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Posts Tagged ‘MHProNews’

Dueling Factions

September 2nd, 2014 No comments

In this time of industry crisis, many thoughts arise regarding strategy and direction, but there has been seemingly little effective action. A couple of old friends from my days in the industry, plus one new friend, Dr. David Funk, asked me to see if I could help things along by putting matters into historical perspective.

In my early days when the MH industry was breaking sales records every year (I’ve been retired for more than two decades), we were leaderless—in discord. No manufacturer originated more than ten percent of shipments. Those heady times ended with a crash—a major housing crisis.

Faced with ruin in the seventies, manufacturers, suppliers, retailers, community owners and the like pulled together behind a focused plan of action. It was a widely debated strategic decision to enhance industry credibility by accepting HUD supervision of a national building code for our product. There was plenty of dissent, but the plan had broad support. It was nominally led and presented by MHMA (the Mobile Home Manufacturer’s Association, the predecessor of MHI).

Wrong course? Maybe—we cannot know—but it attained consensus; we worked together and made it happen. A bit of a miracle, considering a long history of bickering and lack of leadership.

These days, we face a bigger challenge and yet … where’s today’s consensus? What’s the strategy? Where’s the leadership? You have a strategy, I have a strategy and yonder fellow behind the tree has a strategy, but what emerges is discord.

In my naïveté as I stepped back into this largely consolidated industry, I thought a leader would step forward, rally the troops behind a plan of action, and get on with developing our great potential. Strangely, that has not yet happened. As Rahm Emanuel said, and Tony quotes:

Never let a good crisis go to waste …

We’re wasting this crisis by fussing over “who’s right” instead of debating “what’s right.”

you-never-want-a-serious-crisis-to-go-to-waste-rahm-emanuel-president-obama's-chief-of-staff-image=wikicommons-(c)2014-lifestyle-factory-homes-mhpronews-com (1).png

Editor's Note: this is the MHProNews poster Bob Vasholtz is referencing,

the article and context it was used in is linked here.

“What’s right” is hard to say, but easier than finding broad agreement. No clear consensus seems to emerge from our diminished industry represented by multiple associations. None of them seems to have a handle on “what’s right,” though there seems a general agreement that the others are wrong and one organization (guess which) should lead the charge. It looks like we’ll not be singing Kumbaya real soon, so how about we start by tuning up Jim Krueger’s 1977 lyrics:

There ain’t no good guy, there ain’t no bad guy
There’s only you and me and we just disagree

Nothing wrong with disagreement. There are many viable ways to tackle a problem and finding the best can be a stiff challenge, requiring many inputs—thoughtful discussion among all guys who are betting their companies on this industry’s future.

Underneath the rhetoric there is probably an industry consensus that no one has managed to dig out, articulate, and work into a viable strategy. There seems to be no vehicle for doing so. We’re all on the same side, and yet can’t seem to band together and work toward a mutually acceptable way forward. Wow.

It sorta reminds me of national politics. The Republican party caters to the radical right, Democrats the loosely left and the sensible consensus is leaderless.

Rick Rand has a great idea to pull the factions together, shake ’em in a sack, and see what emerges (my words, not his!). I’m on record in support of Rick’s idea, but suggest the challenge is … difficult. It has been my observation that industry progress tends to be incremental with breakthroughs few and far between. How and where, for example, might our scattered and somewhat contentious flock even gather so discussions can begin? How can we, this industry, get past internal politics and start the ball rolling? We’re a young and feisty bunch competing in a turgid housing market. Where, exactly, do we begin to get a handle on a viable and agreeable strategy?

Tony suggests in these pages, “Perhaps we need a few dozen retired guys—or those so financially comfortable—that they don’t fear speaking out publicly on touchy issues that matter to our industry.”

Well gee, I’m such a veteran, happily retired, having no skin in the game and representing no one. I’d be pleased to join with similar voices and see what we can conjure. Thomas Jefferson said:

Those who hammer their guns into plows will plow for those who do not.

I’m an ol’ Kansas farm boy, have my grandpa’s anvil in the barn and can still swing a hammer. Let’s get on with it!

While Tony’s idea is terrific, I wonder if a gaggle of geezers of good intent can do much beyond early steps in the direction of uniting our industry voice toward a viable strategy? Without unity, the problems of a leaderless industry drag on and strategy does not emerge. Agreeing upon one viable association seems a good place to start such useful discussions while reducing internal conflict. Maybe that should be at the top of the agenda for such a senior-citizen forum?

In support of Tony’s and Rick’s ideas, and with incremental progress in mind, here’s another suggestion. Conduct a survey of all segments of the industry, trolling for consensus. Put forth a professionally-written survey, geared toward one question: Which single association or group should speak for our industry in dealing with the important questions we face today—and why (or why not)?

To still protests, the survey must be inclusive, fair and objective. Who can do that? Foremost has long been respected as a provider of solid industry data and could probably do it well. The results, if clear, would be hard to deny, leading toward consolidation. They might sponsor such research in lieu of their next MH survey. The results could be of historic importance.

As with Rick’s conclave and Tony’s summit of the aged, the outcome of such a survey should not be expected to result in a shiny new industry strategy. First we need positive steps for getting back on track—taking what Peter Drucker called results oriented action, toward our industry’s great potential—at minimum, enabling us to speak clearly to confused Washington bureaucrats.

One step at a time along our learning curve. It’s kinda dumb to be racing off in different directions when times are tough and we most need to pull together. ##

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

(Editor's Note: All opinions expressed are those of the writer, and may or may not represent the views of this publication, editor or our sponsors. Other points of view are welcome. OpEds or Letters to the Editor on industry related issues may be sent to latonyk@gmail.com or tony@mhmsm.com, thank you.

As a point of fact, Bob Vahsholtz clearly agrees on some things, disagrees on others, with L. A. “Tony” Kovach's editorial perspectives. Alignment with Masthead view points is not required for publication! :-)

Reply to Danny Ghorbani’s, “Sobering Wake Up Call…” – “MHARR Report and Analysis “

August 14th, 2014 2 comments

(Editor's note, the following is in reply to a public message sent from Danny Ghorbani's email at MHARR, linked here, that was critical of Bill Matchneer, JD, and some recent HUD action. Since the factory named had the issue corrected, that plant's name was edited out.  Other views are welcome.)

Plants are certified (licensed to build homes) by HUD based on the strength of their quality control (QC) programs. That’s what the regs say and that’s always been the practice. All I did was make sure plants continued to maintain the level of QC the regs require and let them know that HUD could suspend or revoke the certification if the QC falls below a certain point.

This change in program emphasis was motivated by a series of homes that was shipped from a ——– plant in California with no flue connections. Several families were nearly asphyxiated. The only real complaints came from Danny.

I mostly got compliments and thanks from manufacturers who not only saw real improvements in their products but in employee morale as well.

MHI knows it’s the right way to go, as does Pam Danner, with whom I’ve had several conversations on the subject. ##

Bill-Matchneer-mhpronews-com-75x75Bill Matchneer

(Editor's Note, you can see our latest interview A Second Cup of Coffee withBill Matchneer,” at the link shown.)

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.)

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.)

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

MHGrassroots: A Call to Action

June 17th, 2014 No comments

As I sit comfortably in a 737 at 30000 feet coming back from a thought provoking meeting at the MHI Expo in Las Vegas I don't have to go in great detail on how the world has changed since 2001.

From how we fly, how we communicate, and even how we conduct business, it has all changed in ways none of us truly imagined then.

Every day I read more about how a government I have grown up loving, is making changes that contradict the core beliefs and attributes it was built upon. With that said, let's look at a few issues that have faced, primarily as it relates to the manufactured home market in the past 15 years.

In Texas we were asleep at the wheel in 2001 when House Bill 1869 took effect. I was but one of the many independent dealers who were wondering how this could have happened. I even looked Gov. Rick Perry in the eye and told him point blank that this bill would cost Texans jobs and would reduce home order sales, which in turn would force the closing of several fine manufacturing plants.

Unfortunately I and those around me were right. Even though the TMHA through a lot of hard work was able to have this poor piece of legislature repealed in 2003, the damage was already done.

I won't go into the specifics of the law itself, but I will say it was a killer from day one. If you have any questions about it, just Google it. I have heard the experts’ state that 85% of the independents who were in the market at that time were wiped out by this law and the recession that hit us in 2008. And guess what. Those folks are gone, probably never to return again.

So let's take a look at where the train came off the tracks.

We were too late to stop one train simply because we weren’t aware it was heading for the station.

If we want to be successful in the legislative arena we have to stop the bills before they get that close to the tracks. We, the industry as a whole, must be vigilant in being aware of any laws, in every city, county, state and federal arena that could negatively impact not only us, but the people around us.

This means we have to know, and have a relationship with, the people in charge. Governor Perry signed that bill even after I told him the truth. Why? Simple, he didn't know me from Adam. No relationship equals no traction. We have to build those relationships in order for our voices to not only be heard but to be accredited.

How was it fixed? A grassroots effort. From the ground up. TMHA called upon every member….who in turn called on every state senator and state representative to repeal a bad piece of legislation. And it worked! Why? Because the industry stood up as a whole, and worked together for the common good of all. I call this a victory for the good guys.

Let's look at another victory.

Last year I received a phone call from a landlord who was my ‘competitor’ in Plainview, Texas. I use that word competitor only because we are after the same pool of customers. I call him a friend.

Basically this city was in the process of creating a city ordinance which would require an inspection on every rental inside the city once it was vacated by a tenant. Never mind the fact that this would be in direct contradiction to the HUD code on a manufactured home. Every house, apartment, and mobile home would have to be brought back to current code if this law passed.

This would mean thousands of dollars spent to update every unit.

One unintended consequence of this law would have forced the citizens to pay rent in excess of three times the current rate.

Another would have riddled the city with homes to be demolished due to the repair cost being more then the value of the home.

Yet another would have been a mass exodus of good paying tenants to the surrounding communities which didn't have this law.

So how did we stop this calamity before it was passed like Texas House Bill 1869?

We showed up in droves. There was standing room only at every hearing. Meetings with every city official we could get and we killed it before it could even be heard by city council. How? It took one phone call from each of us who took the time to make that call. And another victory ensued.

So what does all this mean to you, the reader?

It's time. It is time to make a difference and make a call of your own.

I know you are busy, but don't blow this one off.

Dodd Frank and the SAFE Act are not going away. So what are you going to do? I am calling not only those of us in the industry, but all of us.

The government doesn't need us, but this country does. We are this country's answer to affordable housing. But if the people can't get financing for that home what good are we to them?

If you don't know who to call that's ok. Call your state association. If you are not a member, sign up. If you are a member, get active. Make a difference. You can. ##

shawn-fuller-d-r-housing-new-deal-texas-industry-voices-manufactured-housing-mhpronews-com-75x75-Shawn Fuller
D & R Housing, LLC.
New Deal, TX 79350

Manufactured Home Factory Tour with my Congressman

June 5th, 2014 No comments

Back in February when I visited with Congressman Bill Flores in Washington, I asked him if he had ever toured a manufactured housing plant.A couple of months ago, one of his staffers contacted me wanting information about the manufacturing facilities in Waco.I had replied with information about Fleetwood Waco and about Clayton Homes two facilities in Waco.I gave him information on the Clayton and Fleetwood facilities, explaining that while as TMHA Chairman I represented the entire state, my retail location had carried Fleetwood product for some years, but that I was sure either company would be more than willing to provide a tour.

Last Wednesday, I received an email from his scheduler, Jessica Harrison for contacting me about Representative Flores coming to visit Fleetwood Homes manufacturing facility in Waco.

Texas Manufactured Housing Association (TMHA) Director D.J. Pendleton, myself, and Gay Westbrook of the MHI, made the trip as well as Don McCann, the manager of the Clayton Homes Waco manufacturing facilities.We were joined there by Ray Parma and Zach Sanders, the GM and Sales Manager respectively of Fleetwood Waco. 

I can report to everyone that the visit and tour went outstandingly well.

Rep. Flores was very engaging of plant manager Ray Parma; the congressman asked questions during the plant tour about everything from frame camber, to shear wall design and how it impacted tie-downs.  I could just see Ray’s eyes gleaming with getting to share his many years of experience at the plant. It was a pleasure to all of us in attendance that the congressman genuinely cared about what went into our products and the people who made them.Zach had the opportunity to visit with his District Director during the tour and field questions from him as well.

fleetwood-plant-tour 6-2-2014-for-congressional-representative-flores-550x512-.png

While we can all brag about our differing product lines at shows and conventions, Ray and Don gave a great one-two punch by providing Rep. Flores with fact that between their facilities in Waco alone, there were over 750 constituent employees in his district and at least that many more in vendors that provide material for those facilities.

Rep. Flores met with all of us after the plant tour and discussed not only Dodd-Frank legislation and the CFPB, but also things that affect manufacturing facilities such as OSHA inspections and health care for employees.  It was good to see friendly competitors coming together to express concerns to the congressman. 

All in all, it was a great visit.

My sincerest thanks to all who took time out of their schedules to be a part of the event and thanks to past MHI Chairman and current Cavco CEO and Chairman, Joe Stegmayer, for allowing the use of the Waco facility for the tour. ##

karl-radde-texas-manufactured-housing-association-chairman-mhi-retailer-division-vice-chairman-posted-industry-voices-manufactured-housing-pro-news-mhpronews-comKarl Radde, GM
Southern Comfort Homes
Chair of TMHA and Vice-Chair of MHI National Retailer’s Council
karl@schomestx.com

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.)

Finance Expert Dick Ernst of FinmarkUSA: introduction at Tunica Manufactured Housing Show 2014

May 20th, 2014 No comments

Editor's note. This public introduction was videoed during the business building seminars held during the 2014 Tunica Manufactured Housing Show.

Note that the Speakers knew they were being filmed.

Dick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com1

An exclusive interview with Dick Ernst is planned to be featured in our upcoming June issue. Dick moderated the finance panel at aDick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com3 packed room of industry professionals at the 2014 Tunica Show. Dick Ernst also moderated MH home lending and commercial panels, in an overflow crowd during the 2014 Louisville Show.

Dick is a key figure in meetings with industry and public officials, including the CFPB, FHFA and more.

Dick-Ernst-Financial-Marketing-Associates-tony-kovach-mhpronews-com2

You'll get exclusive insights into the widely acknowledged top man in the manufactured home finance business, into industrymhpronews-interviews-with- finance issues, how to generate more profits and much more. Watch for it – and the. Watch it – in June!

More video Interviews available today are found at this link below.

http://www.MHProNews.com/home/industry-news/industry-in-focus/7540-global-eyes-on-manufacturedmodular-home-movers-shakers-and-news-makers

Our thanks to Dick Ernst at FinMarkUSA.com for his profit-making and protecting leadership for businesses, associations and others, and my thanks too for his kind words shared in the video above. ##

(Image and video credits, ManufacturedHomes.com in association with MHProNews.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