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

July 17th, 2018 No comments

 

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

 

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

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

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

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

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

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

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

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Click to learn more about this upcoming wholesale event.

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

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

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

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

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We are now accepting applications for manufactured home replacement assistance! 

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

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

HomeOwnershipCenterUticaNYManufacturedHOusingIndustryDailyBusinessNewsMHproNews

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

Program eligibility requirements include:

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

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

       The property must meet the definition of substandard

       Property taxes, insurances and electric bills must be current

       Applicants must occupy the manufactured home as a primary residence

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

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

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

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

Related Reports:

 

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

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

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

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

 

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Emerging Trends, Opportunities, Reflected in Interview with America’s First Black Billionaire, Robert Johnson

April 16th, 2018 Comments off
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Credit, CNBC.

Industries, companies and professionals ignore or overlook emerging trends to their own peril.

 

Significant trends are emerging in the black community, that bear close attention, as a recent interview with America’s first black billionaire, Robert Johnson indicates.

 

Background

Nationally, under 9 percent of manufactured home residents are blacks or African Americans, per the research done by the Consumer Financial Protection Bureau (CFPB) for their 2014 white paper on manufactured housing.

CFPBWhiteppaerRaceEthnicBreakdownManufacturedHousingIndustryHomeOwnershipResidentsDailyBusinessNewsMHProNews

In places like the Chicago metro, there are some land lease communities that have sizable black populations.  In various parts of the country, the black population presents a well-established customer base for manufactured housing sales.

But more is possible, and needed.

As HUD Secretary Ben Carson, M.D., noted last year, home ownership is statistically one of the keys to wealth building. Carson said that the typical renter has a net worth of about $5000, while the typical home owners net worth is about $200,000.

ManufacturedHousingShareofOccupiedHousingUnitsByStateCFPB2014MHIndustryDailyBusinessNewsMHProNews793

In that observation, Carson echoes research produced by CFED (rebranded as Prosperity Now), or commentary by manufactured home advocate, the Rev. Donald Tye, Jr.

The ideal outcome for the vast majority of Americans is to see more home ownership, and a decreasing need for subsidized housing.

In that regard, reams of research reflects the fact that manufactured housing is the all-star solution for largely unsubsidized homes that are affordable to the vast majority of the population. This is true in part because of its superior affordability – and as Carson noted – the surprising quality of modern manufactured homes.  See the related reports for more insights, linked at the end of this article.

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Tye explained that in his experience, subsidized public housing – an entitlement – often yields addiction and other problems. Ownership vs. renting or living in “projects” leads to integrity, a view he likens to those of Dr. Martin Luther King, Jr.

Home sales – conventional and manufactured – often track with employment data. As employment rises, and incomes grow, so too does housing sales.

 

Johnson’s Interview in that Context

In that context, the comments of BET founder Robert Johnson’s interview with CNBC are noteworthy for social, economic, political and opportunities to increase home ownership to a population that lags behind other racial groups.

RobertLJohnsonBETFounderRLJCompaniesFounderWikipediaDailyBusinessNewsMHproNEwsPut differently, the improvements in black employment and earnings, combined with relatively low levels of home ownership are strong potential target markets for manufactured housing companies.

Some of the bullets by CNBC in the video interview with Johnson include:

  • The growing U.S. economy and improving business environment bringing black workers back into the labor force, BET founder Robert Johnson told CNBC.
  • When you look at that, you have to say something is going right,” Johnson says.

 

Highlights from Johnson’s Video Interview

In January, the Labor Department reported the unemployment rate among black workers was at its lowest since at least the early 1970s, when the government began tracking the data.  The unemployment rate for African Americans was unchanged in March at 6.9 percent.

When you look at that [January report], you have to say something is going right,” said Johnson, whom CNBC describes as a Democrat and founder BET and chairman of The RLJ Companies.

You have to take encouragement from what’s happening in the labor force and the job market,” Johnson said “When you look at African-American unemployment, … you’ve never had African-American unemployment this low and the spread between African-Americans and whites narrowing.”

Johnson said that means the jobs market is “soliciting employees who have been out of the labor force, some of it based on discrimination, some of it based on changes in education, access and technology changes.”

Johnson noted several positive initiatives undertaken by the Trump Administration. “I believe if you take into account the Trump tax cut, you take into account the drop in unemployment, … and you take into account that interest rates are fairly stable,” he said.

I believe the economy is on a strong growth path,” Johnson added. He said he didn’t think economic growth would hit 5 percent, which his friend and long-time CNBC contributor, Larry Kudlow, says could happen.  Kudlow recently joined the Oval Office’s economic advisory team.

PresidentTrumpCenterRobertJohonsonRTraciBluntTransitionNBCManufacturedHousingIndustryDailyBusinessNewsMHproNews

Working with POTUS Trump?

Johnson spoke about a job offer he received from Trump during the transition. He said he didn’t take the unnamed position because he didn’t want a government role, not because of any disagreement with the president or his policies.

No matter what the president would do,” Democrats and other political opponents would slam the president, Johnson said. He spoke about concerns over the “deep state.” But he stressed that “Something is going right,” for blacks and the nation as a whole.

 

Rhetoric and Charlottesville

Johnson told the president-elect during the transition, “Do not say, ‘what do you have to lose.’” Rather, he encouraged the president to talk about what they have to gain from a Trump Administration.

Those gains are now being felt.

Johnson said he’s met with the president since the transition. He spoke about his “access” to Steve Mnuchin, the Labor Department, and GOP leaders like Senator Tim Scott (R-SC).  Johnson said he’s working on issues related to “leakage” in “small dollar 401K accounts,” which if changed, would help blacks and others.

He also spoke about serving black banks, among numerous other issues raised.

 

Pressed by CNBC panelists on Charlottesville, the president’s rhetoric, and Donald Trump’s alleged racial bias from some quarters, Johnson said, “I don’t think he’s racist.”

 

RLJ Companies Insights

From third party sources, and from a listing on their website, the influence that Johnson has in the black community is apparent.  A few pull quotes from their website:

  • Johnson was named by USA Today as one of “The 25 Most Influential Business Leaders of the Past 25 Years.”
  • In 2014, three of Johnson’s holding companies were featured on the Black Enterprise 100s list: RML Automotive, LLC ranked 1st in a category of 60 in the auto dealership rankings; RLJ Equity Partners, LLC and RLJ Credit Management, LLC ranked 12th and 14th respectively on the private equity firms list.
  • Currently, Mr. Johnson serves on the following boards: RLJ Lodging Trust; RLJ Entertainment, Inc.; KB Home; Lowe’s Companies, Inc.; Retirement Clearinghouse; Elevate Credit, Inc.; The Business Council; and Smithsonian Institution’s National Museum of African American History and Culture. Mr. Johnson holds a Master’s degree in international affairs from the Woodrow Wilson School of Public and International Affairs at Princeton University and a Bachelor of Arts degree in social studies from the University of Illinois.

 

The Bottom Lines?

Johnson is a highly educated, successful, and a very well-connected professional.  He clearly sees value to the Trump agenda for African Americans, but also for the nation at large.

As Johnson noted, the facts about rising employment, opportunities, and income for blacks are all good signs.

He’s met with the president on a number of occasions.  Johnson seems to believe that the president isn’t the racist that some of his opponents would have people believe. He clearly stated that the agenda is a good one for blacks and for the country.

Black Americans lag behind other ethnic groups in housing ownership.  The comments by Johnso – combined with insights from HUD Secretary Carson about the amazing” quality found in today’s manufactured homes – all point to potential opportunities for more industry professionals to better serve the needs of the black community.

HUD Secretary Ben Carson and Senator Thom Tillis Discuss Affordable Housing and Manufactured Homes, Video

Carson noted several times last year that home ownership is important for wealth building, a point that manufactured home advocate the Rev. Donald Tye, Jr. has also stressed. ## (News, analysis, and commentary.)

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

Related Reports:

Trump Administration and the Manufactured Housing Industry

The Ultimate Manufactured Home Industry Fact$, Data, and Insights – Bullets plus at-a-Glance Infographic

Affordable Housing, and Today’s Manufactured Homes, Yesteryear’s Mobile Homes

“Move, Open, Live” De Rose Industries & Senator Thom Tillis’ Mobile Home Comments

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

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‘You Are Either Clayton Homes, or You’re Not’ – Monday Morning MH Sales Meeting

April 9th, 2018 Comments off

ClaytonHomesBerkshireHathawayLogosSWOTAnalysisMOndayMorningSalesMeetingDailyBusinessNewsMHProNews

You may know the axiom, “If you keep doing the same things, the same way, expect the same results.”

 

What does that mean for anyone selling in the manufactured home (MH) industry today?  Several things. The independents in the MH industry, sources say, lacks enough strategists.

For example, not many are getting an honest SWOT assessment. This article won’t focus on those points, but it will on this related one.

You are either Clayton Homes, or you are not.” Burn that phrase into your mind.

Make “You are either Clayton Homes, or you are not.” part of every MHVille planning session. That doesn’t mean you have to bring it up in every sales meeting. But what it does mean is that as an owner or manager, you have to navigate the elephant in the room.

And no one less notable than Warren Buffett has de facto declared war against those who are ‘not Clayton.’ That may sound negative, but isn’t it reality?  Listen or read what the man said…

There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.” Warren Buffett, per Goodreads.

If you don’t take seriously what the man has said and done – including in manufactured housing – then by definition, you are ignoring reality – and the valuable lessons necessary for a business to survive, and thrive.

Consider this quote from Warren Buffett’s recent annual letter, citing Kipling…

If you can keep your head when all about you are losing theirs . . .

If you can wait and not be tired by waiting . . .

If you can think ‘ and not make thoughts your aim . . .

If you can trust yourself when all men doubt you . . .

Yours is the Earth and everything that’s in it.’

 

Yours is the earth, and everything in it. Aren’t those the words of a true monopolist? But there’s more…

 

 

As an award-winning manufactured home retailer told MHProNews recently, ‘While most in manufactured housing are busy working on selling their next home, others are busy planning on how to put you out of business.’

Don’t ignore the elephant in the room.  Especially, if the elephant is hunting you.

To survive, to thrive, you must have a reality-based strategy. That’s just a basic premise of SWOT – Strengths, Weaknesses, Opportunities and Threats.

ClaytonHomesRetailCenterKnoxvilleNewsBuffettPraisesClaytonEarningsDailyBusinessNewsMHProNews

 

Not Clayton, Not Berkshire Hathaway?

What if you aren’t selling a manufactured home? What if you are selling some product or service entirely different, but are still very much related to the manufactured home industry?

For example, if you are an MH Community loan broker, should you be nervous about Vanderbilt Mortgage entering the community lending space? Or if you are a community broker, what should your position, interests, or concerns be?  Let’s allow Warren Buffett answer that with the following example.

Quoting from Buffett’s most recent annual letter to Berkshire Hathaway (BH) shareholders,

I have told you several times about HomeServices, our growing real estate brokerage operation.  Berkshire backed into this business in 2000…But, year-by-year, the company added brokers and, by the end of 2016… HomeServices was the second-largest brokerage operation in the country…Despite its recent acquisitions, HomeServices is on track to do only about 3% of the country’s home-brokerage business in 2018. That leaves 97% to go. Given sensible prices, we will keep adding brokers in this most fundamental of businesses.”

3 percent in hand, 97 percent to go. Take the man at his word.  Think trends, history and trajectory.  Think SWOT.

Kevin Clayton said in a video interview in 2011 that they had 25 percent of the manufactured housing industry production then. Last year, they finished at about 50 percent. That’s the trend line. That’s what an independent told the Daily Business News is “the obvious trajectory of the industry.”

ManufacturedHomesMarketShareMHIMembersClaytonCavcoChampionDaiyBusinessNewsMHProNews

Since this graphic was produced, new data has arisen. Clayton-Cavco-Champion (given the Skyline merger) will yield either 75 percent or 80 percent of the industry’s total production, per Cavco or other MHI member produced data.

A lender in manufactured housing that’s not a BH lender – but is an MHI member – said that there is no doubt that the association tilts towards Clayton, 21st and Berkshire Hathaway. That lender  is aware of reality, yet optimistic, but that is his nature. Sometimes people do not see their own tendencies, just as some don’t strategize based upon the tendencies of their competitors.

What do you do if you are not Clayton, and not Berkshire Hathaway owned?

First, pray. Seriously, pray every day.

Next, plan. They have their own strengths, and weaknesses, but you must be able to spot them and plan around them. They have their own opportunities and threats. That is the nature of SWOT.  Logically, your SWOT must operate with their SWOT in mind.

Buffett’s strength’s are many, but consider these that anyone can grasp.  Think long term.  Learn all you can about the reality of your industry, and its place in the broader market.  Keep learning. Buffett says he reads 5 to 6 hours a day.  Can you manage 30 minutes or more?

You need a SWOT. You should count on the fact that your opposition does.  At Berkshire and Clayton, they call their plan “the Moat.” You can call these concerns, allegations, fantasies…or a reality check.

WarrenBuffettTheMoatQuoteMemeManufacturedHousingIndustryDailyBusinessNEwsMHProNEws

Readers must recall that the moat isn’t just defensive. Watch the Kevin Clayton video, read Buffett’s words, and the statement emerges that they want to continually expand their moat. Reality, check it out for yourself.

You are either Clayton or Berkshire Hathaway, or you are not.  That’s reality.

Especially those who do business with Berkshire Brand, or is in MHI, need to think matters through.

Need a plan? Call, message or email me. ## (Marketing, sales, management, news, analysis, and commentary.)

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“Trailer House Trauma,” Fresh Look at Manufactured Housing’s Opportunities

April 7th, 2018 Comments off
RedmondNewMoonTrailerHouseMobileHomeLucyDesiLongLongTrailerMovieStillTailreHouseTraumaDailyBusinessNewsManufacturedHousingIndustryRedmondNewMoonTrailerHouseMobileHomeLucyDesiLongLongTrailerMovieStillTailreHouseTraumaDailyBusinessNewsManufacturedHousingIndustryMHProNewsMHProNews

A Redmond New Moon mobile home, which today would be part of Champion Homes. Still from the movie, “The Long, Long Trailer.” see clips of the video, below.

Misunderstood.

 

Perhaps no other industry which has a product that boasts 22 million daily users is as misunderstood as the Manufactured Housing Industry in 21st Century America.

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Darren Krolewski, MHV.

At the Tunica Manufactured Housing Show, Darren Krolewski exemplified the problem, when he told attendees that they can ask some adult about a “manufactured home,” and they often have “no clue what that means.”

Krolewski is not alone in that experience.

Part of that misunderstanding can be captured in the irony – the tragedies – illuminated in the routine misuse by media or others of the words, “trailer house,” and “trailer park.”

For millions, those words are synonymous with “trailer trash.” Not many want to be thought of as trailer trash, one of the last acceptable put-downs of the 21st Century. After interviewing many, often on video, it is clearly an emotional trauma for them.

When tens of millions of potential buyers don’t understand the manufactured home product, of course it’s acceptance as a mainstream form of housing is compromised.

There are opportunities that can arise from that understanding. But to tap them, one must take a fresh look, and begin by clearly grasping the cause before the cure can be understood, or applied.

MHVille’s “Trailer House Trauma” is not the only explanation why so relatively few manufactured homes are being sold today, but it is one of them.

 

Lucy and Desi – Flashback to When a Trailer House Was Classy and Cool

If you’ve ever watched the Lucy and Desi comedy movie, “The Long, Long Trailer” then you realize that when you flashback in time to the early 1950s when that film was produced, it was often upscale people who bought a mobile home or ‘trailer house.’

 

 

The reason it was called a ‘trailer’ is because it could be pulled behind many a car, or pickup, as is often demonstrated in the movie.

Note in the chart below how high the sales levels of mobile homes were in the 1950s through the early 1970s?

Image and understanding aren’t everything, but they are a key part of acceptance.

So, “The Long, Long Trailer movie certainly didn’t hurt the sales of mobile homes.

 

Fast Forward to the 1990s.

Now, hop in your De Lorean, and flash-forward from the 1950s to the 1990s.

The manufactured housing industry was hitting its most recent peak. Several problematic challenges were in motion, including poorly underwritten manufactured home chattel loans. 2 decades later, that’s another problem that still haunts the industry with Fannie Mae, Freddie Mac, and Wall Street.

But why?

There was a bigger bloodbath in conventional housing’s varied meltdowns, the most recent and memorable one being the bubble that burst in 2008. Conventional and other lending came back for mainstream homes, why not for manufactured homes?

Part of the reason the Duty to Serve (DTS) Manufactured Housing, rural, and undeserved markets was passed by Congress in 2008 was precisely the “poor paper” image that manufactured home chattel loans unfairly represented. Some independents in the industry realized that they needed Congress to act, to force federally chartered Government Sponsored Enterprise (GSE) lenders to support America’s most unsubsidized form of affordable home ownership.

After all, isn’t it discriminatory to robustly support mainstream housing, and not give equal opportunity for supporting manufactured homes?

But another issue for manufactured housing in the 1990s was the brewing “image issue.”

It was exacerbated when President Bill Clinton’s advisor James Carville, as a red herring on that administration’s simmering sex scandals, quipped “Drag a $100 bill through a trailer park, you never know what you will find.”

“Drag a hundred-dollar bill through a trailer park, you never know what you’ll find,” James Carville, Clinton Strategist

That comment by Carville went viral.

It’s haunted the industry ever since. In hindsight, one might ask, why didn’t the industry respond?

Carville’s calculated comment was a clearly bigoted, prejudicial statement that targeted the millions of Americans living in pre-HUD Code mobile homes and post-code manufactured homes (MH) — and by extension — the industry that serves them.  Not addressing the slander was arguably a mistake.

In the 1990s, the RV Industry – which began to separate from the MH industry during the mobile home (MH) era – launched and sustained since then their “Go RVing” image campaign. The manufactured housing (MH) tested marketing campaigns at times and regions, like ones done in California, or the Pacific Northwest. But those efforts were not sustained. Nor was there ever a coordinated, national MH campaign in the days when the industry’s producers were flush with cash.

So, the RV production chart reflects the fact that towable and motorized recreational vehicles (RVs) outsell manufactured homes today by more than 5 to 1. Yet RVs cost far more per square foot than even the higher priced manufactured homes. RVs are for most a luxury item, with many RVs not necessarily used for full-time living.  To rephrase, the Go RVing campaign has worked.

But that doesn’t imply that the same would work for manufactured housing.  That said, doing nothing is also not acceptable.

RVIARVBusinessManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

RVs are but one reminder than manufactured housing (MH) is nowhere near its potential.

 

 

Me Too?” Cures and Opportunities Begin with Understanding

CallKenCorbin10000ManufacturedHomeRetailerDealerDropDailyBuisnessNewsMHProNews

The above is a collage of some images from Ken Corbin’s presentation at the manufactured housing industry’s 5 State Event in Deadwood, SD. There’s been over 10,000 retailers lost since the 1990s, said Corbin. That’s “the 10,000 drop.” Graphic by Corbin used with permission.

Former Clayton manager and retailer, Ken Corbin told MH professionals in Tunica, “don’t be a me too” seller in the manufactured home industry. To be more successful than others, one must stand out from the crowd.

Ken’s correct on not being a “me too” point — if greater success is the goal — then Ken’s point is true.

But more than that, one must first understand the causes of what’s kept manufactured housing rising since 2009, but still at historically low levels. It’s common sense that the cure comes after a proper diagnosis and treatment. 

This article looks at measurable data points and troubling facts that almost no one in the industry today mentions, much less addresses.

The “Trailer House Trauma” is far from the only challenge, but it is a real one.  Those willing to stand out from the pack are those who are willing to do the research or hire the talent needed to gain a similar understanding that successful investors like Warren Buffett have routinely done.

Give the man his due, Buffett does his home work.  He says he reads 5 to 6 hours a day.

What’s Next?

This is part one of a periodic series on the true state of the manufactured housing industry after the first quarter of 2018.

Some related data points and reports are found linked after the Related Reports header, further below.

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Trailers could be pulled by a properly equipped car or pickup truck. Mobile homes became heavier, wider, and long enough to require special equipment and a trained driver. Manufactured housing is routinely far heavier still, wider, and moving them properly takes heavy equipment and a skilled driver.

As a closing note for today, while being “misunderstood” and the “Trailer House Trauma” is a problem, but it’s also an opportunity in disguise for potentially hundreds of industry companies of all sizes.

Manufacturers, retailers, communities, lenders, vendors and other service providers are all able to benefit from the proper localized, targeted marketing and customer engagement approaches.  Those methods must be based upon reality, as opposed to wishful thinking.  They must be sustainable, or else they will fail.

Hundreds of thousands of affordable homes are needed every year in the U.S. What other sector of the multi-trillion-dollar housing industry has so much upside potential?  Can you name any?

“Starting” Dip in Home Sales, New Crisis Says Housing Experts

 

RV and National Association of Realtors (NAR) data are clear indicators that with the proper capital, planning, team, motivation, and execution, manufactured housing industry professionals can turn their own image around on a localized basis.  RV dealers and real estate firms invest in their success.  Half a million RVs in 2017, plus over 5 million resale housing units for the NAR in 2017 are proof that it pays off.

 

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Sadly, very few understand the connection between understanding the challenges, which can then lead to profitable solutions.  But that too is an opportunity in disguise, for those who reject being another ‘me too,’ and embrace the notion that success requires thoughtful change.

Case studies our consulting operation has done with those who put in the effort and resources have seen solid, positive results. To learn more, note the second related report, linked below. ## (News, analysis, and commentary.)

(Third party images are provided under fair use guidelines)

Related Reports:

“Move, Open, Live” De Rose Industries & Senator Thom Tillis’ Mobile Home Comments

Understand, Plan, and Execute – Monday Morning Sales Meeting

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Consulting, Marketing, Video, Recruiting, and Training Resources

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By L.A. “Tony” Kovach to the Daily Business News 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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How Many Manufactured Housing Units Will FEMA Use? Disastrous Opportunities, Knock

October 11th, 2017 1 comment
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Newer model FEMA MHUs were deployed in Louisiana, during their flooding. Credit: Yahoo.

Post-Hurricane Harvey, the Texas Manufactured Housing Association (TMHA) has provided the Daily Business News with an update on the recovery steps in their state.

In trying to anticipate next steps, we expect vendors will be selected by the GLO [General Land Office} and soon to follow local Council of Governments (COGs) for temporary housing,” TMHA’s statement said.

TexasManufacturedHousingAssociationTMHADailyBusinessNewsMHProNewsNo one at this point knows how many MHUs [Manufactured Housing Units] will be used in temporary housing efforts,” the Austin-based trade association said. “Both state and local agencies are waiting for FEMA to vet the disaster registrants to determine eligibility, need, and type of temporary housing.”

FEMA has had over 900,000 registrants with some level of disaster claim. Expectations are that the total number of registrants will surpass one-million people,” TMHA stated, noting that in “prior disaster events, TMHA has been told approximate six percent of FEMA claims result in eligible persons in need of some form of temporary (18-month) housing, of which MHUs are one option.”

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It will be months before the details all become clear.

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Featured image credit, Hurricane Harvey Relief.

In the coming weeks and months, we anticipate contractors and vendors selected by federal, state and local governments to start deploying and building MHUs,” TMHA’s release stated. “We also anticipate more calls for adequate placement locations, such as on vacancies in MH Communities.”

A COG in the Machinery of Government…

For our industry to participate and demonstrate the role we can play providing some of the permanent replacement housing, you must get involved with the local COGs. We must appeal at the local COG levels to be included, and not excluded, when the permanent rebuilding efforts begin in 2018,” they said.

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TMHA is already working to advance this effort at the state level, but we have been told time and again the ultimate decision on housing and rebuilding will be controlled at the local level,” per the TMHA. “We ask our members to get involved early, participate vigorously, educate people about our homes, and advocate for yourself and our industry.”

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Manufactured Housing Units, designed for FEMA, called MHUs, where deployed in 2016 in Louisiana in response to their floods.  The score card for the effort wasn’t high, see story linked from the photo above. Photo credit, WAFB.

Enormous Opportunities Require Effort

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Reports from Texas have been that D.J. Pendleton and the TMHA team have been working long hours in the run up and wake of Hurricane Harvey on behalf of their industry members. Photo credit, MHProNews.

The permanent rebuilding efforts will be enormous and last for years,” per the TMHA’s research.

This effort is one that the manufactured housing industry must be a major contributor to. In the years to come we will have an opportunity to show not only what we can do,” the association said, “but also amaze would be detractors just how far we have come. It is on all the industry to make sure we are given opportunities to compete on a level playing field so recovering homeowners are presented our homes as a permanent housing option.” ## (News, Analysis.)

Related stories: 

MH Lending, FEMA and False Profits (and False Prophets)

MH Lending, FEMA and False Profits (and False Prophets)

FEMA, Clayton Growing “Threat” to Independent “Non-Corporate” Companies – from Omaha

1000s of Homes Needed, Independent Clayton Retailer Expresses Concern, Frustration with FEMA Connected Delays

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Zell Speaks on Economic Opportunities

February 24th, 2017 Comments off
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Sam Zell, ELS Chair, credit, MHProNews.

Sam Zell, a name familiar to the manufactured housing industry, spoke to TheStreet recently at a conference in Boca Raton, Florida, about the “staggering economic opportunity” for the U.S. under President Donald Trump.

Trump’s vow to cut government regulation could lead to one trillion of (economic) stimulus without spending anything, while Obama added $1 trillion to U.S. debt to prop up the U.S. economy,” said Zell.

The business magnate and chairman of Equity LifeStyle Properties (ELS) said that eliminating a number of rules that hurt businesses needing help, will cut down on unnecessary expenses and create confidence for entrepreneurs who would otherwise be fearful of the federal government stepping in to suffocate their investment.

If the U.S. just reverses what it stopped during the Obama administration, the stimulative effect will be extraordinary, said Zell.

While Zell tends to agree with Trump on immigration, he’s had strong words regarding  anti-immigration sentiment by some in the U.S.

The United States has been the leader in the world for 200 years because it’s had a very aggressive immigration policy,” said Zell.

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Credit: Seeking Alpha.

I think that this current period of anti-immigration is very dangerous to the future of our country.

But, he’s a staunch opponent of so called “sanctuary cities,” which he believes are a threat.

I’m a rule of law guy. If immigration and other laws aren’t enforced ultimately, you’ll destroy the society,” said Zell.

How does San Francisco justify writing its own version of the constitution?

With his extensive investments both inside and outside of the U.S., Zell remains a fan of free trade, but he supports the Trump Administration moves to renegotiate some of the trade deals.

Many of our free trade agreements are a combination of free trade and foreign policy pacts that don’t optimize economic benefits for the U.S. and instead are designed to improve diplomatic relations with trading partners,said Zell.

Before NAFTA we didn’t have a trade deficit with Mexico, afterwards we have a $60 billion deficit. Mexico, by the way, post-NAFTA has a $60 billion trade deficit with China. The U.S. thus helped Mexico’s trade picture while worsening its own. We are putting a price on the back of free trade.

New agreements must be good for the U.S. and, ultimately, that will be what is good for the free world,” said Zell.

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To see an exclusive interview with Sam Zell, click here or the image above.

As Daily Business News readers are aware, leaders in business, including Zell, clearly understand the significant business opportunity in manufactured housing.

Warren Buffet and Berkshire Hathaway, which owns Clayton Homes, and independents such as John Bostick with Sunshine Homes are “doubling down” on the industry, with Zell being quoted as saying during this interview “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

ELS and Berkshire Hathaway are also two of the manufactured home industry connected stocks tracked every business day by the Daily Business News, with the most recent reportlinked here. ##

 

(Image credits are as shown above.)

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Troubling Income-gap reports; do they spell growth potential for manufactured housing?

November 16th, 2014 Comments off

income-inequality-graphic-daily-business-news-mhpronews-com-350x258lightblue-The New York Times reports that the super rich are pulling away from the millionaires in America. Federal Reserve and other policies which prop up the stock markets, benefit the top fraction of 1%, which has lead to high demand for luxury goods. Meanwhile the HeraldTribune says the United Way in Florida issued a report that 30% of the population in their state make more than poverty level, but barely enough to pay for the necessities or life, including housing.

“In Manatee County, for example, the United Way report estimates that a family of four with an infant and preschool-age child needs $1,117 a month for child care, $995 a month for housing, $699 a month for transportation, $531 a month for food, $426 a month for health care, $215 a month for taxes and $398 a month for miscellaneous expenses. A family would have to earn $4,382 a month to cover all these costs, an income level that is more than double the official poverty cutoff.”

Recent reports by the Government Accounting Office (GAO) and a prior one from Fannie Mae reflect the fact that monthly payments on manufactured housing are about 1/3 lower than the $995 monthly the United Way budgeted for housing. When pre-owned manufactured homes are considered, the monthly costs in many markets may be even lower.

While President Obama and some Democrats campaigned on income inequality as an issue this year, the Pew Research center quoted Florida Senator Marco Rubio talking about creating “a new opportunity society in America” as a conservative approach to addressing persistent poverty.

Income inequality has grown for many years, under the previous and current administrations. But the irony of doing fundraisers with the wealthy, while doing stump speeches on income inequality which has grown in the last 6 years is not to be missed; nor should the chance to tap the growing need for quality affordable housing the manufactured homes represents. ##

Related Stories – GAO report.

CNBC report with Fannie Mae graphic/monthly costs for housing comparisons

Download Pew Research report.

(Image Credit: MHProNews)