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Posts Tagged ‘marketing program’

Our experience with Resident Owned Communities – no BS

January 15th, 2014 No comments

The “No BS about Resident Owned Communities” article that appears on this site brings to mind President George W. Bush’s comment while visiting Canada in 2004:

I would like to thank all you Canadians for your warm welcome at the airport. Especially those of you who waved (pause) with all five fingers.”

I get it. We have a successful business model that is reshaping resident ownership and that invites reactions from competitors.

I stand by our record of performance to prove we have a lot of five-finger waves and cheers in the marketplace for ROC USA® as we’ve closed:

  • 13 resident-owned community (ROC) purchases in 2013;
  • 12 in 2012; and,
  • 11 in 2011.

In fact, we have closed a ROC transaction every 37 days on average since we launched in 2008.

We got there by being 100-percent focused on making resident ownership effective and efficient and successful. The marketplace is the true judge.

One of the keys to our success is that we don’t have to chase capital to finance resident purchases. We have already raised all the financing the resident corporation needs — including funds for deposits and due diligence — in a U.S. Department of Treasury-certified Community Development Financial Institution.

We have current liquidity to finance $40 million of resident purchases today. No one else in resident ownership services has raised capital in advance the way we have. We did it so we could create a different transaction experience for buyers and sellers.

We’re not simply brokers who get paid at closing and walk away — we equip homeowners with the tools and training they need to successfully manage their communities. The fact is that we care about each community’s long-term performance and we know every democratic association needs leadership development and cost-effective shared services to be competitive. ROC USA has a national leadership institute for ROC leaders, a national marketing program for ROCs, and an online and in-person training system to help ROCs and ROC leaders succeed.

At ROC USA, we use the limited equity co-op for simple reasons: It is the most effective and efficient, the fairest and the most affordable model for homeowners. We stand by our work of the last 30 years with more than 140 ROCs that we took from tenants to owners.

Not one of those communities has failed.

That 30-year track record demonstrates the competency and capacity of ROC members and leaders with whom we work.

Every one of these ROCs is real ownership where each homeowner can purchase one low-cost membership interest in the corporation that owns and controls the MHC. There are no outside parties with an ownership interest in the co-op or the MHC, only the homeowners can be member owners.

ROC USA is a nonprofit and thus must serve low- and moderate-income communities, but that doesn’t limit us to small communities. Our largest completed transaction was a two-MHC portfolio transaction worth $23 million for nearly 500 home-sites in 2012. Further, and not surprisingly, every MHC we’ve worked in has sufficient numbers of low- and moderate-income — that’s not an issue.

We don’t apologize for being well-funded or widely publicized. Getting things done attracts interest and attention. Every closed transaction gets a press release and we send postcards to announce purchases. Often we’ll quote the community owner or the broker. Here are two recent ones:

The business model that ROC USA has developed is superb. It was a different transaction in that you usually have to jump through a litany of different hoops in regard to banks and bank regulations. But that simply wasn’t the case here. I would certainly do it again, and I will.”

Joel Erlitz, Broker,
First Commercial Property Corp.

 

“It’s no different than a sale to any third-party.”

Phil Johnson,
Seller in Minnesota

ROC USA does not practice public policy. In fact, we eliminated the part-time policy position at ROC USA in 201l.

We’re out earning our way in the marketplace — just like you.

That’s how we ROC ‘n’ roll. ##

paul-bradley-rocusa-president-posted-industry-voices-manufactured-housing-pro-news-com-.jpgPaul Bradley, President
ROC USA, LLC
pbradley@rocusa.org / 603-856-0709

(Editor's Note: this article comes as a response by the Paul Bradley to the Featured Article entitled No BS about Resident Owned Communities.

Other perspectives on this topic or any that impact manufactured housing are welcome. Please put OpEd, Letter to the Editor or Industry Voices in your subject line and send proposed article to – latonyk@gmail.com and/or iReportMHNewsTips@MHMSM.com – thank you.

As an additional reminder, we welcome tips on topics and local/regional/national/international news that impacts factory built housing. Readers like you can be and are a part of the story here! )

Poverty of the Modular Home Builder

September 4th, 2012 No comments

gary-fleisher-modular-home-coach-posted-mhpronews.com-industry-voices-manufactured-home-marketing-sales-management- (1)When we think of poverty, we think homelessness, food banks and welfare.

Chronic poverty was once compared to catching a grasshopper in a jar when we were kids.The jar had a lid with holes poked in it.For a while the grasshopper jumped up and kept hitting his head against the lid.Then he would only jump high enough to try to cling to the glass and finally he would just stay on the bottom of the jar and gave up all hope of getting out.

A lot of modular home builders feel that way about selling homes in this tough market.They have been trying to get out of that jar since the housing crisis hit and now that the lid has been removed they simply don’t have the strength or the knowledge to jump back into profitability.

Poverty by definition is a“deficiency in amount.”Modular home builders sure fit the criteria.So what are these deficiencies that face modular builders?

Marketing poverty.This is a problem because most builders have neither the resources nor the training to mount an effective marketing program.Modular home factories sales reps have not been taught how to help builders get the message out to the home buying public and the factories themselves don’t market their product.A page on Facebook and a good website are just the tip of the iceberg.What is needed to fight the poverty of marketing is someone; either a modular factory group or an individual; to step up and begin developing individual marketing plans for modular home builders.

Knowledge poverty.How many builders effectively communicate the advantages offered by a home buyer choosing a modular home?Surprisingly few!Many builders have limited knowledge of the green, sustainable or energy conservation methods used by the modular housing industry.The sales reps are supposed to be knowledgeable about these things but they are also facing the same poverty of knowledge.This is an area that needs to be given special attention by the factory.There are only a handful of factories that hold builder meetings or offer training directly associated with these topics.Take a look at your jobsite… do you have a sign on it with all your contact info and your website and email address?

Language poverty.There are thousands of books and articles written about how to sell new homes, get referrals and retain customers.What is missing from most of these articles is that an average new home builder only uses 400-600 words when they try to sell their homes.The builder has become very succinct in the selling phase of the process. They have developed canned speeches that are used in just about every sales presentation.Unfortunately, buyers have been reading everything they can about new building techniques, architecture and sustainability and want a longer, more in-depth conversations with the builder.The solution is easy.Read a book a week and an article a day about the building industry.Learn the language of the buyer.

Financing poverty.This is first year of fairly decent new home sales since the housing crisis started and a majority of modular home builders are still not part of their buyer’s mortgage adventure.Builders still think that after they give the buyer their house quote, the buyer is somehow inherently knowledgeable enough to go forth and acquire one. Fat chance! Builders not only have to know how to build a modular home, they have to become a partner with the buyer throughout the mortgage process. In order to do that, a builder must learn what the buyer will be going through when they apply and help them over the pitfalls and speed bumps imposed on buyers today. This is as easy as sitting down with a couple of lenders and asking what they need from the builder and how best to help the buyer. How many builders still view the lender as a necessary evil instead of a necessary partner?

Stop being the grasshopper on the bottom of the jar and begin taking marketing seriously.Then learn what your factory is doing to improve the buyer’s lifestyle and actually talk to them as an expert in modular housing.Then work with the buyer and their lender closely to make the buyer’s dream into a reality which will keep you and your family out of real poverty.

gary-fleisher-modular-home-coach-posted-mhpronews.com-industry-voices-manufactured-home-marketing-sales-management- (1)Post submitted by
Gary Fleisher
Modular Home Coach

modcoach@gmail.com