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Posts Tagged ‘MHProNews’

Hurricane Isaac Preparation Guide / 10 Point Plan

August 27th, 2012 1 comment

kurt-kelley-posted-in-mhpronewsThe latest track shows Hurricane Isaac to be a Category 1 storm that will track through the New Orleans area then N, NW all the way through northern LA. This will likely affect our clients in Hammond, Gonzales, Alexandria, Denham Springs, Houma, Prairieville, Alexandria, Opelousas, Morgan City, Monroe, LA and South and Eastern Mississippi.

Here's Ten key recommendations for those in the path of the storm.

1) Single section homes not lot set should have the air let out of the tires;
2) Homes should be moved closer to wind breaks if possible – but should avoid being set next to large trees;
3) Unsecured property should be moved inside or secured. Dead or untrimmed trees should be trimmed/removed;
4) Management should know the cell phone numbers of all employees. Land lines may be down and texting may be the best way to communicate;
5) If the main location loses power or has a catastrophic hit, there should be second location designated for a meeting place for all able-bodied employees;
6) Write the direct contact information down for your insurance company(s). Claims reported first tend to be adjusted first. Mobile Insurance’s claims number is 800-458-4320;
7) Know the contact information for all key utility (electric, phone, data, water, computer service…) and other suppliers (fire, police,..);
8) Systematically power down and disconnect computer systems to prevent them being damaged by power surges;
9) Place a note on your website outlining what clients should do in the event you are shut down; and
10) Take a video of your property as it exists right now / pre –storm. Be sure to include all real property improvements, home inventory, as well as building contents.

Take these steps and you will limit your exposure. ##

kurt-kelley-posted-in-mhpronewsSincerely,
Kurt D. Kelley
President
Mobile Insurance

www.MobileAgency.com

Unintended Consequences Can be a Good Thing

August 15th, 2012 No comments

Dan Rinzema posted in MHProNewsAs I read Lance Inderman's, Tyler Craddock's and DJ Pendleton's recent articles, a number of things came to my mind. One of them was The Law of Unintended Consequences. The Law of Unintended Consequences states that any purposeful action will produce some unintended, unanticipated, and unwanted consequences. A corollary states that the unintended consequences can turn out to be even more significant than the intended action.

Except for the “unwanted” part, that is in many ways what’s happened with MHVillage since 2004, when my partners and I decided to invest substantial amounts of Datacomp’s money and employee time into it’s creation. I'll recap another time some of the good unintended consequences of MHVillage, but for the moment let me focus on something that could bring rapid, immediate value to an issue that was raised by Lance Inderman, Ronnie Richards and others here on MHProNews.com.

Some months back, MHProNews ran a story that featured a lengthy video interview of Kevin Clayton. In it, Kevin Clayton expressed what Warren Buffett told him one day. “Kevin, it seems to me that the problem of your industry is resale.”

Resale or a remarketing path is in part what makes conventional housing and real estate perform better.

Conventional home builders don't have to tell a customer what their potential exit strategy is. The home buyer knows they can sell it themselves (FSBO or For Sale By Owner) or they can use a Realtor to sell their home. But what do we have in manufactured housing that works the same?

While there has been discussion back and forth about possible resale mechanisms, or using a recent Supreme Court ruling to list and facilitate the resale of more manufactured homes, the reality is that all of those approaches have time and cost challenges. The only resource that is up and running right now today is MHVillage and our MLX system.

The MLX or Multiple Listing Exchange is a rapid, low cost way that the industry at large could be tapping into the potential revenue and enhanced resale value that arguably must be part of the future to manufactured housing success. That is important for lenders, who may need to sell a repossession, and would rather do it without moving the home. It is also important for homebuilders, community owner/operators, and retailers as well as those 9+ million manufactured and mobile home owners.

Lance Inderman is correct. We have a great product in manufactured housing. Beyond his points, what keeps more well qualified potential home buyers from pulling the trigger? A 750 credit score or cash buyer customer will ask or think the following question. “What is my exit strategy when it comes time for me to sell this manufactured home?”

When you as a manufactured homebuilder, community owner/operator, or retailer can look that 750 credit score or cash buyer in the eyes and say, well, “We have a large and active Internet marketplace called MHVillage where you can either list through a broker or sell your home yourself,” that makes sense to that strong prospective customer.

Frankly, it was beyond our expectations that MHVillage would become what it is today, where 45,000 visitors – about 85% of whom are retail home consumers – visit daily to buy, rent, and/or use other services that all drive dollars for the manufactured home businesses involved. That was a good unintended consequence for us and others – one that I hope to cover in a future article here on MHProNews.com. But beyond MHVillage, there are other efforts that make sense for manufactured housing that can get or keep us in front of good customers interested in buying a home.

For example, we see value to efforts like Tony Kovach's new consumer focused MHLivingNews.com website, which promotes the positive aspects of the manufactured home lifestyle. We plan to support, engage in and encourage that effort, including but not limited to, providing content for them. MHLivingNews.comcan help over time improve the industry's image, which Lance's article discussed.

We see value to this MHProNews site, which has become the most robust platform of its kind. Articles on best practices, news, issues and discussions of problems and solutions must take place in our Industry in order for us to move beyond survive to thrive.

There are also efforts being put in place from state and national associations to drive the industry past the regulatory and other challenges that we face. I'm sure there are other private and planned efforts beyond those mentioned here.

The point is that when we learn to work together using the resources that we have, unintended consequences will happen and can be turned in our Industry's favor. That won't happen by itself. It will only happen as more savvy associations, businesses, professionals and pro-industry trade media platforms pull together to make it happen.

We tend to think of unintended consequences as bad. But some can be good, especially when we recognize the forces at play and make them work in our favor. It all starts with simple steps, often simply making use of resources that are already available today. ##

Dan Rinzema posted in MHProNewspost submitted by
Dan Rinzema
CEO, MHVillage and DataComp

What Manufactured Housing Competes Against

August 7th, 2012 5 comments

l;ance-inderman-mhpronewsI think we need to take a serious look at what our industry is competing with in the housing marketplace and the regulation that each of our housing competitors are facing.

We worry way to much about what one of the 3-C's of manufactured home building are doing than we should. As a percentage of new homes sold, we just keep loosing ground.

The site builders are pushing us further and further into the rural abyss. I have a partner that builds homes with me in Lubbock and we are able to build a brick home with porches and 6/12 roof pitches for around $40 a square foot including material and 100% subcontract labor.

I have another friend that builds about 125 new homes a year with annual sales of about $35,000,000 and a little over 10% net bottom line. He does this with 9 employees, no multi-million dollar building, total work in process and finished goods of about $1,500,000. He has no licensing requirements. His company and his salespeople have no continuing education requirements. He does not offer paid vacations to his employees or laborers. He is not faced with massive unemployment taxes if he does not have a house to build tomorrow. Government mandated health insurance does not affect him. Basically he has almost no regulation and very little overhead. He builds a quality product and is very successful.

I drove down the beach between Beaumont and Galveston and pass one RV park after the other with all types of RV's up to buses that cost over a million dollars.

I saw manufactured homes that were at least 12 feet in the air to protect a $40K double wide from flooding. The construction cost to complete these jobs has to be close to exceeding the cost of the home itself. This does not appear to be a very efficient way to supply housing to me. It looks to me that the RV industry is getting a big piece of our pie and the site builders are getting an ever increasing bite as well.

We have to become more efficient at what we do from the factory to the finished product.

I think the factories do a fabulous job building 16×76's, its the most efficient 3 bed 2 bath housing I have ever seen. But by the time we: 

  • market that 16×76 to our customer at retail,
  • deal with all the regulatory requirements to install and complete the home,
  • deal with private finance against government subsidized financing on site built's,
  • escrow over priced insurance and taxes and
  • then deal with the cost of servicing a home in the middle of nowhere,

our monthly payments are as much or more than most people can buy a new starter home including land in a tract home subdivision.

We must do everything in our power to control these costs, including, but not limited to:

  • getting our finance on a level playing field,
  • getting higher deductible lower cost insurance in our market,
  • factories working with the retailers/installers to do everything possible to lower the cost of installs and
  • last but not least keeping the regulators at bay.

I think our industry has a remarkable product that we can build and a great story to tell but all you hear and see is "I don't want a trailer in my back yard."   Most of those yards now include a brick home with an RV in the driveway.

I've said it a 1000 times that if we did not have FHA, FNMA and Freddie Mac that our industry would be producing the most affordable quality housing option on the market. What gives?

Lance Inderman

l;ance-inderman-mhpronews(Editor's note: Lance Inderman is arguably one of the most successful independent retailers of manufactured homes in the country. Champion Homebuilders recently purchased Athens Park Homes, a HUD Code, modular and park model builder that Lance and his associates operated. He was the Chairman for the Texas Manufactured Housing Association in 2010-2011 and remains an active player there. Lance plans to attend the TMHA annual event.)  

Intolerant Tolerance

August 3rd, 2012 2 comments

Michael Barnabas posted in MHProNewsby Michael Barnabas

For the purposes of this column, it shouldn't matter if you are a Democrat, Republican or Independent. It shouldn't matter what your nationality, race, religion or sexual orientation happens to be. There are a number of trends in our land that should concern business owners, executives and professionals – including the 250.000 or so professionals involved in manufactured housing – that could bite you or others one day. We might call this trend, intolerant tolerance. We have potentially profitable lessons to learn from this, but there are concerns that must be understood and dealt with to avoid negative, sudden impact.

Unless you've been on vacation off the planet, you have likely heard about the controversy that has erupted when mayors in Chicago, Boston and other public officials have come out strongly against the expansion of Chick-fil-A in their respective areas. For example, the Chicago Sun-Times reports, Mayor Rahm Emanuel said that Chick fil A's values were not "Chicago values." He therefor wants to block a new job-creating location that the chain has in mind to open there.

Chick-fil-A's Facebook page says, "The Chick-fil-A culture and service tradition in our restaurants is to treat every person with honor, dignity and respect – regardless of their belief, race, creed, sexual orientation or gender."

Is there anything missing in that statement worth troubling ourselves over?

So why should that company be targeted by those who happen to hold a different personal viewpoint? Are we approaching a point where if your beliefs – or mine – don't happen to be the same as those of a local, state or national official, that we better fall in line, or else face threats against our business or profession?

Objectively – and sadly – one must answer this question today with a 'yes.' Which is precisely why we as business professionals need to take action at the polls and in jury boxes when called upon and in sounding off via letters to the editor and with public officials.

You don't have to be an expert in European history, or of Hebrew descent, or in one of these other groups to ponder the importance of the following:

First they came for the communists,
and I didn't speak out because I wasn't a communist.

Then they came for the trade unionists,
and I didn't speak out because I wasn't a trade unionist.

Then they came for the Jews,
and I didn't speak out because I wasn't a Jew.

Then they came for the Catholics,
and I didn't speak out because I wasn't a Catholic.

Then they came for me
and there was no one left to speak out for me.

This was originally attributed to German Protestant Pastor, Martin Niemöller (1892–1984).

Dan Cathy, the president of Chick-fil-A – whose views are the ones in question – is, to my knowledge, a Southern Baptist. So it was noteworthy when this public response came out on July 29, 2012 about the controversy:

Recent comments by those who administer our city seem to assume that the city government can decide for everyone what are the “values” that must be held by citizens of Chicago. I was born and raised here, and my understanding of being a Chicagoan never included submitting my value system to the government for approval…”

– Francis Cardinal George, OMI, Archbishop of Chicago.

Good for him.

What we are witnessing is a series of over-reaches by local, state and federal government. This isn't new, but it has reached a pitch in the last few years that is unprecedented in America for at least two generations.

The entire purpose of the American Constitution and our system of limited government is to protect citizen's from over-reaches by others who may wish to misuse the power of government to oppress others.

Thus the point by community owner –Jefferson Lilly– made in his recent Industry Voices column are spot on in importance, because his issue and this one both come back to this simple point about limited governmental powers under the Constitution.

Making many issues facing businesses – and manufactured housing – SIMPLE

We don't elect kings and queens in the United States. We don't elect dictators, benevolent or otherwise.

We elect officials who take an oath of office that calls upon them to abide by the strict limits of their office's powers. When government officials, elected or otherwise, go beyond their limited authority, the result is that someone's rights are being trampled.

This ought to be junior high school civics 101, but sadly, this is often not properly emphasized in too many schools. It is under-reported by too many in the media, because those reporting often have their own agendas. So many citizens learn about this much later in life; if at all.

The first question that should come to any U.S. Citizen's mind when government over-reach seems to be taking place ought to be: is this law or regulation constitutional?

The Bill of Rights was added to the Constitution as the first 10 Amendments.

Per Wikipedia, the First 10 Amendments to the federal Constitution are as follows:

1. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

2. A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

3. No Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.

4. The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

5. No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

6. In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

7. In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any court of the United States, than according to the rules of the common law.

8. Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

9. Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

10. The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

The reality is that we have drifted far from these Constitutional limitations. This has taken place to the advantage of a few and the peril of virtually all of us.

The Payoff for Standing Up for what is Right

What the long term consequences and outcomes of the Chick-fil-A controversy will end up being, no one can yet say. But what we do know is that in many cities across America, customers are lining up at their restaurants as a sign of support, as this photo from the Huffington Post demonstrates.

When driving past a Chick-fil-A location yesterday after the lunch rush, I couldn't help but notice a packed parking lot. CNN columnist Tim Stanley wrote: “…the sheer number of people involved in the Chick-fil-A Appreciation Day suggests that turnout will matter in November.”

There is a political reaction taking place. This is something that not only ought to be happening, but is something manufactured housing professionals ought to tap into in our own struggles with regulators and public officials.

Applying this to Manufactured Housing

Might we – with the right foundation and approaches – benefit from the over-reaches of government, as Chick-fil-A seems to be gaining from the over-reaches of Big Brother minded public officials?

There has certainly been a call by some state associations and MHI to involve manufactured home owners in our issues. The MHLivingNews website is in the ideal a concept in that mold. What impacts us, on matters such as Dodd-Frank, impacts manufactured home owners too, as Ronnie Richards compelling article points out.

There is something that must not be missed here in why Chick-fil-A seems to be benefiting from this attack on their liberties. The obviously have loyal customers. Manufactured housing does too. What we must do is intelleigently tap those manufactured home owners in positive fashion, to line up there interests along with ours. We must care for them, as true professionals do, so they in turn will care for us. This is part of the dynamic working well for Chick-fil-A.The article linked here describes a Texas bank that will challenge the constitutionality of Dodd-Frank. We need to take every possible step at limiting the impact of that ill-conceived law, which has reportedly already resulted in most banks abandoning free checking to help cover the costs of this bill.

Public officials have to learn to live within their means, just as we do. Public officials must be reminded of the limits of their authority. Spending and regulations have to be reigned in, or else this slope we are on only gets steeper and more slippery.

Intolerant Tolerance must be ended.Tolerance should mean standing in solidarity and protecting each other's rights.

True tolerance and equality ought to mean that all citizen's have the same basic rights, duties and responsibilities. It doesn't mean sharing the wealth of others under the guise of 'fairness;' which would be a form of legalized theft. It doesn't mean equal outcomes.

Tolerance ought to mean mutual respect. It ought to mean you can practices your beliefs – or lack of beliefs – without the fear of having those beliefs imposed upon you by the force of government.

What Chicago and Boston's mayors, among others, threaten is political correctness on steroids. If you don't fit their 'values' your business could suffer. This type of discrimination is not new to manufactured housing. By learning the lessons of this episode, we could tap into the same dynamics that are playing out well at present for Chick-fil-A.

Part of the lesson is that we too should stand up for those whose rights are also threanted. As Martin Niemöller's verses above remind us, if we don't stand up for the rights of others, some day it may be our rights which are threatened. ##

By Michael Barnabas

(Editor's Note:Since Michael Barnabas' column on Getting Zuckered was published, their stock's value has dropped by over 50% from their high.)

Liberty

July 17th, 2012 No comments

I read Tony Kovach's recent Masthead blog post with some fascination. Because the upcoming elections are on my mind too. Many of us feel that we are watching something slip away. Many of us want to make sure that we continue what was started in 2010, when the House or Representatives was retaken by 'tea party conservatives'.

Lady-Liberty-mhmsm

I did a post on LinkedIn recently, asking questions about the impact of the Nanny State on manufactured housing professionals. Here are a pair of the statements, quoted below verbatim, with the initials of the person who made the comment:

The industry is, I agree, significantly over-regulated. Often intentionally, exemplified with the number and types of superfluous disclosures to prospective residents our legislature seeks to add, and also as the unintended consequence of legislation targeting others (SAFE Act as to sale of park owned homes, Red Flags, Safeguard Rules, Patriot Act, etc.)” TD

The problem is that sometimes we get what we "wish for" – the HUD Code. Many manufacturers in the industry wanted HUD regulation to avoid regulation by each state. Tony is correct – the largest shipment year was 1974 – the year before the HUD Code, but, there were other factors at work as well.KR

Here are some quotes from historic leaders and masters on this subject of Liberty.

Any society that would give up a little liberty to gain a little security will deserve neither and lose both.” Ben Franklin

If we are together nothing is impossible, if we are divided all Will Fail.” Winston Churchill

The will of the people is the only legitimate foundation of any government, and to protect its free expression should be our first object.” Thomas Jefferson

Do not wait for leaders; do it alone, person by person.” Mother Teresa of Calcutta

Liberty, when it begins to take root, is a plant of rapid growth.” George Washington

Only our individual faith in freedom can keep us free.” Dwight D. Eisenhower

Liberty without learning is always in peril; learning without liberty is always in vain.” John F. Kennedy

To be free is not merely to cast off ones chains, but to live in a way that respects and enhances the freedom of others.” Nelson Mandela

The history of freedom is never really written by chance but by choice.” Dwight D. Eisenhower

Lincoln Union Forces MHProNews

We have so many things that can inspire us Americans. One of the countless examples is Abraham Lincoln, who suffered defeat after defeat in his personal career, only to keep coming back through dogged persistence to accomplish his goal.

Lincoln is famous for three reasons one his election in 1860, two his struggle to hold the Union together in the Civil War. But Lincoln is also famous that his life was riddled with failure and he overcame it time and time again. Here is just a small sampling of his failures;

1831 Failed in business

1832 Lost his job

1836 Had a nervous breakdown in bed for 6 months

1843 – Ran for Congress and lost

1848 Ran for re-election to Congress and lost

1858 Ran for US Senate and lost

1860 Ran for President and won.

The question – how many failures can you endure and carry on? The answer that Abraham Lincoln gave with us with his life example is to keep on keeping on until you accomplish that worthwhile goal.

Great things can be accomplished by team work. Pulling together can happen professionally as well as politically. That is why associations and parties exist. One thing is certain, "United, we Stand. Divided, we fall."

There is no need for perfect unity, nor is it possible. America became free of England not because everyone stood together! They became free because enough stood together to make it happen. Some say that perhaps 1/3 of the people were engaged in the effort and supported independence.

So don't think that just because there is opposition that we are thus 'doomed to fail.' YOU be a part of the solution. Gather others of like mind. Share the truth well, and some will accept it. That is how you get 'enough.'

The same can be true for us now as it was for the American Rebels at the time of the Revolution, as we work to reverse a long string of legal and regulatory setbacks to our liberties. We can do it. We are Americans. Amer-I-CAN.

The economic times give manufactured housing professionals an in unprecedented opportunity. Lower incomes means more people than ever before are looking for affordable quality homes in America. But we won't accomplish it unless we get some regulatory and legal hurdles out of the way.

This is the election that we had better work hard to win. If you haven't already seen and shared this political cartoon linked here, please check it out and send it to your mailing list.

http://www.manufacturedhomelivingnews.com/2012-06-25-16-14-30/purely-political/37-the-5-facts-for-voters-to-consider

Doing so can do two amazing things. One, it can get more people thinking and engaged.

Two, it can get more people looking at the manufactured home lifestyle in a positive way.

Those are two things that can help you and your business. Together, Let's do this! Liberty – personal freedom – is worth working for, always. ##

Posted for
Tim Connor

Marketing & Sales,Website,AdvertisingandMHSpeakerTrainer– Manager

MHProNews.com = The MHIndustry's#1 News, Tips and View you can Use© resource.

MHLivingNews.com = Free resource to enhance MH HomeOwner Satisfaction and MH Image Building

The Emperor has no Clothes

August 21st, 2011 13 comments

There is a lot to say about what has gone wrong with our country and our Industry.  We will begin ‘at the top,’ with our Chief Executive, President Barack Obama.

What’s up with Obama’s recent bus tour?

I’m no fan of the prior president, but say what you will about President W, when he took a similar bus trip to President Obama’s, W used campaign dollars to pay for it.  Where is the “watchdog” media? Why no hue and cry when the administration buys millions of dollars of Canadian buses so President BO can tour in style on the taxpayer’s dime?

What’s up with all that?

Isn’t it ironic that BO tours campaign style after lecturing millionaires and billionaires about private jets and corporate perks?  Or is that rhetoric just a way of getting the votes of middle America and ‘the little people?’

Do you like ‘divide and conquer politics?  To me, it is plain wrong.  Talk about issues, talk records or about facts.  But don’t pit one group against another.

I need to be clear that W vacationed considerably more than BO.  But W went to his ranch or Camp David, etc.  But to add irony to injury, on the heels of all this bad economic news, BO is in Martha’s Vineyard – the haven of the elite – now?

Even left wing commentators see this vacation in the New England playground of the rich and famous as a problem.

  • Experts and government statistics suggest we have 17% unemployed and under-employed.
  • We have more people on food-stamps and welfare than at any time in U.S. history.
  • And BO will give us his ‘next’ jobs program in September, after his resort vacation?
  • Where are all those shovel ready and other jobs from the ‘first’ one?  Or were all the jobs ‘created’ at the job killing CFPB?

They say the emperor has no clothes.  Well, we have no emperor, but a president and his wardrobe looks just fine.

Ascendancy and Dependency

It is the party of dependency that is still in ascendency.

Or at least still in high office…

…dependency is a major voting block today.

Be it government labor unions, federal jobs or those on government assistance, it is an issue.  We have to put people to work, not get them used to no work. We do need federal and other government jobs.  But we can’t give everyone a job regulating someone who is working to produce a product or a service that keeps America’s wheels turning.

If we do not change our ways federally and locally, we will look like rioting old England some day, because we can’t afford to keep adding to our debt and taking on more programs that fail to foster independence.

While we have plenty of dependency programs, meanwhile, we have

  • flash mobs that form, rob, harass and harm others in our cities.
  • We have automatic weapons fire along our southern border.
  • We have three wars we are involved in instead of the previous two.

I didn’t favor W taking us into Iraq, nor do I favor BO taking us into Libya.  Even if we ‘win,’ what have we won in either case?  We spill American blood and treasure, for what?  We can’t be the world’s cop, and we can’t have wars for the sake of foreign oil, etc.

Let’s drill and do energy on U.S. soil and off U.S. shores, as safely and prudently as possible.  Think about the major jobs creation potential.

Private enterprise can pay for it all without federal dollars.  Let business people do business in America again.

Another Recession, whats up with that?

The media speaks of double dip recession.  What’s up with that phrase?

Did anyone notice that the ‘great recession’ never ended?  Did you notice that the housing markets still suffer, and Keynesian/Euro socialist economics just added trillions to our debt without giving us a stronger economy?

No jobs.  No stimulated business.  Tougher lending.  Very little respect overseas.  Where is the change we can believe in?  Or was that supposed to mean the pocket change we have left after taxes?

Third part candidate George Wallace once said there wasn’t a dime’s worth of difference between the two major parties. Thus Wallace favored what some have for years, a third party to bring America back. But Ronald Reagan had it closer, we don’t need a third party, but a rejuvenated second party.

That means we don’t need Rino Republicans, Republicans In Name Only.  To me, W was a Rino, socially conservative, but nearly as much a man about big government as BO is.  W helped give us that darn bail out of the bankers.  W took us into two wars with no end in sight.  W’s dad may not have “finished the job” in the first Gulf War, but he had the smarts to get in and get out.

We need business friendly independents, Democrats and Republicans.

Businesses create jobs.  Jobs are what American’s need, and then they can start buying houses again!

Speaking of jobs, how about creating 20 million new ones?

I’ve read the same reports you have; that there are two trillion dollars of investment money on the sidelines – actually overseas – that could be brought back to the U.S. In short order.

But that 2 trillion fled America due to regulations and tax policies.  Do we have the political will to bring those trillions back?

Think about what Two Trillion Dollars we don’t have to borrow, or write down, would mean to our country right now.  If every $100,000 invested created only 1 American job, that would mean 20,000,000 jobs.

Think: 20 million people off aid, off food stamps, off unemployment or other government programs.  2o million more taxpayers.  Think 20 million people less dependent, means we would be that much closer to a balanced budget!

We better find and support candidates in whatever party who know how the free enterprise system works, because creating jobs by supporting business is what we should be about.

Free Enterprise, not Keynesian/Euro socialist economics, is what made America the land of the free and the home of the brave.

November 2012 is shaping up now.  Who we support now for our state houses, or for Congress, the Senate and the White House will be on the ballot 15 months from now.

Personally, I’ve contacted my senators and representative and made my feelings known on economic and social issues.  But I will also make them known on the path to election 2012.

Give the man his props

One thing that our recently bus touring and now vacationing BO has done is give us an executive order we can believe in.  With all due respect to Marty Lavin, Danny Ghorbani was the first to bring it to our Industry’s attention.  We speak of Executive Order (EO) #13563, similar to President Clinton’s issued in 1993.

MHMSM.com posted EO #13563 months ago, that requires an examination of regulatory impact and its benefits.

MHARR is right.  HUD’s budget has grown, while our industry shipments have shrunk.  What’s up with that fact?

What the president – at least on paper –  has done is give us EO#13563 which could hold HUD and other regulators accountable.  Now will our national associations use that to our Industry’s benefit?

The Fall Congressional hearing on Manufactured Housing

Ooops.

Who do we have in DC “helping us” in the planned fall Congressional hearings on our Industry?  Congressman Barney Frank.  What’s up with that?

Let’s see.  Barney helped give us the SAFE Act.  Barney also gave us part of the name of the bill that in his: Dodd-Frank.

So do you feel safer or dodd-franked?

With friends like Barney, does our industry need any federal enemies?

Who is watching how our industry PAC money is spent?  Is this the type of anti-business candidate we need to support?

Where is that change we can believe in?  Or did I drop that change the last time I filed my quarterlies?

One of the best meeting planners around, but…

I asked Tony Kovach why George Allen’s Roundtable was not on the MHMSM.com calendar.  “George isn’t an association, and he opted not to pay for an ad.”

Maybe there is considerable momentum from last year’s event that MHMSM.com did promote.  I noticed that Allen is reporting more state association executives coming to the Roundtable this year.  State execs are often ‘comped’ for coming to an event.  George is one of the best self-promoters the Industry has seen in the past 2 decades.  I’d want state execs helping me promote an event of mine too.  Nothing wrong with it, a common practice.

In the manufactured home communities world, Allen’s Roundtables are unmatched.  Allen gets some fine speakers and topics in.  They are informative and enjoyable.

However, I can’t always agree with George Allen’s commentary, live or in his columns here or in his own publications.  Let’s parse some of his recent ones for a few moments.

I understand and agree with George that MHI doesn’t seem to have a plan for our Industry’s recovery.  What’s up with that fact?  I can see why the natives are restless in the NCC, even with Lisa B getting appointed.

George is spot on that MHI is failing to do half of what an association is called to do – protect and promote.

  • Where is the Industry promotion?
  • How has MHI worked to reverse the Industry’s downward new home shipment trend?  Marty was spot on regarding that topic, in his recent column.

But George’s bashing of Danny and MHARR misses the mark.  Why?

Because MHARR is an association for independent Manufacturers. MHARR don’t get paid to represent communities or lenders or suppliers.  MHARR doesn’t represent retailers,  which if you ask retailers like Doug Gorman or Dick Moore, MHI doesn’t seem to do such a hot job for them either.

George, the point is that MHARR can’t be faulted for focusing on what its members pay MHARR to do, namely, work on regulatory issues.  So George, if you want to fault Danny, fault him for something that group is paid to do.  At least MHARR has stated publicly they support the ‘post production’ sector (MHARR code words for MHI) in their efforts to modify Dodd-Frank, SAFE, etc.  I’ve not seen any similar effort from MHI back towards MHARR.  If it exists, it is behind the scenes.

I also agree with Marty Lavin that we better watch more what people say than what people do.  We better watch results, because words alone can be cheap.

Or words can costly, depending on how you look at it.

Industry Marketing and Image Campaign

Speaking of MHI and the Industry image campaign…

…I’ve seen the plan Tony, IMHA’s Mark Bowersox and others have put together.  In a word, brilliant.

In my mind, they need to consider a different name, but for now they are calling it the Manufactured Housing Alliance and Phoenix Plan.  Their plan navigates the key political issues that our industry has faced that has kept us from moving ahead.

We keep reading from MHI the statistics about our dropping new home shipments.   This gets back to the dual role that an association is supposed to have, protect and promote.

Where is MHI on this MH Alliance/Phoenix Plan effort to turn around our image, marketing and sales results?

Silent.

By contrast. I see John Bostick’s name on the page in favor of the MH Alliance/Phoenix Plan.  That makes me want to order some Sunshine Homes and get others to do the same!

Good for MHARR’s Chairman, who did not endorse it on MHARR’s behalf, but Mr. Bostick has obviously taken the time and had the guts to publicly say, hey, this can work.

Which leads to the questions:

> Where are the MHARR members or Danny on this plan?

> Where is MHI on this plan?

Marty Lavin on Danny Ghorbani

I’m the first to agree with Marty that Danny needs to polish up those lobbying skills.  In fact, let me take Marty’s points a step farther.  As I personally see it, and others may disagree, Danny has three options:

  1. change your ways, permanently and rapidly, to become more effective at what you do for MHARR,
  2. retire and consult for MHARR as needed;
  3. or just retire.

Danny, retire? What would happen to MHARR without Danny?  What’s up with that idea?  Can you even say MHARR without saying Danny G’s name?

Yes, you can.

Attorney and MHARR VP Mark Weiss is a good man.  Mark knows the law, can be reasoned with and Danny has prepared him to take the helm at MHARR, when the time comes that Danny decides to retire or when MHARR members make that decision.

For example, MHARR could bring in a new associate, give Danny a nice gold watch, and a one year transitional consulting agreement.  The independent factories that support MHARR can save money.  As or more important, they likely can get more done and advance their cause in DC with HUD, Congress and other regulators.

The timing is right for a change at MHARR.  Danny, don’t take it the wrong way, you are a smart guy and know the HUD Code as well as anyone in the manufacturing side of the Industry.  But in my personal opinion, it is time to change your ways for the better or you better retire.

The best suits and fine meetings

Danny has some of the best suits in DC that our Industry can brag about.  Danny and MHARR are spot on with some key issues.  But you can be right, and still do things in a way that turns people off.

But give the man his props, Danny is right about MHI meeting,

after meeting,

after meeting and

…where is the MHI plan?

But then, Danny – if you stay – you and MHARR should then walk the walk and have an action plan of your own. Not a some day, or five year plan, a let’s get it done now plan.

Perhaps John Bostick’s public move supporting the MH Alliance/Phoenix Plan will inspire others of stature to make their own public statements or just help launch the program.

But at some point, we need to get past meetings, and get to doing.  46,000 shipments.  We are now down about 88% from our post HUD-Code high in 1998.  How much lower can we go and still have an Industry?

  • We can’t fill empty home sites with only used product.
  • We need new homes bought from factories and sold to consumers.
  • We need retailers and community operators who attract customers with good credit, and then close them and turn them into happy homeowners who will tell their friends and once again let our Industry grow.

The Numbers on MAP

I like abbreviations. Let’s call this plan of Mark’s and Tony’s MAP for short, because this MH Alliance Phoenix can be our road MAP to the future. Maybe we can get Tony and Mark to come up with a better name.  But in the mean time, MAP it is for me.

I asked Tony to give me a projection on what he thinks MAP can do.  His answer?  First year from the launch date could double shipments without a need for hurricane season (no need for FEMA orders).

The next year could double it again.  That would be roughly 92,000 shipments in year 1. Then 184,000 shipments in year two.

Take a look at the MAP if you haven’t already.  If you have a better plan, why not share it?  But if not, get behind the plan that is out there being discussed.

I’m told that MAP can be up and running in short order.  We can do MAP, with no waiting for federal or state action!

Doing the Math, my Math not Ts

Tony has his math, I have mine.

Let’s say MAP was launched, and then MAP raised shipments back to 75,000 the first year.  Let’s further say, 1/2 of the increase went into communities.

  • That would mean 14,500 spaces filled.  At say $275 average a month per site, that would mean $47,850,000 more to MHCs a year.  Plus the profits off the home sales.
  • 29,000 additional new shipments would mean 29,000 new jobs.
  • It would mean security for those whose jobs or businesses are at risk due to declining shipments.How many MH plants would stay open?
  • At even a low $50,000 average per home, that 1.45 billion in new sales.  Think about the boost in revenue to retailers and developers.

Would you give $75 per location to boost sales $1.45 Billion and create about $48 million in new communities revenues?

If not, please go back to 5th grade math.  To me, this spells a good deal.

Let me stress, these are my numbers, not T’s or Mark’s.  But it tells me why they and others are working to see this plan happen.

Chattel Lenders

I’m not without experience in dealing with personal property lending.  While he wasn’t talking about just lending, I agree with Chad Carr’s recently published statement about MAP.  The MH Alliance/Phoenix Plan is the only plan I’ve seen that gets to the heart of fixing chattel lending for our Industry.  MAP provides solutions for image, lobbying and other practical issues too. It dares to be bold, without trying to step on any industry group’s toes.

If your chattel lender has not yet seen this, she or he better do so!  This can help us cut our repos losses dramatically.

It will help our customers – manufactured home owners – dramatically too.  That will in turn attract more customers, and more credit worthy ones.

Manufactured housing lenders need to see our losses cut.  Because that panel of lenders at the MHI Congress last April were correct.  A repo can cost 50% (or more) of the loan balance.   There are so many dark clouds that hang over personal property lending for manufactured housing right now, we have to have solutions if our Industry will ever advance.

In fact, our survival depends on it.

I asked Tony specifically about people who have and have not seen MAP.  T won’t comment about those who haven’t shared a public statement. I can respect that, but it does leave us guessing.

So someone needs to ask Marty Lavin or Dick Ernst where they are on this.  Have they seen it?  What is there take?  It is obvious that Ken Rishel has come out for it, big time, in his own newsletter and on MHMSM.com too.

Come to think of it, where is George Allen’s name on this subject?  Didn’t he say a few months ago, we needed an image campaign?  What’s up with that?

We could go through a list of industry leaders and say, what about you?  Where are you on this MAP subject?

If you are for it, why not say so publicly? If you oppose it, why and then propose your own alternative!  Mark, Tony and those working on this want to see consensus. I appreciate that, but I’d add that we can’t afford to debate stuff forever.  We need to move ahead, and pronto.

If we do not start advancing, more factories, more retailers and more communities will fail.  It is simply 5th grade math.

State and Communities Association leaders

Given that a pair of state association leaders have already publicly stated support for the MH Alliance and Phoenix plan, it is reasonable to think others have seen it too.  We need to watch and encourage this plan at the state level.

Because let’s be honest, the states are where it is at.  All politics are local, and your business happens at the state and local level.

Last year, we saw some state execs who took a leadership role to get things happening at the federal level.  We need to see that again, and we need to see that on MAP or their best alternative to it.

A pimple on an elephant’s bottom

We’ve heard this expression at meetings and coffee tables.  I admit it sadly fits the influence our Industry has politically in DC today.  We need to be working tea parties to get the party of jobs, business and growth moving ahead. We need to hold the feet of those who say they will change DC for the better to the fire, and get the gold of jobs and rising housing back to work building the U.S.A.

We have lost our nation’s AAA credit rating.  Debt piles up, what do we have to show for it?  Where are the jobs?  The lending?  The recovery?  What did we bail out anyway?  Who benefited from all that taxpayer funded largess?

We saw some amazing upsets at the midterms, and I think we can see more if we plan now for the best candidates and then mobilize for the general elections.

It is frankly another good reason to learn and get behind the MAP.  We will increase our influence at the state house and in Washington when our consumers are visibly supporting us in sizable numbers.

Let’s work and earn the support of our communities’ residents and home owners/customers!  Then we should make sure we continue to deserve it.  Without happy customers, we are as doomed as if HUD bureaucrats or others would just shut us down.

TANSTAFL

If I boiled this down, it would be this.  We can’t have something for nothing.  TANSTAFL = There is no such thing as a free lunch. Someone always pays.

We better work for truly positive change, or we will be left with pocket change.

We better look at and support a plan that can move us ahead.  I vote for the MH Alliance/Phoenix Plan.  Or we will suffer the fate of the buggy whip makers.

I shop at WalMart no more than I have to, because I believe in supporting the smaller and more independent business women and men out there.  They are more like me.  They want to serve me, and I in turn want to support them.

We better support the HUD Code builders, and they in turn, better support us too.

Talking and Doing.

Before we look at any other emperor who also lacks clothes, let’s close for now. Talk is fine, but let’s follow talk with do.

I want to thank those of you who have written.  Please do not think me rude, but for now…

…I hope you understand that some things need to be said that have gone unsaid too long.

More next time.##

post submitted by
Michael Barnabas

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