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“Warren Buffet’s Exploitative Mobile Home Investment” Kori Hale in Forbes Rips Clayton Homes, Berkshire Hathaway’s Predatory Manufactured Home Practices

April 18th, 2019 No comments

 

WarrenBuffettsExplotativeMobileHomeInvestmentKoriHaleInForbesRipsClaytonHoemsBerkshireHthawayredatorManufacturedHomePracticesMHProNews

Starting with the featured image, which may have been provided by a Forbes staffer, and moving on to terminology errors, it must be noted that Kori Hale’s allegations against Warren Buffett led Berkshire Hathaway’s Clayton Homes and related lending units includes inaccuracies.  But that doesn’t mitigate the fact that the thrust of Hale’s comments are devastating, especially coming from the black-female CEO of CultureBanx.

 

Here is the link to her column on Forbes, entitled Warren Buffet’s Exploitative Mobile Home Investment, which is being reproduced below under fair use guidelines for commentary and analysis.

 

Warren Buffett’s Exploitative Mobile Home Investment

Kori Hale Forbes Contributor – I’m the CEO of CultureBanx, redefining business news for minorities.

 

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Warren Buffett’s company Clayton Homes, the biggest mobile home manufacturer in the U.S. has continued to profit from high interest rate loans. The Oracle of Omaha has sold low-income Americans the dream of ownership for nearly 20 years, and his investment company Berkshire Hathaway makes money on the loans, since they own the company that Clayton urges its buyers to go through. Many of the people buying these homes are minorities and have helped to fuel Clayton’s $13.7 billion mortgage portfolio.

 

The Breakdown You Need to Know

Clayton operates the two biggest mobile home lenders, 21st Mortgage Corporation along with Vanderbilt Mortgage. Clayton finances more mobile home loans than any other lender by a factor of more than seven. CultureBanx noted that in 2105, 72% of black borrowers got their loans from Clayton’s Vanderbilt Mortgage and 21st Mortgage, according to FFEI federal data.

They have outsized dominance in the manufactured home market with a 49% share, and where profit margins are greater. Buffet’s Clayton company brought in $765 million in revenue, in 2017.

Mobile home loans are similar to car loans because they’re typically classified as personal property, instead of real estate. Interest rates can be as high as 13.5% or more, and like a vehicle, lose as much as half its value in three years. These rates make it hard for mobile-home owners to leverage equity from their purchase in order to buy a traditional home.

Capitalizing on Trailer Debt

Families who are able to get a loan for their mobile homes generally lease the land on which it sits, a common practice in this industry that can trap people in a cycle of debt. The national monthly average to rent a space in a trailer park is around $250 and can be as high as $600. Trailer parks tend to be built in warmer climates, with Mississippi and Alabama having some of the highest rates of mobile homeownership.

If you’re thinking mobile homes are perhaps only for an older demographic you would be wrong. The majority of mobile-home residents, 23% are between the ages of 18 to 29 and have an average household income of $28,400. If that’s not alarming enough, in 2015, the average sales price for a new manufactured double-wide home was around $110,000.

There are some mobile home communities attempting to rezone trailer parks, to prevent owners from selling the land to developers that may raise the rent even higher. If residents are able to pool their resources together and buy the park, it would give them the opportunity to run it as a co-op.

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Once more, the point of sharing this Forbes column to MHProNews readers isn’t to confirm, challenge, or corroborate this or that claim made by Hale’s, the author of the above published Op-Ed this morning.  Rather, it is to raise the related point that is often at the core of the industry’s image challenges.

The bad news that often harms the industry’s image routinely comes from Manufactured Housing Institute (MHI) connected firms, the largest of which is Clayton Homes, and their Berkshire Hathaway related lending and other brands.  consider this Google search screen capture, done this morning.

 

ClaytonHomesMobileHomeFinancingNewsHeadlinesDailyBusinessNewsMHProNews765

 

The first steps to organize independents into a new post-production trade group are underway.  To learn more contact us in confidence via the link here.  Use the words New Association Inquiry in the subject line.

See the related reports to learn more, found further below the byline, offers, and notices. That’s another episode of manufactured housing “Industry News, Tips, and Views Pros Can Use© where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Factory-Builders, Retailers, Developers – Is This Your Future Competition Beyond Berkshire Brands in MHVille? Understanding Jeff Bezos’ Amazon

April 9th, 2019 No comments

 

FactoryBuildersRetailersDevelopersIsThisYourFutureCompetitionBeyondBerkshireBrandsMHVilleUnderstandingJeffBezosAmazonDailyBusinessNEwsMHProNews

There are several operations that believe they are positioning themselves for the future of manufactured housing. Some are not only aware; they are arguably counting on the Berkshire Hathaway owned Clayton Homes and their “strategic Moat.”  A number of those firms are Manufactured Housing Institute members, but others are not.

 

But this report is about Amazon, not Clayton or Berkshire.

 

You may love Amazon Prime. You might admire the rise of Jeff Bezos. You might recall that Warren Buffett, Jeff Bezos and Jaime Dimon shook the financial markets on the day they announced their plans for a joint health care initiative.

But don’t forget that Bezos directly entered the factory-built home market in 2018 when his Amazon Alexa Fund estimated bought Plant Prefab.

 

$300 Billion Market, As Predicted, Jeff Bezos’ Amazon Alexa Fund Dives Deeper into PreFab Homes

 

They stated that they estimated the annual factory-built housing market potential to be a whopping $330 billion dollars annually.

The video on this page outlines how Bezos has ducked by antitrust activism so far. But don’t forget that after this video was produced, and after Senator Elizabeth Warren and others rattled sabers about big tech and monopolies, Bezos’ Amazon quietly backed off one of the complained about tactics.

 

Under Scrutiny, Giant Amazon Pivots, But What About Berkshire’s Manufactured Housing Brands? Plus MH Market Updates

See that prior report, linked above.

You and other independents need to be aware of how they operate. Their next target could be you. Finally, keep in mind what CNN aptly observed about the three involved in the health care deal, noted above.  ‘These guys [the billionaires] talk to each other all the time.’  Buffett himself says that he spends 5 to 6 hours a day reading, and then he spends added time on the phone, a point that Kevin Clayton mentioned in the video on the page linked here.

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

 

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Gannett Media Exposés, MH Community Owner Moves Sparks Outrage – IEDs of Manufactured Housing

April 2nd, 2019 Comments off

 

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Given the nature of the internet, bad news in one part of the country travels nationally and globally. So, while this specific incident may or may not seem to be in your market(s), or that of some professional that you know, this Gannett Company media series of exposés could well cost you potential customers.

 

Even if you aren’t in the manufactured home (MH) communities’ sector (MHCs), given how interconnected manufactured housing is, this report will – properly understood – reveal real-world impacts on honorable businesses and investors.

This vexing series is obviously causing angst among hundreds of residents that these stories covered.

 

 

In the American Heartland…Where Politicians Are Criss-Crossing Their State

In a series of reports by Gannett owned Iowa City Press Citizen and the Des Moines Register reflects the outrage by residents who are being hit with rent increases reportedly over 50 percent that will impact them this summer.

Residents at Golf View Mobile Home Court in the Iowa City suburb have been notified by Utah-based Havenpark Capital that they will see their rent spike from $284 to $450 on June 1 — a 58 percent increase,” wrote Ian Richardson and Zachary Oren Smith on March 29, 2019.

Havenpark reportedly did more in another community they acquired. “When the new owners of Midwest Country Estates in Waukee taped notice of a 69 percent rent increase on the doors of residents last week, they were doing the same thing at another recently purchased mobile home park in North Liberty.”

George W told the Better Business Bureau (BBB) on 02/07/2019 that, “Havenpark Capital bought eight Value Homes LLC parks in Mid-Michigan. Our rent increase (including new fees) included a 40%+ hike. Every communication from them states, “we are going to do amazing things.” Nothing amazing has or will happen. Our property manager even encourages us to contact our State Representatives and expresses displeasure in the company’s greedy business practices. Meanwhile, a whole lot of people on fixed incomes are hurting to pay their bills. Some are having to sell their homes and move.”

So, when the Gannett-owned newspaper’s journalists reported the quotes cited herein, they underscore a pattern that complaints to the BBB had already established. The bullets below reflect three quotes from an article linked here.

  • Don Lund, who’s lived at Golf View for 21 years, told the Press-Citizen he’s worried about how his current income — $700 per month from disability and about $160 from newspaper writing — will be able to handle the increase.
  • Most people buy a trailer ’cause we can’t afford a house,” said Lund, who was born without hands or feet. “I spent $40,000 on this back in 1997, and it took 20 years to pay it off.”
  • In Waukee, 91-year-old resident Arletta Swain said she’s lived in the mobile home park for nearly 50 years, and this increase will “take me right down to my last dollar.”

Or ponder the impact on residents, prospective buyers – and thus independent businesses – that reading the following bullets pulled from this link here.

  • Alex Kornya, assistant litigation director with Iowa Legal Aid…,which offers free civil legal assistance to the elderly, low-income, veterans and other vulnerable groups, sees a “high proportion” of people coming to its office with mobile home-related issues.
  • Rent will be going up to protect our community,” the letter [from Havenpark Capital] says. “If the rent did not go up, the land where Midwest Country Estates sits today would have been more valuable if it were changed into apartments, or a large retail store, causing all of our residents to be evicted.”

 

HavenparkCapitalLogoHavenparkCapitalPartnersWebsiteDailyBusinessNewsMHProNews

 

Havenpark Capital Partners Website

We presently own and operate 25 communities totaling approximately 5,000 home sites. We continue to source properties meeting our investment parameters and offer qualified investor access to a geographically diversified portfolio of properties through private fund offerings.” So says the Havenpark Capital Partners website.

They also stated that their investment criteria is as follows.

  1. 100+ Home Sites
  2. Located in a Metropolitan Area of 100,000+
  3. 3-5 “Star” Asset Quality

 

What the Better Business Bureau (BBB) Says About Havenpark

BBB File Opened: 5/31/2018
Years in Business: 3
Business Started: 1/5/2016
Business Started Locally: 1/5/2016
Business Incorporated: 1/5/2016 in UT
Type of Entity: Limited Liability Company (LLC)

The BBB currently rates this firm as a D+.

 

HavenparkCapitalPartners4-2-2019DesMoinesRegisterDailyBusinessNewsMHProNews600

 

Another Comment from the BBB, and Statements from MHC Seller Barbara Hames

Horrible company! They come in added $100 to our rent, then added water bills on a well, and sewer charges and even school tax. Anyone looking to move into anything these greedy money grubbers own…DON’T. They didn’t add a clubhouse, child play area nothing of any real benefit. This area has many senior citizens who live here who will probably have to give up their meds to live here.” – Shar K, 12/11/2018, per the BBB.

 

Among the sellers to Havenpark Capital described by the Gannett owned newspapers was Barbara Hames, of Hames Homes.  Here is a video from their website.

 

 

Barbara Hames told the Press Citizen that they were not looking to sell two of their communities.  For half-a-year, Hames said they were getting 2 to 3 calls a week from potential buyers.

 

 

Hames, a prominent and popular figure in the Iowa Manufactured Housing Association (IMHA), explained the decision to sell to Utah-based Havenpark Capital in these terms.

  • We were absolutely not looking to sell….It is a family business here.”
  • The DNR informed us that Sunrise (Village) would need to be upgraded in a year or two and West Branch would eventually need to be upgraded.” DNR is short for the Iowa Department of Natural Resources.
  • The reason the offer [from Havenpark] was tempting was both [manufactured home land-lease communities] in Iowa City and West Branch would cost a lot to bring into full compliance.”
  • Hames described the hike in site fees as “surprising…”
  • Even if they raise the rent, they also invest a lot of money in the parks they purchase,” Hames told the Press Citizen.
  • The prices in eastern Iowa have been artificially low for years,” Hames said, which likely made such hikes inevitable.
  • When supply is bigger than the demand, prices go down,” Hames said, who explained that the lack of other credit sources after the fall of Green Tree Servicing forced them to establish their own lending. “The supply of manufactured home sites has been high because of the lack of financing for people wishing to purchase.”

Knowingly or not, Hames has described a pattern that the Daily Business News on MHProNews has tracked for years. More recently, our analysis reflects that several of these issues arose in the aftermath of events described on MHLivingNews at this link here. As Berkshire Hathaway owned 21st Mortgage and Clayton Homes built their respective strategic moats, thousands of retailers were tipped out of business.  That in turn had a cascade effect that impacted communities like Hames’ and thousands of others too.  After all, it was those retailers that used to sell homes into communities that kept them near capacity, and allowed property owners to maintain their locations.

The well-liked Joanne Stevens was reported as the broker in the deal with Havenpark.  Per her website, “NAI Iowa Realty Commercial is proud to be part of the Berkshire Hathaway family of companies.”

So, on at least two levels, Warren Buffett led Berkshire Hathaway brands are in the mix of what has transpired in these Iowa manufactured home communities.

 

The Intersection of Mainstream Journalism Realities and Manufactured Housing

Contemporary local media journalists have numerous pressures and limitations placed upon them.  As the number of writers and editors declines, due to dwindling ad revenues lost to competitors such as Google or Facebook, a journalist often lacks the time to dig deeper into an issue than may have been the case in years past.

To generate reader interest – which yields more clicks or sold newspapers – media sources tell MHProNews that they have to focus on controversy and attention-sparking headlines and stories.

So finer details, correct terminology, mitigating circumstances, or other nuances may not rank as high as it otherwise might have in years gone by. It’s not fake news. But it is news that by accident, media dynamics – or at times, an unstated agenda – often reflects poorly on manufactured home living.

 

PublishingHandPickedInformationCanBeWorsefortheImpressionItMakesOnManufacturedHomesandOurIndustryThanStatingEntirelyFalseInfo-BradLovinNCMHA

Sometimes media has an agenda, and Brad Lovin’s comment is quite apt. But in other occasions, journalists pressed for time may not be able to dig deeply enough to understand the often subtle or complex dynamics at play. But the impact of news articles is real in either case.

 

For example, these bullets from the same Gannett media source.

  • Resident Janet Hook said…”We’re sitting ducks is what we are…”There’s a lot of us out here who don’t know what we’re going to do.”
  • An NAI Iowa Realty Commercial survey of 13 mobile home parks in the Des Moines metro from October 2018 showed rents ranging from $244 to $596 per month, with an average monthly rent of $436.
  • Joanne Stevens, an NAI Iowa Realty agent who helped with the Midwest Country Estates sale, said owners that want to stay in the mobile home business long-term need market rate rents to keep parks operational and well-maintained.

Nowhere is the Berkshire Hathaway connection to these events explicitly mentioned. Nowhere in these reports will you find a more in-depth explanation for how Berkshire owned brands arguably helped fuel the issues that caused these communities to lose occupancy for years.

As regular and detail-focused MHProNews readers know, the industry’s business model was disrupted in large measure by the events documented here.  There rest are details and commentary.  It is the kind of nuance – or even in-your-face-facts that mainstream journalist who are not well versed in manufactured housing, for the reasons noted above, can easily miss.

TerminologyMattersBecausetheTerminologyDescribestheConstructionStandardsHomeBuiltToSteveDukeLMHAaMHLivingNewsMHProNewsBiggerPocketsSunshineHomesRedBayAL

The terminology matters because
the terminology determines the
construction standards a home was
built to,” Steve Duke, LMHA.

 

It will be recalled that not long after Berkshire bought Clayton Homes, the community side of Clayton’s operations were spun off.  Per sources, “Warren” didn’t want to be seen ‘as raising the rents on grandma.

Yet thanks to the domino effect, it is apparently okay with ‘Warren’ when someone else raised granma’s and others site fees.  It is even better when a firm Buffett-led Berkshire owns gets a slice of the brokerage commissions involved. Then, in an ironic twist, Buffett can go on national television, and lament how some citizens become “roadkill” that should be cared for by a Big Brother government.

Buffett has also reportedly used some of his profits to help fund the protest groups – such as MHAction – as reported by the Golden States Manufactured-Home Owners League or GSMOL – see a report, linked here.

The net results?

Real- but artificially-sparked headwinds arise or are allowed to develop.  Lacking the time to dig beyond the surface, journalists in the contemporary media environment may not be able to properly spotlight the underlying causes or contributing factors to the issues that they report on.

So, hearing from residents or others that ‘mobile homes depreciate like a car goes unchallenged, even though there is evidence by the National Association of Realtors (NAR) 2018 research that manufactured homes can and do appreciate.  Cases like the ones these Gannett media stories reflect may indeed result in depreciation, if someone is forced to move quickly.  But that same loss of equity could occur with conventional housing too, given similar dynamics and a hasty sale.  Stating the facts, but absent all the nuances, can thus cause still more harm to potential sellers of a manufactured home, when they might rightly ask in the wake of such reports, ‘why would I want to be next in line for this kind of situation?’

 

The MH Industry’s Largest Post-Production Association…

Where is the Manufactured Housing Institute (MHI) on this or similar issues?  The Daily Business News on MHProNews asked the Arlington, VA based national association.  They are silent. Why? Could it be because some of their ‘big boy’ members benefit from such patterns?

Meanwhile the independents of the industry at large suffer. Who suffers most? The mom-and-pop ‘family’ operations, that may or may not realize what dynamics they have succumbed to, as this report from Iowa sadly reflects.

 

Metaphorical IEDs in Manufactured Housing

Buffett’s and his minions’ strategic moat tactics don’t require specific foreknowledge of precisely what will occur or to whom.  All they need to know is that when a domino is tipped over, other dominoes in the chain will follow.  See the illustration at the top of this article.

What the Atlantic’s report earlier this decade pointed to impacted not only independently owned manufactured home retailers.  It also logically harmed manufactured home communities, producers, lenders – anyone involved in the manufactured home industry business-supply chain.  ICYMI, or need a refresher, you can click on the hot-linked text-image box below for more details.

 

Examining Derek Thompson’s Atlantic Report on ‘Mobile Home’ Retail Market as Fastest Dying Business In America

 

What is occurring in Iowa is like a metaphorical improvised explosive device (IED) planted by a terrorist. Only these IEDs have an economic impact on people, whose personal or professional lives are just as disrupted as soldier’s would be when hit by an unexpected land-mine.

The industry’s once multi-decades successful business model has been disrupted. It could be rebuilt. #OpenMarkets, antitrust law and other solutions must be put into play to right the imbalances (see related reports, further below the bylines and notices).

 

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

Click here to see the referenced document, quotes from Warren Buffett’s annual letter to shareholders that year, and a video with Kevin Clayton.

But until the necessary steps are taken to change the dynamics already in play, consolidators like Havenpark Capital will do what Buffett’s “Conquest Capitalism” arguably allowed it to accomplish.

And none of the Omaha-based Berkshire brands found in the Knoxville metro, or MHI would – or could? – respond to these concerns in the presence of their peers, who met in Tunica last week to discuss just such issues.

Tick-tock, tick-tock. That’s not just a clock, it’s effectively an improvised economic-explosive device that mimics IEDs.  How long before politicos in Iowa or elsewhere decide that they will step in to ‘fix’ the problems?

If so, will their political fixes only hasten the issues that caused Barbara Hames and independents like her to sell in the first place?  See the rent control report, linked here.

That’s the latest #NettlesomeThings from MH “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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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.

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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.

 

 

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Anti-Monopolistic or “Antitrust” Action Heating Up in Washington, D.C., What It Could Foreshadow for MHVille

March 7th, 2019 Comments off

AntiMonopolisticAntiTrustActionHeatingUpWashingtonDCWhatCouldForeshadowforMHVilleDailyBusinessNewsMHProNews

On the left or so-called progressive side of the political aisle, several Democratic candidates for the 2020 race have made strong statements about doing more antitrust action. One of those are linked further below. Then, on the conservative side of the aisle, some Republicans and others are condemning what they see as a trend toward bias by Big Tech that violates their free speech rights.

 

Furthermore, President Donald J. Trump has purportedly had drafted an executive order (EO) on antitrust action. See that prior report, from the linked test image box below the byline and notices.

Against that backdrop, there is talk of how this talk of antitrust could play out in MHVille. That talk about the issue is more behind the scenes of late, but it exists. Some firms, per sources, are shoring up antitrust and other legal experts.

With that, there is a growing move in Washington, D.C. to take a more serious look at antitrust, most of the news revolves around big tech. But it should not be though that it would end there.

There’s discussion, for example, of how Cavco and their SEC woes may or may not include possible antitrust issues.  If so, that could prove difficult for Clayton Homes and their related Berkshire Hathaway manufactured home lenders.

These two videos and the pull quotes from Bloomberg Law, therefore, should be construed not only on the obvious level of big tech. Big Tech also obviously impacts manufactured housing, via marketing and in other ways.

While there is debate back and forth, one could argue that there is growing energy behind antitrust action in Washington and beyond.

So, these videos and the Bloomberg Law commentary should be construed through the lens of how this may play out for members of the Manufactured Housing Institute (MHI).

 

 

Antitrust Enforcement in Spotlight at Senate Hearing

  • Posted on Bloomberg Law, at this link here, March 5, 2019, 5:46 AM Updated March 5, 2019, 5:20 PM
  • Senate antitrust hearing comes amid heightened pressure on Alphabet’s Google, Facebook
  • Robert Reich, Joshua Wright testify
  • The Senate’s top Republican [Sen. Mike Lee (R-Utah)], on antitrust issues March 5 cautioned against using competition law to address growing concerns about big-tech companies.

By contrast, Bloomberg’s recent video discussion, posted below, said the following

Feb.27 — U.S. antitrust enforcers are zeroing in on technology giants following years of criticism that they haven’t done enough to rein in dominant internet companies like Alphabet Inc.’s Google and Facebook Inc. The Federal Trade Commission said it’s creating a task force led by senior competition officials and 17 staff lawyers to investigate potentially anticompetitive conduct by technology companies. Matt Stoller, Open Markets Institute fellow, and Bloomberg’s David McLaughlin discuss on “Bloomberg Technology.”

 

 

Note that the Open Market’s folks have taken specific aim at Clayton.  Some tweets are shown below.

AustinFrerickOpenMarketsAntiTrustAntiMonopolyClaytonHomesWarrenBuffettPredatoryLenderMinoritiesMoreDailyBusinessNewsManufacuredHousingIndustryMHProNews

HowClaytonHomesMakesMoneyAustinFrerickTwitterOpenMarketsDailyBusinessNewsManufacturedHousingIndustryMHProNews

See the related reports below for more that is more manufactured housing specific, and ties together mentions of the above.

 

Independent Businesses, Affordable Manufactured Housing, Open Markets, & Robust MH Sales Growth

That’s this evening’s “News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, commentary.)

 

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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.

 

 

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Warren Buffett “Oracle of Omaha” HBO Documentary Berkshire Hathaway #Advexon Video

February 15th, 2019 Comments off

 

WarrenBuffettOracleOfOmahaHBODocumentaryBerkshireHathawayDailyBusinessNewsMHProNews

It is important to be fair and balanced. This video has had some 1.6 million views since it was first posted on YouTube on Mar 3, 2017, almost 2 years ago.

 

To be precise, there have been 1,603,008 views as of the time of this Daily Business News on MHProNews post. It should be self-evident that the frame for this narrative is a positive one.  After all, how do you get access to interviewing the world’s currently 3rd most wealthy man without some assurance that the video you will produce is going to be a positive?

Here’s what the video page says: “Known as the “Oracle of Omaha,” Buffett is one of the most successful investors of all time. His Berkshire Hathaway owns more than 60 companies, including Geico, Duracell and Dairy Queen. The son of a U.S. congressman, he first bought stock at age 11 and first filed taxes at age 13. He has committed to giving more than 99% of his fortune to charity. So far he has given $28.5 billion. With friend Bill Gates, he launched The Giving Pledge, asking billionaires to donate their wealth.”

We link below various reports on Berkshire Hathaway’s manufactured housing brands, and some of the more important reports published here on MHProNews or on MHLivingNews.

 

 

The billions he’s given away is perhaps more complicated than it is made to sound.  But that will be covered at another time. Suffice to say for now that they are largely stocks given to foundations. According to the producers of the documentary, the causes they have supported are as shown.  They reflect Buffett’s left-wing, “progressive” political posture.

 

WarrenBuffettsPhilanthropyGiftsHBODocumentaryDailyBusinessNewsMHProNews

 

Among the items mentioned or shown in this video?

  • The Moat
  • Circle of Competence
  • Kevin Clayton and Clayton Homes are briefly shown
  • Bill and Melinda Gates
  • Family life
  • Charlie Munger, Buffett’s partner and Berkshire Hathaway Vice Chairman
  • Value Investing.
  • The Solomon Brothers crisis.
  • That he says that he is an agnostic, plus details about his marriage and personal life.

There’s more. The Daily Business News on MHProNews may revisit this video later, on a slower news day. For the rest of the story, see the related reports, linked below. That’s this morning’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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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.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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2) To pro-vide 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 Re-sources

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.

 

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News Tip, Document – Is Clayton Homes Engaged in False Down Payments? Deceptive Trade Practices?

News Tip, Document – Is Clayton Homes Engaged in False Down Payments? Deceptive Trade Practices?

 

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News Tip, Document – Is Clayton Homes Engaged in False Down Payments? Deceptive Trade Practices?

February 11th, 2019 Comments off

 

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Prior to publishing this article, MHProNews asked officials at Clayton Homes for comment on this topic.  The Daily Business News on MHProNews waited several days before publishing this report, giving the industry giant plenty of time to respond.

 

They have to date exercised their right to remain silent.

Now that this document – provided as a news tip – is being published below, MHProNews once more invites Clayton, Vanderbilt Mortgage, other industry lenders, or the Manufactured Housing Institute (MHI) the opportunity to respond, refute, confirm, or clarify the concerns noted below.

There are several possibilities,” said an informed source to MHProNews with ties to the ‘powers that be.’ “For example, Clayton could claim that they are not taking the $1,000 off the actual down payment, but rather off the total price of the home.”

But if so,” per that same source “that raised other questions and possible issues.  For example, does that make this $1,000 credit a deceptive trade practice?  Could they [Clayton] be raising the price, only to lower it? If it is a down payment, are outside lenders or federally backed lenders aware of this Clayton Homes trade practice?”

The certificate from “CMH” bears Kevin Clayton’s signature.

 

$1000DownAdditionalPaymentClaytonHomesCMHKevinClaytonDailyBusinessNewsMHProNews

 

The document shows several Clayton retail brands on the bottom of the certificate.

 

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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.

 

MHProNews will update readers on this, and other developing reports.  To provide a news tip to MHProNews use the link above or to the bottom left, below. See related reports, further below. “We Provide, You Decide.” ## (News, analysis, and commentary.)

 

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NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

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2) To pro-vide 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 Re-sources

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.

 

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Biggest Employers Video, Map By State, Where Clayton Homes Parent Berkshire Hathaway Ranks

January 30th, 2019 Comments off

 

BiggestEmplyersVideoMapStatesClaytonHomesParentBerkshireHathawayRanksDailyBusinessNEwsMHProNews

The U.S. is the third most populous country in the world, so it takes a lot of manpower to keep the government running,” says a new report by Visual Capitalist (VC). It’ll come as no surprise that, in most states, either the state or federal government is the top employer. California alone employs a quarter of a million federal workers.”

 

New York State is a unique case as NYC’s municipal workforce is the top employer,” per VC.

The largest employer on planet earth is the U.S. Department of Defense.  In eight states, there are more active military personnel than any single private employer.

But in the private sector, Walmart is the largest employer in nearly 2 dozen states.

Pause and think.  Walmart workers are one of those target markets that our manufactured home industry can serve, but not many others in home ownership sales could. It is one more area of tremendous opportunity, but is under-tapped, as evidenced by only 100,000 (+/-) new HUD Code manufactured homes for 2018.

 

 

Berkshire Hathaway

ManufacturedHousingAssocRegulatoryReformJOINMHARRbani-200x200

Click here or on the graphic above to learn more, which is not connected to this report.

Berkshire Hathaway is the well-known parent for Clayton Homes and other connected MHVille brands. The Berkshire (BRK) conglomerate brands collectively are in the top private sector employers in the U.S., and one of the top 10 by revenue in the world.

Part of the purported oligopoly threat, so to speak, posed by Berkshire Hathaway goes beyond just Clayton Homes and their associated lenders and suppliers. It goes into what Warren Buffett himself called the ‘synergies’ between Berkshire brands.  Berkshire brands are likely in your home, and part of your weekly to monthly routines.

But one ought to take it a step beyond what VC said.  Berkshire owns stocks in numerous companies.  For but one example in MHVille, think about Wells Fargo.

Through those corporate interlocking connections, there is a ‘web’ or network of potential influence in money and politics.  In that regard, Warren Buffett’s influence over the marketplace is significantly more extensive than the Berkshire brands alone.

WorldsLargestCompaniesByRevenueBerkshireHathawayClaytonHomesParentDailyBusinessNewsMHProNews

 

Thus #DeFaangBM.  Antitrust-action (= De) should be used on the FAANG tech-lords, Berkshire and Microsoft = #DeFaangBm. #AntiTrust. #OpenMarkets. #HousingChoice.

 

DeFaangBmAntiTrustOpenMarketsAffordableHousingManufacturedHomesHousingChoiceMHProNews

 

Legacy Home Sale Feb 20-21

Click here or on the graphic above to learn more, which is not connected to this report.

 

Programming NOTICE:

There will be two special reports later today.  If you aren’t already on our emailed news updates, please check this link here and sign up in seconds, at this link here or below.

 

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That’s “News Through the Lens of Manufactured Homes, and Factory-Built Housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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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.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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

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2) To pro-vide 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 Re-sources

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.

 

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White Paper on Digital Media, Details, Trends, Marketing Insights for Manufactured Housing

January 28th, 2019 Comments off

 

WhitPaperOnDigitalMediaDetailsTrendsMarketingInsightsForManufacturedHousingDailyBusinessNewsMHProNews

Let’s being with the top lines of this new research from Polar.

 

Executive Summary

Digital advertising is growing 15% Year-Over-Year (YoY), from $266b in 2018 to $465b by 2022 .

Digital will be 50% of all ad spend by 2022.”

So stated Polar in their new White Paper on Digital Media. What follows are likewise from their Q1 2019 brief and digital trends snapshot.

 

ExecutiveSummaryPolarWhitePaperMarketingDailyBuisnessNewsMHProNews

Digital marketing is obviously a large and growing trend in manufactured, modular and other forms of factory-built housing. Housing shoppers routinely use online searches as part of their housing hunt. Thus the relevance to manufactured housing is beyond doubt.

Some bullets from Polar’s Q1 2019 White Paper:

  • 63% of digital goes to the Duopoly, 12% is going to the Next 5.
  • Google is growing 20%, with $115 billion and 43% of the market.
  • Facebook is growing 33%, with $54 billion and 20% of the market.
  • Next 5 (Amazon, Microsoft, Oath, Twitter, Snap) have $29 billion, 12% of the market, 42% growth.
  • Rest of the digital market will decline 11% in 2019. Social leads the pack, growing from $185b today, 40% of the ad market by 2022 .
  • Video is $28b, growing 15% (in line with market) to $48b by 2022.
  • Search, Banner, and Classifieds all growing less than 10%.

 

ChangingTidesMediaBudgetsManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Insights, Analysis

The Daily Business News on MHProNews has noted since the launch of our publication the obvious need to have a good digital – online – presence.

 

DesktopIsNewPrintDigitalMediaByDeviceManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

In more recent years, MHProNews spotlighted the challenges of the concentration of money and power in monopolistic moat builders.  We’ve specifically cited Facebook, Apple, Amazon, Netflix, Google (FAANG) -all digital platforms.  So the problem isn’t just Berkshire Hathaway – or BRK Chairman Warren Buffett’s close buddies at Microsoft – in terms of “strategic economic moats.”  That should not be construed to mean that only those firms should be considered as possible targets for antitrust – monopoly-busting – and other legal, legislative and/or regulatory actions.

 

PolarIncreseDecreasebyChannelDigitalMediaManufacturedHousingIndustryMHProNews

 

The power of Facebook and Google goes beyond marketing, into influencing millions of actual and prospective voters. See the related reports, further below.

Google and Amazon have entered into factory building, directly and/or indirectly.  There are so many subsidiaries to Facebook that they – along with some of these other giants conglomerates, may have more than a marketing or tech interest in factory-based home building.

PolarDigitalGiantsManufacturedHousingIndustryDailyBuisnessNewsMHProNews

As MHProNews led-the-way last year in reporting, the Trump Administration has already drafted an Executive Order for antitrust action.

Further, Democrats have made anti-monopolistic behavior part of their so-called ‘new deal’ platform.

So, while the data from Polar might accurately reflect the current digital status quo, it doesn’t take into account several issues relate to hot button issues that impact manufactured home connected business and organizations of all kinds.

BloombergPewResearch72PercentAmericans85PercentRepublicansThinkSocialMediaIntentionallyCensorPoliticalViewpointsObjectionableDailyBusinessNewsMHProNews

 

Among the concerns are how the search/social media/tech giants have been accused of manipulating search results for or against certain viewpoints.

 

 

One other takeaway from this report is that the digital giants are slowly squeezing mainstream media outlets for revenue.

It should be noted that MHProNews’ parent operation has more than one revenue source, thus ad revenues alone are technically not necessary to sustain our operation. That also give us the ability to investigate stories that toadies for the powers that be would never dare publish, regardless of the evidence.

Here is the download of the entire 31 page Polar white paper.  That’s “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” © ##  (News, analysis, and commentary.)

 

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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.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

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2) To pro-vide 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 Re-sources

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.

 

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New York Times-David Leonhardt-“The Monopolization of America,” Manufactured Housing Slant

 

 

 

 

 

 

 

Cavco Industries (CVCO) Class Action Suit

January 28th, 2019 Comments off

 

CavcoIndustriesLogoCVCOLogoClassActionLawsuitShareholdersManufacturedModularHousingDailyBusinessNewsMHProNews

The draft of the pending class action suit against Cavco Industries (CVCO) is the result of a news tip to the Daily Business News on MHProNews.

 

As regular MHProNews readers know, there are numerous law firms circling Cavco.  This report will review some key claims of the Howard G. Smith lawfirm’s attorneys, acting on behalf of CVCO shareholders in the pending suit.

Quoting from the attached draft, this report will start with – the Nature and Overview of the Plaintiffs Pending Complaint?

  1. This is a class action on behalf of persons and entities that acquired Cavco securities between August 6, 2018 and November 8, 2018, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

 

  1. On November 8, 2018, the Company revealed that it had received a subpoena from the SEC’s Division of Enforcement on August 20, 2018, requesting certain documents relating to trading in the stock of a public company, and that then-Chief Executive Officer Joseph Stegmayer had received a subpoena regarding similar issues on October 1, 2018.

 

  1. On this news, the Company’s share price fell $49.48 or over 23%, to close at $165.20 per share on November 9, 2018, on unusually heavy trading volume.

 

  1. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had agreed to refrain from trading the stock of public companies; (2) that, after such agreement, the Company’s CEO had engaged in the trading of the stock of public companies; (3) that such trading activities were reasonably likely to subject the Company to regulatory investigations; and (4) that, as a result of the foregoing, Defendants’ positive statements about 2 the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

 

  1. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.

 

CLASS ACTION ALLEGATIONS

“(1) that the Company [Cavco] had [previously] agreed to refrain from trading the stock of public companies;

 

(2) that, after such agreement, the Company’s CEO [Joe Stegmayer] had engaged in the trading of the stock of public companies;

 

(3) that such trading activities were reasonably likely to subject the Company to regulatory investigations; and

 

(4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

 

  1. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:

 

  1. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.”

 

 

Specific and Broader Take-Aways?

There are some voices in the industry’s legal community that indicate that the phrasing used above could potentially be used against some other publicly traded companies, specifically those associated with the Manufactured Housing Institute (MHI). If so, that in turn could mean MHI members who ignore the risks associated with the reports like the one linked here could be putting their shareholders at risk too.

Keep in mind that a contact at the Securities and Exchange Commissions (SEC) would neither confirm nor deny that Cavco is being investigated for possible market-rigging collusion in connection with Clayton Homes, a Berkshire Hathaway (BRK) subsidiary. Stegmayer was prior to going to Cavco, a Clayton division president. There have been persistent rumors among some HUD Code manufactured home independents and others that the move by Stegmayer to Cavco was part of a plan hatched at Clayton. But there is no documentation that has yet to be provided to MHProNews that supports such a claim. Why is that of interest?

Consider the second point from the plaintiff’s draft foundation.

Cavco purports to design and produce factory-built homes and to build park model RVs, vacation cabins and systems-built commercial structures.” Purports? Isn’t that the obvious thing that they are doing? Is the Howard G. Smith law-firm signaling that they have something more?

It should be noted that the Manufactured Housing Institute (MHI) has been characteristically mute on this developing issue. Stegmayer remains in place as the MHI Chairman.

Note too that some bloggers in the industry have attempted to white-wash the seriousness of this matter. There are those who believe that those cheerleading bloggers and ‘trade media’ are acting as a deliberate distraction mechanism from MHI and their puppet masters.

 

A contact at Cavco declined commenting about the specifics of the matter, saying to publisher L.A. ‘Tony’ Kovach “No comment sorryI appreciate the offer (to share a Cavco viewpoint). You are an honest man no matter what George [Allen] says…” It was an interesting comment, as doubtless many at the firm have been harmed, specifically if employees are also shareholders. It should be noted anew, given cheap shots from the galleries, that MHProNews follows the known facts, evidence, and the money.

The full draft legal document against Cavco is attached here.

There is speculation from a source that the draft was provided to MHProNews perhaps as a negotiation tool with Cavco, to use as leverage to quietly settle the case. MHProNews is not in a position to comment on the motivations, or lack thereof, of those who provide authentic news tips backed by evidence.

 

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There’s more on this evolving Cavco Industries (CVCO) and inter-related topic that MHProNews has obtained. In the days ahead, related reports will be published, possibly during the Louisville Show. Watch for it and sign up for the industry’s leading emailed headline news, found at the links below.

As a disclosure, MHProNews’ parent company management holds no position in any of the tracked stocks we include in our evening market report. Friday’s report is linked here. That’s MH “Industry News, Tips, and Views Pros Can Use” © where “We Provide, You Decide.” ## © (News, analysis, and commentary.)

 

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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.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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

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2019 Trade Shows, Next Battleground of the Manufactured Housing Revolution?

January 7th, 2019 Comments off

 

2019TradeShowsNextBattlegroundTheManufacturedHousingRevolutionDailyBusinessNewsMHProNews

Capital, other market manipulations, plus an apparent failure by the Arlington, VA based Monopolistic Housing Institute (MHI) to deliver on their self-proclaimed ‘promotion’ of the industry are obvious takeaways from the latest new HUD Code manufactured home (MH) shipment report. But those are not the only problems that the Manufactured Home (MH) industry and its numerous varied professionals face. Yet, every problem – properly understood – is an opportunity in disguise.

 

Cohesion – so called ‘unity’ – sounds like a noble goal. But for various reasons that aren’t the focus of this column, cohesion won’t possibly be achieved accept by conquest of the larger powers, OR until clear alternatives to the present Omaha-Knoxville-Arlington axis power structure in MHVille are established.

Without balanced and mutually respected interests, how else could cohesion or unity be achieved?

The aim of alternative structures in MHVille should not be to create a new monopolistic nexus that challenges the current monopolistic one.

Rather, the goal should be to fuel in an authentic manner what made manufactured housing a far greater – in sheer size and scope – the industry in the past to begin with. Diversity! Thousands of MH Independents, and hundreds of different independent producers.  There was diversity galore in those MH Industry glory days gone by.  That’s how growth is proven to occur.

 

Genuine vs. Weaponized Insights

To be historically more accurate about manufactured housing, what too many industry pros never lived through – and thus never understood – is that the old Fleetwood and the old Champion home builders each established their own unique vertically integrated machines in the 1990s.  Those firms are not the Fleetwood or Champion of today, but the names are similar.

The old Fleetwood and the old Champion had a similar thirst for market domination as Warren Buffett, Berkshire Hathaway, Kevin Clayton and Tim Williams at 21st Mortgage jointly share. The ongoing relevance of the Manufactured Housing Association for Regulatory Reform (MHARR) has long been as a counterweight to the Machiavellian Housing Institute, err, Manufactured Housing Institute, then or now.

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Satirical Manufactured Housing Institute (MHI) logo provided under fair use guidelines.

The names at the top of the pile at MHI have changed, but the challenges have has some similarities.

Monopolistic practices that manipulate capital access, political, placement, and regulatory schemes are the enemy. What MHARR, or National Federation of Independent Business (NFIB) have done for decades for smaller firms is provide the authentic cover that MHI has arguably long neglected.

Hundreds of manufactured housing firms, per sources at NFIB, are members of that organization. If the MH industry felt fully represented by MHI, what would lead so many to join organization’s like MHARR or NFIB? What would spark the revolt among community owners that has led to NAMHCO? New and existing alternatives to MHI should be fueled, not thwarted.

The Omaha-Knoxville-Arlington axis is simply better at building moats than Fleetwood and Champion were. By ‘better,’ one should understand ‘cheaper.’

For example, the old Fleetwood and Champion arguably overpaid in many cases for the retail centers they acquired. By contrast, the evidence in the linked reports reflect that Buffett’s style of moat-building underpays for businesses. They accomplish that by artificially depressing sales and thus business and/or property valuations.

That process thereby creates the “value” acquisition Buffett and his longtime partner Charlie Munger crave. The rest are details and commentary.

Manufactured Home Production Decline Accelerates in November 2018

It is Buffett who reportedly said he wants sharks in the waters of his Moat, not MHProNews. We simply accept that – plus the evidence of his, Kevin Clayton, and Tim Williams – each at their own words. Perhaps one reason why – until this point in time – that their respective attorneys rattle sabers in our direction instead of just sue, is that they know that it is hard to argue with their own words.

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Which leads us to trade shows and the opportunity for the next phase of the Manufactured Housing Revolution.

New Era in National U.S. Manufactured Home Community Representation Underway?

 

 

Show Ways Unlimited and Manufactured Housing Trade Shows

Sources with close ties to Show Ways Unlimited are among those that shed light on how Clayton allegedly manipulated the now defunct Carolina show, and tipped it out of existence. Those same informed sources have said that Clayton only entered the Louisville Show as a defensive mechanism, to counter the independents who were behind the revival of the show. Team Clayton has been working to undermine the Tunica Show, per sources, by establishing their own show in Birmingham, AL. Those claims are whatever they are, and should be discerned in the light of the evidence.

Meanwhile, the current trade shows are nothing like the glory days of Louisville or the Nashville Show, which was the forerunner of the Tunica Show. Back in the glory days, 100, 150, or 200 plus new homes used to crowd exhibit halls and parking lots.  Professionals from around the world attended those much larger events. The mainstream media came too, just as they do today for automotive, RV, and boat shows.

One question that potential MH Revolutionaries must ask is this. Is this going to be an industry on the rise or slide?  Do you want to enhance the income-producing and exit-value of your business, or do you want to sell it someday cheap to a monopolistic player?

One must look at authentic manufactured housing history, not the weaponized version that some like George F. (F?) Allen produces, that later version of which magically places Allen himself in the center of the MH Universe.

Allen, like MHI, is arguably a would be power-broker. If he and his MHI supported allies can succeed at diminishing the largest trade publisher in the industry – MHProNews – that would make Allen appear to be bigger than he is. It’s somewhat like taking a lake and shrinking it, to make little fish look bigger. Sad.

What MHI and Allen have in common are meetings that draw a crowd, however modest. Never mind that those crowds are small compared to a manufactured housing trade show. For those who would shrink an industry in order to grow their own influence, it is arguably a bit like Buffett’s moats. Only G F (F?) Allen’s is discernably cruder in execution.

A key to authentically re-growing the industry has long been about more than attracting more industry professionals to an event. As or more important, one must also attract mainstream media, new potential lenders (as Triad has done for years), and investors. Then, post-industry trade days, there must also be public days.  It worked in the past, why not now?  It’s worked for RVs, and other industries, why not ours in MHVille?

 

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

Click here to learn more.

Among the most common comments heard at Louisville and Tunica every year from exhibitors is, why aren’t there public days?  The same old tired story is given in reply by show management, year after year.  Who does that old, tired cover-story benefit?

This writer had an operation that used what amounted to ‘public days’ to sell dozens of additional homes per year to retail customers. Few things would serve to remove the stigma of the industry better than spotlighting realty, instead of allowing the old ‘mobile home’ or ‘trailer house’ stereotypes to live on.

WhenTrailerTrashIsntWhatYouThinkcreditMHProNews-postedtothedailybusinessnewsmhpronewsFrankRolfe

See the entire article and other industry reactions, at this link here.

 

PewResearchRentalHouseholdsManufacturedHousingIndustryDailyBusinessNewsMHProNewsThere is an obvious opportunity to start that ball rolling at the upcoming 2019 trade shows. That is where hundreds of independent retailers and communities will be.  But those must be an organizing stepping stone to something that is entirely new in 2020.

That there is frustration in MHVille is apparent to all who will listen.

The launch of a new community association is but one example. The longtime existence of MHARR as a counterweight to MHI is another. A third is the #NobleNotMobile concept. Like MHI member Frank Rolfe’s lament against MHI and what he called their hypocrisy, Paul Bradley and ROC USA are MHI members too.  Bradley was clearly no longer satisfied with what MHI claims as promotion. Thus Bradley and his colleagues conceived of #NobleNotMobile, and that’s how frustration gave birth to action.

There are 22 million Americans living in pre-HUD Code mobile homes, and post-HUD Code manufactured homes. There are millions more in the U.S. who rent. According to Pew Research, CityLab and others, about 100 million in the U.S. are living in rentals. Most of those obviously fail to seriously consider manufactured housing as an option, in part, due to the ‘trailer’ stigma.

Ten percent of either of those 2 populations groups could swing many elections in the nation. Something similar could occur in Canada, for that matter.

The ability of the industry to achieve it full potential lies not along the proven failed path of the Manipulative Housing Institute, and the arguably hypocritical and jealous path of yesterday’s news, George F (F?) Allen.

The path is to forge new structures that fuel independents. That must avoid the problems that made MHI the Menacing Housing Institute that it has become.

The humble observations, evidence, allegations, history, and logic herein are for the industry’s and investors consideration.

Among the next questions should be this one. At what point will the bulk of the industry’s remaining independents realize that their numbers are still shrinking? They are shrinking in the community and retail sides.

The number of retailers and communities are shrinking during an affordable housing crisis.  Is that coincidence or market manipulation? Who’s side is MHI on? In that battle, who’s side has George F. (F?) Allen taken?

The new HUD Code manufactured home shipment tallies are going to be low and vulnerable to many headwinds so long as the number of distribution points, producers, capital access, and image all remain artificially limited.  That’s what producers – including MHI members – tell us.

The fact that the Omaha-Knoxville-Arlington Axis would apparently stoop to using a surrogate like George F (F?) Allen, speaks volumes. It’s the latest in a series of over-the-target reactions, previously reported. See the linked report, further below.

 

Taking Charge of Your Own Future by Teaming with Others Like Yourself

The time to take the bull by the horns is now. Hundreds of billions in new capital is flowing into the U.S. Jeff Bezos led Amazon’s Alexa Fund estimates that the market potential is $330 billion annually.

You do the math that mathematically-challenged MHI can’t or won’t do for you. They claimed, incorrectly (again), the Manufactured Housing adds $3 billion a year to the economy. At retail in 2017, the obvious math was some $6.5 billion.

Divide $6.5 billion into $330 billion.

The product of the above is how much the potential growth could be for factory-homebuilders of all kinds.

MonopolisticHousingInstituteLogoMHILogoManufacturedHousingInstiutteLogoLarge

New paths, new structures to do for retailers, communities, and all others in the industry are how that potential is to be tapped. That’s the next step in the Manufactured Housing Revolution. Ready to take that next step?  Ready to take a step that will liberate you from the Omaha-Knoxville-Arlington Axis? “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

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

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Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

Manufactured Housing Institute Housing Alert, Affordable Housing Crisis, MHI’s #NettlesomeThings Response