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Posts Tagged ‘Great Value Homes’

Could Long-Term Home-Only Mortgage Loans in Land Lease Communities Rise Again?

December 7th, 2015 No comments

I read with great interest Paul Bradley’s recent article in MHProNews. I agree with Paul that there is an opportunity forthcoming to bring back a program that was created by Freddie Mac – one of the two (2) Government Sponsored Enterprises (GSE’s) – in the early 2000’s. That program had Freddie providing conventional, residential home-only mortgage loans at market rates in selected Land Lease Communities where the residents had a long-term lease.

I was one of a very small group of professionals involved in the manufactured housing industry who worked directly with Feddie Mac to create that program. I know firsthand how well the program worked for residents in three (3) land lease communities that we owned when the program was active.

This was not a simple program to get out of the starting gate. It took well over two (2) years to draft the program, garner internal agency approvals, work through the idiosyncrasies, deal with legal and appraisal issues and partner with a lender to finally bring the program to the market. All of the work involved was not easy to accomplish, yet in the end the program became a reality. And, in my opinion, the program was a success.

People will question why the Freddie program was a success, even though it was not available for more than a few short years. There are many reasons why the program ultimately was cut short by Freddie Mac, but now is not the time to rehash those issues.

What is important is to look at the successes of the program. The template and performance are set for the GSE’s to use, so that time is saved. The success is proven by the number of performing, conventional long-term mortgage loans originated in land lease communities at then current market rates.

As stated above, our firm utilized this lending program in three communities. The home buyers were thrilled to have this loan option available. In fact, after we began to offer the program, rates dropped significantly. Almost every borrower refinanced their loan at a lower interest rate without any issues or penalties!

With complex programs come many questions and concerns. Let me focus on two important issues.

First, under the Freddie Mac program, the mortgages on the homes did not impact the underlining financing of the land lease community. This was a critical issue resolved early-on while we were drafting the program. Documentation was required and provided from the underlining land lease mortgage lender to Freddie Mac, assuring that the community lender would respect the long-term leases of the residents.

Secondly, there is no relationship between the Freddie Mac Program and the proposal by the Uniform Law Commission to title the manufactured homes as “real property.”  Although there were various phrases and terminology utilized in the Freddie Mac program, there is zero connection to the ULC proposal, which is important, as the ULC plan gives current MH personal property lenders heartburn for a variety of reasons.

According to MHI and others, the Federal Housing Finance Authority (FHFA) will soon issue a draft Duty to Serve rule. It could be a great opportunity for manufactured home lending if one of the recommendations suggests a lending program similar to the Freddie Mac pilot. Having another viable lending option would be a positive step in the market place.

I stand ready to work with the parties involved on this or any other lending option once the FHFA rules are known. Feel free to contact me, indicating your interest or support. ##

rick-rand-great-value-homes-manufactured-home-pro-news-industry-voices-guestblogRichard J. “Rick” Rand
President
Great Value Homes, Inc.

9458 N. Fairway Drive
Milwaukee, WI 53217-1321

414-352-3855

414-352-3631 (fax)

414-870-9000 (cell)

RickRand@gvhinc.net

What is it that we Manufactured Housing Professionals want?

September 3rd, 2014 No comments

The industry's politics are what they are. When you get past the politics, what we find is a broad consensus. I do not think that should come as a surprise to anyone! What is it that we manufactured housing professionals want? We want to make a good living, to provide a product/service that is appreciated by our customers and to be respected in the community.

If you took the words 'manufactured housing' out of our discussions, think about the fact that we sell homes for less than conventional builders can. Doesn't that suggest we ought to be able to outsell them? If they are going to do 1 million new single and multi-family starts this year, and we can offer home and site for lower cost monthly, shouldn't we be able to outsell them?

I'm looking at the manufactured housing professional's calendar for 2014. Two industry events were well promoted. Both of those grew in attendance. Two industry events that are coming up have had limited promotion. Word has it those two will be declining a bit or maybe roughly the same. Isn't that a reflection of MH in a microcosm?

Steve Lefler and Modular Lifestyles is doing something different, they are promoting it. And guess what; they are getting results with an upscale product in land lease communities that may have lots of older units in them.

Scott Roberts has invested in improving a once failed location in TX, Brian Fannon is doing the same in MI. Scott's community improvement plan has been around long enough for both he and his customers to see the good results.

Bob Vasholtz puts a finger on one issue in his Dueling Factions. Some individuals are more interested in getting credit than they are in advancing the actual solutions. It is in the solutions where we should all be sharing in the glory and the profits.

We obviously have to invest in our own businesses and locations. Beyond that, as an industry we are very small in size compared to the rest of the housing industry. I believe it would be wise for us to spend more time thinking about ways that we can team up with others via our state associations and move the ball ahead in our individual markets.

My apologies to those who have called or emailed about my previously advanced idea for a collaborative 'solutions' and 'business development' style meeting. It was well received, Tony Kovach tells me it was widely read and some large players raised their hands privately to say we should do this. Perhaps we can organize that event to take place the day before the Louisville Show. That would provide for a one low cost trip to an already well attended meeting. A trans-corporate, trans-associational meeting designed to drive more business and get to the heart of the issues that are holding us back.

In years gone by, I was a leader in some large organizations; these days I'm a modest sized independent that continues to grow. My point is that I can relate to those who are big, small or in between. Let's forget the finger pointing, let's move past the chains that hold us back. In a trillion dollar per year housing market, we can and should do better than we are today.

We are either part of the problem or part of the solution. ##

By Rick Rand, president of Great Value Homes, has been and still is actively involved in small and large scale MHC operations. You can contact him at:

rick-rand-great-value-homes-manufactured-home-pro-news-industry-voices-guest-blog-Richard J. Rand, President,
Great Value Homes, Inc..
9458 N. Fairway Drive,
Milwaukee, WI 53217-1321,

414-352-3855
414-352-3631(fax)
414-870-9000(cell),
RickRand@gvhinc.net

(Editor's Note: While Rick Rand is on the WHA board and serves as MHI PAC Chairman, he is sharing his own opinions, which may or may not reflect that of any given association. Other perspectives are welcome, send letters to the editor or OpEds to: latonyk@gmail.com or tony@mhmsm.com.) 

What More Can We Accomplish After This Year’s Manufactured Housing Institute (MHI) Congress and Expo?

May 13th, 2014 No comments

Like many others, I attended the 2014 National Congress & Expo two weeks ago in Las Vegas. I also chose to attend the National Communities Council Spring Forum held all day Tuesday prior to the opening reception. There were some exceptional programs! The attendance was very high according to reports from MHI. While there was an eye brow-raiser (or two…) on the agenda, off-agenda items that were pretty interesting and overall the Spring NCC Forum and MHI's Congress and Expo featured seminars with speakers focused on current industry topics and issues. Numerous vendors on hand shared their services, displayed their products and provided opportunities for deal making.

What should not come as a surprise was the number of new individuals who attended the Congress.

Many professionals from all facets of the housing, finance and investment sectors were on hand to listen and learn about the manufactured housing industry. This is another great indication on the positive future for the industry.

Today, there is something in the neighborhood of Two (2) Billion Dollars chasing the manufactured housing industry! That's Billion with a capital B!

Those dollars may or may not be invested in our sector; only time will tell. What we need to realize is that there is capital willing to invest and grow in manufactured housing. With new capital much can change, improve and set the stage for a brighter future of the industry.

Yet, even with the large amount of new capital looking to invest in the industry, manufactured housing will still be a very small piece of the roughly One (1) Trillion Dollar annual U.S. housing market.

The questions I continue to ponder are;

  • what can we do to grow the manufactured housing industry’s share of the overall housing industry?

  • How do we get to the root of the obstacles that continue to impede the MH Industry’s growth?

Flying home after Congress and Expo, those nagging questions bugged me. Below is a thought that came to mind that may provide a profitable starting point.

Why not host an – August 2014? – organizational networking/deal making opportunity event that is Trans-Associational?

Why not consider a location near a fine newer MHC property that breaks the stereotypes – such as Saddlebrook Farms in Grayslake, IL – where the potential for new development could better be understood by those who only know the 1 or 2 star MH properties? Would love to hear suggestions on other possible sites that fill the bill.

That property would also feature great looking, residential style product that is ground set, so this would shatter the 'mobile home' image for potential investors who only know the entry level product.

As you can see, I am not suggesting replacing any current event, such as the upcoming MHI annual meeting, NCC Fall Leadership Forum or other association or industry functions.

Rather I am suggesting something totally fresh and different.

Let’s bring the stakeholders and potential investors to the table at the same time with professional facilitation and the opportunity to participate.

The focus of the meeting would be how to get those multi-billions moving ahead, as well as advance the MH Industry as a larger and viable part of the overall housing market.

What makes this concept different than other current programs is that interested parties are invited regardless of current relationship issues or biases. Bringing goal and solution oriented individuals from differing backgrounds, all committed to growing the manufactured housing industry could be groundbreaking.

Please do not misunderstand; while I'd like to be involved, I am not volunteering to take the lead in this event due to my current business obligations. I am putting the idea out in this public forum for discussion.

The way this gets done is for

  • commercial real estate brokers and appraisers,
  • commercial RE lenders and brokers,
  • MH finance companies (personal property and Mortgage lenders),
  • Any – or all – HUD Code manufactured housing and modular builders,
  • developers
  • Suppliers and other service vendors

to pay for the costs of the meeting, mixers and main meals.

Pick a place that is nice clean convention location, and keep the entry fee really low.

Let's put an asterisks next to this one. What if we make it easy for the hundreds (or thousands?) of owners of MHCs who are looking to exit due to age, health or other reasons to come at a pre-event day to discuss their properties face to face with those who may want to buy them?

Might this be a good way to facilitate the capture of more of that circling capital which would also facilitate the improvement of languishing communities and the sales of more homes in them?

There also ought to be an ability for the event organizers to bar this or that person or group at will, so that the Ishbel Dickens/NMHOA or Industry naysayers don't get in. That keeps this focused on business and solutions.

Just think about the number of organizations who would want to take part in an event of this nature. Here are a few who I believe would join the effort.

rick-rand-industry-voices-mhpronews-com

There probably are others who should be included on this list. These are the organizations that came to my mind while thinking about who the stakeholders are in the future of the MH Industry.

One more critical point. Let's tackle the creation of a vibrant, efficient resale market for manufactured homes. This is absolutely critical for the future of our industry, the benefit of our residents and lenders as well as our homes' broader acceptance.

By being trans-associational, this could also prove to be fertile ground for meeting with and recruiting new members.

As to a target date, based on the interest being shown about the industry, sometime in the near term would be better than delaying. By doing it in the summer, a successful meeting could position the 2015 trade shows for dovetailing with this concept.

The location must be close to a major airport so that there is easy access to the event. As noted, having some newer and older MH communities nearby would be beneficial so that participants can take a charter actually view the new homes and better understand the true breadth of the MH product and variety of community lifestyles.

I believe that an event like this will assist in not only promoting the Manufactured Housing Industry but also could be a catalyst for additional new capital investment and future financing opportunities.

We must not lose sight of a key goal of the meeting; how to advance the MH Industry as a larger and viable part of the overall housing market.

Please feel free to comment below or email me with your thoughts. The future of the MH Industry is ours to create. ##

rRck RandRick Rand is the president of Great Value Homes, and has been involved in small and large scale MHC operations. You can contact him at:
Richard J. Rand, President, Great Value Homes, Inc.. 9458 N. Fairway Drive, Milwaukee, WI 53217-1321,

414-352-3855
414-352-3631(fax)
414-870-9000(cell),
RickRand@gvhinc.net

Why the Continued Conflict?

March 8th, 2014 No comments

One has to ask themselves why this conflict continues? You ask what is the conflict and why do we as an industry need to concern ourselves with this issue? The answers are simple; the conflict is the continued divide between MHARR and MHI. The reason we must concern ourselves is obvious; industry unity will bring us further and faster than continued disunity.

I am not alone in asking this question about the root causes of the conflict.

Recently individuals from both inside the industry and the regulatory sector have written about the approach and tone of the messages sent by the Manufactured Housing Association for Regulatory Reform's (MHARR) President and CEO, Danny Ghorbani.

There is no reason for messages of the nature like the one linked here to continue.

Just this week the industry received some well needed good news that Pamela Beck Danner, JD, was appointed as the new Career Administrator for the HUD Manufactured Housing Program.

Rather than just leaving the message as a congratulatory letter, Danny stated that MHARR will challenge HUD’s change to the law regarding the position to being a career vs. non-career administrator.

Even if HUD has inappropriately changed the law, why send this widely distributed mixed message? Why not just congratulate Pamela and then quietly send HUD an objection that would not be widely distributed?

Continuing this pattern of creating conflict is not beneficial to anyone involved in Manufactured Housing regardless of which area of the industry one is involved in. Are these the types of messages that we want as we work to accomplish our industry goals? I think not.

Just think how much more our industry could accomplish by working together! It is critical that as an industry we focus on the target and develop a cooperative effort to move our goals forward.

Both organizations do not always have to agree; in fact we may agree to disagree. Even in that case, we must show our public unity and spend our collective time working on the core issues.

By not working together some think we weaken our message. By contrast, when we work together we can send a more powerful message to Congress, the Regulators and all others involved that we stand together to accomplish our collective goals.

Clearly MHI is moving the ball forward in this regard, on both the regulatory and legislative fronts. One might ask, if MHI can do it alone, without Danny Ghorbani/MHARR, will MHARR and Danny become politically irrelevant?

I have been in the Manufactured Home Community and Home Sales businesses for over 32 years. During this time I have worked with manufacturers that were members of both MHI and MHARR. In fact, some of the manufactures whom I purchased homes from were only MHARR members. Naturally, I have spent a great deal of time with the principals of these companies along with Danny discussing many issues.

We have developed close personal relationships from working together. From our times together I have learned much about many issues, some which I was not aware of previously, others that could affect my business. There have been issues on which we have not agreed upon, yet we never treated each other rudely or without mutual respect.

That is the type of relationship which both organizations must strive to maintain, especially in today’s difficult times.

Those of us in the business are all very conscientious of whom we choose to work with or purchase products from today. Our decisions are influenced by many factors; company history, price, service, product mix, warranty and personal relationships. I am about to purchase new homes to place in my communities. One consideration that I would be remiss to not consider in my decision making process is which manufacturers support the industry's goals that I support.

In addition, I have very strong reservations on working with a supplier who supports continued conflict and inappropriate messages being distributed by MHARR's CEO. Why would one work with a supplier who is not aligned with our industry's or my personal goals?

This is no different than one deciding to no longer buy homes from a manufacturer who lacks in timely, quality post-sale service and warranty support.

To financially support a manufacturer who through his association dues allows this discord and strife to continue in this small industry is questionable at best. We need to vote with our wallets! Maybe that will get the attention of those who fund the emailed or print messages that slow or harms our industry's message in Washington, DC.?

Maybe that would stop this avoidable and counterproductive multi-decade conflict. ##

rick-rand-great-value-homes-manufactured-home-pro-news-industry-voices-guest-blogRick Rand
Great Value Homes
Milwaukee, WI.

(Editor's Note, Rick stresses he is writing as an industry business professional, and not on behalf of any association. Rick was recently interviewed, see A Cup of Coffee with…Rick Rand., and is also in a video interview shown on the paged link here.)

Community Owners! MHC Lessons Learned

January 8th, 2014 No comments

Join your peers in the MHC world for an exciting hour to learn real life proven methods of how to improve your land lease communities Bottom Line Performance! Get tips from seasoned professionals who have profited in large, medium and small Manufactured Home Community (MHC) operations.

This is a program you will not want to miss.

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The panel discussion will be moderated by Ross Kinzler, Executive Director of the Wisconsin Housing Alliance. Ross has over 25 years of experience in the Manufactured Housing Industry. He has been active at both the national and state levels. He is a founding member and past Chairman of the Manufactured Housing Educational Institute. Ross currently serves on the Executive Committee and Board of the RV/MH Hall of Fame. In addition, Ross has taken on many leadership roles industry wide and has served on numerous boards and committees dealing with issues facing MH communities.

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Among those in our three person panel is Tammy Fonk, an Associate with the CBRE MH/RV National Group. Tammy was born and raised in the MH industry with two family owned communities. She operated the family owned company's sales and marketing business as well as having an active role in day to day community operations and resident relations. As a member of the MHRV Team, Tammy now works closely with public and private investors on building business relations and opportunities to enhance the Manufactured Housing Industry as well as the RV Resort and Marina properties in North America. Tammy works with owners and buyers of small, medium and larger communities in addition to representing large portfolio owners.

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The panel also includes Don Westphal President of Don C. Westphal & Associates. Don has over 40 years of experience of working in; community conceptual planning, master site design and landscape architectural design for land lease communities. Don has represented developers and owners of communities from concept plan approval all the way through final construction. He also works with owners on Community Imaging and on Marketing Plans for communities. The communities have ranged in size from a small number of home sites to those with over 500 sites. Don was featured in this interview, A Cup of Coffee with…Don Westphal.

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The third panel member is Richard (Rick) Rand, President of Great Value Homes, Inc. Rick has over 33 years of experience in the manufactured housing industry. GVH is an acquisition, development and property management firm specializing in multiple aspects of the Manufactured Housing Industry. The Company currently operates 6 Manufactured Housing Communities and is also a distributor of Manufactured Homes sold in the communities.

In addition, GVH acts as a broker for the resale of existing manufactured homes for residents who reside in the land lease communities the Company manages. Richard also acts as a consultant to institutional investment and private firms on various aspects of the Manufactured Home Industry.

Rick was founder and President of Asset Development Group, Inc. and its affiliate, Home Source One, LLC. From 1984 time until his departure in 2004, he grew the company to the 25th largest owner of manufactured housing communities in the country. During his tenure at Asset Development Group, Inc. Rick managed all aspects of the enterprise. He was responsible for all of the Company's property acquisitions and requisite financing. From the Company's inception, he oversaw the staffing and training of the ADG/HSO employees and management team. In addition, Rick was responsible for the planning and development of over 2,500 new manufactured homes sites that were both additions to existing communities and new green field development.

Rick is featured in this exclusive interview, A Cup of Coffee with…Rick Rand.

The Louisville Seminars are one of the most popular draws for attendees to the show.

business-building-seminars-credit-manufactured-housing-pro-news-posted-louisivlle-show-com-.jpg

Come Join us at the 2014 Louisville Manufactured Housing Show! The Show was the best attended event in all of Manufactured Housing in 2013. Most industry members can attend free, learn more at the link above, and learn more about the other valuable seminars available for industry members at this link. ##

rick-rand-great-value-homes-manufactured-home-pro-news-industry-voices-guest-blog-.pngRichard J. Rand
President
Great Value Homes, Inc.
9458 N. Fairway Drive
Milwaukee, WI 53217-1321
414-352-3855
414-352-3631 (fax)
414-870-9000 (cell)
RickRand@gvhinc.net

Whew! What a Whirlwind 44 Hours

October 20th, 2013 No comments

That is the NCC Fall Leadership Forum: “Building a Vision For The Future” held this past week in Chicago. First and foremost, kudos to my very good friend Jenny Hodge. Jenny is Vice President of MHI’s National Communities Council (NCC) and responsible for organizing and bringing forth this exceptional event. David Lentz is to be commended for his leadership and vision for the NCC.

While on the train from Milwaukee to Chicago I reviewed the agenda just to be certain I was up for the show which began in earnest Thursday morning. There was no doubt in mind that we were in for a very intense Thursday and Friday morning!

Wednesday evening’s reception was a very nicely arranged meet and greet with appetizers and an open bar. It has certainly been some time since we've seen MHI in a position to host such an event.

The real work began Thursday morning. The fact is that there was something to learn for everyone involved in the Manufactured Housing Community industry (MHC) whether you attended one session or attended all of the sessions.

The attendees were made up of a mix from the community business. When there was a show of hands early Thursday morning it appeared that there was a fairly even split of community owners present. One third were smaller owner with less than five communities, one third with less than 10 communities and one third owners or more than 15 communities.

rick-rand-great-value-homes-l-sam-zell-equity-lifestyle-properties-els-chairman-jim-clayton-clayton-bank-chairman-industry-voices-manufactured-home-pro-news-.jpg

Rick Rand, Great Value Homes (l) Sam Zell, Equity Lifestyle Properties (ELS) Chairman (c),
Jim Clayton, founder Clayton Homes and Chairman of Clayton Bank (r)

In addition, in attendance were lenders specializing in community financing, manufactures who are interested in serving the community owners needs to provide homes for vacant sites, Real Estate Brokers who market and sell communities along home lenders and other firms providing resources to community owners.

As is not uncommon at events like this, networking opportunities were abundant. I am more than certain that new relationships were forged, deals discussed and ideas exchanged. That is part of what makes these interactive events such great opportunities for all segments of the industry.

For those who focused on the Build A Vision For the Future agenda, they were rewarded with session after session of individuals both from within the industry and from other industries sharing their knowledge and experience. Topics relating to marketing, selling, community relations and all the important component of customer service which forward thinkers in the MH Industry are working to accomplish. Not only did the presenters share their knowledge and experience, they also made time for provocative interaction and dialog amongst all of us in attendance. ##

(Editor's Note: Read more of Rick's commentary – plus photos – on the NCC Fall Leadership forum at this link here.

You can see NCC dinner cruise and event photos at this link here.)

 

rick-rand-great-value-homes-manufactured-home-pro-news-industry-voices-guest-blog-.pngRichard J. Rand
President
Great Value Homes, Inc.
9458 N. Fairway Drive
Milwaukee, WI 53217-1321
414-352-3855
414-870-9000 (cell)
RickRand@gvhinc.net