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To Educate – “Leading Forth” – for Affordable Manufactured Housing Success

October 3rd, 2018 No comments

 

LarryPArnnHillsdaleCollegeToEducateLeadingForthForAffordableManufacturedHousingSuccessMastheadLATonyKovachMHProNews600

It’s unbelievable how much you don’t know
about the game you’ve been playing all your life.”

– Mickey Mantle

 

Every state has its heroes and heroines. Mickey Mantle is a favorite son from Oklahoma, where I began my manufactured home career some years ago.

 

Hillsadale College’s president says that the word education means to lead forth.  Education and information which leads to an ever better understanding about manufactured homes are at key to what the industry needs to achieve its potential.  Rephrased, education – information done correctly – is leadership.

 

From the outset – which is now approaching 9 years since our launch in mid-Oct, 2009 – MHProNews has strived to challenge, motivate, and lead in the needed ways.

Call me slow, naive, or steadily evolving, but every year we’ve adapted, and then done things no one else in our industry’s trade media has previously done. 

 

Don’t Do It! 

Don’t be political,’ said some industry pros. Sorry, but problematic, bad and even corrupt policies at the local, state, and federal level are key factors restraining manufactured homes.

Don’t touch on religion or morality.’ Excuse me? Is this America, with freedom of speech and freedom of faith? How do you do what’s right, unless you first know what’s moral or ethical?

When Jesus walked this earth, he was a highly controversial figure. He still is. “Who do people say that I Am?” – the Jewish Jesus asked his 12 disciples. That very question Jesus – the carpenter/builder – asked is still debated today, and has been for approaching 2,000 years.  It’s amazingly relevant.

Jesus picked Peter, and handed him the “keys to the kingdom,” yet Peter denied Jesus three times. Does that mean Jesus goofed, or does it mean that Jesus was reminding everyone that even ‘chosen’ people make mistakes.

Perfect human leaders before or after Jesus of Nazareth don’t exist. So, every mature adult makes allowances for each other, knowing we need that mercy and understanding too.  That said, some people will smile at you, while they rob you blind.  Recognizing that trait in others is useful as an adult. Then there are controversial figures that may not communicate as you or I would, but once understood, are surprisingly spot on. 

President Donald J. Trump is human, and has flaws. But he’s arguably the best President of the United States (POTUS) since Ronald Reagan. As an award-winning history major, I’d say, he’s already at least as good, if not better, than POTUS Reagan in his first two years.  That was a different time, Democrats and Republicans then were able to compromise.  Today, not so much.

Our manufactured home industry – and a host of other professions – need President Trump, if we are to have any hope of breaking the chains that previous politicians, bureaucrats and their big money backers have foisted upon us.

ItsUnbelievableHowMuchYouDontKnowAboutGameYouveBeenPlayingAllYourLifeMickeyMantleBaseballHallFameMastheadManufacturedHousing 

Our nation, not just manufactured housing, has been moving steadily toward oligarchy. Monopolistic maneuvers unethically enrich a few, at the expense of the many. I’m all in favor of free enterprise. It wasn’t news, but I’m increasingly aware to the high degree that Vulture and Crony Capitalism are not free enterprise 

The answer is to break up the monopolies and oligarchies. Not regulate them, break them up under a combination of civil litigation and federal antitrust laws.

Draft EO for Trump Administration AntiTrust Order Obtained by MHProNews

For the president to succeed, he needs a Congress and Supreme Court that work with him, not against him.  While laws are on the books that are useful, if his political opponents keep him tied up by winning the midterms, the opportunity for POTUS Trump to liberate American Workers and Businesses narrows.

MHI is demonstrably often wrong, and arguably often lying, deceitful, dishonest tool of Berkshire Hathaway and a few others. We’ve offered to debate their positinos, results, and methods.  They run for the hills. Why? If they are right, why not debate the issues, and practices?  

That doesn’t mean that everyone in MHI, much less every one of their members, are corrupt or evil. Some are scared. Some go along, to get along. Some hope to be the last one eaten. My sense is that the majority are nice people, but the organization they pay dues too is corrupted at its core. But those who can, should stop feeding the hand that bites them.

Danny Glover, Presidents Barack Obama & Donald Trump, Promises Kept, and Affordable Manufactured Housing

We’ve documented time and again, false and misleading statements made by MHI. They posture one thing, but often do another. 

For some examples, please see the links herein and below. 

The industry must break free of those who control MHI. Oddly, some of the like minded politicos and fellow travelers of Warren Buffett – for example, George Soros – also support in various ways MHAction, per our sources.

Enemies of Manufactured Homes, Communities; Rent Control, MHAction, George Soros, Ignorance, & Entropy

Jimmy Carter wrongly blasted President Trump, while overlooking the failures of the Obama Administration.  The report below covers that topic. The charts below the linked teaser shows just how badly the Obama Administration preformed on housing issues.

President Jimmy Carter Blasts Trump Administration on Affordable Housing, Carter’s Manufactured Home Ties

HomeOwnershipRatesUSCensusBureauDailyBusinessNewsMHProNews-1USCensusBureauMedianAskingRentDailyBusinessNewsMHProNews

How could MHI have failed to move manufactured housing ahead, given the facts implied in the above? Both of those trend lines are historic reasons for manufactured housing to advance.

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews-666x768

The facts are unmistakable.  A new alliance in manufactured housing must be forged. One that works for happy home owners through good, honest business practices. MHARR does fine by their members. They are at the head of the line cheering on the creation of a new, post-production trade group.  

Clayton Homes Ripped by Customer Complaints Spotlighted on ABC News

How can an industry trade group have dignity, when some of its most prominent members are plagued by scandal after scandal?

Has the Manufactured Housing Institute Accused Former MHI Chairman Nathan Smith of Federal Law Violations?

The industry is only slowly recovering from the disaster of 2008. Berkshire, Clayton, MHI, and people like Democratic supporter Nathan Smith are at the crux of the issues. That’s my considered view, based upon facts, evidence, reason, and analysis. MHI, Clayton, Clayton’s Attorney, Nathan Smith – they’ve all been given a chance to respond or debate.  Silence. They fail to defend the industry time and again, on issues like the one linked below.

Rumble over Anti-MH Law-State Association, Manufactured Housing Institute (MHI), Clayton Homes, and MHARR

To educate or inform is to lead forth.  The short-term focus must be to get candidates that will support the Trump Agenda into office or re-elected. Once that’s done, a new trade group must be forged, that can work with MHARR and independents of good will to advance the industry. “We Provide, You Decide.” © ##  (News, analysis, and commentary.)

(See Related Reports, further below. Third-party images and content are provided under fair use guidelines.)

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy 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 Rich, Famous, PreFab Homes, Manufactured Housing, Hypocrisy, and You

Principle of ‘The Lesser of Two Evils,’ and MHVille’s Future

“How Dare You…!” ELS’ Howard Walker Blast at MH Industry Professional

FEDs, MHI, Buffett’s Berkshire’s Clayton Homes Moat, Affordable Housing, and Billion$ in Manufactured Home Market Manipulation

 

Principle of ‘The Lesser of Two Evils,’ and MHVille’s Future

September 11th, 2018 No comments

 

NationalManufacturedHomeOwnersAssocLogoMHActionLogoMastheadManufacturedHomeCommentaryMHProNews600x315

There’s a simple but profoundly useful concept taught be ancient to modern thinkers who ponder business, ethical, moral, political or other issues.

 

It’s called the principle of ‘the lesser of two evils.’

It’s simple.  When confronted with a choice, neither of which is perfect, by definition each is a some level of ‘evil’ or imperfection. Which choice does the thoughtful person make?

Morally or logically, the lessor of the two imperfect or ‘evil’ choices.

1)    The featured image above, are MHAction and the National Manufactured Home Owners Association (NMHOA). Both of those groups purport to be working on behalf of the interests of the owners of pre-HUD Code mobile home owners, as well as the millions of owners of manufactured homes.

2)    There are currently two, and an emerging third, national trade association.  There is the Manufactured Housing Institute (MHI), and the Manufactured Housing Association for Regulatory Reform (MHARR). They each have a different mission statement, with MHI claiming to represent both production and post-production interests, and MHARR plainly stating that they work for the interests of mitigating regulatory issues that face independent producers of manufactured homes.

3)    There are two major political parties. As almost any American adult in the U.S. would know, there are Democrats and there are Republicans (a.k.a., the Grand Old Party or GOP).  Each major party, plus minor parties like Libertarians, advance their candidates for local, state or national offices.

4)    For fun and fairness, we could point to ourselves as trade publishers, and say the same thing. Compare what we do, with what any other remaining or new trade publisher does in manufactured housing.  Who brings you pablum, platitudes, or thinly veiled promotions vs. who brings you news, facts, analysis, and commentary that can be used to navigate the waters that businesses, professionals, and investors face?

Note none of the above – including ourselves – are perfect. By definition, any lack of perfection in philosophical jargon is some degree of ‘evil,’ not pure evil, but an imperfection.

Between imperfect choices, which choices from the above will people make?

 

Decisions, Decisions…

Elections are about choices.  Decisions. On a practical level,

  • one votes for a Democrat,
  • a Republican or other party, or
  • one doesn’t vote at all.

Those who don’t vote, have ‘voted’ not to participate, and have thus yielded to those who do.  The resident groups are right about this.  Their power is at the ballot box.  Just ask long-time industry professionals in states like CA or Delaware – not to mention a number of other states in between the east and west coasts – and they’ll tell you that resident groups have caused bills at the local and state level to pass that include measures such as rent control or “rent justification.”

The industry often opposes these.

Resident groups are engaged at the state level by a number of state associations. MHI and MHARR have engaged at various times and ways with NMHOA, though on differing topics. MHARR is not directly involved in community issues, but they do promote a robust entry by the GSEs into manufactured home lending, as one of several topics that are important to communities, retailers, and thus producers.

 

With the Table Set Above…

There are good reasons to believe this the upcoming midterm election could be the biggest in years, perhaps, in a generation or more.

Rob Weymouth, has been claimed as a member by the leadership of Delaware Manufactured Home Owner Association (DMHOA), which affiliates with both NMHOA and MHAction.

Weymouth, perhaps not realizing his illogical argument, in several letters to the editor in his area, has written arguing that Democrats needed to be elected, even though he admits in his own column, that the Democrats who passed a rent-control bill was “useless” to manufactured home owners.  Useless legislation, but vote for those that passed it?

MH Communities, Owners, MH Independents Alert – NMHOA and MHAction Next Steps? – Part 1

That said, Weymouth is urging manufactured homeowners to vote Democratic.

Tim Sheahan, is the president of the NMHOA. He had a lengthy submission to the FHFA on the topic of the Duty to Serve (DTS) by Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac. In it, he made several interesting points, which wittingly or not, he later logically contradicted.  See the report, linked below for specifics.

Tim Sheahan, NMHOA President, Controversial Points of Agreement with Marty Lavin, George Allen on Communities

The tactics and positions taken by NMHOA or MHAction tend to align more with Democratic than Republican politics.  If they see that differently, they’re leadership is welcome to send me a letter to the editor to clear up any confusion on that point.  But so far, what’s been communicated privately and publicly led us to that conclusion.

Let me be clear.  The analysis we’ve done are not put-downs to Weymouth or Sheahan. Manufactured home residents deserve respect.  There are few in the industry who’ve done more to lift up the image of manufactured home owners, as what we’ve done on MHLivingNews.com. For years, we’ve spotlighted morality tales of what not to do, when we publish articles about businesses that have gotten in legal hot water for wronging one or more residents.

So, the purpose of public discourse – there’s, our’s or other’s ideas – is to advance concepts.  Those visions ought to be examined and tested logically, using our God-given common-sense.

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No formal training in logic or debate is needed to analyze someone’s perspective.  What is needed, is objectivity and common-sense.  What’s helpful is applying simple principles, like the lesser of two evils.

For some time, MHProNews has systematically examined numerous issues that impact manufactured housing and manufactured home owners.  It has led up to this moment.

 

What’s the best way to advance the interests of manufactured home owners and businesses alike?

Let’s keep it simple.  Some respond to emotional appeals.  Set aside pure emotions, which can be manipulated.  As Poverty Inc demonstrated, what sounds big hearted can in fact be harmful to the very people that people of good will intend to help.

Let’s give NMHOA and MHAction the benefit of the doubt for now.  Let’s say, for discussion’s sake, that they want the best interest of hundreds of their members or millions of MH residents.  Let’s further say they aren’t working – as MHAction’s ties suggest – for the interests of billionaires like George Soros.

If that is so, then who is doing more for manufactured home residents?  Is it Democrats, as Weymouth and his DMHOA leadership think?  Or is it the emerging new GOP, under President Donald J. Trump?

 

Compare – and Decide

What precisely did the administration of President Barack H. Obama do for MH residents during his 8 years in office?

Compare that to what the President of the United States (POTUS) Donald J. Trump has already done to raise millions of more people out of poverty?  Think about how in 20 months millions are off of food stamps, have new jobs with higher pay, have lower utility bills, more take home pay, and more.  Better paying jobs that President Obama said would never come back, are back under President Trump.  Set aside style or tweets, etc, and look at results.  Considered objectively, isn’t it an easy comparison between Mr. Obama and POTUS Trump?

Former President Obama, unable to stand on his actual record, is now back on the campaign trail.  He’s trying to imply or claim in recent days that the increasingly booming economy is due to his policies.  That’s easily debunked nonsense. Coal, manufacturing, and other jobs that Mr. Obama said would never come back, are under President Trump’s pro-growth policies.

The fact that Mr. Obama even feels the need to make such obviously false claims should speak volumes.  Don’t let the supposedly soaring rhetoric carry your colleagues off.  Because a growing number of the former 44th president’s supporters left him for the Trump movement.

In fact, about 1/3 of the counties that candidate Obama won, where won years later by candidate Donald J. Trump.

Under President Obama, starting with his first midterms, Democrats lost a net of some 1,000 seats at the federal, state and local levels.

Keep in mind, that President Trump, much like the late President Ronald Reagan, is a former Democrat. That fact caused concerns for many in the GOP power structure.

President Trump has been:

  • good for job creation ,
  • Blue collar workers,
  • Good for minorities,
  • Good for women,
  • has reduced the numbers on public assistance,
  • has boosted investments in American businesses, which is good for owners, investors, and professionals.
  • It is those investors that could – under the right policies – begin building more communities that could rebalance the supply-demand equation for manufactured home community residents.

Here’s the bottom line.  Democratic policies since the Great Society some 50 years ago, spent over $22 trillion dollars until 2014, with no appreciable difference in poverty rates.

UCDavisUnitedStatesPovertyRateSince1959to2015DailyBusinessNewsMHProNews_001

The principles of Poverty, Inc – applied to the U.S. – will tell us that what’s needed is to clear the path for small businesses to open, operate and do business that lift people out of poverty and create opportunities.

Acclaimed Poverty Inc. Video, MHVille – Why Left & Right Should Listen, Learn From Each Other

Superficial thinking has arguably gotten:

  • manufactured housing professionals by the thousands, and
  • manufactured home owners by the hundreds of thousands,
  • both into less than ideal or even problematic positions.

It will take clear thinking, facts, and evidence to correct what’s gone wrong in manufactured housing.

MHARR, outspent by some 7 to 1 by MHI, has routinely picked the correct positions time and again on issues that face the industry.  By contrast, MHI has repeatedly taken positions that they claim are good for many, but in fact work for the interests of a few ‘consolidators’ of smaller businesses.

FEDs, MHI, Buffett’s Berkshire’s Clayton Homes Moat, Affordable Housing, and Billion$ in Manufactured Home Market Manipulation

It is hard to find something good to say (sorry) about the public positions and actions of MHAction.  There is clear overlap between MHAction and NMHOA.  That said, both NMHOA and MHAction, along with their state affiliates need to be engaged, as some professional associations have tried.  But it is resident group’s thinking that must be engaged, analyzed and put on display, as we have in articles linked from this column, above and below.

Ishbel Dickens said she was open to a public discussion debate of the issues with me, but never actually did so.  We’ve more recently made a similar invitation to NMHOA and MHAction’s current leaders.  We’ll see what they do, but so far, there’s no one jumping at the chance.  Why not?  Do they lack confidence in their positions?

If they are not willing to defend their positions, perhaps they should consider changing them?  In fact, that’s the purpose of analysis and debate. To discern through testing what’s true, what’s not, so that people can make the best decisions moving ahead.

The answer for residents is demonstrably not rent control,  Nor is it Democratic policies.  Frankly, it isn’t purely Republican policies that will fix things either.  As an independent, President Donald Trump’s policies – which blend elements from both major parties – are what could prove to be the path ahead.

MHARR’s president and former president said as much.  See the video, below.

Looking back, isn’t it clear that they were right?

Life is full of decisions, as we all know.  It often comes down to two imperfect options.  Pick the better of the two, which the ancients called the principle of the lesser of two evils. ## (News, analysis, and commentary.)

(Third-party images and content are provided under fair use guidelines.)

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, 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:

Racism – Getting Increasing Prosperity, Stability, Safety, and Certainty

Life, Liberty, Property – Supreme Court – and Manufactured Housing

“How Dare You…!” ELS’ Howard Walker Blast at MH Industry Professional

September 2nd, 2018 No comments

 

The late Howard Walker, longtime vice chairman of Equity Lifestyle Properties (ELS), and prior Treasurer for the Manufactured Housing Institute (MHI) had at times a brusque sense of humor.

 

Often the best part of many association or corporate meetings are when networking and socializing occurs. In fairness, that statement applies to MHI too.

From time to time, like on a Labor Day weekend, my mind flashes back to an MHI or other industry event. At the moment, I’m thinking of Howard Walker, who boldly approached at an MHI event, during the wind-down of a social/networking period a few years ago.   

The room was emptying. At the moment, I don’t recall the tune I was humming or singing from to those who remained, but perhaps it was from the 1812 Overture. Regardless, the melody was from a classic.  

As that melody was proclaimed, Walker approached, bearing a feigned anger and vexed look. It was quite convincing. He blurted out in my direction, “Tony, how dare you bring culture to a manufactured housing event!” 

His artificial anger melted into a smile.  We discussed culture, music and the classics. As it turned out, Walker enjoyed the classics and cultural activities too. 

There are those on the outside looking in that have a ‘T-word image’ of manufactured housing (MH), manufactured home communities, and by inference, the professionals in this industry. To be sure, some among the MH industry’s own have that view of the business, and/or about themselves. 

Not Howard. He valued culture and the classics. 

 

O Fortuna!

For those who don’t know Carl Orff’s rendition of O Fortuna from Carmina Burana, here you go. This video clip has had over 21 million views on YouTube. Ya gotta believe that it was worth the time for those who viewed and listened.

 

To round out culture, and connect it to our industry, let’s toss in some Henry David Thoreau too. 

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Each photo is of a modern HUD Code manufactured home, which can be 2400 sq.  ft. or more in size, 1 or 2 levels, set over a basement, or can be as modest as 320 sq. ft. These homes are all built to federal construction and safety standards that went into effect on June 15, 1976, administered by HUD, and are thus known as “HUD Code Manufactured Homes.”  

As a kid, my brilliant father – Francis J. Kovach, Ph.D – was into the classics. Every Sunday, the notes from some mix of classical music – plus the periodic opera – came from behind his routinely closed study door. As he did his writing or research on some book or for a scholarly journal, to keep his focus amidst a big family, in hindsight that closed door and music must have been an oasis of sanity amidst the chaos of a somewhat raucous family life. 

By the way, for those who recall the movie Excalibur, it had a scene or two where a short clip of O Fortuna was also the soundtrack playing. Here’s one clip from that movie with that soundtrack playing, that has over 400,000 views.

 

To achieve our industry’s potential, we must meet people where they are. We’ve spotlighted Elvis, Kid Rock, and Eminem’s connection to MHVille (see those linked under related reports, further below).   

Today, Howard, here’s to culture, the industry, and we raise this glass to you.  

Howard Walker, Mensch – Equity LifeStyle Properties (ELS), Manufactured Homes Retrospective

Culture, classics, and manufactured homes, wow… ##  (News, analysis, and commentary.)

(Third-party images and content are provided under fair use guidelines.)

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, 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:

Eminem, “8 Mile,” “Mobile Homes,” Frank Rolfe – Understanding Media and Public Perceptions of Manufactured Housing

Elvis Presley’s Personal Mobile Home Restored, Honeymoon Hideaway Up for Auction

“Po-Dunk” Performer Kid Rock, Eyes Senate Run, Makes Manufactured Home Living Hip

Fame, Pretty Little Liars Star Nia Peeples’ Mobile…err….Manufactured Home Tour, Featured on Oprah Winfrey Network Video

FEDs, MHI, Buffett’s Berkshire’s Clayton Homes Moat, Affordable Housing, and Billion$ in Manufactured Home Market Manipulation

August 9th, 2018 No comments

 

FEDsBuffettsBerkshireClaytonHomesMoatManufacturedHousingInstituteMHIBillionsMarketManipulationAllegedMHProNews

For billions of souls who believe, since the time Cain killed his brother Able, history records how dark emotions and desires have motivated some to harm or dominate others. 

 

In manufactured housing, Terry Decio with Skyline quipped on camera “I’m tired of being the best kept secret, I’m ready to help house America.” Terry’s father Art was on the cover of Time Magazine, and in a good way. MHProNews has reminded readers that American Presidents like Nixon and Ford have at times spoken and acted favorably toward our factory buIlt-home industry.

TimeMagazineTerryDecioManufacturedHomeLivingNews

The Decio family had Art on the cover of Time Magazine decades ago, the industry improved, so what happened to the MH Industry since then?

So how could it be that during a growing affordable housing crisis, that the numbers of manufactured homes (MH) shipped are just a fraction of the glory days when the industry shipped north of 372,000 new homes one year in 1998?  Or the even more inflation-adjusted prosperous days when the pre-HUD Code MH industry was selling more than 500,000 new homes in two consecutive years?

ScholasticCororatonFigure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

Realtor University, Scholastica ‘Gay’ Cororaton, CBE.

 

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Each photo is of a modern manufactured home, which can be some 2400 sq  ft or more in size, 1 or 2 levels, set over a basement, or can be as modest as 320 sq ft. These homes are built to federal construction, energy, and safety standards that went into effect on June 15, 1976.  They are administered (regulated) primarily by HUD, and are thus known as “HUD Code Manufactured Homes.”

 

Media, Money, Government, and Market Manipulation

Stephenie Meyer once observed, “Sometimes the best hiding place is the one that’s in plain sight,” per Goodreads.  

It’s a matter of history and fact that the interaction of media, money, government officials, and market manipulations have occurred in the U.S. – or any nation you care to mention – going back several centuries.

Even before the Seattle Times reported that federal investigators are probing Clayton Homes and their subsidiarity lenders – Vanderbilt Mortgage and Finance, and 21st Mortgage Corp – those Knoxville metro business units of Warren Buffett’s Omaha-based Berkshire Hathaway were known by this publisher to be under federal investigation. We had already reported federal investigations on the Daily Business News on MHProNews.  

But it is quite likely that the Seattle Times knew of some investigations that we didn’t, and vice-versa. While we’re the most read trade media by far in MHVille, the Seattle Times budget and resources blows us away.

That’s reality.

Kevin Clayton said in his own fashion that Berkshire/Clayton likes to use and work with nonprofits. Do certain Google searches, and the video of Kevin Clayton posted below is among what pops up on page one.

The video below edits not a word Kevin spoke, but written commentary was added by MHProNews to the video interview originally commissioned/authorized by Clayton/Berkshire. So, that video is also the truth hiding in plain sight.

 

 

For a variety of reasons, Harvard’s Eric Belsky predicted that manufactured housing would overtake conventional on-site construction by 2010. Belsky was wrong on that projection, why? Because Warren Buffett is a smart man – Kevin Clayton said so in the video – and Buffett reads a lot.  

Buffett arguably came to the same conclusion Belsky did.

Would it have been a surprise if Buffett knew what Belsky wrote, before buying Clayton Homes and other parts of the manufactured home industry? Didn’t Kevin Clayton obliquely suggests as much in the video, when he said that “Warren” does his homework?  Isn’t that what Buffett suggests himself, in this next video?

 

 

That’s the truth hiding in plain sight, online, among billions of other items. So, you or any researcher only has to look to find it. Or once found, to cross check the data we provide, and verify the accuracy of it. 

What Harvard’s Belsky likely didn’t count on when he said manufactured housing would overtake conventional housing in new construction by 2010, was that Buffett’s Berkshire would buy Clayton, Oakwood, Vanderbilt and 21st, and use “the Moat” principle discussed and linked from herein to manipulate the market. 

As the HUD Code manufactured home industry had been sliding downhill for some 5 years by that time, the new combination made Clayton Homes number one in MHVille, with deep capital pockets Kevin speaks about on camera.  

Buffett explains his principle of the strategic “Moat” in his own words in the video above. Notice how often Kevin Clayton speaks about the “Moat” in his video too?

That’s the truth hiding in plain sight. 

Belsky also noted that credit is the lifeblood of housing.

Presidents Nixon and Ford knew that credit was critical for affordable housing too. They took steps to make more financing available for what was then “mobile home” buyers. That took place prior to the formal dawn of HUD Code manufactured homes, which occurred on June 15,1976. All that’s true, easy to document, and is hiding in plain sight.

MultipleReasonsExpectManufacturedHousingDoBetterThanSiteBuiltHousingEricBelskyEecDirJointCenterHousingStudiesHarvardUnivDailyBusinessNewsMHProNews

Why does MHI no longer reference this, as they did prior to Clayton Homes being bought by Warren Buffett’s Berkshire Hathaway? 

 

For the Record 

We’ve previously published numerous examples of what could logically be alleged as market manipulations, carried out by the Arlington, VA based Manufactured Housing Institute (MHI). Isn’t that a restraint of trade? An antitrust violation?

Voices within manufactured housing and outside observers alike have concluded that MHI is the association/nonprofit tool of Omaha. It fits what Kevin said about nonprofits on that video. 

If you are Warren and Kevin, how do you widen your “Moat?” Why not do that by cutting off lending to competitors during the aftermath of the drama of the 2008 mortgage housing crisis? 

Why not do that by U.S. Mail, fax or other intestate communications?

Need proof? How about this letter below, signed by Tim Williams of 21st, a Berkshire Hathaway sister company to Clayton Homes?

21stMortgageCorpLogoLetterheadJan302009TimWilliamsRetailersBrokersCutSpecifiedLendingMonopolisticConcernManufacturedHome

See key parts of the text from Warren Buffett’s Berkshire Hathaway Annual Letter that contradicts important elements of what this 21st Mortgage Corp letter claims. Click this link here for those Buffett quotations, taken in context.

 

What was the impact and fallout that followed that 21st letter? What did it accomplish in the manufactured home market?  

Read carefully all the facts, and then what MHI’s own document deductively suggests. Isn’t that all the truth, hiding in plain sight?

MHI-21stMortgageKevinClaytonClaytonHomesManufacturedHoomeCorporationsPlantsDailyBusinessNewsMHProNews_001

ClaytonHomesOakwoodHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2003MHanufacturedHousingIndust

Clayton Homes, 2003. After the Buffett Berkshire Buyout.

These graphics reflect what the facts reveal.

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEndof2011MHanufacturedHousingIndustryProNews

This graphic is a snapshot of the industry at about the time of the Kevin Clayton video, posted on this page. In that video, Kevin says what “Warren” teaches about competition and the Moat.

ClaytonHomesBerkshireHathawayMarketShareofManufacturedHousingEnd2017MHanufacturedHousingIndustryProNews

While several mainstream media allegations of monoplistic practices have been made against Clayton Homes and Berkshire Hathaway, this trade publication is the only one known to date to have produced documentary evidence.  The documents, quotes from Buffett, Kevin Clayton and others reveals their own stated practices, and how that plays out in the real world. Neither Berkshire brands in MH, nor MHI has attempted to refute or debate these allegations or concerns, though they’ve been given the opportunity, as long-time industry readers know.

We’ve shown the above 21st document to investigators.

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. Fear is what state association executives and others have told us holds them in check

We also know that some in the mainstream media are looking into this topic. But the timing of other reports, or investigators on such matters being made public is never a given. 

Buffett has said he likes to invest in businesses that make sense.  Isn’t what’s summarized below, one of the reasons manufactured housing made sense to Buffett?

Fresh Facts, Figures, Future of Affordable Housing -Comparisons- Conventional Site-Built v Mobile/Manufactured Home Industry Data


SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustrysMartyLavinMHIAwardWinnerQuoteMHProNe 

Democrats and Republicans alike are voicing concerns over monopolies, and some are pointing to Clayton and Buffett by name.

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

But they have not yet used these specific “smoking gun” documents – nor the videos – shown on this page.

To the mainstream media, these 21st letters are “news.” 

Look carefully at the linked article below, and you will see how Warren Buffett’s own words contradicted 21st’s Tim Williams – who served several years as the chairman of MHI – and his letter, shown above. That 21st letter by Williams was at best a half-truth, or debatably, a manipulative lie.  Sent in the aftermath of the mortgage credit meltdown, it was plausible to may of those reading it.

The result? “Consolidation.”  The Berkshire/Clayton Moat grew. See the graphics above. People arguably have suffered as a direct result.

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

 

We’ve given Tim Williams, Kevin Clayton, their attorney, and MHI and their inside and outside counsel opportunities to reply, rebut or refute the claims, concerns and allegations of market manipulation that arguably involve them in antitrust and other kinds of illegal activities. So far, silence.  if MHProNews was wrong, why not refute us?

When MHI’s President, Richard “Dick” Jennison was scheduled to speak at the Louisville Show earlier this year, we emailed to our thousands of industry readers that morning a link to 12 questions they should ask Jennison.

Jennison abruptly cancelled that long-planned appearance in the Louisville Manufactured Housing Show’s  ‘educational’ session.

But MHI’s president was photographed at the Louisville Show, feverishly speaking on his cell phone with somebody, during the time he was supposed to be on stage. Who was on the other end of that phone call? Will the Feds do what it takes to find out?

 RichardDickJennisonManufacturedHousingInstituteMHIPresidentCEOLouisvilleManufacturedHomeShowByClaytonHomesDispalyPhoto2018MHProNews

 

The irony is that MHI and Berkshire Brand team members own behaviors essentially pushed this writer into discovering the truth hiding in plain sight. Questions and comments to me from industry members kept piling up, forcing this writer to take another look, a deeper dive. Among those that began to trigger my concerns were these publicly stated points, linked here. Among many others, was this comment shown below, also made publicly to MHProNews as part of an interview. 

KennyLipschutzQuotePoorJobOfLobbyinginMHIndustry-postedMHProNews48thMHINCClist

They and others know it took me time to wake up; my apologies for my tardiness. 

Because I was slow, I can relate to why others may be slow to accept reality too.

New Manufactured Home Industry National Association Related Statements

This helps shed light on the following question. How was it possible that so many outside of MHVille – HUD Code manufactured housing (MH) land, or the thousands of industry professionals like Terry Decio – how could the clear need for manufactured homes become so obscured?  Is it because MHI won’t routinely clear up the record on modern manufactured home realities?  The examples of unaddressed issues by MHI are numerous.

 

MobileManufacturedHomeManufacturedHousingIndustryFactsDataResearch-445x768

Some key manufactured home industry facts at a glance. How is it possible that MHI can’t even get all the basics of the MH data correct?

Presidents Nixon and Ford knew the pre-HUD Code MH industry, and supported it.  

Federal studies, university level research, and insurance reports going back at least twenty years specifically said that manufactured home quality had evolved from the days of ‘trailer houses’ and the later ‘mobile home’ era.

“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”

Vice Mike Pence knows this industry well, say our sources. Because as Governor of Indiana, Pence knew modern manufactured homes, and RVs, both built in that state. 

HUD Secretary Ben Carson says he hears the manufactured home industry, Carson has publicly promised a new era of cooperation. All that and more is the truth hiding in plain sight. Additional details are in the report linked, and heavily cross referenced, found below.

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

 

What that article above, and the one linked below, reveals is the harm that market manipulation has debatably cost everyday Americans, federal, state, and local taxpayers.

FEAR, a Solution to the Affordable Housing Crisis, and the Manufactured Home Dilemma

 

Secretary Ben Carson, Brian Montgomery, and Dana Wade at HUD are among those that should be aware of the “enhanced preemption” that’s called for by existing federal law with respect to manufactured housing over local jurisdictions. The Washington Post obliquely noted how the Manufactured Housing Association for Regulatory Reform (MHARR) pushed for an end to regulatory abuses by one Pam Danner at HUD. MHI SVP Lesli Gooch at MHI admitted to the Washington Post that they did not make an effort to stop Danner’s overreaches. Why not? Isn’t that the truth about MHI, now hiding in plain sight?

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

The applied logic of the two NBER researchers linked below is this. A lack of affordable cost the nation trillions. 

Local zoning is the apparent headache.  But when 99 percent plus of Americans don’t know about the enhanced preemption of manufactured homes under federal law, the obvious solution is overlooked.

When millions don’t realize the quality, they only consider the stereotypes, fear and prejudice kick in.  Thus the failure to embrace the reality of manufactured homes vs. the outdated myths and misconceptions of the past costs America some $2 trillion dollars a year in lost GDP.  While they aren’t talking about MH, that’s the NBER researchers logic, when applied to our misunderstood and maligned industry.  Put differently, there is no need to pass new laws.  The federal laws already needed to cure the affordable housing crisis have been on the books for years.  HUD officials surely know about it.  When their review of the manufactured housing program is complete, will they apply what they know, and fix these issues?

IthinkFairSawLowerThePeriodicCostSatisfactoryHousingTheGreaterOnAverageWealthCreation

Ken Johnson provided this as part of his reply when asked about manufactured homes as a path to personal wealth creation. https://www.manufacturedhomelivingnews.com/researchers-shake-up-american-dream-rent-vs-buy-ken-johnson-florida-atlantic-university-exclusive-to-manufacturedhomelivingnews/

 

Rephrasing the Truth

Rephrased, if Secretary Carson, VP Mike Pence, and the Trump Administration simply apply existing laws, our nation’s economy will soar. Home ownership will rise.  The need for subsidized housing will fall.

That will occur naturally, without artificial stimulation, because the lack of affordable housing is choking off the nation.

The future of housing in America, and around the world, is found in factories. Almost everything else we as a nation do is from a production center or factory. Why not housing?

 

The steady pressure of the truth hiding in plain sight, thanks to the tips and support of the few forward thinkers in this industry, has made it possible for manufactured homes to have a potential breakthrough moment.

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticiaGayCororationPhotoSmallPercentageDamagedDuring

Starting at Page 48, see her 30 page report on manufactured homes, linked here. Please watch her footnotes.

 

Scholastica ‘Gay’ Cororaton at the National Association of Realtors (R), among others, has made it possible for long-obscured realities to come into sharper focus.

But the truth is that Lisa Tyler, Ph.D., tried to spotlight much of this years before, when she did her doctoral dissertation on manufactured homes. I personally tried to get MHI to spotlight Tyler’s work several times. Tyler’s was useful research for the industry. Why didn’t MHI give Tyler’s important work a boost? Or the time of day?

 

DrLisaTylerHousingSolutionInexpensiveEnergyEfficientGreatValueOpportuntiesObsticlesManufacturedHomeIndustryMHLivingNewsDailyB

See the related report, linked here.

Open market manipulation can be described as a kind of confidence (con) game. With that thought in mind, the following quote from American Thinker seems to apply. “Never let your con grown stale. Never give up the con.” It’s a different topic than ours, and like this next quote from the Tucson Weekly, both seem to apply. Through speaking with his fellow inmates, he distilled the four major aspects of the criminal enterprise: 1, Develop a plan; 2, Recruit; 3, Make the pitch; 4, If caught, always deny, never give up the con.”

The “Rajin’ Cajun,” Bill Clinton campaign wizard James Carville obviously demeaned millions of Americans, while using a slur to distract from the sexual-scandal-plagued woes of his boss when he said, “Drag a hundred-dollar bill through a trailer park, you never know what you’ll find.” 

MHI’s prior chairman admitted that there were good reasons to defend the industry against such slurs.

TimWilliamsMediaRelationsManufacturedHousingIndustryDailyBuisnessNewsMHProNews-500x277

But they routinely don’t defend the industry. It’s an oblique kind of open manipulation of people and thinking that’s oft repeated.

That derogatory prejudicial slur has kept manufactured homes wrongfully in the shadows for so long. So why didn’t MHI address that prejudice over and over, like the NAACP did racism? Surely all those smart people at MHI with all of their degrees know that every once in a while, an advertorial about the industry or social media pages aren’t enough.  The irony is that most of the negative stories, about fires and what not, are about older pre-HUD Code mobile homes. Today’s manufactured homes are statistically as safe as conventional housing, per the NFPA

The point is that MHI could simply reply, as prior MHI Chairman Williams admitted. But as MHI member Frank Rolfe has repeatedly complained, instead, MHI remains silent. It’s a subtle way of letting the industry struggle, while Berkshire brands and other ‘insiders’ consolidate large parts of the industry. 

FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

Millions are being denied the American Dream, because of openly used influence, information manipulation, pejoratives that yield prejudice, finance and regulatory abuses. 

Couple that’s with years of a failures to apply existing federal laws. Do the $2 trillion dollar math. This tragedy is costing the average American household some 24k in lost GDP annually.

Rephrased, monopolistic “Moat” manipulations by billionaires and multi-billion dollar entities have cost American trillions a year in lost productivity. These issues ought to be placed on center stage during the next 90 days. They must be kept in the national limelight long after the next election, until the issues are finally fixed.

Seattle Times -Federal Investigations-Berkshire Hathaway’s Clayton Homes, GuruFocus Spotlights Buffett’s Clayton’s “Unethical,” Monopolistic Moat

Earning an honest buck, I truly admire. Earning billions honestly and ethically is fine too.

But please don’t manipulate hundreds of millions of people, and cost your nation trillions in the process, all to make several billion dollars a year in sales. Once understood, who can abide by that kind of costly white-collar con?  Where’s Equal Justice Under Law?

WarrenBuffettTheMoatQuoteMemeManufacturedHousingIndustryDailyBusinessNEwsMHProNEws

Buffett’s own words, the graphic is by the third party shown at the bottom left. The truth has been hiding in plain sight, but the various threads – plus the documents and videos above – had to be pulled together to paint the complete picture.

So, industry pros should not expect anyone in Arlington, Knoxville, or Omaha to confess.

But we already have what “Kevin” and “Warren” have said on videos posted above.  They’ve explained in their own words key parts of the moat and how its used to throttle competition. Marry that up with the balance of the facts and evidence.

The odds are that they will never willingly give up the con of a system they’ve debatably rigged and manipulated.

Like the solution to the affordable housing crisis, it’s the apparent truth hiding in plain sight. We’ve alleged it, we provided the evidence others first gave to us. We’ve given Berkshire’s brands and MHI an opportunity to publicly debate it, or refute it. MHProNews laid out the logic of evidence and the facts.

Now, what will you do with this knowledge?

Because if they did it before, what’s to keep them from doing it again?

Cain killed his brother Able out of mere jealousy. Some have scammed others since nearly the beginning of time. May God help us all. “We Provide, You Decide.” ©  ## (News, analysis, and commentary.)

(Third-party images and content are provided under fair use guidelines.)

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, for MHProNews.com.

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

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

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

 

Related References:

“Waste, Fraud, and Abuse” – FHFA, GSE Federal Oversight Announcement

ManufacturedHousingAssocRegulatoryReformMHARRMarkWeissDTSFHFA-GSEsGoingtoLargestBusinessesCorpAffiliatesDailyBusinessNewsMHProNews-575x268

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

“Insulting” – Local News Report on “Mobile Home” Fire Underscores Why Terminology Matters

Affordable Housing Focus Group – Comparing Housing Options – Conventional Houses, Condo, Rentals, and Manufactured Homes – Up for Growth, National Association of Realtor, Studies

Only 3 Options – the Elephant in the Room

Blackstone, Bain Capital, CityLab, and Inside the Manufactured Housing Outlook

July 29th, 2018 No comments

 

BlackstoneGroupLogoBainCapitalLogoCityLabLogoMHProNewsLogoManufacturedHousingHomeIndustryMastheadMHProNews

Why would The Blackstone Group (BX) enter the manufactured home industry quietly, instead of with fanfare?

Let that question percolate in your mind for a bit, because if a large operation like Bloomberg can’t pry an official statement out of Blackstone, then surely they must think they have a good reason? 

Keep in mind other in media are trying to get details from Blackstone or Tricon too. 

So once more for effect. Why would The Blackstone Group (BX) enter the manufactured home industry quietly, instead of with fanfare?  ICYMI, read that report later, at the link, below.

Blackstone Brilliantly Bets Big On Manufactured Housing, Enters Manufactured Home Communities Contest

 

Bain Capital and Manufactured Housing 

BainCapital Logo

Logo provided under fair use guidelines.

Tens of millions tune out politics (sad, allowing others decide your fate with no effort), so millions don’t know that Mitt Romney, the 2012 GOP candidate for president had long ties to Bain Capital.

Mitt Romney’s father – George Romney – was at HUD from 1969 to 1973. That would have been during the era in the run up to the mobile home industry’s push in Congress for the passage of the National Manufactured Housing Construction and Safety Standards Act in 1974.

Do you think mobile homes were ever discussed?  

Before you jump to the wrong conclusion, keep in mind that President Gerald Ford addressed the then mobile home industry’s convention in 1973. Again, ICYMI or this is your first visit, check out that report later, once you’ve carefully combed and absorbed this one.

U.S. President Praised “The Mobile Home Industry,” Manufactured Homes are “Here to Stay”

So would it be a surprise to learn that Bain Capital reportedly had (has?) interests in manufactured home communities, and thus in the manufactured housing industry? 

But guess what? Today’s Bain Capital won’t confirm or deny that point. 

Why not? 

Flashback almost

5 years, when an official at the Trump organization then denied to MHProNews any ties to factory-built housing. Now we know that there is some connection between the Trump family business, and rising unicorn star Revolution Precrafted Properties.

 

What Does It Mean When Big Name Operations Won’t Mention Manufactured or Modular Home Connections?

Longtime readers may recall the video captured lament of Skyline’s Terry Decio to MHProNews. ‘I’m tired of being the best kept secret. I’m ready to help house America.’

Stop and ask yourself this.

Why has Manufactured Homes been the “Best Kept Secret” for so long?

Why would Blackstone or Bain not celebrate their efforts to promote affordable quality living in America?

Why did Donald Trump’s family, before he became the President of the United States (POTUS), go with supporting an international operation that does high end PreFab?

 

Mainstream Media Reality Checks 

Aficionados, professionals, and enthusiasts that read here run the size of operation, net worth, political and other gamuts. Why? 

After years of MHI ‘allegedly’ trying to undermine, sideline, malign or destroy MHProNews and MHLivingNews, we’re still number one by a country mile; why?

Don’t forget these queries – because they are important for you and all pondering affordable housing. For now, set those questions aside for another time.

Regular readers know we’re strong believers in using the correct industry terminology. Now set that important point aside too, and let’s look at some mainstream media reality checks.

 

Mainstream Media Reality Checks 

The nomenclature and some details aside – as important as those are – consider the case made for manufactured housing by CityLab in the article below. Note that CityLab sprung from the Atlantic, which previously reported on manufactured homes. 

 

TheUrbanistCaseForTrailerParksMobileHomesManufacturedHomesCityLabJuly2018PhotoLogoManufacturedHousingIndustryLATonyKovachMasthead

There are some caveats and details beyond the nomenclature that should be noted. That said, this is a thoughtful column from an outsider looking in. https://www.citylab.com/equity/2018/07/the-urbanist-case-for-trailer-parks/566123/

Next, ask yourself why the case made by Warren Buffett’s own newspaper is weaker than the one linked above?

 

OmahaWorldHeraldLikeSiteBiultHomesManufacturdHomesCanGrowInValueNotEasyClimbManufacturedHousingIndutryDailyBusinessNewsMHProNEws

A close fisking of this article by Berkshire owned Omaha World Herald could reveal the need for a new mantra in MHVille, beware of Buffett owned media bearing ‘gifts’ for manufactured housing. https://www.omaha.com/money/just-like-site-built-homes-manufactured-houses-can-grow-in/article_f6390f94-59ab-5692-9cc5-3b24e8759533.html Note that this came not long after a Daily Business News article that questioned why Buffett had failed for years to use his media to promote a better understanding of modern manufactured homes. Coincidence?

 

Let’s rephrase. Warren Buffett’s Berkshire Hathaway owns Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and Finance (VMF), plus a slew of other manufactured home industry connected companies. They’re cozy with “Frank and Dave’s” growing communities operation.

So why aren’t Berkshire’s considerable media assets used to do an ongoing series on how manufactured housing is the solution to the affordable housing crisis that’s hiding in plain sight? Why would they come up with an interesting, but less than stellar piece like the one linked above? 

Warren Buffet understands synergy, because he’s mentioned it in his annual letter to shareholders.

Stop, hold that thought, because we’re moving onto another.

 

$100 Billion Monthly?

Investors Business Daily says that repatriation of cash into the U.S. is going at an annual clip of $1.2 trillion dollars, “…far more than the $35 billion one year before,” they said.  

That’s $100 billion dollars a month in capital coming in, looking for places to invest and grow.

Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales

Housing is already a trillion dollar annual industry, and U.S. housing is worth trillions collectively. There’s reasons why Berkshire is buying market share in real estate brokerage. There are reasons why Buffett’s Clayton are buying stick builders.  

But manufactured housing is the potential home run business opportunity play. 

So why has Buffett kept the profile of manufactured homes so relatively low in his own Berkshire owned media outlets?

Why did the Urban Institute – in their report on manufactured homes – fail to mention their ties to Buffett, or the “anonymous” input from MHI?

Don’t forget but set those inquiries aside for now. 

To oversimplify, there are broadly speaking, two currents in reporting by the mainstream media currently underway regarding manufactured housing.

 

Mainstream Media Current 1) There is still a loud, steady drum beat of mostly negative local news.  These are stories of things like: 

   mobile home fires (and most are in mobile homes, not manufactured homes),

   tornadoes, windstorms, hurricanes – and these are of the “if it bleeds, it leads” media model. The odds were 1 million to 1 last year in favor of mobile or manufactured home residents not being killed by a tornado. Would you know that from any media sources but this one?

   crime, community closures, and others black-eye stories.

 

Mainstream Media Current 2) not yet as big as the current above, but there is an ever-stronger chorus that are saying, manufactured homes are the affordable housing crisis solution that’s hiding in plain sight.  Note that phrasing is often similar or the same to what MHLivingNews promoted a few years back. That site, and this one, are having an impact.  That noted…

Which current will win?   

Let’s mention two other factoids for now. 

A)     There are more HUD Code plants opening since 2016 than in many prior years. We’ve not reported all those new producers by name yet, but we plan to in an upcoming report. Nor have we at MHProNews mentioned each new expansion for an existing HUD Code builder, but may in time, as it too is an ongoing trend. The point is, new production is coming on line. One new producer that just opened tells me they’ll be at 3 homes per day by the end of this week. Brand new manufactured home builder, but those partners in the project understand the HUD Code manufactured home business.

B)     There are also new and expanding lending sources coming online in MHVille. I’m not talking about the GSEs. 

The point?  The Capital is arguably available to break the iron grip of Buffett’s Moat. If you’re a first time reader – or someone who has only skimmed until now – read those related reports linked herein and below.

 

What’s Still Missing for MH to Breakthrough? 

In my productive conversation with NAR’s Scholastica ‘Gay’ Cororaton, we discussed the “Tony Take” on “appreciation and depreciation.” Gay May get a call or two after this, but hopefully not.

But suffice it to say for now, IMHO, we found broad agreement on the why’s and the what’s of what causes rises and falls in all housing prices, including manufactured homes.  

Rephrased, when deprecation occurs instead of appreciation, there are reasons that happens. They can be successfully addressed.

CityLab did a better than average job, and deserve some kudos (terminology, etc. aside).  

But they and most in the mainstream still don’t grasp the full reality of manufactured homes. In fairness, how could they without more time and research? Again, CityLab deserves more praise than critique.

The secret sauce to growth is a mix of logic, using deductive reasoning from known facts, some chutzpah, and the truth well told.

There’s been an “info war” over manufactured housing for decades. Ignorance and prejudice are the enemy.  

In response to this thesis, a well established (not new) non-MHARR HUD Code builder told me this week that “I am ready to info war. Very sad what is happening. People living in old cold dangerous homes. We are the solution.”

There are two fronts to this info war. The internal battle, within MHVille, plus the external battle with the newsmakers and public at large.

There are too many in our industry who skim. They do so because they think they know what someone is trying to say.

There are obstacles and opportunities. The correct approach will avoid those voices within the industry that have weaponized information to the industry. As another successful industry voice has said recently, “…If retailers would bow up and tell the MHI manufacturers they want dues paid to a new association rather than MHI there will be change. I do believe the majors have weaponized regulation that further entrench their companies or widens and deepens their moat. Keep my name off it please but I’ll support the efforts if [there] is enough backbone out there.” 

Longtime industry success story and observer Marty Lavin, JD, told MHProNews recently, So the association [MHI] is not there for the “industry,” unless the interests of the Big Boys join the industry’s.”  The exit of several from MHI – and the birth of a rival – reveals that there are votes of no confidence taking place. 

The oversimplified truth about our industry is that we are the solution to the affordable housing crisis that’s been hiding in plain sight. How did that long-kept secret happen?

The oversimplified answer is that forces within MHVille have limited or allowed limits on the industry in various ways, arguably through stupid greed, vs prudent and principled actions. I say stupid greed, because as believers in free enterprise and business success, we don’t think monopolistic strategic moats are how that’s best accomplished. There’s been artificial brakes applied to manufactured housing. Monopolistic practices, plus poor media engagement, are arguably among them. The fact that the big boys decline to comment on such matters, and decline debate too, says much.

The world does not owe the manufactured housing industry much beyond an invitation to engage. 

 

The Road Ahead?

It’s the job of every manufactured home industry pro, business, and association worth their salt to engage and make the case that addresses the unanswered questions tens of millions of Americans have. The fact is, most think they know, but what they know is often 42 plus years outdated info.  

Correcting misinformation and prejudice is profitable, and can be done at the local market level.

We’ve been on a mission for approaching a decade. But the truth is, the mission began years before. This writer learned the hard way that an article every few months out of the year for a limited distribution industry publisher was not enough.

We have to make the make the necessary moves – including the evidence-based case for manufactured homes – within MHVille, and beyond our current industry boundaries too. There are reasons why Blackstone, Bain and others aren’t – yet – celebrating their role in profitably solving the affordable housing crisis. ## (News, commentary, analysis.)

(Third party images, content are provided under fair use guidelines.)

Related Reports are below…

By L. A. “Tony” Kovach, publisher, consultant, history buff, and manufactured housing industry expert.

Connect on LinkedIn. For 2x weekly emailed headline news, click here.

 

 

 

Related Reports:

Profits, Understanding Human Events, and Manufactured Housing

 

“Challenges to Obtaining Manufactured Home Financing,” Urban Institute Report Fact Check, Analysis

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

 

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

Achieving the American Dream, with Quality, Appealing, Affordable Home Ownership

“The Solution to the Affordable Housing Crisis is Hiding in Plain Sight”

Weather Expert’s Surprising, Bombshell Statement on Tornado Deaths and Affordable Manufactured Homes

Researchers Shake Up American Dream? Rent vs. Buy, Ken Johnson, Florida Atlantic University, Exclusive to ManufacturedHomeLivingNews

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

 

 

Life, Liberty, Property – Supreme Court – and Manufactured Housing

June 28th, 2018 No comments

SupremeCourtofUSSCOTUSBldgLifeLibertyandProerptySupreceCourtandManufacturedHousingJusticeKennedyVacancyMHProNews

1776 to 2018 and beyond. The issues of Life, Liberty and Property were as important when Thomas Jefferson drafted the Declaration of Independence as they are today, or will be tomorrow. And it very much matters to our industry, investors, and related professions.

 

When Sam Zell said they discovered that at Equity LifeStyle Properties (ELS) that they had partners they didn’t expect, he was alluding to the forces of government, often driven by voters.

When you boil down what’s happened – and is happening – in our factory crafted home industry, outside forces impact your ability: 

   to invest,

  where you can place a home,

  what the image of our MH products and communities are,

and so on.

Furthermore, forces within our industry can and arguably have gamed or rigged the system in ways that unduly favors the large vs. the small. That in turn can disrupt the economy, politics, and jobs in a variety of ways.

Into this milieu is the not-entirely-surprising announcement of Justice Anthony “Tony” Kennedy’s retirement from the Supreme Court of the United States (SCOTUS). That retirement has arguably just supercharged the upcoming 2018 midterms.

Salena Zito Tweet Wakeup on Recent High Court Rulings, Touts the “Great Revolt,” SCOTUS Kennedy Shakeup

From issues regarding monopoly, to private property rights, and more, manufactured housing is likely to be in front of the high court in the next 24-48 months. So the replacement of retiring Justice Tony Kennedy ought to loom large in MHVille.

But it’s also huge on hot-button issues like abortion. The political left is gearing up for that fight as we write. The right-to-life forces will too.

 

Having witnessed the appointment of Neil Gorsuch to the Supreme Court of the United States (SCOTUS), and watching President Donald J. Trump and Vice President Mike Pence repeat the themes of “promises made, promises kept,” and “we will enforce the law” – like it or not – there are numerous reasons to believe those claims.

That means supporters and detractors alike are going to gear up for the midterms. No hype, but this may become the most consequential midterm elections in our lifetime.

In North Dakota last night, the President of the United States (POTUS) Donald Trump laid out his case for taking Heidi Hiedcamp’s Democratically held seat, and turning it over to a member of the GOP. He and VP Mike Pence will likely repeat this in battleground states from sea to shining sea, between now and Election Day in November. 

 

 

Life, Liberty and Property

Life, Liberty and Property” were the core rights to be protected, in the initial draft of the Declaration. In the revision to the Declaration of Independence, which was signed on July 4,1776, Thomas Jefferson changed “Property” to read “the Pursuit of Happiness.” Both versions are timeless in their meaning. 

A millennial and self-proclaimed socialist – Alexandria Ocasio-Cortez wins in New York –Tuesday over 10-term incumbent Rep. Joe Crowley in New York’s 14th congressional district.  Crowley was the number two House Democrat, a stunning primary upset.

 

MHProNews has been reporting for over a year the growing trend of openly socialist Democrats running for office, and how millennials are closely divided on the topic of free enterprise (“capitalism” is the normal phrase used in public opinion polling) and socialism.

“Political Necrophilia,” Tragedy in SloMo, Southern Economic Political Lessons for Looming U.S. Midterms

A nation divided must learn how to engage the other side on thorny issues without threats of intimidation or violence.  

A nation in need of affordable housing must be engaged by manufactured home professionals in ways that make sense to clear majorities.

These are challenging, but exciting times.

 

The View from MHVille…

It’s gratifying to first hear and later read from industry professionals, “Tony, if MHProNews is writing about it, I want to know about it.” We’ve made several tactical adjustments over the years, and did again last year by moving into a transparent statement that every Daily Business News item is a mix of reporting, analysis, and commentary.

We have an editorial viewpoint, informed and shaped by experiences influenced by professional readers who call, message, and write. We are mindful that voices and policy makers inside and outside of our industry are on our pages daily by the thousands. The CFPB formally cited MHLivingNews as a source. The Congressional record includes a document that first appeared on MHProNews. Popular Value Penguin published an op-ed that includes both of our pro-industry publications.  

What happens in MH trade publishing here matters.

Every day in the evening market report, we do what no one else in the history of the industry’s trade media has ever done. We share headline bullets from CNN, and headline bullets from Fox Business.  We’ve done that for years. That’s fair and balanced.  An example is linked below.

Warren Buffett Strikes Deal with Lee to Manage Berkshire Units, plus MH Market Updates

Those who scan those left-right headlines in our market report every evening get more news in 2 minutes than watching an hour of news at night on TV or your device.  We save time, and yield more insights.  

Those who check the evening market report data each business day are miles ahead of their peers who don’t do the same. Those who read our featured topic for the day get insights on issues that move America, and thus will move the markets, or impact business and investments.

 

The Dow to 30,000?

Barring a catastrophic event, the Dow could hit 29,000 to 30,000 by 2020. Yes, even with all of the trade war talk, that’s a realistic outcome.  You read it here first. Why? Read the evening market report every night for a month, and you’ll see why we believe that’s coming. 

The president draws each of his rally events to a close with a call for unity of the nation. He cites the reasons during his talks why blacks, Hispanics, women, workers, investors, and others should support his efforts. He does counter-punch, but he also puts out olive branches. He is controversial, but just accept it and watch. His opponents claim he is petty and vindictive. Really? Ask Nikki Hailey, Marco Rubio, or Mitt Romney – who opposed him. Yet, he’s called on them, and supported them.

POTUS Trump is arguably among the most accomplished people to ever occupy the White House. He’s lancing numerous festering boils, as my better half might say, using a medical analogy. It will be ugly, until it is over.

Life, Liberty and Property – the Pursuit of Happiness. Can the Republic find healing after what will be a bruising midterm? Let’s close with an excerpt from Psalm 79.

Psalm 79

R/ (9) For the glory of your name, O Lord, deliver us.

 

Remember not against us the iniquities of the past;

may your compassion quickly come to us,

for we are brought very low. R/

 

Help us, O God our Savior,

because of the glory of your name;

Deliver us and pardon our sins

for your name’s sake. R/ ## (News, analysis and commentary.)

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Related Reports:

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

 

Only 3 Options – the Elephant in the Room

 

NorthStar and Manufactured Housing Radix

To provide a News Tips and/or Commentary, click this link. Please note if comments are on-or-off the record, thank you.

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Publisher and industry consultant, L. A. “Tony” Kovach.

By L.A. “Tony” Kovach – Masthead commentary, 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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Only 3 Options – the Elephant in the Room

June 19th, 2018 No comments

Only3OptionsTheElephantIntheRoomManufacturedHousingIndustryDailyBusinessNewsMHProNews

A) In manufactured housing production, the elephant in the room is Clayton Homes. They are owned by Berkshire Hathaway, which also owns the 2 largest industry lenders, 21st Mortgage and Vanderbilt Mortgage and Finance (VMF). Berkshire also owns a large stake in the industry’s third largest single family manufactured home loan lender, Wells Fargo.

There are only three (3) options on the following topic. The Berkshire owned manufactured housing brands either:

1)     know very specifically what must happen to grow manufactured housing sales up to the industry’s sustainable potential, which some estimate to be between half a million and a million HUD Code manufactured homes (MH) annually.

2)     The Berkshire brands in MH don’t know what must occur to grow the industry to reach its potential.

3)     Some point on the spectrum between numbers 1 and 2 above.

That’s about 150 words. The rest are details and commentary.

 

B) Arguably, any of the 3 positions above ought to be alarming to the vast majority of the industry’s independents. Why?

The case has be made by voices inside and outside of MHVille, that the Warren Buffett led Berkshire brands in MHVille dominate the Manufactured Housing Institute (MHI).

While he’s been silent in recent months, MH Communities pro Frank Rolfe was among the industry’s professionals who blasted MHI and their “hypocrisy” and failed “leadership” in defense or promotion of the MHIndustry.

Marty Lavin, a MHI award-winner, said on-the-record that MHI only works for the interests of the big boys.” Lavin added that MHI only work for the interests of smaller companies if they happen to align with the interests of “the big boys.”

The Manufactured Housing Association for Regulatory Reform (MHARR) was cited by the Washington Post (WaPo) as having been the driving force for the removal of Pam Danner at HUD. MHI‘s EVP Lesli Gooch specifically told WaPo they took no part in removing Danner. Why not?

We could outline other examples, on the Duty to Serve (DTS), DOE and the energy rule, or how Pam Danner got her job in the first place. MHI has been on the wrong side of numerous issues, plus the execution on other important issues.

The bottom line is that MHI’s track record are seen by several professionals as problematic, save for the consolidation of smaller companies into the hands of larger ones. That’s about 275 words. The rest are details and commentary.

 

C) So in about 400 words above, a case has been outlined. Logic and evidence-based concerns, plus common-sense reveals why the Berkshire brands and MHI arguably should not be trusted by the vast majority of MHVille independents. The rest are details and commentary.  We’ll invite them again to debate this publicly via video.  If we were wrong, why don’t they take us up on that invite and prove us wrong?

 

D) State communities associations have broken away from MHI. They are in the process of formalizing the launch of an independent manufactured home national communities association.

Those MH Communities have split because they lost confidence in MHI representing their interests. The rest are details and commentary.

 

E) Smoking Gun 3 documented and outlined how 21st Mortgage questionably pulled-back on lending to MH Independents in 2009. Hundreds of retailers folded afterwards.

As a result, a number of HUD Code manufactured home producers either failed, or were absorbed by Clayton.  Some where absorbed by Cavco, which is led by a former Clayton division president. Skyline Champion recently combined. Now 80 percent of the industry’s production is in the hands of those three vertically integrated firms.

The rest are details and commentary.

 

F) Manufactured housing is increasingly being recognized as the affordable housing solution that is hiding in plain sight. MHLivingNews touted that theme years ago. Others in media have been picking up on that very theme. Coincidence?

There is a need for 8.3 million affordable housing units in America today. It can only be provided cost-effectively by some form of factory building. HUD Code manufactured homes are the most affordable solution today.

 

G) Even though Clayton and MHI each have marketing and PR people, they have routinely allowed bad news stories that unjustly harm the industry’s image to go unaddressed. They have done so for years. 21st Mortgage CEO Tim Williams, the prior MHI Chairman, admitted on-the-record that the case could be made that every unfair story about MH should get addressed. Frank Rolfe has said similarly.

The above is about 700 words total to say that MHI and Berkshire may not cause every bad news story in MHVille, but they fail to address the majority of them.

The upshot? Limited new home sales and more Consolidation. See what award-winning Alan Amy said about that in the video.

 

H) The MH Communities sector recognized their need for independent representation. Retailers and others in the post production sector arguably need representation do too. MHARR is clearly representing the interests of the industry’s independent producers, as WaPo, the SBA, George Washington University and other third-party sources reflect.

 

I) Is there any reason why the Berkshire brands couldn’t repeat what they did in 2009? Shouldn’t every independent operator realize that they have a symbolic target on their head?

The rest are details and commentary.

 

J) Thanks to our supporters, we planned ahead years ago by creating the industry’s first and premier pro-industry educational platform with MHLivingNews.com.

MHProNews was a key part of the rebirth of the Louisville Show, as everyone in show management at the time said on camera and/or in writing.

We’ve proven our ability to get into mainstream media, such as Washington D.C.’s The Hill. Or consider often-referenced by others in media, Value Penguin, which ranks among the top 2 percent of all websites in America. Value Penguin dwarfs anything in MHVille for traffic.

 

K) We and those that support our efforts know what must be done to remove the shackles that have hobbled manufactured housing for years. Information and understanding are the First Phase.

Armed with evidence and reason, we are at the cusp of starting Phase 2.

The details and next steps will follow in the days ahead. Stay tuned, and sign up for our industry leading emailed headline news updates. From the biggest names in MHVille, to the mom-and pops, and thousands in between, we continue to lead the industry in readership. The reasons include insights like those above.

How do you eat an elephant? One bite at a time. ## (News, analysis and commentary.)

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

NorthStar and Manufactured Housing Radix

To provide a News Tips and/or Commentary, click this link. Please note if comments are on-or-off the record, thank you.

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Publisher and industry consultant, L. A. “Tony” Kovach.

By L.A. “Tony” Kovach – Masthead commentary, 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.