George Allen / EducateMHC Blog Mobile Home & Land Lease Community Advocate & Expert

Blog # 203 Copyright 2012 15 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities,& before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

What’s Your PLATFORM?

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Thanks for Sharing Your Formulae, Rules of Thumb & Measures!

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64,500 new HUD Code Homes in 2012 Slips to 63,875…

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I.

What’s Your PLATFORM?

One of the exciting new books released during 2012 is Michael Hyatt’s PLATFORM, ‘Get Noticed in a Noisy World’, a “step – by – step guide for anyone with something to say or sell”. It’s published by Thomas Nelson and ISBN number is 978-1-59555-503-8. I heartily recommend it to every businessman and woman needing a PLATFORM, “…the means by which you connect with your existing and potential fans”, would be (home buying) customers, (consulting) clients, followers, and more. P.xvi

Hyatt claims, to be successful in today’s business environment, you need two things: a compelling product (or service) and a significant PLATFORM. Why? Presence of greater competition and more distracted customers.

Early on he extols the importance and vitality of WOW, relative to one’s product or service, naming these ten elements: surprise, anticipation, resonance (i.e. ‘touches one’s heart’), transcendence, clarity, presence (i.e. timeliness), universality, evangelism, longevity, privilege. Pp. 8-10 And concludes with “…once you learn the distinction between WOW and not – wows, it is difficult to be satisfied with anything else.” P.16

Why isn’t a universal and overwhelming WOW factor germane to the MHIndustry and LLCommunity asset class? Take your pick or combination of these common obstacles:

• We simply run out of time. In other words, if ‘Proper prior planning prevents poor performance!’- as an industry, we simply haven’t been planning properly or at all!

• We don’t have enough resources. For example: staffing and or money.

• We don’t have sufficient experience. “Our vision exceeds our know how.”

• Too often, we acquiesce to the committee. Collective judgment trumps us!

• But the biggest obstacle of all is fear. “Previous four items are but excuses. If we had enough courage, we would find the time, the resources, the experience. We would stand up to the committee. We wouldn’t stand for anything less than WOW!” p.18

Hmm. Do these obstacles, particularly the last one, remind us of where we’ve already been, and what we’ve failed to accomplish, ‘image improvement and product promotion wise’, during the past decade, despite efforts by some individuals, and routine acquiescence to ‘committee’ influence? Maybe the Manufactured Housing Institute needs to invite Michael Hyatt to the next MHCongress as a keynote presenter, to challenge and allay our fears.

Moving right along. The author, on page # 20, describes the six steps it does take to make WOW happen during PLATFORM building. But you’ll have to read to book to learn them….

Then I picked up on a new acronym: PINC. Specifically, when it comes to giving one’s product or service a memorable name, it must “…do at least one of the following: make a Promise, create Intrigue, identify a Need, or simply share the Content. Hence, ‘PINC the name’!.

And when preparing one’s PLATFORM presentation, or 30 – 120 second ‘elevator speech’, ensure it’s “…a short summary of…product (or service) offering, including target market…and value proposition (i.e. What’s offered those customers).” P.41
When it comes to PLATFORM building, the author focuses on five basic branding tools: email address, email signature, business card*1 and website (designs), and social media profiles. Pp. 45 – 47

And for readers who haven’t blogged before, there’s a core of useful knowledge on this subject, relative to templates, ideas for topics, protecting intellectual property, and much more, actually 50 pages worth. See pages 75 – 123

A surprise for me, was reading how “Tribe building is the new marketing!” How to build a tribe? Hyatt’s suggestions: identify your true passion; volunteer to lead among those with like passion, be generous, and provide a means to communicate. P. 129

There’s even more to this book. In fact, I’ve already decided it’s well worthy of another read – through, just as soon as I finish a couple other books that are awaiting my attention. And it’s not a quick read, if one is intent on absorbing the Lessons Learned, described therein. But the, is anything ‘truly worthwhile’ ever a quick read? I don’t think so. GFA

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II.

Thanks for Sharing Your Formulae, Rules of Thumb & Measures!

Former St. Louis, Missouri, independent ‘street’ MHRetailer and landlease community owner, Bob Bross, Sr., suggests this witty Rule of Thumb for all of us:

‘When your outgo exceeds your income; your upkeep becomes your downfall!

Now that’s apt and cute at the same time. Any more gems ‘out there’ blog floggers?

And how ‘bout these two Rules of Thumb from our industry/asset class’ landscape architect par excellence, Don Westphal, RV/MH Hall of Fame Member:

‘If you can farm it, you can build a manufactured home community on it!’

Don goes on to explain, “Farmers till the best land available even though it has topography that, in other parts of the country, would be left untilled. Same holds true with wet areas or poor soils. Farmers avoid those areas, preferring to farm land they can access on a year – round basis.”

And he says: “Make the homes (rental homesites) parallel to the contours of the land.”

This practice can result in substantial savings in earthwork, and eliminates need for retaining walls, when home sites are arranged perpendicular to land contours in steeper topography.” To contact Don Westphal, phone (248) 651-5518

Jay Zandman, with Manning & Nozick Insurance Agency in Atlanta, GA., offers this Rule of Thumb reminder to landlease community acquirers and owners/operators, that “…any buyer obtaining seller financing, should request a flood plane determination. All financial lenders pull one, as part of their due diligence process. A buyer might not think of this, if obtaining owner financing. FEMA is redoing flood maps, during the next couple years. A landlease community that wasn’t in a flood plane several years ago, may well be in one now!” Reach Jay, for insurance quotes, via (800) 211-0468 X 117.

There were a few more, that you’ll read about in the Book of Formulae, Rules of Thumb, & Helpful Measures, once I get it written. In the meantime, if you have formulae, Rules of Thumb, and measures you’d like to share for possible inclusion in this new ‘book of numbers’, send them to me via contacts at end of this blog posting. In the meantime, to reserve a copy of the book, for yourself, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And if you haven’t yet registered for the upcoming 21st annual Networking Roundtable, ask for an agenda and brochure when you call, or visit the website: community-investor.com

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64,500 new HUD Code Homes in 2012 Slip to 63,875…

One of the first responses to last week’s blog topic, ‘How Many New HUD Code Homes to be Shipped During 2012?’, went like this:

“64,500 is depressing to those of us who were working in the industry in 1972. Let’s go! The regrowth and rehabbing of our industry starts with a first bite of the elephant.”

OK, I’m ready to ‘bite’, but where and how deeply? While it’s certainly encouraging to see month – after – month improvement in new home shipment numbers, I’m only cautiously optimistic it’s going to last for the long haul, unless relaxed borrower qualifying standards return to chattel (personal property) finance loan origination and underwriting – NOT; and this natural gas ‘fracking’ phenomenon grows into other regions of the U.S. – MAYBE.

In the meantime, we’re stuck with looking at our month by month new home shipment totals, supplied by the Manufactured Housing Institute via its’ ‘Monthly Economic Report’. For example, this paragraph in the 10 July 2012 report:

“The seasonally adjusted annual rate (SAAR) of shipments was 55,982 in May 2012,up 6.3 percent from the rate of 52,642 in April 2012. The SAAR corrects for normal seasonal variations in shipments and projects annual shipments based on the current monthly total.”

So, where did I get the bold ‘plus 10,000’ number of ‘64,455 new HUD Code homes shipped during 2012’ estimate, published in last week’s blog posting here? Simply took the 18,131 ‘thru May’ shipments, compared to 2011 year end total of 51,618 and extrapolated for a 2012 year end total, using the 22,640 May shipments reported in last week’s MHI report. Answer? 64,455. For the sake of accurate reporting, the May 2011 figure reported as 18, 131 last week was reported as 18,125 this week; and the May 2012 figure reported as 22,640 last week, was reported as 22,627 this week. No big deal, likely a tweaking for increased accuracy.

This week’s estimate of annual shipments of new HUD Code homes, by the end of 2012? Down a notch, from 64,455 to 63,875. This extrapolated mathematical calculation and its’ result are not in accords, apparently, with SAAR methodology mentioned; but not parsed in detail in a previous paragraph of this week’s blog posting.

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End Note.

1. For blog floggers (readers) interested in business card design, front and back; call the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request a FREE, eight panel, plastic wallet card summary, titled: Is Your Business Card a Keeper? This is a synopsis of the book on ‘business card design’ we’ve not yet published. Eight panels summarize ’10 Business Card Design Considerations for the Front of Your Card’ AND ‘50 Business Card Design Ideas for the Reverse, Back, or Verso Side of Your Business Card!’ Ask for it; you’ll be glad you did….GFA

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Landlease Community Real Estate Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

Blog # 202 Copyright 2012 8 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

Help Me Write a New Book For You!

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YOUR Mini ‘State of MHIndustry & LLCommunity Asset Class’

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How Many New HUD Code Homes to be Shipped During 2012???

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I.

Help Me Write a New Book For You!

Tentatively titled, a Book of Formulae, Rules of Thumb, & Helpful Measures, it’s truly been ‘decades in the making’. How so? Written into most of the ten books I’ve authored, co – authored, and edited during the past 33 years, have been a bevy of mathematical formulae, some rules of thumb, and a few helpful measures sprinkled in along the way. The thought recently occurred to me, ‘Why not pull all these together, along with some unpublished gems, and put them between two covers of a new resource for my friends in the manufactured housing business?’

Well, that’s gist of the first half of today’s blog posting. Asking YOU, during this coming week, to articulate and send me your favorite and favored formulae, rules of thumb, even proprietary measures, useful to landlease community ownership and operation, as well as HUD Code manufactured housing fabrication and retailing, commercial real estate investment and valuation, housing affordability, realty – secured mortgage origination, even chattel (personal property) lending. And every contribution you suggest or make, that isn’t already described and explained in the galley DRAFT of this manuscript, will be attributed to you by name, unless you indicate otherwise.

Here’s the preliminary Table of Contents, as it exists today:

• Landlease community statistics, property valuation, operations & property management

• HUD Code manufactured housing statistics & new/resale housing price point calculation methodology

• Commercial real estate investment & valuation

• Housing affordability

• Realty mortgage origination

• (Chattel or personal property lending) Nothing on this subject yet.

• Appendix: Official Glossary of Manufactured Housing & Landlease Community Terminology (3rd edition)

OK, with all that said, what formulae, rules of thumb, and or measures, might YOU contribute to this ‘first time ever collection of formulae, rules of thumb, and helpful measures’ relative to our industry and asset class? Let me know via email: gfa7156@aol.com or MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764; or best of all, forward your printed or typed thoughts to GFA c/o Box # 47024, Indianapolis, IN. 46247 or fax via (317) 346-7158. And it’s important you get this information to me this week, 3 – 9 July 2012, as the final editing process begins in a couple weeks.

Planned debut of this new ‘book of numbers’? Our goal is to have it ready for FREE distribution to everyone attending the 21st annual International Networking Roundtable, in San Diego, CA., on 12 – 14 September 2012. As networking roundtable alumni know, there’s always at least one gift, usually of a pretty unique nature, for everyone who shows up at this 2 ½ day gala educational, networking, and deal – making event. Well, this year it appears there’ll be at least two gifts! If you recall, well known author and humorist, Richard Lederer, will be luncheon speaker and entertainer on Thursday. He’s bringing along copies of his book, Presidential Trivia, for distribution to all Roundtable attendees! And if you want to get a foretaste of Richard’s humor, pick up a copy of The Gift of Age.

So, think about it. Are there formulae, rules of thumb, even proprietary measures, you’d like to see included in this new ‘book of numbers’, designed for use by landlease community owners/operators, manufactured housing aficionados, commercial realty investors, affordable housing enthusiasts, and lenders? If so, describe same, along with an example of application(s), and get it into the mail, email, or faxed to me this week!

II

YOUR Mini ‘State of MHIndustry & LLCommunity Asset Class’

Part 2 of 2 Parts

Last week’s blog posting (#201) covered the first half the ‘State of the MHIndustry & LLCommunity Asset Class’ presentation I regularly share, almost monthly, with various business, trade advocacy, and Realtor® groups across the U.S., and sometimes Canada. If you missed it, go to the web site, community-investor.com, then left click on the Blog icon, and scroll back just a little ways into the archives till you find it, headed: ‘State of the MHIndustry, & Affordable Housing Interest?’.

This week’s blog posting (#202) covers the second half this ‘State of the MHIndustry & LLCommunity Asset Class’ business model(s) overview.

Here we pick up on the landlease (f.k.a. manufactured home) community half this ‘double dual industry’ intra – relationship. *1 First the basic statistics. It’s estimate there’re 50,000+/- landlease communities throughout the U.S., and about 1,300 more in Canada. Of that amount, an estimated 85 percent are properties containing 100 and fewer rental homesites, or sites, apiece; 78 percent in Sunbelt regions like CA & FL. According to the 23rd annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators in North America!’*2), there’re 500+/- property portfolio owners/operators active today in this realty asset class. And the average portfolio contains 27 landlease communities (including an increasing number of mixed use, i.e. MH & RV sites, properties), and average property contains 219 rental home and or RV sites.

What’s a landlease community portfolio owner/operator? Anyone, whether a sole proprietor, partnership, private or public corporation, or real estate investment trust (‘REIT’) who owns and or fee manages a minimum property portfolio comprised of five or more landlease communities, or simply, more than 500 rental homesites in one or more such properties.*2

So, why are we referring to this unique type income – producing property as a landlease community today, rather than manufactured home community, or ‘mobile home park’? Simple. Today, it’s become almost routine to identify as many as six different forms of housing sited in this type ‘improved’ leased land multifamily property; being:

• Continued presence of pre – 1975 ‘mobile homes’

• New and resale post – 1976 ‘manufactured homes’

• One and two story modular homes in high density and high land value locations

• ‘Park model RVs’, or homes less than 400 sq. ft. in size. Also known, in HUD circles, as Accessory Dwelling Units or ADUs; and, ‘granny flats’ in trade lingo. Think of them as ‘1BR1B efficiency apartments on wheels’. They’re near ideal for siting on functionally – obsolete rental homesites, often characteristic of older landlease communities; and, where there’s a strong demand for Seniors housing.

• ‘RVs for a season’, where allowed, e.g. Rio Grande Valley in Texas and elsewhere

• Stick – built homes constructed to look exactly like HUD Code homes (Florida)

But understand; we’re dealing here, with a multifamily rental housing property type that, for as long its’ 50,000+/- properties exist, will always be variously known and referred to, given the characteristics of the host local housing market, as landlease communities, manufactured home communities, mobile home parks, even trailer parks & camps.*3

So, what contemporary landlease community trends are afoot today? They’re many. So let’s begin with how national ‘Advocacy, Research, & Resources’, for this property type, are presently handled. For starters, national political and regulatory agency ‘advocacy’ is, and has been handled for the past 16 years, by the Manufactured Housing Institute’s National Communities Council (‘NCC’) division, headquartered in Arlington, VA. If you’re reading this, and own/operate one or more landlease communities, you owe it to yourself and your peers, to join and participate as a direct member of MHI’s NCC. To do so, phone Bruce Savage via (703) 558-0666 & 0678.

Earlier this year, the Center for Manufactured Housing Studies or CMHS, was formed as a new, national not for profit entity, to shoulder the ‘research’ needs of landlease communities (Think aforementioned ALLEN REPORT, etc..), HUD Code manufactured housing, and affordable housing. And in time, it’s envisioned CMHS will become the long – awaited and much – needed Think Tank of our ‘double dual industry’. Want to become involved on the ground floor of this exciting initiative? At present, we’re simply collecting names and contact information from seriously interested business owners and corporate executives who understand how much an independent, third party ‘research’ entity can do for our industry and asset class. Contact me via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. No commitments solicited at this time.

And as you likely know, comprehensive ‘resource’ servicing, for the entire asset class, has long been handled by GFA Management, Inc., dba PMN Publishing. Virtually all How To information, portfolio news, and property type – related communication; as well as professional property management training and certification (e.g. Manufactured Housing Manager® or MHM® designation), along with national education, interpersonal networking, & realty deal – making, have been handled in this fashion for three decades. But also know, ‘change is in the wind’, and maybe by this time next year….

The biggest trend evolution during the past 30 years, besides property ownership consolidation (e.g. from 25 known portfolio owners/operators in 1989, to 500+/- in 2012), has been the willingness – by necessity, to preserve physical and economic occupancy – of property owners to 1) BUY NEW manufactured homes direct from factories*4, 2) SELL THEM, as well as resale homes, on – site; and 3) when necessary, engage in on form or another of SELF – FINANCE of said on – site transactions*5, whether via contract sale’, ‘captive finance’, lease – option; or lately, with the intrusive presence of the S.A.F.E. Act and provisions of the Dodd – Frank Law, simply as rental units.

Professional property management, as much as we’d like to see it ‘really take root’ throughout the landlease community real estate asset class, simply hasn’t! Sure there’re 225+/- Certified Property Manager® members of the prestigious Institute of Real Estate Management who claim affinity, on IREM’s website, with the property type – but few CPM®s are day to day practitioners. And yes, there’re nearly 1,000 MHM®s that have been trained and designated during the past decade, but only 200+/- Accredited Community Managers® (or ACM®s), the latter via auspices of MHI’s Manufactured Housing Educational Institute. Want to prove this paucity in PM credentials to yourself? Review any list of public and private portfolio firms active in this unique, income – producing property type, and observe which executives have been trained and certified as CPM®s, MHM®s, ACM®s, even CCIM®s. Why is this an important shortfall to identify and, in time, correct? Because such specialized training and formal certification, followed by on – the – job application of professional property management principles and practices, is the first major step in addressing the perennial, negative, public image issues presently plaguing HUD Code manufactured housing and landlease communities from coast to coast! So, are you trained and certified as a professional property manager of landlease communities? Do YOU understand and apply professional property management principles and practices in the daily ownership or supervision of your landlease community and or portfolio thereof? *6

Past, minor, and maybe long term miscellaneous trends? Little to no new raw land development – into – landlease communities is occurring today, other than in oil shale ‘fracking’ regions. ‘Park closures’ are pretty much a thing of the past, at least until commercial real estate values ‘reset’, and ‘highest & best use’ of functionally obsolete landlease communities is once again viewed as being big box retail store parking lots. While long term leases were, and in some places continue to be, ‘all the rage’ among some very large property portfolio owners/operators and tenant activist groups, in some local housing markets across the U.S., the verbal, 30 day lease continues to be preferred by many landlease community homeowner/lessees. And almost everyone knows today’s meaning of the acronym ROC; specifically, ‘Resident – owned community’! In ‘years past’ however, the acronym was the name of a popular property portfolio firm. Remember ROC Communities? Recall what the letters ROC stood for? *7

Where do we go from here? That’s pretty much up to you. As you might suspect, there’s quite a bit more information that could be conveyed, than what’s contained in this two part ‘State of the MHIndustry & LLCommunity Asset Class’!’ But for blog space purposes, I’ve had to scale it back quite a bit. Want to learn more? Read on….

The point is this. If you’ve not heard some, even much of this information before, contact your state’s MHAssociation executive AND chairman of your association’s board of directors or governors, to suggest this sort of comprehensive presentation would be ‘good and needed fodder’ for your group’s next annual meeting, or even before then. Frankly, I work inexpensively, requesting my travel and hotel expenses be covered, along with a voluntary honorarium. Interested? I hope you are. Phone (317) 346-7156.

III.

How Many New HUD Code Homes to be Shipped During 2012???

We’ve just learned of key data suggesting 64,500 new HUD Code homes might be shipped during all of year 2012. If that happens, it’ll be a 25 percent increase above the 51,618 new HUD Code homes shipped during year 2011. AND, if that 25 percent increase holds true, the ‘next pithy question’, in this industry observer’s mind, will be: ‘What percentage of that increase in shipment volume can be attributed directly to ‘fracking’ projects in various regions of the U.S.? AND, will said production stimulus continue for ‘how many years?’ OR, will it be short lived, and in time, be synonymous with the (hurricane) Katrina factor of nearly ten years ago (i.e. 2005 & 2005)?

Next week we’ll share the key data and calculation methodology used to craft the previous paragraph.

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End Notes.

1. Double dual industry. Which is to say/write: HUD Code home manufacturing & distribution (i.e. inclusive of independent ‘street’ & company store MHRetailers) AND landlease community development & investment (i.e. though, of late, ‘investment & operations’ is a more accurate description of the latter half the ‘double dual industry’ relationship. GFA

2. ALLEN REPORT is published as a free lagniappe in the January issue of the Allen Letter professional journal. If you’d like a copy of the 23rd edition, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 & subscribe to the Allen Letter. If you or your firm, owns/operates five or more landlease communities and or more than 500 rental homesites, and are not included in this year’s list of 127 ‘major players’, phone the same number and ask to be included in the 2013 report, to be researched during September & October of 2012.

3. If you’d like to order a copy of a book, for $10.00, that covers this subject in more detail, call the above – reference MHIndustry HOTLINE, and ask for Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, PMN Publishing

4. Often ordering Community Series Homes designed and built with features that increase the durability of these homes. For a list of CSH features, and the Business Development Managers & HUD Code manufacturers who specialize in CSH models, phone the above – referenced MHIndustry HOTLINE.

5. Mortgage $ now carried by landlease community owners/operators, on homes they own and finance, on – site, has skyrocketed from an unknown few million dollars at the turn of the century to $ 3 ½ billion in year 2009, and up to $5.2 billion by end of year 2010. No upward or downward movement of $ in 2011.

6. For CPM® training & certification, phone (312) 329-6000. For MHM® training & certification program alternatives (i.e. classroom & correspondence course), phone (317) 346-7156. For ACM® training & certification training, phone (703) 558-0666 or 0678.

7. ROC: River Oaks Communities, a.k.a. ROC Communities; eventually merged with Chateau Properties, to become the REIT, Chateau Communities, Inc.

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry, the Landlease Community Real Estate Asset Class, &
Affordable Housing Purists & Enthusiasts Nationwide

Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

Blog # 201 Copyright 2012 1 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

State of the MHIndustry, & Affordable Housing Interest?

I.

YOUR Mini ‘State of MHIndustry & LLCommunity Asset Class’

Part 1 of 2 parts

Every new home built in the U.S. today is fabricated, wholly or in part, within a factory! That’s right; modular home modules and HUD Code manufactured homes of singlesection and multisection configuration, are assembled in climate – controlled environments and production line fashion, drawing from inventories of lumber, appliances, and other building materials purchased in cost efficient bulk fashion. Panelized home and production (site) builders routinely use building components (e.g. exterior & interior wall panels; pre – hung windows & doors; roof, ceiling & floor trusses, to name a few) also fabricated in factories, then trucked to job sites for installation at appropriate times, during the erection and completion of these otherwise ‘stick – built homes’. *1

HUD Code manufactured housing in particular; what’s going on with that 5% market share segment of factory – built housing these days? In terms of new home shipment volume, not much. Back in 1972, the (then) mobile home industry shipped 575,940 new homes throughout the U.S.; and in 1998, at the peak of a short lived mini – renascence, 372,843 (now) manufactured homes. During recent years 2008 thru 2011, we’ve suffered through an average of 50,000+/- homes shipped annually. The future? With exception of regional shipment ‘hiccups’ due to natural gas fracking – spawned quick housing needs (reminiscent of the Katrina hurricane home replacement factor of a few years ago), not very bright. And it won’t likely improve significantly, until hundreds of thousands of devalued site – built homes are resold, chattel (personal property) financing returns en masse’ to manufactured housing, and many credit – worthy prospective homebuyers rediscover HUD Code manufactured housing and its’ landlease community lifestyle. *2

Even with all that said; according to the U.S. Census Bureau, in year 2010, 72% of all new homes priced below $125,000 were manufactured homes, with an average sale price, the following year, of $64,000.00. These stats alone suggest HUD Code manufactured housing continues to be the single most affordable, non – subsidized, high quality, energy efficient housing type available in the U.S. today! But does the federal regulatory agency, tasked to administer the federally preemptive HUD building code we operate by, market our affordable housing product as such? NO. Why? Ask them! And frankly, there’s more to this ‘affordability’ issue, and it’ll be covered in a coming paragraph.

So, what’s happening Today? Some, but certainly not all, HUD Code home manufacturers have segued from the Development Series Home (‘DSH’) designs (a.k.a. More ‘homelike’ & ‘big box = big bucks’! mindset) of the late 1990s & early 2000s – when ‘our housing bubble burst eight years ahead of the site – builders collapse’, to the smaller, less expensive 3BR2B Community Series Home (‘CSH’) designs (i.e. fabricated with durability – enhancing features like linoleum in key utility areas, non – plastic sinks & tubs, wood cabinetry, laminated flooring in lieu of carpeting, and more…) for siting in landlease communities. Today, CSH model HUD Code homes are marketed by Business Development Managers, a new job title and description for staff trained to sell directly to landlease community owners and property portfolio operators. *3

A continuing, unresolved conundrum for HUD Code manufactured housing exists in the manner in which national advocacy is handled, some say mishandled. A few large home manufacturer members of the Manufactured Housing Institute (e.g. Clayton, Champion, Cavco, et. al.) command the lion’s share of the national housing market for this type factory – built housing, and by dint of their dues contributions (i.e. floor fees), control the institute. MHI is also ‘home’ to all remaining segments of the MHIndustry, including the landlease community realty asset class. *4 At the same time, in our nation’s capitol, a larger number of smaller, mostly regional HUD Code home manufacturers are aligned with the Manufactured Housing Association for Regulatory Reform. The conundrum? How to effectively and routinely focus two disparate membership bodies on ‘best advocacy practices’ for the MHIndustry, when MHI is viewed, in this observer’s opinion, as being routinely conciliatory, and MHARR routinely confrontive, when it comes to interfacing with federal legislators and regulators of all stripes? Until that matter is ‘someday and effectively resolved’, the legislative powers in Washington can be expected to regularly play one side off against the other, to the detriment of all of us.

Another ongoing challenge to the hoped – for eventual return to widespread prosperity in the MHIndustry, is the continuing lack of a secondary or resale market for our unique housing product! This is a multifaceted challenge that involves home valuation (e.g. As long as federal agencies express their preference for ‘replacement and book value’ appraisals, we will not approach parity with site – built housing); lack of general access to multilist services enjoyed by Realtors®, despite U.S. Supreme Court ruling against exclusion in 2009. *5; reluctance to having our salespersons licensed; and, resistance to the escrowing of ‘closing’ funds.

And while we’re at it, might as well mention National Image Building & Housing Product Advertising. ‘Everyone else, it seems, does it’! Automobile manufacturers image build and brand advertise on a national scale; major homebuilders – when not in an economic slump – do likewise regionally. Why don’t ‘we’ do it at all? Oh, the excuses do abound, e.g. ‘Too much bad image to overcome!’ & ‘If all home manufacturers don’t participate in funding the ad program, my firm will end up subsidizing home sales for my competitors!’ & on & on). The dual core reasons for image and advertising inaction, in this observer’s opinion, are perennial corporate self – interest and lack of national leadership clout!

Why haven’t national federal regs, regarding home installation and dispute resolution; as well as Dodd – Frank legislation, and the like, been mentioned thus far? Because, for the most part, they remain in a state of flux. The former, ‘for years’ now (i.e. federal law in place, state regs codified, but enforcement mechanisms remain unfunded in states faced with severe fiscal challenges); the latter, apparently just now preparing to launch out into the hinterlands, looking for trouble to right and people to fine. Maybe next time around there’ll be substance to describe, but then again, maybe not…

Finally, the concept of ‘affordability’. Mention of which was made earlier in this mini – State of the MHIndustry message. But sad to say, ‘affordability’ is not the industry hallmark it once was, but still should be, even with a couple notable exceptions. Housing Affordability, in this observer’s opinion, has dissipated within the 1) manufacturing, 2) lending, 3) home retailing, and 4) landlease community segments of the MHIndustry! How so?

• Where home manufacturers are concerned, their obvious reluctance to move decisively away from the ‘big box = big bucks’ business model of the past (Observe the mix of DSH & CSH models next time you visit a MHTrade Show where new homes are exhibited!) and embrace the market’s need for smaller, less expensive homes.

• Where MHRetailers and 3) chattel lenders are concerned? Dire abuse of the 30% Housing Expense Factor or HEF (Where ‘a maximum of 30% of a homebuyer’s annual gross income, or AGI, should go to pay for their home and its’ annual utility bills, not including telecom services’). Homebuyers have been routinely encouraged to buy more home than they can truly afford! Here’s how. Instead of specifying 30% of their AGI (monthly) HEF be set aside (budgeted) for PITI (mortgage principal & interest, taxes & insurance) and utility bills collectively – as should be the case; we’ve engineered the entire 30% of AGI (monthly) HEF to be applied to PITI alone; on one hand enabling ‘their purchase of more house than they can afford’, and at the same time, forcing the homebuyer to pay his/her utility bills ‘in addition to’ said 30% HEF. End result, besides buying more house than they can afford? Setting them up to pay as much as 40 – 50% of their AGI for housing costs!

• And this ‘abuse’ becomes even more stringent when a new or resale home is sited in a landlease community where site rent has been raised out of sync with other single and multifamily housing alternatives in the same local housing market! There are several ways to estimate and quantify this balance and imbalance.*6

• Exceptions to this fourfold housing ‘affordability’ dissipation? There’re two. Manufactured housing’s ‘per square foot cost’ continues to be 50%+/- of site – built housing (not including value of underlying realty) cost; and some, if not many, landlease community owners today, routinely buy new HUD Code CSH model homes, directly from factories, to sell and self – finance on – site, at well below retail prices, including freight and set – up costs. Surprised? Don’t be.

This concludes the first part of this two part Mini – State of the MHIndustry & LLCommunity Asset Class.

***

II.

Affordable Housing Purists & Enthusiasts Nationwide

There’s a new tagline, a third focus to my consultancy business signature these days. In addition to being Consultant to the Factory – built Housing Industry, and Landlease Community Realty Asset Class, I’ve long been, and am now publicly aligned, with Affordable Housing Purists & Enthusiasts Nationwide!

What’ s this mean? As I recently penned in correspondence to the ’18 New Pioneers & their Advisors’, “this is a nod to where I believe some of my post – landlease community consulting/publishing attention and effort will be focused’:

• It’s already one of three academic research foci for the new Center for Manufactured Housing Studies (‘CMHS’), the other two being ‘manufactured housing’ and ‘landlease communities’, e.g. maybe future ALLEN REPORTS.

• Remember the 2008 booklet, HOUSING AFFORDOGRAPHY, the ‘Study of Affordable Housing Formulae & Measures of Housing Affordability’? Not only did this publication ‘sell out’ by year end 2008, but it also spawned the popular ‘Ah Ha! & Uh Oh! Worksheet’, now used by HUD Code home manufacturers (i.e. ‘company stores’), independent ‘street’ MHRetailers, and in – landlease community home sales and self – finance operations. It’s time for a new and expanded edition of that book. *6

• I’ve been recruited to participate in a journalistic effort to retrieve ‘affordable housing’ from its’ near exclusive, some say hijacked, use by the low income shelter folk, returning it to meaningful utility by housing writers, academics, users and providers across the broad pricing spectrum.

Just wanted you to know. And if YOU too, have a significant and abiding interest in ‘affordable housing’, from theoretical, practical, and or academic perspectives, be sure to let me know. I’ll include you in a new and exclusive data base of affordable housing – minded businessmen and women across the U.S. today! *6

***
End Notes.

1. Production (site) builders, panelizers, HUD Code manufactured housing, and modular homes are the four descriptive terms given these types of factory – built housing by Don Carlson, publisher of Automated Builder magazine, and ‘Factory – built Housing Man of the Century’ (in year 2000)

2. Virtually every other segment of the new housing ‘keeps score’ based on volume of homes ‘sold’, not ‘shipped’. And the MHIndustry has only itself to blame for the departure of chattel financing, as well as near demise of independent ‘street’ MHRetailers (i.e. via their chasing the siren song of land & home package competition with site – builders, and home manufacturers buying – up and converting MHRetailers into ‘company stores’.

3. CSH and BDM innovations a direct result of HUD Code home manufacturers and landlease community owners/operators meeting together, for the first time ever, at the RV/MH Heritage Foundation’s Hall of Fame facility, museum & library in Elkhart, IN. @ 2/27/2009.

4. Non – manufacturer segments of the HUD Code manufactured housing industry: OEM & other suppliers, finance, state MHAssociations, LLCommunities, and MHRetailers. To join MHI as a dues – paying, direct member, phone Dick Jennison via (703) 558-0678.

5. United States of America (plaintiff) vs. Consolidated Multiple Listing Service (defendant). Case No. 3:08-CV-01786-SB. Judge Sol Batt, Jr.

6. For formulae and Rules of Thumb for determining whether site rents are indeed ‘in sync’ with other housing options in the same local housing market, and How To calculate new & resale housing Price Points using AGI, and AMI (Area Median Income) per postal zip code, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156 or visit community-investor.com

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
Landlease Community Real Estate Asset Class, &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

I.

200 Consecutive Weekly Blog Postings & Going Strong!

Manufactured housing industry’s first blog posting occurred 27 August 2008, nearly four years ago, as an adjunct to now defunct Manufactured Home Merchandiser magazine. Today, this 200th blog posting, by the same blogger, will be read by 1,000 manufactured housing industry leaders and landlease community owners/operators! So, what was ‘industry and realty asset class news’ as reported in blog # 1 back then?

An account of ‘leaders’ LEAVING, via retirement and otherwise (though some returned), our ‘double dual industry’ (i.e. housing production/distribution & realty development/investment), e.g. Barry McCabe; Brian Fannon, CPM® (returned); John Diffendal, analyst at BB&T; Michael O’Brien, CAE® at MHI’s National Communities Council; Peter Scherer (returned);Alan Goss, analyst at Bond Street Capital; Franz Fisher; Andy Pecqueur; and, Allen Crittenden mothballing his MH newsletter, again.

And a few returnees, to MHIndustry & LLCommunity leadership positions, some temporarily, others still around today. James Ayotte now exec at FMHA in Florida; Jim Grange of ROC & Chateau renown, now with YES! Communities; Craig White, ACM® realty brokering in KS; John Rogosich, CPM® back with Choice for awhile (Since then however, taking over leadership helm at MHPI in Chicago); and a wholly new face, Mary McBrady, MHM® leading the Massachusetts MHAssociation.

Plans were being laid at the time, for a second National State of the Asset Class (‘NSAC’) caucus, to build on what had been accomplished earlier, on 2/27/2008 in Tampa, FL. This time around, however, on 2/27/2009 (then, still six months into the future), the NSAC caucus would become a summit meeting involving 100 HUD Code home manufacturers and landlease community owners/operators, convening at the new RV/MH Heritage Foundation museum, library and Hall of Fame facility in Elkhart, IN.. At that venue, the concepts of specially – designed Community Series Homes (‘CSH’) and specialty Business Development Managers, selling into landlease communities, would be birthed!

Blog # 1 also announced the debut of the book HOUSING AFFORDOGRAPHY, ‘Study of Affordable Housing Formulae & Measures of Housing Affordability’, released by PMN Publishing two months earlier, in June 2008. Destined to be ‘sold out’ before the end of 2008 – and not reprinted to date, the legacy of this book would be the popular – but – strangely – named, ‘Ah Ha! & Uh Oh! Worksheet’ it spawned! The worksheet features simple methodology, using starting points of AGI or Annual Gross Income (of a prospective homebuyer or family) and AMI or Annual Median Income, for a local housing market defined by postal zip code, to estimate maximum recommended ‘affordable’ & ‘risky’ purchase prices (i.e. Price Points) for new and resale, privately – owned homes of any type, sited on realty owned fee simple along with said home; or on leased ground, as in a landlease community! *1

Well, there’ve been 199 weekly blog postings since then! During the past (nearly) four years, targeted readership has grown, following the demise of aforementioned Merchandiser magazine (during 2009), to 1,000 specific MHIndustry leaders and LLCommunity owners/operators!

II.

Response to Meeting of ’18 New Pioneers’ Continues…

“I really believe George, if your function (‘comprehensive resource servicing’ for landlease communities nationwide) is absorbed by one or another national (trade body), it will disappear.” RH *2

“When are you ‘post production’ (a.k.a. ‘aftermarket’) folk going to finally understand that you’ll only realize effective advocacy in Washington, DC., when you’ve a trade association dedicated to your unique (Presumably realty and chattel finance. GFA) business needs, and not be distracted by the often different agenda, issues and priorities of home manufacturers?”

III.

Here it is! 21st Mortgage Corporation’s C.A.S.H. Program!!!!!!!!

Are YOU familiar with 21st Mortgage Corporation’s C.A.S.H. in – community home finance program? Here’re some highlights from a handout prepared by Spencer Roane, MHM® of Pentagon Properties, that he shared at the aforementioned ’18 New Pioneers’ meeting:

• Designed to be a symbiotic relationship between the chattel finance lender and qualified landlease community owner/operators

• 21st Mortgage Corporation is the buyer and assists the landlease community owner/operator as ‘seller’ of the new manufactured home (only homes from the Clayton family of brands, at this point in time), as well as the lender originating the mortgage with the actual home buyer

• LLCommunity owner/operator is NOT required to hold S.A.F.E. Act licenses

• NO up – front cash outlay by the LLCommunity owner/operator (21st Mortgage Corporation pays for the home and all installation contractors)

• LLCommunity owner/operator pays part of the site rent collected from the new homebuyer, during the first five years. This amount is credited as additional principal payments on the home buyer’s mortgage

• Under this 10 percent/year program (lower interest rate possible with larger down payment and better credit score), the 15 year home mortgage is paid off in less than 10 years

• LLCommunity owner agrees to buy the home, for the amount of the mortgage balance, or assume mortgage, if home buyer defaults.

Sound too good to be true? Well, it’s not, as far as I can tell. SO, if you’re interested in filling vacant rental homesites, with New Homes, in your landlease community(ies), and your monthly rental homesite rent is at least $150.00, and you’re willing to participate in helping your home buyer/homesite resident pay off his/her mortgage five years sooner, you might want to contact Lance Hull at 21st Mortgage Corporation, via phone at (800) 955-0021 X 1218 or via email at lancehull@21stmortgage.com. *3

This is not a blanket endorsement of the C.A.S.H. Program; rather, simply letting you know of what appears to be the most creative and helpful chattel finance program to support our industry and asset class in many years.

IV.

21st annual NETWORKING ROUNDTABLE on the horizon!

Not a day passes anymore, that at least one completed registration form, for this year’s International Networking Roundtable, doesn’t arrive at our offices by U.S. mail, fax, email, even delivered ‘in person’. We’re already 25% of the way to our ‘maximum number of participants’ cutoff total; so, if you haven’t yet registered, Do Not Delay Doing So. Either Open and Print off the Roundtable brochure attached to the BEBA (Blast Email Blog Alert) memo that brought this 200th blog anniversary posting to your attention, or phone the MHIndustry HOTLINE and request one (See end note # 1 following).
This year’s Roundtable is being held, once again, at the beautiful Hilton Hotel Resort & Spa on Mission Bay, just North of downtown San Diego, CA., just minutes from the airport. Frankly, I can’t think of a more information – packed, even exciting agenda of manufactured housing and landlease community – related topics offered anywhere, anytime. Can you? There’re at least 21 ‘features’ at this year’s gala event! Not only superb presenters and interesting panels, this year, but a Modular Lifestyle Home on display, and widely known author and humorist Richard Lederer, on hand, to ‘educate & entertain us’ during one luncheon – and maybe even hanging around that evening to teach some of the finer points of poker.

Given the remote chance you’re reading this blog posting, and don’t know what the International Networking Roundtable is all about, let me ‘splain’. From the beginning (1991), this has been the Only National Venue designed exclusively to serve the education, interpersonal networking, and deal – making needs of (then) manufactured home community and (now) landlease community owners/operators nationwide! It’s also the sole national venue where most of the active realty lenders and mortgage brokers rub shoulders with property owners likely in need of acquisition financing and refinancing of existing real estate mortgages. And frankly, as is pointed out year – after – year, ‘anyone who’s anybody, in the landlease community real estate asset class, is present at the Roundtable’. SO, if that describes you, get your registration in today, and travel to San Diego, 12 – 14 September, prepared to learn, network, and negotiate with the very best in the business!

***

End Notes.

1. For a FREE ‘Ah Ha! & Uh Oh! Worksheet, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

2. What ‘comprehensive resource servicing’ are we talking about here? In part, the annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’); two subscriber – supported monthly business newsletters; the Manufactured Housing Manager® or MHM® professional property management training & certification program; annual International Networking Roundtable and periodic FOCUS Group meetings; books, forms, and directory sales; and a dozen Signature Series Resource Documents (e.g. annual National Registry of Lenders, ‘Who Ya Gonna Call in 2012?’ list of freelance MHIndustry & LLCommunity consultants, and ten more titles.

3. For a copy of the four page handout, from which this material was extracted, phone Spencer Roane, MHM® via (678) 428-0212 or me, via the MHIndustry HOTLINE cited in end note # 1.

George Allen, CPM®Emeritus, MHM®Master, Box # 47024, Indpls, IN. 46247

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, are the real estate component of manufactured housing.’ GFA.

‘Landlease Community Owners Meet, Provide Direction for the Future!’
Special Announcement for LLCommunity Owners/operators Nationwide…

“This time next year, expect to see, hear & network with someone else – or for a short time, someone beside me, where ‘comprehensive resource servicing’ is concerned. And don’t be surprised if there’s a new or existing ‘for profit’ OR ‘not for profit’ entity involved, operating akin to GFA Management, Inc., dba PMN Publishing (i.e. publisher of the Allen Letter professional journal, 23rd annual ALLEN REPORT, etc.) today. In any event, there’ll likely be a new face and existing or new national platform, providing ‘all the resources needed and routinely used by LLCommunity owners/operators nationwide’, maybe even including Canada.” GFA

So reads the opening paragraph of the feature story in the July 2012 issue of the Allen Letter professional journal, summarizing the 12 June meeting of the ’18 New Pioneers’, at SaddleBrook Farms in Grayslake, IL. If you’re a subscriber, you’ll learn about the perennial resources in play, WHO met and ‘brainstormed’ alternatives affecting 50,000+/- landlease communities nationwide, and HOW all this will likely impact your business future! It’s a story you don’t want to miss. And if you’re not a subscriber, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 (AL = $134.95/year).

With that said, not everyone was pleased with the outcome of this historic meeting. Some expected more, much more, and in a different direction. For example, this communiqué from a participant shortly after the meeting:

“I appreciate your efforts organizing the event held Tuesday at SaddleBrook Farms. Here’s some candid feedback. I was extremely disappointed in the outcome. I envisioned something quite different. Labeled as ‘Pioneers’, I thought we were going to build on the tremendous work you have done for so many years, and begin development of a more comprehensive industry resource – finally, a bona fide analyst firm, or respected Think Tank, providing a unifying factor to a very disparate industry and realty asset class!”

“What we got was a recommendation we need to find a replacement for you. Something we all knew before arriving at SaddleBrook. We could have saved ourselves a lot of time and money.”

“But I’m not writing to pass blame or complain. What occurs to me is that the outcome is somewhat systemic to our industry as a whole. The manufactured housing industry simply doesn’t think ‘outside the box’. It doesn’t take itself seriously. It doesn’t like to break from tradition. My opinion is that the traditions of this industry are not all that glamorous, so let’s get over it. Look folks, we are offering a very valuable product – affordably priced housing. A product that everyone agrees should experience a skyrocketing demand in the near future. If we want to succeed, we need to take ourselves seriously, and provide a layer of sophistication to those watching our industry. Although Tuesday wasn’t ‘the answer’, perhaps it’s the beginning of a ‘call to arms’.”

“I am willing to dedicate some time to this effort, but firmly believe it needs to incorporate an eclectic group of committed individuals, from several key sectors of the industry and asset class, with equity interest in their respective businesses. Not really concerned whether this is a ‘not for profit’ Think Tank entity, or a ‘for profit’ one.”

That being said, those comments and recommendations deserve a thoughtful rejoinder. First off, many of us in the landlease community business agree, ‘analyst’ & Think Tank entities are long long overdue, where HUD Code manufactured housing and our unique type income – producing property type are concerned! Second; a Think Tank – like focus was indeed what some founding members had in mind, when the Urban Land Institute’s Manufactured Housing Communities Council was formed in 2004. Unfortunately, that goal was never fully realized, though the MHCC continues to convene when the ULI meets semi – annually. And thirdly; as far as the need for an ‘analyst’ entity is concerned, that’s half the reason for founding the Center for Manufactured Housing Studies this year – to engage in ‘research’ & ‘analysis’ of manufactured housing & landlease community statistics & related data! Know what? My guess (hope), is that once the CMHS has its’ director in place, funding is secured, and charter set, IT will become the long – awaited and much needed industry/asset class Think Tank and ‘analyst’ the writer presently and rightly laments!

So, you’ve just read the tantalizing introduction to next month’s feature article in the Allen Letter professional journal; how can you not want to read the rest, and learn ‘how’ you’ll benefit from ‘comprehensive resource servicing’ in the future? Plus, you’ve just read, how as an industry and asset class, we’re finally ‘scratching the surface’ of enabling Think Tank and ‘analyst’ presences, to serve the manufactured housing and landlease communities nationwide! But frankly, none of this will likely and fully occur until YOU are willing to step forward, just as the anonymous writer expresses his interest, and become an integral part of the organizing, participatory, and funding process. If that final statement describes YOU, then let me know by phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or email: gfa7156@aol.com

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

Perspective: ‘Landlease communities, a.k.a. manufactured home communities, are the real estate component of manufactured housing.’ GFA

It’s Important You Know & Understand What’s Going On!

&

‘Ad & $ Duo’ in Georgia Maybe Precursor for Rest of U.S.

The following paragraphs address ‘national political advocacy’ in behalf of, and ‘comprehensive resource servicing’ for, the owners and operators of an estimated 50,000+/- landlease communities throughout the U.S. today….

&

If you missed the GMHA meeting in Atlanta, on 1 June, then read this….

I.

Will ‘national political advocacy’ and ‘comprehensive resource servicing’, for landlease communities ‘of all sizes’, continue as practiced today; grow in size, scope and influence; or maybe, actually begin to die by the end of year 2012? That is the timely, pithy, and multifaceted question before two bodies today, this week, and during the months ahead. That’s how serious this matter is!

The Manufactured Housing Institute’s (‘MHI’) National Communities Council (‘NCC’) division, at its’ annual Legislative Conference, in Arlington, VA., during February of this year, acknowledged, via its’ large property portfolio – dominated executive committee, a far better job must be done, to attract small and mid – sized landlease community owners/operators, to become direct, dues – paying members of the NCC! A likely consequence of NOT growing council membership soon, might be inability to function as an effective, broad – based, national political advocate for 50,000+/- income – producing landlease communities nationwide. To join the NCC, phone Bruce Savage at (703) 558-0666. Tell him, ‘George sent me!’ Seriously.

Then there’s the ’18 New Pioneers’ meeting occurring at SaddleBrook Farms in Grayslake, IL., this week, 11 & 12 June 2012. This timely and pivotal national venue will be attended by nearly 20 successful landlease community ‘owners’ from a dozen states, along with a few key advisors. They’ll focus their attention on ‘comprehensive resource servicing’ of landlease communities nationwide; and, whether the present, perennial, helpful practices should continue in ‘for profit’ fashion, become an altogether new ‘not for profit’ national realty asset class entity – similar to the Institute of Real Estate Management® or IREM®, or craft a unique, practical working combination of both perspectives, including an academic element. By way of review, ‘comprehensive resource servicing’, as it exists today, for landlease community owners/operators includes:

• business statistics gathering & distribution via annual ALLEN REPORT & nearly a dozen additional Signature Series Resource Documents or SSRDs

• professional property management education & certification, e.g. Manufactured Housing Manager® or MHM® program, with nearly 1,000 MHM®s to date.

• print & online communication & publishing, including the Allen Letter professional journal & the Allen CONFIDENTIAL! business newsletters, textbooks ‘for sale’, and this weekly blog posting at community-investor.com

• national interpersonal peer networking & deal – making at annual International Networking Roundtables, with next one, 12 – 14 September in San Diego, CA.

• an exclusive & confidential contact data base, for research & direct mail access, comprised of 500+/- LLCommunity portfolio owners/operators in North America

Bottom line, where ‘comprehensive resource servicing’ of 50,000+/- landlease communities nationwide, is concerned, 25 years of dedicated corporate support is likely coming to an end, unless:

A new ‘for profit’ sole proprietor or corporation picks up and continues the bullet point functions described above; or,

A new ‘not for profit’ entity is formed (MHI/NCC negotiated, but passed on an opportunity to acquire and absorb three of five functions, 1 ½ years ago) to take over ‘comprehensive resource servicing’; or,

Possibly a middle ground, comprised of ‘for profit’ & ‘not for profit’ perspectives, including the hinted – at academic presence, where ‘business statistics gathering & distribution’ is concerned.

So, if YOU have immediate personal input on this critical matter, do so today via MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or email: gfa7156@aol.com

For progress report, read next week’s blog posting here, maybe….

II.

I hope many state manufactured housing association executives take serious note of what’s happening in Georgia; then reach out to the folk who’re ‘making it happen’, to learn how to eventually bring this unique and exciting two – pronged ‘Advertising & CASH program’ to their state, to help community owners and home manufacturers alike!

So, what happened last Friday at the GMHA offices? NO, correct that; ‘at a nearby hotel’, since so many landlease community owners/operators and manufactured housing industry aficionados showed up, they couldn’t be accommodated at the association’s office!

Here’re remarks I received, describing the MHIndustry advertising part of the two – pronged program:

• “…community owners and industry related professionals were sitting on the edge of their seats, as Spencer Roane described the general nature of our proposed advertising campaign. Most, feverishly took notes as information was shared. The mood in the room was reminiscent of rare occasions when one is wont to say ‘a breath of fresh air’ is finally blowing in against our tough (economic) times.” Delano Massey, VP of Development & Production for Jacob’s Eye Entertainment

• Two aspects of the proposed ad campaign: Every LLCommunity will undergo a ‘needs analysis’, enabling crafting a course of action that works for their target audience; and, the ad agency will find ways to maximize advertising opportunity economies of scale, for the benefit of all participants!” (Lightly edited. GFA)

Some were overheard saying, as they left the meeting, “If no one else wants to do this ad campaign, I’ll do it alone if I have to!” That’s how enthusiastic and ‘hungry to get started’, everyone was.

Then there’s 21st Mortgage Corporation’s precedent – setting CASH Program, the exciting ‘placement of new manufactured homes into landlease communities chattel finance model’ crafted and promoted, by Lance Hull. This plan puts new HUD Code manufactured homes, at 21st Mortgage’s expense, into small to mid – sized properties that don’t enjoy the economy of scale characteristic of the largest of the 500+/- known portfolio owners/operators. In return, community owners contribute a portion of the site rent generated by new homeowners, directly to 21st, where it’s applied to reduce the principal owed on the home. This builds equity quickly, encouraging the homeowner/site renter to remain in their home throughout the loan term. In turn, the landlease community benefits from having new homes on – site, the site rent generated, and a more stable resident base. Reads like a WIN-WIN-WIN-WIN plan to me!

So, want to learn more about ‘What’s going on down in Georgia’, to then maybe emulate the ad program in your state, and invite 21st Mortgage Corporation to ‘splain’ the CASH program to your landlease community owners/operators? Here’re your primary contacts:

Jay Hamilton, Georgia Mfd. Hsng. Assn. (770) 955-4522

Spencer Roane, MHM®, Pentagon Properties. (678) 428-0212

Delano Massey, Jacob’s Eye Entertainment (ad agency) (404) 995-1609

Lance Hull, 21st Mortgage Corporation (800) 955-0021 X 1218

And, if you’re a landlease community owner reading this, suggest you bring this blog posting to the attention of your state’s MHAssociation executive, as well as the association’s board chairman – for consideration and possibly action. If YOU don’t do this, it’s likely no one else will either, and another opportunity will be lost. Your call….

*****

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

What The Readers of This Blog Have to Say about….

Carolyn and I’ve been participating in a Christian Writers’ Conference this past week, and pretty much out of touch with daily happenings throughout the MHIndustry. So, I’ve opted to simply share some of the interesting email received from readers of this blog.

Next Sunday’s blog, on 10 June, two days before the long – awaited meeting of the ’18 New Pioneers’, will likely share expectations for the meeting at SaddleBrook Farms in Grayslake, IL.. Even before the event, it’s no exaggeration to say and pen, this singular gathering of 18 landlease community owners, and a few key advisors, from nearly a dozen states, has the potential of charting the very future of statistics gathering and distribution; professional property management education and certification; print and online communication and publishing; national interpersonal networking among peers; even deal – making, for this unique realty asset class, 50,000 properties strong!

I

REALITY CHECK!

“George. You hit it on the head, ALL pre – 1976 (mobile) homes should be going to the dump, or to Mexico (Near this letter writer’s office. GFA), where the poor can use any type housing they can get. In fact, there’re ‘rehab plants’ just across the border in Mexico, where the majority of California’s pre – 1976 homes are going. However, there are still some ‘old school landlease community owners’ who won’t throw anything out, and who continue to spend $20,000 to $40,000 ‘rehabbing’ these older units – that two years from now, will again be in deteriorated shape, if not worse. This is because the applying of roof sealer on the exterior, painting the interior, and adding new flooring, does ‘not for a new home make’! And we wonder why folk still refer to them as ‘trailers’.”

“However, we’re working in a landlease community in Huntington Beach, where Skyline and Karsten homes with new floor plans, and exterior style features that’ll ‘knock your socks off’ – in addition to the new two story Fleetwood home that’s already in place! Once prospective homebuyers see what is now available to them, their whole attitude changes! What’s also interesting, is seeing younger couples, who’ve lost their stick – built homes, now renting our homes, on an interim basis – but have become ‘sold’ on the basic community lifestyle, along with value for the dollar. It now looks like they’ll be routinely buying what they’ve been renting. It doesn’t get much better than that!” (Lightly edited comments and observations from rcb. GFA)

II

Where & How Do YOU Fit Into This MHousing Conversation?

“Thanks for posting the discussion between John (Underwood), Ken (Rishel) and yourself. It underscored the importance of every facet of (HUD Code home manufacturing, MHRetailing by ‘independents’ & ‘company stores’, and landlease community owners/operators) working together, to deliver on the ‘promise’ of quality affordable manufactured housing – and more! The ‘promise’ is exactly what Ken addressed, LIFESTYLE, regardless of the size and nature of the landlease community. And the process begins with the LLCommunity owner/operator who decides just what and how they want to deliver on this lifestyle ‘promise’; then, how to spread the word (i.e. market the property), providing the stimulus, to get home buying prospects to inquire online, via phone, and or on – site visits, generating traffic. But, one MUST also have capable, trained, and motivated people on the ground (i.e. sales/leasing staff in the Information Center) who can do more than provide just a property or house tour. These team members must know the (sales) process of feature and benefit selling (Including the LLCommunity ‘lifestyle’ benefit, for sure); also how to ‘trial close’, encourage visualization on the part of the prospective home buyer; and, effect a final ‘close’ by asking for the down payment, completed application, etc. Any element of this process that does not function properly, in concert with the whole, will produce far less than the desired, let alone optimum results.” (Lightly edited. GFA) And…

“Hope you are well. It seems retirement is nowhere in sight for you.” Chris Nicely

*****

George Allen, CPM & MHM
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

“The Power of NO is a Stronger YES!”

&

Reconnecting a Disconnect

I.

“The Power of NO is a Stronger YES!”

This sage advice is simpler than it reads. Learned it at a recent seminar, where the presenter was making the case for experiencing enhanced personal and corporate Success.

How so? Begin by defining what constitutes Success for you. Then, what is a primary indicator, or measures for that matter, of Success – relative to the personal, familial, business, political, or social situation of choice, assignment, or otherwise?

Next, identify the distractions which are, or might be, hindering one’s Success in said environment. Then, insofar as possible, say NO to tolerating and continuing these distractions at present and into the future.

For example. Like some – to – many of you reading this blog posting, I’m dealing with declining occupancy in a landlease community I own, located a four hour drive from my office. Success there, is improving – to – max physical and economic occupancy. My present distraction? When arriving in town for a property visit, I too often find myself dealing with peripheral matters (e.g. minor repairs, interpersonal networking), rather than concentrating on what it’ll take to reverse course, and get the property back on course to improved occupancy. I’ve got to start saying and practicing NO to these distractions when in town on business!

But that’s only half the story, this Power to say NO to distraction(s) hindering business success. The other half the tale, has to do with exercising a Stronger YES – to measures new and renewed, that enhance one’s potential to achieve much needed personal and corporate Success!

In this business example; I already know – but have not fully implemented the following measures:

• Starting with the property. Is curb appeal, on and off – site signage, and rules enforcement where they need to be, to ‘show’ this landlease community in the best possible light, especially with NO deferred maintenance (e.g. potholes, burned out street lights, etc.)? For more information, read Landlease Community Management text. See end note # 1

• Is staff (in this case, an on – site, MHM® certified manager) phone interview ‘sharp’ and on – site visit ‘savvy’, when it comes to rental homesite leasing and home sales? Has to be! No excuses!

• Time to change whatever newspaper classified and telephone directory ads are in place? Use AIDA acronym for design guidance: get reader’s Attention, arouse their Interest, stimulate their Desire, & motivate them to Action, i.e. phone the property or visit it in person!. Is system in place to record ad response volume to said ads, to clearly know when to replace with ‘fresh copy’? This latter point implies one must have at least three dynamite ads in hand, to rotate, at all times.

• Satisfactory – meaning effective – online presence, via corporate or property’s web site; visit MHVillage.com to place ‘home sale listings’; and, just as important, ‘How is your property described’ on MHI’s Community Attributes System (‘CAS’)? If you don’t know, visit mhicas.org & find out TODAY.

• Attractive, up to date, trifold two or three color brochures available in sufficient quantity, to distribute in local Chamber of Commerce office (Be a member!), and wherever visitors to your local housing market eat and spend the night?

• System in place to accurately and faithfully record, measure and track all telephone and internet inquiries relative to the property, as well as on – site visits? System should, no – make that ‘must’, include a requirement to routinely calculate two Conversions Percentages: # phone inquiries ‘converted’ into on – site visits; and # of on – site visits ‘converted’ into approved move – in and or home buyer applications. Set property performance goals and check on performance!

• Visit (last) local independent ‘street’ MHRetailer (1 ½ hours away in this instance), to see ‘how we might help each other’ be more productive and profitable. Do they know or remember how to ‘sell into’ a landlease community? If not, ‘splain’ the process. Does local practice include payment of finders’ fees? Note. More to follow on this key topic in part II of this blog posting, so read on…

• Talk to the ‘Big Four + 1’ independent, third party chattel lenders to see what home loan programs apply to your typical homebuyer; and what it will take, credit score wise, for them to qualify. For example; inquire about 21st Mortgage Company’s exciting new C.A.S.H. Program. For information, contact Lance Hull @ (800) 955-0021 X 1218. OR, buy a copy of the MH $$$ Primer for $24.95 for contact information relative to the ‘Big Four + 1’, and more. See end note # 1.

• Ponder whether it’s time to get into the ‘rental unit’ business, and or engage in one or another self – finance methodology (e.g. ‘captive finance’, lease option, etc.) pursuant to selling new and resale homes on – site?. And in the case of self – finance, know that ‘being in compliance’ with federal and state finance regulations is a new and serious paradigm for landlease community owners/operators nationwide. At present, there’s but one company active in this troubled arena: Rishel Consulting @ (217) 971-3968

• Relative to one’s local housing market, defined by telephone area code(s), know how to ascertain Area Median Income or AMI (via zipskinny.com website) and or Annual Gross Income of a prospective homebuyer or family unit, to estimate truly ‘affordable’ and ‘risky’ Price Points for new and resale homes? If not, obtain copy of FREE ‘Ah Ha! & Uh Oh! Worksheet’ to learn how to use these important steps to better serve your home – buying customers! See end note # 1.

So, the next obvious step here, for me, is to purpose to plan and speak a Stronger YES per ‘all the above’ business improvement measures at this landlease community. How ‘bout YOU? Is it time, for YOU, to realize the Power of NO, is a Stronger YES?!

End Note # 1. To obtain these items, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

II.

Reconnecting a Disconnect

According to MHI, there’re 8,000 fewer MHRetailers (both independent ‘street’ & ‘company store’ types) than there were in 1998, when the MHIndustry shipped 372,843 new HUD Code manufactured homes. Since then, the estimated number of vacant rental homesites, in landlease communities throughout the U.S. has risen to 250,000; while annual home shipments have dropped, and remained at a 60 year nadir of 50,000+/-, for the past four years!

Today’s tough and stark reality? Far fewer MHRetailers are selling far fewer land – and – home packages (i.e. homes sited on realty owned fee simple); and, far fewer new HUD Code homes into landlease communities! Simultaneously, LLCommunity owners/operators ‘all but forced’ to market, sell, and self – finance new and resale homes on – site, are now caught in a No Win financial regulatory squeeze, by dint of the S.A.F.E. Act and provisions of Dodd – Frank federal legislation. Now they’re now looking elsewhere for infill assistance. (Maybe) re – enter the independent ‘street’ and ‘company store’ MHRetailers!

It is high time to reconnect! During the early to mid – 1990s, before HUD Code manufacturers became enamored with the ‘big box = big bucks’ maximize profitability business model, and independent ‘street’ MHRetailers decided to compete head to head with traditional site (stick) homebuilders, I routinely taught a seminar – with the tongue in cheek title: ‘The Care & Feeding of MHRetailers’. Here are some of the measures LLCommunity owners/operators used to routinely effect, to grab and keep the attention of local MHRetailers, whether they be of the ‘independent’ or ‘company store’ variety:

• Have a supply of business cards (Preferably with something interesting, helpful, even valuable, on the verso or reverse side of the card, e.g. map or directions to the property, a $ savings move – in coupon with expiration date, list of five or 10 good reasons to reside there, maybe a mission statement). The Goal is to make this (your)business card a ‘keeper’! Is yours a ‘keeper’? If not, make it so!

• Have attractive trifold property brochures on hand, describing the property, its’ features and amenities, also containing basic contact information (& website, if property has one), even a sketch map showing how to travel to the landlease community. And a brief testimonial or two really helps set the tone of the brochure.

• Schedule and effect personal, and or manager, visits to all local MHRetailers’ salescenter, at least once each month; every other month once a productive relationship is in place and working well. Also be active in your state’s MHAssociation, especially if there’s a local chapter in or near your local housing market; so as to network with one’s peers, especially MHRetailers! Be known!

• During the periodic (monthly) visit to MHRetail salescenters, restock one’s business cards where appropriate, same with brochures. Also a ‘winning strategy’ is to arrive with a large plastic plate of fresh, aromatic, home baked cookies for the MHRetailer staff. And while there, get to know ‘everyone’, especially the new sales persons.

• Secure permission, then prepare a photo collage describing one’s landlease community. Some collages measure 2’X2’, others 3’X3’ in size, and feature a few mounted 5X7 color photographs showing ‘best views’ on – site. Also list the name, address and contact information for the property on the collage. Even have a plastic holder mounted thereon, to hold a supply of aforesaid property brochures. Sometimes the collage is mounted on a wall inside the salescenter, or on an easel, just inside the entrance. If you’ve not done this before, be prepared for a pleasant surprise, because ‘it works’!

• A couple times each year, buy a supply of good quality ‘premium gifts’, to distribute to all the MHRetailers in town. Examples: trigger coffee mugs with subject property’s logo and phone number on it; leatherette or vinyl 8X10 tablet folios, with property logo and phone number on an inside panel – easily visible to ‘seller’ as he or she is writing deals. Even a smoky plastic pencil holder, and tablet holder, to put on their desks, each featuring the property’s logo and phone number. Goal here? Your property(ies) # 1 on salesperson’s mind when selling homes, and recommending where they move it to enjoy the landlease community lifestyle!

• If property is having Home of the Month competition, the best outside judges to use are the local mayor, editor of the local newspaper (He/she’ll likely send a reporter and or photographer – but that’s OK, it’s ‘free publicity’), Chamber of Commerce executive, and – local MHRetailers! And while they’re on – site, take them to lunch to build that relationship.

So, what do you think? Is it time for YOU to reconnect with the local MHRetailer(s) in or near your local housing market? Probably. But also know, there’re probably going to be a couple significant details that are going to have to be considered and resolved. First; if you’ve been selling new homes on – site, for any stretch of time, you’re going to have to decide to STOP doing so, if you’re serious about encouraging MHRetailers to, once again, ‘sell into your property’. Otherwise, if you’re marketing and selling homes on – site, you already know MHRetailer’s reluctance to send otherwise interested and qualified prospective homebuyer’s to your property, out of fear – imagined or otherwise, that they’ll be distracted by what ‘deals’ you’re offering, or intentionally/unintentionally enticed by your on – site sales staff. Really can’t have it both ways, except for in extraordinary situations.

And what are the present ‘local practices’ – if any, and or appropriate, regarding payment of ‘finders fees’ (a.k.a. birddog fees) to salescenters or salespersons (Establish ‘up front’ with MHRetailer, which it is to be!). And, the pre – leasing of vacant rental homesites in landlease communities? Both practices are local economy and housing market driven, relative to ‘supply and demand’; with the first practice, characteristic of ‘soft markets’, where there’re plenty of ‘vacancies’; the latter practice, characteristic of ‘tight markets’, where there’re few ‘vacancies’ to be filled in landlease communities.

Time to Reconnect!

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Where & How do YOU Fit into this MHousing Conversation?

&

Feed back on last week’s blog posting….

I.

Where & How do YOU Fit into this Manufactured Housing Sales Conversation?

Over the years – no, make that decades; some reading this blog posting have collaborated with me, to address various HOW TO needs within the landlease community asset class. Some examples: the ABClassification System® replacing the defunct Woodall Star System, was an early National Communities Council (‘NCC’) project.. The do – it – yourself Valuation Calculation Worksheet or VCW, was the first non – traditional LLCommunity valuation methodology, enabling owners/operators to accurately estimate the value of their income – producing property, without paying thousands of dollars to realty appraisers oft erroneously (then) using apartment operating expense ratio data; and most recently, the popular ‘Ah Ha! & Uh Oh! Worksheet’, for estimating new and resale ‘affordable’ and ‘risky’ housing price points in any local housing market, using Area Median Income (‘AMI’) per postal zip code, or a prospective homebuyer’s Annual Gross Income (‘AGI’). See end note # 1.

Now, beside the ongoing chattel mortgage finance regulatory imbroglio (Go head, look it up) affecting – no, traumatizing, landlease community owners/operators from coast – to – coast, there’s yet another (not so new) HOW TO need on the operations horizon; namely, manufactured housing marketing and on – site sales at these properties. I recently participated in the following (edited) exchange of emails, both on LinkedIn and personally, with John Ace Underwood and Ken Rishel. Remember; these three freelance MHIndustry consultants are ‘talking shop’ about YOU…

George. “I understand better now, how your unique sales training methodology works.” A little later, “One thing gong in our favor these days, is virtually all the freelance LLCommunity consultants of the past decade are gone, with the exception of about five of us.”

John: “And that’s why we’re interested in identifying LLCommunity clients who expect us to stick around, and document results we believe we can achieve! Then, if clients are not getting the results they anticipate, we want empirical data that clearly identifies ‘why not’, so it can be effectively addressed! That’s also why I don’t believe ‘sales training events’ in general, or any dog and pony show, without follow – up, have much of a lasting impact, short or long term.”

George: “OK. With that said, how do we move forward to improve on – site home sales?

John: “It is my belief, community owners of ANY size must take home sales activity much more seriously. In the distant past, LLCommunities viewed home sales as something done by ‘someone, somewhere else’, e.g. the independent ‘street’ MHRetailers (f.k.a. ‘dealers’).” Commentary: This is where that proverbial question arises: ‘Which came first, the chicken or the egg?’ MHIndustry – specific, Was it independent ‘street’ MHRetailers shifting focus to compete, as contractors, with site – builders in the ‘big box = big bucks’ homebuilding arena; OR, LLCommunity owners starting to sell homes on – site, that motivated MHRetailers to look elsewhere (i.e. land – and – home packages) for new homes sales business? Answer? Doesn’t matter! Today, according to MHI, there’re 8,000 fewer MHRetailers than in 1998; and, now virtually every LLCommunity owner/operator MUST sell new and resale homes on – site, to fill vacant rental homesites, or those sites remain non – productive, where rent collection is concerned.

John: “From my perspective, it appears most community owners have their on – site managers and maintenance staff also handle home sales activities and service. While these people may be phenomenal professional property managers, and or service help, new and resale home ‘selling’ demands an entirely different skill set! When having to fill vacant rental homesites with new and resale homes, community owners must identify the most capable, (maybe) experienced, and certainly motivated person for the sales task at hand, using fairly strict selection criteria, aptitude testing and personal interviews; then, once they’re hired, provide home sales training, appropriate process(es), and leadership!”

John: “Regarding the 15% larger property owners/operators (i.e. Property portfolios with 20+ LLCommunities, averaging more than 200 sites apiece), they must build a sales organization focused on nothing but home sales! These operators have to understand, NO ONE will sell their communities (lifestyle) better than them. They can no longer depend on independent ‘street’ MHRetailers, or ‘gravity’, for that matter, to do this.”

George: “But here’s ‘the rub’; portfolio ‘players’ who’ve been the most successful at home sales, and some indeed have been; to date, appear to be the least willing to share Lessons Learned with their peers – probably out of fear of competition in some local housing markets. The answer? Frankly, there isn’t any. When less than 10% of the known portfolio owners/operators are direct, dues – paying members of their only national advocacy body; well, the peer pressure opportunity simply isn’t there.

John: “And in some (other) cases, LLCommunity sales managers still need to reach out to established MHRetailers, when they can be found in one’s local housing market, to at least attempt to form a mutually beneficial relationship” This might mean those properties pull back from selling (maybe) new homes on – site. “In any event, the deals are out there; they just need to be found and sold – and financed (Hence a good idea to also bring a local lending source into this home sales relationship). And even local real estate licensees can have a place in this mix IF, and I stress IF, a process is put into place to handle their unique marketing effort.”

Speaking of ‘process’. John has some pithy commentary relative to a common shortfall in this area, observed at MHRetail sales centers and on – site in LLCommunities. “We have come to realize, most MHRetailers critically lack the data with which to make meaningful changes (improvements)! Most have no idea of the amount of traffic (e.g. volume of daily phone inquiries & sales center visits), the quality of that traffic (e.g. whether ‘qualified’ or not), even the number of opportunities created from that traffic (e.g. conversion of phone calls to visits & visits to approved applications). Many times, management blames sales people for what is actually a ‘marketing issue’, and at other times, ‘the web & marketing people, for what is actually a ‘selling issue’ (e.g. inability to ‘close’). Bottom line? You can’t manage what you don’t measure – and that which you begin to measure, often begins to improve!”

And at this point Ken jumps into this heady conversation. “LLCommunities have a sales advantage over independent ‘street’ MHRetailers, that garners them greater profit on home sales transactions! Unfortunately, it’s rarely discussed anywhere, and almost never taught. The last time I heard it parsed publicly, was at a meeting of the Urban Land Institute’s Manufactured Housing Communities Council; when a ‘former LLCommunity owner’ explained why ‘such & such firm’ paid a premium to buy his former trophy properties. He said they did it to discover and learn his methods of marketing, advertising, and selling homes on – site! However, once they bought the properties, they soon decided it was ‘too much work and too complicated for their system (process)’, and abandoned his methods.”

Ken: “So, what’s this great ‘secret’? Simply, to focus on selling lifestyle and neighborhood, rather than hawking just boxes and price! That, of course, means marketing and advertising must address ‘why’ people would and should want to live in a particular landlease community; and it helps the sales effort, to incorporate current residents into the process as well. It also means sales personnel must be well selected and trained, and very good at their jobs. It’s more complicated, to be sure, than just ‘selling the box’, and certainly more expensive to market and advertise. Frankly, it requires more of everyone involved, but it works well and is certainly more profitable.”

Ken: “Del Webb used this strategy when they developed and filled landlease communities. The Villages, in Florida, still do it, as do a number of others. Think Timbercreek in Springfield, IL., and SaddleBrook in Grayslake, IL.; where the former was recently honored as MHI’s Community of the Year, at the annual MHCongress in Las Vegas, NV. And, before anyone starts opining, “That only works in ‘such & such market’”, NO, it works everywhere, and with all age communities as well as with Senior communities. And frankly, ‘the secret’ works in average properties as well as with ‘A’ grade LLCommunities, if YOU plan for, and work it! It won’t apply, of course, in a slum property, or in those where ‘raising the rent first, fast and foremost’ is the property owner/operator’s primary objective.”

So. there you have it. What three well known, veteran, freelance MHIndustry consultants are saying about YOU, on the social site internet these days. Are they right or wrong? Well, given our industry’s annual home shipment production continues to languish at a 60 year nadir – allowing for some uptick, thanks to ‘fracking’ in a few regions around the U.S., they almost ‘can’t be wrong’. But are they ‘all that right’? We’d like to know: See end note # 1 at end of this blog for contact information. In the meantime, know that Joe Ace Underwood, and his partner, Joe Wooldridge, are working on a New Home Sales Program tailored specifically for use within landlease communities, whether selling Community Series Homes (‘CSH’), or otherwise. Contact John via (239) 389-2046 or Junderw794@aol.com

End Note. 1. These three HOW TO resources FREE ‘for the asking’ by phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

Next week? Maybe, ‘The Care & Feeding of MHRetailers’, a popular seminar topic of the early 1990’s, needs to be dusted off and reintroduced to this audience. Especially to those LLCommunity owners/operators too small to launch their own dedicated home sales operation on – site, AND independent ‘street’ and ‘company store’ MHRetailers interested in filling vacant rental homesites in these properties, but haven’t made a real effort to do so since the 1990s. Hmm. Now, where did I file that lesson outline….

*****

II.

Feedback on Last Week’s Blog Posting

Relative to ‘Your Views’ in general, and my suggestion we vote political incumbents out of office en masse this coming November….

“Very well done, George. Let the Free Market and Free Enterprise System find the solutions to help consumers, while making a profit and creating jobs! Yes siree!” NB

There’s more, but lengthy in nature, so will ‘hold’ for now, and likely incorporate into a future blog posting.

*****

George Allen, CPM® & MHM®; Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

Great News, Sad News, & Your Views!

I.

Preview of Most Exciting Topics Agenda & Lineup of Presenters ever, for 21st annual Networking Roundtable, in San Diego, CA., @ 12 – 14 September 2012; and more…

This is the sole annual manufactured housing industry event planned for owners and operators of landlease (f.k.a. manufactured home) communities throughout the U.S. and Canada!

Networking Roundtable’s four goals this year are: 1) to showcase 24 superb education sessions – available nowhere else; 2) to host nearly a dozen superb interpersonal peer networking social events during 2 ½ days; 3) to provide an environment conducive to realty deal – making; &, 4) to give attendees opportunities to tour & examine the Modular Lifestyles ® home!

I can’t begin to tell you how exciting it’s been, preparing this year’s 21st annual Networking Roundtable agenda and lineup of featured presenters! How can you not want to be present 12 – 14 September, at the Hilton Resort & Spa on Mission Bay in San Diego?

• Begins with Landlease Community Buyers Symposium by Marcus & Millichap
• First morning, EVERYONE stands & introduces themselves to 200+ attendees
• ‘Landlease Communities: Reframing the American Dream!’ by keynote speaker
• Rejuvenated & Re – staffed: MHI & NCC to the Rescue! Mssrs. Jennison/Savage
• New & Old Chattel Capital Sources; introducing 21st Mortgages’ CASH Program!
• ‘Good & Bad Landlease Community Deals’, a presentation, then open sharing…
• Special Guest: Richard Lederer, author/humorist. Google ‘gettheetoapunnmery’
• Reconditioning Manufactured Homes in 2012! More than one way to skin a cat…
• Good Resident Relations = More Resident Referrals = Max Resident Retention!
• ‘Shining Stars’: Buying & Rehabbing Abused Landlease Communities!!!
• Leading the Way – What’s New & Exciting at Rent Manager!?
• Resident Screening & Dodd – Frank, USA Patriot Act & Red Flag
• Collecting 100% of Collectible Rent! Are YOU? If not, come & learn how!
• Special session on right way to engage in Lease – option methodology on – site
• The best poker night of your life….if you’re into poker. Dr. Lederer presides…
• Informal, early morning prayer meeting for our country and leaders! Started 9/11
• Landlease Community Realty Mortgage Originators Panel & Open Discussion
• ‘What does it cost to build a new HUD Code Community Series Home?’
• $$$ Valuing Landlease Communities with Park – owned Homes On – site!
• Ready for your first Consumer Financial Protection Bureau exam? Here’s how…
• Does Your Present Insurance Policy Cover Your Current Exposure(s)???
• Calculating Affordable & Risky Price Points for New & Resale Homes On – site
• Meet the LLCommunity Triad of the Future: Advocacy, Research, & Resources
• When & Where is Secondary Market for Manufactured Home Marketing/Sales?
• When & Where to Hold 22nd Networking Roundtable during September 2013?

Did you count em? Yep, there’s 25 educational & informative sessions planned for YOU!

Since this is a ‘by invitation’ event, primarily for landlease community owners/operators, and their product/service vendors, obtain information from the community-investor.com website, by the end of May 2012; or, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and have a 21st Networking Roundtable brochure sent to YOU!

II.

Our industry & asset class lost a longtime ‘player’ & friend on 7 May 2012.

George Goldman, former owner of landlease (f.k.a. manufactured home) communities in IN, IL & TX, was my first paying ‘consulting’ client in 1980; his wife Judy was with Carolyn and me when I was designated a Certified Property Manger® in 1982; George & Judy attended the first International Networking Roundtable, in Clearwater, FL. in 1991, and we’ve remained friends ever since.

George was an entrepreneur, real estate investor, and philanthropist – founding both the Goldman Philanthropic Partnerships’ and ‘Partnership for Cures’. In lieu of flowers, the family requested donations be made to the Goldman Philanthropic Partnerships, c/o Dr. Soriano, 972 Featherstone Rd., Ste # 360, Rockford, IL. 61107.

In the words of another Midwest LLCommunity owner/operator, “Was saddened to learn of George’s passing. He was a wonderful man, mentor, and good friend. I know you knew him well, and that we will all miss his kind manner and keen business acumen.” RR

III.

Your Views…

“George. Very good warning of the onerous regulations that are about to sweep our industry as Dodd – Frank is implemented. When I recently met with our state’s congressional and senate representatives, I tried to make these points:

• Manufactured housing is not only the most efficient, affordable housing in the world, we function without government subsidies. Even the cost for HUD to regulate the industry is funded to a surplus with HUD label fees!

• Dodd-Frank will eliminate chattel financing for probably half of the current market. Not because of lack of willing, qualified buyers, or willing lenders, but simply regulated out of existence!

• Not only are the lowest income housing aspirants affected, as congress tells them they can no longer purchase a home. BUT a large share of the almost 9,000,000 people currently living in manufactured housing will not have access to capital to finance the sale of their home, even when willing, qualified purchasers stand ready to buy.” (lightly edited. GFA)

Well put; but is anyone in Washington, DC., listening? I double doubt it. Legislators, in general, are not yet reading, let alone paying attention, to the proverbial ‘writing on the wall of public opinion and action’. They need to be shown, not told. How?

If ever there was a year during which political incumbents in general, deserve to be voted out of office en masse, 2012 is the year! It happened this past week, during the primary election in Indiana, when three decade incumbent, Senator Richard Lugar, lost decisively to a no – name opponent. Responsible citizens as a whole, are fed up with thinly veiled maneuvers to alter the very nature of this great country – from one populated by independent thinkers and hard – working wealth builders, into a nanny state characterized by the redistribution of said wealth to non – workers and entitlement devotees, who in turn appear to be embracing the siren call to neo – socialism. The time to STOP such mal ‘hope & change’ is now, replacing it with ‘shock & awe’, as we return en masse, to The American Way of Life! My guess is your local, let alone national, minions of the secular print and broadcast press, have not communicated this matter to you in such clear terms. I know mine haven’t.

How does the previous paragraph relate to HUD Code manufactured housing, what’s happening and ‘about to happen’, throughout the landlease community real estate asset class, certainly where new and resale manufactured homes are marketed, sold, and often self – financed on – site? Simple. At the end of last week’s blog posting, I equated anticipated abject results of financial regulatory provisions of the S.A.F.E. Act, Dodd – Frank bill, and other related measures, as being akin to ‘throwing the baby out with the bathwater’. By this, I opined, and here repeat: Government financial regulators are poised to soon ‘throw those who Need – and not just Want, the affordable housing and companion lifestyle our industry and asset class best provide – with NO assistance from government – insured entities and most social agencies, straight into abject homelessness!’ There are NO other eminently affordable housing options remaining for this class of unfortunate citizenry in this country today! And frankly, it can’t be described any clearer, or more to the point, than that!

*****

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156