreLogicPresCEOFrankMartellQuoteHomeEquityGrowFamilyFirstFundingLogoManufacturedHousingINdustryDailyBusinessNewsMHProNewslogo

 

7)   National Housing Data. The data and the trends, properly understood, are like a road map for the need for more factory-built homes.

HomePriceActivityNationallyFamilyFirstFundingLogoManufacturedHousingIndustryDailyBusinessNewsMHProNewsLogo

All of the above supports a factoid and quote that MHProNews has cited for months, and is shown below.  Namely, what the National Association of Realtor’s Lawrence Yun said about the need for more new homes.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

What the above comes down to, as noted previously, is money and information are the paths that must be used to fulfill the aspirations of millions.

Actionable information is motivating to a professional, and to housing seekers.

It should be noted that “poised” means “positioned.” Manufactured homes are in a position – for the 7 reasons cited above, as well as others to grow more rapidly.

So the above are not a guarantee. People, teams, and organizations are known to take a winning hand, and blow it.  The question is, what will you do with the hand dealt to you in your market?

Albert Einstein and Zig Ziglar both made similar observations.  The start of a solution is to start by understanding the problem. A need is a problem.  A problem is an opportunity in disguise.

Every challenge the industry faces – internally and externally – can debatably be met with a simple, effective and profitable solution.

There is work to be done, and opportunities to be tapped. Opportunity comes dressed in overalls. Are you ready to work for the next steps?  The linked items further below can be read for greater depth of understanding. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third-party images are and content are provided under fair use guidelines.)

Related References:

Investors, Heartbroken Home Owners, Site Building Giant DR Horton, and Manufactured Housing

Profits, Understanding Human Events, and Manufactured Housing

Life Hack Success Tip-Any Pro Can Do This-Monday Morning Manufactured Housing Sales, Marketing Meeting

Style or Substance? Lesson from Most Hated in America – Monday Morning Manufactured Home Sales, Marketing Meeting

What are the FACTS about Manufactured Housing Industry Traffic vs. Real Estate? MHVillage, MHProNews, Manufactured Housing Institute Data

IfPrettyPicturesVideosAloneWereEnoughMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews1

Learn more about the above, linked here.

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.