The Masthead

Business and profit building education has always been one of the many benefits of membership in state and national associations. When we say that an association exists to protect and promote the industry, that's true. One of the ways those goals are accomplished is precisely through educational workshops, seminars, symposiums and events tailored for manufactured housing owners, managers and professionals.

 

post by

L. A. “Tony” Kovach, MHM

www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500

latonyk@gmail.com or tony@mhmsm.com
http://www.linkedin.com/in/latonykovach

Thanksgiving. Christmas. New Year’s. These are times that we gather with friends, family and associates. We celebrate, party and feast! We eat (and sometimes drink ;-) ) too much! To those distant, we send warm greetings by phone, mail, text, via Facebook, Twitter or email. FedEx and UPS certainly celebrate all the packages that reflect the love and caring that this season brings. These are for most of us bright, grand days during the seasonal darkness where we Americans live.

This is also a time for reflection.

Many companies and individuals use this time to review what has transpired in the past year. To see where they have been and what direction they have moved. To ponder and advance what has been right, and also to learn what needs to be set right that was wrong. That is an important process. Just as a star once guided the wise during the dark of night, so too there are lights that shine for us during these darker days. IF we are willing to focus on the light of wisdom and follow, then we too may find what we seek…

As part of my personal reflection, let me pause and thank you for being here. It is a privilege to serve.

It is also quite humbling to see who we have shared these pages with at MHMarketingSalesManagement.com (MHMSM.com) in this past year. We have an amazingly dedicated team of fine feature writers! They have shared with you and tens of thousands of others their time and insights on our pages and in our podcasts. The best among us understand the fact that sharing valuable time, insights and experience is a wonderful form of giving back! Many of the best are found right here. My thanks to each of you.

Warm thanks also to those who have written for the Industry Voices Guest Blog and participated in A Cup of Coffee (or Cocoa)… interviews or Industry In Focus interviews with Eric Miller.

We have a great team on the staff of MHMSM.com as well. Unless you work behind the scenes, it is not easy to imagine how much effort it takes to pull off the business daily news and information, monthly feature articles, and weekly blogs and emailed newsletters. Plus the daily business news podcasts, too! My hats off to the fine folks who make MHMSM.com possible through their daily efforts.

Let me share those names with you below.

Joe Adams

George F. Allen

Michael F. B. Barnabas

Rachel Biermann

Beth Monicatti Blank

Jason Boehlert

Chad Carr

Tim Connor

Maria Cucchiara

Congressman Joe Donnelly

Mike DuPure

Dick Ernst

Marc Faulkner

Suzanne Felber

Sue Frost

Danny Ghorbani

Doug Gorman

Nadeen Green

Jamie Hammons

J. D. Harper

Edward ‘Eddie’ Hicks

Dennis Hill

Mike Hourigan

Chrissy Jackson

Congressman Walter Jones

Joe Kelly

Ross Kinzler

Susan Knowles

Steven Lefler

Thayer Long

Bill Matchneer

William P. McCarty

Greg McClanahan

Eric Miller

Mike Moore

Shawn Mullins

Greg O’Berry

George Porter

Dan Rinzema

Kenneth Rishel

Tim Saville

Ray Schmitt

Dave Shanklin

Joanne Stevens

Kent Stichter

Bob Stovall

Congressman Bart Stupak

R. W. Thiemann

John Underwood

Heather Vela

Richard Weinert

Don Westphal

Stephen Wheeler and Marilyn Kuntemeyer

Zig Ziglar

Privacy policies – and space limitations! – prevents us from sharing the names of all those who are our readers. From associations, to government officials, to the “Mom and Pop” firms that are the backbone of this great nation, to the mid, large and giant companies of our Industry – you will find our readers and listeners.

We have all learned from others, and it is by passing along lessons learned and sound insights that society – or an Industry! – can advance. Unless we are willing to adapt and grow, change will pass us by. Thus the importance of a place like MHMSM.com – where minds come together, to share, learn, adapt and grow! Corporate and association meetings are important. So is the meeting place of the mind online or via our podcasts.

As we ponder the deeper meaning of these and other seasonal holidays, let us allow the spirit of giving and receiving well to inspire us to be our best.

You or others readers and listeners like you have shared thoughts in person, by phone or electronically. My sincere thanks for each thought shared. Many of our tips come from you. Some want to be kept anonymous, and that is honored here. In the ideal, we have an exchange, a deeper encounter than may at first be obvious. It is naturally our desire to listen as well as share back with you, and thus the reason we are all here.

No one in their right mind denies the challenges we face. But neither should we let those challenges daunt or deter us! Americans have overcome much greater challenges than we face, so we can do what needs to be done today and tomorrow.

Let us learn and apply those insights we gather from one another to improve and grow personally and corporately, and thus as an Industry.

Let us make 2011 a year for true advancement.

Let us do what it takes to make our better days ahead a reality.

There is a star that shines in the darkness of night. This is a metaphor that can inspire us if we allow it to do so. We have star power on these pages, and we have star power in you and some 35,000 others like you in various parts of this Industry. Together, we can advance and grow.

My thanks to all who visit, read, listen, write, podcast and meet in this modern fashion on our pages. My sincere thanks to you. We hope our work is our gift, symbolized by our e-card above.

Merry Christmas! Let’s catch up with each other again this weekend and we hope to meet with you again next week. # #

The International Networking Roundtable (INR) is behind us, and we are only days away from MHI’s meeting in Denver. A few brief thoughts… and more to follow.

The Roundtable (INR) featured a number of important ‘reality check’ keynote topics:

• Randy Rowe, State of the Asset Class address, in which he outlined 5 points that need to be addressed.
• Joe Adams, who touted leaders by example in the Industry, but also candidly addressed gaps in marketing and sales skills that hold individuals, companies and thus the MHIndustry back.
• Dick Ernst, who spoke about the SAFE Act, and how that impacts our Industry, why it needs to be understood and how it must be positively addressed.
• Dr David Funk from Cornell University, who gave us compelling insights into the world of Manufactured Housing demographics, general housing trends, and what it can mean for the Industry.
• Panel discussions on financing, manufacturing and general Industry issues, along with numerous other topics and presentations.

We plan to cover all of these, photos of show homes on display, my own presentation and more in some depth in the days ahead.

The rally?

What I wanted to focus on for a few moments was George F. Allen, ably accompanied and supported with Susan McCarty, some comments he made and some take-aways and posers.

Most of the attendees I spoke with felt INR was meaty, compelling and very much worth the time and investment. Many first-time attendees were present, and about 175 total came. As many noted with/to me, that attendance is nearly double the number who came to MHI’s summer session this past July.

While others aided in the process, there is no doubt that George F. Allen (GFA) deserves major kudos for what this (and previous) INRs represent! MHC and other Industry pros from some 26 states, plus Canadians, came to Phoenix, AZ for this executive level meeting. Chairman, CEOs, execs, owners and association leaders were in attendance. This scope and depth takes significant organizational skill; it is a laudable and noteworthy accomplishment indeed!

George Allen promoted MHI and gave Thayer Long the floor to speak, proving an opportunity as well for MHI PAC to raise Funds for the upcoming election campaign season.

GFA, who has inexplicably been passed over by the national MH/RV Hall of Fame, handed out literature for that worthy cause. GFA encouraged support and a visit to their historic facility in Elkhart, IN.

George took the time to pull me aside and make suggestions, share tips and insights. This he did for many others as well.

In short, GFA was a team player and a true Industry leader, living up to the Man of the Year award he earned not so long ago.

All that said, I want to note what GFA himself said. “Only some 2% of the MHC Industry leadership was in attendance.”

GFA spoke of the tough love statements by Randy Rowe and others. Thayer mentioned that MHI now has some 331 members. While billions of dollars were represented in that room – or are represented by MHI – wouldn’t it make sense for more people to be involved in associations and functions that are geared to support our Industry at its time of great need?

More than one speaker made the point that the Industry can’t wait for the FEDs or any outside force to come in on a white horse to save our collective bacon. We as an Industry are modestly up in shipments year to date. Some companies are clearly showing signs of improvement. Those who are improving are the ones committed to success, regardless of what is coming at them! They are the ones adapting, profiting and benefiting while some avoidably may fall by the wayside.

Regular readers of the Masthead blog know I believe we need to engage the Federal and other regulators, call on Congress, rally industry members and our customers into a force to be reckoned with politically. But I agree, we can’t wait for outsiders. But neither should we abandon the lobbying efforts. We need multiple converging paths to success. As any investment counselor would say, don’t put all your eggs in one basket.

Too many are outside the ranks of associations. Too many don’t attend meetings like INR. Too many fail to invest in self-improvement, coaching and the like, even if they clearly need it.

Some say to me, “Why should I be in an association? I don’t agree with so and so. I don’t see how they have turned our industry around yet.” But isn’t that like watching your neighbors man the levees during a flood, and saying, “Until they have all the sand bags in place, I won’t join and help”?

Where someone sees it differently than MHI or MHARR or any other association, group or leader, he or she should say so respectfully and also explain why. Those with a different perspective should say what they propose instead, and not just criticize. They should be prepared to do what so many others do, volunteer time and talent!

The same applies to Industry publishers, including us.

I don’t mind the occasional critiques that come in from readers or their posts. I don’t mind a different point of view, especially if it is respectful and well-articulated. So long as there are no ad hominums, no profanity or slander, sound off! It makes for a better discussion!

What I do think is often lacking from nay-sayers in general is something beyond a gripe. We are not going back to the Conseco-GreenTree days. We should not want to return to worst practices, when best practices are the way to long-term sustainable success. We must care for our customers, as Randy Rowe, Dick Ernst, Joe Adams, Don Westphal and so many others at INR said.

But let’s move towards a close on the rally point. Hats off to George for pulling together such an impressive array of speakers and solid content! MH/RV Hall of Fame… are you listening?

If you aren’t already involved in positive change in association(s) and forums like INR that make it happen, please, get engaged! We need both – the new blood and new ideas, and also the wisdom that history and experience brings.

We must learn from the past, live in the present, and build for a bright future. We need more leaders willing to invest time, talent and treasure. We need more committed engagement. Working together is the path to success for any company, any team and – yes, for most industries, too.

That said, on to the Manufactured Housing Institute (MHI) meeting in Denver, CO! # #

Odds are, you want more favorable media for manufactured housing. Chances are good you want to learn how to grow and expand your business through favorable marketing, selling more homes and/or positive change management or maybe you want access to financing. Perhaps you are looking for a new manufacturer or supplier.

These are some of the business-building elements found in this three-part blog post!

Part I.

Let’s start with the latest on the International Networking Roundtable (INR), which is coming up fast (September 15-17, 2010)…

Joe Adams, Dick Ernst, Dr David Funk, Thayer Long, Ken Rishel, Randy Rowe, INR+ 12… in short: Marketing Magic, Media and Manufactured Housing!

Paul Bradley, Evelyn Bryant, L.A. ‘Tony’ Kovach, Susan McCarty, Jeff Mishkin, Fred Rice, Spencer Roane, Don Westphal. These are just some of the names who will inform, inspire and help guide you to better marketing, financing, deal making and more.

I’ve had the privilege of previewing Joe Adam’s upcoming presentation on Marketing for the International Networking Roundtable (INR) to be held in Phoenix Sept 15-17th at the Pointe Hilton Tapatio Cliffs Resort. Let me just say, you’ll want to BE THERE! If you love his feature articles here, you will enjoy hearing the great material delivered live by Joe Adams! I will be there and I hope to see you IN PERSON at this session and others.

In fact, there is plenty of star power bringing you great information at the 19th Annual INR. If you are interested in growing your business, all who are attending this seminal event say it is a great place to be for networking and learning what’s hot and what’s not; on-site deal making, financing opportunities, model homes on display and much more are all here. From the Gala Reception, show homes on display, to the prayer meeting for Our Nation and Leaders and more!

You can check with George Allen at 877-MFD-HSNG (877-633-4764) or 317-346-7156 for a brochure, actual order of appearance of the speakers and topics and related details. George tells me the list below is the latest update – in alphabetical order by last name, with their respective topics:

1. Keynote: ‘Effective Marketing in Tough Times!’ – Joe Adams, The Housing Market Place, Inc.

2. Panel: Open Forum Discussion of MHIndustry Issues & LLCommunity Concerns – George Allen, Moderator

3. Shared Equity, Reality or Fad? – Paul Bradley, ROC-USA

4. Keynote: ‘S.A.F.E. Act &You! UNSAFE or OK?’ – Dick Ernst, FINMARK

5. Keynote: ‘Loss Control in Era of Rentals & Contract Sales’ – Evelyn Bryant

6. Keynote: ‘MH Demographics & You!’ – Dr. David Funk, Cornell University Program in Real Estate

7. How to Get 150 Sales Calls a Week On-Site! – L.A. ‘Tony’ Kovach, Manufactured Home Marketing Sales Management, www.MHMarketingSalesManagement.com or www.MHMSM.com (Since I know the speaker, there is MORE on this topic below.)

8. National Communities Council Update – Thayer Long, MHI

9. Registration & Special Gifts – Susan McCarty, Community-Investor.com

10. Landlease Community Investors’ Forum – Jeff Mishkin, Marcus & Millichap

11. Utility Sub-Metering in 2010 & Beyond – Fred Rice, Spectrum Utilities Solutions

12. Is ‘Captive Finance’ For You? – Ken Rishel, Precision Capital Funding

13. Symposiums, Spinoffs & More… – Spencer Roane, Pentagon Properties, Inc.

14. Keynote: ‘State of the Manufactured Housing Industry’ – Randy Rowe, Green Courte Partners

15. Community Series Homes, One Year Later – Don Westphal, Donald C. Westphal Assoc.

16. Panel: Home Manufacturers & Business Development Managers!

17. NSAC Update: Why You Should Support the RV/MH Heritage Foundation!

18. Panel: Real Estate Lenders!

19. Wells Fargo, Manage America & Origen LLC will be among the other firms represented.

20. Welcome Reception, Introductions, Informal Prayer Meeting for Nation and Leaders, Breakfasts, Lunches, Toasts, Visit Home Shows, the Gala Reception and more!

21. Wrap-up Session & Open Discussion Topics for Next Year?

I had planned to attend this event even prior to my being invited to speak on Marketing Magic, Industry Image Makeovers and share a reflection at the Informal Prayer Meeting.

Part II.

In my INR presentation, I am going to talk about how to generate 150 in-bound sales calls a week to your location.

Marketing. Every business, every Industry that wants to survive and grow needs good marketing. Marketing that doesn’t cost, marketing that pays.

Good, solid ROI (Return On Investment) Marketing.

A key part of what we do at MHMSM.com is marketing. Yes, we have become the premier news source in the Factory-built housing Industry. Part of that was achieved through marketing, as well as having great content and, of course, the most news and feature articles found on any single site online.

I was asked by George Allen to give a presentation in Phoenix on Marketing, Media and Manufactured Housing. The title GFA suggested for the talk is How to Get 150 Calls a Week on Site!

• Those 150 calls a week refer to inbound sales calls FROM CUSTOMERS LOOKING FOR YOU!
• Those 150 calls a week refer to prospects in the market LOOKING FOR WHAT YOU HAVE TO OFFER!
• Those 150 calls a week could TRANSFORM any Manufactured Housing Land Lease Community location struggling with vacancies INTO A FULL LOCATION with a waiting list!
• Those 150 calls inbound sales calls a week could be a modular or HUD Code Manufactured Housing RETAILER’S DREAM!
• Those 150 calls are not theory. THEY ARE TAKING PLACE RIGHT NOW, TODAY for one of our clients. Not in boom time, but during this low ebb of the Industry.

It has long been my belief that Manufactured Housing – or most any aspect of factory home building – should never suffer due to the general ups and downs of the economy. We should be – and can be – the preeminent form of housing. The first choice instead of the last choice.

If you are looking for marketing solutions, sales solutions, a turn-around for one or more community or retail locations, business expansions or other Industry related business challenges, please give me a call. If you are looking for good PR for your company, please call.

Why should you? Please check out my LinkedIn Profile, for some of the currently 29 recommendations among my 469 connections: http://www.linkedin.com/in/latonykovach

Just two words.

GET RESULTS.

I should hasten to add, that all ‘results’ are a team effort. We are not alone. We work as a team, and that is how we would approach working with any firm or organization in the manufactured housing field. Team work that Gets Results. Specialists for many different needs. Solutions for your real world problems. Great ROI, good work doesn’t ‘cost;’ it pays.

Part III.

Getting Positive PR: Media Relations and Manufactured Housing

What do the Chicago Sun-Times, the Dallas Morning News, Nashville’s The Tennessean and about a dozen other publications from coast to coast have in common?

Answer: They have all featured news stories on their sites this year that have a favorable message for manufactured housing.

Answer: These favorable messages were all generated by MHMSM.com staff, notably our INdustry in Focus Reporter Eric Miller – or myself.

http://topics.dallasnews.com/article/0aaJfyqbtfgnQ

http://envirolib.org/news/support-urged-for-bill-aimed-at-replacing-of-older-manufactured-homes-24-7-pressrelease/

http://www.mhmarketingsalesmanagement.com/blogs/industryvoices/study-suggests-cities-and-towns-should-accept-new-manufactured-housing-communities/

Research Finds Manufactured Home Community Residents Under No Greater Threat of Crime

As you know, Manufactured Housing has all too often taken it on the chin from the mainstream media publications. Part of our goal at MHMSM.com is to share favorable news about Manufactured Housing and related issues.

As a media outlet ourselves, we can influence media.

Over time, this can have a favorable benefit for you and your business.

Should you desire favorable PR or marketing for your organization, please give me a call:
847-730-3692 or cell 832-689-1729.

Should you want to see what others say, please go to my LinkedIn Profile

Where you can see 29 recommendations of my work.

Warning: This blog post is not for the faint of heart or for those who think they can skim and get it all.  As an Industry Pro, directly or indirectly, this impacts YOU every day.

In a recent conversation with George F. Allen, I mentioned a discussion topic that Finmark’s Dick Ernst and I shared in preparation for our INdustry in Focus interview with Dick about manufactured home financing.  During that conversation, Mr. Ernst used the memorable phrase, “elephants in the room.” Specifically, we spoke about the challenges that lenders and home owners face when resale time comes.  “That’s the elephant in the room, Tony, that we as an industry need to deal with.” was the gist of Dick’s revealing statement.

The president of a manufactured housing finance company and the senior VP of yet another lender I’ve recently spoken with concur.

As George and I spoke, he commented on the customer or secondary (resale) market side with, “I was going to say, you’re right, that is the second elephant in the room.  This is an important topic, Tony. Maybe you should consider doing a Linkedin or blog post on it.” GFA being correct, I agreed.  As a result of that advice, a lively Linkedin MHC group discussion has begun…

So here I am suggesting to an Industry pro like yourself that we need to take a long, hard look at how to change this avoidable and troubling dynamic.  We need a process that allows an MH customer or finance company to exit at least as easily from their manufactured home asset as someone might from a conventional stick built house.

Why?

Because as long as we have elephants in the room, those pachyderms will be pushing out of the room customers, investors, lenders, public officials and a whole host of opportunities that we otherwise would deserve!  We can be:

• Selling more homes.
• Have happier manufactured home owners.
• Get more MH referrals.
• Enjoy more, better, happier…these are some of the rewards for solving the ‘problem pachyderms’ issue!

The bottom line is you can make more money long term, and so can the Industry, once we face and fix this plaguing problem.

Yet some – perhaps many – who will read this may knee jerk in opposition.  Why?

Let’s take a look…

VMF and 21st stated in the MHI Summer Meeting with FHA officials that when they take in a repossession, they wholesale that repo 65% of the time.  Other lenders in the room were nodding or made sounds that indicated that Berkshire Hathaway affiliates are not alone.  Now they may make this ‘work,’ but at what cost? Higher rates on manufactured homes than conventional housing are certainly among the sad consequences.

Less lending availability is another avoidable consequence!

Why has the FHA set such a high bar on finance companies who will be doing FHA Title I loans?  Because of past industry losses in financing.

Why do the GSEs hesitate to lend on MH chattel, in spite of the Duty to Serve mandate from Congress?  Because of past industry losses in financing.

Why are so many MH communities doing in house financing?  To the tune of billions of dollars?  Because it is almost a necessity, due to past industry losses in financing.

Why does Ken Rishel and company teach community operators and retailers how to raise the capital and do legally compliant ‘captive chattel financing?’  Because there aren’t enough MH chattel lenders available without doing it in house.  I’d bet that Ken would also ad that because doing it in house is a profit center of it’s own…when it is done right!

Now, please don’t shoot the messenger for reporting what you already know.

The only way to deal with the elephant in the room that no one wants to touch is to look closely at the various dynamics and then do what it takes. If we as a manufactured housing professional, company or as an Industry want to climb out of the Industry’s financing limiting doldrums, we better deal with the issues head on!

When a MHIndustry lender is wholesaling off repo inventory 2 times out of 3, that means that some out there are ‘getting a good deal.’  But the ‘good deal’ to a community, retailer or wholesaler means a lender took a beating.  When the lender takes enough beatings, they may say, ENOUGH!  That leads to the skittish behavior of FHA and The GSEs on this subject.  Those losses on repos cause other financial institutions and potential lenders to look warily at the manufactured housing product, because Conseco/Greentree is not ancient history to them.

Now please don’t misread this.

For example, the government agencies have Congressional mandates.  They should serve manufactured housing as the law requires, period, end of story!  In my world and yours, if Congress passes a law, we obey. If you don’t like it, you work to change it. But if you and I simply fail to obey a law, then we get fined, prosecuted, jailed, or strung up.  I say, the GSEs and FHA should do as Congress mandated.  They should do so broadly, rapidly and effectively.   These agencies should find the solution to the elephants in the room issue as part of the implementation of the legislation that Congress created and the president signed into law.

This means that the FHA and the GSEs should find a way to make the programs sustainable and work long term.

We in the Industry, if we are smart, should help them.

That is what MHI and those Industry leaders were trying to do in DC a few weeks ago, trying to shed light with Vicki Bott and other FHA and HUD officials on ways to make their program work.  Because a sustainable program is a win for everyone!

But let’s go back to those who can’t resist doing that wholesale deal on a repo.

And let’s go back to those lenders who shed their inventory at bargain basement rates.

Knowingly or not, each are contributing to the long term history in the financing/resale realm that has plagued our Industry, those elephants in the room.

Before writing this, I also spoke with a wholesale repo buyer, who effectively said:

“If they are going to sell me a home at these prices, why would I say no?”

I admit, that has to be tempting.  But a number of points come up in analyzing this long term, and you can think of them as well or better than I.

Now, please note, the wholesale buyer has learned how to move that inventory.  So why can’t the lender do the same?

I spoke with a long term MH lender, who effectively said:

“I have x homes and x millions tied up in inventory in just the x market.  The regulators are checking our files right now.  We want to continue to do MH lending.  But every time a ‘park’ (his term) bills me for lot rent, every time a park fails to help resell a home at retail, every time a home sits and sits instead of resells for a good price, every time I have to move a home in order to get it sold, it puts that much more pressure on our manufactured home financing program.”

Do we need to lose another lender(s) before we learn our lesson?  Hello?  If we are the ‘survivors’ of the Great MH Lending Meltdown that started around the turn of the century, who needs coffee?

Now all of these are actual or paraphrased comments from real people who didn’t ask to be named for obvious reasons, and each one is revealing.

To the future potential of the MHIndustry, these viewpoints and their implications are chilling.

Let’s imagine for a moment, that FHFA, in the aftermath of the tidal wave of comments they received last month, relented.  Let’s say they put a program in place that really met the intent of Congress in the Duty to Serve legislative provisions.  Let’s further imagine that FHA modified their threshold for Title I lenders, lowering the amount and making more capital thereby available to the Industry.

Then let’s image that nothing has changed about the resale/remarketing issue.  What would eventually happen?

They’d take their lumps for a while, then go back to Congress and understandably say, “we told you so!”

So now ladies and gents, we better tackle this once and for all.  We should not only work on Congress and these agencies to get the financing we need, but also work with them to make sure that repos don’t result in big losses.

That is just long term, common sense.

That said, one gent told me recently that in our Industry long term may be 10 minutes to 10 days.  “I’ve got the end of the month coming up, and have to get this deal done!”  Oye, vez.  We have to think 10 weeks, 10 months and 10 years ahead too.  A dozen years have gone by since we sank from nearly 373,000 shipments to under 50,000 last year.  We are inching up this year, and that is good.  It reminds us that we can grow again.  But if we don’t buckle down and do ALL that it takes, we will have a shorter and shallower bubble than we had in the roaring 90s.

Or, we can have the best years the Industry has ever had.  The choice is in our hands.

Let us shift gears and briefly look at an example that may lead to a solution.

Back in the late 80s (and again in the early 2000s), I was in a leadership role of  a successful resale programs for various manufactured housing lenders.  We:

• set up a structured approach that reduced their losses, accelerated their resale time line and got assets back on the books at prices that were close to new ‘repo fighter’ home prices then.
• There were legal and systemic limits that kept us from selling repos for even more, but I am here to say, we could have sold those homes for more money had the financing system allowed for it.
• We didn’t buy repos ourselves, meaning we didn’t compete against the lenders repos with our own inventory, as to me that seemed like a conflict of interest.
• Our team did repo sales for lenders, period!  We got paid commissions, and we earned a lot of those.  We also received got paid some spiffs and other incentives, all above board, that were part of our agreement.
• We looked at issues and we dealt with them in the best fashion possible to control costs for lenders and limit their losses.

It wasn’t perfect, but it worked a lot better for those MH lender clients than they had elsewhere in that state.  We know this because they said so, and backed it up by bringing us ever increasing levels of inventory, and then asked us to expand into different markets in other states.

That was then.  Maybe there are similar efforts out there now, but:

• where are they now?
• If they are out there, why are key MHIndustry lenders still wholesaling 65% of the time?
• If they aren’t out there, why aren’t MHIndustry lenders creating a program that works for all long term?

Ladies and gents, this isn’t rocket science. This is about discipline, solution orientation and will power.  Other industries face this issue and make it work.

We…

Can…

Too!

I don’t quote sources unless they wish or agree to be quoted or have spoken in public.  So  privately to me or via posted comments, I am hereby inviting industry members to comment on the elephants in the room.

Please share your experiences and viewpoints.  Please agree or disagree.

Heck, let’s have a debate here if you want to, that is what posted comments are for too.

We as MH professionals, companies and as an Industry have to move the resale/re-marketing subject ahead.

We don’t need endless meetings and another task force that later disbands, for whatever reasons.  I am not criticizing anyone, but I am challenging every stake holder to think this through and resolve it for the long term benefit of all involved.

Some MHCommunity operators do a good job at this.  If they can, others can too.

How do you solve a big problem?  You face it squarely and deal with it honestly.

How do you eat an elephant?  One proverbial bite at a time. # #

_________

End Note:

A few The Masthead blog posts ago, I touched on this topic lightly.  It was part of the broader subject of what are our Industry’s strengths and weaknesses are.  That post referenced how we could be doing 200,000 to 800,000+ new annual manufactured home shipments a year!  Not someday, right now. If you missed that prior post due to vacations or whatever, you might want to read or re-read it.

I was thinking back to the repo glut of the late 90′s and early 2000′s.

• Do we miss selling 372,000+ homes a year?
• Do we miss having full communities?
• Do we miss building new MHCs or fee simple developments?
• Do we want factories that are at or near capacity?
• Do we miss having more retailers?
• Do we miss more lenders, vendors…

Please read, or re-read this blog post linked below.  It outlines the path for MHIndustry  business growth today.

http://www.mhmarketingsalesmanagement.com/blogs/tonykovach/manufactured-housing-industry-growth-potential/ # #

_________

L.A. ‘Tony’ Kovach, MHM

Publisher, MH Marketer and The Masthead blogger

Manufactured Home Marketing Sales Management trade journal at www.MHMarketingSalesManagement.com aka www.MHMSM.com

tony@mhmsm.com

847-730-3692

The Honorable Congressman Joe Donnelly can certainly be described as a friend to the manufactured housing industry. As just some of the evidence for this, consider the following:

• Two months ago, Donnelly (D-IN), put forward the Manufactured Housing Week resolution in Congress:
• On June 2, 2010, Congressman Donnelly hosted the manufactured housing finance summit in Elkhart, IN. This lead to a productive FHA finance meeting during the recent MHI Summer meeting, extensively noted here and in our exclusive Dick Ernst MHIndustry finance Interview.
• More recently, Donnelly is working for legislation to make floor plan financing more readily available for manufactured home retailers, as reported by our MHMSM.com INdustry in Focus Reporter Eric Miller.

It is also a fact that Donnelly has also supported Obama Administration initiatives, such as the massive health care bill that millions of Americans opposed, but was signed into law despite a strong and still growing opposition due to economic and other concerns.

So it is with some interest that we view Congressman Donnelly’s recently-launched TV ad, which touts his support of legislation strengthening U.S. Border security, and specifically distances himself from President Barack Obama and House Speaker Nancy Pelosi:

This later issue doesn’t impact manufactured, modular or prefab housing directly. But we are all Americans, and what happens to our great nation impacts our Industry as well. Immigration, economic, regulatory and financing policies impact us as individuals, and thus our businesses and our Industry.

Against this backdrop, MHI PAC and Industry members are gearing up for this upcoming mid-term election campaign season.

We need to carefully consider the records, votes, positions and actions of Congressman, Senators and others as it relates to our Industry. We need to consider what the records of Industry friendly Congressman, such as Joe Donnelly, and consider carefully their opponents and who we will support with our energy, time and treasure.

The manufactured housing Industry is facing a series of defining moments. Our new MHMSM.com issue goes online this week. In this August issue, there is an article that will deal with that potential. That article and an upcoming The Masthead blog post that will follow it, reveals:

• We have the opportunity to grow and earn more than ever before in our Industry’s history.
• We could grow our Industry’s new home sales 400% to 1600% in 12 months, by following common sense and doable steps.
• We have to be willing to do what it takes to tap that potential, to improve and grow like never before!

Sound business and political actions are needed to achieve our potential. I know how challenging it can be to keep up with all that is going on, but we have no choice if we desire to move ahead. Tune out or turn down distracting background noise, get and stay focused. It is the only way to succeed.

Day by day, let us stay informed and then do what it takes to achieve the potential our great Industry offers each committed member! Some will fail. Don’t be among them. Do what it takes, and you will soon see a day that today you might only dream about. # #

L.A. ‘Tony’ Kovach, MHM – editor and The Masthead blogger at
Manufactured Home Marketing Sales Management online trade journal at
www.MHMarketingSalesManagement.com aka www.MHMSM.com
tony@mhmsm.com
847-730-3692