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Warren Kicked Hornet’s Nest – How Move May Connect With MH, Renters, Professionals

March 10th, 2019 No comments

 

WarrenKickedHornet'sNextHowMoveMayConnectWithMHRentersSmallBusinessProfessionalsDailyBusinessNewsMHProNews

Successful politicians and good brands have much in common.

 

Consider for a moment how Acura’s video commercial made a mark in the blogosphere, one that caused scores of keyboards and social media posts to go favorably wagging. “The [Acura automotive] ad is buoyed by Motörhead’s rendition of the Rolling Stone’s classic, Sympathy for the Devil, as the auto does its best sportscar-style moves,” said The Drum.

Every successful professional or politico knows the value of good social and mainstream media. But something must happen to grab that spotlight.  On Friday, Team Warren kicked the hornet’s nest of big business.  Which means that her fight is now on.

What every business, person, or politicians needs is energy. That Acura commercial – it has energy. The Warren campaign arguably just lifted their energy level.

Wittingly or not, for good or ill, there is no doubt that Senator Elizabeth Warren (MA-D) has several touch-points with manufactured housing professional interests.

Let’s be blunt.

Some in MHVille cheer her, while others jeer. But that too has potential energizing value for a firebrand like Warren.  As her hoped for GOP counterpart in the Oval Office has demonstrated, one can rise in the polls, even when controversial.  Sometimes, one rises in the polls, especially when a person or organization are shaking things up.

 

 

On MHProNews’ Masthead editorial blog, let’s note for new readers that Senator Warren – the long-shot for the 2020 Democratic nominee for president – has addressed groups that included MHAction. She was a driving force behind Dodd-Frank and the creation of the Consumer Financial Protection Bureau (CFPB).

Those won’t earn her fan mail from several quarters.  We hope to engage with their campaign on those issues. That said, let’s now turn to the plus column.

Friday, the Warren campaign’s emailed statement to MHProNews stressed her emphasis on antitrust legislation.  Of course that campaign plank will cause shivers for some, but may draw curious smiles from others who are small- to mid-sized business professionals.

Warren’s strongly stated antitrust stance ought to have Republicans, President Donald J. Trump, independents, and her fellow Democrats pondering the 22 million who live in a pre-HUD Code mobile home, or a post June 15, 1976 manufactured home.  Why?  How might that target audience swing in the 2020 nomination battle?  Will breaking up mega-corporations play well during table talk at the community clubhouse?

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews-445x768

 

Or consider the larger-still potential voting block of renters. They are over 100 million living in rentals, said CityLabs in 2018.  The vast majority of renters, per the National Association of Realtors ™ (NAR), want to be homeowners.

NAR’s Scholastica ‘Gay’ Cororaton, CBE, did research that praised manufactured homes in 2018.  Cororaton noted in her research that millions of renters pay the same or more monthly as what it would cost them to live in a manufactured home. She also debunked several of the quality concerns, noting that was true of pre-HUD Code mobile homes, not post HUD Code manufactured homes.  Here’s how she phrased it.

 

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticiaGayCororationPhotoSmallPercentageDamagedDuring

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Each photo is of a modern manufactured home, which can be 2400 sq ft or more in size, 1 or 2 levels, set over a basement, or can be as modest as 320 sq ft. These homes are all built to federal construction and safety standards that went into effect on June 15, 29176, administered by HUD, and are thus known as “HUD Code Manufactured Homes.”

 

Recall, that Cororaton thoughtfully cited moi and the Manufactured Housing Association for Regulatory Reform‘s (MHARR) Mark Weiss, JD, in her through research’s first footnote, on page 48.

 

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

 

Renters and manufactured home owners are in a very real sense aspirational audiences that any savvy candidate should desire.

Who says?

In August of 2016, an op-ed in the New York Times noted that the “Downwardly Mobile for Trump.” That column cited a survey that revealed “Support for Mr. Trump wasn’t strongly related to income and employment.” That included the residents of mobile and manufactured homes, per the NY Times and others.

Curious about that claim, MHProNews did an unscientific survey of campaign signs and bumper stickers in a four star manufactured home community as Election Day 2016 approached. Our informal research confirmed the NY Times claim. The clear edge among manufactured home owners favored then GOP candidate Mr. Trump over Democratic nominee Secretary Hillary Clinton.

 

Why Does this Matter to MHVille Now?

The 2020 campaign has been in full swing for months. It will only get hotter. With a crowded field, and with the first debates ahead, the contenders must differentiate themselves.

Voters and donors must make early choices.

What follows are the 3 key words from the Warren Campaign email yesterday.  It will be followed by her campaign’s  pitch.  For those that know our editorial views, you won’t be surprised when we smile while sharing these 3 bullets from the Warren camp.

 

  • Antitrust
  • Monopolies
  • Breakup

 

Senator Warren isn’t just taking about regulating big companies, she wants to break the giant conglomerates up. On her 3 bullets, 3 cheers.

As you read the sections of their statements that will follow, ponder this fact. Your Masthead writer shared a pair of links – one of which is below, that the Warren campaign – which renounced major donors – received with enthusiastic thanks and interest.  As veteran readers on MHProNews know, you can access the report by clicking the hot-linked text-image box below.

 

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

 

Strategic Allies?

Rephrased, there are pragmatic strategic reasons why the Warren’s campaign may want to publicly lash out at a billionaire who’s first name matches her last.  There are likewise strategic reasons why if Warren did so publicly, there are numbers of independent manufactured housing professionals that could find her the more appealing Democratic candidate in their bid to recapture the Oval Office.  Because those independents don’t want to be treated as the de facto serfs of Warren Buffett’s growing empire.  Here are just two screen captures from the Twitter feed of Austin Frerick, of the Open Markets Institute (OMI).

 

 

Warren Buffett’s monopolistic tendencies in manufactured housing have sparked years of controversy that the Seattle Times, BuzzFeed, Representative Maxine Waters (CA-D), the Open Market’s Austin Freric (see graphics, above and below), GuruFocus, the Nation, Democracy Now, and others.  They’ve found Clayton Homes and their problematic record on race, business practices, and lending worthy of their respective ire.

 

AustinFrerickOpenMarketsMaxineWatersBrianSullivanHUDClaytonHomes

 

Recall how Clayton’s home town media put it in 2018?  See the reminder, below.

 

 

 

What better way for Senator Warren to grab headlines, and the potential interests of millions in the misunderstood and under-appreciated groups noted above, than to go after the third richest man in America?  Namely, Warren Buffett?

What better way for her to set herself apart from the crowd than to use the facts we’ve shared with her campaign, to highlight Buffett and his minions in Knoxville and Arlington, VA for their purportedly harmful monopolistic Moat?

Weeks before Warren made her announcement on Friday, MHLivingNews spotlighted Senator Warren’s speech to the antitrust-minded Open Markets crowd.  It may be one of the best cases yet on how existing laws can be applied to go after the giant conglomerates.  That’s why we published it with some related commentary.  Her thesis is that there is no need for years of waiting for new legislation.  Warren says that the laws on the books are all that is needed for immediate action.

 

Who Will Act? Will Senator Elizabeth Warren, and/or the Trump Administration Act to Restore Open Markets, Thereby Supporting Affordable Manufactured Homes?

 

 

Can Warren and MHVille Democrats, Plus Others Connect?

Strategically, one can make the argument that this fits Senator Warren’s needs.  It also fits that 50 percent of the manufactured home industry – with far more people – could find reason to support someone like her if she will publicly oppose Buffett’s brands demonstrable take over of the most proven part of the affordable housing industry, through purported market manipulation via Moat building “Conquest Capitalism.” © Depending on how the discussions go with team Warren, MHProNews just might give Senator Warren’s campaign the green light to use that phrase “Conquest Capitalism” in her campaign.

With a wink, ICYMI, here is the report on that topic, accessed via the hot-linked text image box, below.

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

 

What about the Donald?

As a political independent, we make no secret about the fact that we supported President Trump in 2016.  His campaign thought so highly of the support by my Persian princess, Soheyla Kovach, that they placed her pro-Trump column on their campaign website. Soheyla’s endorsement remained there until the Trump site was redone, after the 2016 election.

No doubt Soheyla checked off several useful boxes for Team Trump.

 

12ReasonsEducatedIranianAmericanWomanSupportsDonaldTrumpPostedMastheadBlogMHProNews954x846

 

While it is anyone’s guess how many read it there on the Trump campaign site, what is better known is that thousands of other sites picked it up, per search results. Those remained active, or Google wouldn’t have registered it.

These are details the Warren camp, other campaigns, and manufactured housing professionals from coast-to-coast should ponder.

 

The Word from Warren

Even Republicans and libertarians should consider what follows carefully. Why? Because Elizabeth Warren – with who’s campaign we’ve made clear that there are stances she holds that we disagree with – is arguably dead right about the over-arching power of Big Tech and other monopolies. That’s another issue that long-standing MHProNews readers know we share.  That’s another cheer. Here’s a blast from the cited past. Compare what Scott Galloway, of New York Stern, said about what he called the Big Four in tech.

ScottGallowayNYSternIsntAnIndictmenFourRetributionRecognitionKeyHealthyEconomicCyclisPruningFirmsWhenInvasiveCausePrematureDeathWontLetOtherFirmsEmergeMHProNews

Good policy is not partisan. What Galloway said in this previously cited quote, finds echoes in what the Warren Campaign said below.

 

Even Fox News’ Tucker Carlson Friday night loudly sang Senator Warren’s praises on this specific antitrust announcement.  Yes, he reminded his readers that he sees other topics differently, just as we are doing herein.

With that lengthy background, let’s turn to how Elizabeth Warren has kicked the hornets nest so effectively, that it has set the media across the left-right spectrum abuzz.  There’s energy.

 

 

 

WarrenElizabethWarrenCampaign

Think about all the time you spend on the internet — checking the news, shopping, catching up with old friends, reading emails like this one.

Well, more and more of the things we do online are being controlled by a smaller and smaller group of giant corporations.

They’ve mastered a very powerful business model: Monopolize their platform and force other companies, media platforms, and publishers out of business.

If you buy something online, there’s a nearly 50% chance that you’re going through Amazon. If you go to any website, there’s more than a 70% chance that it’s owned or run by Google or Facebook.

America’s biggest tech companies are controlling more and more of our digital lives.

Here’s why tech companies with nearly unfettered power aren’t a good thing: They buy potential rivals, like Facebook did with Instagram and WhatsApp, limiting innovation and choice. They create marketplaces that they own and compete on — a conflict of interest that lets them snuff out smaller rivals — like Amazon and Google have done for shopping, search tools, and online ads.

They bully cities and states into showering them with massive taxpayer handouts — and spend the profits they get from being the only game in town to lobby and rig the rules even further in their favor.

They even scare investors away from funding new startups — because what’s the use in going up against a giant corporation that’ll just snap you up or drive you out of business?

This all means less competition, less innovation, and a worse internet for all of us. Think about it: If you’re not happy with Facebook’s privacy policy, maybe you’d like to spend your time on Instagram instead. Except, wait: Facebook owns Instagram.

We’ve got to call it out. And we’ve got to do something about it. So today, I’m proposing a new plan to break up the biggest tech companies and make sure these corporations don’t get so powerful that they undermine our democracy.

There’s a long history in America of breaking up companies if they have too much power in the marketplace: Standard Oil, AT&T, and the railroad industry led to the bipartisan creation of our first antitrust laws.

What I’m proposing is right in line with our country’s history — and it’s a big part of what has allowed our economy to grow and new companies to thrive.

Here’s how our plan works — there are two big pieces to it.

#1: Pass a new law for “Platform Neutrality.”

 

If you’re a ginormous tech company that’s created a platform for other businesses to compete on — like the Amazon marketplace, or the Google ad exchange — you shouldn’t also own a company that sells on it. Put simply: You shouldn’t be able to tilt the playing field in your own direction.

 

#2 Appoint regulators who’ll use existing legal tools to unwind tech mergers that illegally undermine competition.

With the antitrust laws that are already on the books, we can undo big mergers that never should have been approved in the first place — and give smaller and medium-sized companies a fighting chance to compete with the big guys. That means we break Facebook away from Instagram and WhatsApp, Amazon away from Whole Foods, Google away from Nest, and more. We could be doing this right now — but we need a president (ahem) who’ll appoint regulators to make it happen.

So what would the internet look like after all these reforms?

Here’s what won’t change: You’ll still be able to go on Google and search like you do today. You’ll still be able to go on Amazon and find 30 different coffee machines that you can get delivered to your house in two days. You’ll still be able to go on Facebook and see how your old friend from school is doing.

Here’s what will change: Small businesses would have a fair shot to sell their products on Amazon without the fear of Amazon pushing them out of business. Google couldn’t smother competitors by demoting their products on Google Search. Facebook would face real pressure from Instagram and WhatsApp to improve their user experience and protect our privacy. Tech entrepreneurs would have a fighting chance to compete against the tech giants.

This is how we’ll make sure we get more competition and more new ideas in the tech economy, instead of just a few giant tech companies calling all the shots — and regular people not having much say in the tools we use everyday.

That’s how we get innovation. That’s how we get an internet that does a better and better job of letting us stay connected with each other — from pictures of grandkids to emails and petitions like this one. That’s how we protect our privacy in a rapidly changing world.

We can get this done. We can make big, structural change. But it’s going to take a grassroots movement, and it starts right now.

https://my.elizabethwarren.com/ew-breakupbigtech

Thanks for being a part of this,

Elizabeth

 

SenatorElizabethWarrenMA-D-WikiMastheadBlogMHProNews

Senator Elizabeth Warren, official photo.

 

 

WarrenElizabethWarrenCampaign

This morning, Elizabeth announced her new plan to break up the big tech companies like Amazon, Google, and Facebook.

Sign the petition to support Elizabeth’s plan to break up the biggest tech companies that run the internet.

That way, we’ll get more competition, more innovation, and a better internet for all of us. But it’s going to take a grassroots movement to make this kind of big, structural change.

If we’re going to rebuild the middle class, then we’ve got to ensure competition in one of our country’s biggest and fastest-growing industries and a fighting chance for up-and-coming innovators.

If we’re going to save our democracy, then we’ve got to make sure these corporations don’t get so powerful that they undermine it.

Elizabeth has spent her career fighting to level the playing field for working families. So when she says she’s in this fight to take on the powerful corporations that are rigging the system, she means business — whether it’s big banks, big Pharma, or big tech companies.

Let’s send a message loud and clear: No corporation — not even Amazon, Google, or Facebook — should be so powerful that they bend cities and states to their will, or so big that they’re exempt from antitrust laws.

Thanks for being in this fight,

Team Warren

— End of Warren Campaign extended quotes —

 

One More Thing…

 

 

We’d note one more point – linked above – for those from the Warren camp. That linked rundown on the Value Penguin site rounds out how her campaign (or any other), renters, and manufactured housing could find political alignment.

Good public policy is nonpartisan.

As we’ve been saying for years, on all things and all people, it’s about separating wheat from chaff. We would concur with Warren that there is strong evidence that the system is rigged.  Ponder how Warren, Bernie Sanders, and Donald Trump have all complained during their campaigns about the rigged system.  We see the evidence that manufactured housing was rigged. That rigging has arguably cost manufactured home owners more equity.  That rigging has cost millions of renters the opportunity to own. That rigging of the system has harmed the interests of thousands of manufactured housing independents. Longtime readers know we’ve made that case.

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003MHanufacturedHousingIndust

Clayton Homes, 2003. After the Buffett Berkshire Buyout.

 

Dialogue with the Warren campaign, or any other campaign that sees the value of two potentially large and often overlooked voting blocks, could bridge the gap on other issues where we do not yet see eye-to-eye.

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEnd2017MHanufacturedHousingIndustryProNews

While several allegations of monopolistic practices have been made against Clayton Homes and Berkshire Hathaway, this website and MHLivingNews are the only ones to date that is known to have produced evidence, and provided to date this kind of logical, relevant data. Antitrust advocates will need proof, not just hot air. Evidence of how they rigged the system taken straight form their own documents and words are linked here.

 

What is certain is that Warren, if she wants to beat Senators Bernie Sanders, Kamala Harris, Cory Booker, former VP Joe Biden or others, will have to set herself apart in a way that connects. She will need even more energy. We will naturally stay in touch with the White House, Team Trump, and others too.

We’ll play close attention, engage to the degree possible, and let our audience know. If you thought that 2016 was a wild campaign, hang on to your hats.  2020 could prove to be the most energetic campaign ever. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

HistorySeriesEventsDescribingAmbitiousTriesDominateManipulateOppressOthersThatCreatesDesireAmongFreedomAmongThoseBeingManipulatedDisadvantagedControlledLATonyKovachBy L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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Radically Aspirational, Black History, Affordable Housing, Social Justice, and Manufactured Homes

 

 

 

 

 

Grasping True Value of the Green New Deal for America, Affordable Housing Professionals and Advocates

February 15th, 2019 No comments

 

GraspingTrueValueGreeNewDealForAmericaAffordableHousingProfessionalsandAdvocatesMastheadLATonyKovachMHProNews

Every romance or seduction, each marketing pitch or sale, and every con job begins with a common point of departure.  Something seemingly desirable is offered or promised.

 

The challenge becomes in discerning what is authentic and what is bogus.

The Green New Deal is the logical evolution of the direction that Democratic politics in the U.S. has been heading toward for years. It includes pledges and goals that involve housing, transportation, energy, incomes, healthcare, education, and more.

Right or wrong, the Green New Deal frankly builds on what came before it. An important element of the Green New Deal is the word “free.”

In marketing and selling “free” is a common phrase. Why? Because for decades, it has worked at attracting prospects and closing deals.

The question becomes can the party or person making a given offer deliver on the dangled pledge?

Senator Bernie Sanders (VT-I, who caucuses with Democrats) and U.S. Representative Alexandria Ocasio-Cortez (AOC) (NY-D) make no secret about the fact that they believe in socialism. Give them and others like them credit for being up-front about their beliefs.

Among the points in the Green New Deal is the call for high-speed trains and an end to air travel. There are numerous challenges to achieving that in a decade. California Governor Gavin Newsome just announced the cancellation of much of that state’s high-speed rail project. Billions have been wasted, per their own statements.

 

 

Per CNBC,A decade ago, California voters approved Proposition 1A, authorizing nearly $10 billion in bond money for the construction of the high-speed rail system. Since the 2008 vote, though, the project been plagued by delays and cost overruns, and polls show most California voters want the funds to go for something else other than high-speed rail.” It could be 77 billion to 98 billion to complete the 520 mile project, which now might be done by 2033.

If California can’t make high-speed rail work for about 500 miles, how is it supposed to work for all of America in only 10 years, as the Green New Deal proposes?  See the Democratic plan’s overview, in their document linked here.

Local resistance to a large solar project in Virginia is another example of the environmental, cost, and other the challenges that the Green New Deal (GND) backers face.

There is one bright spot that we will look at for the GND. But much of the proposal faces practical, economic, modern, and historic challenges. If one summed up the problematic portions, it could be called a socialistic utopian dream. Let’s consider that historic track.

 

Historic

Modern Venezuela is a tragic economic and political basket case. A nation that was far more prosperous only a decade ago is now being held together by the military. The very guns that Sanders and AOC would take from citizens in the U.S. – given the chance – is what Venezuela’s police and military must threaten or use to keep those who were promised a socialist utopia from rebelling against their living hell.

The term “Nazi” is a contraction of “National Socialist.” It’s a leftist perspective, not a conservative one.

 

NaziProgramFordhamUniversitySocialismMastheadManufacturedHousingIndustryMHProNews

 

The Nazis came to power through bold lies, organized terror, and intimidation tactics. Free healthcare and other aspects akin to parts of the Democratic agenda of today was promised by the Nazis.  The above is from Fordham, what’s below is per the BBC.

 

NaziProgramSummaryBBCMastheadBlogManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

But those big, bold early lies and deceptions resulted in death camps.  Their concentration camps were slave labor.  One kind of social ill was arguably replaced by far worse ones. The loss of freedom by Germans to the Nazi regime was held together by propaganda, secret police, a surveillance state, and the point of a gun or bayonet.

Cuba. Soviet Russia. Red China. They all followed similar patterns to modern Venezuela or Nazi Germany. Promises were made but were not kept. The big lie was what began the journey down the path of a loss of personal, economic, religious, and economic freedom.

 

 

The Green New Deals True Value is…

The true value of the Green New Deal is to reveal the combination of hypocrisy, ignorance, corruption, and/or lunacy of those who promote or obscure its reality.

The true value of the Green New Deal (GND) is that if it is properly exposed, it can for a time beat back the decades of deception that led Americans to this tipping point.

Abraham Lincoln said that America could only be conquered from within. Here’s how he phrased it, per BrainyQuote.

 

America will never be destroyed from the outside.
If we falter and lose our freedoms, it will be because we destroyed ourselves
.”

 

Showman P.T. Barnum cautioned that “There is a sucker born every minute.”

Samuel Clemens, writing under his famous pen name of Mark Twain, mocked the liars and con artists of his day like this: “Get your facts first, then you can distort them as you please.”

Leaders grasp nettles,” said David Ogilvy a military officer who became known as the known as the “Father of Advertising.” Give President Trump credit for grasping the nettles and saying that America will never be a socialist country. Time will tell if that call to action is successful.

The battle of good vs. evil reportedly goes back before the dawn of humanity. God created angels, says the Scriptures. Some of them decided not to serve. The devil known as Satan led humans via the subtle lie into temptation too. What was that lie?

You will be like God, knowing good and evil.” The subtlety was that Scripture says that God had already made Adam and Eve in the Creator’s own “image and likeness.”

 

Free enterprise is based upon a free and authentic exchange, not forced coercion or deception. The Ten Commandments, properly understood, are what society needs to govern the behavior of people.

Those of us fortunate enough to have learned in junior high school that “there ain’t no such thing as a free lunch,” or “TANSTAAFL” already realize that someone always pays.

The payment for socialism’s false promises are a loss of freedom.

As affordable housing professionals, investors, and advocates must clench that the battle for America involves information vs. misinformation. The fight for America include media wars, cultural allurements, legislative, regulatory, capital access, and organizational struggles.

One potentially good thing about the Green New Deal? It takes an antitrust stance. When one steps back and sees what is actually happening in our industry and America at large, the steady of consolidation of wealth and power is being achieved through monopolistic practices.  Break up those monopolies, if they were accomplished through illicit means, fine them each the tens of billions that they’ve arguably cost our nation and its people. See the related reports for more.

Manufactured homes are the most proven form of largely unsubsidized affordable housing in the U.S. This once greater in scope industry nevertheless is producing its best value homes ever. Yet they are misunderstood.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Each photo is of a modern manufactured home, which can be 2400 sq ft or more in size, 1 or 2 levels, set over a basement, or can be as modest as 320 sq ft. These homes are all built to federal construction and safety standards that went into effect on June 15, 29176, administered by HUD, and are thus known as “HUD Code Manufactured Homes.”

2018DataShareofHousingMarketManufacturedHousingInfographicDailyBusinessNewsMHProNews612

 

That too is akin to the cause and effect of what’s led our nation and this industry to this nexus. Independents? Investors? The Green New Deal is Chinese word for crisis, which is danger as well as opportunity.

 

WhenWrittenInChineseCrisisComposedTwoCharactersOneDangerOtherOpportunityJohnFKennedyQuoteTonyKovachMastheadBlogMHProNews

The chance to break free of the grip of those who peddle misinformation for their own benefit may have never been greater for the U.S. than at any time in the last 50 years. That may be the bottom line true value of the Green New Deal. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

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Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

February 9th, 2019 No comments

 

ConquestCapitalismThoughtsofChairmanWarrenBuffettBillionaresCampaigntoControlTrillionDollarAffordableHousngMarketDailyBusinessNewsMHProNews

 

The year was 1998. It happened to be the year that manufactured housing hit its last peak, but it was also the year that Simon Reynolds compiled and published “Thoughts of Chairman Buffett – Thirty Years of Unconventional Wisdom from the Sage of Omaha.”

 

ThoughtsofChairmanBuffettThirtyYearsUnventionalWisdomSageofOmahaSimonReynoldsDailyBusinessNewsMHProNewsUntil you turn to the back of Reynold’s book, not many pages in my copy of his thin volume are even numbered. Starting on page 141 are the following subheadings, bulleted below.  With those one can start the journey of understanding Buffett and his success formula.

 

  • Think Long Term
  • Buy Businesses You Understand

 

After the second bullet, you find this quote, “Remember his [Buffett’s]Circle of Competence theory. Step outside of it and the vultures will begin to gather. Stick to investing in industries you know something about.  When you have a feel for how the game is played, you are much more likely to score a home run…”

Later, Reynolds says this…

Part of understanding a company is understanding its management team. Are the executives competent?

Are they experienced? Or, as Buffett would say, are they fanatics?”

 

  • Don’t Overdiversify

You can’t be Bo Jackson in investing. Spread your energy and capital too many ways and you are courting disaster.”

For those who don’t know – or need a refresher on – Bo Jackson, here it is.

 

BoJacksonBaseballFootballWarrenBuffettQuoteMastheadBlogDailyBusinessNewsMHProNews

 

Disclosure

We are editorially pro-free enterprise.  But for reasons that will be understood from the research and linked reports, our publication is a Buffett critic.  Some believe he ‘saved’ manufactured housing in 2003.  Did he save this industry, or rather, did he start his conquest of it?

The evidence-to-date suggests that the third-richest man on the planet has purportedly mastered the art of the conceal with respect to manufactured housing.

After years of Buffett and industry research – plus my roughly quarter-century of direct involvement in this profession – there are many things that Buffett says that ought to be understood through these prisms.

  • What Warren Buffett said,
  • What he means.
  • The head fake.

Buffett is routinely selling. First, he is selling himself.

Then, he is selling his business and investing model.  There are plenty of takers on that, in investing, business, media, politics, and so on.

Third, Buffett is coy. Some things he says are straightforward and spot on. Other statements from Buffett have a veiled or hidden meaning. As a critic, let me note anew that with all people or organizations, the principle of ‘wheat and chaff‘ should be applied. Learn what to keep and utilize, but also learn via discernment what ought to be ignored, discarded, or understood in a different fashion than what the speaker may imply.

 

Conquest Capitalism

Let’s begin to popularize or coin a new phrase. Not crony capitalism. Not vulture capitalism. It isn’t a phrase from Reynolds’ book.

In Buffet-World, it is all about we what we are hereby going to dub “Conquest Capitalism.”

Buffett uses capital, information, headwinds, and understanding – including the essentials of human nature, and human weaknesses – to conquer.  “The Moat” is a term for the strategic principles used by Buffett in conquest capitalism. 

Conquest capitalism occurs through capital and the understanding and maneuvering of basic principles. Some of those are noted in Reynolds thin volume, like those quoted above or what follows.

Here’s a gem under the heading, “On Independence” – “You have to think for yourself. It always amazes me how high-IQ people mindlessly imitate. I never get good ideas talking to other people.” So said Buffett, claims Reynolds, citing U.S. News and World Report, June 20, 1994.

Or this “There’s something about smart people explaining ideas to an orangutan that makes their decision making better.”

Or “…people are creatures of habit.” Know right now that Buffett and his Berkshire brands count on that, big time. He counts on your habits. Buffett and his acolytes count on the habits of your team, and the habits of millions of others too.

Uncertainty actually is the friend of the buyer of long-term values,” said Buffett per Forbes 8.6.1979. Reynolds has that under the heading, “On the Advantage of Chaos.”

Buffett is also quoted saying “… – it’s the weak link that snaps you. And frequently, in the financial markets, the weak link is borrowed money.”

One could go on, but that’s more than enough Buffett quotes to outline what follows.  On his borrowed-money point, consider the reports linked here and here.  Arguably, no one can grasp why manufactured housing is as small as it is today without reading and understanding the nuances of those two reports, and others like it.

Buying and selling housing in the U.S. is a multi-trillion dollar proposition over the course of a decade. Last year, per the sources cited in the infographic below, sales of new and existing single family-homes and condos equaled about $1.6 trillion dollars in 2018 alone.

What the data reveals is that manufactured housing, properly understood, could take a huge leap ahead of its currently poor sales levels.  If you are an investor pondering this sector – or are already in manufactured housing – be mindful that the growth potential is stunning.

But if so, the curious mind should ask questions like this one. Why hasn’t MHI – or Clayton Homes, 21st Mortgage and Vanderbilt Mortgage and Finance for that matter – done a better job of marketing or advocacy on issues like zoning and placement, financing parity, and other key obstacles?

Or why have the powers that be that flow from Omaha to Knoxville, TN and into Arlington, VA seem to constantly be in motion, with so little to show for it at year’s end?  Isn’t there plenty of demand for affordable housing?

Ponder the 2018 factoids, data, and quotes that follow in this infographic.

 

2018DataShareofHousingMarketManufacturedHousingInfographicDailyBusinessNewsMHProNews612

The headline for this article includes the word “billionaires,” plural. There are more than one in the hunt, so that is not a typo. But Buffett has a clear edge at this time. One of his close friends, Bill Gates – whose Bill and Melinda Gates Foundation Buffett is a trustee of – has been exposed to Clayton Homes and manufactured housing too.

 

When you examine years of research, what you may learn by considering the history of MHVille is this. The Omaha-Knoxville-Arlington axis are posturing activity that seems to the casual observer to aim at promoting growth, or removing regulatory barriers. That said, note that the powers-that-be are not using their best possible arguments for zoning or other issues. The text/image boxes below are each hot-linked to a report on that topic.

 

State of the Industry 2019 – Reality vs. Potential for Manufactured, Modular, and PreFab Homes? New Infographic

 

Meanwhile, Berkshire’s market share in manufactured housing grows.

 

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003MHanufacturedHousingIndust

Clayton Homes, 2003. After the Buffett Berkshire Buyout.

 

They are making billions now. But through patience and conquest capitalism, manufactured homes could swell into one of the largest growth industries in the nation.

 

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEnd2017MHanufacturedHousingIndustryProNews

Clayton claims they had ‘only’ about 47.7 percent of the market at the end of 2017. Other sources indicate the total could be 50 percent. Either way, the Moat is working.

 

Steady persistence is an element of the Buffett play.

YouMHProNewsSeemToHaveConceptualIQThatIsMoreImportantThanSpellingAbilityQuoteMastheadMHProNews

Quote from an MHI member, business executive.

Had Buffett’s Berkshire tried to buy the entire industry in 2003 – which his resources could have allowed him to do – regulatory alarms would have sounded.  Patience allows him several luxuries. One is less regulatory scrutiny. Less chance for antitrust action.

Two, patience in a depressed industry sector allows him to acquire pieces of manufactured housing at a bargain “value,” which is also part of the Berkshire Moat model.

 

 

 

While You and Others Sleep

While you are running your path today, Buffett’s zealous business-unit leaders and their minions are waging a slow-motion war. Their leaders are taught to think long-term. Most others in this industry are thinking only about today, this week, month, or quarter.

That’s part of what allows conquest capitalist tactics – including that strategic Moat they use –  to beat competitors over time.

Some sell out to Clayton, or one of the other big three firms that dominate manufactured housing.  About 5 years before Berkshire entered manufactured housing in 2003, the three biggest firms had about 44 percent market share, said Buffett in an annual letter to shareholders.  Today, three firms have about 80 percent, and those 3 are all different than what existed 20 years ago.

Somewhat related, the SEC, it should be noted, will not yet say what stock(s) Joe Stegmayer, former Chairman and President of Cavco Industries and still Chairman of MHI, invested in that purportedly caused their legal fracas to erupt.

Over a dozen shareholders’ plaintiffs attorney firms are circling MHI member Cavco.

As a factoid, before going to Cavco, Stegmayer used to be a division president for Clayton. The growth at Cavco occurred after 2003, the same year that Buffett bought into MHVille. Coincidence?

Nor will the SEC say what investigation, if any, they are doing regarding possible collusion between various brands in manufactured housing. But if there were no investigations underway, wouldn’t the SEC just say so? We know from other sources that the CFPB and HUD are investigating the Berkshire brands in manufactured housing. Time will tell what comes of it.

 

Information and Disinformation

It isn’t just information, it is disinformation, that the Omaha-Knoxville and their nonprofit cat’s paw in Arlington, VA use.

Buffett and Clayton frankly don’t need their pawns in Arlington to understand anything. That’s not to demean anyone at MHI.  Rather, it is a simple reality. As long as MHI staffers do what Omaha-Knoxville want, as they want it – their ‘job’ is secure.  They can fail or succeed, it matters not for the purposes of their Moat.  The Illusion of Motion is what matters.

So there is no need for a conspiracy theory. The folks at Arlington could be Buffett’s proverbial “orangutan– see quote above – and that part of their strategic Moat system will work just as well.

From Buffett’s tower in Omaha, does it matter if MHI is hopelessly inept and ineffective at their claimed goals? Does it matter if MHI is cagily corrupted? Or some mix of those?  How did the manufactured home industry – which once outsold RVs 3 to 2 about 2 decades ago – slide so far that it now trails RVs by some 5 to 1?  What coach could keep their job with such poor performance?

Unless poor performance is okay? Who would pay bonuses for performance facts like that?

 

ManufacturedHomeMHShipments1990-2017MastheadManufacturedHousingMHProNews600

In 1998, manufactured homes outsold RVs by about 3 to 2. Today, RVs outsell manufactured homes by some 5 to 1. Manufactured homes are normally purchased for full time living, many RVs are for recreational or part time living. Many RVs – which are towable as well as motorized – can be higher than a manufactured home. The cost per square foot for a manufactured home is routinely lower.

 

Failure or success by MHI – either can suit the needs of the Berkshire brands.  Meanwhile, conquest capitalism is purportedly deploying the Moat to strike at the Achilles heels of various manufactured housing organizations’ interests

Rephrased, Buffett’s brands deploy capital – Buffett’s term – plus a clever blend of spin that includes facts, near facts, missed facts, and the confident trust that many won’t check the facts.

Plus, he counts on the fact that you and tens of millions won’t read, study, think, and plan as long-term as he and his colleagues do.

That’s a possible weak link. Because as soon as someone does thoughtfully study, in large part by looking objectively in detail backwards, one sees the picture that hundreds of millions miss.

 

InBusinessWorldTheRearViewMirrorIsALwaysClearerThantheWindshieldWarrenBuffettVASpapinquoteManufacturedHousingIndustryMHProNews

If you don’t pay attention to history, trends, and plan years ahead, Buffet’s conquest capitalism can sneak up one day and crush you. Another example, linked here.

 

Several thousand will read this column. I can’t say quite how many going in, but the rear view mirror trend lines suggest that our audience will find this topic of keen interest. Those thousands of readers will include the serious, as well as the merely curious.

It’s the few who are zealously informed and focused on ‘never quit until victory’ who will end up making the difference.

With some $500 billion of new capital coming back or into the U.S. in 2018 as a result of the tax cuts and jobs act of 2017, plus the Trump Administration regulatory reforms, this is possibly the best time in years to challenge Berkshire’s Moat.

 

CNBCCapitalIntoUSSinceTaxCutsJobAct500billionto1TrillionMastheadBlog

 

The Clayton retailers and Knoxville lenders’ can be outperformed. We’ve seen it done. We know those who are doing it in specific markets. On the consulting side of our operation, we’ve been part of several projects that have done it and are doing it at their local level.

 

That’s the introduction. Here’s the balance of the opening headline.

Corruption is rampant in America. That doesn’t mean that most are corrupt. That’s not necessary. It does mean that you can effectively buy off a few key people in high, important roles, and influence events in ways that few can imagine.

It means that billionaires can collude in ways that the SEC, FTC, or DOJ might not consider. We respect law enforcement, but one need not look far to see examples of justice gone awry in America.

So, if the Feds do get it on what’s happening in MHVille, they may or may not be willing to try undertake the effort to stop the collusion of the “conquest capitalists.”

Few should better understand than manufactured housing professionals how much misinformation is out there about our misunderstood industry.  Yet those misunderstandings are accepted as true.  Where is MHI’s efforts to correct the record?  Or to promote and explain the reality vs. the myth?

 

Our widely misunderstood industry is the wake up call for affordable housing industry pros. Misunderstanding is also the wake-up call for investors.  There is demonstrably no more proven solution to the affordable housing crisis than manufactured homes.  How is it even possible that it is so misunderstood?

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews-445x768

2018 infographic with 2017 data.

 

Misinformation can be Opportunities in Disguise

A source with deep ties to Clayton Homes said that they have a two to three year plan to roll out 1,000 to 1,200 Clayton retail centers within a two to three year time span. To most, that defies belief. We have no documentation to reference, it’s a discussion, per sources. Unlike other tips, there is no evidence we have seen yet for that claim. It might even be a false flag.

But is it possible? With Buffett’s billions, of course it is.

If it is true, that number of new retail locations would mean that every remaining independent is no longer necessary to Clayton. The dust hasn’t settled yet on the story linked below. But that recent – and still ongoing issue – is an example of how bold Clayton is already behaving.

 

“Mobile Home Militia,” Retail/Production Sources, Sound Alarm Against Clayton Homes, CMH, New “Anti-Competitive Practices” Allegation

 

Part of the word heard is that Clayton, following our report linked above, reached out to Regional Enterprises to try to ‘mend the fence’ that CMH allegedly busted. But however that scenario wraps up, it is a huge wake- up call to the industry’s independents, isn’t it?

The similar story below was exactly one year ago.  No one else in the industry trades other than MHProNews covered either one. Why not?

 

How Many MH Independents, Retailers Have Been Lost Recently? “They Think They Own Us”

 

Or where are the other trade publishers on this third-party report, linked below?

 

Examining Derek Thompson’s Atlantic Report on ‘Mobile Home’ Retail Market as Fastest Dying Business In America

 

It is very possible that Buffett and the folks in Knoxville have the following in mind. They are clearly supporting mostly Democratic candidates. They got a lot done – from their conquest vantage point – during the Obama Administration.

Well before the 2018 midterms were over, the 2020 contests were already underway. More precisely, as 2016 results became known, the battle for 2020 was launched. Buffett and his buddies are already deep in the hunt for those who will advance their agenda.

 

buffett-obama-mhmsm

Warren Buffett, left. President Barack Obama, right. Credit, Wikipedia.

 

For those who buy into those photo ops of ‘MHI leaders’ with administration or elected officials and their staffs, never forget that you don’t get more influential that the photos on this page.

 

WarrenBuffettBarackObamaAwardMedalMastheadManufacturedHOusingIndustryMHproenws

Warren Buffett’s grandson worked in the Obama Administration White House. You don’t get much closer to than that in terms of access. So MHI’s arguably red herring photos of MHI staff or board members with some representative or administration member, how does that compare to this? If Warren Buffett had wanted regulatory relief during the Obama years, don’t you think he could have had it? Isn’t it all part of his strategic Moat?

ManufacturedHousingIndustryInsightsManufacturedHousingInstituteMHICartoonMastheadCommentarySatireMHProNewsLifeStyleFactoryHomesLLC

MHIEmeraldCityOzManufacturedHousingIndustryManufacturedHousingInstituteMHIhumorsatireparodyMHProNews

It wasn’t until after we first published satire like this that MHI’s ‘engaged lobbyists’ reached out to the CFPB, and asked the business-friendly Trump Administration to consider changes that MHI claims to have been working on for years. Who said? A source at the CFPB.

RichardDickJennisonMHIPresidentPhotoBrianMontgomeryEnhancedPreemptionFHATitleChattelLoans1010RuleTimWilliamsDontLearnFromHist

We took MHI photos and turned them into satire. Instead of attempting to refute what MHProNews or MHARR reports, MHI has been using photo op images – like the one above – to ‘prove’ how much influence they have in Washington, D.C. and beyond. But you don’t get much more influence than Warren Buffett sitting with then President Obama do you? Why is mainstream housing roaring, and manufactured homes snoring? Why do MHI staff get bonuses? Photos are fine, but where are the measurable results for millions spent every year on lobbying, meetings, and promotion?

 

The Omaha-Knoxville-Arlington head fake is –  as Mark Weiss, JD, President and CEO of MHARR aptly put it – the illusion of motion and activity. When was the last time a con artist confessed until formally charged with crimes?

Factory-built homes are potentially a trillion-dollar-a-year industry. Patience and conquest capitalism is winning, and there is no reason to think that won’t continue. Unless the ploys are exposed, and then arguably the axis and their allies have to be defeated.

If we were wrong about our analysis of the facts and evidence, why doesn’t Knoxville and Arlington accept the offer to publicly refute our concerns? Why don’t they accept the offer to publicly discuss these issues, to be video recorded for later reply, in front of an audience of manufactured home industry independents?  Why not have the mainstream media attend such a discussion/debate?

Only in hindsight and by peeling away at enough layers of the onion does the fact-pattern and logic of their strategy become clear. The rest are details and commentary. See the linked text-image boxes for more details.

Investing? It would be hard to find a better bet than manufactured homes. Go back to the top and author Reynold’s quotes.  Grasp how logical affordable housing is as a business to invest in.  But to be successful, one must know how the game is played. Because the system, while arguably rigged, can be profitably beaten. Several are in the process of challenging the system, even as this is being written.

 

 

The Late Howard Walker and “The Book”

The late Howard Walker, Vice-Chairman for Equity LifeStyle Properties told me that “the money is in a book.” In context, he meant that the right book about manufactured housing was worth a fortune.

Properly understood, Walker’s point was arguably correct.

Whatever Simon Reynolds may have earned from “Thoughts of Chairman Buffett – Thirty Years of Unconventional Wisdom from the Sage of Omaha” was only a drop in the bucket compared to what is possible from shrewd investments combined with P.E.P. in manufactured housing.

unzipped-green-eye-black-background-collage-manufactured-housing-professionals-mhpronews-com-704x872pic-framed-

Protect. Educate. Promote – P.E.P. Officials. Advocates. Investors. The public. They are looking for us. Graphic credit, MHProNews, all rights reserved.

Not a ton of money from a book per se, but rather from the lessons that Buffett and his strategic/economic “conquest capitalism” Moat yields.

 

  • Some don’t fight the Moat because they don’t understand it.
  • Some don’t fight the Omaha-Knoxville-Arlington axis and their allies out of fear. We’ll explore the question of extortion and lack of options another time.
  • Some don’t fight it because they believe they benefit from it too. As Buffett Moat crowds out smaller players, some of the mid-sized ones think they can gain market share as well.
  • Some are the axis that makes up the Moat proper.

The industry is poised to be disrupted again, for a variety of reasons already in motion. The case could be made that this is the best time in decades to jump into manufactured housing, or to expand through prudent challenges to the Moat builders.  Because either out of patience, or whatever other reasons one cares to mention, Clayton and company are underperforming too.

So motivated, focused, well capitalized, disruptive performers could get in, and blow by them in just a few years. That will be explored too in an upcoming column.

The Moat and conquest capitalism are the truth hiding in plain sight.

To learn more about the Moat, see the linked related reports, further below. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

Surprising Discovery on Manufactured Housing’s Enhanced Preemption, Hidden Gem$

MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

 

“Democrats Are Sinful Hypocrites. Just Like All of Us.” Weaponizing Information, Senator Elizabeth Warren, and MHVille

 

“The Illusion of Motion Versus Real-World Challenges”

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

January 31st, 2019 No comments


WarrenBuffettsMoatClaytonHomesBerkshireHathaway21stMortgageUnderstandingManufacturedHOmesRequiresGraspingStretegicEconomicMoatsMHProNews

When someone is introduced to manufactured homes and their tremendous value, they are often shocked. ‘How is this much home for such a modest price possible?’

 

A key part of the answer mirrors any product produced in a production center.  Cars built in a driveway would cost far more than a car built in production center. A house built in the weather costs far more, and would take longer, than one built indoors.

After the blinders disappear, a common reaction is this question. ‘Why aren’t more manufactured homes being sold?’

 

 

That valid question is akin to the question the Urban Institute asked last year.

 

UrbanWireHousingandHousingFinanceManufacturedHomesCouldEaseAffordableHousingCrisisSoWhyAreSoFewBeingMadeMHProNews

https://www.urban.org/urban-wire/manufactured-homes-could-ease-affordable-housing-crisis-so-why-are-so-few-being-made The report is a mix of useful and questionable insights. It is referenced as an example of the Moat at work. It is also arguably a ‘reply’ to our pressure on MHI and Berkshire brands in manufactured housing.

 

But the Urban Institute didn’t disclose possible conflicts of interest – including, but not limited to – Warren Buffett being a lifetime trustee of their nonprofit. Does that insight help explain why that Urban Institute article that had 4 co-authors was crafted as it was? Or why the respected Urban Institute researchers fail to mention the behind-the-scenes input by Chairman Buffett’s Berkshire Hathaway owned Clayton Homes in that nonprofit’s January 2018 report on manufactured homes?

The answer to so many of the riddles about manufactured homes lies in the proper understanding of Buffett’s vision about strategic economic Moats. Understand this, and the key that unlocks the door to understanding begins to open.

 

 

Buffett’s Vision of “The Moat”

Buffett’s moat concept goes well beyond Berkshire. Its arguably influencing much of America’s economic, political, educational, or even social and moral life.

Almost everything can be weaponized to work for the advancement of “the Moat.”

A moat in BuffettWorld is a slow motion tool to conquer – build a monopoly – in any given industry. The meme below wasn’t made by us, but the quote serves to make a useful point, from Buffett’s viewpoint.

 

WarrenBuffettTheMoatQuoteMemeManufacturedHousingIndustryDailyBusinessNEwsMHProNEws

 

Understand that my writing about the moat should be understood as our editorially disagreeing with this anti-competitive approach.

We study and report on such an issue as a necessary step to foil what is perhaps the affordable housing industry’s greatest foe.  To defeat a powerful opponent, one must thoroughly understand what one is battling.

You may be the best builder of manufactured housing in America. You might be the best provider of financial services, or be good at retail sales, or whatever else. “The Moat” is at quietly work against your interests, period — unless you are allied with it. If you are allied with “the Moat,” it’s not fast wealth, it’s slow wealth that grows your market share.

The whole-time people working to broaden and deepen the Berkshire Moat in Manufactured Housing are smiling and praising you, they simultaneously be can be working to undermine you. This I know, because it happened to our business interests, and we’ve had others explain their experiences.  I’ve said mea culpa before and am confessing anew my prior naiveite.  The school of hard knocks is what aroused my yen to grasp what is happening to manufactured housing, and that forced me to learn more.

To spare reader’s redundancy and to keep ‘the powers that be’ attorneys from rattling sabers (again), what’s described herein are allegations.  The evidence in support of these contentions are found from articles linked from this post.

Moat-builders want whatever is yours at a discount. That’s a key to Buffett’s notion of “value investing.”

 

A Decade Ago

It was about 10 years ago that an article for the now defunct Manufactured Home Merchandiser Magazine your Masthead writer penned explained why Warren Buffett and Sam Zell where two reasons why the manufactured housing industry would survive its worst downturn ever.

As a brief segue, Zell and his operations are a separate question worthy of study, but this column is focused on Buffett and his moat principles.

In hindsight, that Merchandiser article had correct and missed points.  Buffett didn’t want to save manufactured housing.  Rather, he arguably set out to conquer manufactured housing.  The modus operandi for that conquest was the moat.  He bought at an industry low point.

Then, the industry went still lower.

While the industry shrank, Buffett’s Berkshire brands share of manufactured housing grew.  Coincidence?  Hardly.

I’ve had a book, “Quotes from the Chairman” – Buffett – on my shelf years before that Merchandiser column. Even as a mild-Buffett watcher, I frankly didn’t understand the moat until the last 24 months.

Even during the last 2 years, my understanding of the Machiavellian brilliance of the moat has grown in stages.  It may be that no one outside of the Knoxville metro better understands the Moat than your Masthead writer does.

I’ve personally invited the following to publicly discuss or debate the issues and concerns that relate to manufactured housing that we’ve raised. Those invitations to provide live or written comments have included, but not been limited to:

  • Kevin Clayton, President and CEO of Clayton Homes – a Berkshire Hathaway brand.
  • Tim Williams, President and CEO of 21st Mortgage Corp – another Berkshire Hathaway company that finances manufactured housing for independents. Williams is the former Manufactured Housing Institute (MHI) Chairman.
  • Tom Hodges, JD, Clayton’s attorney and who sits on the MHI Executive Committee,
  • Joe Stegmayer, former Clayton unit president, who went to what became Cavco Industries, and is the current MHI Chairman.
  • Nathan Smith, SSK Communities partner, Democratic player, a former MHI Chairman and the current MHI PAC Chair, and thick with Berkshire brands.
  • Richard ‘Dick’ Jennison, MHI President and CEO.
  • Lesli Gooch, Ph.D, MHI EVP and chief lobbyist.
  • Richard ‘Rick’ Robison, author, attorney and MHI’s general counsel.

Note many of the above – including Kevin’s father, Jim Clayton – at various times praised our pro-industry, pro-growth, pro-consumer work publicly. That was true up to about 2 years ago, when we apparently began asking – from their point-of-view – the ‘wrong questions.’  Once we asked the wrong questions, we became persona non-grata to be driven out of business. That’s simultaneously when they stopped directly replying to MHProNews or MHLivingNews.

But they can be understood as replying to us via surrogates, attorneys, and other tactics that are meant to shake us off the trail we’ve embarked upon.

Buffett’s Berkshire owns some 31 newspapers.  Why don’t those papers cover manufactured housing better, more objectively, more favorably, or more often? Why don’t those BH Media Group papers set the record straight on manufactured housing?  Buffett understands synergy.  It seems like common sense, doesn’t it?

Only the correct understanding of “the Moat” explains riddles like the one about BH Media.

 

ExistingHomeSales2018ReportJan22-2019YChartsNARMastheadDailyBusinessNewsMHProNews

 

Housing sales are a trillion dollar plus a year industry. More specifically, existing home sales for 2018 will be about 4.99 million units, with an average price of $293,500.00 per housing unit, per Y Data, which cites the National Association of Realtors™ (NAR).

That would be equal to about $1,464,565,000,000, or $1.465 trillion.

New conventional housing single family home sales, per the National Association of Home Builders (NAHB), are at the seasonally adjusted annual rate (SAAR) of 629,000 units at about $318,000 average sales price. That’s about $200,022,000,000 or 200 billion a year.

So total existing and new single-family housing sales are an estimated $1,664,587,000,000, for some 5.629 million units in 2018, per the sources cited.

Contrast that with manufactured homes at an average sales price of $78,900, per Census Bureau data reported in December 2018, for the period of July 2018.  Manufactured home sales are projected to finish the year at about 100,000 (+/-) new single and multi-sectional units for the year.

ManufacturedHousingTrillionDollarIndustry

How can the industry be doing so poorly?  Consider what Harvard’s Eric Belksy said circa 2002, when he projected that manufactured homes would become the dominate force in conventional housing.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Why was Belksy’s forecast wrong about the second quote?  Arguably because of the first quote.  He made his points prior to Buffett entering the manufactured home industry, and prior to Buffett applying “the moat” – including a manipulation of the credit markets – as it applies to manufactured housing.

 

MHI – The Moat Building Tool of BuffettVille

In a softball video interview with Kevin Clayton, posted at this link here, Clayton briefly explains the benefits that come from working with nonprofits and foundations. To understand the Moat, never forget that passing throw-away line.

The Manufactured Housing Institute – stunningly – can’t even create an accurate GDP figure on new manufactured home sales.  We’ve brought it to their attention, along with other factual errors they’ve published over the years.  Some of those corrections have been requested several times.  How can NAHB, NAR, or other industry trade groups create correct data, while MHI produces – at best – hit and miss data?

Why would Clayton and the Berkshire brands tolerate data errors published by their Arlington, VA based trade group?

Answer.  Fact errors can be useful for “the Moat.”

The logic is simple, once understood.  Buffett isn’t looking to have more competitors in manufactured housing.  Incorrect information is just one more “shark in the water” of the moat.

Heavy regulations?  No problem, for Buffett’s moat.  That’s a barrier for entry, or a barrier for staying in the business.

Bad media? No problem, not for widening and deepening Buffett’s moat.  That too is a barrier for entry, or a barrier to remain in the business.

Keep in mind what Kevin Clayton said about Warren Buffett. He preaches the Moat, and being a tough competitor.  Most of the rest is up to the business leader, supported by Berkshire’s billions. In that previouslylinked video, Kevin Claytonsaid that even if he lost money for 5 years on Clayton Homes – but widened the Moat – that would be okay withWarren.”

Clayton has made money, not lost it.  But what makes Kevin’s comments interesting is that they’ve kept some unprofitable locations open for some time, finally closing about 100 of them.  How many previously successful independents were put out of business, because of anti-competition strategies like these?

But the biggest hit – the proverbial smoking gun – is how Berkshire owned 21st Mortgage Corpmanipulated the truth to cut off lending to numerous independents. The Berkshire brands in MHVille continue to use MHI – and their own influence – to misdirect the Duty to Serve manufactured housing mandated by the Housing and Economic Recovery Act (HERA) of 2008.

Some of what’s described herein might be entirely legal.

But when collusion exists between units of Buffett’s brands – that he himself says are operated as independent businesses – that points to a legitimate antitrust action, based on my lay reading of the law.  Others who are attorneys that have looked at this, and they’ve said they get the logic too.

 

Despite 3rd Party Praise, to Understand How Poorly Manufactured Homes Are Doing, Consider This Comparison

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryMashteadLATonyKovachMHproNEws-756x768

 

ScholasticCororatonFigure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

Realtor University, Scholastica ‘Gay’ Cororaton, CBE.

 

ManufacturedHomeMHShipments1990-2017MastheadManufacturedHousingMHProNews600

20 years ago, manufactured homes outsold RVs by about 3 to 2. Today, RVs outsell manufactured homes by some 5 to 1. Manufactured homes are normally purchased for full time living, many RVs are for recreational or part time living. Many RVs – which are towable as well as motorized – can be higher than a manufactured home. The cost per square foot for a manufactured home is routinely lower. When one understands the facts and the trends, a more complete picture of how manipulated the manufactured home market is comes into focus. 

 

To Sum Up

Why is manufactured housing struggling during an affordable housing crisis?

Because the goal of “the Moat” is to squeeze businesses – with what looks to be market forces – slowly out of business. Competitors may sell out to Berkshire owned Clayton – for less than it would be worth in a normal market – or they may be forced out of business, period.

We are not the only publisher to mention the Moat, or the monopolistic practices of Buffett’s Berkshire.  But no publication has peeled by the ‘how it is done’ – not just the outcome – as much as MHLivingNews and MHProNews has. The right Google searches will demonstrate that point.

The Moat is the truth hiding in plain sight.

To learn more about the Moat, see the linked related reports, further below. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

Warren Buffett’s Berkshire Hathaway, Clayton Homes, 21st Mortgage Corp and their “Strategic Moat,” Plus Manufactured Housing Equities Updates

 

MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

 

Puzzling Case of Millie Francis, Where are Religious Liberty, Fair Housing, Resident, and Manufactured Home Organizational Defenders?

 

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

God’s Sense of Humor, Tilting After Windmills, Manufactured Housing – Merchants or Crusaders?

January 27th, 2019 No comments

 

GodsSenseofHumorTiltingAfterWindmillsManufacturedHousingMerchantsOrCrusadersMastheadMHProNews

What’s wrong is that enough people don’t ask what’s right – that’s a faithful paraphrase of the brilliant writer and believer, G.K. Chesterton.

 

One need not look far to discover that the Creator of all has a healthy sense of humor.

 

Warren Buffett, Kevin Clayton, Tim Williams – among their allies, pawns, lackeys, and stooges – could not have counted on their strategic economic Moat encountering the various resistance personalities found working in the manufactured home industry today.

Former Manufactured Housing Institute (MHI) President Chris Stinebert made a series of arguably interesting, inaccurate, and mistaken comments in his departing message to their association members and followers. One colorful piece of advice Stinebert gave was not to go tilting after windmills.

There are those who understandably believe that it is safer to be a so-called “Merchant” – someone who a self-described MHVille merchant said will do business with anybody –  than it is to be a Crusader, who could be defined as someone who fights for whatever is right.

But as the manufactured housing industry approaches 43 years since the construction of the first HUD Code for manufactured homes on June 15, 1976, there is an increasingly self-evident reality. It’s this. After decades of many MHVille industry pros being mainly merchants, the pool of merchants has steadily shrunk since the last industry high water mark of 1998.

Buffett says he loves to read. He finds value in history, facts, and figures. It’s a point the Oracle of Omaha and this far lesser known Masthead writer concur on. Wheat and chaff. Accept the truth, from whomever or where ever you find it.

In God’s grand sense of humor, Buffet’s minions picked an avoidable fight with this multiple award-winning history major, who happened to be a philosopher’s son. What rich irony!  That divine joke keeps me rolling, in more ways than one.

Not everyone in MHVille is a short-term thinker who will sell out the Master for 30 pieces of silver.

America is a nation filled with tragedy as well as hopes, with a rich tradition of attainable dreams.

Only those who will use some of their time, talent, and treasure to support the crusaders for justice in MHVille will hope to see the day when MH Nation becomes a reality. MHNation is attainable, but it requires enough sufficiently motivated efforts, hands, wit, and resources to help build and sustain it.

 

 

Big and Small, They Lost It All

Over the years, this writer has peered into the eyes of mom and pop businesses who didn’t understand what happened to their once thriving enterprises or land-lease communities.

This Masthead writer also watched as the once mighty fell too.  Previously dominating ‘old Fleetwood’ or ‘old Champion’ vanished in less than a decade, under the headwinds of the builders of Buffett-style strategic economic Moats. 

If the former giants of MHVille didn’t survive the strategic economic Moats of Chairman Mao, pardon me, Chairman Buffett, then what hubris does it take to believe that the also-rans in Claytonville can survive “the Moat’s” steady, grinding, and seemingly invisible methods?

We respect George Allen’s service to his nation.  Lord only knows what he may have encountered during Desert Storm or in the deadly jungles of Vietnam.

That said, it’s pathetically laughable when someone like George F. (F?) Allen calls himself the industry’s “historian.” Here’s how he said it in a recent post, “This blog posting is sole national advocate, official ombudsman, historian, research reporter, education resource, & online communication media for North American land lese communities!

 

CommunityInvestorJan152019GeogeFAllenMastheadBlogMHProNews

The next time the Omaha-Knoxville-Arlington axis asks for a hit-job, please send someone less self-contradictory, and more competent.  History?  Allen’s view of history puts him in the center of it all. Fascinating choice of who to answer, Kevin. 

 

Listening, musing, and reading pay. It was listening to a former client/supporter of Allen say, ‘With George, it’s AAA. All About Allen.” Priceless insight, spot on, and moving on.

 

 

Jesus and the 10

Jesus never preached socialism. Nor did Jesus preach monopolistic methods.

Properly understood, the 10 Commandments that Moses brought down from Mount Sinai protect private property and human wealth honestly earned.

It’s simple, really. Constantly reference, strive to support, and follow those Ten Commandments. Let those 10 and the lessons of the Good Book be your decision-making guide. When those 10 Commandments are understood and followed, society will thrive. When ignored, mocked, or trampled underfoot, the weak or most innocent become victims.  The Ten, with motivated merchants, make for the sufficient needs of crusaders.  The rest are details and commentary.

 

UnlessThereisAGodAllMoralityIsJustOpinionBeliefsNoKingsNoMonopoliesNoOligarchsAmercanWayMHProNews

The top images are composites from the Prager U video, further below. Over a million views on that thought-provoking video.

 

The Rev. Martin Luther King, Jr. Ph.D. was a sinner, like this writer, and the rest of us mere mortals. King had strengths and weaknesses.  Ditto. But that thoughtful strategist led a peaceful revolution in his day. King was a Crusader. That eloquent preacher had merchants who supported his crusader efforts.

Crusaders like Jesus, King, or Gandhi are always the ones who change the world.

 

MahatmaGandhiWIkiMastheadManufacturedHousingIndustryCommentaryMHProNews

This is historic. This is part of authentic history. 

 

Together, with arms locked, King and others marched against the oppressors of his time. King was a visible figure, but never forget that there were numbers of less visible ones who made sure that King secured the victory they sought.

Affordable quality housing – which can be served in the form of modern manufactured homes – is a civil, constitutional, and a legal right. But it will take enough Crusaders to beat those who’ve manipulated the American system in a way that moat builders seek to enrich themselves, as they arguably defrauded their neighbors as they smiled.

 

Don’t stop being a merchant.

 

But if you don’t want to be a statistic among other merchants in MHVille who’ve fallen before you, if you don’t want to be another “value acquisition” of Berkshire or a Buffett buddy, then ponder this reality.  You must use some time, talent, and treasure to support new structures to replace the purported corruption of Arlington VA based MHI and their masters in Omaha and Knoxville.

Buffett’s smart, in a Machiavellian way. Chairman Buffett and his are patiently grinding the industry into powder that he can easily swallow at a cheap price.

You, we, and other people of good will can use cunning, truth, and existing laws to beat Buffett at his own game. Who says? Centuries of Bible stories tell me it’s so.

There are various ways people around the globe express the Ten Commandments. Properly understood, at their core, they are the same. It’s noteworthy that Christian, Jews, Muslims and other believers have similar beliefs to these 10 Commands.

 

 

Read the related reports, further below, for added insights.  Reach out by phone, message, or email to tip, talk or join the merchants who are ready to be or support the spirited crusaders that can beat the corrosive effects of manipulating oligarchs and their Moat builders. Communism and the Nazis were defeated. America had its trust-busting era, that broke up the monopolists. Another one lies ahead. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

 

Puzzling Case of Millie Francis, Where are Religious Liberty, Fair Housing, Resident, and Manufactured Home Organizational Defenders?

 

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

Manufactured Housing Institute’s Three Stooges? SECO ‘Leaders’ George F. Allen, Spencer Roane, Tom Lackey and ‘Rent to Own’ Scams?

January 16th, 2019 No comments

 

ManufacturedHousingInstituteLogoMHILogoSECOlogoSoutheasternCommunityOwnersSymposiumLogoGeogeAllenSpencerRoaneTomLackeyMHProNewsMasthead

 

Tony…as I think you know, it’s ALWAYS been my position that lease option and rent to own are illegal if they are a “workaround” for chattel financing, which is what most such schemes are…” – MH Industry attorney, not an association exec, in off-the-record comment about his legal perspective about the issue that follows.

 

George F. (F?) Allen has protested the use of the quote above to MHProNews from a non-association industry attorney who wanted to remain anonymous.

Perhaps Allen doesn’t honor off-the-record, but we do.  Beyond honoring the pledge of protecting a source, is an attorney’s name even necessary? Arguably, not when the New York State Attorney General has successfully sued and forced about 100 manufactured home communities and their owners to settle their own rent-to-own cases.

That’s a nettlesome fact for Allen and company, see the NY AG press release to MHProNews, linked here.

 

AGUnderwoodAnnouncesMajorSettlementWithManufacuredHomeParkOwnesToReformRentToOwnFollowingAGIndustryWideInvestigationMHProNews

The issues are many, but let’s simplify some of them to these bullets.

 

  • Allen, Roane, and Lackey are all ‘leaders’ in SECO – the Southeastern Community Owners Symposium.
  • All three of the above fellows have drawn negative mainstream media attention for the use, or defense of the use, of ‘rent to own,’ ‘lease purchase options,’ ‘contract for title,’ or other forms of arguably “disguised credit transactions.”
  • Allen, Roane, and Lackey have all personally earned money from ‘rent to own’ (RTO), ‘contract for title,’ ‘lease purchase options’ (LPO) – or whatever you went to call the modern version of a Lonnie Deal (see download, linked here).  What might have been lawful prior to the Safe Act, and the advent of the Consumer Financial Protection Bureau (CFPB), is now deemed in the eyes of legal authorities as a “disguised credit transaction.” They are routinely seen as a form of predatory lending, and have reportedly harmed numerous consumers who trusted Lackey, and others.
  • You don’t have to look beyond the NY AG Case against for proof, do you? If larger manufactured home community (MHC) operations could not make this work in a legitimate fashion, per the NY AG, are industry independents really going to believe that Allen, Roane, Lackey and SECO know some trick that the large portfolio operators attorneys didn’t discover?
  • Perhaps to protect their own revenue stream and reputations, Allen and Roane defended and/or refused to condemn Lackey.
  • And over the course of several years, hundreds of manufactured home community owners have trusted Allen’s and Roane’s respective Schticks. How many ticking time bombs await?
  • Can you imagine the glee a consolidator might feel, if hundreds of more communities hit the market at a depressed price, due to bad advice taught at SECO and/or by Allen?
  • Allen likes to do magic tricks to entertain his audience. Let’s see what rabbit Allen tries to pull out of a hat to distract his readers and students from the cold hard facts that the NY AGs cases exemplified.
  • But the risks to consumers and independent manufactured home professionals arguably doesn’t stop with problematic RTO or LPO contracts for title. Because they have sponsors and often ‘big name’ supporters. Among them? Joe Stegmayer, who stepped down from Cavco leadership under a SECO Investigation cloud, but who has stayed on as MHI Chairman. Beautiful.
  • Stegmayer graced Allen’s ‘roundtable’ stage, giving each other some measures of ‘respectability.’
  • Fleetwood, a division of Cavco, has given SECO support too. So has MHVillage, and others. Will they demand indemnification for the so-called education that has been taught?
  • But has anyone asked what the liability and exposure are for those who sponsor so-called education that is flawed and risky at best, or illegal at worst?
  • What will that costly MHM certificate Allen sells mean to outsiders, if Allen, Roane, and Lackey end up in more media and/or legal hot water?

 

Ironically, it is Allen who volunteered or was deputized by MHI supporters to call for a boycott of this publication. That can be antitrust trigger. How ironically hypocritical.  See evidence of that and more at the download, linked here.

Besides years of arguable jealousy by Allen over our many-times-larger professional audience, is the fact that MHProNews has previously warned industry communities and retailers about the potential risks from using disguised credit transactions in today’s legal and regulatory environment.  Not to be overlooked are ties with MHI…

 

 

MHI Ties?

Where is MHI on this? A check of their website would suggest, silent. Rather akin to their silence on other issues – like the slow monopolization of the industry – that might be useful or importance?

ManufacturedHousingInstituteLogoMHILogoDIsguisedCreditTransactionMastheadCommentaryMHProNews

Allen, Roane, and Lackey can be viewed as the part time critics, and de facto part time supporters of MHI and their ‘big boy’ backers. Don’t ask for consistency from Allen, because you won’t likely find it, save in his arguably hypocritical inconsistency.

But the warning to industry pros is once more given. Allen, Roane, Lackey, and SECO are the typical stew of seemingly useful, but also problematic education. MH Industry

Professionals, hungry for educational opportunities, turns to them in desperation, and they find smiling carnival barkers.

State AG Files Suit Against, Manufactured Home Community, Rent to Own, Lease Purchase Option Warning

A entertaining and feel good blathering isn’t the same as genuine, legally sound, knowledge.

Just read the list of questions, linked here, put to George F. (F?) Allen and his cronies, and Allen’s non-answers.

DuckDodgeDismissDistractDetractDefame6DsMastheadCommentaryManufacturedHomeIndustryMHProNews

Caveat emptor. Let the buyer of such education beware. But sponsors, beware too. Because some legal authorities tell us that sponsors of legally risky education may have liability too.

In closing this column, let’s state the obvious. We are not the New York Times or Fox News. We do business development and other expert services to manufactured housing, not just publishing.

Our form of trade journalism is different than what mainstream journalists do.

But no serious person in our industry has disputed the facts, documents, evidence, and concerns we’ve raised. Allen, despite his roar and bluster, was given the chance to disprove a single claim. He hurled invectives instead. Again, the give and take are linked here, and included several individuals in BCCs on both sides.

One catches flak only when over the target. One of numerous examples is the target below.   The axis hates it, because its’ their own words, how do they argue against their own words? Allen and company have the same problem.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

Be it the three stooges, or the Omaha-Knoxville-Arlington axis, their allies and surrogates, our catching flak is a badge of honor, given the sources.

From the smallest to the biggest firms in our industry logon daily to MHProNews by the thousands. They find the content relevant and useful. As an MHI member executive said in the quote below, what we may have periodic typos, but we make a logical case.

 

YouMHProNewsSeemToHaveConceptualIQThatIsMoreImportantThanSpellingAbilityQuoteMastheadMHProNews

 

That’s what vexes the Omaha-Knoxville-Arlington axis. And it is nettlesome to the three stooges whose purportedly ‘educational’ efforts more closely resembles scams. Sad. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

 

New Era in National U.S. Manufactured Home Community Representation Underway?

The Future of Retail, Disney, ‘Trailer Trauma,’ and Manufactured Housing

 

Manufactured Housing Institute Housing Alert, Affordable Housing Crisis, MHI’s #NettlesomeThings Response

 

 

 

 

 

Don’t Be Another Victim, Push-Back Pay$, Phase Two of Manufactured Housing Revolution

January 14th, 2019 No comments

DontBeAnotherVictimPushBackPaysPhaseTwoManufacturedHousingRevolutionDailyBusinessNewsMHProNews

If you look around the world, Americans have much to be grateful for, and so too does our once far greater industry. But as one carefully peers and ponders the details, one begins to sees that there’s so much more that could be accomplished in our nation.

 

 

The same holds true for manufactured housing (MH).

Our MH Industry has underperformed for decades.  What will you do about it?  How will you be part of the solution?

Let’s be blunt. Thousands of our fellow industry independents have already failed. Don’t believe it? Click to see the third-party, data-laced report by the Atlantic’s Derek Thompson by clicking the linked text/image box below.

 

Examining Derek Thompson’s Atlantic Report on ‘Mobile Home’ Retail Market as Fastest Dying Business In America

 

Derek’s data points – linked above – are your latest third-party-inspired wake up call.  It’s sobering.

 

 

Bigger Boys, But Not A Giant?

While thousands of our readers are from mom-and-pop operations, direct reader-feedback plus third-party metrics tell us that this is the runaway most read by the so-called ‘big boys’ too, and all those in the mid-ranges under that big boy level too.

Useful information and straight talk vs. spin and happy talk pays.

Never forget or ignore authentic manufactured home history.

The old Fleetwood and Champion homes of 20 years ago are gone. Once the two leaders in MHLand, the only things left of old Fleetwood and Champion are their names. Hey, it was Warren Buffett’s annual letter that declared those two plus Oakwood had once held 44 percent of the industry’s market share.

The old giants of yesterday fell, in what now today is only MHVille.

Since Buffett wrote that, Clayton hovers around 50 percent market share. Want to wait until it is 60 percent, or more?

The Atlantic report is just one of numerous reminders that thousands of pros who once had successful, thriving businesses are no more. Many were millionaires in their day. Today, their old firms are Dust in the Wind.

Don’t think it can’t happen to you. It’s happened to thousands of others. The Omaha-Knoxville-Arlington axis is slow, deliberately so. They are also relentless. Do you want to be their next discounted acquisition? Isn’t that the name of the Moat-builder’s game?

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

So you, we – and all others who want to be long-term in MHVille – must be equally relentless too. They have advantages.  So do you and we, BUT only if you properly understand the dynamics at play.

 

Why Is Manufactured Housing Struggling During an Affordable Housing Crisis? Former MHI President, VP, Other’s Quotable Insights

 

The arguably hypocritical, corrupt, and years of misfires at MHI – linked above and below – are just examples. There’s more.

 

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

 

Why did Lesli Gooch defend Clayton and their related lenders against claims of monopoly leveled by Doug Ryan at what today is known as Prosperity Now?

 

AmericanBankerLesliGoochManufacturedHousingIndustryMonopolyAnythingButManufacturedHousingInstituteLogoLesliGoochPhotoMastheadManufacturedHomeMHProNews

Gooch is arguably as successful at defending the interests of manufactured home independents, or the millions of home owners, as she was at running for Congress.

 

Why doesn’t Gooch and company just as enthusiastically defend the industry each and every time a lesser challenge is hurled at what harms the rest of MHVille?  Where is Gooch or MHI on the Disney controversy?  Or one of the many mainstream media stories that misuses terminology or otherwise mischaracterizes our industry every week?  Facts are #NettlesomeThings.

 

TimeEndMonopolyOverManufacturedHousingDougRyanProsperityNowPhotoAmericanBankerClaytonHomesMHI

There are points that Doug Ryan and Prosperity Now are correct on, and others that they miss the mark. A wheat and chaff approach must be taken on every one, and everything, in order to sift and find the truth of a topic like the monopolization of manufactured housing by the Berkshire Hathaway brands.

 

 

The Dirty Little Secret…

Apparently, failure to act by MHI to defend the broader good name of manufactured housing is fine with Berkshire Hathaway and their brands in MHVille. Here’s the dirty little secret. If MHI wins or loses on an issue, Berkshire, Clayton, and their sister firm’s win either way.  Ponder that. We’ll show that another time, but the people that shared that tip have proven to be correct, time and time again. Clayton’s market share just grows.

 

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003MHanufacturedHousingIndust

Clayton Homes, 2003. After the Buffett Berkshire Buyout.

 

Because avoidable, artificial, regulatory, media, and other headwinds are arguably part of the vale acquisition strategy of Moat building deployed against independents – or you? – by the Omaha-Knoxville-Arlington axis.

 

 

ClaytonHomesSkylineChampionCavcoIndustriesBalanceofIndustryManufacturedHousingIndustryConsolidationGraphicPieChartMHProNews-e

One reason so few are willing to speak out publicly on this issue is that they don’t want to be the next in line for disappearing as an independent business. But the trend lines make clear that without pushback, your firm could be a conglomerate’s next meal. 

 

As a prior reports reflected, even working for the Clayton’s and Berkshire brands doesn’t make you safe. It’s just that you’ll get the painfully purported shaft later in life.

There is a struggle. But why not team up now, and lessen the pain?

It can be as simple as tips. It can be as sobering and profitable as open support, or steps in between.

 

ConfidentialNewsTipsOKTipsIreportMHNews@MHMSM-comGraphic

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

 

What Will You Do To Advance Your Location, Business, Organization, and Thus Your Industry?

Let’s be clear.  We write what we write.  If someone has guest comments that we opt to publish, then they are speaking for themselves.

Put differently, we don’t expect or even ask a sponsor to sign off on any given article.

Think of it something like a talk radio station.  They often play a disclaimer, ‘the views and news here may or may not represent those of our sponsors’ or business development clients.

Sponsors benefit because we have the largest audience, and the most engaged one in MHVille. Period.  No one else in MH trade media even comes close.

Legacy Housing – for example – may be with us for a another few months, or for years, we have no clue.  But what we do know is what Legacy has said in their own words.

 

“Huge” February 2019 Manufactured Home Sale Announced, Competes with Louisville, Tunica?

 

Legacy have a backlog, the biggest in their history, while the industry at large is slipping.

 

Production Decline Continues in November 2018

 

 

In the wake of their ads on MHProNews last fall, they had two reportedly very successful events in the last half of 2018. Legacy came back for more.  That activity contributed to that backlog.  That’s the logic of their own published statements. Their big GA event was so successful, they are repeating it.

 

Push Back Pays Dividends

MHVille Marketers, are you paying attention?  Not only is push back against the powers that be smart, Legacy proved it pays off too.

The industry won’t cure slurs against it’s products and home owners without resistance.  MHI clearly hasn’t given that kind of leadership. The MHI vision arguably one of lemmings being led off a cliff, like lambs to the slaughter at the altar of Berkshire or some other allied big boy firm.

If you happen to be one of those allied firms, never forget the lessons of those who helped topple Tsarist Russia.  Once the revolutionaries were successful, their allies were routinely among those executed.

This is a war. It’s a business war, within and around our industry.

 

Exploring Corporate, Association, Individual, Investor, and Governmental Corruption Involving Manufactured Housing

 

It is peaceful in the sense that it starts and continues using information.  Thus, as an MHI member-producer called it, this is an Info War. That’s a war we can win. Why?  How?  Because truth properly told and repeatedly shared can triumph over lies and deceit.

Some will choose to have their feet in both ponds.  Okay, that’s a company’s free will right of choice.

Monopolists are slowly gobbling up America.  It has been so for decades.  Only now, it is quite visible.

We celebrate honest success.  We are not socialists, but neither are we crony capitalists. We believe in the American Way, which is free enterprise and limited government that protects the people and their rights.  Have you noticed how the crony capitalists often support the political left? Or how they often buy political influence in both major parties?

It’s about power and money.  Money begets political power, and political power begets money.

You can’t ignore the trend lines and facts forever.

 

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Both a plank in the Democratic Party’s ‘new deal’ plan and a draft by the Trump Administration – each on paper – are aimed at the problem of growing monopoly in America. We plan in 2019 to press both Democrats and Republican leaders on this issue, especially as it relates to manufactured housing. Watch for it.

 

Antitrust and RICO

The good news is that antitrust action can win this struggle, but that too requires good information.  There are civil, state, and federal actions and suits that can be brought.

While its bad news for them, and is potentially – potentially – good news for the industry – is that more than one ‘someone’ in the MHI camp of surrogates have misused the U.S. Mail, and misused ‘the wires’ in an obvious attempt to silence us.

That – per legal experts we’ve spoken with – can constitute elements of RICO. RICO has civil and criminal components too.

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MHI has failed to properly promote our industry. We have, by contrast, the letters and related that demonstrates that we know how to grow business honestly at the local level.

 

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Once more, after publishing a prior report on this topic of how apparent allies of MHI have misused the mails in an attempt to silence our reports – and after asking MHI, Clayton and 21st leaders about these allegations – the letters like the above have stopped. Coincidence? Investigators may well find out. Time will tell. But the issue isn’t us, it’s YOU.  If they do this to us, why think that they won’t do this to you?

 

These bullets and factoids combined are part of how MHVille can become – once more – MHLand.  In time, with the correct approach, manufactured housing could emerge as the MHNation.

That’s a slow, but arguable goal of the monopolists too.

When Jeff Bezos’ Amazon Alexa Fund invested several million in a prefab start-up, that’s a wake up call to you, every MH Pro, and every MH investor or advocate. The Alexa Fund estimates this marketplace to be worth $330 billion a year.

 

$300 Billion Market, As Predicted, Jeff Bezos’ Amazon Alexa Fund Dives Deeper into PreFab Homes

 

Poor, inept, uncaring MHI apparently can’t even get the math right about our industry’s size. They keep saying it is $3 billion a year that MHVille ads to the GDP.  They are demonstrably wrong by more than half.  They are an embarrassment to themselves, and to the industry. The total is closer to $6.5 billion, because it is a retail sales figure, not wholesale or Lord-knows what number they pulled out of a hat to arrive at the clearly wrong $3 billion figure.

That’s mentioned only to show once more that they are either inept, incompetent, uncaring, or whatever phrase you might use to describe people that have spent millions, while shipments stalled, and finally, fell.

Comparing Conventional Housing Data for November 2018, to Manufactured Housing Industry Data, Nov 2018

 

Conventional housing data – in historic context – should be telling us why manufactured homes ought to be roaring, not snoring.  That’s an indictment of MHI, and their puppet masters, pure and simple.

 

Manufactured Home Production Decline Accelerates in November 2018

 

Professionals – often members of MHI – say that a lack of good information is part of what holds the industry back.

Others – producers, for instance – say the lack of retail distribution is holding the industry back.  Pay attention to why Legacy Housing said they pursued their IPO. It is to increase their retail distribution.

There are solutions to every problem that the industry’s independents face.

You can feed the hand that is biting your hands, if you want to.

You can feed the hands that are backstabbing you, if you want to.

Perhaps, you may think that you don’t have a choice.

You do.

Join those who are calling for their own, or are working with us, to start the next phase of the Manufactured Housing Revolution. We’ll be meeting privately in Louisville and Tunica to discuss this with select professionals.  How about you?

Finally, information properly shared is power. There are arguably reasons why the Omaha-Knoxville-Arlington axis is risking a RICO charge in the first place.  It’s simple.  They have their eyes on their part of a $330 billion dollar pie. The biggest threat to them is a breakup under federal, state, and civil RICO and/or antitrust.

That breakup of Berkshire and other monopolistic moat builders will require good information.

State and federal officials – we know first-hand – are already on this matter.  It takes time.  Don’t expect a headline tomorrow, that’s not how this works.  It’s actually quite interesting that the local Knoxville media carried the report shown below.

 

 

Experts have told us that our safest place is being out front. In the open.  Guess what?  That’s where your safest place is too.

WVHI’s Andy Gallagher blew his own cover over a year ago, at his own request.  Did Andy lose his job?  No.  Why?  IMHO, because we publicized the matter.

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The experts and the evidence suggests that the safest place in MHVille is in being public. We may end up with a Clayton paid security detail, LOL, because if something happened that appears unsavory, state and federal authorities know where to start looking. Debatably every ploy the monopolistic want to use has a legitimate, legal, counter-punch.

 

Your safest place to hide is in plain sight.

NAMHCO is doing it.  See the related report, further below the byline and notices.

MHARR has done it for many years.

We have survived and grown our readership, while ‘they’ are trying their best to undermine, intimidate, and destroy us.

For an employee at Omaha-Knoxville-Arlington related firm I get that you want to stay anonymous. We are thankful for every tip we get.

 

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Submit confidential or on-the-record news tips, or comments at this linked email mailto:iReportMHNewsTips@mhmsm.com

 

For those in business, look beyond a nice time you had at a MHI meeting. That’s Buffett’s Buffet. You are an upcoming meal, arguably nothing more.

Don’t roll over and play dead. In whatever ways your circumstances allow, this is the time to fight back.  Info Wars is on, but the next phase is underway. Stay tuned.  “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

New Era in National U.S. Manufactured Home Community Representation Underway?

The Future of Retail, Disney, ‘Trailer Trauma,’ and Manufactured Housing

 

Manufactured Housing Institute Housing Alert, Affordable Housing Crisis, MHI’s #NettlesomeThings Response