Teaching An Old Dog New Tricks

May 28th, 2020

Blog # 587 @ 29 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educataemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Pretty straightforward content today, so no explanations offered. Enjoy.

I.

Teaching An Old Dog New Tricks

Making an assumption here. Most blog floggers (‘readers’) of this weekly trade news media, are now aware of the monthly ‘MHShipment Volume (+) Stock Market Report’ I research and compile for EducateMHC. It’s distributed as a Resource Document supplement in every PRIME edition of The Allen Confidential! business newsletter. But what is probably not realized, is the degree and nature, range and specificity of the statistical research required for each monthly report.

Besides ‘crunching’ official HUD-Code manufactured housing shipment totals supplied by the Institute for Building Technology and Safety (‘IBTS’), we follow eight public companies (four HUD-Code housing manufacturers & four land lease community property portfolios), relative to their stock prices and market cap values; plus, we calculate a ‘Manufactured Housing & Land Lease Community – Composite Stock Index’ (‘CSI’). All that’s newsy and helpful enough; but ‘the fun begins’ when listening-in on quarterly earnings calls hosted by these pubic firms.

Here’s what we learned – and didn’t learn, during the last week or two, from a few calls:

• At least one HUD-Code housing manufacturer observes how new home shipment volume, going directly into land lease communities, has already returned to the 40 percent level enjoyed before COVID-19.
• Another manufacturer, while experiencing lower sales traffic thru their retail sales centers (a.k.a. ‘company stores’), see higher conversion percentages; i.e. ‘Fewer people visiting, more people buying!’

• And in some cases, retail sales centers located in close proximity to certain major SMAs, or urban centers, are experiencing ‘city folk’ now buying manufactured homes to site in rural and suburban environs.

• Finally; it was surprising (but discouraging), there’s been NO mention whatsoever of CrossMod™ home sales and placements, in any of these earning calls. Wonder why?

It’s also been interesting to observe how one or another HUD-Code manufacturer schedules earning calls as early as 8AM in the morning. And how another firm distributes its’ Form 8-K SEC filing report the same day as its’ earnings call, or so it appears. Go figure.

Point? If you’re not reading EducateMHC’s monthly ‘MHShipment Volume (+) Stock Market Report’, you should be – especially if a Wall Street investor or analyst, HUD-Code housing manufacturer, and or land lease community portfolio owner/operator. Never before, in the history of manufactured housing and land lease communities, have we tracked business and investment performance in this manner! To avail yourself of this new, continuing and illuminating opportunity, visit www.educatemhc.com and subscribe to The Allen Confidential! at the PRIME level!

Furthermore; whether in aforementioned ‘MHShipment Volume (+) Stock Market Report’ or The Allen Confidential! business newsletter, know they are your most accurate, timely, and helpful sources of MH & LLCommunity-related news! How so? Two examples quoted from April/May 2020 issue of NREI magazine:

• Of 17 commercial real estate investment categories, “Hotels, casinos, student housing assets and malls saw the largest jumps in cap rates from 31 January thru 16 March.” P.4. Manufactured housing/RVs (i.e. ‘communities’), along with ‘towers’ & ‘data centers’ experienced the smallest incremental moves in cap rates, with land lease communities at 93 basis points – compared to hotels @ 403 basis points. Did someone say our ‘communities’ are recession-proof?

• And this inside look: “Most of the equity groups have hit the pause button until they can evaluate how the virus will impact the job market long term. Jobs equal renters – it’s that simple.”P.12 And with landlord/tenant legislation in the air, another good and timely reason to be cautious about further property consolidation.

And this from a recent Press Release: REIT, UMH Properties, will conduct its’ annual meeting, 24 June, in virtual fashion! Seems more and more companies are doing so these days. There’s even talk about the highly popular and heavily attended SECO Conference, in September in Atlanta, being done conducted in like fashion, but no final decision yet. However, the 29th annual Networking Roundtable is on schedule for 2-4 September, in Nashville, TN. For information, visit www.educatemhc.com Speaking of meetings, we’ve just learned the 2nd annual Innovative Housing Showcase, on the National Mall in Washington, DC., has been postponed from this fall to sometime during year 2021.

Furthermore, here at EducateMHC we routinely go more afield, than other business news-reporting media, to glean information you can use. Here’s a news tidbit from The Epoch Times, 21-27 May 2020: “According to a study, 68 percent of people who are eligible for unemployment benefits receive compensation that exceeds their prior wage.” So, why go back to work? – they say.

II.

Response to
‘This Patriot
Practices Discerning News Intake & Citizen Punditry’
‘How ‘bout You?’

Unsolicited input from a blog flogger (reader) in California. “George, this will not surprise; but rather confirm, what you know about me. I agree with what is penned here. Do not abide much with TV news except FOX; and stick with my small town newspaper only. I began, after my wife died ten years ago, participating in local government, and have found local small community and county governments – councils and commissions, also do not participate as the ‘national media’ would like us to believe. We stick to government being simple (nothing is really simple) and focused upon protection from evil and infrastructure problems, so we can use our God-given free will to survive, worship, succeed, and find individual happiness!” NB

And this: “I’m with you!” CC

***
George Allen, CPM, MHM

This Patriot

May 24th, 2020

Blog # 586 @ 24 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: No introduction needed today. Parts I & II are self-explanatory.

I.

This Patriot

Practices Discerning News Intake & Citizen Punditry

How ‘bout You?

These are tumultuous partisan political and coronavirus times for everyone! Here’s how one individual addresses these politically-combative and life-threatening matters, from and within respective frames of reference.

I no longer read The New York Times or the Washington Post. Today I glean and model my points of view from print news published in two local daily – urban and suburban newspapers, and The Epoch Times – a weekly publication founded in year 2000, espousing truth and tradition, akin to The Christian Science Monitor.*1 News magazines? Over the decades I’ve read them all! Today I read one: World magazine*2. And after decades of frustratingly pointless TV channel surfing, I reservedly rely on FOX News, to avoid what I consider progressive opinions expressed on TV and cable channel networks. And radio? Give me Limbaugh, Katz, and Beck (author of that ‘must read’ novel The Overton Window) anytime, instead of what I used to enjoy on NPR.
Why? Having intellectually processed 40+ years of business acumen and people experience to date, I consider myself an educated and discerning ‘real news’ aficionado, with little time and no patience for fact verification backtracking, and little tolerance or stomach for liberal-slanted faux journalism, unfortunately pervasive throughout today’s print and online secular press.

So, besides being careful what I read, and from where it originates, what do I do to make my views known? I engage in citizen punditry (‘expression of learned views’) by routinely penning Letters to Editors of local newspapers; as well as carefully worded response commentaries emailed to weekly/monthly news magazines, specifically their columnists. Seriously. You should try it sometime soon, again and again.

But that’s not all there is to citizen punditry. Via methods just described, social media and more, conscientious U.S. citizens are increasingly making their views known relative to subversionary activities by ‘deep staters’, the culture war waged in this country today, and whatever other matters they feel weaken or threaten our democracy and society.

Frankly, I’d like to know what you think of discerning news intake and citizen punditry, as described here. Better yet; get busy crafting and sharing as a citizen pundit, your perspective and peerspectives. Do so via gfa7156@aol.com

End Notes.
1. The Epoch Times. Readepoch.com
2. World. Wng.org

II.

‘Sell In May & Go Away!’

Traditional stock market investment strategy for month of May pre-2020

Not this year! Recovering from the quarantine and national economic toll of coronavirus requires ALL of US to do our part in the healing process unfolding during May, June, July and August. As 75 year olds, Carolyn and I remain well-quarantined, thanks to the grocery-shopping of our daughter Susan, and outdoor chores assistance of son Adam. And we remain as engaged as possible; me, writing to you weekly, monthly (The Allen Confidential!), and via MHInsider magazine (‘Allen Legacy’ column). Carolyn is a longtime CASA (Court-appointed special advocate for children) volunteer, and ‘works her case load’ daily by phone and PC.

So, stay engaged and do your part to ensure our great nation returns to the prosperity we’ve temporarily left behind during the coronavirus pandemic! Next week I’ll share some insights gleaned from recent ‘earnings calls’ by some of our eight public MH/LLCommunity companies active in the U.S. today! GFA

Land Lease Community = Lifestyle of Choice During Pandemic?

May 15th, 2020

Blog # 585 @ 15 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Well, here’s your weekly update relative to the coronavirus hiatus; a look at what is amounting to a ‘lost opportunity’ for the manufactured housing industry – and ‘what to do about it’. Also, an announcement of a new website designed to help homeowners and renters to survive the COVID-19.

I.

Land Lease Community = Lifestyle of Choice During Pandemic?

HOW SO?

Just as there’re more births occurring at home these days than in hospitals – due to fear of coronavirus infection, and fathers prohibited from being present for the event, land lease community homeowners/site lessees are demonstrating support for their lifestyle, by paying March and April rent on time and in full. And May’s rent collection appears, to date, to be off to a near equally strong start – according to recent ‘earnings calls’ by public owners/operators of land lease community portfolios. And this from the National Multi Housing Council:

“Data from the National Multifamily Housing Council shows 80.2% of tenants had paid at least some of their rent by May 6, compared with 78% during the same time period in April. However, rent payments were down from May 2019, and some activists say they will continue with plans for rent strikes to put pressure on lawmakers.”

Hmm. And why might land lease communities be outperforming other types of multifamily rental properties? Well, unlike other forms of multifamily rental (and condo) housing – thinking conventional and subsidized apartment communities here, the manufactured housing owner/site lessee, in a land lease community, is living in a self-contained structure, not sharing walls and risking personal exposure in hallways with other tenants or residents. In other words, they’re more in control of their living environment (i.e. easy to social distance 24 hours per day), as to who comes and goes than would otherwise be the case. This is also the likely reason the investment value of this unique, income-producing property type has remained strong of late.

On a related matter, a recent article in Shelterforce magazine (Think tenant social activists), and titled ‘What Would It Mean to Cancel Rent?’ raises this related issue:

“…decommodified housing in the form of co-ops, land trusts, and nonprofit- owned housing already exist – housing a couple million households – and they all rely on rent payments of some sort for their ongoing operations. Calls to suspend or cancel rent payments across the board have made man managers of this type of housing uncomfortable. On the one hand, not having people on the street or struggling under additional rent burden is central to their mission, and none of them believe rent should be demanded right now from people who can’t pay.” Thinking of resident-owned communities or ROCs here….

So, where does all this leave us today? Depends on what one reads, sees, and hears in trade literature, personal experience, and on webinars, e.g. following out of context webinar observations.

• The Carlyle Group in Washington, DC. an owner/operator of a land lease community portfolio, anticipates more of a U-shaped economic recovery curve, vs. V-shaped one, during next few months.

• Warren Buffett & Sam Zell haven’t “…found anything to buy since the onset of the pandemic.” Lack of deals, due to a large spread, between seller expectations and buyer caution.

• While REIT shares “…are down almost 30% since late February” (Confirmed via EducateMHC’s monthly MH ‘Shipment Volume (+) Stock Market’ Report), rents are holding up well – as just pointed out. To access subject report, visit www.educatemhc.com

Do you have observations and opinions, on this complex and evolving topic that you’d like to share here and or in The Allen Confidential! Business newsletter? Simply email or mail your manuscript to me via gfa7156@aaol.com & GFA c/o Box # 47024, Indianapolis, IN. 46147.

II.

Essence of Manufactured Housing’s Lack of Regulatory Reform Progress, Expressed in One Paragraph!

The following paragraph (lightly edited & only slightly enhanced. GFA) was the final one of 14 comprising MHARR’s typically wordy manufactured housing update, dated May 2020, and titled:

‘A RED FLAG WARNING FOR THE INDUSTRY AND CONSUMERS’.

“…the industry has wasted more than three years of President Trump’s first term and what is, without question, the most promising opportunity it has ever had, to achieve real and lasting regulatory reform within the HUD manufactured housing program. The current ‘slow-roll’ of the regulatory reform process by HUD, its contractors, and other allies, should be a ‘red flag’, a warning to the industry that this opportunity without immediate, targeted, aggressive action, could be lost! There is sufficient time, for now, to change course and move this process forward, but it must be a priority for senior-level decision makers at HUD, within the industry itself (including the Manufactured Housing Institute – MHI), for consumers of affordable housing, and within OMHP (including Administrator Teresa Payne). Put differently, the ‘crunch-time’ for significant action to help both the HUD Code industry and consumers of affordable housing is right now!”

As everyone reading this blog well knows, MHARR headquartered in downtown Washington, DC. has long been regarded, as it still is, the Watchdog of the Manufactured Housing Industry. And the above paragraph is fairly standard fare coming from the pen of Mark Weiss. With that said, however, he cannot pull off regulatory reform alone, just as MHI and NAMHCO (North American Manufactured Housing Communities Owners), as industry and realty asset class advocates cannot. What’s missing? In my opinion, based on 40+ years of observation and experience, as a business owner and land lease community owner/operator, constant cooperation and lobbying among all three national trade entities, is where such timely and vital efforts must begin and concentrate.

III.

CFPB, FHFA*, & HUD Launch Joint Mortgage & Housing Website, during COVID-19

This website is designed to ensure homeowners and renters have the most up to date and accurate housing assistance information possible, during these turbulent times. Interested parties should visit cfpb.gov/housing

End Note. FHFA includes the two GSEs (Fannie Mae & Freddie Mac) as well as the Federal Home Loan Banks.

***

George Allen, CPM, MHM
EducateMHC

Postscript.

If you haven’t heard or read yet, EducateMHC’s monthly MH ‘Shipment Volume (+) Stock Market’ Report brings something to the manufactured housing industry and land lease community realty asset class, we’ve not had, ever before – during our 75 year history! And that is unadulterated new MH shipment volume totals tallied by the Institute for Building Technology & Safety (‘IBTS’) – HUD’s perennial contractor for this very purpose; AND, the stock market performance of four public market HUD-Code housing manufacturers and as many land lease community portfolio owners/operators! If this new cache of timely and useful information is of interest to you, and it certainly should be, subscribe to The Allen Confidential! business newsletter as a PRIME subscriber! Do so today: www.educatemhc.com

CORONAVIRUS X 6

May 8th, 2020

Blog # 584 @ 8 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.co, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: On a personal note. Friday, 6 May is the 55th day Carolyn and I’ve been self-quarantined together at home. Two days later, we’ll celebrate 57 years we’ve been together since meeting poolside at college, on 9/10/1963. And in a couple weeks we’ll turn 57 around, as I celebrate my 75th birthday! What’s all this have to do with the coronavirus hiatus? Nothing.

However, I think you’ll agree. After 75 years of history, HUD-Code manufactured housing and land lease communities, where eight public companies are concerned, finally have a tracking report in place for tallying new housing shipments and stock performance as well. Enjoy!

I.

CORONAVIRUS X 6

OK, be honest. Are YOU as ‘cornfused’ as I am about ‘how & what’ to call or describe the coronavirus illness that’s changed our lives these past (now) several months? Well, decided to start making a list of name variants as I came across them in the print and online press. Here’re seven documented to date.

Coronavirus

Coronavirus disease 2019; abbreviated as COVID-19 (all in capital letters)

Novel coronavirus (per Chinese Communist Party or CCP)

Wuhan virus (named after Chinese city from whence it came)

CCP virus. Moniker espoused by THE EPOCH TIMES newspaper, directly blaming Chinese Communist Party (‘CCP’) for outbreak of the disease.

Chinese virus, per President Donald Trump. And why not? Think Legionnaire’s Disease.

Do you know of additional variants? If so, please let us know via gfa7156@aol.com

A clue as to how many more Chinese citizens fell victim to the coronavirus than what the CCP has claimed:

Headline: ’21 Million Fewer Cellphone Users in China May Suggest a High CCP Virus Death Toll’ – as cellphones are used (required) by everyone in China – to display colored (green is good) health codes necessary for personal travel.

And this: “Hubei Province (Wuhan city) has used 40 mobile cremators, each capable of burning five tons of medical waste and bodies a day, since February 16th.” P.19

Both texts from The Epoch Times weekly newspaper. In my opinion, a better and far more reliable investigative journalism ‘read’ than either The New York Times or The Washington Post.

II.

MHShipment Volume (+) Stock Market Report

Previously referred to as EducateMHC’s

MHShipment ‘#s&$s’ Report, March 2020 (+) 5/4/20 ‘MH Mfr/REIT Market Data’

Here we implement three changes to what’s already become a seminal monthly data report serving the manufactured housing industry and land lease community realty asset class.

First, a simpler, more descriptive title for said document. ‘MHShipment Volume (+) Stock Market Report’ describes two production and investment performance platforms of vital and ongoing interest to the industry & property type.

Next. We’ve expanded coverage to include the heretofore ‘Big Three C’ (i.e. Clayton, Cavco, Skyline/Champion) firms, plus one (i.e. Legacy), HUD-Code housing manufacturers. And now four – not just three, land lease community portfolio owners/operators, three of which are real estate investment trusts (‘REITs’), i.e. ELS, SUI, UMH, and newcomer MHPC.

Finally. Effective with this March 2020 (+) 5/4/20 edition of the ‘MHShipment Volume (+) Stock Market Report’, distribution is restricted to PRIME subscribers to The Allen Confidential! business newsletter, available only from EducateMHC (www.educatemhc.com)

In paragraphs following here, I’ll share a few salient details from this dual monthly report; but for all the useful details, again, you’ll have to subscribe to the PRIME edition of TAC!

Meet MHPC or Manufactured Housing Properties, Inc. The firm, founded during 2016, debuted in the 31st annual ALLEN REPORT (i.e. ‘Who’s Who Among Land Lease Community Portfolio Firms Located Throughout North America!) and was ranked # 88, after ‘going public’ during late 2019. The firm has its’ home office in Pineville, NC. And is headed by President Michael Anise.

MHShipments. MHARR summarizes performance best. “…HUD Code manufacturers produced 8,338 homes in March 2020, a 9.8% increase over the 7,590 new HUD Code homes produced during March 2019. Cumulative 2020 production now stands at 25,311 homes as compared with 22,569 homes produced over the same period in 2019, an increase of 13.2%.” Quoted from MHARR News Item dated 4 May 2020.

As you likely expect, stock prices for all eight firms dropped between March and April as the coronavirus hiatus exacted its’ health and economic tolls. The good news is everyone’s stock price rebounded, somewhat, between April and early May! Will be interesting to see what occurs as we move from May to June, reopening our national economy.

If you’ve never compared market cap (values) of HUD-Code housing manufacturers and land lease community portfolios, it makes for an interesting study. They too are included in this report. For now, however, let’s just say – excepting out Berkshire-Hathaway and MHPC , both outliers, remaining market cap values range from a low of $263 million to a high of $12 billion.

Finally. For the long term, we (EducateMHC) have created a composite stock index to calculate and publish monthly. During March it was 577; dropped to 357 during April, but now, in May, is up to 480. What to expect in June? Your guess is as good as mine.

Are you presently a subscriber, either BASIC or PRIME, to The Allen Confidential! ? If not, you should be. Why? Simple. No one else in North America, especially where land lease communities are concerned, routinely researches and publishes more apropos information than EducateMHC! You can be satisfied with just the ‘news gathering’ aspect of the newsletter, or pay extra and receive a minimum of a dozen Resource Documents each year – beginning with the 31 year run ALLEN REPORT in January of each new year! Visit www.educatemhc.com and upgrade to PRIME today! GFA

A Sobering & Timely Warning!

May 1st, 2020

Blog # 583 @ 1 May 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Prepare to be shocked – if you haven’t already heard and pondered statistics shared in Part I following. And Part II? Well, while not meant to be particularly humorous, there is indeed that overtone among the vignettes shared. Enjoy! GFA

I.

A Sobering & Timely Warning!

Carolyn and I have invested 50 days in self-quarantine, to avoid becoming victims of the coronavirus. So, when I read the following statistics relative to the Spanish Flu of 1917 & 1918, I was reluctant to believe the numbers. Then I checked them via USA Today Fact Check. Learned they are indeed accurate ranges, elevating them as a Sober and Timely Warning to All of Us about Our Future, especially during fall 2020!

First wave of the Spanish Flu, during year 1917, resulted in between three and five million deaths worldwide! Compare that to what’s estimated worldwide during year 2021.

Second wave of the Spanish Flu, during year 1918 and slightly beyond, resulted in between, get this, 20 – 50 million deaths! How can there be such an enormous spread between those two numbers?

In any event; as you – we, plan social and economic activities the next several months, be aware: We do not want a repeat, via coronavirus, of the tenfold increase in Spanish Flu deaths slightly more than 100 years ago!

II.

MH & LLCommunity Trivia

One of the unexpected benefits of being self-quarantined at home, these past 50 days, has been reacquainting myself with books (being read for a second or third time), dusty personal files (of past tales and collected material), as well as trivia from 40+ years as a manufactured housing aficionado and land lease community owner/operator. One archive of MH & LLCommunity trivia is dated year 2000. And much of it is worth sharing here.

Let’s begin with ‘an‘oldie but a goodie’. Why is the front entry door to most HUD-Code singlesection manufactured homes – to this day – on the right side of the home (from the perspective of being in said home and facing forward)? This is a vestigial design practice dating to when ‘mobile homes’ were indeed mobile; and, ingress/egress, for traffic safety reasons, was curbside, i.e. in and out of the right side of the home, away from the traffic lanes of the highway.

Just as REIT name MHC, Inc. evolved to ELS, Inc; ROC Communities (Think, now retired, Gary McDaniel) merged and became Chateau Properties, Inc. in 1997, before being acquired by Hometown America during year 2003. Do you know what the abbreviation ROC represented at that time? No, it wasn’t ‘resident-owned communities’, but rather River Oaks Communities! And how ‘bout REIT Sun Communities? That firm’s ‘early’ name? Some say Sundance Communities. Speaking of REITs, which one’s founder and son are trotter (as in horse racing) fans and use their favorite standard bred steed, The Porter Gray, in their corporate literature? UMH Properties!

Famous and infamous land lease community owners? Let’s see, a former Playboy magazine ‘bunny’ was – and is, as far as I know, still married to a Colorado-based portfolio owner/operator of communities. And at one point in time, late in the last century, a ‘mass murderer’ (i.e. by dint of killing several attorneys and their clients, before committing suicide) in San Francisco, effected his revenge, during a downtown rampage, because a ‘three community deal had gone bad’ a decade earlier. And we’ve had our share – at least two or three I know of – billionaires intimately involved in manufactured housing and communities. If you’d like names, and are willing to dig a bit to get them, read SWAN SONG and ‘Who Will Preserve Your Legacy?’ booklet – both available from EducateMHC.com

To this day, real estate brokers marketing land lease communities default to the 50 years defunct Woodall Rating System to inform property owners their asset quality is of one to five stars in rankikng. Since year 2001, informed owners/operators have used the ABClassification System, first proposed by the late Tom Horner, Jr., now refined and available in its’ contemporary format via EducateMHC.com

In which state can ‘swamp coolers’ (i.e. evaporators) be routinely seen atop HUD-Code manufactured homes? Colorado.

In which city and state is the prestigious RV/MH Hall of Fame, Library, and Museum located? Elkhart, Indiana.

In which state does the term ‘Chapter 723’ bespeak landlord tenant legislation? Florida.

In which land lease communities and states did ‘two story’ HUD-Code manufactured homes debut around the turn of the century? Lido Peninsula in Newport Beach, California & New Colony in Maryland. Why didn’t this novel idea flourish? Too much expensive and time-consuming ‘make ready’ work (e.g. assembly and siding) required on-site.

The Hitchball Club, a social organization for manufactured housing industry peers was formed during the 1970s in what state? Indiana

FGFK has been one of the more unusual monikers for a land lease community portfolio, over the years. What is the unabbreviated name of the company? Five Guys From Kansas.

What now deceased land lease community owner named his portfolio in honor of his first wife’s profession (i.e. Ballerina Properties); owned the only known source of flint in the U.S., if not the world; repeatedly attempted to popularize the term Park Homes as alternative to manufactured homes; and, was one of 19 community owners who met in Indianapolis during August 1993, to form what would later become MHI’s National Communities Council division? The late Ron Richardson of Oklahoma and Nevada.

Which John Grisham novel begins in a land lease community? The Client.

In the U.S. we refer to PITI, in real estate transaction circles, as principle, interest, taxes and insurance, when calculating monthly mortgage payments. In Canada, however, they refer to a similar combination of factors as being PITH. What does the H represent? Heating expense, as it’s more an expense factor to contend with there, than insurance premiums.

Name of a bona fide musical set in a land lease community? Premiered in Chicago during early 2001. Name? Lust in Rust!

Name of a country singer duo specializing in land lease community-oriented tunes since mid-1990s? Trailer Park Troubadours.

Ever hear of the large land lease community, located across a major highway from an active USAF base (i.e. at the time, home to Air Force One, the president’s airplane) that was forcibly closed, via eminent domain, out of concern a terrorist might step out on his porch, with a shoulder-fired ground-to-air missile, and shoot down said plane? This occurred in central Indiana, north of Kokomo, two decades or more ago.

Yes, there’s more, much more, we can share with you in the coming weeks. But for now, enjoy these gems. Do you have some trivia to share? Send to gfa7156@aol.com

For that matter, if you enjoy reading history-laced stories from our industry and realty asset class, you should be reading the Allen Legacy column in the very back of every issue of MHInsider magazine. To subscribe, reach out to Patrick Revere via Patrick@mhvillage.com

George Allen, CPM, MHM
EducateMHC

Land Lease Community Coronavirus Update

April 26th, 2020

Blog # 582 @ April 26, 2020; Copyright 2020. Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: To promote HUD-Code manufactured housing & land lease communities as U.S. #1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: A response to blog posting # 581 (last week): “George. A good column. I was a kid in those (Vietnam War) days, but remember them well. Healing and forgiveness is still needed.” Mike
I. Land Lease Community Coronavirus Update. Good rent collection so far, but watch…
II. Renters’ Insurance. Once a popular offering, soon to reappear at Roundtable, etc.…
III. EducateMHC’s MHShipment ‘#s&$s’ Report (+) REIT & MHStock Market Data for all…
There will be only one national MHShow this year: the 29th annual Networking Roundtable, 2-4 September, in Nashville, TN. For information and to register, visit www.educatemhc.com

I.

Land Lease Community Coronavirus Update

Here’s What I Hear & Read From Around the U.S.

First off, it’s not easy getting useful news these days about land lease community operations. We average more than 100 emails (+ spam) per day, here at EducateMHC, and the majority of these have to do with community marketing, sales and operations. Today however, still the same 100 emails per day volume, but now 75 percent have to do with various ‘takes’ on the coronavirus pandemic re health advice, economic impact, and ‘flattening the curve’. Here’re a couple gems mined this past week:

• Rental homesite rent collection during the month of April? Seems to have been better than most owners/operators expected, coming in on either side of 85% efficiency; a.k.a. 85 percent economic occupancy. Not bad at all. One REIT boasted 94 percent during March, and 91 percent during April! Now however, everyone is looking to May, and what to expect three months into the pandemic – and the operative word is not ‘optimistic’. Will keep you informed as to what evolves.

• This from one of our larger portfolio owners/operators. “Among our 20,000 rental homesites, we’ve had eight residents come down with COVID-19, only one died. And one of our managers and a maintenance man, at one of our land lease communities, have come down with the virus. At our home office, we’re working a split shift (7-Noon & 12:30-5:30PM), so we don’t have more than ten employees together at one time.”

• While Congress was crafting CARES legislation, ‘one of our own’, a community owner/operator proposed “Leveraging the Section 8 infrastructure…to accomplish our collective goal of helping renters, landlords and banks.” How so? “Section 8 could be quickly engaged to deliver payments directly to landlords on behalf of residents in need of assistance due to the economic impact of the pandemic.” While there’s more to this solution than described here, it’s now moot as Disaster Assistance and PPP loans are now in place. Thanks to Chad Graves (ID) for sharing this suggestion.

Wish I could tell you more, and maybe we will next week. How ‘bout you? Any unique experiences dealing with the coronavirus hiatus within your firm and or among your land lease communities? If so, let me know via gfa7156@aol.com

II.

Renters’ Insurance

This has long been a property management topic known more for its’ ‘fits & starts’ than substance. At one point in time, it was an insurance product line offered by American Modern Insurance. Today, Assurant Insurance is reintroducing this means of adding tenant (i.e. homeowner/site lessee or resident) liability coverage, giving them legal defense and indemnity, usually with a $50K limit – or more, on a case by case basis; should they be accused of negligence that lead to damage to other’s property or bodily injury. The policy also covers damage caused by the resident to the community’s property (e.g. rental home). And the program covers the resident’s contents and additional living expense if they have to move out of the home, i.e. $15K in contents & $50K in liability, costs approximately $10 – 20/month or $180/year.

Keys to success of this program include 1) the land lease community must have a liability requirement in their lease, and 2) the community needs to bill the insurance with the rent to ensure the coverage is not cancelled by the resident. And there’s a requirement for licensure only if community owner/operator desires to receive commissions. For more information on this Assurant program, before the Networking Roundtable – where it will be presented and discussed in detail, contact John Loucks via (248) 808-3089 or john.loucks@assurant.com

III.

EducateMHC’s MHShipment ‘#s & $s’
Report (+) REIT & MHStock Market Data!

By now, you likely realize this longstanding (first half), and recently (two months past) enlarged compendium of HUD-Code manufactured housing shipment & public market $ information – including real estate investment trust (‘REIT’) news, is now an integral part of the PRIME edition of The Allen Confidential! Business newsletter!

If you don’t realize this, there’s still time for you to subscribe – or increase the value of your subscription to PRIME status, before the May 2020 issue is distributed digitally! Just visit www.educatemhc.com to do so.

Bottom line? Only EducateMHC provides you a monthly newsletter covering land lease communities and manufactured housing. And with the PRIME editions, subscribers also receive at least one Resource Document each month (e.g. the 31st annual ALLEN REPORT this past January), and now, the MHShipment ‘#s & $s’ Report (+) REIT & MHStock Market Data compendium! That’s why HUD-Code housing manufacturers and property portfolio executives subscribe. How ‘bout you?

By the way, the ‘$ report’ I’m working on, for distribution in early May, will likely have a few, if not all, the following features – and more, included:

• Depression, Recession & Lockdown. While the U.S. has endured 47 depressions/recessions dating back to the Articles of Confederation, the three most infamous are, The Great Depression of 1929-1933; Recession of 2007 & 2008; and, The Great Lockdown (2020). Now you know.

• Have any idea the percentage drop in retail sales, manufacturing output, and single family housing starts so far during this Lockdown? Read the ‘#s & $s’ Report in May!

• And how ‘bout business closure percentages? For example: hotels @ 90 percent. What about arts/entertainment, sports/recreation, retail/wholesale; and, restaurants?

There’s much happening these days. We owe it to ourselves, our employees, to stay abreast of the economic and health-related news pursuant to the coronavirus pandemic. We’re doing our best to help to this end; so please do your part, and like the motto at the beginning of this blog posting: ‘U Support US & WE Serve U!’

***

George Allen, CPM, MHM
EducateMHC

World War III Coronavirus Battlefield Report A Warning to Politicians

April 18th, 2020

Blog # 581 @ April 18, 2020; Copyright 2020. www.educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE; 9877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: Promote HUD-Code manufactured housing & land lease communities as U.S. main source of affordable attainable housing! Attend an MHM class!

INTRODUCTION: Never before have I enjoyed the opportunity to watch history unfold before my eyes, as Covid-19 has. Well, that’s not really true. Some of the conflict I describe in Part I of this blog unfolded in similar manner. But I digress. I wish every stridently partisan politician could be forced to read Part I, for this truism, ‘People who don’t learn from history are often doomed to repeat it!’ And Part II? A description of marketing and home sales tools driving the ‘two decades long paradigm shift’ (2000-2020) away from independent (street) MHRetailers to in-land lease community sales and seller-financing of transactions. Part III = ‘Calling all writers!’ This is at best, a ‘once every two or three years opportunity’. So, if interested, sign up now!

I.
World War III
Coronavirus Battlefield Report
A Warning to Politicians

Mortal conflicts result in casualties and lessons learned. Whether the conflict is between nations, or among combatants, even disease-driven, some-if-not-many will be killed or wounded physically and or mentally, and often live lessons learned for decades to come.

I experienced the harsh reality of both perspectives, as a casualty and lessons learned, by dint of firefights in the Republic of Vietnam, not healed until 50 years later here at home. ‘Making Amends’ tells the story of my recovery, and a societal requital. Following it, I’ll make comparisons to the Covid-19 battle we now fight.

‘Making Amends’

“When I deplaned in Los Angeles, following flights from Vietnam and Okinawa, all I saw were mini-skirts. Later that day, exiting a plane in Philadelphia, all I saw was my lovely wife Carolyn! And that night, wanting an evening out alone, we were refused service at a hotel restaurant in Radnor, PA., because I was wearing my Marine uniform with combat ribbons. Such was my homecoming in 1969.

Years later, when it was OK to know a Viet Vet, and finally Thank him or her for their service, I found it difficult to acknowledge this gratitude, as deep hurt and strong emotions would well-up inside, as I recalled friends who didn’t make it back to be thanked, let alone live out their lives – like me.

None of this prepared me for what happened Christmas Eve 2005, in a pharmacy on the south side of Indianapolis. I’d gone there to buy last minute stocking items for my wife and her Mother. After I queried a clerk, who turned out to be the store manager, for help finding an item, she noticed the gold U.S. Marine Corps emblem on a chain around my neck, and asked if we could talk.

Turns out her son is an airman in the U.S. Air Force, likely headed for Iraq. She’s very proud of him and the man he’s become. But 38 years ago, she was a university student in Indiana and active in the anti-Vietnam War movement. She demonstrated with many of her fellow students, believing the war was wrong, and most of what was said about those of us who fought it. Nothing happened in her life, during the next three decades to change those views, until her son enlisted in the U.S. Air Force. When she saw him graduate from basic training, and heard him talk of his service as being patriotic duty to his country, she realized there are indeed many men and women, over the years, who’ve been – and continue to be, willing to risk their lives in service to their country- and her son, her own flesh and blood is now one of them.

So now, three decades following the official end of the Vietnam War, she wanted an opportunity, not necessarily to ‘thank a vet’, but to ask forgiveness for her misguided passion while a university student, all those years ago. And I was to be her veteran.

We talked. I cried. She atoned. I reflected on fallen friends who’d never hear these words but through me. She shared how every time she sees her son, she’s reminded how blessed she is to be an American and mother of a U.S. serviceman. In that moment we helped heal each other’s wounds.” GFA
***
I was an emotional casualty of that conflict, but now healed. Lesson learned? ‘Be careful what you protest’, as history oft returns – and turns, vindicating leaders reviled, while painting detractors as having been shortsighted and wrong.

Know what? I think similarly about the coronavirus conflict, today’s invisible enemy. Here casualties are tallied as deaths, hundreds of thousands of them worldwide. There’s no earthly recovery from that. But partisan politicians, criticizing the handling of this crisis, who’d be wise to verbally restrain, and more legislatively supporting than they are today!
II.

What You Missed at the 2020 MHCongress in Las Vegas

(Not only was there no MHCongress last week, but on 14 April, we learned there’ll be no MHCongress in 2020!)

With that said, know there’s a unique opportunity for you to experience, nigh firsthand, one of the major bodies of information you would have learned if present at the MHCongress in Las Vegas, NV.

The May 2020 issue of The Allen Confidential! Business newsletter will feature this lead story:

‘21st Century HUD-Code Home sales Tools in Today’s Land Lease Communities!’

Nowhere else in the manufactured housing industry, or even among land lease communities selling and seller-financing new homes on-site, will you find this comprehensive, practical body of marketing and home sales knowledge! And, when done reading this seminal piece, if you want FREE copies of at least two of the training aids described, just ask for them!

How can you not want to benefit from this unique learning experience? All you have to do is be a subscriber, either basic or Premium edition, to tap into this ready resource. Visit www.educatemhc.com today!

And, by the way, date for the year 2021 MHCongress is 6-8 April 2021!

III.

Writers’ Conference

Ever Been to a Writers Conference, &/or Have a Hankering to Write for One or Another of the Manufactured Housing Trade Publications?

On Monday, 3 August 2020, at the RV/MH Hall of Fame Library in Elkhart, IN., a group of us will convene to address the topic: ‘Writing for Publication, Profit & Personal Satisfaction!’ From 9AM thru to 3PM, we’ll share examples of good and not so good writing, difference in left & right brain expression propensity, tools of writing, types of writing, maybe even some advice on the popular contemporary practice of self-publishing.

There’ll be no overt promotion of this one day program. Several have already committed to attend, at $95.00/person, and the group will be best served if kept to maybe two dozen writers, and would be writers, in attendance. SO, if interested in receiving more information as the date draws nigh, let me know via gfa7156@aol.com or phone (317) 346-7156.

And if you’re going to be there in Elkhart for the day anyway, consider staying over for the RV/MH Hall of Fame Induction Banquet at 6PM. For tickets, phone (574) 293-2344. That gala event always draws between 500-700 RV & MH businessmen and women from across the U.S.
***

George Allen, CPM, MHM
EducateMHC

World War III –flattening curve but more deaths!

April 9th, 2020

Blog # 580 @ April 9, 2020; Copyright 2020; www.educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ’mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities throughout North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877)MFD-HSNG o r633-4764. Also email: gfa7156@aol.com & visit www.educatemhnc.com

Motto: ‘U Support US & WE serve U!’ Goal: Promote HUD-Code manufactured housing & land lease communities as U.S. main source of affordable attainable housing! Attend an MHM class!

INTRODUCTION: Two perspectives this week.

FIRST. Key statistical findings published in EducateMHC’s ‘ MHShipment ‘#s & $s’ Report for February 2020, & the 4/3/20 ‘MH Manufacturer & REIT $ Market Data’. This information available nowhere else in the HUD-Code manufactured housing industry, or land lease community real estate asset class! Take steps today to ensure receipt of March 2020 YTD ‘#s & $s’ combined report, when distributed during first week of May 2020. How? Subscribe to The Allen Confidential!-Premium Edition, via www.educatemhc.com

SECOND. Personal reflections inspired by self-quarantine and passages from Karl Marlantes’ What It Is Like to Go To War; recollecting what was experienced and learned 50 years ago in Vietnam combat, and how it relates to Word War III. For example, Marlantes’ pens, “In combat, inattention to detail can kill people.” P.6. Just as inaccurate ‘calls for fire (e.g. artillery & close air support)’ can result in friendly fire casualties; inaccurate COVID-19 infection/morbidity models can result in more infections and deaths!

I.

World War III –flattening curve but more deaths!

“Manufactured housing business update. Coronavirus’ (negative) effects on HUD-Code housing shipments were minimal at end of February 2020, but devastating to stock prices and market (cap) values of six public companies on 3 April 2020.” GFA

HUD-Code manufactured housing shipment volume, at end of February 2020 was minimally affected by the imminent coronavirus threat. How so? The 8,240 new HUD-Code homes shipped were UP 1,027 units over February 2019, but DOWN 493 units from the month before, January 2020.*1

The ‘production value’ of these 8,240 new HUD-Code homes is estimated to be $355,000,000., based on 2013 base year data. Year to date (i.e. January & February 2020) total production value is estimated to be a revised $732,000,000.*2 Time to update the 2013 base year data!

The coronavirus effect definitely affected stock prices and market capitalization values of seven MH public companies (i.e. four HUD-Code housing manufacturers & three land lease community real estate investment trusts or REITs) on 3 April 2020. Among six non-Buffett firms, the average drop in stock price ranged between 30 & 50 percent.*3

Berkshire-Hathaway, at $428B is, for now, the only large (big) cap firm among manufactured housing and land lease community ‘players’; REIT Sun Communities, Inc. dropped to $9.98B, and REIT ELS, Inc., to $ 9.32B. Cavco Industries is the only other MH & LLCommunity-related firm, at $1.07B, to remain in the billion dollar value category. Skyline Champion Corp. is now at $682M, REIT UMH Properties, Inc., at $404M, and Legacy Housing Corp. at 226M.*4

Do you understand the difference between ‘coronavirus disease 2019’ and ‘COVID-19’? Former is the healthcare label; the latter, its’ abbreviated form.

Effective 1 May 2020, EducateMHC’s MHShipment ‘#s & $s’ Report for (March 2020); and early May 2020, the ‘MHManufacturer & REIT $ Report becomes an integral part of The Allen Confidential! business newsletter – Premium edition (This format includes subscriber access to more than a dozen Resource Documents during the course of the year, beginning with the ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Community Portfolio Owners/operators Throughout North America!’) every January. Visit www.educatemhc.com for more information. Obviously this is, and will continue to be, your best source of MH & LLCommunity information and data anywhere in the U.S. and Canada! GFA

End Notes.

1. 8,240 new HUD-Code homes shipped, as reported by the Institute for Building Technology & Safety, MHARR, NAMHCO, and EducateMHC. Manufactured Housing Institute alone reported 8,209 new HUD-Code homes shipped during February 2020, or 31 fewer manufactured homes.
2. This production value, YTD, was erroneously reported, originally, as being $530 billion.
3. BRK-A or Berkshire Hathaway stock price was not included in this analysis. No reason.
4. Large (big) cap firms = $10+ billion in value. Market (cap) value is computed by multiplying current stock price times total number of outstanding stocks.

II.

Lessons from War

Karl Marlantes and I were Marine second lieutenants during early 1969, as we participated in Operation Dewey Canyon, an infantry assault into the infamous Ashau Valley in western South Vietnam, near the Laotian border. I was a ‘short timer’ by then, nearing the end of my 13 month tour of duty – in May; Karl had recently arrived in-country. He was a grunt (infantry) officer, I was a combat engineer officer, assigned as shore party company commander (Responsible for dozens of helicopter support teams, or HSTs, on mountain forward combat bases throughout I Corps). We never met, but his ‘historical novel’, Matterhorn, authored during the next 30 years, is graphic and accurate to a flaw – but for name changes (e.g. Matterhorn is fictional name for one of many fire support bases scattered throughout northern South Vietnam).

I’ve recommended reading Matterhorn to male friends, including my grandson – as an acid test of how determined he was, at the time, to become a U.S. Marine. He was determined. But it was what I read in Karl’s equally-engaging second book, What It Is Like to Go to War, that got me thinking about the present day personal, social, health, and business combat trauma Americans are going through in World War III – as President Trump says, against an ‘invisible enemy’.

This blog posting could not be more timely, distributed during the week of 5 April, and carrying over into the following week – predicted to be the two worst weeks – for deaths – due to the coronavirus disease, even as the infestation bell-shaped curve flattens!

Following paragraph sets the stage for what we’re going through at present in the U.S.

“War…blows away the illusion of safety from death. Some random projectile can kill you no matter how good a soldier you are. Escaping death and injury in modern warfare is much more a matter of luck – or grace – than skill, and this is a significant difference from primitive warfare. In a combat situation, you wake up from sleep instantly aware this could be the last time you awake, simultaneously grateful you’re alive and scared shitless, because you are still in the same situation. Most combat veterans keep this awareness – death is just around the corner. We know that when we drive the freeway to work, we could be dead within the next hour. It’s just that the odds have changed greatly in our favor from when we were in combat.” P.17

There are at least three perspectives at play today during World War III, a.k.a. the coronavirus effect. First responders and medical personnel on the battle scene day after day after day until the virus is no longer efficacious – and the enemy is defeated. For them, death could well be ‘just around the corner’.
The citizenry who’ve been told, repeatedly, to ‘shelter in place’, practice self-quarantine, stop giving the virus anywhere to go.

The citizenry, likewise warned, but for personal reasons, ignore warnings and advice, to place themselves – and often loved ones, at unnecessary risk.

And let’s not forget the business owners and employees suffering unemployment, and the very real possibility of business failure. The differences?

When ordered, as a Marine lieutenant, to undertake a particular combat mission, I gave the matter only enough thought (i.e. attention to detail) to plan for and lead my men into and back from harm’s way – knowing full well some, including me, would likely not return intact. And by comparison, that’s why we’re grateful to doctors, medical personnel, and first responders during WWIII.

When secure in a rear area, generally safe from immediate ground attack, we reveled in the relative security of our position. Interestingly, with the passage of time – usually less than a week – some younger troops relaxed their diligence and left themselves vulnerable – to sniper fire and rocket attacks, while their (older) officers – oft with families back home, encouraged caution. And frankly, some individuals seem to like putting themselves at risk. As Marlantes pens in his book, “When you are confronted with a seemingly painless moral choice, the odds are you haven’t looked deeply enough.”p.154 – into the consequences of one’s actions and inaction! Sure, it can be fun, even stimulating, to flirt with danger. Just be aware of the consequences, remembering the law enforcement bromide: “If you can’t do the time, don’t do the crime!’ Or, ‘Afraid of dying? Stop trying!’

***

George Allen, CPM, MHM
EducateMHC

World War III? What a Major Difference One Month Can Make!

April 3rd, 2020

Blog # 579 @ 3 April 2020; Copyright 2020; www.educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities in North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: Promote HUD-Code manufactured housing & land lease communities as U.S. main source of affordable attainable housing! Attend an MHM class!

INTRODUCTION: So, how are you faring these days? Hunkered down at home like Carolyn and me, or still at work? Today is our 20th day of self-quarantine, and we’re getting along fine. Guess that’s a benefit of knowing one another for 57 years. But that hasn’t helped us complete the very detailed 1,000 piece jigsaw puzzle we began on 14 March. It depicts Noah’s Ark and is comprised of many tiny animals. In any event, our adult children are keeping us in groceries.

What follows are my musings about the coronavirus pandemic. Am interested in our ‘take’ on this serious national health and economic welfare matter.

I.

World War III?

What a Major Difference One Month Can Make!

Following two paragraphs comprise the lead (‘attention-getter’) in a feature article titled ‘Drowning in Money’ – New capital continues to pour into the private equity real estate space; found on page # 23 of the March 2020 issue of NREI (National Real Estate Investor) magazine.

“There has never been more private equity cash chasing commercial real estate assets. And yet more funds than ever continue to come to the market. That could make 2020 the frothiest year yet for private equity investors in the commercial real estate space.”

“In 2019, fund managers raised #151 billion, a volume that edged past the previous record of $148 billion achieved in 2018, according to data from London-based research firm Preqin. Average fund sizes are now larger than ever as well, with 295 funds accounting for the $151 billion in capital versus 486 funds that had raised the $148 billion the year before.”

As I pen these lines on Wednesday, 1 April 2020 – not as an April Fool’s Joke, I find my thoughts turning to what I’ve been hearing and reading about the coronavirus to date. After all, these past couple weeks have quickly become very trying personal health and corporate economic times, unlike anything since

World War I (1914–1918) & the Spanish Flu pandemic of 1918; 100+ years ago!

World War II (1939-1945) & the Vietnam War of 1954-1975; 50+ years ago!

I find myself agreeing, as President Trump suggests, this is a war we’re fighting against an invisible enemy! We should be thinking of this mobilization of our nation’s private sector, and passage of the Coronavirus Aid Relief & Economic Security Act (‘CARES’), as being akin to

World War III (2019 & 2020) & the difficult path we’ll be following to restore public health and economic prosperity to a strong but traumatized nation!

What do YOU think of what we’re going through these days? Let me know via gfa7156@aol.com

II.

Bruce Condit’s Seven Critical Steps to Crisis Management

Being pissed about the criticism directed at President Trump, during this coronavirus ‘war’, I decided to research how, in a perfect world, one prepares and effects crisis management – corporately, and by extension, governmentally. Here’s what I learned from Bruce Condit:

1. Have a plan. Every plan begins with clear objectives, e.g. protect endangered individuals, ensure audiences are kept informed, and organization survives. What specific actions are needed?

2. Identify a spokesperson. To ensure a clear and consistent message, name a spokesperson and prepare them to answer questions and participate in interviews.

3. Be honest and open via all communications channels, news interviews, social media, internal announcements, etc.

4. Keep one’s public (workforce, citizenry) informed. Minimize internal rumor mill subject to false reports on social media.

5. Communicate with customers and suppliers via every practical means.

6. Update early and often. Better to over-communicate if need be, rather than allow rumors to fill the information void.

7. Don’t forget social media. Monitor it, post and react to social media activity throughout the crisis.

As I worked my way through this crisis management planning process, I reflected on how – in my opinion – President Trump has fared to date. At first there was no workable plan in place. Is that his fault, or a shared shortfall with his predecessor? Spokespersons. Don’t know ‘bout you, but besides our president’s willingness to lead daily update briefings, I’ve been impressed with the two doctors who accompany him most of the time! And frankly, I believe the president and his advisors have been ‘honest & open’ with us to date – as there are always ‘state secrets’ we are at times better not knowing, until timing is right. And yes, I believe, as citizenry we have been kept informed, as the president and his staff advises us ‘early & often’, via print, online, broadcast, and social media. Bottom line for me? Stop criticizing President Trump, and ‘get on board’ with his health guidelines, so we can see our lives return to normalcy as quickly as possible.

***

George Allen, CPM, MHM
EducateMHC

FORBEARANCE (‘a refraining from the enforcement of a debt, etc.’)

March 26th, 2020

Blog # 578 @ 26 March 2020; Copyright 2020; www.educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, and communication media, for all land lease communities in North America!

To input this blog &/or affiliate with EducateMHC, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Motto: ‘U Support US & WE serve U!’ Goal: Promote HUD-Code manufactured housing & land lease communities as U.S. main source of affordable attainable housing! Attend an MHM class!

INTRODUCTION: Forbearance trumps foreclosure, in my opinion, any day! But is the price one has to pay (i.e. no eviction proceedings), in this instance, really worth not being able to collect one’s site rent? And how have you been enduring the past few weeks of the coronavirus hiatus? I’m certain there are many interesting tales that’ll come out of this massive national experience once it has passed. Professional property management is not talked about nearly enough in land lease community circles. Bottom line? If you’ve not been trained and certified in one of the three national programs presently available to land lease community owners/operators, you are selling yourself (as sole proprietor) or your firm (as salaried PM exec) far short of your professional property management potential! GFA

I.

FORBEARANCE
(‘a refraining from the enforcement of a debt, etc.’)

“To support multifamily property owners during this national emergency, the Federal Housing Finance Agency (‘FHFA’) announced Fannie Mae & Freddie Mac will offer multifamily property owners mortgage forbearance with the condition they suspend all evictions for renters unable to pay rent due to the impact of COVID-19.” Institute of Real Estate Management press release dated 23 March 2020.

II.

& What Have You Been Doing While Hunkered Down?

First off; maybe you haven’t been ‘hunkered down’ during the past week or soon two. Rather, you’re one who’s still able to go to work, enjoyed Spring Break at the beach, or as a prepper – go off the grid somewhere, until the coronavirus threat diminishes and disappears. Good for you – as long as you stay healthy!

Since Carolyn and I are in our mid-70s, our adult kids haven’t given us any choice: ‘Stay home, stay healthy, and enjoy – from afar, the benefits of being grandparents and great grandparents!’ Well, that’s what we’ve been doing since Sunday morning, 15 March. We’ve cultivated a pleasant daily routine together: arising in the AM to enjoy breakfast and some ‘daily quiet time’; followed, in my case, with some relaxing piano playing. Then it’s onto whatever activities we have at hand, ending the afternoons together, working on a complicated 1,000 piece jig saw puzzle of Noah’s ark and many many very small animals.

The unexpected consequence of being ‘shut in’ these past six, almost 11 days now, probably 14 by the time you read this blog posting, has been getting a leg up on several personal/professional writing projects.

First project was to revise and expand a ‘Writing for Publication, Profit, and Personal Satisfaction’ teaching outline I use with novice writers and friends/acquaintances who want to have some, or much, of their musings published. The outline is now ready for the one day Writers’ Conference I’m hosting on 3 August 2020, either at the RV/MH Hall of Fame, or a nearby hotel, in Elkhart, IN. Yes, that’s same day this year’s Class of 2020 (i.e. 10 RV & 10 MH pioneers) will be inducted into the RV/MH Heritage Foundation’s prestigious Hall of Fame. For tickets to the banquet, phone (6574) 293-2344. For more information about the Writers’ Conference, phone me via (317) 346-7156 or gfa7156@aol.com

Next project was to prepare a new (3rd) edition of Collection of Figurative Language & Figures of Speech – a writer’s guide, first penned in 2011, as a tribute to my late mother. As I perused new collected material, deciding what to include or not, came across some examples of lexophile creativity (Lexophiles are lovers of words and word games – synonymous with what author Richard Lederer labels as verbivores). Here they are:

You can tune a piano, but you can’t tuna fish
To write with a broken pencil is pointless
No matter how much you push the envelope, it’ll still be stationery
I’m reading a book about antigravity. I just can’t put it down.
When you get a bladder infection, urine trouble
When chemists die, they barium
England has no kidney bank, but does have a Liverpool
A thief who stole a calendar got twelve months
With her marriage, she got a new name and a dress.
A bicycle can’t stand alone; it’s just two tired.
And the list goes on and on, but surely you get the drift of the humor and word play. The new edition will likely be ready for distribution at the aforementioned Writers’ Conference.

My perennial project has been an autobiography. Started this more than a year ago, and am pleased the first DRAFT copy has been penned/typed and awaits initial edit. Seven chapters. Boyhood memories; Eastern, Carolyn & Susan; USMC & RVN Years; From Combat Leadership to Business Management (1970-79); A Career in Property Management (1980-2000); Bringing it Together as Writer, Author, Consultant (2000-2020); and, A Personal Swan Song. Still some decisions to make. Have a lot of material to work with (e.g. 350 color photographs from 1968 & 69 in Vietnam), plus business experiences described in 30+ years of newsletter publishing. For now, I’ll be satisfied to effect the initial audit and effect changes to the manuscript. Estimated publication date? Have no idea. Year 2020 would be timely; but 2023 commemorates the 50th anniversary of the end of the war in Vietnam – making the book all the more marketable; and during 2026, Carolyn and I will, hopefully, be celebrating 60 years of marriage –the common thread through all but one of the chapters in the autobiography. A word of encouragement to you. Like me, you have a story – personal and or corporate – to tell. For help, request a FREE copy of the booklet Who Will Preserve Your Legacy? Answer: You! Not only is this an engaging read (contains excerpts from all ten autobiographies penned by manufactured housing pioneers during the past 70 years), it gives you an outline as to how to proceed with your personal or corporate story! Again, phone or email me today!

In closing this part of blog # 578, here’s a ditty I found in my file:

The demanding person runs into resistance.
The defeated person runs into indifference.
The dedicated person runs in to help!
Author unknown

III.

WARNING!

Be careful what you read, and by whom, about management of land lease communities!

I’ve noticed a spike recently, in one or another of the few print and online trade publications serving manufactured housing and land lease communities. Feature articles are being penned by individuals on the hunt for fee-management contracts of individual properties or entire portfolios. In and of itself, there’s nothing wrong with doing so as a marketing ploy. However, know there are far fewer fee-management firms afoot in the land lease community market – compared to conventional garden style apartments, given the average size of such properties is less than 100 rental homesites apiece. This is generally not enough to support a logical percentage fee, unless it’s a turnaround project effected for a set amount during a set timeframe.

The ‘rub’ for me, is the lack of professional property management training and credentials evident among these johnny-come-lately, self-proclaimed fee-management specialists. To put the matter simply: we go to doctors for our medical needs, patronize CPAs for their accounting expertise, and frankly, should be putting our multimillion dollar real estate investments into the hands of individuals formally trained and vetted, by their peers, as bona fide professional property managers, e.g. Certified Property Manager™ (‘CPM’) members of the Institute of Real Estate Management (There are about 125 who claim affinity for our realty asset class nationwide today), Accredited Community Managers™ (‘ACM’) designated by the Manufactured Housing Educational Institute (‘MHEI’), and/or one of the nearly 1,500 Manufactured Housing Managers™ (‘MHM’) trained and certified by EducateMHC.

To learn more about these three professional property management programs, along with their schedules of training classes, access: IREM.org, MHI.org, & EducateMHC.com