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Ultimate, Proven Contrarian Investing – Ethical vs. Unethical, Legal vs Illegal Manufactured Housing Industry Strategies

May 17th, 2019 No comments

 

UltimateProvenContrarianInvestingEthicalvsUnethicalLegalvsIllegalManufacturedHousingIndustryStrategiesMastheadLATonyKovachMHProNews

For the next few minutes, imagine a hedge fund or deep pockets investor. In the following blend of the hypothetical mixed with numerous significant linked elements of evidence formed by reality, picture in your mind the following.  Reflect on an outsider looking into why Warren Buffett – or other lesser known, yet successful investors – are into manufactured housing in the first place.  Manufactured homes aren’t normally viewed as a ‘sexy investment.’

 

Cool or sex-appeal aside, are the manufactured housing industry’s various segments potentially good investments?  If so, why – in some measures – is the industry underperforming?  Is underperformance an opportunity in disguise? Let’s review to gain perspective, before diving into the headline topics.

There are scores of other investment opportunities. There are speculative, but sexy items like: AI, technological, internet, automation, robotics, and whatever is after 5G.

There are tried and true fields of investment like automotive, restaurants, entertainment, health, sleep, furnishings, electronics, gaming, or anything that deals with the necessities of life: food, drink, clothing, transportation, and shelter.

There are also human emotional needs, physiological, sociological, and spiritual demands that could be described or explored.

What follows isn’t per se why affordable housing is potentially ‘the best of the best.’ But like the other basics of life, people routinely do their best when they have at least adequate shelter. So there is an obvious potential for a fine ethical development of investing successfully in affordable housing.  There is always a need for affordable homes too.

That begs the question, what’s the most proven form of affordable housing?

The most proven form of affordable shelters aren’t tiny houses, apartments, or any of the emerging technologies in shelter. For example, a 3D printed housing professional has told me they see turn key costs about $72 per square foot, plus land costs, not the lower shell house cost per square foot that some headlines hyperventilate over.  When reports – like the one below – sounds too good to be true, it often is.  That doesn’t mean there isn’t promise.  It does mean that the claims are incomplete at best.  Manufactured homes are still lower in cost, and have other benefits.

Media Claims New Story/ICON Builds 3D Printed Housing for $4000, Fact Check & Analysis

 

Prefabricated and modular, they all have their places in the housing puzzle, which is why Amazon’s Alexa Fund, Softbank, Revolution, and others are investing in that space.  There are also opportunities in maintenance of conventional buildings.

So, with that outline, what’s the most proven form of affordable housing in America?

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews-445x768

TerminologyMattersBecausetheTerminologyDescribestheConstructionStandardsHomeBuiltToSteveDukeLMHAmanufacturedhomesmobilehomesMHProNewsThe most proven form of permanent, safe, greener-by-design affordable homes are perhaps the least sexy from much of cultural or societal viewpoints. The most proven form of affordable housing are HUD Code manufactured housing, and the millions of mobile homes and trailer houses that came before them.

Yes, the terminology matters, because the terminology determines what code a home was built to meet. Hold tight to those thoughts. Don’t skim, or you’ll miss the investment bonanza that has savvy billionaires salivating.

 

Sam Zell

Investment mogul Sam Zell articulated the contrarian investor formula like this. “While others are going left, look right.”

It’s noteworthy that Zell told MHProNews news that they have “never lost confidence” in manufactured housing and manufactured home communities. Indeed, Zell’s Equity LifeStyle Properties (ELS) routinely out-performs other REITs or equities.

Ponder Zell and those factoids, but don’t get locked into what others are doing – yet – until you have a more complete picture.  The problem for too many is that they don’t research carefully enough.  Too many presume they know something, when in fact what they ‘know’ are outdated or mistaken claims.

Warren Buffett has said that he only wants to be in industries that make sense. His Berkshire Hathaway is the largest player in manufactured housing production, retail, and finance today.

Buffett also believes in long-term investing in good companies, that he prefers to own.  He’s also known for so-called ‘value acquisitions.’ To Buffett and his partner Charlie Munger, an acquisition is a value if it’s ‘intrinsic value‘ is less than he paid for it.

Clayton Homes, 21st Mortgage Corporation, and Vanderbilt Mortgage and Finance (VMF)  are just 3 of many investments Warren Buffett led Berkshire Hathaway has made in manufactured housing starting in 2003. Berkshire has invested billions into manufactured housing since. Those actions by Zell or Buffett – their ongoing investments, despite negative headlines –  speak louder than words.

Hang onto all of those points as we explore why manufactured homes are so misunderstood, and why the industry is underperforming. Because crisis spells danger, as well as opportunities in disguise. Before Buffett invests, he reads a lot. Some of what the ‘Oracle of Omaha’ reads is historic in nature, so let’s follow that cue.

2018DataShareofHousingMarketManufacturedHousingInfographicDailyBusinessNewsMHProNews612

 

Manufactured Home Policies, Realities Revisited Through the Lens of John Oliver’s “Mobile Homes” Video

The debate over manufactured home lending regulations was raging in July 2015. The Hill in the nation’s capitol published a column about the Preserving Access to Manufactured Housing Act, linked here.

The Manufactured Housing Institute (MHI), Berkshire Hathaway owned Clayton Homes, and their manufactured housing (MH) related lenders of 21st and VMF backed the never-enacted Preserving Access.

Stating the obvious, the need for affordable housing with reasonable, sustainable lending has grown. HUD Secretary Ben Carson recently praised the way the need can be met by the “amazing” evolutionary value of manufactured homes.

The Washington Post published articles about manufactured housing, linked here and here.  The second WaPo link predated the satirical hit by Last Week Tonight with John Oliver’s viral video, errantly named “Mobile Homes.”

 

 

WaPo and Oliver’s video referenced a white paper co-branded by an activist group known as Manufactured Housing Action (MHAction). Oliver’s video obliquely spotlighted that each firm shown was a member of/connected to MHI, Berkshire Hathaway owned Clayton Homes, or 21st Mortgage Corporation.

Hindsight can be 20/20.

In retrospect, it made no sense for MHI, Clayton, and 21st to pursue Preserving Access. MHI’s own SVP said as much.

 

JasonBoehlertPhotoManufacturedHousingInstituteLogoMHISVPGovtAffairsQuotePreservingAccess

 

Before proceeding, some of what follows might appear partisan. Facts are what they are. We are non-partisan, and affordable housing ought to be bipartisan. Our platforms are frankly pro-industry as well as pro-consumer, and we will work with anyone that is keen on ethical practices and reality. Democrats and Republicans In Minnesota came together to praise in a bipartisan way the value of manufactured homes, which they first studied in depth.

 

 

That said, let’s look at some well-known facts.

WarrenBuffettBillClintonHillaryClintonBarackObamaKevinClaytonNathanSmithPhotosMastheadLATonyKovachMHproNews> Berkshire Chairman Warren Buffett backed Barack Obama’s candidacy twice.
> Former President Obama vowed to veto any change to Dodd-Frank.
> Buffett backed Secretary Hillary Clinton’s presidential bid.
> She similarly pledged opposing changes ‘weakening’ Dodd-Frank.

That begs several questions.

  1. Why did then-MHI Chairman Tim Williams – President of Berkshire-owned 21st – spend years and millions pursing Preserving Access when it was doomed to fail?
  2. Why did Williams’ back a bill his boss Buffett effectively opposed?
  3. Why did Nathan Smith of SSK Communities, the prior chairman to Williams at MHI, back the opposition presidential candidate to Preserving Access?

Hold those thoughts.

MHAction activists disrupted HUD Secretary Ben Carson’s speech at MHI’s 2018 event. MHAction previously protested controversial MHI member Frank Rolfe, and other MHI member MHCommunity operators.

The Golden State Manufactured-Homeowner League’s (GSMOL) president informed MHLivingNews that MHAction was funded by the Tides nonprofit. Double-checking, the GSMOL claim proved correct.

Who’s funded the Tides? Buffett-funded NoVo Foundation was the Tides’ top donor for years.

Millions of Buffett’s bucks – via so-called ‘dark money’ channels – funded attacks by MHAction, plus other nonprofits on MHI and Berkshire’s manufactured home (MH) industry’s brands.

 

What’s Going On?

Let’s be clear. Several business practices alleged by Oliver, WaPo, and MHAction are troubling.

But why does MHI – the national trade group supported by Berkshire – tolerate members engaged in embarrassing business practices?

Meanwhile, Buffett-Tides-supported nonprofit MHAction attack MHI members for irksome practices?

Investigators use basic questions and principles. Cui bono? Who benefits? Plus ‘follow the money’ and evidence.

 

The Society of Professional Journalists (SPJ) code of ethical conduct encourages calling out the powerful. SPJ encourages public corrections as needed. This writer was technically correct in supporting Preserving Access. But in hindsight, my widely-read The Hill analysis was incomplete in the light of new evidence. The facts linked herein address amendments to correct-the-record, per SPJ standards.

Let’s step back to when Berkshire bought Clayton Homes.

Clayton’s production market-share of new manufactured homes was some 13 percent in 2003 when Buffett-led Berkshire purchased Clayton.

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003MHanufacturedHousingIndust

Clayton Homes, 2003. After the Buffett Berkshire Buyout.

 

A 2010 letter from Williams/21st, Buffett’s annual letter that year, and a subsequent video interview with Clayton CEO Kevin Clayton are provided. William’s/21st letter went to thousands of independent retailers. cutting-off lending to independents that failed to buy Clayton Homes products. In the wake of the 2008 housing/financial crisis, that 21st letter’s impact devastated independents.

 

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2011MHanufacturedHousingIndustryProNews

This graphic is a snapshot of the industry at about the time of the Kevin Clayton in-depth video interview, posted on this linked page. In that video Kevin said what “Warren” teaches his managers about competition and the Moat.

 

Thousands of independent retailers failed. Meanwhile, Clayton grew.

Depending on the source you cite, by 2018, Clayton’s market-share of manufactured housing production hit some 48-50 percent, which included using the undisputed tactics documented here.

 

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEnd2017MHanufacturedHousingIndustryProNews

While several allegations of monopolistic practices have been made against Clayton Homes and Berkshire Hathaway, this website and our sister site are the only one to date known to have produced evidence, using their own documents and words.  But the Nation, Atlantic, Seattle Times, and Guru Focus are among others in media that span the left-right divide that make similar points; namely, that Clayton and their related lenders behave in a monopolistic fashion.  The Washington, D.C. based Manufactured Housing Association for Regulatory Reform (MHARR) have made several such references over the years too.  What makes MHProNews and MHLivingNews unique is that we’ve dug deeper, and documented how it was arguably accomplished, using Berkshire’s own documents and information.

 

I’ve asked antitrust and other lawyers to examine the linked evidence. An antitrust case could be forged. Investors, media, and public officials, please hold that thought.

Later, controversial MHI member Frank Rolfe accused the association’s former chairman Nathan Smith of “hypocrisy,” pointing to harmful mainstream headlines Smith’s SSK Communities sparked.  Rolfe also alleged that MHI failed to defend the industry from bad news or to promote good news. Odd? Is Rolfe – who has his own vexing image issues – correct?

As noted above, Minnesota lawmakers decided in a bipartisan report that affordable housing and manufactured homes go hand-in-glove.  Secretary Carson and former HUD Secretary Julio Castro both praised manufactured homes too. Why aren’t those items on the MHI website?

Why are there numerous third-party, university level, nonprofits, or federal research that praise manufactured homes missing also missing from the MHI website? The screen captures are collages from MHI’s search tool. They seem to support Rolfe’s claim.

Buffett gets into businesses he believes make sense. An arguably Machiavellian ploy is coming into focus.

It includes a ‘Rope-a-Dope’ ploy with respect to Preserving Access.

 

Rope-a-Dope – Preserving Access to Manufactured Housing Act, Mom, Dad, & You

 

Berkshire machinations arguably includes Buffett’s minions deploying ‘Castle and Moat’ ‘sharks in the waters’ tactics in manufactured housing.

Complex:

are all more difficult for smaller firms to navigate than a larger one with deeper pockets.

In hindsight, MHI’s “big boys” led-the-charge for a Preserving Access bill that was doomed to fail. The bill created the Illusion of Motion.” But Buffett’s bucks funded both the pro-and-con sides of that effort. It was arguably a rope-a-dope ploy, another shark in “the Moat.” Wear out independents fighting a rigged match.

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustrysMartyLavinMHIAwardWinnerQuoteMHProNe

Using the logic of Secretary Carson and the report linked here, this scheme arguably harms millions, and costs our economy hundreds of billions a year – what researchers said is the harm caused by a lack of affordable housing.  That’s an aspect of the opportunity in disguise.

Now, this same picture points to numerous opportunities in manufactured housing by using ‘white hat’ strategies vs ‘black hat’ ones. Meaning, Smith, Rolfe, Clayton, Williams/21st and others are going to be who they are. Use that by being different than they are. Think and be Contrarian!

YouMHProNewsSeemToHaveConceptualIQThatIsMoreImportantThanSpellingAbilityQuoteMastheadMHProNews

Quote from an MHI member, business executive.

There are good laws on the books that make manufactured housing so appealing. Those good laws are not being properly enforced or implemented. There is a case to be made that the industry’s Omaha-Knoxville-Arlington axis, there allies and surrogates have worked to suppress the usefulness of those good laws. If so, that’s a short term tactic.  Once they’ve obtained their own perceived ideal combination of political and economic scenarios, they will take their foot off artificial breaks.  At that point, the industry’s production could soar.  Why?  Because as the National Association of Realtor’s (NAR) Chief Economist Lawrence Yun told Forbes, there is a need for some 8.3 million housing units.

Only factory building can logically close that gap. For the reason, Yun asked Scholastica ‘Gay’ Cororaton – Certified Business Economist (CBE) – to research manufactured housing. She did.  That expert NAR research, is linked here.  In her first footnote, on page 48, she kindly named this writer in her acknowledgements.

The evidence for that is subtle, but real. For example, why doesn’t Berkshire use their dozens of newspapers to each do an article every other week that debunks the misconceptions about manufactured homes? Or why doesn’t Buffett allocate money for a real image campaign for Clayton, instead of fig leaf efforts or a continuing stream of controversies? Or why does MHI – on their own website – fail to promote the numerous good news reports about manufactured homes that could lead more to invest in the industry, or buy more homes?

Who will argue that Buffett, Berkshire, Clayton, or MHI have made 15 years of mistakes?  Isn’t the more plausible argument that the axis are deliberately NOT promoting manufactured homes, so that they and their comrades continue to consolidate the industry at discounted values?  How to explain that the savvy, connected Nathan Smith admits the association’s past mistakes, but they continued to make them?  How to explain how he laughs as he says he wants others to stay out of the industry, so he can have all of the communities – his part of the industry – all for himself?

 

 

Learn yourself, contact or hire experts that can help you navigate the complex world of an arguably rigged manufactured housing industry.

Why bother chasing the manufactured home rainbow? Why go through the brain damage? Because the industry is underperforming. That’s proven by public companies investor relations packages.  That means the upside is pretty obvious.

 

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.

 

Each of these factoids paint a picture of an industry that should be roaring instead of snoring. The dark money trail of Buffett bucks fueling both sides of various fights – like Preserving Access – should tell the savvy that there must be something huge here, or why bother going to all that trouble?

Indeed, housing is a multi-trillion dollar field. How high might manufactured housing go? Consider what Harvard’s Joint Center for Housing Studies (JCHS) Eric Belsky said not long before Buffett entered the industry that manufactured housing was poised to surpass conventional building.

 

MultipleReasonsExpectManufacturedHousingDoBetterThanSiteBuiltHousingEricBelskyEecDirJointCenterHousingStudiesHarvardUnivDailyBusinessNewsMHProNews

Was Belsky wrong? Or how about the numerous other third-party studies that came to similar observations?  Isn’t the better argument that Belsky and others never imagined Buffett reversing growth, so they could consolidate the industry at a discount?

Why has HUD Secretary Ben Carson said it is time to take manufactured housing out of the darkness of limestone into the brightness of the limelight? Could it be that he gets it that forces within the industry have hobbled the most proven form of affordable housing?

 

 

Let me say that having spoken personally with a number of federal investigators, I have no doubt personally – speaking as a 25 plus year proven, award-winning expert in this field, long-praised by some of the very people we now critique – that manufactured homes are underperforming not due to the ineptness of MHI.

 

 

Rather, the evidence suggests that the Omaha-Knoxville-Arlington axis and their allies are behaving as they do as a subtle manipulation of the system.  Only a handful of people need to be in the know to pull this off, so no grand conspiracy is needed.  It is what Senator Bernie Sanders or President Donald J. Trump fans might aptly call, “a rigged system.”  What’s this compared to what happened to Bernie in 2016?  Or to President Trump in 2016-2019?

Even Clayton’s local home town media has been pushed into admitting their are several ongoing federal investigations.

 

 

We’ve had the slings and arrows of outrageous fortune flung at us.  For example, MHI outside attorneys and other surrogates have threatened us in writing for publishing such revelations over time. But they’ve never filed suit. Why not?

We’ve given the Omaha-Knoxville-Arlington axis, their attorneys, and their allies numerous, documented offers to refute, explain away, or disprove any of those linked allegations. We’ve offered public, moderated discussions on camera – prove any of these fact elements wrong, or explain a different interpretation of these linked items. At each stage, they’ve declined. They’ve ducked it for some 2 years. Why?

Alan Amy essentially explains it in this short video. Manufactured homes are the future of housing. That why the billionaires and multiple billion dollar firms want their arms around this industry.

 

 

That should speak volumes to investors, as should this focus group. These participants almost all owned a conventional house first.

They love their manufactured homes. They were given $20 in gas money, and a meal to spend over four hours just so they could participate in this focus group. They had no other incentives, Dave their own self evident convictions. That too speaks volumes.

 

 

The video above and below are part of a series.

 

 

Advocates, lawmakers, and reporters should hold specific MHI-connected ‘Black Hats’ accountable, not the ‘White Hats’ of the much-needed manufactured home industry.

Let’s close by noting that some of the same people who’ve previously praised our work, have – perhaps understandably – turned on us since we’ve began exposing their alleged treachery.

 

 

It is also important to stress – not because of ego, but for outsiders looking in – that this is the largest, and most read medium of their kind in manufactured housing.  We’ve been praised by the big and small, for years, and while they may now jeer, companies of all sizes read us faithfully.  See the first of two videos that make the point, from those who’ve said so that were given no incentives to proclaim what they did.

 

 

A few deep pocket brands in the MH industry arguably rigged the system to the detriment of millions. Federal regulators – already investigating Clayton, 21st, and VMF – should investigate MHI and others for antitrust, fraud, and possible RICO violations.

 

 

And investors should consider the many ways how they could be a white hat brand that profitably performs a much needed service, while the black hats play their sad games.

See prior Masthead’s related to Buffett, Clayton, and the related reports below the bylines and notices for more details. “We Provide, You Decide.” © ## (Industry news, commentary, fact-checks, 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.

Ross Kinzler Confirms Allegations, MHEC Peer Claims “Association Malpractice;” Member Backstab, MHI Failure Concerns

“Lead, Follow … Or Get Out of The Way”

HUD Code Manufactured Home Production Decline Continues, May Updates

 

HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought

 

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

Independent National Manufactured Housing Post-Production Association Takes Major Step

 

 

 

 

 

 

 

For Want of a Nail – Manufactured Housing

April 12th, 2019 No comments

 

ForWantofaNailManufacturedHousingMastheadMHProNews

For Want of a Nail
For want of a nail the shoe was lost.
For want of a shoe the horse was lost.
For want of a horse the rider was lost.
For want of a rider the message was lost.
For want of a message the battle was lost.
For want of a battle the kingdom was lost.
And all for the want of a horseshoe nail.

 

In older English, the word “want” could mean “for lack of.” Viewing the above proverbial wisdom through that lens is understood as follows, according to Wikipedia. The Masthead will further unpack this for those professionals and aficionados who are keen on our segment of the factory-built housing industry after the Wiki quotes.

The proverb has come down in many variations over the centuries. It describes a situation in which a failure to anticipate or correct some initially small dysfunction leads by successively more critical stages to an egregious outcome. The rhyme’s implied small difference in initial conditions is the lack of a spare horseshoe nail, relative to a condition of its availability.[1] At a more literal level, it expresses the importance of military logistics in warfare.

Such chains of causality are perceived only in hindsight. No one ever lamented, upon seeing his unshod horse, that the kingdom would eventually fall because of it.[1]

Related sayings are “A stitch, in time, saves nine” and “An ounce of prevention is worth a pound of cure“. A somewhat similar idea is referred to in the metaphor known as the camel’s nose.” said Wikipedia.

 

 

For Lack of a Nail, Manufactured Home Independents Were Lost

Manufactured housing has lost many a message. That is proven by the troubling instances like the bullet’s below will note

 

  • The Bryan City Council, which is just one of a growing number of cities, towns, or counties that have taken steps to limit or ban manufactured homes.
  • HBO’s viral This Week Last Night with John Oliver video on “Mobile Homes.”
  • Declining shipments of manufactured homes during an affordable housing crisis. Unbelievable, given that the Urban Institute and others have cited the improved quality of manufactured homes, but facts are what they are.

Each of those bullet’s reflect this vexing point. The powers that be either can’t or won’t stop/and or address these trends.  That much ought to be obvious, and while debatable, those who would opt to defend the Omaha-Knoxville-Arlington axis’ perspective on the controversy would easily lose.  The 3 bullets above are just recent examples of why.  Others examples are found in the related reports, further below the bylines, offers, and notices.

So that means, alternative approaches – not including the current methods being used – must be developed.

 

Parallel Paths

The independents and investors in our industry must not place every bet on one thing. There is an array of possible alternative strategies that have proven useful and must be adapted to or applied to this industry’s circumstances.

One point is simple. Make officials of the federal government do their jobs.

The Department of Housing and Urban Development (HUD) has primary jurisdiction under current federal law over manufactured housing. Under the Manufactured Housing Improvement Act of 2000, there is enhanced federal preemption for manufactured homes. HUD is the enforcement agency for that aspect of the law.

Some are talking about suing the City of Bryan, TX. The Masthead favors that option, on several different grounds, that could represent the interests (and thus separate causes of action) for individual groups.

But the Masthead also favor’s pressing the Feds into doing their jobs. One need not look beyond the border battle to realize that manufactured housing isn’t alone when it comes to the notion of enforcing existing laws.  The border issues has festered for decades, under Democratic and Republican administrations. The same can be said about the proper implementation of the Manufactured Housing Improvement Act of 2000.

 

“Time to Enforce the Law on Federal Preemption”

 

It was 2017 when the Manufactured Housing Association for Regulatory Reform wrote the report linked via the text image box above. It is time to enforce the law on preemption. The linked report below reflects MHARR’s most recent step, in calling on HUD to do a formal study of the issue noted.

 

HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought

 

 

The first step with HUD – or anyone else – ought to be the direct ask to HUD.  But other steps can be included.

  • Elected congressional representatives and Senators can be asked to intervene.
  • But also there is the Writ of Mandamus.

The Manufactured Housing Institute (MHI) knows about this option, because their general counsel, Rick Robinson, wrote a book the included that as the title and a subplot. Rephrased, MHI knows they could fight this in several levels, but for whatever reason(s) one cares to float, they have obviously not chosen to do so.

We have a source on the ground in Bryan, TX that told MHProNews that “To answer your question without commentary, no one employed by MHI was present.”

Meanwhile, manufactured home industry consolidation continues. It is the larger MHI members who are most often the beneficiaries of that consolidation. Coincidence?  Is that a hidden benefit or motivation for those big boys who dominate the association to allow such headwinds – for now – so that they can further consolidate the industry? Later, once they’ve consolidated all that they think they can, will the powers that be magically dust off issues like enhanced preemption, and put them to work for their own enhanced profits?

Don’t forget the investigators question. Cui Bono? Who benefits? Who has the motivation to do – or not to do – x?

We think satirically of MHI as Buffett’s and the Big Boys Buffet.  MHI is short for the Machiavellian Housing Institute. Day by day, they build the case against themselves, don’t they?

Meanwhile, the Buffett Moat and that of his de facto allies purportedly grows as an outcome of alleged market manipulation and association malfeasance. Or as one executive with long ties to MHI told MHProNews this past week, it is “association malpractice.” That source alleged to MHProNews that MHI had some 4 million dollars in reserves.  Why aren’t they using some of those reserves to fight issues like the John Oliver viral video, or zoning issues, like Bryan, TX?

As one more example of purported “association malpractice.”  Why is it that MHI creates supposedly useful research and hides it behind a login?  Why does MHAction seem able to get more bad headlines than MHI can stir up good headlines?  Why doesn’t MHI and do what MHAction and other who have created useful research have done? Namely, take that information, and beat the drums to make it know widely throughout the land?

Are they incompetent in Arlington? Or rather are cagily in pursuit of consolidation? Doesn’t either one leave us where the industry is right now? Let those queries hang and sink in, as we turn back to the main point.

 

The Writ – and Order

A Writ of Mandamus. Ask HUD politely, but if they don’t respond, then Make the Feds do their jobs via a writ of mandamus. Arguably, less costly than many others suits might be. That must be one of the parallels paths.

WritOfMandamusJudicialOrderRemedyDoSpecificActObligedToDoByLawMastheadMHProNews

For want of a nail, the shoe was lost.  Let’s not lose the nail that causes more manufactured home independents and prospective home owners to lose their part of the American Dream.

We Provide, You Decide.” © ## (News, analysis, and commentary.)

(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 Manufactured Home Production, Shipment Data-February 2019

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

“Billion Dollar Empire Made From Mobile Homes,” What Washington Post’s Peter Whoriskey Didn’t Report

Money, Minorities, Manufactured Homes – Foiling the American Dream of Affordable Housing

 

Good News With Harmful Twist, Anti-Community Owners MHAction Activist Grabs Headlines

Frank Rolfe, MHU/RV Horizons Protest by MHAction; Nathan Smith/SSK/MHI Flashbacks?

Manufactured Home Owners – Satisfaction Survey Redux

 

 

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

 

“No Other Options” – Frank Rolfe’s Pad, MH “Parks” Tug-of-War, Good, Bad or Meh for Manufactured Home Communities, MH Industry?

Manufactured Home Resident Group President Cautions Against MHAction, Surprising Background Reveal to Manufactured Housing Action

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

 

Lanham Act, Monopolistic Housing Institute, err, Manufactured Housing Institute, Legal Bullies, and You

Independent Businesses, Affordable Manufactured Housing, Open Markets, & Robust MH Sales Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobile Home Militia – “Clayton [Homes] Wants Your Cornbread Too” “Join the Revolution” – ‘You Gotta Have Swagger’

March 15th, 2019 No comments

 

MobileHomeMilitiaClaytonHomesWantsYourCornbreadTooJoinTheRevolutionGottaHaveSwaggerDailyBusinessNewsMHProNews

They are industry professionals that currently hail from primarily south-central or southern states. They may hunt, fish, go to the honky-tonk, or go four wheeling in the mud for fun.  They’re routinely patriots – people of faith, flag, and family, who love the constitution and their second amendment protected guns.

 

They sell, build pads, transport, install, and service factory-built homes.

DonnieBrewerNateDrizzleMHMMobileHomeMilitisManufacturedHomePadDailyBusinessNewsMHproNews

They are manufactured housing industry independents, but for swagger’s sake, they use the handle, “Mobile Home Militia” or #MHM.

 

MobileHomeMilitiaLoytaltyIsEverythingMastheadBlogMHProNews2019-03-15_0907

 

And if you have the courage and swagger, they want you to join their revolution. That phrase, ‘you gotta have swagger,’ comes from a thread with ties to #MHM.

ICYMI, or need a refresher, the article linked below was the runaway most read on the Daily Business News on MHProNews in February. That also means that it was the most read article in all of manufactured housing in 2.2019. It can be accessed by clicking the hot-linked text/image box below.

 

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

 

Omaha, Knoxville, and Arlington, look closely. These folks are part of your wake-up call too.

 

The following are posts mostly from Facebook, on the dates and times as shown. The connections of the various people range from the curious to the engaged, and the specifics of the connections to #MHM or the Mobile Home Militia are known to their participants.

Their posts and quotes as shown paint a picture, in the words and images of those who shared them. We put the meat of their quotes in brown and bold text, but the words are all theirs.

 

“Mobile Home Militia” #MHM and Connected Posts

Mobile Home Militia

February 27 at 4:17 PM ·

You ever had your feelings so hurt you turned down millions of dollars? Clayton just did that. They are refusing to sell TRU homes to Triple C in Conroe because he quit Clayton to become an independent. A threatening email from Clayton retail to Clayton manufacturing sealed the deal. Ask yourself this question…Could you as an independent call Clayton and get them to not sell homes to another store because the manager once worked for you? It won’t be long before Clayton wants your cornbread too.” 

#mhm

#independent

MobileHomeMilitiaEverHadFeelingsHurtTurndDownMIllionsDollarsClaytonDidThatDailyBusinessNewsMHproNews2019-03-15_0848

 

Not unlike their warning to their followers about what they allege occurred between Clayton Homes, Heath Jenkins and Regional Enterprises, they are raising possible antitrust issues.

MobileHomeMilitiaFBMastheadBlogMHProNewsMobile Home Militia

February 1 ·

It’s not just a T-shirt to us. Yesterday Clayton met with Heath Jenkins of Regional enterprises and informed him they would no longer be paying him rebate (essentially cutting them off without having to repurchase) Regional purchased $40m from Clayton in 2018, making Heath their largest retailer. Why would Clayton do something like this? Because he opened a plant and hired some of their people. If they would purposely go out and rape their largest dealer, what chance do the rest of us have? Clayton has convinced hundreds of independents they are your business partner, but make no mistake, they are your largest competitor.” 

The greatest trick the Devil ever pulled was convincing the world he didn’t exist.

 

MobileHomeMilitiaClaytonRapeTHeyAreYourLargestCompetitorDevilsGreatestTrickMessWithTrailerParkMHproNews2019-03-15_0930

MobileHomeMilitiaFBMastheadBlogMHProNewsDonnie Brewer is with Lance Inderman and 13 others.

January 26

 We have deeper pockets and we are gonna run Donnie Brewer out of town.”

– Robert Burnett and Mike Quinn of Titan Homes

First of all, I didn’t know who either of you were before someone told me, but now I do. Secondly, you don’t have deeper pockets, you are employees at a corporation and I’m sure they wouldn’t appreciate you pledging their money to “run me out of town.” Titan and Champion are too smart to employ a couple of geniuses like you two. I bet they realize it sooner rather than later. If you had first done some research, you probably would have second guessed poking the bear.”

 

MHMWeHaveDeeperPocketsAndWeAreGonnaRunDonnieBrewerOutofTownTitanSkylineChampionMHImemberManufacturedHousingInstituteMHProNews2019-03-15_0939

Titan guys poke MHM member’s bear, says the Mobile Home Miliia, and MHM pokes back. From Facebook, images shown under fair use guidelines for media.

 

 

MobileHomeMilitiaFBMastheadBlogMHProNewsMobile Home Militia

February 18 at 10:11 PM ·

What if I told you that corporate sign is an anchor?

You want to become an independent retailer? We can help.

Join the revolution!

#independent
#mhm

In Medieval Times this next post’s #worldofpain could be construed as throwing down the gauntlet. But from #MHM? Surely, they jest! Satire!

Or not…

 

MobileHomeMilitiaFBMastheadBlogMHProNewsMobile Home Militia is with Lance Inderman and Donnie Brewer.

February 15 at 9:56 PM ·

MHM VPs of public relations 

#worldofpain

 

MHMLanceDonnieBrewerDBNegotiatingDealDailyBusienssNewsMHproNews2019-03-15_0854_001

 

Or check this one out.

#MHMWalkaMiletoAvoidAfightButWhenOneStartsDontBackDownAnInchMastheadMHProNews

Get a feel for DB – Donnie Brewer.

 

DonnieBrewersHiringReceptionstBrewerQualityHomesHiringReceptoinistMHProNews

 

But this will give you a better sense of the man’s thinking when it comes to the ‘big boys’ of MHVille.

 

DonnieBrewerMobileHomeMilitiaFamilyFBMastheadBlogMHProNews

 

Donnie Brewer shared a post.

February 27 at 3:41 PM ·

And they would have gotten away with it if it wasn’t for us meddling kids!”

 

ClaytonHomesLogoDonnieBrewerWouldHaveGottenAwayWithItMastheadMHProNews

 

Can you spell, rebel with a cause?  Back to the #MHM…

 

2018ThanksForTheLessons2019LetsDoThisMobileHomeMilitia#MHMmastheadlbogMHProNews

 

Which is a good place to segue to Lance Inderman, a partner with Jessup Housing, who has his own retail centers and is an anchor in the #MHM movement. Let’s look at some of his non-manufactured housing posts, to get a sense of the man, and how that might shape his thinking in being a manufactured home independent.

 

Lance Inderman – FB

No, we didn’t cut his head off in the screen capture below. It is what it is, see the collage below from his Facebook page.

 

LanceIndermanFacebookfamilyMastheadBlogMHProNews

Lance Inderman
March 11 at 12:24 PM ·

Castro eventually made it to number seven on Forbes’ list of richest world leaders, which estimated his wealth at $900 million” — Maxim Lott

LanceIndermanFBSocialistLeadersCastroMaoStalinMastheadMHProNews

 

LanceIndermanIWillGiveUpMyGunWhenIAMalloutofAmmoandDeadVenezulaBansGunOwnershipSecurityForcesKIllHundredsFBDailyBusinessNEwsMHProNews

LanceIndermanAOCQuoteJamesWoodQuoteStudyHistoryFBDailyBusinessNewsMHproNews2019-03-15_0805

LanceIndermanFBSocialistsWanttoDisarmUsMakeUsUseTrainsNothanksIveSeenWhereThatLeadsIlKeepCarGunsMHProNews

LanceIndermanSocialistsBettreThanMeLogicComonSenseWorldHistoryFacebookDailyBusinessNewsMHProNews2019-03-15_0759

 

That paints a quick picture of Lance Inderman, with #MHM, Jessup Housing, et al. It doesn’t have to be your style or mine, but Lance’s marketing at his retail center is something like his FB persona suggests.

Like it or not, they do sell houses, which is why they have that swagger.

Short Brigadier Manufactured Home video

Longer Brigadier Manufactured Homes Video

 

These are an eclectic group. For example, there are some who sell upscale manufactured homes, while others sell entry level or ‘shade and shelter’ housing. Others sell a mix of product, from new, to FEMAs, to pre-owned, high or low priced, and so on.

But this Mobile Home Militia has declared war – or perhaps more to the point – they feel that Clayton Homes and company declared war on them first.  They are fighting back.  Stay tuned, because we will.

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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“November Rain” – DoJ’s Top Antitrust Cop – Assistant Attorney General Makan Delrahim ABA Speech on Antitrust Enforcement for Americans

Tim Williams, PBS News’ Bad Bargain, Manufactured Housing Institute, Buffett’s Mirror, and Clayton’s Costume

Minnie Driver, Millionaires, and Billionaires – Debunking “Housing for the Poor” Image of Manufactured Housing

“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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.

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

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.

 

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryMashteadLATonyKovachMHproNEws-756x768

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.

MailWireFraudManufacrturedHousingIndustryMastheadCommentaryMHproNews

 

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.

 

2018-12-16_1547TimWilliamsKevinClaytonRichardDickJennisonLeslGoochNathanSmithLATonyKovachNettlesomeThingsEnvelopesMHProNews

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