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Pain, Pleasure, Persuasion, Honesty, and Sustainable MHVille Profits

September 9th, 2018 Comments off


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There are precisely three ways to influence any organization of whatever size.

Influence can only occur:

  • From within an organization,
  • from outside of a given group or
  • from a combination of both.

That’s the clarity of applied logic or common-sense reasoning.

PainPleasurePersuasionHonestyAndSustinableMHVilleProfits

Pain, Pleasure, Persuasion, Honesty, and Sustainable MHVille Profits.

Day by day, MHProNews and MHLivingNews presents facts, figures, evidence, analysis, reasoning, and specific stories.

Why?

Because it works. Reasoning and stories influence people.

Let’s be clear. Some will run from reason or will avoid topics that make them uncomfortable. But the subconscious mind, once exposed to a fact, doesn’t readily forget it. Facts and evidence may get drowned out for a time, but reality has a way of making a comeback.

Pain in the body is a signal that something is wrong. Pleasure and pain can both be manipulated. Emotions used correctly motivates, used incorrectly, can be tricked and manipulated. Humanity was created with both emotion and the ability to reason.

Carrots, sticks, and repetition are how people get attracted, maneuvered, or manipulated. But a cogent presentation of facts and evidence can cut through the noise with some, and those people can in turn influence others.

Let’s start with an example outside of professional associations, but that still matter to everyone in MHVille. Manufactured home (MH) resident groups.

MH resident groups can be right, wrong or a combination of those.

But right or wrong, MH resident groups clearly have influence. Here are a few examples:

  • For years, the Manufactured Housing Consensus Committee (MHCC) has had one or more resident group members on it. The MHCC, which meets again this week, has legally established influence at HUD, under the Manufactured Housing Improvement Act of 2000 (MHIA).
  • You may or may not give the MHCC a second thought. But the Manufactured Housing Association for Regulatory Reform (MHARR), and the Manufactured Housing Institute (MHI), some companies, and state association certainly do. So do resident groups. Because the MHCC can influence several things that impact the HUD Code manufactured homes that are sold by the industry.
  • At state legislatures, at the local governments level, or in congressional hearings, resident groups have and can make a difference for or against a pending law or other administrative actions.

Knowing this about resident groups, there are state associations that work with them as best they can.

MHARR has had contact with them too, on issues like the Duty to Serve (DTS) Manufactured Housing mandated for the Government Sponsored Enterprises (GSEs or Enterprises) of Fannie Mae or Freddie Mac by the Housing and Economic Recovery Act (HERA) in 2008.

As those who have sat in MHI meetings know, MHI leaders have often cursed resident groups. But like them or not, NMHOA, MHAction and their state affilates are a reality. Better deal with them, or one must find a way to replace their influence with something better.

MH Resident groups matter.

As community owners in numerous states have learned, resident groups can’t be ignored. If they are ignored, it is only at a cost. So, you don’t have to like MHAction or NMHOA to realize they’re a reality that influences bottom-lines literally from coast-to-coast.

But up until recently, who has thought to challenge them in publicly in a debate? Or what about supplanting/replacing them when they won’t see reason on issues that can improve the lives of residents they claim to care about, as well as businesses like yours?

Let’s look at another example, from outside or MHVille. Political parties and candidates.

What government at all levels does or doesn’t do absolutely influences businesses of all sizes. That’s true in and beyond manufactured homes.

So, MHProNews uniquely looks at “News Through the Lens of Manufactured Homes, and Factory-Built Housing.” ©

You ignore politics at the risk of your investments of time, talent, and treasure.

You might have the best product, service, value, and the happiest customers. But government action or inaction on an important issue can strengthen, weaken, speed, slow or destroy your business.

The power to tax, and the power to regulate involve are the power to destroy. That’s based on a Supreme Court justice’s famous statement, shown below. That’s reality.

JohnMarshallSupremeCourtJusticePowertoTaxInvolvesPowerToDestoryPowerToDestroyMayDefeatPowertoCreateQuoteDailyBusinessNewsMHProNews

Like it or not, political parties, resident groups, associations, and media all influence government.  Government in turn sets the rules that can make or break your business.

So, if you want to be successful long-term in business:

1)    you have to go beyond product, service, marketing, sales and technology. You have to be aware of, and hopefully influence those, that influence others.

2)    If you don’t pay attention to those outside factors, others are and will set the rules of the game in ways that will help or harm your business.

ManufacturedHousingAssocRegulatoryReformJOINMHARRbani-200x200

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

3)    The same is true for homeowners. Whatever the intent of their members, NMHOA and MHAction arguably advocate for things harmful to manufactured home owners and businesses alike. Proving the harm of radical activists by a cogent use of facts, evidence, and reasoning is thus useful to all.  By all, that means the vast majority of MH home owners, as well as to MH businesses of all sizes and types.

4)    The same is true of both major parties. As political independents, we can say there is one thing about the Democratic platform that – on paper – is good for independent businesses. What is it? Their antitrust/anti-monopoly plank could, if used properly, make a difference for small businesses. But we frankly don’t see Democrats using it yet. Republicans – the so-called Grand Old Party or GOP – tends to be more pro-businesses.  But the GOP has for years done, or failed to do, certain things that harm independents of all sizes. But now, at the federal level and in dozens of states, the GOP has a modest edge in the branches of elected government.

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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.

5)    Thankfully, under President Donald J. Trump’s leadership, he is addressing issues in the GOP like the border, immigration, regulatory relief, tax cuts, tax reform, attracting more capital, putting solid Constitutionally minded justices on the Supreme Court, protecting religious liberty, job creation, helping wages rise naturally, education, etc. These are all pragmatic.  They are useful to people and businesses alike. Thus, Pro-Trump candidates are thus getting our vote and editorial support.

But the point of this analysis and commentary is this.

You may be the most honest or ethical person in your town. You may have great value and service. But as ELS’ Sam Zell observed, others with no investment in your company or profession others can make, break, minimize or maximize your business, profits, and results.

That’s why on the slowest day of the Labor Day weekend, literally thousands of more professionals were reading and viewing content on MHProNews than any other similar trade resource in our industry. Because we at MHProNews and on MHLivingNews keep our eyes on issues that matter to you, as well as to your present, and potential customers.

Pain, pleasure, persuasion, and honestly sustainable MHVille profits can only be achieved via reality-based action. That requires solid information. Day-by-day, we bring you the MH “Industry News, Tips, and Views Pros Can Use.” ©

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This sponsor‘s ad is not connected with the story it is posted in. To learn more, click here or the image above. 

For our Jewish friends and colleagues, happy Rosh.

With no further adieu, let’s look at the headlines, reports, facts, and stories that can help make you navigate business better and more profitably.  Together, let’s look at the issues that can make manufactured homes more available to millions of potential buyers, who should become happy home owners. We’ll start with MHLivingNews, the Masthead, and then do the Daily Business News recaps for last week.

What’s New on MHLivingNews

mhlivingnews-improvedlivingforle-logo

Affordable Living! Before and After Video, Remodeling a 1972 Mobile Home, Under $5,000

Affordable Living! Before and After Video, Remodeling a 1972 Mobile Home, Under $5,000

What’s New on the Masthead

“How Dare You…!” ELS’ Howard Walker Blast at MH Industry Professional

“How Dare You…!” ELS’ Howard Walker Blast at MH Industry Professional

What’s New on the Daily Business News on MHProNews

1DailyBusinessNewsLogoMHProNewsLogo-1

Saturday 9.8.2018
Shanah Tovah, Happy Rosh! About Leaping Cultural Barriers, and Where the Buck Stops

Shanah Tovah, Happy Rosh! About Leaping Cultural Barriers, and Where the Buck Stops

Friday 9.7.2018

Former President Barack Obama Says President Trump is “Symptom, Not the Cause,” plus MH Market Updates

Former President Barack Obama Says President Trump is “Symptom, Not the Cause,” plus MH Market Updates

Clayton Homes and 21st Mortgage’s Manufactured Housing “Spies”

Clayton Homes and 21st Mortgage’s Manufactured Housing “Spies”

Manufactured Housing Production Report – After Slow June 2018, July 2018 Increases

Manufactured Housing Production Report – After Slow June 2018, July 2018 Increases

“Growth,” “Fight on to Victory,” “One People, One Family, and One Glorious Nation Under God”

“Growth,” “Fight on to Victory,” “One People, One Family, and One Glorious Nation Under God”

 

Thursday 9.6.2018

Facebook Recent Big Hit, More Trouble Ahead? Plus, MH Market Updates

Facebook Recent Big Hit, More Trouble Ahead? Plus, MH Market Updates

Hot MHVille Issue, Boils Among Most Americans too

Hot MHVille Issue, Boils Among Most Americans too

“Disastrous,” “Uncompetitive” “Takeover” of “Government Sanctioned Monopoly” Blasted in Congress as Bi-Partisan Fix Unveiled

“Disastrous,” “Uncompetitive” “Takeover” of “Government Sanctioned Monopoly” Blasted in Congress as Bi-Partisan Fix Unveiled

Deaths in MH Communities from Trees Falling, “Get to the Root of It”

Deaths in MH Communities from Trees Falling, “Get to the Root of It”

 

Wednesday 9.5.2018

Like No Place Else, plus Manufactured Housing, Stocks, Market Updates

Like No Place Else, plus Manufactured Housing, Stocks, Market Updates

8 Questions for Joe Stegmayer, George Allen, Spencer Roane, GSEs, MHI, FHFA, Other Presenters At Indianapolis Roundtable Meeting

8 Questions for Joe Stegmayer, George Allen, Spencer Roane, GSEs, MHI, FHFA, Other Presenters At Indianapolis Roundtable Meeting

MH Communities, Owners, MH Independents Alert – NMHOA and MHAction Next Steps? – Part 1

MH Communities, Owners, MH Independents Alert – NMHOA and MHAction Next Steps? – Part 1

NDAs, Warren Buffett, Richard ‘Dick’ Jennison, Manufactured Housing Institute (MHI), and MHVille

NDAs, Warren Buffett, Richard ‘Dick’ Jennison, Manufactured Housing Institute (MHI), and MHVille

 

Tuesday, 9.4.2018

Senate Hearings, “High Tech Lynching” plus MH Market Updates

Senate Hearings, “High Tech Lynching” plus MH Market Updates

Blue Collar Worker Attitude, Outlook, Finances – Latest Data, Express-Harris Survey

Blue Collar Worker Attitude, Outlook, Finances – Latest Data, Express-Harris Survey

Main Place in MHVille That’s Cracked the Glass Ceiling?

Main Place in MHVille That’s Cracked the Glass Ceiling?

50 States Ranked by Income, Credit – Manufactured Housing Marketers Data, Cheet Sheet

50 States Ranked by Income, Credit – Manufactured Housing Marketers Data, Cheet Sheet

 

Monday 9.3.2018

2018’s Hardest-Working States in America, How Does Your State Rank?

2018’s Hardest-Working States in America, How Does Your State Rank?

Manufactured Housing’s Labor Day, Celebrating Those That Do the Work

Manufactured Housing’s Labor Day, Celebrating Those That Do the Work

Manufactured Home Retailers, Communities, Is Your Merchandising Nordstrom’s or Salvation Army? Monday MH Marketing, Sales Meeting

Manufactured Home Retailers, Communities, Is Your Merchandising Nordstrom’s or Salvation Army? Monday MH Marketing, Sales Meeting

Tucker’s “Tech Tyranny,” Luther Lowe-SVP Public Policy@Yelp, Author Scott Clelan, “Should Government Intervene?”

Tucker’s “Tech Tyranny,” Luther Lowe-SVP Public Policy@Yelp, Author Scott Clelan, “Should Government Intervene?”

 

Sunday 9.2.2018

Biblical “Talents,” Words, Ideas, Evidence, and Practical Impact on Manufactured Housing, Sunday Morning Recap, MHProNews Headlines Aug 26 to Sept 2, 2018

Biblical “Talents,” Words, Ideas, Evidence, and Practical Impact on Manufactured Housing, Sunday Morning Recap, MHProNews Headlines Aug 26 to Sept 2, 2018

We’re a team, a family here. We can’t do it without you, and frankly, thousands of manufactured housing pros need what we do as independent reality checks. Our sponsors make that possible. Thanks to our readers, and to those who make this platform the runaway #1 in the industry. Make sure you keep up to date, and encourage your team members to do the same. ## ## (News, analysis, and commentary.)

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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.

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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.

Apartments vs. Manufactured Housing, NMHC and NAR Data, Opportunities

August 18th, 2018 Comments off

 

ApartmentsVsManufacturedHomesNMHCNARDataOpportunitiesDailyBusinessNewsMHProNEws

National Multifamily Housing Council® (NMHC) and National Association or Realtors® (NAR) are the sources for bulk of the data and graphics, shown below.

 

The executive summary could be captured with a statement made by Scholastica ‘Gay’ Cororaton, Certified Business Economist (CBE), with the National Association of Realtors® (NAR).

MonthlyMedianGrossRent2016HousingTypesManufacturedHomesScholasticaGayCororatonNARDailYBusinessNEwsMHproNews

Note there seems to be a difference between NAR and NMHC data on median rents.

She said “Based on 2016 latest data, the median household income among manufactured homeowners was $43,900, about half the median household income among all homeowners.  The median household income of manufactured homeowners is about the same as the median income of all renters, at $42,500. This indicates that renters can transition to homeownership without significant change in housing expenses via ownership of a manufactured home, if other factors that homebuyers look for are also met (e.g., accessible transportation, presence of a good school, other neighborhood qualities).”

Let’s start with the age of multifamily housing rental units, which many may find surprising.

Why?

WhenWhereApartmentsBuiltNMHCDailyBusinessNewsMHProNews

Because out of 19.506 million apartment units, using NMHC data, 10.316 million were built after 1980.

CharacteristicsofAptRentalUnitsNMHCDailyBusinessNEwsMHProNews

So, over 9 million units were built before 1980, with 2.137 million units built on or before 1939.

NMHCAptMedianRentNMHCDailyBusinessNewsMHProNews

Note there seems to be a difference between NAR and NMHC data on median rents.

Cororaton’s data reveals that it would be a simple budgetary change to go from an apartment to a manufactured home.  Her data also shows the appreciation possible in a modern manufactured home.

ComparisonMonthlyPaymentsChattleLandHomeMixedVsConventionalExistingHomesNARScholasticGayCororatonDailYBusinessNewsMHProNews

By contrast, there is obviously no equity in an apartment rental.  So there’s about 225 percent more apartments than manufactured homes. Since turnover is steady in apartments, that’s a vast market opportunity.

DTIRatiosConventionVsManufacturedHomesNARSchoalsticaCororatonApartment construction is booming.

HousingAppreciationByLoanTypeManufacturedHomesScholasticaGayCororatonNARDailyBusinessNewsMHProNews

Like RVs, they are out-performing manufactured homes by a country mile.

What RV Industry’s 2018, Prior Results Reveal for Manufactured Housing

The RV report, linked above, reminds professional readers and investors that RVs trailed manufactured housing in 1998.  20 years later, they are outselling manufactured homes by some 5 to 1. See that report to learn more.  It’s opportunity in disguise for those who see it, and get it.

SunCommunitiesSUI-InvestorPageComparetoMultiFamilyHousing10ManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

Graphic, data, per Sun Communities (SUI).

There is a need for every kind of housing that exists.  Some need or want a short- to medium-term rental. But with hundreds, if not thousands, of manufactured home communities offering rentals, that too could be a market for the manufactured housing industry.

When Bloomberg, NAR and others are increasingly featuring positive news about manufactured homes, that should make investors sit up and take notice.

Bloomberg “New Home for $90,000? Manufactured Housing Is Making a Comeback” Reveals MH Media Challenge

Even high rises could be done with manufactured homes, when density is an issue. See that related report, linked below.

So manufactured homes are a common-sense choice. Millennials and others must be shown why they are a cool, even savvy, option.

IfPrettyPicturesVideosAloneWereEnoughMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews1

Learn more about the above, linked here.

Perhaps these are among the reasons why the Blackstone Group has recently entered the manufactured home space? See that in the related reports, linked below.

Notice: We plan an upcoming report on MHLivingNews on this issue, designed for the general public.  Sign up herein seconds for our industry-leading, typically x2 weekly, emailed headline news updates. “We Provide, You Decide.”  © ## (News, analysis, and expert commentary.)

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L. A. “Tony” Kovach and his wife Soheyla co-founded and publish the manufactured home industry’s two leading tradeLATonyKovachMHLivingNewsMHProNewsPublisherIndustryExpertConsultant

media; Manufactured Home Living News (MHLivingNews.com) and MHProNews.com for business professionals and investors.

Kovach’s work has been featured in publications such as the Washington D.C.’s The Hill, Value Penguin, Chicago Sun Times, and a host of other media. He’s been involved in the manufactured home industry as a manager, high-volume retail center owner, consultant, and publisher for over 25 years. Kovach has likely interviewed more industry professionals, experts, and manufactured home owners, than anyone in U.S. news media.

 

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

Related Reports:

Blackstone Brilliantly Bets Big On Manufactured Housing, Enters Manufactured Home Communities Contest

High-Rise Manufactured Home Stackable Towers, Compete with Modular/PreFabs, Density at Lower Cost

 

Fresh Facts, Figures, Future of Affordable Housing -Comparisons- Conventional Site-Built v Mobile/Manufactured Home Industry Data

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

 

Warren Buffett Would be Okay With Clayton Homes Losing Money, Says Kevin Clayton – But Why?

Manufactured Housing Shipment Totals, June 2018

The Carlyle Group’s (CG) Lows and Highs, per Recent Stock Market Reports

December 8th, 2014 Comments off

The-Carlyle-Group=CG-logo-posted-daily-business-news-mhpronews-com-In a recent market report, WKRB News & Analysis  tells MHProNews  that shares of The Carlyle Group (NYSE:CG) traded down 1.55% during mid-day trading on Thursday December 4th, hitting $28.01. The stock had a trading volume of 29,791 shares. CG had a one year low of $26.34 and a one year high of $39.38. The stock had a 50-day moving average of $28.9 and a 200-day moving average of $31.44. 

CG has a market cap of $1.887 billion and a price-to-earnings ratio of 13.69.

CG is billed as a global alternative asset management firm, focused on specialized investment funds in a range of industries, geographies, asset classes and investment strategies. These include manufactured home communities.

According to the Wall Street Scope: “The Carlyle Group LP (CG) performed below average with a weekly performance of -1.69% moving into this week with a quarterly performance of -11.96% and a 52 week low of 9.02%. The Carlyle Group LP (CG)’s monthly performance sits at 0.46%, profit margin 3.50%, 22.24% insider transactions.”

In another report by InterCooler,  that The Carlyle Group’s earnings results on Wednesday, October 29th reported $0.55 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.54 by $0.01. The company had revenue of $755.00 million for the quarter, compared to the consensus estimate of $660.90 million.

CG’s Mark Beliczky told  MHProNews’  L. A. “Tony” Kovach in this video interview above that their firm is interested in doing more in the manufactured home land lease community space.

On average, analysts predict that The Carlyle Group will post $2.69 earnings per share for the current fiscal year. CG is one of the tracked stocks in the Daily Business News MH market report, and the Friday closing results are posted at this link. ##

(Photo Credit: Binary Tribune)

joseine-josie-thompson-writer-daily-business-news-mhpronews-com50x50-Article submitted by Josie Thompson to – Daily Business News – MHProNews.

Chinese Homebuyers Buoying the U. S. Housing Market

July 23rd, 2014 Comments off

According to CNNMoney, the Chinese are now the biggest international buyers in the U. S. housing market, and over half of the $22 billion they spent on homes for the year ending in March was spent in California, New York and Washington, according to the National Association of Realtors (NAR). California is popular because it is close to the mainland, the climate and lifestyle are attractive, there is already a strong presence of Chinese, and many work in the high-tech industries; but the demand is also driving the prices higher, especially in San Francisco. A real estate agent who caters to Chinese real estate investors in New York regularly sells homes for $1 to $4 million as investments, MHProNews has learned. Nearly 40 percent of the buyers will live in their homes in the U. S., although almost half the purchasers will never set foot in the homes, using them for investment only. Many Chinese parents are buying condos for their children who are attending school in the U. S. Surprisingly, homes in Texas and Michigan are also growing in interest : Plano, Texas, outside Dallas has one of the highest concentrations of Chinese residents in the country at 5.25 percent. ##

(Photo credit: Rick Puckett/santacruzpictures.com–Santa Cruz, California)

Former Site-built Homeowner moves to Manufactured Home

June 24th, 2013 Comments off

Real estate activity is ramping up in Eugene, Ore. as low inventory is producing multiple offers, and in some case bidding wars, driving prices up, especially on homes under $250,000. Carol John bought a three-bedroom home in 2010 for $283,000. As her investments soured during the recession and she wanted to downsize and economize, she sold it for $280,000 and purchased a manufactured home for $137,000 in a land lease community. “So I didn’t really lose much, but I didn’t gain anything” she says. As MHProNews has learned from registerguard, Ms. John’s transactions were completed within two weeks, as she prepares to move into her new home July 16.

(Photo credit: Pine Grove Manufactured Homes)

Kahlbetzer Adds Modular to Holdings

March 11th, 2013 Comments off

According to theaustralian, the Twynam Group of Sydney, Australia has acquired modular home manufacturer Quicksmart Homes and intends to produce 2,000 new homes per year in the next five years. Part of Kahlbetzer Investments, which has extensive agricultural and livestock holdings across Australia, as MHProNews has discovered, Twynam’s real estate division, Jemalong Property Group has experience in the hospitality and educational modular production fields and will now add Quicksmart.

(Image credit: architectureanddesign–Australia Inverloch modular house)

Measure will Shorten Foreclosure Time

February 8th, 2013 Comments off

The chicagotribune informs MHProNews Ill. Governor Pat Quinn has signed Senate Bill 16 to speed up the foreclosure process on abandoned single-family homes and multifamily buildings of less than seven units. The current average of 600 days will be shortened to 90-180 days for foreclosure. In addition, lenders will be required to pay foreclosure filing fees on a sliding scale from $50 to $500 based on the number of foreclosures they file each year. The $120 million in fees expected to be generated over the next three years will go to local governments to offset the costs of dealing with the abandoned homes. Says Gov. Quinn, “This law will help restore neighborhoods and property values while fighting crime and blight by decreasing the time a home sits empty and getting it back on the market quickly. It also allows us to make major investments to keep families in their homes by preventing foreclosures in the first place.”

(Photo credit: merchantcircle)

Got Time? Buy Buffett’s Brain

January 18th, 2013 Comments off

SeekingAlpha, noting trends in the global economy, picks out five stocks it says will be lucrative in the long run, and one of them is Berkshire Hathaway (BRK-A, BRK-B). As the housing market continues to recover, columnist Frank J. Constantino says Berkshire does has a broad range of investments, but a direct tie to the construction industry: Shaw Industries, which sells flooring and carpeting; Benjamin Moore and Co. produces paint and wall coverings; Johns-Manville manufactures insulation and commercial roofing; the Nebraska Furniture Mart, the largest single furniture store in the nation; as well as Clayton Homes, the largest producer of factory-built homes in North America. As MHProNews has learned, while Berkshire trades at 17.7 times earnings, it is trading at 1.3 times book value, a more important indicator. BRK-A was up +0.01% today, and while BRK-B fell -0.27% today, its stock is just shy of its 52-week high.

(Image credit: Wikipedia)

REO-to-Rental Market Expanding

January 9th, 2013 Comments off

Institutional investors as well as nontraditional investors are poised with $6 to $9 billion to acquire REO (real estate-owned) properties that many number from 60,000 to 90,000 in the single-family rental market, according to nationalmortgagenews. Keefe, Bruyette & Woods analyst Jade Rahmani says while this may account for only 15 percent of the distressed market, this REO-to-rental market implies long-term investment and the emergence of an institutional asset class. “Investor interest has increased meaningfully as the large foreclosure inventory combined with a secular shift towards renting has created the possibility of larger-scale investments in the space,” he notes. MHProNews has learned analysts estimate cash returns in the 5-7 percent range with the possibility of 15-20 percent total returns.

(Photo credit: Google Images)

Real Estate Guru Expresses Optimism

November 15th, 2012 Comments off

Dr. Mark Dotzour, chief economist at Texas A & M’s Real Estate Center, proclaims tax credits to buy homes or cars represents a fake economic recovery. When people buy because they want to marks a real recovery, which he says is starting to happen now because there is so much pent-up demand. As reported in CommercialSource, speaking to a National Association of Realtors (NAR) gathering, Dotzour stated that real estate is an investment, but the commodity markets are “hedging instruments, not investments.” He says Americans once again have credit after five years of postponing life events because of the economic downturn, which gives him optimism that the housing recovery is taking hold. But as MHProNews has learned, he also says many commercial real estate loans are buried in the system. Requiring another 5-8 years to flush them out. For more of his remarks, click here.

(Photo credit: CommercialSource/NAR’s Jan Hope welcome Dr. Mark Dotzour)