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Posts Tagged ‘housing industry’

CFPB Report on Manufactured Housing Signals Areas of Future Concern

October 6th, 2014 No comments

On Tuesday, the Consumer Financial Protection Bureau (“CFPB”) released a white paper summarizing their research on the manufactured housing industry. The Bureau relied upon information compiled by various surveys, data available pursuant to the Home Mortgage Disclosure Act (“HMDA”), and voluntary submissions of information by institutions in the manufactured housing industry. Although the CFPB acknowledges that they are still seeking additional information on the industry, the report, among other things, provides a detailed description of the manufactured housing market, the demographics of consumers who reside in manufactured homes, and the impact of the current regulatory climate on the industry.

The CFPB also developed seven “key findings” from this research, many of which likely will come as no surprise to those actively involved in the manufactured housing industry. For example, the Bureau explains that manufactured homes are more likely to be located in non-metropolitan areas than site-built homes, and that manufactured homes typically cost less than site-built homes. These types of findings lead the Bureau to conclude that the industry is “an important source of affordable housing, in particular for rural and low-income consumers.” On the other hand, however, they believe that “these same groups include consumers that may be considered more financially vulnerable and, thus, may particularly stand to benefit from strong consumer protections.”

With respect to the specific protections that may be necessary, the CFPB declines to make any conclusions and, in fact, leaves certain questions open for further research. For example, the white paper describes how consumers in the manufactured housing industry can either utilize real-property financing or chattel financing, and explains some of the short-term and long-term trade-offs that exist between the two options. However, it appears that the Bureau is concerned with, and wants more information on, “[t]he extent to which consumers are aware of these trade-offs and how consumers weigh them.” This information indicates that the CFPB will pay particular attention to whether or not borrowers are adequately informed about the trade-offs associated with pursuing chattel financing instead of real-property financing.

The report does acknowledge that some of the title XIV Dodd-Frank Act amendments, including those made to the Home Ownership and Equity Protection Act (“HOEPA”) and the Truth in Lending Act (“TILA”), expand protections for consumers in the manufactured housing market. They also briefly describe the actual and theoretical impacts of these laws and the underlying regulations. For example, they admit the possibility that additional disclosure requirements and other burdens could increase the cost of extending credit to consumers seeking financing for a manufactured home. Prior to the rules being finalized, the CFPB received comments expressing concern that the proposed HOEPA high-cost thresholds would disproportionately impact small-balance loans that are often used to purchase manufactured housing. Many in the industry believe that these standards, which have been in effect since January 2014, are in fact reducing the availability of credit in the manufactured housing market because these loans are now classified as high-cost.

Similarly, the new Loan Originator Compensation (“LO Comp”) rules in TILA may also be increasing the consumer’s cost of obtaining credit for a manufactured home. Unlike realtors, manufactured housing retailers are not exempt from the LO Comp rules. In order to avoid being considered a loan originator, and to avoid having to go through an expensive licensing process, manufactured housing retailers are often not referring potential borrowers to specific creditors that they know are willing to extend financing for a manufactured home. This has resulted in consumers being left unaware of which creditors are willing to extend credit and the requirements each creditor has for approving a loan. Consumers, therefore, are submitting more applications and, because of the lack of important information, are more frequently being needlessly denied.

Despite acknowledging that the manufactured housing industry still has concerns about the impact of the CFPB’s new rules, the Bureau declines to accept that the rules have adversely impacted the market. Instead, they “will continue to monitor the effect of [their] rules on the manufactured housing industry and on consumers who purchase or seek to purchase manufactured homes.” In the meantime, the Preserving Access to Manufactured Housing Act, which would address at least some of these concerns, remains in Congress.

If nothing else, this white paper should serve as a warning that the CFPB has taken an interest in the manufactured housing industry. The Bureau is continuing to monitor the impacts of the new mortgage rules on the manufactured housing market, which could signal that the Bureau may be open to making adjustments to the rules that would reduce burdens on creditors and lower the cost of credit for consumers. However, they have also tipped their hand to at least one area of ongoing concern. Creditors originating chattel mortgages should pay particular attention to the amount, and types, of information that is being provided to borrowers and should ensure that they are fully informed of their financing options and the costs and benefits associated with each.

##

Republished with permission. This article first appeared in Financial Services Litigation & Regulatory Compliance Alert, a publication of Bradley Arant Boult Cummings LLP.

About the Authors:

Jonathan_R_Kolodziej-jd-bradley-arant-boult-cummings-llp-posted-industry-in-focus-mhpronews-com-75x75-Jonathan R. Kolodziej, JD, is an associate in the Birmingham office where he is a member of the firm’s Financial Services Litigation and Compliance Team. His regulatory compliance practice involves assisting some of the nation’s largest financial institutions and mortgage companies as they implement, and demonstrate compliance with, various obligations imposed on them by the Consumer Financial Protection Bureau (CFPB) and state banking regulators.

bill-matchneer-jd-formerly-hud-cfpb-now=bradley-arant-boult-cummings-llp-posted-industry-in-focus-mhpronews-com-75x75-

William “Bill” W. Matchneer, JD, recently joined the Washington DC office as senior counsel. He retired from the CFPB in February, where he had been one of the team leads for the regulations implementing the Dodd-Frank mortgage requirements. He previously spent ten years at HUD as manager of the Office of Regulatory Affairs and Manufactured Housing and Senior Counsel for Regulatory Enforcement.

 

Related Links:

1) – MHI's Response to CFPB's Report  (Editor's Note, the MHI link includes the full CFPB report as a free download)

2) – MHARR's Response to RV legislation and CFPB's Report on Manufactured Housing

3) – CFED's Doug Ryan sounds off on Consumer Financial Protection Bureau (CFPB) Report on Manufactured Housing and MH Financing

4) – Manufactured Housing Institute Responds to Doug Ryan-CFED commentary on CFPB report on Manufactured Housing Finance

(Editor's Note:  The views expressed by Messrs. Kolodziej and Matchneer are their own and/or those of the organization they work for, and should not be construed to be the views of MHProNews or our sponsors. Other viewpoints on this or other industry topics are encouraged.

MHProNews plans an Industry in Focus Report using extensive comments from a range of industry professionals on this topic. Watch for it mid-week at the news/reports module link above.)

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.) 

“A Home Is a Home” Conversation Starter

August 5th, 2014 No comments

From time to time, it is healthy to have a conversation about the best way we can move forward in a changing world, and in doing so, think through some potential long term goals and aspirations. If we do not at least have those conversations and think these sorts of ideas through, then we are guaranteed that nothing changes.

What follows are simply conversation starters based on my personal observations, no more and no less. They represent no more than my own thoughts.

To quote the American political philosopher, Robert Nozick, “My thoughts do not aim for your assent – just place them alongside your own reflections for a while.” In that spirit, I would offer the following ideas for our industry in Virginia:

Elimination of titles for manufactured homes — While we have been quite successful in cleaning up titling in Virginia, we should have a conversation about the continued long-term need for titles for manufactured homes. We sell homes, not cars, and as such, we should think about how to find a way to convey ownership and perfect personal property security interests in a way that reflects that fact, and in doing so, simplify the process for manufactured homes that are sold as real property. To be sure, doing this would require a viable alternative method of securing personal property interests in manufactured homes. Without such an alternative, elimination of vehicle titles for manufactured homes cannot happen.

Elimination of zoning discrimination against manufactured housing — We need to think about ways to eliminate zoning discrimination against manufactured housing in Virginia. A home is a home.

Being clear about what makes us who we are — We need to be clear that we are simply a mode of construction, just like our site-built friends and our colleagues in the apartment industry. Things beyond that distinction do not define us, and we should not let them. We are not a niche or boutique industry. We are no different than our site-built friends. We are not better, nor are we worse. We build homes, many times in a more efficient manner than many of our competitors. We sell those homes. We lease those homes and the land they are on. That is no more and no less than anyone else in the housing industry.

Embracing our diversity — We should embrace the diversity that characterizes various forms of factory built housing, and in doing so, make sure that we do not allow regulators and others to play us all off against one another. We all should support equity in zoning (a home is a home); all of our homes are well-built. We should, however, also be open about the various styles of construction and what distinguishes them.

Positioning ourselves for a changing development patterns — We should have a conversation about how we position ourselves in a nation that is becoming more urban and suburban and less rural with each passing day. For example, one trend in redevelopment is the use of mixed -use, mixed-income planned unit developments. Our homes (both manufactured and modular) offer the perfect solution for a number of the residential components of these types of neighborhoods at a cost per-square-foot and at a level of quality that allows us to compete favorably with our site-built competitors. But we need to make sure we have the right regulatory and marketing framework in place.

Again, these are just conversation starters. Nothing more. Nothing less. As always, I welcome your thoughts. ##

tyler-craddock-executive-director-virginia-manufactured-and-modular-housing-associationBy Tyler Craddock, Executive Director, VAMMA.

(Editor's note: while this first appeared in VAMMA's publication, the suggestion was made that this has value well beyond their borders. Conversations are needed in the industry, this has some important topics to consider! Published here with Tyler's expressed permission.)  

The Value of IMAGE, The Image of VALUE

July 9th, 2014 No comments

There is much talk of the need to “do something” about our industry’s image. Wow, that’s some understatement!

But what? And how? And who will pay for the refurbishment?

It’s a deep problem. It’s hard to refurbish an image that was never really “furbished” in the first place! The MH industry has a lot of growing up to do, and it’s quite a challenge.

Tony Kovach recently published the following graph.

manufactured-housing-mobile-home-shipments-graph-chart-calculatedrisk-posted-masthead-blog-mhpronews-com-

Our eyes jump to the trend of the past decade, which emphasizes the need to “do something.” I invite you to study the other end of that graph. The sixties.

In that decade, as today, the rule of thumb for a stick builder was to dedicate about half of construction cost to materials. That didn’t work for those building homes in factories. They had to build a product sturdy enough to ship a thousand miles on its own wheels, and if material content dropped below 60 percent—lock the factory doors. No reputable dealer would buy. In those days, despite buying all that material factory-direct and very efficient labor, the MH cost was far higher per square foot than a house (excluding land).

By the end of that decade, the rule of thumb—the MH optimum for sales maximization—was 70 percent material, 10 percent labor, 10 percent overhead and 10 percent pretax profit. In good years, that worked and profits rolled in. In bad years, you got hammered.

Sounds like a loser business?

Not if you knew your stuff. If you managed 30-plus inventory turns, collected cash on delivery of the homes, operated in a pole-barn factory and had nominal investment, you could operate on your supplier’s 30-days-same-as cash payment plan. Banks released floor-plan cash upon delivery of the home. 100 percent return on equity was not out of the question. But everything had to work.

Look again at Tony’s graph. Everything did work during that decade for those who managed well. A year of no sales increase was considered a recession.

Manufacturers had to master that formula or get out of the race. Competition was brutal, but everyone understood that no one could do it alone. Manufacturers, suppliers, dealers, developers and banks. All were highly profitable when they got their sums and strategies right.

The quality of manufactured homes soared and the cost of producing them plunged. Such was the magnitude of opportunity in the sleepy housing industry.

It was Skyline, Fleetwood and the like who got the publicity—biggest MH manufacturers, most profitable companies in the stock market and all that. Surely they should have stepped up to the plate and “done something” about the industry’s image?

Well, they did what they could, but their hands were tied. Every nickel of such a manufacturer’s profit would have funded just one percent of industry sales for an image-building program. And what, one might ask, could a manufacturer have done for its image more useful than investing in product improvement? That’s what the critics and customers requested, and rightly so.

The largest manufacturers each held less than 10 percent market share and had plenty of competition snapping at their britches. Which of those “leaders” should have stepped up to the plate and invested significant funds in the industry’s image? Sure the profits were good, but they didn’t stay that way.

Look again at Tony’s graph, and what happened when things stopped going well for the industry in the early seventies. That’s why there was so much resistance to the HUD standard, and still is. That’s why it has always been hard to get those “big manufacturers” to spend “just a little bit more” on the want-of-the-week. If the competition doesn’t do the same, you’re toast. Real competition is not for the faint of heart, but it works wonders for customers.

Competitive product improvement, step by step. Learning curve. That’s how the MH industry cut the cost of building homes in half. Focused, efficient, production in a housing market where nobody was in charge, regulation was rampant and good times were rolling. Don’t hold your breath waiting for a repeat of that kind of housing opportunity.

My enthusiasm for today’s outlook is based on the fact that the leaders have survived and now have commanding market share, while retaining—improving—their production cost advantage over the stick guys. I don’t know what the Big Three’s margins are, but they’re profitable. We’re in a new and potentially better ball game.

The outlook is marred by the yo yo of housing demand, fluctuating with the whims of the economy and regulators. That’s why, when asked to write a book on the potential of manufactured housing, I said, “You’ve got to be kidding!”

It didn’t take much research to change my mind. The survivors seem to have learned to cope with such market volatility and stifling regulation. The production cost advantage is still increasing and the competition continues to doze. Well managed surviving MH producers remain profitable in a scenario that would have crushed any normal manufacturing industry long ago … but woe to the manufacturer who single-handedly takes on the cost of a major industry image upgrade.

It needs to be done, but has to be a team effort, with participation by most members of the industry at large. And there has to be strong leadership so we all head the same direction.

Given the squabbling we all see and regret, is there any hope?

Of course there is! The MH industry has always been a teamwork affair, where even bitter enemies worked together to keep the system functioning, because we all had a vested interest in keeping this marvelous housing system pumping, cranking out houses and profits. That has not changed.

Sure HUD, Dodd-Frank and their ilk are a royal pain in the butt, but they strangle the other guys, too. Despite best efforts of bureaucrats to rule by regulation, economics will win in the end, and we’ve figured out an inherently better way to build houses.

Yes, for a time we fouled our nest. Young industries do that. Yes, the public disdains “trailers.” Tell me what sort of low cost housing they like? Nobody wants low cost housing except those having a nose for value or low income. Those are huge markets that no other product can satisfy that need as well as manufactured housing.

What we lack in image, we more than make up in value.

Let’s build on that. ##

bob-vahsholtz-author-dueling-curves-battle-for-housing-posted-industry-voices-guest-blog-mhpronews-com-manufatured-housing-professional-news-75x75-Bob Vasholtz is the author of Dueling Curves. Bob Vahsholtz is the author of DUELING CURVES The Battle for Housing. Bob can be reached at kingmidgetswest@gmail.com. Web: www.kingmidgetswest.com

A prior guest column from Bob – Who's in Charge Here – is linked.

 

(Editor's Note: The chart show above is courtesy of CalculatedRisk and was used in the following article, Manufactured Housing's Declaration of Independence. As with all letters to th editor, articles and guest column, the views represented are those of the writer. Other perspectives are welcome, email latonyk@gmail.com with Letters to the Editor or OpEd in the subject line.)

The Lost Decade Isn’t Over Until We Say it Is

June 19th, 2014 No comments

A decade ago, a shipment slump hit the manufactured housing industry. It actually started earlier in 2000, but by 2004 it was undisputed that shipments had dipped all across the country. The hope was that this decline was no different from those that happened before. Surely, sales would pick up and the good life would return. Now ten years hence, those hopes have been dashed. A new normal has set in. But has it? Recently, I asked industry professionals from all across the country if they were satisfied with an annual shipment level of 60,000 units?

60,000 units is the high point over the past three years. This uptick has again convinced some that the good times are about to roll again. But really? The April shipment numbers show that for the year, 19 states have increasing shipment numbers, four states have no change and 25 states are still declining!

So, in total, a handful of states have sufficient shipment increases to mask the decline in a broader range of states.

Taking the long view, the industry since the dawn of the HUD code produced one million HUD code homes in just its first three years. Over the following years, the next million mark took 4 or 5 years but recently it took a full 12 years to go from 7 million homes to 8 million. At the industry’s current pace, it will take 17 years to reach 9 million total homes.

Production of homes of course is but one industry metric. The number of HUD code plants has declined from 550 to 123.

A move back to the average performance of the industry over the 2000’s (which would mean doubling today’s production levels) could be a starting point for an industry goal. How do we get there? First, we need to recognize that many of today’s challenges existed back then too. Finance obliviously is an even more severe hurdle for customers and the industry. But fundamentally, the industry must strengthen each of its building blocks.

average-shipment-per-decade-manufactured-home-posted-on-mhpronews-com

Customer demand leads to new sales which leads to new orders which leads to filled community sites.

How do we fuel customer demand?

Interestingly, my thought is that we begin with the desired outcome and work backward.

An honest assessment of unfilled sites would say that many are not very attractive. Empty sites often are next to undesirable homes or unkempt spaces. Not places where a customer would want to put their shiny new home. We can do better.

The lack of independent retailers is also a factor. Few points of sale means less industry advertising. Essentially in many markets, the industry has gone dark on TV and other media. Given today’s technology we can reach customers in inexpensive ways. We can do better.

Ozzie and Harriet would love our homes. Too bad, they only represent a very small share of today’s households. The recent MHI design award winners point the way to new ways to think about what customers want. Notice I didn’t say “need” because customer buy based on wants. Only the housing desperate buy based on need.

How do we get to a new brighter future? It all depends on whether you’re satisfied with 60,000 annual shipments. If you are, do nothing. If not, we have work to do. ##

ross-kinzler-wisconsin-housing-alliance-executive-director-posted-industry-voices-manufactured-housing-professional-news-mhpronews-com-75x75Ross Kinzler
Executive Director
Wisconsin Housing Alliance

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 Retailers and Community Operators should go to Tunica!

March 19th, 2014 No comments

As I read the digital 2014 Tunica Show brochure and business building and profit protecting seminar line up, it became crystal clear why Retailers and Community Owner/Operators ought to be in Tunica next Wednesday morning through Friday at noon (March 26-28)!

Retailers and Communities can get free:

  • Networking with your peers,
  • Compare Manufacturers side by side, over 80 homes will be on display!
  • Compare products and services needed by your business side by side,
  • Get the latest on Manufactured Home Lending available TODAY, from all the major lenders all under one roof.
  • Get expert guidance on Commercial Lending on MH Communities,
  • Get marketing and sales tips in the Dominate Your Local Market 2.0 Seminar, featuring manufactured housing marketing and sales veteran, L. A. “Tony” Kovach.
  • Compare CRM products in a free panel discussion with Scott Stroud and myself, and learn why they are a key to growing your sales in 2014 and beyond.
  • Get success tips on MH Communities (MHCs) from pros with successful firms who know!

Let me give you a quick snapshot of the last bullet point above, which will provide the reasons you need to grab your business cards, and have your photo ID so you can enter the Tunica Show, free!

In the last decade, as the numbers of retailers and shipments declined, manufactured home communities (MHC) have of necessity become on-site-home leasing and selling operations.

Communities have always had to do the types of services and duties that developers and multi-family operations have provided in the conventional housing world.

Tunica has become a magnet in recent years, attracting more communities as well as more retailers than in prior years.

Here is the line up of on the panel for MHC Lessons Learned, to be held Thursday, 10:00 AM – 10:55 AM on March 27th.

Success Tips from Manufactured Home Community Owners & Executives!

For anyone in or thinking about getting into the land-lease community business, this panel discussion is for you! Hear practical tips from community operators that can help you operate your community more professionally and profitably.

jenny-hodge-national-coummunities-council-ncc-industry-voices-manufactured-housing-pro-news

Jenny Hodge, Vice President of the National Communities Council (NCC), will be your panel moderator.

You can learn more about Jenny in this month's MHProNews exclusive interview A Cup of Coffee with…Jenny Hodge.

tammy-fonk-8-2013-cbre-posted-mhpronews-industryvoices

Among those on the three person MHC 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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Maria Horton is a regional manager with West Coast powerhouse, Newport Pacific. Maria's bio is linked here, but having met her, let me tell you what her resume doesn't say. This is a warm, delightful engaging professional! You will love to hear here insights and experiences on this panel discussion.

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Rick Rand (l), Sam Zell (c), Jim Clayton (r)

Last and not least, is Rick Rand, who made quite a stir recently with this guest column. Rick was the subject of another MHProNews.com interview, A Cup of Coffee with…Rick Rand.

If online registration for the Tunica Show is closed by the time you read this, don't worry! You can bring your business card and a photo ID, retailers, communities, builder-developers, realtors and installers will be able to sign up at the door, free with those credentials!

Let me close with a tip of the hat to L. A. Tony Kovach. Dennis Hill recently gave Tony quite the well deserved public shout-out, for his key role in the come back of the Louisville Manufactured Housing Show.

Community Operations executive Ted Gross, with Continental Communities praised his session as being the best marketing presentation he had seen since coming into the MHC business.

We've worked with Tony about 90 days now, and let me tell you from first hand experience his deep passion for the MH Industry.

Tony cares about the success of people, operations and loves to see happy consumers enjoying our product.

I don't personally know of anyone who gives more time away for the benefit of the industry.

Tony's consulting and banner ads have helped our company's growth and presence in MH significantly! On MHProNews, he brings out the articles, experts and tackles the topics others shy away from, and is a friendly, peace loving professional and family man.

When you think about it, Tony's efforts to inspire our industry to do more and grow at shows like Louisville and Tunica are part of the rising tide of sales in our industry. You may or may not know it yet, but he makes you money just by being here and spreading the good word about our industry on sites like ManufacturedHomeLivingNews.com and here on MHProNews.com.

These are among the reasons why I'll be voting for him as MHI Supplier of the Year, and I hope others that read this will consider doing the same.

We will be at booth 13H in Harrah's Convention Hall. Change your plans! Make your travel arrangements! Fly, drive or hitch a ride, but we hope to see you in Tunica for the 2014 Tunica Manufactured Housing Show! ##

brad-nelms-coo-manufactured-homes-com-posted-mhpronews-comBrad Nelms
COO
ManufacturedHomes.com

9 Reasons Why You Need CRM

January 15th, 2014 No comments

Customer Relationship Management (CRM) is nothing new; it’s been around since the days of the Rolodex. Tickler files, ledgers, manifests, and even the ‘little black book‘ are relationship management tools that date back for centuries. But CRM has never been more important to closing sales than it is today.

Unless you do business on a very low scale (or work for only one or two clients) you are wasting precious time and missing sales opportunities if you’re not putting a CRM system to work for you. Here are 9 reasons why you need an effective CRM in your business:

Speed

Face it – the bulk of your leads and new customers likely come from online advertising – your website, directories, etc. If your customers find you on the web, they expect you to do business at the speed of the web, i.e., instantaneously. An effective CRM system should capture leads from online sources and send a response to new inquiries instantly and automatically.

The Fallibility of Memory

“The weakest ink is better than the strongest memory,” so the saying goes. And it’s true. Today’s sales professional is just too busy – and the workplace too hectic – to rely on memory alone to follow up with potential buyers. Without a single, organized place to record all client data, you will end up missing important communications – and losing sales. If you’ve ever grabbed whatever piece of paper is handy to record notes from an incoming phone call (and then lost or thrown away that paper as trash), then you know why you need a better system.

Awareness

Once you’ve attracted and recorded a new lead, you need a means to nurture their interest and remain front of mind with them. An effective CRM system will prompt you to keep in touch with prospects with relevant communications that address their key interests. Really good CRM systems will allow you to automate much of this process, including emails, phone calls, letters or post cards, and appointments. The goal: encourage a face to face meeting in your sales center.

Response

Nothing says “your not important; I don’t care” like failing to respond to a prospect’s question. Or not following up with them in a personal way. Or forgetting their name or the model or lot they’re interest in. An effective CRM system keeps all that information handy and accessible by computer, tablet or smart phone, and alerts you when you to appointments, incoming emails, or when it’s time to follow up with a phone call. And really good CRM systems allow you to store all relevant files – letters, plans, photos, etc., in the same place, so you always have every piece of information you need at your fingertips.

Management

So far, we’ve given valid reasons why every salesperson should use a CRM system. But it doesn’t stop there. If you manage a sales team, you need to know what opportunities are in the pipeline, which prospects are the most likely to close quickly, and what you can do to help move those urgent sales forward. You also need to see that every prospect is being properly followed up with by the sales consultant, and to give additional training and help where it’s needed. An effective CRM allows you to accomplish all that, and more.

Reports and Projections

What are your most effective lead sources and ROI from advertising? What are your projected sales (units and/or dollar volume) for the next month, quarter, and year? What is the average closing rate for your sales team? For individual salespeople? What is your average closing time, from initial contact to close? An effective CRM answers those questions and allows you to better manage your sales team, your advertising and your cash flow.

Service

Because your CRM program allows you to schedule appointments, tasks and alerts, you’ll be able to keep up with service calls or punch lists quickly, without ever worrying that an important call with fall through the cracks. Do you do annual maintenance, reviews, maintenance or renewals? Schedule these in your CRM, with alerts 30-days prior to the scheduled date to send notifications to customers and/or service agents. A really good CRM will automate these notifications and communications so you won’t have to.

Referrals

It should be the goal of every sales group to increase referral sales. A good goal is 30% – 40% of total sales. How do you reach that? By keeping in touch, servicing and nurturing existing customers or tenants. Every effective Customer Loyalty or retention program is powered by a CRM system. A CRM program will allow you to include past customers in any marketing events, such as open houses, seminars, or home shows, as well as send cards or congratulations on move-in anniversaries, for holidays, etc. A really good CRM will allow you to automate all of these processes, including alerts and email notifications, so that everything takes place seamlessly and without staff time to schedule.

Connectivity

While stand-alone CRM systems can provide all of the above, many will also connect and share data with other programs, such as your accounting program, inbound lead sources, rent or tenant management system, or point of sale program. This connectivity expands the value of a CRM to keep all customer data, from lead source to rent history, all in one place, saving time and avoiding ‘multi-system chaos’ that stifles use and frustrates business owners/managers.

So, there you have 9 good reasons to stop using that old, outdated spreadsheet or restrictive paper system and step up to a CRM system that will save you time, streamline your sales and marketing processes, and make your team more effective in closing more new and referral sales.

You should check out additional reasons to consider CRM at this story by Jason Brady linked below:

Start the Year off Right!

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Want to learn more? Then, join discussion moderator L. A. “Tony” Kovach, Jason Brady from ManufacturedHomes.com and me at the Louisville Manufactured Housing Show on Wednesday, January 23 at 9:30am SHARP for a special panel presentation on CRM for the Housing Industry. Go to this link at the www.TheLouisvilleShow.com site for details. ##

scott-stroud-posted-mhpronews-com-industry-voices-.jpgScott Stroud
180 Enchanted Dr.
Somerset, KY  42503
p. 606.677.04547

email:  sstroud@builderradio.com

(Editor's Note: The entire business building seminar lineup for the Louisville Show is linked here. It is currently the hottest page on their site, immediately after the home page!)

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.

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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

Action Alert: Don’t Let Lending for New Homes Dry Up on January 1, 2014!

June 12th, 2013 No comments

IN A NUTSHELL: If we do not get legislative changes this year, loans for home buyers could be EVEN LESS available afterJanuary 1, 2014.Yes, it can get even worse if we do nothing. Please help us by doing two things

1. Contact your Member of Congress to express your support for H.R. 1779 (information is below).

2. Please go to cosponsor.gov(http://cosponsor.gov/details/hr1779-113) and express your support for H.R. 1779 (you need to have a Facebook account use cosponsor.gov).

BACKGROUND: We have encouraged VAMMHA members and others who read this to contact members of their Congressional Delegation to ask them to cosponsor H.R. 1779. Members in the 5th District of Virginia are encouraged to contact Congressman Robert Hurt (who has already agreed to cosponsor the bill) to thank him for his support.

Here is what this issue is about: Reps. Stephen Fincher (R-TN), Bennie Thompson (D-MS) and Gary Miller (R-CA) have introduced thePreserving Access to Manufactured Housing Act(H.R. 1779).

The measure would amend provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that would otherwise curtail the availability of credit needed by those seeking to purchase manufactured housing if action isn't taken..

Specifically, the bill would revise the High-Cost Mortgage triggers for manufactured home loans, and make clarifications to the Loan Originator definition as it applies to manufactured home retailers and salespeople.

These two areas of the law—which are scheduled to become effective January 2014—would substantially reduce lender ability to originate manufactured home loans.

Assistance is needed from VAMMHA members and others within the manufactured housing industry, in contacting their Representatives to request they co-sponsor H.R 1779.

More details are available in thisdetailed issue brief/action alert.

Here is what we need: Please take a moment to contact your House member and ask them to cosponsor H.R. 1779.

To help you out,here is a sample letter that can be faxed or cut and pasted into an email to Congressional offices.

If you need to look up your Member of Congress, please click herehttp://www.house.gov/representatives/find/.

IMPORTANT: Congressman Robert Hurt (5th Congressional District) has agreed to cosponsor this bill. So, if he is your Congressman, instead of using the sample letter, please contact him to thank him for his support.

The following resource information is also available:

Over the coming weeks, Sen. Sherrod Brown (D-OH) is expected to introduce companion legislation in the Senate. Additional information will be provided at that time.

Please be sure to share with us any feedback you get from your Member of Congress. Thank you for all that you do to support the factory-built housing industry in Virginia.

tyler-craddock-executive-director-virginia-manufactured-and-modular-housing-associationTyler Craddock, Executive Director
Virginia Manufactured and Modular Housing Association
8413 Patterson Avenue
Richmond, Virginia 23229
Office804.750.2500
Mobile804.980.1172
Fax804.741.3027
Emailtcraddock@vammha.org