Let's briefly review some facts:
-
Shipments in manufactured housing have been rising for about half a year now.
-
Month over year prior month increases have been at double digit growth rates in recent months.
-
This new pattern counters prior declines, so that 2011 finished up about 3% over 2010 shipment levels.
-
Thanks to efforts by MHI, MHARR and supported by state associations, two Congressional hearings have taken place focused on manufactured housing related issues.
-
Attendance and orders at the Louisville Manufactured Housing Show were up.
We are not out of the woods as an Industry by any means. But we are clearly on a modest upward trajectory. So it would seem to me logical to say that American Maxim:
If it isn't broken, don't break it
The good news above aside, an email came in this morning that linked to a brand new on online missive. If you read that missive, you wouldn't know that the above good news is taking place. A series of 'cures' were recommended – that in some cases if implemented as that writer suggested – would be worse than the ailments. Further, real problems are not mentioned in said missive, much less possible solutions proposed.
If it isn't broken, let's not break it
Let's mention some issues that are indeed real challenges:
-
The industry remains quite segmented, and is not as unified as it could be when advocating for regulatory or legislative solutions at the local, state or national levels.
-
We have an estimated 250,000 (one source pegs it at closer to 500,000) vacancies in manufactured home land lease communities (MHCs) today.
-
Solutions such as 'buy here, pay here' financing in MHCs to fill homes sold by community owners in their locations has yielded an estimated 5-8 billion in manufactured home paper being held today of such 'self financed' MH loans.
-
Fears of SAFE Act and Dodd-Frank has sparked many community owners to do rent-to-own and lease-to-own programs on MHs to fill vacant homes/sites in MHCs.
-
But legal, finance and association leaders routinely voice concerns that rent-to-own and lease-to-own-purchase-option contracts – depending on their terms and conditions – may be viewed by regulators as 'disguised credit transactions.' If so, the 'solution' to 'escape' Dodd-Frank and SAFE may in fact lead to fines by regulators of up to $25,000 per incident.
-
Chattel financing (home only, personal property lending) still makes up some 60% of all manufactured home finance contracts. As Jason Boehlert at MHI recently said in addressing attendees of the Louisville Show, about 55% of all the loans of a top MH personal property lender could vanish under the expected implementation of Dodd-Frank regulations. That negatively impacts retailers, communities, lenders and current MH owners when it comes time to sell, and all those businesses (insurance, installation, suppliers, etc.) who supply products or services to new and pre-owned MH sales.
Are there potential solutions for the above? Are they on the horizon?
In a word,yes.
Sales and Profit Growth Solutions available for MH business professionals TODAY
Those solutions will require real efforts on the part of each segment of the Industry. In some cases, it will require changes in current practices. Being involved in discussions with various industry business and association leaders suggests to me that we can navigate the challenges, and profit and accelerate growth as a result of goal and solution oriented efforts.
Many issues that we face in fact have their solutions close or at hand, given some changes in approaches.
For example, we have a growing number of manufactured home financing resources and opportunities today, for sales by MH Retailers and MH Communities.
In Tulsa, during the Great Southwest Home Show, there will be a free finance forum on the wide variety of financing options available right now, TODAY, in manufactured housing. The following lenders are already scheduled to be a part of that finance panel.
-
21st Mortgage
-
Triad Financial
-
CUFBL
-
US Bank
-
First Guarantee Mortgage Corporation
-
CIS
Industry finance veteran, Dick Ernst, has agreed to moderate the panel discussion. Each lender will in rapid fire succession present their new/best programs that are available NOW for retailers and communities! These include:
-
Legal no down payment loans in fee simple sales (no, I'm not talking about 'land in lieu) that is non-recourse. This is a 'no-brainer' loan program that every MH Retailer needs to learn and use.
-
VA loans in fee simple sales with no down payments (yes, this is different than the loan program noted above) that is non-recourse. With a rising number of vets, this is a another no-brainer to learn and implement.
-
Chattel loan rates that approach conventional housing rates, for qualified buyers on specialized MH loans from a variety of personal property lenders. These programs are good in communities or for street retailers.
This popular presentation and question and answer discussion that followed packed a standing room only crowd in Louisville, as the photos on this page demonstrate. We expect retailers and community operators to come far and wide to see this in Tulsa – free – at the Great Southwest Home Show. Register online free at this link or call 1/800-234-6426 to sign up or for information.
Attorney Kurt Kelly will be presenting two programs, one for Retailers another for Communities:
MH Park Management/ Risk Control Presentation:
"Here's How Me, Daryl, and My Other Brother Daryl Ran Our Park and Why We Got Sued So Many Times"
"Great Ways to Get Sued and Lose Your Park"
"Smart Management: How to Avoid Lawsuits and Losses in Your Park"
MH Retailer Management/ Risk Control Presentation:
"Toting Toward Gomorrah: Great Ways to Get Sued at Your Dealership and Lose it All"
"Smart Management: Loss Control is The Best Investment You'll Ever Make"
"Really?! You Did That?!? A Retailers Top 10 Dumb Management Ideas"
"Really?! You Did That?!? A Retailers Top 10 Dumb Management Ideas"
In this sue happy culture, you can't afford not to come and learn what Kurt has to share with Retailers and Community operators to protect your business interests! When you register above, you are already have access to these presentations too.
SBA Wholesale Inventory (Floor Plan) Lending program for HUD Code and Modular homes. The SBA has renewed the financing opportunities for retailers and communities to tap into wholesale inventory. An SBA official has agreed to present the facts in Tulsa during the GSWHS.
How to Attract More Customers With Cash or Good Credit. Did you know that some 58% of Americans have a credit score of 700 or higher? Do you know how to attract them to your street retail center or manufactured home community? This seminar will show you proven how-to strategies.
The dates and times for the above should be available on this upcoming weekend's blog post. So check back then for more.
There are two other seminars previously announced that you can see at this page:
Most certainly, there are other ways, means and solutions out there. But what is it that drives more sales in our Industry? Isn't it financing? What is it that drives more sales? Isn't it savvy marketing?
Scientia potestas est
The above is Latin for Knowledge is Power. But the truth is that knowledge is only potential power, it must be learned, it must be vigorously applied. Then, knowledge is power.
Let us be solution oriented. Regular readers know that we look the facts in the eye here, but we also seek and present solutions. If it isn't broken, let's not break it. If it needs mending, let's dig in and fix it. ##
post by
L. A. “Tony” Kovach, MHM
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals
Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com
http://www.linkedin.com/in/latonykovach
