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

Landlease (nee manufactured home) Community Owner/operator?

Consider yourself ‘toasted’, in more ways than one….

I.

Monday evening, 23 August, at the famous Rosewood Restaurant in Rosemont, IL., two dozen Chicago area landlease community (‘LLCommunity’) owners/operators gathered to socialize. Think Ed Zeman, Barbara Davis (Jennings Realty), Chuck Fanaro, Rick Camboni, Dennis Ohnstad, Eric Hagen, Ed Biskind, Brad & Matt Shechtman, John Zajicek, Greg O’Berry, Ken Hauck, Ben Kadish, John Rogosich, and nearly a dozen others intimately involved in this unique real estate asset class.

A highlight of the evening was the proposal and sharing of a formal toast to the memory and legacy of the late Bud Zeman, fellow LLCommunity owner, Chciago businessman, and friend to most of the folk gathered that evening. “To Bud Zeman!”

Shortly thereafter, a first – ever formal toast was proposed and shared, re: ‘The Community Owner!’ To the best of this industry observer’s recollection, this is the first time such a tribute has been offered publicly. It went like this:

Till that final home site if filled,
And every last bill completely paid

With mortgage refinancing approved
And confident our dollars are not delayed

We’ll continue to ply the trailer trade
With affordable homes factory made

Knowing so well, how lesser men are oft afraid
Of this business path & how they might be portrayed

So to you, my friends and fellow free holders,
I offer this toast to our humble but oh so worthy trade!

The September issue of the Allen Letter professional journal will contain a lagniappe (‘freebie’) 3X5 professionally printed Toast Card containing this historic toast. To subscribe, phone (317) 346-7156 for 12 monthly issues @ $134.95/year subscription.

Postscript. If you bridle at the use of the word ‘trailer’ in the toast above, feel free to substitute the word ‘housing’. Penned it as I did, to pay tribute to our industry’s genesis, well realizing our future is certainly with the latter. GFA

II.

Last week’s #100 blog, at this website, titled UNBRIDLED OPTIMISM & BOLD INITIATIVES, garnered dozens of reader responses (100% positive & encouraging!), far more than any of the previous 100 postings! For example: “I hope you continue this after you retire, as it’s good to have the most up to date info coming at us in this format. Looking forward to all the news you can tell. Thanks for all you do for our industry.” DR.

With that type of encouragement, I’m emboldened to borrow material from blog # 100, and mate it with insights garnered during Precision Capital Funding’s two day Chattel Finance Workshop in Chicago last week. Now, this is pretty heady stuff, so read carefully – reflect thoroughly – react appropriately…

GIVEN 1) The MHIndustry realized, 2 June 2010, during the Manufactured Housing Finance Roundtable, in Elkhart, IN., it would be ‘On its’ own’, from that point forward, and for the foreseeable future, where chattel (personal property) finance is concerned. AND, 2) Now, the LLCommunity asset class senses near abandonment, where third party chattel lending sources are concerned; SO, 3) Property Owner Finance (nee. self – finance), via ‘captive finance’ & or ‘buy here – pay here’ methodology, might not only continue as near term salvation for portfolio owners/operators across the U.S., BUT 4) Possibly ensures the very preservation and continuation of the MHIndustry at large! Think about that progression and conclusion. Do you agree or disagree?

How’s this deliverance unfolding? In fairly simple fashion. First, we’ve already seen Property Owner Financing of new & resale homes, on – site in LLCommunities, balloon in volume during the past decade, from maybe a few million dollars in ‘paper’ held by LLCommunity portfolio owners/operators a decade ago, to more than $3 ½ billion by year end 2009; and some now estimate that total to be $5+ billion dollars and growing! As more and more conscientious LLCommunity owners/operators take steps to bring existing chattel loan portfolios into compliance with state and federal laws and regulations; and better prepare themselves, through training and licensure, to effectively originate and underwrite new chattel home loans going forward (either in – house, with assistance of a financial services firm, or setting up separate LLCs to do so…), it’ll only be a matter of time before they provide (if not doing so already) said financing for FSBO (For Sale By Owner) deals occurring within their LLCommunities; and, when the time is right, sell off their ‘book’ of compliant loans (to existing, and new firms being formed to do this), realizing new capital for originating more home loans!

Want to actively participate in a national, public forum, to learn more about what was just described, and make your views, modus operandi, and ideas known? Attend the 19th International Networking Roundtable in Phoenix, AZ. @ 15 – 17 September 2010! ManageAmerica/Origen (816) 246-5053, will keynote: ‘Getting Chattel $ to Return!’ And Precision Capital Funding will be holding forth on ‘captive finance’ per se. For information on PCF’s next two day workshop on this subject, phone (217) 971-3968. Furthermore, it’ll be telling, to see how many of the ‘Big Four + One’ third party chattel finance lenders are present, expressing interest in LLCommunity business. To register for the Roundtable, do so via this website or phone (317) 346-7156. Mention this blog posting and pay a lesser registration fee! A final word on this $$$ subject: Only a few copies of the Manufactured Housing Finance Primer remain. Three dozen copies were purchased this past week! Order yours; phone (317) 346-7156. Only $29.95 postpaid!

III.

‘MHI’s Three Point Plan to Move the Manufactured Housing Industry Forward’ was the headline to the Manufactured Housing Institute’s Quick Links newsletter dated 14 May 2010. And shortly thereafter it was a major topic in Blog # 87, titled: ‘MHI’s Three Point Plan; CONSPIRACY vs. Suicide, & Overlooked Opportunities!’

So, what were these three points? In MHI’s words: “improving financing for our customers; advocating for the implementation of updates to the manufactured housing building code (Think Manufactured Housing Improvement Act of 2000, a.k.a. MHIA @ 2000. GFA), ‘keeping our homes competitive’ (this phrase added since May. GFA); and, protecting preemption of the federal building code.”

When I requested a three month update from MHI, I was reminded by Thayer Long, that members, at their June meeting in Washington, DC., “lobbied representatives on the GSE’s failure to properly implement their ‘duty to serve’ the manufactured housing industry” in accords with the Housing Economic Recovery Act of 2008 (‘HERA’).

Furthermore, Members of Congress were alerted that 60% of manufactured home owners rely on personal property (chattel) lending, and during the past two decades, MH has represented 21% of the national housing market. But now the FHFA’s (‘Federal Housing Finance Agency’) proposed rule stymies such financing for manufactured housing, and Congress assistance is needed to direct that agency to modify their proposed rule, and require GSE’s (‘Government Sponsored Enterprises’) to develop personal property lending products as part of their duty to serve the MHIndustry.

MHI members also lobbied on S.A.F.E. Act (‘Safe And Fair Enforcement of Mortgage Licensing) reform; specifically to exempt manufactured housing retail activities from the S.A.F.E. Act. For more information on these topics, visit manufacturedhousing.org

IV.

What do you call them? A recent communiqué from CNBC begins: “They’ve been called McMansions, Starter Castles, Garage Mahals, and Faux Chateaus but here’s the latest thing you can call them – history.” The story goes on to describe the apparent demise of “…garishly large homes, which are generally over 3,000 square feet and built very close together.” According to Wikipedia “They’re tacky, they lack a definitive style and they have a ‘displeasingly jumbled appearance.’” While I don’t anticipate a race by disaffected McMansion homebuyers to factory – built housing, motivated by national economic malaise, such retrenching could, in time (After many of the 4,000,000 ‘repo’ site – built homes are resold), be a harbinger for increased sales volume for HUD Code homes! Did I say ‘sales’? It’d be nice, timely and fitting, when this renascence occurs, to finally cease talking ‘shipments’, and get in accords with the rest of the housing market, and start talking ‘sales’.

Speaking of terminology. Has anyone else noticed? One of our national advocacy bodies long referred to non – manufacturing segments of the HUD Code manufactured housing industry as being ‘aftermarket’. That term long grated my sensitivity (Think of the synonyms) but few, or so I thought, listened to my aversion for the label. But earlier this year, 2010, I started hearing those same segments now referred to as being ‘post production’. Now, I can handle that. Makes me wonder though, how OEM (original equipment manufacturers), and other suppliers of housing components, feel out there in limbo land, being neither HUD Code home manufacturers or post production. Hmm. But then, we’ve learned to live with two identical acronyms during the past several years: Think MHCC. You know; short for Manufactured Housing Consensus Committee (relative to MHIA@ 2000); but as well, Urban Land Institute’s Manufactured Housing Communities Council. And then there’s MHARR. For sure, the letters stand for Manufactured Housing Association for Regulatory Reform, but the suggestion is out there, to improve our industry’s image with a comprehensive Manufactured Housing And Resident Relations (a.k.a. customer service) program! Plus, how many renderings of the letters, among state MHAssociations, are there for IMHA?

IV.

Denigrate. Know the definition of the word? Goes like this: “blacken in reputation; defame” (from New American Webster Handy College Dictionary, p.187).
On – site LLCommunity managers and fee property management firms were, in my opinion, denigrated in a column this month, published in a trade publication that’ll remain unnamed here. I decline to direct any fresh traffic their way. If you read this tripe, and disagreed with the writer – but haven’t contacted the editor/publisher to express your views, inaction only serves to encourage future defaming of property managers and firms. I’ve written, as have LLCommunity owners from California to (I’m told) Florida…

V.

Well, that does it for this week. Kids are back in school; the selling season begins for homes in Sunbelt regions; and, we have a very heavy business meeting schedule ahead of us. International Networking Roundtable (‘INR’) in Phoenix, AZ. @ 15 – 17 September; Manufactured Housing Institute’s (‘MHI’) annual meeting is in Denver, CO. @ 26 – 28 September – with National Communities Council (‘NCC’) division convening 27 September; Urban Land Institute (‘ULI’) members travel to Washington, DC. @ 12 – 15 October – with Manufactured Housing Communities Council (‘MHCC’) convening 13 October; and the Manufactured Housing Mid – Atlantic (5) States Convention takes place this year, in Albany, NY @ 26 & 27 October. Be sure also, to mark your calendar to attend the Louisville Manufactured Housing Show (formerly the Midwest manufactured Housing Show), in Louisville, KY. @ 13 – 15 January 2011. For more information on this latter venue, contact Dennis Hill via (770) 587-3350.

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

UNBRIDLED OPTIMISM & BOLD INITIATIVES

from Chicago to Phoenix, & Austin to Louisville (‘Lou-avul’), & beyond…

Is it just me, or do you too feel ‘a – shakin & a – stretchin’ occurring among survivors of the grim, decade – old, Manufactured Housing Reality Show? Must be careful here, not to overplay what I’ve been sensing of late; however, with each passing day, it’s become increasingly obvious: Some things downright Positive, and Some things out – and – out Bold, are a – happening!

I.

Let’s begin with the small cum large, non – host, no – agenda, networking dinner party for Chicago’s landlease (nee manufactured home) community owners, Monday evening, August 23rd. When first phone calls were made a week earlier, the optimistic goal was to see a dozen of the 25 known Chicagoland portfolio ‘players’ gather at the popular Rosewood Restaurant in Rosemont, IL. Well, as this blog is posted Sunday afternoon, August 22nd, 24 name tags and a private dining room at the Rosewood await the largest social gathering of LLCommunity owners/operators in the city’s history! Why the Unbridled Optimism? Revisit this website and blog next week to learn the answer…

II.

Then there’re the Unbridled Optimistic commentaries that roll in each week, following this blog’s posting. Here’re just two recent penned communiqués:

“I still believe manufactured housing is the best, and maybe the only hope, for safe affordable housing for a large portion of U.S. citizens!” JA

“We are on the edge of the greatest boom the manufactured housing world has ever seen. And this isn’t hype. It’s the logical reality of why the Buffett folk keep buying up manufactured housing producers and suppliers! They are doing the same tea leaf reading as any sage of the biz can come to.” TK

Know what? There’s a lot more going on ‘optimistically’ than most folk realize. That’s why YOU need to be reading the Allen Letter professional journal every month! Phone (317) 346-7156 to subscribe @ $134.95/year (12 issues) – and get to know columnist M.H. Ronin; that’s code for Manufactured Housing’s ‘covert operations (editorial) specialist with no governmental ties’! Seriously. And guess who he/she is?

III.

Excuse me here, if I have difficulty restraining genuine excitement for the landlease community asset class (a.k.a. In some circles, the ‘post production segment of manufactured housing’, nee the ‘aftermarket’), and what happens 15 – 17 September, at the 19th annual International Networking Roundtable in Phoenix, AZ.

Just corresponded with Randy Rowe, upon his return from Australia. He’s ‘primed to share’, with 200+/- LLCommunity owners/operators expected to attend and hear: ‘What we must collectively do, to regain our legitimate share of the U.S. housing market!’ How can YOU not be present to hear that timely, bellwether address?!

And then there’s how Murphy’s Law (i.e. ‘Whatever can go wrong, will go wrong!’) has been turned on its head at this event. We planned to feature the first public pairing of MHI & MHARR execs ‘telling their respective advocacy stories’. Well that’s not gonna happen. Why? Ask me privately. BUT, in its’ place? Something bigger and much better! But you have to be present to ‘experience’ it. Frankly; I can hardly wait!

And ‘how ‘bout this?’ Did you know there’s already a ‘plan & practice’ in place, to restore third party chattel financing to manufactured housing in general, and LLCommunities in particular? No? Well, that’s getting its’ first public airing as well!

PLUS, all the other nifty topics, best presenters, superb networking, and important deal – making characteristic of this venue! Mention this blog posting when you register (if you haven’t already), and we’ll honor the ‘before 8/15’ registration fee of $395.00, saving you $55.00 off the present $450.00 registration fee. Register via this website or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 today!

By the way, the third meeting of the MHTrade Press CONSORTIUM will occur at this year’s Roundtable in Phoenix. Anyone who’s anyone in the print and online press will be present!

IV.

TA – TA! Remember the ‘teaser’ of a week or two ago in this blog, about Good News and how ‘The South might rise again’? Well, here’s Good News about one Bold Initiative: the Louisville Manufactured Housing Show (formerly, Midwest Manufactured Housing Show), following a year’s (2010) hiatus, returns to the Kentucky State Fair Grounds @ 13 – 15 January 2011. Yep; got that, as they say, straight from the horse’s (i.e. Dennis’) mouth. Are you excited to hear that Good News? You should be! As a colleague said yesterday, “Geesh, I didn’t realize how much I was going to miss the mid – January trip to Louisville until the show got canceled!” A dozen (+) manufacturers have committed to participate and nearly half the supplier booths are reserved. For more information, and or to reserve ‘your supplier booth’, contact Dennis Hill via (770) 587-3350. Tell him ‘George sent me!’

V.

Hey; also remember this blog telling you (a little) about the ‘Arkansas initiative’, to (in my words) pressure our national MHAdvocacy bodies to effect more and better results for the MHIndustry, inside the Washington beltway? Well, have been watching this matter unfold from a distance, and recently learned it’s morphed into the ‘Texas initiative’. Following a recent circulation of ‘requests for proposals’ and conference call; two consultancy proposals have been received, and will be decided upon. Appears the Texas Manufactured Housing Association will be funding this Bold Initiative, in part; and, providing leadership for same, via its’ board of directors and executive director. To become involved in this effort, or simply to learn more, phone (512) 459-1221 # 940.

VI.

OK, continuing this week’s blog theme describing Unbridled Optimism popping up all around the U.S., here’s a novel if not somewhat shocking thought. The rock band, The Grateful Dead, just might have the answer(s) to MHIndustry’s decade long malaise! How so? Go to your local Borders or Barnes & Noble bookstore and take a gander at David Meerman Scott’s Marketing Lessons from the Grateful Dead. ‘What Every Business Can Learn from the Most Iconic Band in History.’ I’m serious! A few of the chapter titles should titillate your curiosity:

Create a Unique Business Model
Choose a Memorable Brand Name(s)
Build a Diverse Team
Be Yourself
Cut Out the Middleman
Free Your Content
Partner with Entrepreneurs
Give Back
Do What You Love (to do)

Who’d a thunk? There’re some pithy ideas contained therein. Just don’t lose sight or hold of business common sense, tempered by your abilities and skills, personal and corporate experience; and most important of all, your level and focus of attitude and motivation!

VII.

In case you haven’t noticed – and why should you? This is the 100th blog for me; originally posted at Manufactured Housing Merchandiser’s website, now a fixture at community-investor.com

When planning this landmark 100th blog, I considered reaching back and sharing our some MHIndustry & LLCommunity timeline and media history. But as interesting as it might have been for some, it’d likely be boring and uninteresting for the majority. So…

Suffice it to say, when I started penning this blog two years ago, the last thing I needed was another recurring (weekly) writing assignment. But know what? It’s become a pleasure ‘staying alert’ to newsy notes, then articulating (hopefully) informed opinions, to share with friends and colleagues. The most gratifying part of the blogging experience has been the regular, and generally very positive feedback, from readers. For that matter, including material contained herein, much about which I write comes directly from you who do phone, email, and otherwise communicate musings ideas, and opinions to me. So, please don’t stop. And here’s why…

‘In real time, our MHIndustry & LLCommunity asset class, for the first time in its’ collective 60 year history, has ongoing, very public, honest – to – goodness, give – and – take, interpersonal and corporate intercommunication!’ We must preserve and protect this means that brings us together, by participating in and supporting the opportunity.

If you haven’t already seen, or have, a copy of the ‘Official Manufactured Housing Resource for Print & On – line Media, plus Social Networking Sites’ (One of 12 Signature Documents), request a ‘free’ copy when you register for the above – referenced Networking Roundtable, or subscribe to the Allen Letter professional journal.

VIII.

Finally, a word about the future. Not making a grandiose announcement here, just encouraging you to ‘stay tuned’ in the near and intermediate future. Carolyn and I’ve built a significant manufactured housing and landlease community business consulting, publishing, and training platform during the past 30 years. We’ve begun making preliminary plans to, hopefully, ensure its’ continuation beyond our tenure. All I’ll say at this point, is my (our) desire, mission, goal – for the two dozen work products (e.g. profit centers, like the ALLEN REPORT, Networking Roundtable, two newsletters, book publishing, MHM classes, and this blog, to name a few) comprising GFA Management, Inc., dba PMN Publishing, is to see the entity continue in toto, if possible. Maybe as a for – profit business enterprise like it is today; or, perhaps institutionalized (e.g. as part of a not for profit trade or advocacy group), given the right and timely venue, and favorable circumstances. As usual, your thoughts on this subject are welcome….

*****

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

Fight, Flight or Freeze?

+ more on, ‘better to lease than be S.A.F.E.d’; MHImage & YOU; Tony’s Musings; CHURN; &, ‘Four 7 Year Cycles for Your Landlease Community!

I.

My late foundryman Dad was wont to say, “Learn something new every day!” Well, today is one of those days. Heretofore, when teaching Manufactured Housing Manager (‘MHM’) certification candidates the finer points of Developing Good Resident Relations, in general; and, ‘conflict resolution’ in particular, I’d advise: “When having to be involved, get feuding parties seated, eliminating the fight and flight alternatives.” Well, recently read where those two ‘Fs’ are parts of a triad known as the ‘fight-flight-freeze response’ to perceived threats. I guess knowing two out of three wasn’t all that bad. Anyway, our personal – and perhaps by extension, the manufactured housing industry’s response, during the past decade, to its’ perceived threat of annihilation, has been what? Fight it off, run from it, or freeze until deciding the nature of the threat?

Perhaps all three! How so? At the turn of the century, MHIndustry’s perceived threat had to do with loss of national housing market share to the site – built housing folk. At which time, one can make a pretty good case that HUD Code housing manufacturers, for awhile, successfully ‘fought the competition’ by aggressively entering the land/home (package) market, via local housing market MHRetailers, selling and siting our unique, affordable, very homelike housing product. Remember the huge multisection homes (We called them ‘doublewides’ in the 1970s & 80s.) and 80’ long singlesection homes of the time?

But then, self – interest in keeping manufactured housing’s ‘372,843 unit shipments per year’ production lines humming, motivated collaboration with third party sources of chattel (personal property) lending, and owners/operators of newly developed/expanded landlease (nee manufactured home) communities, to offer ‘no money down’ deals, adjustable rate and ‘teaser rate’ mortgages, as well as reduced or ‘free site rent’, soon turning our customers upside down financially. At that point the ‘fight’ went out of our game, and the housing finance segment of our industry took ‘flight’ – yet to return, ten years later! WE became the perceived threat (i.e. Our own worst enemy!); soon prompting the tongue in cheek motto, ‘Be a stud! Sell a HUD!’

By the time year 2008 rolled around, another housing bubble (site – built) burst. And since third party chattel finance hadn’t returned to the HUD Code housing industry, the manufacturing segment ‘froze in place’, due to lack of these options (i.e. Few land/home opportunities & minimal chattel loans for homes in LLCommunities), forced to await eventual amelioration of these perceived ‘lack of financing’ threats. And frankly, that’s where we continue to be today, ‘frozen in place’; but with one notable exception: (property) owner financing of new and resale homes on – site in landlease communities (‘LLCommunities’). This contemporary reality has been the subject of several recent blog postings at this website; so, if you want to learn more, scroll back through the archived blogs to detail the word picture just painted. You’ll learn enough to fill several days with fresh knowledge….

II.

Last week’s blog posting, also Part II, introduced the MHIndustry and LLCommunity’s new bromide: “Better to lease than be S.A.F.E.d!” This new truism was reinforced in Ken Rishel’s latest Chattel Finance Newsletter, when he answered a query about implementing ‘rent to buy’ and ‘lease to own’ programs, to avoid regulatory issues of the S.A.F.E. Act. Ken writes: “…these are still credit transactions and…subject to the S.A.F.E. Act.” (+) “There could even be criminal charges brought under the RICO statutes, given the theory (a business enterprise) is engaging in an ongoing conspiracy to evade the law.” P.2. (lightly edited. GFA) Reach Rishel via (217) 971-3968.

For some, looks like now might be time to, pull out those dusty old rental homesite leases of the late 1970s and early 80s, update them, and use to fill vacant LLCommunity sites with leased homes!

III.

I call this, ‘a LLCommunity owner’s lament’. It was sent to this blogger in response to an earlier posting at this website, regarding ‘everyone’s role’ in working to improve the pubic image of our affordable housing product and community lifestyle.

“I’ve spent lots of money over the years upgrading my properties, only to wind up selling them to buyers who let them quickly fall into disrepair. I worked diligently to improve the image of these properties in their local housing markets. Appears the majority of my efforts and investment have been for nothing! When others (i.e. new LLCommunity owners/operators) don’t follow the good precedent set for them, it’s not only discouraging, but soon contributes to our ongoing public image challenge. Just needed to vent!”

How many others feel the same way? Maybe too many times we boast about ‘taking over troubled properties’, turning them around, effecting improved curb appeal and enhanced profitability, without realizing there’s a too frequent down side to some realty transactions. What to do? It’s pretty obvious. Whether a present day owner/operator, or a new, would – be investor in the asset class, each of us has a day – by – day responsibility to ‘do our part’ to enhance the public image of HUD Code manufactured housing and LLCommunities! Are you doing your important part?

IV.

Call this retro (i.e. back; backward; behind) manufactured housing! It’s not going to recur, but interesting nonetheless, for a blog responder to recall, in “…1970, my first full year in this business, there were no national floor plan lenders, and personal (chattel) financing was at high rates, for a seven year term. Home manufacturers collected a 10% down payment when home was ordered, then freight charges and a trust agreement given to the ‘toter’ (a.k.a. transporter) upon delivery of the new home, to be taken to the bank to collect a check. Back then, the only place to put ‘dem mobile homes’ was in ‘dem parks’, of course. And by 1972 we were shipping 500,000 homes. No HUD, some state regs, and MHMI tags. Even then, those (dealers) committed to serving the customer with a quality product and great service, won big time. What are we missing? There’s no single reason for us to fail, except us. Hmm.” N

V.

Even Tony Kovach, publisher of ezine Manufactured Home Marketing Sales Management got into the act this past week, with some pretty salient observations as to what’s ‘going on’ and ‘not going on’, relative to manufactured housing, on the national scene. Here’re his four points: 1) Obama staff points out past administration favored home ownership, this one promotes rental housing; 2) FHFA/GSE’s have been, and continue to work mightily, Not to Lend to effect housing purchases; 3) FHA Title I’s new stringent financial guarantee guidelines, for lenders, keeps many lenders away; and, 4) now appears to be ‘safer & easier’ to lease homes in LLCommunities than having to comply with the sifting sands of the S.A.F.E. Act, when selling and financing. Appears our federal government has switched 180 degrees away from home ownership, to strong emphasis on leasehold interests. (847) 730-3692

VI.

Last week’s blog hinted this week, I’d explore the sensitive subject: ‘To Churn or to Nurture’? Specifically; when owning/operating a LLCommunity, and or selling new and resale homes on – site, deciding whether to ‘make easy money’ or ‘build lasting value’. Well guess what? Didn’t get far into that heady dual topic before realizing how many toes I’d likely be walking on, when citing even a few examples of churn. Still want to explore the subject, just need more time to research, marshal my experiences, and consider my thoughts on the subject. For now, suffice it to know, ‘churning & nurturing’ have been around as long as there’ve been rental properties. The matter received quasi official MHIndustry attention at the first National State of the Asset Class (‘NSAC’) caucus in Tampa, FL., on 27 February 2008, when identified as one of Five Action Areas (Still in play!), by 100+/- LLCommunity folk gathered from throughout the U.S., to wit:

“Value proposition. Ensure a fair interplay of housing product pricing, financing, and value, with site rentals and more….”

Churn? I’ll leave you with a defining thought or two about the word and concept. Even a classic Webster’s dictionary’s ‘take’ on the word provides a viable starting point: “To engage in excessive trading (of stocks, etc.) to increase commissions”. Hmm. How’s that translate to the field of realty in general, home sales in particular? “To facilitate excessive turnover of contract sale homes, to increase (number of) down payments, commissions, and other fees.” Churn was relatively common practice in the late 1970s, as owners/operators segued from ‘rental units’ to ‘contract sale’ transactions, often when readying their property(ies) for sale (marketing). Hopefully this is far less a reality today, as enlightened owners/operators realize ‘building value’ (i.e. stable, rent – paying clientele, a.k.a. residents) is easier, more cost effective, and more worthwhile in the long run, than churning ‘easy money’ in the short term. But that’s as far as I’m comfortable taking that subject this week.

VII.

Many readers of this weekly blog posting are also paid subscribers to the Allen Letter professional journal. Know the September 2010 issue features an expanded work originally penned by Richard ‘Dick’ Bessire of California – domiciled, Bessire & Casenhiser (One of this nation’s, and our industry’s largest, oldest, and most respected fee property management firms!). The piece features four Seven Year Cycles, apropos to professional property (i.e. realty) management, but applied specifically to the landlease community real estate asset class! My guess is, many owners/operators will clip, mount and retain this ’28 year cyclic business (operations) plan’ for reference, time and again, during the years ahead. Don’t miss this unique learning experience opportunity! To subscribe, phone the MHIndustry HOTLINE cited at the end of the following paragraph.

VIII.

End Note. To those blog readers accessing this week’s posting via a blast email message, know there’s a 19th International Networking Roundtable brochure attached to the conveying email message. If you haven’t registered to attend yet, don’t delay. We’re already more than halfway to our max number of attendees. Remember; this is the sole national 2 ½ day gathering designed specifically for the advanced educational, interpersonal networking, and realty deal – making needs of all LLCommunity owners/operators in North America! Questions? Call the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

******

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

A Salmagundi of MHIndustry News & Views….*1

I.

Just learned Automated Builder magazine, after switching from print to online format (i.e. ezine) recently, now “will take a furlough”, replaced by a monthly online AB newsletter, at an annual subscription rate of $50.00. Phone (805) 642-9735. Many of us ‘in the MHBusiness’, cut our industry baby teeth reading AB publisher Don Carlson’s informative and often comment – provoking editorials. Tragically, this is the second online ezine to cease publication (Think The Grissim Report) since the June debut of factory – built housing’s Official Resource for Print & On – line Media directory. As related side; what’s John Grissim up to these days? Read the September issue of the Allen Letter professional journal to find out. Hint: ‘It’s a mystery!’

Know what this means? Here’s what remains of manufactured housing media: ONE advertiser – supported print magazine, the Journal; TWO subscriber – supported print newsletters: the Allen Letter professional journal & the Allen CONFIDENTIAL! (Phone 317/346-7156); and, TWO online monthly ezines, Chattel Finance Newsletter (free) via captivefinance.net & Manufactured Home Marketing Sales Management (free) via MHMSM.com. Then there’re Manufactured Housing Institute’s (‘MHI’) Community Connections online newsletter, published quarterly for National Communities Council (‘NCC’) members (Phone 703/558-0678); and, Dick Moore’s (Think MHRetailer par excellence) INDUSTRY PERSPECTIVES (free) online newsletter, which appears when he gets the itch to share his extensive knowledge, and express strong opinions, on various manufactured housing issues. And that folks, is all that remains!

II.

“Better to lease than to be S.A.F.E.d!” is a new landlease community bromide making the rounds these days.*2 The point seems to be, there’re less regulatory hurdles to clear ‘leasing a manufactured home on – site in a LLCommunity’, than when engaging in property owner financing of new and resale homes, via either ‘captive finance’ or ‘buy here – pay here’ chattel loan underwriting and servicing procedures. What do you think? For more information on this timely and critical topic, read Manufactured Housing $$$ Primer, available for $29.95 postpaid, by via the MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764. Also FYI! A Captive Finance Workshop is scheduled for 24 & 25 August in Chicago, IL. Phone (217) 971-3968.

III.

At the annual Hall of Fame Induction Banquet, hosted by the RV/MH Heritage Foundation, at its’ marvelous museum and library facility, in Elkhart, IN., on 2 August, we learned of the passing of Professor Carl Edwards, one of our industry’s few remaining genuine pioneers. Carl was a good friend to many, and has long been regarded and respected as manufactured housing’s de facto historian! His last book, Homes for Travel and Living was published in 1977, and a copy sits on a shelf in my office library. What I remember most about Carl, however, is a series of his reprints, dating back to 1970 – 74, titled: ‘Different Dwelling Costs – Mobile Homes as Housing’s Best Buy’. These served as the basis for some of my earliest trade magazine writing in the mid 1980s.

Speaking of the RV/MH Heritage Foundation’s Museum and Library facility, I encourage you to financially support this guardian of our collective RV/MH business legacy; better yet, visit the large the new facility, located right along the I-80/90 Toll Road on the East side of Elkhart, IN. Phone (574) 293-2344 for more information. Carolyn and I’ve donated annually, for more than a decade; won’t you join us? And consider hosting your firm’s next industry – related training or social event in one of the facility’s large, attractive display halls or meeting rooms! You’ll be glad you did!

IV.

Let’s revisit the final two paragraphs of last week’s blog posting. Why? Both generated thoughtful remarks you need to read! Remember, these provocative paragraphs were penned by one of the few true, decades – seasoned sages remaining active in the MHIndustry:

• “Relative to the long – awaited Title I program. As you probably know, the final regs are out; and, while GNMA has lifted its’ moratorium, it’s also established (stringent financial guarantee) guidelines that effectively eliminate all but two (Really one, when you consider who owns the two firms) chattel lenders from participating in the program, virtually ending competition among said lenders!” Hmm. First we lost many lenders; then most MHRetailers; next our housing manufacturers; and now, possibly 50 percent of the remaining lenders?

One of several responses. “I share the same concerns, from the portion of the blog that relates to Title I and GNMA requirements. Between these requirements, FINREG and the S.A.F.E. Act, the only people who’ll be left, are the exact ones the government is afraid of, the TBTF (‘Too Big to Fail!) folk. They’ll be the only ones able to absorb the costs that continue to appear, as we try to conduct compliant chattel loan programs. For example, see Friday announcements of bank closings. Never is a TBTF bank listed, just your small community banks caught up in all the new regulation requirements forced upon them. So, if the TBTF folk are not loaning money, and the small community banks don’t, who are we left with?” PB (lightly edited)

• “And George, except for selling to Seniors, home financing is the key to success in our industry! As long as we market home products and LLCommunities to low and moderate income buyers, who’re mostly credit – challenged, we’re going to have difficulty obtaining viable home financing programs anywhere. Answer? While there’s no simple solution, greatly and widely ‘improving our image’ with the general public, will help to move us up the credit score chain to more credit worthy buyers, and access new financing options for home sales.” Hmm. This gets kinda personal. So, what will YOU do, even ME, to address this image issue?

Here’s how some of you replied to the second paragraph. Again, comments lightly edited.

“I agree we need image enhancement. We hear about different efforts being started, but then seems to dissipate, and we never get the REAL reason for its’ demise. Do you know, or can you get to the bottom of ‘why’ these plans never come to fruition? Strictly money? Who’s going to pay? Who is in control? At the (17th) Networking Roundtable in Mystic, CT., the (home) purchasers agreed to add a lot of money to each house (sold) to fund a program. (One manufacturer) seemed to be enthusiastically in favor of it. Does (another manufacturer) not see this as favorable to them, or do they want to do it on their own, for their own brand only?” JD

“Your (sage’s) last paragraph poignantly hammers the smart MH guys and gals. We are not promoting ourselves! While we spend hundreds of thousands of dollars playing chess (lobbying) with the bureaucrats in state houses and DC, we ignore our customers. Even if we had chattel (finance matters) handled, would customers be visiting our sales centers/dealerships? We must require our (trade) associations to get busy promoting, advertising, and showing our (housing) products to the masses! Who needs financing when we have no customers of substance? The author of that paragraph needs a hug ‘attaboy’ – or ‘girl’, for seeing ‘where some of our cheese is hiding’ – right behind our own lack of promotion!” NP

Point? These and additional, similar responses, arrive from the grassroots of this industry, throughout the U.S. There’re messages here to be heeded. Who’s listening?

V.

Next week will mark the posting of my 100th blog, if I’ve got the count right; might be #99. Anyway, as some of you know, this blog series’ began on Manufactured Home Merchandiser’s website more than a year ago, before the print trade magazine ceased publication; then it segued to the community-investor.com website. I want this to be a special posting, and have already started working on it. A possible title and topic might be: To Churn or To Nurture? Deciding to ‘make easy money’ or ‘build lasting value’, when owning/operating one or more landlease communities! What do you think? A much needed discussion? Or; too heady, controversial, and simply a ‘none of your darn business’ topic? But hey; if you’ve got a better topic idea, let me know ASAP via this website, email: gfa7156@aol.com, or either of the aforementioned telephone numbers.

VI.

In little more than a month, 200+/- of the most active LLCommunity owners/operators in North America will gather, from 15 – 17 September 2010, at the beautiful Pointe Hilton Tapatio Cliffs Resort Hotel in Phoenix, AZ., for 2 ½ days of the Best Education (nearly two dozen or so seminar & panel offerings), Interpersonal Networking (at nearly a dozen social events and meals), and superb Deal – making venue (Beginning with Marcus & Millichap’s State of the Asset Class presentation of dozens of LLCommunities ‘for sale’ – and much more) available anytime, anywhere in the MHIndustry and LLCommunity asset class! CAVCO and Champion Homes plan to have Community Series Homes (‘CSH’) on display, adjacent to the International Networking Roundtable’s meeting rooms. Come and meet HUD Code home manufacturers’ Business Development Managers (‘BDM’) who know how to ‘talk LLCommunity’, when it comes to new home sales! Keynote presenter this year? Randy Rowe, of Green Courte Partners & American Land Lease renown returns! Don’t miss ‘his take’ on ‘what’s going on’ throughout the MHIndustry and LLCommunity asset class these days! (317) 346-7156.

One hiccup to this year’s INR schedule. Had hoped to provide a side – by – side opportunity for our two national advocacy bodies to tell their respective stories during a panel session. This isn’t going to happen. BUT, have already arranged for an equally informative and equally stimulating panel session relative to….

VII.

By now, ‘you know me’; more accurately, ‘my writing style’, from previous blog postings. I oft leave the best news till last, at the very end of the weekly blog. While not quite true this time around, I do indeed leave a titillating teaser tidbit with you! In either the August 22nd or 29th blog posting, at this website, Watch for a very Special & Timely Announcement, of a Most POSITIVE Nature! Hint. ‘The South may indeed rise again!’

In the meantime; will I see you in Chicago on the 23rd, 24th & 25th of August? How ‘bout in Phoenix, AZ on the 15th, 16th & 17th of September? Sure hope so! Those two venues are followed by MHI’s annual meeting in Denver, CO., on the 27th & 28th of September; and , the Urban Land Institute’s (‘ULI’) Manufactured Housing Communities Council (‘MHCC’) – not HUD’s MHCC (Manufactured Housing Consensus Committee), on the 12th thru 15th of October in Washington, DC. Whew! How does one keep abreast of these workshops, roundtables, annual meetings, and council (a.k.a. ‘Think Tank’) gatherings? When YOU can’t attend, know the event descriptions and proceedings are almost always reported in the pages of the Allen Letter professional journal! One more reason many of your peers, if not yet you, subscribe! (317) 346-7156.

End Notes:
1. Salmagundi. A hash or stew; any mixture.
2. Safe And Fair Enforcement of Mortgage Licensing Act

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

LLComunities (nee MHCommunities) cum Lendlease Communities! Huh?

I.

Translation please! First the long version. Back in the 1950s they were ‘trailer camps; morphed to ‘mobile home parks’ in the 1970s; then, with publication of two J. Wiley & Sons development and investment ‘how to’ textbooks, and emergence of several real estate investment trusts (‘REIT’s) during the 1990s, enjoyed a decade long panache as ‘manufactured home communities’ (‘MHCommunities’). However, given manufactured housing’s ‘chattel finance bubble busting’, at the turn of the Millennium, along with the surprising realization six different types of housing are now routinely sited in this unique income – producing property class, ‘landlease communities’ (‘LLCommunities’) became, and continues to be, the moniker of choice among most investors, lenders, journalists, and trade advocacy bodies. There’s also widespread recognition, that since year 2000, the on – site marketing, sale and property owner – financing of new and resale homes has become commonplace, suggesting a future terminology refinement might be in the works, i.e. maybe ‘lendlease communities’, whereby property owners routinely ‘lend’ homebuyers capital with which to acquire new and resale homes on – site, then ‘lease’ them the homesite on which their new or resale home is installed. The short definition? ‘LLCommunities’, formerly ‘MHCommunities’, will likely continue to be known as ‘LLCommunities’, but with a chattel finance nuance.

Last week’s blog posting, presaging the previous paragraph, was titled ‘Ongoing Transition from TPL (third party lenders) to Owner Financing’. As its’ author/blogger, the heavier – than – usual reader response was not only welcome, but contained a healthy mix of Good News & Bad News. First the really good (confirming) stuff:

II.

“Top notch post! This is certainly one of the most remarkable blogs I’ve seen….” CM

“Great article again George. Thanx.” NB

“George, I greatly enjoy your blog, especially the one on Owner Financing. (Starting in) 2007, I advertised a few seller – finance MHs in my park. 30 deals later, I can say it is great! I have had one ‘walk away’ repo. I structure the deals so they make sense for the buyer, thereby solidifying my park occupancy. I believe my (LLCommunity) would be in a serious state of decline had I failed to act when I did.” SS

“There is no doubt, much more to the story than you’re telling, and I’m glad you don’t mention names. Just better that way. You continue fighting, on our behalf, and I want you to know (there’s) at least one park owner in ________ who appreciates all you’re doing to keep us from doing down the tubes.” DR

“Good that the LLCommunities have it (presumably, ‘chattel finance matters’) in hand. It is a huge challenge, that can only build. I see the quagmire, George.” NC (Go ahead, look it up. Quagmire well posits our capital sourcing challenges and regulatory climate ahead.)

“Just got thru reading your blog on TPLs to Property Owner Financing. Thank You. There is really nothing I can add to this that you’re not aware of already, but I’ll vent if nothing else…” DB

III.

Now for the ‘me bad’ stuff. I was roundly and rightly criticized for an error I let slip into my description of MHI’s summer meeting, off – agenda financing session, during mid – July in Washington, DC. I’ve since corrected the error: said meeting was requested by FHA not FHFA. Plus, my computer omitted half the opening paragraph of what was originally posted; that’s now been restored.

Having now perused informal, unofficial notes penned by uninvited MHI dues – paying members present at said meeting, I believe I was right in my earlier observation that, even to date, there’ve been no written proceedings describing what was shared by and among (What at one point was described as…) ‘the survivors are in the room’. Like my peers, I applaud FHA for being engaged on our (finance) issues; and even understand why some ‘insiders’ loathe sharing information and control with peers, during what could be nigh end days for our industry. And for that very reason, this work session should have been announced and open to any MHI direct dues – paying member who might have contributed knowledge and ideas, on one hand; or been in a position to share information, even rally industry wide support, on the other.

IV.

So, where do we go from here? For starters, you’re already doing as I’ve requested time and again; you’re communicating reactions, thoughts, ideas, and frustrations relative to HUD Code manufactured housing and the landlease community real estate asset class. Don’t stop! Respond via this website or the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. That’s how I obtained all the commentary written into this blog posting!

V.

Next. If you own/operate one or more LLCommunities in North America, plan to join your peers at the 19th annual International Networking Roundtable, 15 – 17 September 2010, in Phoenix, AZ. If you haven’t already received material on this generally ‘by invitation only’ event, let me know (317) 346-7156, and I’ll mail or email it to you! Registrations are now arriving daily, and our maximum participation will be 200. Product and service vendors with a history selling to LLCommunities are also welcome to attend. Same procedure.

Furthermore; did you read Dick Moore’s INDUSTRY PERSPECTIVE # 73 online MHIndustry newsletter distributed Friday, 30 July? If not, phone ((901) 872-4446 to request a copy. This is one MHRetailer who ‘tells it like it is!’

Finally; received the following lightly – edited paragraphs from one of the few true, decades – seasoned sages in the MHIndustry:

• “Relative to the long – awaited Title I program. As you probably know, the final regs are out; and, while GNMA has lifted its’ moratorium, it’s also established (stringent financial guarantee) guidelines that effectively eliminate all but two (Really one, when you consider who owns the two firms) chattel lenders from participating in the program, virtually ending competition among said lenders!” So, does this mean Title I is, again, ‘dead in the water’ for now, where MHIndustry chattel lending is concerned? Chattel finance – challenged businessmen and women want to know….

• “And George, except for selling to Seniors, home financing is the key to success in our industry! As long as we market home products and LLCommunities to low and moderate income buyers, who’re mostly credit – challenged, we’re going to have difficulty obtaining viable home financing programs anywhere. Answer? While there’s no simple solution, greatly and widely ‘improving our image’ with the general public, will help to move us up the credit score chain to more credit worthy buyers, and access new financing options for home sales.”

What say you? Are these sage’s remarks ‘right on’ or do you feel they ‘miss the mark’? If I get enough and soon response, either or both topics might be worthy fodder for next week’s blog posting. Will be listening for you on the MHIndustry HOTLINE!

*****

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

Ongoing Transition from TPL to Property Owner Financing….

I.

Turns out, all the while we were talking of a maybe Grand Conspiracy to kill the MHIndustry, and weathering our own Near Perfect Storm, new HUD Code home shipments slipped to a 60 year nadir; another, albeit undercurrent, was also present and building in volume and momentum….

Some call it a temporary cum permanent supplanting of ‘third party lending’ (‘TPL’) chattel (personal property) lending on new and resale HUD code homes, by the now widespread practice of property owner financing (a.k.a. ‘self – finance’, via either the ‘captive finance’ or ‘buy here – pay here’ method), throughout the 50,000 property landlease (nee manufactured home) community real estate asset class.*1 Huh?

Yes, you read that right; and for that matter, have been reading and hearing about this gradual change in primary chattel lending situs for months now, though it’s been evolving for a decade – this time around. However, during the past 60 days, subsurface frustration, on the part of some TPLs, regarding capital sourcing, lack of secondary markets, new financial regulations, and other aspects of chattel lending, including aforesaid property owner financing, has bubbled to the surface in industry conversations. To better understand what’s happening, here’s one industry observer’s view of the chattel finance timeline:

First official, public recognition of the phenomenon, where property owner financing of new and resale home transactions on – site in landlease communities (‘LLCommunities’) was replacing TPLs, as primary chattel lending sources, occurred at the National State of the Asset Class (‘NSAC’) caucus, in Tampa, FL. on 27 February 2008. One of Five Action Areas identified by the 100+/- caucusing LLCommunity owners/operators, states: “Financing and servicing of new and resale home transactions on – site, and financing of LLCommunities. The first half this action item is in place….” Doesn’t get much clearer than that.

A year and a half later, all TPLs were invited to participate on a Chattel Finance Panel at the 18th International Networking Roundtable in Chicago, IL., during September 2009, declined. Only one representative from one TPL attended. A telling gesture.

So, at the Manufactured Housing Institute’s (‘MHI’) Winter meeting in southern California, later that same month, a small group of the asset class’ largest property portfolio owners/operators decided to retain the services of a Washington, DC – based consultancy to attempt to ferret out additional sources of chattel financing for LLCommunity use. This focused effort is ongoing, and may indeed see fruition during the months, if not year, ahead. Details, however, are CONFIDENTIAL, and otherwise unavailable for publication in this blog posting, at this time.

During the timeframe, January through April 2010, it was recognized there’d been no new chattel finance information articulated since MHI’s former staffer Joe Owens’ penned a seminal chapter, on this subject, in Development, Marketing, & Operation of Manufactured Home Communities, co – authored by George Allen, David Alley, & Edward Hicks, published by J. Wiley & Sons in 1994. So, in short order, more than two dozen MHIndustry experts contributed chattel finance – related ‘How To’ material for the compilation and publication of the Manufactured Housing $$$ Primer, distributed at the Manufactured Housing Congress in Las Vegas, NV. Of the few surviving national TPLs (a.k.a. the ‘Big Four + 1’), only two contributed ‘self – descriptions of their chattel finance products’.*2

June 2, 2010, turned out to be a pivotal day in MHIndustry history, where chattel finance in public and government arenas, is concerned. A national Manufactured Housing Finance Roundtable was sponsored and co – hosted by Congressman Joe Donnelly (D-IN) and Federal Housing Commissioner David Stevens. The event occurred in Elkhart, IN, “…attended by 60 business executives, lenders, politicians, and representatives from federal regulatory agencies – but no GSE’s….”*3 Bottom line? As an industry, we learned once and for all, we’re truly ‘on our own from now on’, when it comes to financing most on – site, new and resale home sale transactions requiring chattel loans! Interestingly; whoever set up that meeting ensured every TPL had a seat at the Roundtable’s ‘square table’, while a greater number of major LLCommunity portfolio owners/operators (i.e. property owner ‘lenders’) also present at the event, were left to sit/stand around the perimeter of the meeting room. Another telling gesture…

Then there was MHI’s Summer meeting in Washington, DC, 13 – 15 July 2010.*4. Dues – paying members, aligned with the National Communities Council (‘NCC’) division, but with strong chattel finance bias, felt ‘less than welcome’ at Financial Services Division meetings. And unbeknownst to the majority of paid registrants at the Summer affair, an off – agenda meeting (Thursday) was requested by FHA  representatives desiring a workshop with TPLs. While this is ‘fine and good’ in its’ own right, it’s ironic the segment of the MHIndustry maybe doing the ‘lions share’ of chattel lending these days (i.e. LLCommunities), was generally not invited to said meeting – with the exception of two senior executives from two large property portfolio firms. Results? Hard to tell. While a request has been made for a copy of the ‘proceedings’ from said meeting, nothing has arrived to date. However, other sources will likely share this information before next weekly blog posting. So, as they say, ‘Stay tuned! (to this blog)’ for more information to come….

Well, there you have the 2 ½ year timeline; realizing of course, property owner financing goes all the way back to near year 2000 and before. Frankly, many of us recall a similar spate of property owner financing, occurring during the late 1970s, when we filled thousands of recently – developed but vacant rental homesites, with mostly resale homes sited as rental units and or ‘contract sales’. That time around, we were reeling from the effects of implementation of the new HUD Code, in 1974 – 1976, when new home shipments plunged from a record high of 575,940 new ‘mobile homes’ in 1972, down to 250,000+/- homes shipped per year, for the next two decades plus. This time around? Are memories so short we don’t recall shipping 372,843 new manufactured homes during 1998, by ‘turning our customers upside down’, financially; then by year 2000, experiencing our own ‘housing bubble bust’ eight years ahead of the one presently paralyzing site – built housing?

So, where does all that leave us today? Depends on who you ask. All I can offer is my opinion. But for what it’s worth, and sad to say, TPLs, like the no – show GSEs (referring to aforementioned 2 June 2010 Roundtable in Elkhart, IN.) are going nowhere, Title I ‘PR’ and hype notwithstanding, for the time being. On the other hand, LLCommunity owner – financing, of new and resale HUD Code homes on – site, where the property owner has deep enough pockets, or sufficient local lending contacts, to engage in self – finance, of either the ‘captive finance’ or ‘buy here – pay here’ method, is doing better than OK. But given uncertain implementation of the federal S.A.F.E. Act (‘Safe And Fair Enforcement of Mortgage Licensing Act’), and other related regulatory legislation of late, there’s been a noticeable retreat, by generally smaller LLCommunity owners/operators, and portfolio folk, from the public scene. Makes sense. When you get right down to it, LLCommunity owners/operators are the last private and practical source of truly inexpensive durable housing, flexible affordable lending/borrowing, and professional property management! You’ve gotta ask yourself: ‘Where else can a would be homebuyer go, to purchase a 3BR2B resale home for $20,000.00. – 50,000.00 (depending on what’s available in the local housing market); and, with a modest down payment, plus whatever amount ‘works for them’ to make dual housing and rental homesite payments each month, become a bona fide homeowner?’ Answer? Nowhere else in the non – subsidized rental payment or conventional homebuying world! And in this unique ‘affordable housing environment’ (i.e. manufactured housing in landlease communities), homebuyers, oft with credit scores within the 580 – 620 range, build equity as well! We are indeed a National Treasure well worth preserving!

II.

Hey; more and more ‘blog readers’ are communicating thoughts, opinions, and ideas to me via this website, email (gfa7156@aol.com), phone (317) 346-7156, and c/o Box # 47024, Indianapolis, IN. 46247. Become one of my many valued information resources and contact me with your input today! The more you help me, the better informed we will all be during the weeks and months ahead!

III.

If you own one or more LLCommunities, and read this blog, you should be planning to attend the 19th annual International Networking Roundtable in Phoenix, AZ. @ 15 – 17 September 2010. More than 50 have already registered, and max allowed is 200. So, don’t delay. While there’s a Roundtable brochure on this website you can use, also phone and I’ll send you one. This is the premier annual educational, networking, and deal – making event for all landlease community owners/operators in North America!

IV.

You’ve probably already noticed, I frequently reference news notes, stories, and statistics published in the Allen Letter professional journal @ $134.95/year; and occasionally, the Allen CONFIDENTIAL! (Most of what’s contained in the latter periodical can’t be reprinted here or elsewhere. Subscribe and learn why….) @ $950.00/year. If not already a subscriber, to either or both monthly business newsletters, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633 –4764 to do so. Also able to subscribe via this website. Join the hundreds who read the AL each month, and the dozens of top corporate executives who read the TAC! ‘first thing each month’!

V.

FLASH! Do you have personal access to the Urban Land Institute’s Urban Land magazine? Well, the July/August 2010 issue, on page # 62, carries this feature: ‘Today’s Manufactured Home Community’. Contains lots of inside information about this unique income – producing property type. Unfortunately, ULI does not sell single copies of their professional publication, but a reprint of this article will appear as a reprint lagniappe in an upcoming issue of the aforementioned Allen Letter professional journal. Just one more reason to subscribe today….

*****
End Notes.

1. For a more complete description of this phenomenal change, read the July 2010 issue of the Allen Letter professional journal, available by phoning (317) 346-7156.

2. Ibid., and GSE: government – sponsored enterprises. Also, to order your copy of the Manufactured Housing $$$ Primer, phone the above number @ end note # 1.

3. For additional information on MHI’s Summer meeting visit our blog archive for week of 18 July 2010.

*****

George Allen, Realtor®, CPM®Emeritus, MHM
Consultant to the Factory – built Housing Industry &
the Landlease Community Real Estate Asset Class
Box # 47024
Indianapolis, IN. 46247

POINTs & COUNTERPOINTs

MHI’s Summer Meeting & MHARR; Super Symposium & new initiatives; Renewed Effort to Unify MHIndustry Voice in Washington & Grand Tour!

‘CAPITALISM Pays For SOCIALISM!’ read the bumper sticker on the rear bumper of a car ahead of me, as I drove into Washington, DC., last week. Later, as I checked into the Tabard Inn (‘Oldest continuously operating hotel in Washington, D.C.’) and my $113.00/night room (Shared bathroom down the hall) – otherwise $150+/- per night, with in – room facilities, I reflected upon how I get to make trips and choices as a citizen and businessman in this great country. And it got me to thinking how, at least in the world of free enterprise, how we continually use our talents and abilities, experiences and history, attitudes and motivation, to make key and timely decisions, ultimately spelling SUCCESS or FAILURE, for our employees, employers and businesses. Sincerely hope you’re as appreciative of this great country as I am! Are you?

I

Manufactured Housing Institute’s (‘MHI’) annual Summer meeting in Washington, DC., from 13 – 15 July, according to the registration list, attracted 95+/- participants. Run the numbers. Less seven government workers, 18 MHAssociation execs, and maybe five ‘no shows’; of the 65 remaining ‘direct dues paying members’ & ‘certified representatives’, nearly one third, exactly 20, were landlease (nee manufactured home) community owners/operators. Why is this important to know? Read on…. On a more positive note, Mark Weiss, Senior VP of the Manufactured Housing Association for Regulatory Reform (‘MHARR’) attended the Manufactured Housing Executive Council’s (‘MHEC’) meeting and other functions. First time this has happened in awhile. And know that quiet plans are afoot, to increase these participation numbers during 2011; both overall, and within the landlease community’s (‘LLCommunity’) advocacy body, specifically, the National Communities Council (‘NCC’) division. Are YOU a direct dues paying member of MHI? Perhaps YOU should be! To do so, phone Thayer Long via (703) 558-0678 and tell him ‘George sent me!’

II.

Appears the SUPER SYMPOSIUM movement is nearly dead. Oh, there may be a third symposium hosted by the reinvigorated Georgia Manufactured Housing Association (‘GMHA’), under the executive leadership of Jamie Hammons, but that’s probably the last one. Indiana Manufactured Housing Association/Recreational Vehicle Indiana Council (‘IMHA/RVIC’), in a budget cut, terminated their symposium guru after hosting at least two successful symposiums. The demise of this much – needed educational opportunity, when needed most, to teach LLCommunity folk How to Market & Sell New & Resale Homes On – site & Self – finance, is unfortunate if not tragic! BUT, look for a couple private, Free Enterprise initiatives to pick up this training slack during the months ahead. On 24 & 25 August, Precision Captive Funding will host their 12th two day Captive Finance Workshop, this time in Chicago, IL. To register, phone (217) 971-3968. AND, from 15 – 17 September, in Phoenix, AZ., the 19th annual International Networking Roundtable for LLCommunity owners/operators will convene, featuring nearly two dozen HOW TO seminars and panel discussions, best interpersonal networking in the asset class, unparalleled deal – making opportunities, and new Community Series (HUD Code) Homes on display! For a Roundtable brochure, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or visit this website.

III.

Were you invited to participate in a conference call earlier this month, intended to spawn an ‘Effort to Unify the Industry’s Voice in Washington, DC.’? Didn’t think so. While said call attracted participation by at two of the remaining HUD Code housing manufacturers, and a plethora of state MHAssociation execs, there was little to no representation from other segments of the MHIndustry, particularly the LLCommunity ‘side of the house’. There lies the first challenge to this otherwise needed re-unity effort. Sure, having ‘too many fingers in such a pie oft creates a mess’, but NOT including the only industry segment enjoying general business success these days, is like effecting a business startup with no capital. And, as opined during the aforementioned MHEC meeting, any would be leader of such a worthy cause should be present with his/her peers, in this case in Washington, DC., to motivate, answer questions and guide planning. And the bottom line issue is: Do we really need, or even want, a third party effort to this (unity) end, when the MHIndustry, on two previous occasions, has managed to ‘come together’ to support mutually desired federal legislation, e.g. the Manufactured Housing Improvement Act of 2000? Counterpoint? In previous blog postings, plans for a Grand ‘Once & For All! Tour, of seven regions throughout the U.S. during 2011, was described. Perhaps this is the practical, long range (i.e. distance and time) means to, among other things, bring re – unity to the MHIndustry & LLCommunity asset class, especially if MHI & MHARR lend their support to the effort. Interested in having the Grand ‘Once & For All! Tour come to your geographic area? Let me know by phoning (317) 346-7156 or responding directly to this blog posting. For more info on the tour, visit the blog archives.

IV.

DID YOU KNOW? During the past four months, no fewer than four new books and booklets, describing one or more aspects of HUD Code manufactured housing and the landlease community real estate asset class, have debuted? All four will be profiled in the August issue of the Allen Letter professional journal! AND, the August issue of the Allen CONFIDENTIAL! business newsletter will address the following pithy, timely and challenging question: ‘What would I / YOU do if selected, tapped, asked, elected, to become Chairman of the Manufactured Housing Institute?’ Be assured, that’s not going to happen to either of us, even though this position of past renown and present responsibility/authority has not been attracting any takers in recent months. That reality alone, makes the I / YOU question, just posed, all the more timely and poignant – as new HUD Code housing shipments continue to languish at a more than a 60 year nadir!

VI.

FYI. The CONSORTIUM of print & online publishers of periodicals, for the MHIndustry & LLCommunity asset class convened (All present but one!) once again, during MHI’s Summer meeting in Washington, DC. Know what? Such a trade publication networking body was tried unsuccessfully, a decade ago, when Community Management, Manufactured Home Merchandiser, Automated Builder, and Systems Building print magazines were still in business. Appears this group is going to blossom. If you publish a weekly or monthly trade pub for the MHIndustry & or LLCommunity asset class, and would like to attend the CONSORTIUM’s next meeting, 15 – 17 September 2010, in Phoenix, AZ., phone the MHIndustry HOTLINE to express your interest.

*****

George Allen, Realtor®, CPM®Emeritus, MHM
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class

Box # 47024
Indianapolis, IN. 46247

(317) 346-7156

What’s So Hard About Doing This? Part II.

Part I? Scroll Back One Week in the Blog Archives at this website!

Turns out, not surprisingly, we’re not the only ones who underperform.

“I (almost) give up! Guess I shouldn’t have been surprised when the manager of a WAWA Dairy Store in Blakeselle, PA brushed off a (my) suggestion that would’ve boosted her location’s business volume”

Minutes earlier, I’d exited I-80 and bought regular unleaded gasoline for $3.09/gallon ($3.00/gallon if I’d paid cash) from a local Exxon station. Angered at the predatorily high price of the gas, I purposed not to buy my lunch there, so drove less than a mile to the local WAWA store. Pulling into the parking lot, I was shocked to see their regular unleaded gas was selling for $2.75/gallon! I’d just overspent at least $5.00 on a tank of gas! As I paid for lunch, I asked to speak to the store manager, and told her:

“If you posted a sign at the interstate exit down the street, announcing your $2.75/gallon gas price, you’d get a whole lot more business – considering your competitor of charging 34 cents more per gallon.” Her response? “Oh, we’re WAWA, everybody knows us, we don’t need no sign.” Geesh.

I suppose one could say ‘That’s the difference, sometimes, between an employee and someone with skin (i.e. equity interest) in the game’ of business. But I think it’s more than that. It also has to do with making it a point to be on one’s game (e.g. Ready to perform!) at all times one is expected to sell and lease; and, being open to new marketing and promotion ideas as well!

I.

How does the just related experience apply to selling manufactured homes and
leasing rental homesites? Well, here’s the drill…

A prospective homebuyer/site lessee pulls up and parks their car in front of your on or off – site MHRetail salescenter, hopefully in a space designated with an attractive sign that reads: RESERVED FOR FUTURE RESIDENT! As they get out of their vehicle and head into the Information Center, GET MOTIVATED and put a SMILE on your face and into your voice! Be prepared for ‘the performance of your life’!

As the prospect(s) walk in the door, don’t stay seated, GET UP and walk across the room, meeting them halfway, with an outstretched hand, and (again) SMILE on your face and in your voice! WELCOME them to the Information Center, introduce yourself, and ask their name(s) – and call them by name throughout the presentation and product demonstration. It’s an especially ‘good & timely move’ to then offer refreshment of some sort: something cold and refreshng in a hot climate; something warm or hot on a cold day. Now’s a good time to ask prospect(s) to complete a Guest Card, or you – as sales/leasing consultant, fill it in. That decision is simply a matter of personal style. Then, use the card, and the information contained on it, it to facilitate the sales/leasing presentation, since the card contains their housing needs, wants, etc… Speaking of Guest Cards, here’s a unique one ‘free for the asking’*: the dual purpose Visitor Information & Visitor Response card, perforated in the middle. Use the Information half as the aforementioned Guest Card, give Response half to prospect when they leave the Information Center – whether they bought a home or not, as it asks them to ‘grade’ the property and sales/leasing performance; then mail it back to the property or home office.

Qualify the interested prospect! Is the desired home (size, features, configuration) available now, or must it be ordered? Does prospect have the ability to purchase the needed/wanted home and, if sited in a landlease (nee manufactured home) community, pay the monthly site rent and related household expenses? The easiest way to measure this critical set of circumstances, whether for a land & home transaction; or, again, in the LLCommunity setting, is to use the ‘Ah Ha & Uh Oh! Form, also ‘free for the asking’*. And, as was pointed out in Part I of this two part series on manufactured housing sales & rental homesite leasing, be very careful NOT to Discriminate. Always remember and respect the seven protected classes of citizenry.*

Assuming homebuying interest is high and prospect is qualified to buy, Demonstrate the appropriate product! This means walking through new and resale homes in inventory and already on – site in the LLCommunity. Ideally, homes are skirted, steps/porches in place –if required, climate controlled, and as I’ve noticed of late, attractively landscaped with shrubs and flowers planted, in season, out in front of the home! Do your ‘homes for sale’ have those, and more, selling features in place? And while it pains me to remind you of this, ensure the appropriate Formaldehyde Warning Poster is in place, usually in the kitchen of the home. As a frequent Mystery Shopper, ‘that is not always the case’, hence a risky (regulatory = $ fine) state of affairs. Anyway, it’s not enough to unlock a model or new home’s front door and turn the prospect loose! It’s important to accompany the prospect through the home, pointing out, sometimes even demonstrating features along the way. And here’s an important tip: Vacuum carpets in model homes every workday! Why? Not only keeps them clean, but more importantly, obliterates traffic patterns that form as person after person walks the same or similar paths throughout the house. And, it’s usually a good idea to have floor plans and other sales literature available somewhere in the show house. One more timely tip: Have deodorizers in place in these homes, to mask or counter unpleasant odors. Done demonstrating one or more homes? Assuming prospect is still highly interested, and certainly ‘qualified’ to buy, invite them back to the Information Center to complete the paperwork to buy the home and lease a homesite in the LLCommunity! Most sales/leasing consultants do NOT effect this key critical step! Do you?

Well, there you have it. The basics of on – site sales and homesite leasing. Sure, there’re fine points not yet covered here, but I’m certain you ‘get the idea’. Have salescenter sales/leasing suggestions you’d like to share with readers of this blog? Let me know via gfa7156@aol.com or respond directly to this blog posting.

II

In last week’s blog posting, I mentioned a FREE resource designed to teach sales and leasing consultants how to enhance their personal security when working alone in an Information Center. If interested in receiving this list of ’10 Helpful Steps to Manager & Leasing Consultant Safety’, contact PMN Publishing.*

III.

So, how did the Open Discussion Among New England LLCommunity Owners, turn out? Excellent. Nearly two dozen convened on – site at Dave Piper’s Cranberry Village LLCommunity in Middleboro, MA. Representatives were present from Hometown America, ROC – USA, along with numerous small owners/operators. Program began at 10AM and ended after 1PM. Many local issues, including ‘local rent control’ were discussed, as well as national matters pertaining to the S.A.F.E. Act, and sad results of the 2 June 2010 Manufactured Housing Finance Roundtable in Elkhart, IN.

This gathering turned out to be a helpful precursor to the Grand ‘Once & For All! Tour being planned for seven U.S. regions during year 2011. These will be 1 ½ day sessions comprised of a healthy, challenging mix of information (‘State of the MHIndustry & LLCommunity asset class’); unity & motivation = join Manufactured Housing Institute (‘MHI’) as direct dues – paying members, especially the National Communities Council (‘NCC’); communication (i.e. Print & online resources available from the newly formed CONSORTIUM); education (re: ‘captive finance’ and ‘captive insurance’ and ‘other matters); and much more. There’s even talk of adding a second day for registrants who want to ‘stay over’ or have local on – site managers participate in the day long Manufactured Housing Manager (‘MHM’) professional property management and certification class.

If you’d like the Grand ‘Once & For All! Tour to come to your geographic area or specific city, and are willing to assist with planning and facilitating the program, please let this blogger know ASAP! We’re negotiating with a national hotel chain to use their facilities exclusively, so will need to identify the seven regions soon, e.g. New England, Mid – Atlantic states, Southeast, Upper Midwest, Lower Midwest, West, Pacific Northwest. And sponsors of this Fall’s 19th annual International Networking Roundtable will be given ‘first opportunity’ to sign onto this historic initiative, and have their product/service message taken nationwide during these sessions.

IV.

Due to space limitations, I’m unable to ‘tell you complete news stories’ in this weekly blog posting. For ‘the rest of the stories’, subscribe to the Allen Letter professional journal for $134.95/year – and receive a FREE copy of the 21st annual ALLEN REPORT (a.k.a. ‘Who’s Who Among LLCommunity Owners/operators Throughout North America!’).* AND, if interested in attending the 19th annual International Networking Roundtable in Phoenix, AZ. @ 15 – 17 September 2010, register at this blog’s website or phone (317) 346-7156. And while on the phone, order a copy of the recently released Manufactured Housing $$$ Primer!, subtitled: ‘Almost Everything You’ve Ever Wanted to Know About Chattel (personal property) Finance’

******

End Notes

To request ‘free copies’ of the Guest Card and Ah Ha & Uh Oh! Forms cited in this blog, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Seven protected classes? Think: Realtors Can Really Sell Housing Fast Now, using the first letter of each of those seven words to remind one of Race, Creed, Religion, Sex, Handicap, Familial status, Nationality.

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

What’s So Hard About Doing This?

90% of MHRetail Salecenter & LLCommunity Sales/Leasing Consultants Do Not Do What’s Described in the Following Paragraphs, Yet Every One of Them Should!
I.
Note to regular readers of this weekly blog! No, we’re not turning this timely, informative and widely read communication tool into a tutorial about signage, Mystery Shopping; and this week and next, telephone and in person, on – site salesmanship and leasing. Rather, we’re taking a short hiatus to ensure everyone reading this blog can say, once the previous and following suggestions have been implemented and supervised, “We’re doing our part to put the MHIndustry & LLCommunity asset class back on track as this nation’s Best Source for truly affordable, attractive, quality, non – subsidized, ‘green’ housing, along with highly Desirable Lifestyle Environments in professionally managed landlease (nee manufactured home) communities!” So here goes….
The phone rang six times before someone answered, saying “Whadaya want?” When I asked if it was ‘so & so’ MHRetail salescenter in ‘such & such’ landlease community, they answered: “Yea.” Such is the too frequent beginning of MOST initial telephone inquiries to MHRetail salescenters, in and outside LLCommunities. Folk, it’s time to ‘shape up’ and start performing professionally as leasing and sales pros, or admit defeat, and get into some other line of work.
Here’s how the initial incoming telephone inquiry from an otherwise interested, and let’s for the moment assume, ‘qualified’ prospective homebuyer and rental homesite lessee, or eventual resident, should be handled.
Answer the phone on the second ring; not the first, third, fourth, fifth, or sixth. Why? Several good reasons. First, use the initial ring as a reminder to put a SMILE into one’s voice! Use the first ring to ‘get motivated’ to sell and or lease! As Zig Ziglar oft said, “I’d rather be greeted with a fake smile (in one’s voice), than with a genuine frown!’ So, give your new customer a genuine SMILE! Think about it. Furthermore; answering on the ‘first ring’ is akin to pouncing on the potential customer – like you’ve got nothing else to do but that. Answering on the third, fourth, fifth, or sixth ring conveys the opposite message: ‘Hey, I’ve got better things to be doing than talk to you!’ Surely you’ don’t want to convey that turnoff message, do you?
So, what Greeting to use? Longtime readers and clients of mine know, I prefer how the Newby Management team, of Ellenton, FL., ‘does it’: “Good morning (or afternoon); Thank You for Calling Newby Management (or salescenter name). I’m (name), how may I serve you?” Oomph! Did you catch that? Don’t know ‘bout you, but I want to get to know folk better who want to SERVE me! And here’s your opportunity to begin to do likewise. Perhaps it’s high time you start wowing your prospective homebuyers and site lessees when they phone!
Early on in the initial telephone conversation, Ask for caller’s name, and Make a record of it on the Daily Traffic Report (You do have such a daily record of phone calls and on – site visits, right?) on the clipboard right next to the telephone. After all, you just shared your name during the Greeting, so ‘fair’s fair’ to ask for theirs – and use it during the conversation. Besides, if you’re like me, and sincerely believe this initial phone contact is a critical first key step to developing Good Resident Relations = More Resident Referrals = Great Resident Retention (a.k.a. ‘6Rs of Really Good Resident Relations!’), then ‘Get this relationship off to a good start!’ And by asking for prospect’s name that serves as a good and timely reminder to get their contact information as well – adding it to the aforementioned daily traffic report. Let me know if you’d like a ‘free’ copy of such a traffic recording form.
At this point, inquire as to caller’s housing needs. What’s needed? When is it needed? How will they be paying for the home and site rent (qualifying question). Just be careful not to discriminate during this important first conversation. How to know? Just recall that old bromide: ‘Realtors Can Really Sell Housing Fast Now!’ The first letter of each word is a reminder of each of the seven protected classes of citizenry: Race, Creed, Religion, Sex, Handicap, Family, and Nationality. Think I’m kidding? You won’t, the first time you get caught practicing ‘linguistic profiling’ by an agent contracted by the federal government to ensure you’re playing fairly. During this part of the conversation, offer some pricing information as well (housing price range, site rent amount), as a further non – discriminatory way to qualify prospects.
Furthermore, if the caller is interested enough to have phoned the salescenter and or property, given you their name and address/phone number, and worked through the housing needs and qualifying conversations, by all means ASK FOR A DEFINITE APPOINTMENT TO VISIT on – site!
But the job is not yet done! Don’t forget to offer Travel Directions to your location. Don’t cop out and suggest they use Map Quest or rely on a GPS system. While popular tech options, there’re still many folk not so technically inclined, and need help finding your location. While you’re at it, ask How They Learned of the salescenter or property. Why? This is the easiest and best way to gauge the effectiveness of whatever marketing means are in effect at the time, e.g. referrals, billboard, drive – by, newspaper ads, online information (e.g. MHVillage.com), Yellow Pages directory, local Chamber of Commerce, brochure picked up at a local hotel, resident referral, and on and on.
Well, that’s about it. Those are the most basic of touchstones used by the most successful of leasing and sales consultants working in today’s MHRetail salescenters and on – site in landlease communities. How confident are YOU, your staff is following that or a similar routine? Maybe time to find out! How? Mystery Shop them! Call the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and ask for a ‘free’ copy of the Standard Shopping Report form.
OK, let’s turn our attention to what happens when the prospective homebuyer and or homesite lessee arrives to see and experience housing product and lifestyle features.
Do you have signage off – site and on – site to guide visitors to your location? In last week’s blog we talked about bootleg signs at interstate exits, adopting the last quarter mile of highway leading to your property’s entrance, WELCOME HOME entrance signage, and vacant rental homesite signs suggesting BUILD YOUR NEW DREAM HOUSE HERE! Call (information center’s phone number). Are these signs now in place? How ‘bout getting prospect from the entrance to the Information Center (Hopefully you’re not still calling it an Office). If it isn’t right there within eyesight of the entrance, plan on putting small signs out enroute to it. And reserve best parking spot with the sign: RESERVED FOR FUTURE RESIDENT!
OK, prospect arrives on – site, at the Information Center, gets out of their vehicle and comes into the salescenter. What does your staff do? Do you have any idea? You’d better! Here’s what they ‘should do’…
We’re going to stop here, for now, for two reasons: Some blog readers have suggested these postings are too lengthy. And perhaps they are. What do you think? Please let me know, via response to this specific posting at this website, or via email to gfa7615@aol.com or at above phone number. Other reasons? Have some breaking Good News to share with you in the following paragraph or two.
II.
SSBRA Announces affordable, frost resistant foundation!
Today, 1 July 2010, the Systems Building Research Alliance (‘SBRA’) announced the release of the FROST FREE FOUNDATION® design, an affordable foundation solution for placing homes in areas subject to frost. The design is far less costly than either poured concrete footings that extend the foundation below the frost line or concrete (‘floating’) slabs, the two alternatives recommended by HUD for complying with the Manufactured Home Installation Standards in areas subject to frost, which includes most of the U.S.
The FROST FREE FOUNDATION® is based on this simple concept: if a home is installed in a manner that assures the ground under the home is dry and will remain dry, the soil will lack sufficient moisture to heave. For such homes, installing components intended to resist frost heave, such as concrete footings below the frost line, adds cost but provides little value. The concept follows from the manufactured housing industry’s decades of experience installing millions of homes in the Frost Belt with few problems. As industry expert George Porter, an early and tireless advocate for the project explained, “The concept is simple; keep the ground dry, no frost heave. It’s not rocket science.” The design is a variation on the shallow, frost protected foundation systems increasingly popular with site builders.
The FROST FREE FOUNDATION® was developed with financial support from several state MHAssociations and companies involved in manufactured home product, supply, community operators (including the author of this blog posting), and MHRetailers. Seven home manufacturing companies also provided funding. The work was guided by a technical committee chaired by Mark Ezzo of Clayton Homes. In developing this foundation solution, the SBRA (a division of the Manufactured Housing Institute) engaged the services of Paul Hayman, PE. Explaining the dynamics of frost heave, Hayman emphasized ground heave can only occur if three conditions are met: the soil is frost susceptible, outdoor temperatures below freezing are sustained for long periods, and the soil has sufficiently high moisture content.
Interested in more information on this timely and critical subject? Visit www.research-alliance.org/pages/frostfreefoundation.htm Also reach Emanuel Levy, executive director of the Systems Building Research Alliance via (212) 496-0900X14 or elevy@research-alliance.org
III.
What’s Really Happening Throughout the MHIndustry & LLCommunity real estate asset class these days? Next week, 13 – 15 July, in Washington, DC., MHI will host its annual Summer Meeting & Legislative session, also the National Communities Council (‘NCC’) division. Second meeting of the CONSORTIUM of Print & Online Trade Publications will occur at that time, along with a planning meeting for the previously announced Grand ‘Once & For All’ Tour of seven regions during 2010 & 2011. Contact Thayer Long @ (703) 558-0678 for MHI/NCC details.
Week of 23 August 2010? If in Chicago at the time, and a LLCommunity owner/operator, plan to attend a networking dinner for LLCommunity execs, a two day Finance (Chattel) Finance Seminar, the one day Manufactured Housing Manager (‘MHM’) professional property management training and certification seminar. For info call (317) 346-7156.
And, 15 – 17 September, plan to be in Phoenix, AZ., for the 19th annual International Networking Roundtable event, featuring Community Series Homes (‘CSH’) on display; dozens of LLCommunities ‘for sale’ around the U.S.; Randy Rowe, of Green Courte Partners, as leadoff keynote presenter, along with 20 additional educational and panel discussion offerings! For a brochure and or to register as a LLCommunity owner/operator or event sponsor, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
******
George Allen, Realtor®, CPM®Emeritus, MHM
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247

What MHRetail Salescenter Operators & Landlease Community Owners Owners
Should Learn from the Apartment Industry

Apartment owners have the job performance of their leasing (sales) consultants Mystery Shopped regularly, landlease community folk rarely do, and MHRetail salescenter managers almost never do!

Apartment community leasing consultants are believers! They KNOW their individual job performance, during telephone and on – site interviews will be monitored monthly, year in – year out. Accordingly, they treat every incoming telephone call from, and every on – site visit by, a prospective lessee, as interactions with bona fide ‘shoppers’! As they should; because all inquirers are ‘shoppers’, just like the callers and visitors to landlease communities and MHRetail salescenters. Only diff, is the goal to get interested and qualified ‘shoppers’ to rent and or buy from us; while (professional) ‘shoppers’ are paid to measure how well or poorly on – site staff carry out their job descriptions! Here’re basic lessons we can learn from our apartment community consultant counterparts…
Apartment leasing consultants answer incoming telephone calls on the second ring – not the first (too quick) or fifth (too slow), with a sure SMILE in their voice! They then ask the caller’s name, recording it on a daily traffic record, and then use it several times during the conversation. How important is this initial conversation? Many believe it’s the key first step in establishing Good Resident Relations (in the LLCommunity setting) and Good Customer Service (in the home sales environment)
Consultants then identify caller’s housing needs: immediate or 30 days out; size of living quarters needed, etc., while also ascertaining whether they’re ‘qualified’ to lease and or buy at this particular location (e.g. employed, retired, family or adult only, etc..), being very careful not to discriminate along the way. Why should this be any different in a LLCommunity or MHRetail salescenter?
The ‘close’ of a telephone interview with an interested and qualified prospective lessee or buyer is to ‘Get an Appointment on – site!’ Do all our consultants know & practice this? As a pro ‘shopper’ I know they don’t!
Once this is accomplished, offer Travel Directions to the property or salesceneter, AND ask how they first learned of the property or salescenter – to measure effectiveness, or not, of marketing efforts, re advertising, etc.. This latter information should also be recorded on aforementioned daily traffic record, with results tallied and acted upon at the end of each week.
When prospective lessee or homebuyer is enroute to the property or salescenter, is there signage helping him/her find their way? Two ways to do this. First, consider buying and installing bootleg signs (exact imitations of aluminum plate DOT signs, per print style and PMS colors) at exit(s) from nearest interstate highway (Just name of property, with an appropriately – directed arrowhead). Then, within a quarter mile of the property, ‘adopt’ the highway, either officially – if a program is in place, or constructively, by installing a 2’X2’ sign, on an engineer stake, announcing ‘This Highway Lovingly Cared for by (name of property or salescenter)’. Must maintain that ¼ mile stretch of road, and be sure not to infringe on a neighbor’s property without securing permission.
When prospective lessee or homebuyer arrives on – site or at the sales center, is there a sign out front Welcoming them? For example, at every entrance to an apartment or landlease community there should be a small (1’X2’) sign, saying WELCOME HOME! On the front side, and DRIVE CAREFULLY on the back side. All apartment communities do this. Do you?
Do you reserve the best parking site outside the Information Center (Surely you’re not still calling it an office) for visitors? For example: RESERVED FOR FUTURE RESIDENT! Or’ Reserved for Dream Home Buyers!’ Apartment folk do this all the time! Makes you feel special when visiting the community or salescenter for the first time, every time….
Are your sales and leasing consultants schooled in how to ensure their personal safety and security when working alone in the Information Center and or demonstrating product (i.e. rental units, new homes, etc.)? Apartment consultants practice such measures all the time. Want a free list of ten such personal tips? Request it via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
OK, let’s stop here for a moment and concentrate on the landlease community lifestyle.
Have vacant rental homesites? Sure you do. BUT, do you manicure them (i.e. trim any shrubs, mow the grass, pick up debris, remove earth anchors & dangerous steel strapping, protect utility risers, and rake the site)? Once that’s done, on some of the sites, install a 2’X4’ sign, painted both sides, that proclaims: THIS CHOICE SITE AVAILABLE! Call (information center telephone number)! Captures the attention of visitors and drive – thrus all the time – if you do it.
Do YOU allow free and random storage/parking of vehicles, boats, trailers, and RVs on vacant rental homesites? NOT. Provide a fenced, secure area for this service and charge a fair storage fee, as one more measure of AITR (alternative income to rent). Otherwise, over time, you host a junkyard and increase your liability for various forms of risk.
AND, conventional apartment communities routinely reduce their monthly ‘call rental rates’ (i.e. The rate they quote over the phone during the initial interview) when physical occupancy begins to drop, then raise them when occupancy rebounds. Do LLCommunities do this? Rarely. Wonder if there’s a message here? Think about it….
This is plenty to consider for the time being. However, questions, suggestions, or ideas from your personal and corporate experience are welcome. Let me know via this website or phone (317) 346-7156 or via gfa7156@aol.com
What does it cost to Mystery Shop LLCommunities and MHRetail salescenters? Fee varies, but oft about $500.00 per location, plus out of pocket travel expenses. Sometimes less, if four or five properties/salescenters are close enough together, geographically, to ‘shop’ in one day. What’s $500.00 get you? Phone and on – site performance evaluation of personnel and property by an experienced ‘shopper’, completed Standard Shopping Report with narrative, documenting discrepancies (curb appeal, rules enforcement, marketing and sales/leasing shortfalls). Also attached are handouts from the consultants, along with color photographs of what needs improvement at this location. Interested? Let us know…
What else is going on in the MHIndustry & LLCommunity asset class these days?
Will I see you at MHI’s Summer meeting in Washington, DC., @ 14 & 15 July? Hope so. For details, phone Thayer Long at (703) 558-0678. National MHRetailer & LLCommunity councils meet then too.
How ‘bout during the week of 23 August in Chicago, IL. So far, I know of a possible networking dinner among area LLCommunity owners, the one day MHM class, Precision Capital Funding’s two day seminar (Call 217/971-3968 for information), and a planning meeting for the Grand ‘One & For All’ Tour of seven regions of the U.S., scheduled during remainder of this year and throughout year 2011.
Most important though, is the upcoming 19th annual International Networking Roundtable at the Pointe Hilton Tapatio Cliffs Resort Hotel in Phoenix, AZ. As this is a ‘by invitation only’ event, contact us via the MHIndustry HOTLINE cited earlier, to request a registration brochure. What’s going to happened there this year?
New Community Series Homes on display, a couple dozen LLCommunities ‘for sale’, Randy Rowe’s ‘take’ on the MHIndustry & LLCommunity asset class today. And much much more. Want to know how truly exciting this event will be? We’ve already been accepting registrations and haven’t distributed the first brochure yet. They will be soon forthcoming though, with the July issue of the Allen Letter professional journal. If not a subscriber, call (317) 346-7156 to become one.
And while you’re at it, ask about the new 100 page Manufactured Housing $$$ Primer! Contains the writings, on chattel finance, of more than 20 MHIndustry experts intimate with this timely, and oft confusing, subject. Only $29.95 postpaid.
Geroge Allen, Realtor®, CPM®, MHM
Consultant to the Factory – built Housing Industry & the Landlease Community Real Estate Asset Class
Box # 47024
Indianapolis, IN. 46247
(317) 346-7156
gra7156@aol.com