Archive for March 25th, 2012

Some Opportunities for Your Input….

Sunday, March 25th, 2012

SOME OPPORTUNITIES FOR YOUR INPUT….

Ideas for 21ST Networking Roundtable Agenda & Presenters?

You Using Private Investors or P2P to finance home sales on site?

Last Chance! Volunteer to be a ‘New 18’ LLCommunity Pioneer?

Want a copy of the LLCTT 3 Step Plan for Takeover/Turnaround?

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Ideas for 21st Networking Roundtable Agenda & Presenters?

No other manufactured housing, and or landlease (f.k.a. manufactured home) community national venue, offers more education options (i.e. 24 topics and panels during two days), better interpersonal networking (i.e. ten social events for 200+/- registrants), and deal – making opportunities, than the annual International Networking Roundtable.

This year’s 2012 event is scheduled for 12 – 14 September at the Hilton Resort Hotel on Mission Bay in San Diego, CA. The 2 ½ day agenda of timely, cutting edge topics is being crafted NOW. If YOU have practical suggestions for topics and or presenters, communicate same to me, ASAP, via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or via email: gfa7156@aol.com

What’s already tentatively scheduled? Read this blog during the next few weeks to stay abreast of what’s going on, and to become truly excited about attending this year’s 21st annual Networking Roundtable. Even considering having a well known author and humorist on hand for the Thursday luncheon….

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You Using Private Investors, P2P, or P2B, to finance home sales on site?

Here’s the situation. For the most part, our ‘Big Four + 1’ independent, chattel (personal property) finance lenders and mortgage originators, are ‘dead in the water’ when it comes to financing in – landlease community home sales transactions! Sure, ‘financing’ is available, but only to credit – worthy borrowers with high credit scores – well above 600; certainly not the ones, oft with bruised credit, many of us are seeing these days. And, in my opinion, we’re not going to see this static situation change anytime soon. So, what might be practical alternatives during this impasse?

For starters, one ‘light at the end of the (finance) tunnel’, might be 21st Mortgage Corporation’s C.A.S.H. (‘Communities Affordable Spec Homes’) program, introduced here, in last week’s blog posting at this website. Did you read about it? If not, here’s the exciting new concept: ‘21st Mortgage Corporation will participate, with approved LLCommunity owners/operators, by purchasing new homes and siting them within their properties, at no cost to the operator.’ And there’s much more you need to know about the program. To do so, contact Lance Hull via (800) 955-0021 X 1218 or (865) 405-9121. You’ll likely be glad you did. And he’ll be at the NYHA Super Symposium III in Albany, NY., this week, 28 & 29 March (Phone 518/867-3242 to register!), as well as the Manufactured Housing Congress in Las Vegas @ 11 & 12 April. (Phone 703/558-0400 to register!)

Next. Here’re pithy questions and answers to consider, and maybe respond to this week. Are YOU presently using private investor funds, or P2P (peer – to – peer) & P2B (peer – to – business) – a.k.a., ‘crowd’ or ‘social funding’ to acquire homes, and or underwrite home mortgages on new and or resale homes, sold and sited within your landlease community(ies)? Why am I asking? Because a movement is already afoot, and has been established for awhile now, among sole proprietor and smaller property portfolio LLCommunity owners, to grow this ‘private finance’ concept, through education and communication – like what you’re reading here. For that matter, there’re some large property portfolio players who’ve already created their own in – house home finance programs, using equity funds they’ve raised.

In any event, once private investor funds are raised, two common approaches to applying them are 1) via lease – option transactions, in states where this methodology is acceptable, and LLCommunity owner is comfortable and compliant within the procedure; and, 2) via one or another ‘captive finance’ methodology, where home loans are effected under the auspices of a stand alone finance firm indirectly affiliated with the property owner, and mortgage servicing is handled by an independent, outside, financial services firm like Ken Rishel Consulting (217) 971-3968 (This is not a blanket endorsement, simply recognition that this sort of specialized service is very difficult to find in the manufactured housing industry).

In the meantime, what’s ‘peer – to – peer’ and ‘peer – to – business’ funding, P2P & P2B or ‘crowd’ or ‘social funding’ all about? Well, it’s when many investors contribute funds to finance one transaction (e.g. a manufactured home) at a time, often via common interest websites (e.g. prosper.com & lendingclub.com). The investment practice(s) are regulated by securities law, where prospectuses are filed, etc.. So, how’s this different from aforementioned ‘private investor funds’ – long in use by landlease community owners? Here, a private investor places savings, and or funds from a self – directed IRA account, into a transaction that stands on its own, e.g. one loan from one investor for one home purchased and or financed by the property owner, with investment ‘returns’ paid directly, over time, to the private investor.

Now, back to those two key questions: 1) Are YOU presently using private investor funds to acquire home(s) that’ll be seller – financed? And, 2) How ‘bout the similar, but newer alternative, referred to above as P2P and or P2B ‘crowd’ or ‘social’ funding?

With this blog posting, we’re launching an online, and in time, print effort to gather experiential information, successful and otherwise, to produce and distribute a Standard Operating Procedures (‘SOP’) of sorts, for landlease community owners seriously interested in ‘How to raise private investor funds, and via P2P & B2P’, for the purpose of filling vacant rental homesites! Also plan to identify additional resources providing independent mortgage servicing to firms engaged in any and all variations of self – finance (a.k.a. property owner finance) methodology, relative to manufactured homes in landlease communities. Anyone else out there into this (servicing) line of work, and or using private investor funds?

So, if YOU are into one or another aspect of using private investor funds, and P2P & B2P; and, routinely ‘service’ chattel mortgages on manufactured homes in landlease communities, contact Spencer Roane via (678) 428-0212 or via spencer@roane.com and or the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. When you contact Spencer, also know he’s knowledgeable and experienced in the use of the lease – option (Not ‘lease – purchase’), relative to manufactured homes sited in landlease communities, especially in the states of Georgia and Texas.

Spencer Roane, along with Ken Rishel, and ‘yours truly’, are participating in the NYHA’s Super Symposium III in Albany, NY., this week (Complete with Community Series Homes on display!). And all three of us will be panelists during either the National Communities Council Forum on 10 April, and or Manufactured Housing Congress on 11 & 12 April, in Las Vegas, NV. To register for any one, two or three of these seminal and timely national events, use contact phone numbers listed in an earlier paragraph of this blog posting.

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Last Chance to Volunteer as one of the ‘New 18’ LLCommunity Pioneers?

OK, we’re just about there! Each week, for the past three weeks, landlease community owners have been stepping forward to be one of the ‘New 18’ pioneers*1, committed to plan the future nature and direction of research and resource products and services utilized by LLCommunity owners/operators throughout the U.S. and Canada! We’re now at a dozen ‘New 18 pioneer’ businessmen and women. Should we count you, a landlease community owner, as being among this august body of our peers? If so, let me know soon, via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or via gfa7156@aol.com You’ll likely have to ‘leave a message’ as I’ll be in Albany, NY, the week of 26 March, attending and participating in the NYHA’s Super Symposium III. How ‘bout You? To get information and register, phone Nancy Geer via (518) 867-3242.

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Want a copy of the ‘LLCTT 3 Step Plan’ for Takeover & Turnaround?

Wow! We haven’t even made it to Albany yet (see previous paragraph), and folk are calling – in, wanting a copy of this stunning, one page summary of Lessons Learned during 30+ years of ‘taking over’ and ‘turning around’ troubled landlease communities!

As you learned here, in last week’s blog posting, I’ll be distributing a DRAFT copy of this unique, first time ever ‘handout’, at the Super Symposium III in Albany, NY. Once ‘back home in Indiana’, I’ll effect edits, reflecting critiques received from some of the 125+ LLCommunity owners/operators in attendance at the symposium, to make the ‘LLCTT 3 Step Plan’ even more applicable and valuable than it is today. And, unlike the DRAFT copy distributed to Super Symposium III folk in Albany, the ‘revised’ version to be distributed in Las Vegas, will feature an updated version of the highly popular ‘Ah Ha! & Uh Oh! Worksheet’ on the reverse side, likely using $64,000. as the ‘common denominator starting point’ for this unique, truly ‘affordable housing’ computation methodology.

Coincidentally, that $64,000. figure, is not only the ‘national average Area Median Income or AMI for year 2011’, it also ‘just happens to be’, according to the Wall Street Journal, the average price of a HUD code manufactured home during that very same year (2011)! How ‘bout that?

Next distribution will occur in support of a showcase panel presentation at the MHCongress in Las Vegas. Specifically, I’ll be moderating a panel comprised of three capable and experienced landlease community ‘turnaround experts’, between 2:45 & 4PM on 11 April. But you’ll need to be present at the panel presentation to pick up a copy of this finished work: the ‘LLCTT 3 Step Plan’, before, during, and after the ‘takeover’ and or ‘turnaround’ of any landlease community!

The third general distribution of this new PM (‘property management’) tool will occur for subscribers to the Allen Letter professional journal; as the new training handout, will likely be a lagniappe (freebie) enclosed in the May 2012 issue. How can YOU not want this handy form in your briefcase, ready for the next time you ‘takeover’ and or plan the ‘turnaround’ of a LLCommunity; and, need to clearly know what ‘housing price points’ will sell in particular local housing markets identified by postal zip code? Then, perhaps sometime in June or later, this terrific Lessons Learned one pager will be made available for general distribution to LLCommunity owners/operators nationwide.

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End Note.

1. The moniker ‘New 18’ is a nod to the ‘original 18’ landlease community owners who gathered, in Indianapolis, IN., on 8/31/1993, to take the first steps to ensuring appropriate and effective national advocacy, in behalf of their unique, income – producing property type. Result? Initially, formation of the Industry Steering Committee or ISC; then as of 1/1/1996, launch of what is now the National Communities Council division of the Manufactured Housing Institute. If you’re not already a direct, dues – paying member of this body, and own/operate one or more LLCommunities, phone (703) 558-0666 for information and to join.

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George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156