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Posts Tagged ‘kinzler’

Financing in the CFPB Era and the Path to Full Manufactured Home Communities

June 24th, 2014 No comments

Tony,

Great articles and comments made by others. 

I agree with 99% of what is said. The issues I see our industry has are: 

  1. People are so scared of the Dodd-Frank and Safe Act. Our industry needs to deal with this as the new reality and figuring out how to do business with these new regulations. 
  2. Lenders and community owners getting together on a win-win community home financing program that requires community owners to repurchase the homes that default and requires the lenders to originate loans at lower rates. 
  3. Community owners making their communities more appealing to today’s buyer:
    1. Updating their community amenities (Signage, clubhouse paint and carpet, pool furniture, road repairs, etc.)
    2. Enforcing communities rules to ensure that all homes are maintained and clean and neat
    3. Finding ways to improve the community lifestyle by organizing community events that enrich the residents lives.
    4. Moving in new homes and having 2 or more fully decorated models that will help prospects visualize how nice a manufactured home can be.
  4. Community owners should NOT jump into the rental home model so fast. Many markets can support true home sales business model by offering financing options that make sense to their customers. This does take more work but the full community with home OWNERS rather then renters is worth the extra work. 
  5. Community owners offering outside retailers attractive move in programs. 

We have implemented this in all our communities and are selling anywhere from 30-100 homes per community per year. 

Thanks for sharing this article. ##

scott-roberts-roberts-resorts-posted-industry-voices-guest-blog-mhpronews-com-Scott Roberts
Chief Executive Officer
Roberts Resorts
8350 E. Raintree DR. Ste 220
Scottsdale, AZ 85260
480.425.8696

scott-roberts-roberts-resorts-posted-industry-voices-guest-blog-mhpronews-com-(Editor's Note: The articles Scott's letter to the editor refers to are ones by Ross Kinzler and Jay Hamilton.

For those who may not have met Scott or know the progressive work being done in his communities, Scott was the recipient of the Manufactured Housing Institute's “Community of the Year” at the 2014 Congress and Expo.

The head shot above is actually part of a larger photo, that shows him holding his Community of the Year award.)

About “The Lost Decade,” Revisiting and Advancing

June 19th, 2014 No comments

I think it’s good to set goals and to sometimes make them higher than we think are obtainable. My main question in response to Ross Kinzler's OpEd,

http://www.mhpronews.com/blogs/industryvoices/the-lost-decade-isnt-over-until-we-say-it-is/

…is to say that it may be take longer to get back to 200,000+ shipment levels, even with a good marketing support plan. Steady 5 to 10% annually for the next few years is doable. After that, it could be accelerated. That said, it would be wonderful if Ross is correct on how quickly we could recover.

From an advertising standpoint, Ross is absolutely correct. The dollars invested should be an unavoidable business expense such as floorplan, lot lease, utilities.

The basic rules of marketing is that 5% of gross sales should be reinvested in advertising your product. This is a minimum number and a proven business management principal.

Our industry's history dictates that if you’re not profitable you don’t advertise. That’s like saying that we won't pay the utility bill this month if we are not profitable.

Where would monster.com, google.com or godaddy.com be today without their Super Bowl Advertisements. Would we recognize any of the three names otherwise? But now they are all house hold words, because they marketed themselves.

That not to say we need to do Super Bowl ads but we do need to follow time proven business principals and always invest a percentage of our gross revenues in advertising.

jay-hamiltonC. Jay Hamilton
Executive Director
Georgia Manufactured Housing Association
199 East Main Street
Forsyth, Georgia 31029
Phone : (478) 994-0006
Cell : (478) 394-5114

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

Are Frameless HUDs a MOD under state laws? 

June 3rd, 2014 No comments

The question of whether a “frameless” factory built home might be considered a modular home under state law is an interesting question.

To me, if the definition of “manufactured home” is amended to delete the requirement that a manufactured home have a permanent chassis, it wouldn’t matter what state law says.

If a frameless home receives a HUD label, that label is preemptive and the home is a “manufactured home” within the federal meaning of that phrase.

What is more interesting is if the term “manufactured home” is amended to exclude RV trailers larger than 400 square feet so a larger RV trailer could be built, since that unit is not defined in a federally preemptive way, then yes, state law could define that unit as a modular home.

So for the RV industry to produce a non-regulated home at either the federal or state level, they would need to amend federal and all state laws. ##

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

 

(Editor's note: an industry savvy attorney, not affiliated with MHARR, who saw MHI's statement on frameless HUDs voiced concerns about the issue. See this article, supplied by MHI for publication.

http://www.mhpronews.com/mhi-news/7691-about-the-rvias-efforts-on-changing-some-language-in-the-hud-code-for-manufactured-housing

Jim Ayotte made this statement on a related issue;

http://www.mhpronews.com/blogs/industryvoices/the-rv-industry-is-attempting-to-amend-the-hud-manufactured-housing-code/

As on any article of topic of industry interest – private or public (ie: for publication) – feedback on this subject is welcomed.)

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.

ross-kinzler-wisconsin-housing-alliance-mhpronews-industry-voices-hall-of-fame-

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.

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

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.

don-westphal-manufactured-home-community-development-operations-owner-posted-mhpronews-com-industry-voices-.png

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.

rick-rand-l-sam-zell-c-jim-clayton-r-posted-manufactured-housing-pro-news-

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

RV/MH Hall of Fame Celebrates Inductees

August 13th, 2012 No comments

Surrounded by more than 300 family, friends, and colleagues from across the country, the Class of 2012 was inducted into the RV/MH Hall of Fame (Hall) at a gala ceremony last week in Elkhart, Indiana.

Barry Cole (Manufactured Housing Insurance Services), chairman of the board of directors for the Hall, said, "What a joyous occasion with all past legends and present leaders of our great industries to honor the ten new inductees. There is no industry function that can equal the emotional feeling and happiness when mingling and networking with so many greatest of the great."

Cole believed it was an incredible evening supported by both RV and Manufactured Housing segments.  

Inductees and family members accepting on behalf of deceased inductees include: First Row (L-R): Doug Gorman, 

Stan Sunshine, Gerald "Jiggs" Meuret, Kaki Williamson, Jeanne Mize, Rachel Gandy, Mary Irene Younkin, 

Michael Evans. Second Row: Bob Olson, Kent Titcomb, Allan Yoder, Gail Yoder and Holly Yoder.

"The cocktail party was fun, the huge group picture with all attending was charming, the dinner as always was incredible and best of all was the touring of the RV/MH Hall of Fame itself." Cole continued. "Wandering through the exhibits, theater, library and museum surprised some new guests. They were shocked at the unbelievable greatness and beauty of the building plus discovering their heritage for the first time. All comments from everyone referencing the Hall were in superlatives."

"Some of the many MH veterans who mingled and networked during the cocktail hour were Ron Younkin, Jeff Wicke, Dan Rolfes, Tim Williams, L. A. 'Tony' Kovach, Ken Rishel and George Allen." 

"At dinner Dick Jennison (MHI) was sitting with a contingency of MH professionals Jim Scoular, John Evans, Leo Poggione, Darrell Boyd, Chris Barrett and John Loucks. Ross Kinzler was sitting with Jigs Meuret and Danny Gorbani (MHARR) sitting with Doug and Millie Gorman. These are a few of the enormous number of MH attendees."

"These are a few of the enormous number of MH attendees."

 

Keynote speaker David Humphreys (left). Darryl Searer (right) delivers good news concerning the financial health of the Hall

Keynote Speaker David Humphreys, former president of the Recreation Vehicle Industry Association said, "The Hall of Fame serves many purposes for the industry. 

Besides providing a great consumer attraction, the Hall of Fame defines an important message for the financial community, the media and legislators and gives a sense of pride, unity and accomplishment for the entire industry."

Noting the solid financial footing the Hall of Fame has achieved through the leadership of President Darryl Searer, Humphreys urged audience members to give the same priority to the Hall of Fame they give to industry unity."

In a behind-the-scenes look at the financial status of the Hall and its recovery from near insolvency just a few months ago, Searer declared, "The Hall of Fame has never been in better shape than it is today."

Overall debt owed by the Hall has been cut by $2.5 million in the four months since Searer assumed the Hall presidency.

Cole added, "It was a special evening you just did not want to end. You are invited next year."##

barry-cole-rv-mh-hall-of-fame-manufactured-home-insurance-services-mhisBarry Cole, Chairman, RV/MH Hall of Fame