Archive for December, 2012

Don’t Take Good MH Leadership for Granted!

Sunday, December 30th, 2012

Blog # 226 Copyright 2012 30 December 2012

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.

I.

Don’t Take Good Leadership for Granted!

II.

Kudos Continue to Arrive in Support of Forming MHCA

III.

There’re Some Pretty Bright Thinkers & Doers Out There..

***

I.

Don’t Take Good Leadership for Granted!

‘Yes, I’m as guilty as the next guy or gal, taking good leadership for granted, at all levels and among a wide variety of firms that comprise various segments of the HUD – Code manufactured housing industry.’ It only occurred to me recently, how far astray some self – proclaimed, a few elected, even salaried leaders, routinely drift from core values and performance measures generally associated with good leadership practice.

How do I know? We see and read sorry examples all the time; in our trade press, during business meetings at state and national levels, and elsewhere.

But first, as a matter of credentialing; I’ve enjoyed two simultaneous leadership rich and demanding roles, of 28 years and 33 years duration respectively; as an officer of U.S. Marines, experiencing combat tours of duty in the Republic of Vietnam and during Desert Storm; and am now winding down more than three decades of responsibility as a senior salaried executive, entrepreneur businessman, real estate investor and manager, book author and newsletter publisher. There’s no way I’d have achieved significant successes throughout two parallel careers, without having early learned, and long applied, honorable core values and performance measures generally associated with good leadership.

Now, back to the self – proclaimed, a few elected, even salaried leaders who, in this industry reporter’s opinion, ‘based on firsthand observation & reading what they’ve penned’, are at times, selling would be clients, serious readers, and others, a ‘bill of bogus goods’ based on whimsy, ‘less than as successful as claimed past results’, even seat – of – the pants rhetoric. The sad thing is, some manufactured housing industry aficionados and land lease lifestyle community owners/operators, have bought into these bogus goods, for a time; some out of naiveté’; some out of supposed peer pressure; and still others, unaware of likely consequences of bad leadership.

Where to find examples of marginal and poor leadership? Easiest, is probably within one or another of the print and online trade publications making their way to our mailboxes and computers every month. Next time you pick up one of these media, and read the columns therein, study what the writer has to say; then ask yourself: ‘OK, I read what you write, but just how has this advice played out ‘successfully’ in your own experience, over the years, as a businessman or woman?’ Or, if unsuccessful, ‘Have you learned from your mistakes?’ Furthermore; ‘If you’re a leader, even a ‘thought leader’, I should be following, ‘What is your regional or national platform’, where I can find you, to listen and observe firsthand, business and leadership principles you espouse and (hopefully) practice?’ In my experience, more often than not, some of the self – proclaimed leaders aspire more to the misleading ‘Do as I say, not as I do!’ mantra, rather than simply setting a good, solid, verifiable example for us to emulate and follow. So, Be Careful Out There; what you read, might be leading you down the wrong leadership path.

Then there’s the body politic, within and throughout our industry and realty asset class. Here we find elected and salaried leaders who (at least should) aspire to espouse good core values and performance measures (results). And know what? For the most part, we do generally see more positive leadership than negative; and that’s a good thing. But leadership position voids (over time); round pegs hired to fill square holes; and worst of all, junior execs wearing their superior’s (boss’s) ‘rank’ in arrogance, are examples of marginal to faux leadership, on the association level. And then there’s that rare occasion, when elected officer(s) take it on themselves to publicly attack or chastise other association members, without notice or documentation, and without providing opportunity for their victims to rebut. That’s among the grossest examples of poor leadership – compounded in the eyes of other members, when the host body does nothing to rectify the sorry matter occurring on their time and in their locale, but simply passes the buck.

And did you know, there’s an unproven, but hard to miss, tip – off to identifying marginal or soft leaders? Here goes. It involves the trend, among frequent emailers, to end messages with a favorite or apt quotation, usually from some famous – or at times infamous, personage. And as far as it goes, it’s not a bad idea, and the practice can even convey meaning, if not overused. For example; if I were inclined to do so – which I’m not – my choice would be a tossup between this line from an old hymn, stenciled on my helmet in 1968: ‘Where Duty Calls or Danger, Be Never (found to be) Wanting There.’ Or that ol ‘6-P Rule: ‘Proper Prior Planning Prevents Poor Performance!’

But know what? The wanna be leader, one who has yet to find his or her path to good leadership, via core values and performance measures, often appends several, sometimes related, but often disjointed quotations, from a variety of individuals, to his/her correspondence or writings. My guess is they hope the reader will equate them with the substance of their selected quotations. Not. In a recent extreme example, I counted no fewer than a dozen mishmash of quotations accompanying a single piece of written communication.

This commentary regarding leadership brings to mind a short poem, author unknown, shared ‘years ago’, by Craig Fulmer, chairman of the board, of Heritage Financial (LLLCommunity portfolio owner/operator), and featured on page # 27 of the Chapbook of Business & Management Wisdom, PMN Publishing, Indianapolis, IN., 2008 (3rd ed.) An appropriate way to end this challenge to not take Good Leadership for granted.

‘I’d rather see a sermon, than hear one any day;
I’d rather one would walk with me, than merely show the way.
The eye’s a better pupil, and more willing than the ear;
Fine counsel is confusing, but examples’ always clear.’

Just how important is good individual leadership? Here’s an insightful passage from Robert Rosen & Paul Brown’s book, Leading People: “With a net worth estimated at $250 million, Malcolm Forbes was frequently asked how he decided where to invest his own fortune. His answer never varied. ‘I bet on the jockey, never the horse…I don’t need to know what industry the company is in, or what its’ financials are. All I need to know is what kind of person the CEO is.” (p.283). This quoted from the Handbook to Leadership, by Kenneth Boa, Sid Buzzell, & Bill Perkins (2007); a 52 week collection of readings on various aspects of leadership. Available via kenboa.org

***

II.

Kudos Continue to Arrive in Support of Forming MHCA

“I truly appreciate your commitment to our (MH) industry, and will be supportive of your efforts going forward. It’s unfortunate the national association doesn’t see the merits of your work. Perhaps this ‘not for profit spin-off’ is the best way to take this issue (of ‘statistical Research & comprehensive Resource Servicing’) on. I have no loyalty to the national circus, so will back you to the furtherance of this agenda.” MC

“As long as you find it rewarding and enjoyable, you will be able to do it forever, with glee, and die in your boots, like a real man, to whom we are all humbled; and I am not being facetious or sarcastic. There is no doubt you have set the stage for the future, and have made historical contributions to the industry. Hard to walk away from that and quite possibly, counter productive. It would be terrible (for you) to retire too early and watch the diminishing of your efforts because idiots took over the cause.” KH

“One thing we shouldn’t forget, is a code of ethics, and procedures which all MHCA members agree to operate under. For example, 1) not directly soliciting the residents of another land lease lifestyle community owner/operator, 2) and treating lenders like we would like to be treated ourselves.” PC

“Honestly – I think you’re right launching this new organization, George. We have waited and asked and shouted for strength and unity among the independent ‘street’ MHRetailers, manufacturers, suppliers, financiers, and LLLCommunity segments of our industry without result. Time to move on and win!” NB

***

III.

There’re Some Pretty Bright Thinkers & Doers Out There…

The following three short, lightly edited paragraphs, came to me in the form of an email message from a successful manufactured housing entrepreneur businessman, with more than 30 years owning and operating his own ‘for profit’ entities. Pay close attention; there’s some pretty pithy thinking here…

“I think our (HUD – Code) industry continues to struggle with a market identity problem. While tempting, even glamorous, to suggest our ‘big box = big bucks’ housing product (a.k.a. Developer Series Homes) continue to compete with site – built housing, despite zoning restrictions, modular homes, low – end site built models, foreclosed on homes, lending regulations, and tightening lender credit, make that a really rough row to hoe. The less glamorous, more competitive, affordable, manufactured housing alternative (e.g. inexpensive multisection, & 16X80 singlesection models) sited in land lease (lifestyle) communities (with site rent in sync with the local housing market), has a far better chance of success, than continuing to fight battles we’ve been losing for years!”

“I don’t agree with a lending executive’s recent warning to be wary of ‘the same customers who led us into this $ mess’. What got us into this $ mess was: mortgage fraud, fabricated income, false credit claims, fictitious down payments, lenders more focused on selling to the CMBS market than making sound loans, and long – range planning that was anything but. Like site – built housing today, we’ll continue to struggle until we convince investors they can, and will, make money by trusting us to treat them like we’d like to be treated. On that account, I’m afraid we still have a long way to go.”

“I continue to think 21ST Mortgage Capital’s CASH program is a definite step in the right direction, being a symbiotic relationship between LLLCommunity owners and chattel lenders, and certainly a no – brainer from the home buyer’s point of view. But seeing how much of the marketing and processing burden is on the owner/operators, specifically the difficulty communicating benefits of the program to would be home buyers, this continues to hold the program back from achieving its’ full potential.” SR

See what I mean? Sage observations and reasonable suggestions like these, should be receiving max attention on the national scene of our ‘double dual industry’ (i.e. ‘home manufacturing/distribution & realty development/investment’). Other than what you read here, or in Ken Rishel’s fine online finance newsletters, and in the Allen Letter professional journal, or the Allen CONFIDENTIAL! business newsletter, where else do you find heady topics presented, parsed, and planned into the future of HUD – Code manufactured housing and land lease lifestyle communities? It simply does not happen; despite the fact we have two national trade bodies claiming to Advocate in our behalf.

Proof? Ask yourself; When was the last time either Advocacy body called for a national MHInitiative® type strategic planning meeting, where businessmen and women from across the U.S., would participate at their own expense, to seek new and pragmatic solutions to the inherent barriers to increased housing market share – demonstrated by five years of HUD – Code housing shipments at a 60 year nadir? Why hasn’t this Survival effort happened? Ask them, next time you send in your annual membership dues check!

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indpls, IN. 46247 (317) 346-7156

MH 1985 History Repeating Itself in 2013?

Sunday, December 23rd, 2012

Blog # 225 Copyright 2012 23 December 2012

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

I.

Is History About to Repeat Itself During Year 2013?

II.

Manufactured Home Communities Association of North America

III.

REMINDER!

IV.

Duke University Discovers MHIndustry & LLLCommunities….

***

Pay careful attention to what you read here today. No one else in the manufactured housing industry, nor any other land lease lifestyle community owner or operator, will be as candid and forthcoming with you, as that which you are about to learn and ponder…

***

I.

Is History About to Repeat Itself During Year 2013?

In matters politic, business, social and otherwise, power is the operative word. And power is measured in many ways; as in votes, dollars, influence and otherwise. Power can be well applied to achieve a greater good, but it can just as easily be subverted to wreak harm, even dissipated to the point of marginalizing one or something into powerlessness.

The HUD – Code manufactured housing industry has been down this power to powerlessness path before. In 1985, I’m told, smaller, regional home manufacturers split from the Manufactured Housing Institute, or MHI, at least in part, because they felt the direction and future of the industry, particularly where HUD – Code related regulatory matters were concerned, was being powered by a few, much larger home manufacturers. Result? Formation of the Manufactured Housing Association for Regulatory Reform or MHARR. To this day, both entities continue to Advocate in behalf of HUD – Code manufactured housing; the former, from offices in Arlington, VA.; the latter, in downtown Washington, DC.

Have these two HUD – Code manufactured housing Advocacy bodies worked well together during the past 17 years? Generally no; though at times, they’ve sought and found common ground, when it came to supporting or opposing specific legislative initiatives and troublesome regulatory issues. One of the clearest and enduring examples of their cooperation, even with its’ downside, was the joint effort to effect passage of the Manufactured Housing Improvement Act of 2000. Its/ downside? The act is still far from being fully implemented; in part – per this industry observer’s opinion – because the two national Advocacy bodies have been unable to ‘power’ effectively together, to get the job done, even after 12 years!

Is MHIndustry unity (Think enhanced power!) on the horizon for year 2013? The chairmen of both national Advocacy bodies seem to think so; but given numerous past false hopes and failed efforts, only the passage of time and tangible results will tell us for sure.

In the meantime, MHARR continues, unofficially, to press for reorganization of various segments of this ‘double dual industry’ (i.e.‘home manufacturing/distribution’ & ‘realty development/investment’) whereby all HUD – Code home manufacturers, large and small (And possibly their OEM suppliers, and maybe ‘company stores’; which begs this question: Who’d Advocate for independent ‘street’ MHRetailers?) would be represented by one national Advocacy entity; and the remaining segments, by another national Advocacy entity (Thinking finance, and maybe land lease lifestyle community owners/operators here; but – again wondering, ‘Who’d Advocate along with, and in behalf of, state manufactured housing associations?’). But wait! Given the recent past, present and continuing depressed state of the industry (e.g. annual home shipments at a 50,000+/- 60 year nadir for the past four or more years!), with no sub prime chattel finance capital relief in sight, some have likened this bold reorganization idea, to ‘rearranging deck chairs on the Titanic after it hitting the iceberg and starting to sink’.

So much for the manufacturing side of the house. How ‘bout expectations, during year 2013, where land lease lifestyle communities’ present and future are concerned?

Their back story is fairly well known. A group of 19 (then) manufactured home community portfolio owners/operators gathered on 31 August 1993, in Indianapolis, IN., to eventually form an ad hoc Industry Steering Committee or ISC. Following a series of meetings and dues collection, by year 1996 (January), MHI formed the National Communities Council or NCC – since granted full division status by the institute. Like MHI, the NCC division has been, and continues to be ‘the national Advocate’ for land lease lifestyle communities, and their owners/operators nationwide.

But wait – again. Here too, there’s at least one elephant – the first one by historic comparison – ‘in this room’ (i.e. Segment of the MHIndustry). Remember how the big versus small HUD – Code home manufacturer matter played out, as just described, in 1985? Well, some fear a similar scenario might be in the offing, where ‘big & small’ land lease lifestyle community owners/operators are concerned. How so? While there’s an acceptable ‘size mix’, among present day, direct, dues – paying members of the NCC division, all elected and ‘appointed’ members of its’ executive committee hail only from among the Top Ten largest LLLCommunity portfolio owners/operators listed in the last several ALLEN Reports! And the second elephant? There seems to be a communications shortfall to boot. Only once since the NCC council’s last meeting, 8 October 2012, – and then, in the form of a newsletter, has communication gone out to all members, relative to what and how, as LLLCommunity owners/operators, we should be planning for the upcoming year 2013. And in one instance, a direct, dues – paying member submitted a list of recommended agenda items for the council’s next meeting, in late February; but to date, has not received even an acknowledgement of receipt of said correspondence, let alone the agenda suggestions. Any elephant hunters reading this?

During all this time, since 1980 when it was founded, GFA Management, Inc., dba PMN Publishing, a ‘for profit’ firm domiciled in Indianapolis, IN., has handled the statistical Research & ‘comprehensive Resource servicing’ of land lease lifestyle communities and their owners/operators nationwide. Today, faced with the probable closing down of the firm by year end 2013, an alternative vehicle, to perpetuate print and online communication media, professional property management education and certification, national and regional interpersonal networking, and deal – making opportunities, is sorely needed.

The plan is for a Manufactured Home Communities Association of North America, or MHCA in short, to take on those responsibilities and tasks, as a new, not for profit, national entity. Furthermore, it is hoped the work of MHI’s NCC division, with its’ sole Advocacy focus, will be complemented by MHCA’s emphasis on statistical Research & ‘comprehensive Resource servicing’. And at some point in the future, when the Center for Manufactured Housing Studies, or CMHS – formed during 2012, is ready, ‘academic research’ in manufactured housing, land lease lifestyle communities, and affordable housing, will become their standard fare, allowing MHCA to focus on Resources needed and desired by LLLCommunities nationwide, and maybe in Canada.

Back to the power and powerlessness theme voiced in the opening paragraph of this essay. In light of the content of the preceding paragraphs, three similar – but in the end, very different pivotal questions beg answering, and the sooner the better:

Will the HUD – Code manufactured housing industry and land lease lifestyle community asset class be best served, by further dissipating national lobbying presence and ‘power’ among four, eventually five, national, not for profit entities: MHARR, MHCA, MHI, & MHI’s NCC division (Right there we see three Advocacy bodies and one Research/Resources entity, but not in that order). And in time, there’ll be a fifth, the CMHS – not really an Advocate, but still to be, a national presence and ‘power’ – by dint of its’ dividing LLLCommunity Research & Resources responsibilities. The answer???

OR

Will the HUD – Code manufactured housing industry and land lease lifestyle community asset class be best served by consolidating presently disparate lobbying ‘power’ into one overarching, all – inclusive national, not for profit Advocacy body yet to be formed or identified??? And if this mega – merger comes about, in the name and interest of enhanced national Advocacy, what becomes of ongoing statistical Research & ‘comprehensive Resource servicing’ enjoyed by land lease lifestyle community owners/operators for the past 33 years? Does the new entity do what present ones have been unwilling to do; assume responsibility for ongoing statistical Research & ‘comprehensive Resource servicing’ for LLLCommunity owners/operators nationwide?

OR

Will the HUD – Code manufactured housing industry and land lease lifestyle community asset class be best served by reorganizing as many as four or five disparate national lobbying ‘powers’ into ‘only two’ new, national, not for profit entities; one being a solely ‘housing – focused’ Advocate; the other, a ‘realty – focused’ national Advocate, statistical Researcher, and ‘comprehensive Resource purveyor’???

A helpful hint! This quote from Woodrow Wilson describes our industry; and by default, its’ realty asset segment, in terms of past, present, and future power perspectives: “As a matter of fact and experience, the more ‘power’ is divided, the more irresponsible it becomes.” Substituting the words ‘ineffective’, ‘counterproductive’, even ‘divisive’, in lieu of ‘irresponsible’, aptly describes ‘what we’ve done to ourselves’ during the past 27 years of national Advocacy presence and powerlessness in our nation’s capitol. So, will year 2013 hold, for us, ‘more of the same’; or a reorganization that restores and enhances, rather than saps our collective power?

***

II.

Manufactured Home Communities Association of North America

Steps are being taken to legally form the new, national, not for profit entity, to be known as the Manufactured Home Communities Association of North America, or MHCA, for short. There are a few legal hurdles to be cleared during the next 30 days. It’s hoped a meeting of some, if not majority, of the Pioneers of 2012, will occur during the Louisville MHShow in Kentucky, on 24 January 2013.

Who’re the Pioneers of 2012? They’re an ad hoc group of land lease lifestyle community owners who volunteered, during early 2012, to help market the products and services of GFA Management, Inc., dba PMN Publishing. We met once at Chuck Fanaro’s beautiful SaddleBrook Farms, in Grayslake, IL., and continue to stay in touch regularly, via various forms of correspondence. When it was finally (recently) realized there wasn’t going to be a ‘buyer’ of aforementioned products and services – all related to the statistical Research & ‘comprehensive Resource servicing’ of LLLCommunity owners/operators nationwide, attention refocused on launching the MHCA.

Watch here (weekly blog posting), as well as in the Allen Letter professional journal, for announcements relative to ‘How to Become a Charter Member of MHCA’, and what the array of membership benefits will include, e.g. newsletter subscription, FREE copy of 24th ALLEN REPORT (vs. $500/copy retail price), and much much more. If you’d like us to add your name to the list of individuals to be notified ‘first’ of this Charter Member opportunity, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, and ask for be so listed.

***

III.

REMINDER!

Reserved your copy of ‘Past as Predictor of the Future – or just another Crapshoot?’ yet? All you have to do is reach out to Sue Brenton, executive director of MHC of Arizona. Phone (480) 345-4202. Trust me. You don’t want to miss this expose’ of the MHIndustry and LLLCommunity asset class’ past, present, and future. It’s being published, during January 2013, in that state’s MHAssociation newsletter.

IV.

Duke University Discovers MHIndustry & LLLCommunities….

A Duke University professor, as I understand it, has been retained by a mainline publisher to research and produce a book describing the manufactured housing industry and land lease lifestyle communities. Deadline is sometime during the Summer of 2013.

In the meantime, the author’s research staff member, Ms. Reed Few, has been in touch with this industry observer, and others, and is now absorbing all she can learn about our unique ‘double dual industry’ (Described in part I of this blog posting). In fact, she participated in the recent symposium hosted by the Virginia Manufactured and Modular Housing Association, in Richmond, VA. There she met with 25 land lease lifestyle community owners/operators and several HUD – Code home manufacturer representatives, to learn more about the basics and nuances of our ‘most affordable of all factory – built housing alternatives’ as well as the unique, income – producing property type that caters to manufactured homebuyers/site lessees.

If you’re an Allen Letter professional journal subscriber, expect to receive an owner/investor questionnaire, enclosed as a lagniappe, from Ms. Few, in behalf of the book’s author. Please complete and return it promptly. To subscribe to the monthly newsletter, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

By the way, this book is not the same one we told you about last month in this blog series. That one is being researched and authored by a MHIndustry veteran; this one by an academic.

Speaking of books. How many of you remember Ted Boers, founder of DATACOMP? If you do, you know he dropped out of sight a decade or so ago, to concentrate on helping Haitians as a Christian businessman missionary. Well, it’s been quite an adventure for Ted, with some pretty high spiritual peaks, as well as more than his share of deep valleys. He tells this story in the newly released Demons of Poverty, ‘One Entrepreneur’s Experience with Addressing Poverty in Haiti’. I just finished reading it, and will tell you this much here (a longer review will be published in an upcoming issue of the Allen Letter professional journal): It is one of the most unusual non – fiction books I’ve read to date! It has everything: facts, characters, story line, etc. But what I didn’t expect, was the near abject depression Ted had to overcome at one point in his work. And his list of Practical Lessons Learned, for those planning or attempting to ‘do business’ in an undeveloped country, is worth the $14.95 price of the case bound book! Order via Datacomp: (800) 365-1415 or, at only for $9.95, electronically, from amazon.com, barnesandnoble.com, or appleibooks.

*****
George Allen, CPM®Emeritus, MHM®Master Box # 47024
Consultant to the Factory – built Housing Industry, Indpls, IN. 46247
The Land Lease Lifestyle Community Asset Class, & (317) 346-7156
Affordable Housing Purists & Enthusiasts Nationwide

Dawning of a New Era, & Three Rules of Thumb

Sunday, December 16th, 2012

Blog # 224 Copyright 2012 16 December 2012

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

I.

January 2013 = Dawning of a New Era for Land Lease Lifestyle
Communities Nationwide, maybe including Canada!

II.

Schwep, Schrader, & Smith Rules of Thumb;
and, How to ‘Sell More Homes & Lease More Sites’

***

I.

January 2013 = Dawning of a New Era for Land Lease Lifestyle
Communities Nationwide, maybe including Canada!

“Go MHCA!” was the typical response to last week’s blog posting, in which emergence of the Manufactured Home Communities of North America®, or MHCA®, was announced. Given the heavy volume and supportive nature of telephone and email responses, one has good reason to believe this new, national, not for profit body (Actually a conversion of ‘for profit’ GFA Management, Inc., dba PMN Publishing into a ‘not for profit’ entity) has tapped strong pent up demand for ongoing statistical Research & ‘comprehensive Resource servicing’, like that of other realty – based national trade bodies, like the National Apartment Association and Communities Association Institute.

Fourfold significance of January 2013. In brief; publication of the 24th annual ALLEN REPORT, as a lagniappe in the January issue of the Allen Letter professional journal; a ‘by invitation only’ POWER Luncheon for LLLCommunity owners/operators, during the Louisville MHShow on 23 January; first formal meeting of MHCA organizers; and, laying of preliminary plans for a MHInitiative® (formerly, National State of the Asset Class caucus or NSAC) event, likely to be held in early or mid – February 2013.

Here’s more information about each of these exciting Dawning of a New Era events:

• 24th annual ALLEN REPORT. All previous ALLEN REPORTs will pale in comparison with this one, relative to meaty content and cultivating new territory! For starters; the number of listed property portfolio owners/operators is down from 127 to 110. Why? In addition to losing a few non – reporting firms, we’ve removed ‘deadwood’ responders this year, yet added several new ‘players’ – one in particular: ‘Inspire Communities’. Furthermore; weekly blog floggers (readers) already know this year’s ALLEN REPORT features, for the first time ever, ‘25 of the Most Influential People in the Manufactured Housing Industry’ – all recommended by their peers! And there’s much more… If you’re an Allen Letter professional journal subscriber (only $134.95/year…for the time being), you’ll receive the ALLEN REPORT for Free; otherwise, it’s available at $500.00/copy. FYI. In months to come, this newsletter and report will become key MHCA member benefits!

• POWER Luncheon at 11:30AM, on 23 January, at the Crowne Plaza Hotel ‘across the street’ from the Kentucky State Fairgrounds. While invitations haven’t been mailed to Midwest LLLCommunity owners/operators yet, ‘reservations’ already approach our initial capacity of 50+/-; likely to be increased now, to 75. What’s to happen? Likely a brief ‘after luncheon’ presentation, followed by three simultaneous Discussion Groups dealing with Regulatory Compliance Issues; the Lease Option alternative; & ‘How to Collect 100% of Your Site Rent!’ And maybe: ‘Calculating New & Resale Home ‘affordable’ & ‘risky’ Price Points, using Annual Gross Income & Area Median Income…’ This event will conclude around 2:30PM.

• Meeting of MHCA organizers. There’s been an ad hoc working group, of a couple dozen LLLCommunity owners/operators, in place during 2012 – helping GFA Management, Inc., dba PMN Publishing find a buyer or successor. Results? No buyer, but a successor, the MHCA! Volunteers from this group are becoming leaders of the MHCA, giving the new, national, not for profit trade entity direction. As you’ll recall from previous blog postings and elsewhere, the MHCA was formed to Complement the National Advocacy focus of an existing not for profit body. Again, the dual foci of MHCA, for the time being, is ongoing statistical Research & ‘comprehensive Resource servicing’ in behalf of LLLCommunity owners/operators nationwide, likely including Canada. For the time being? That’s acknowledgement of the Center for Manufactured Housing Studies or CMHS, formed during 2012, which will likely assume the ‘statistical Research’ focus of MHCA, plus manufactured housing and affordable housing Research, at some point in the near or distant future.

• MHInitiative®. It’s this industry observer’s long held opinion cum conviction, the HUD – Code manufactured housing is long overdue – when it comes to engaging in open and strategic parsing, free – ranging discussion, and resolution of self – defeating business practices, inherent but unresolved intra and inter segment differences, and ongoing peccadilloes affecting homebuying and site leasing customers! Such a major, national effort takes time to plan and effect. So, in the near term, a call will go out to businessmen and women in all segments of the manufactured housing industry, to gauge their interest, and solicit their support, to meet during the Summer of 2013 to ‘do just that’: identify and address errant, self defeating business practices; ascertain how to better serve MH-related businesses at the ends of the size spectrum; and most important, rediscover our core customer base; and take steps, once again, to design, build, deliver, install, service, and warranty quality housing product! Frankly, such a national, mega – effort should originate with an existing Advocacy body – or two, already part and parcel to the business model! But will one or the other, or both, respond to an MHInitiative® opportunity to collectively regroup, refocus, and recover? Continue to read this weekly blog posting to see what, if anything, transpires to that end – in the way of response. At the very least, learn when and where the mid – February MHInitiative® planning session will occur – with or without the support of aforementioned national Advocacy entities.

OK. If you’d like to respond to the announcements and commentary contained in the previous four bulleted paragraphs; subscribe to the Allen Letter professional journal; order a copy of the 24th annual ALLEN REPORT (Appears in a couple weeks); participate in the 1/23/2013 POWER Luncheon in KY; become a charter member of the Manufactured Home Communities Association of North America (‘MHCA’); and or volunteer to participate, at your own expense, in the forthcoming MHInitiative® planning session, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or email: gfa7156@aol.com and make your wishes known!

***

II.

Schwep, Schrader, & Smith Rules of Thumb;
And, How to ‘Sell More Homes & Lease More Sites’

Earlier this year, the Book of Formulae, Rules of Thumb, & Helpful Measures ‘Mostly for Land Lease Lifestyle Communities & HUD – Code Manufactured Housing, as well as Commercial Real Estate Investment, Affordable Housing, and Realty – Secured Mortgage Originations’ debuted at the 21st annual International Networking Roundtable in San Diego, CA. Did you get your copy there or afterwards? It’s still available!

Since then, a fair number of readers of the Allen Letter professional journal, and this weekly blog posting, have requested more information about the content of the book, and ‘how to order it’. Well, the answer to the second question is this: Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and order the Book of Formulae…for $19.95 postpaid. Credit card orders are welcome.

Content? Thought we’d share some of it here, and possibly in future blog postings. This time around, we’ll quote three separate (edited) Rules of Thumb, from pages # 11 & 12 of the subject book.

• Schwep Rule of Thumb. To sell successfully, a manufactured home’s loan PITI (principal, interest, taxes & insurance premium) payment, and site rent total together, must be 15- 20 percent less than monthly rental amount for a conventional apartment in the same local housing market. Percentage may vary per specific market. This rule of thumb first articulated by veteran freelance manufactured housing consultant, and RV/MH Hall of Fame inductee, Grayson Schwepfinger. For example. If conventional 3BR2B apartment rent, in a given local housing market is $900.00/month, maximum PITI and site rent combined payment has to be between $720 & $765/month. How so? Multiply $900, first by .85, then by .80 (i.e. 15% & 20% target margins cited earlier), to arrive at those two amounts. Then subtract site rent (e.g. $300/month from the $720 figure to leave $520/month remaining for new home mortgage PITI. Same thing with the $765 amount, (-) $300 = $465 for mortgage PITI. Be careful to ensure any household utility payments, e.g. water/sewer charges, are handled similarly in the apartment and home/rental site environments. *1

• Schrader/Smith Rule of Thumb. To sell successfully, a manufactured home’s loan PITI (principal, interest, taxes & insurance premium) payment, and site rent total together, must be at least $50.00 less, per month, than conventional apartment unit rent in the same local housing market. Dollar amount may vary per specific market. This rule of thumb first articulated, similarly but at different times and places (i.e. KY & MN) by land lease lifestyle community portfolio owners/operators Al Schrader and Nathan Smith, PHC®. For example: If conventional 3BR2B apartment rent, in a local housing market, is $900/month, maximum PITI and site rent combined payment must be at least $50.00 less, per month, than aforesaid apartment rental rate. How so? Subtracting $50.00 from $900.00 leaves $850.00. In turn, subtract #$300/month site rent from the $850.00, to arrive at $550/month for new home mortgage PITI. Be careful to ensure any household utility payments, e.g. water/sewer charges, are handled similarly in the apartment and home/rental site environments. *1

• ‘Sell More Homes & Lease More Sites’ Rule of Thumb. To sell successfully, a manufacture home’s loan PITI (principal, interest, taxes & insurance premium) and site rent total together, must be at least $25.00 per month less (some say 25%) than a real estate – secured home mortgage’s PITI – assuming household utility expenses are treated in similar fashion in both instances. Several reasons: First and foremost, site – built home PITI includes underlying realty, while a manufactured home in a land lease lifestyle community doesn’t. Furthermore, said discount plays to the affordable nature of manufactured housing and the land lease community lifestyle. *1

End Note.
1. The third Rule of Thumb makes passing mention of ‘household utility expenses (being) treated in similar fashion in both instances’, i.e. per conventional apartment & or LLLCommunity. The first two Rules of Thumb make no mention whatsoever of this important consideration. How so? When estimated annual household utility expenses (e.g. water, sewer, electricity, heating fuel @ gas or oil) are included in the 30% Household Expense Factor or HEF, along with PITI & site rent – or even apartment rent, homebuyers/apartment renters are positioned to be in ‘affordable’ living situations, i.e. ‘Not buying more house, or renting more apartment, than they can truly afford!’ On the other hand, when said household utility expenses (not including telecom services) are NOT included within the aforesaid 30% HEF, homebuyers and apartment renters are saddled with ‘risky’, at best, home and apartment ‘deals’. Consequences? Instead of paying 30% of their annual gross income (AGI) towards household mortgage and or rent expense, they in truth wind up paying in the neighborhood of 40 – 50% HEF; hence a precursor to financial woe, of one manifestation or another.

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indpls, IN. 46247 (317) 346-7156

‘Symptoms’ & be a Charter Member of MHCA

Sunday, December 9th, 2012

Blog # 223 Copyright 2012 9 December 2012

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

I.

I’m Happily Moving On with My Business Life!

II.

Symptoms of Troubled Land Lease Lifestyle Communities!

III.

Own LLLCommunities & Want to be Charter Member of MHCA?

********

I.

I’m Happily Moving On with My Business Life!

It’s been two months and a day, since 8 October 2012, when I and another dues – paying member of a national manufactured housing advocacy body, were verbally assaulted without warning or cause, before 70 or so of our peers – including but a dozen bona fide owners of land lease lifestyle communities – at a national gathering of fellow manufactured housing industry businessmen and women.

Since then, the elected officers of the parent body hosting said meeting, have dodged responsibility for their colleague’s attack. They confirmed their position in a letter from their attorney, that arrived 30 November, the date I’d set as a personal deadline to get this sorry matter resolved, hopefully with an apology and copy of the script read to castigate the other dues – paying member and myself. Neither happened.

So, why am I not particularly upset, and happily moving on with my business life? As you likely know, I have opportunities and the wherewithal, as an author, to write and publish contemporary histories of the manufactured housing industry, and it’s sister segment, the land lease lifestyle community real estate asset class! *1 My day will surely come….

II.

Symptoms of Troubled Land Lease Lifestyle Communities!

Following data based on 200 rental homesites @ $200/month rent.*2

Yes, some of you reading this posting have seen these ten symptoms before. But since they continue to be one of the most frequently requested training aids, right there along side the…

• ‘Ah Ha! & Uh Oh! Worksheet’ calculates ‘affordable’ & ‘risky’ Price Points, using Area Median Income (‘AMI’) &/or Annual Gross Income (‘AGI’), for new & resale homes sited in LLLCommunities & on realty conveyed fee simple

• Official Industry Standard Chart of (operating) Accounts & the industry averages of Operating Expense Ratios (‘OER’s) for land lease lifestyle communities nationwide.

• Industry Briefing Sheet, contains core benchmark statistics for HUD – Code manufactured housing (e.g. shipment #s, $/sq.ft. costs), and land lease lifestyle community data from the current ALLEN REPORT, a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators Throughout North America!’

• Annual ALLEN REPORT, & 11 Signature Series Resource Documents (e.g. National Registry of Realty & Chattel Lenders; List of Freelance Consultants; and nine more…) available nowhere else in the MHIndustry or LLLCommunity asset class than from GFA Management, Inc., dba PMN Publishing.

All the above resources, but one, are available FREE for the asking, by phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. The annual ALLEN REPORT is available ‘free’ to paid subscribers to the Allen Letter professional journal; or for $500.00 per copy; again, by phoning the above listed MHIndustry HOTLINE.

Back to the ‘Symptoms of Troubled Land Lease Lifestyle Communities’ It’s OK to ‘set your own standards’, or use ones provided in mathematical examples below. In each instance, however, think or say to oneself; This symptom, ____________, if ‘less or more’ than stated standard, indicates the subject property is ‘troubled’ in this particular area:

1. Physical Occupancy less than 93%, e.g. 186 occupied sites divided by 200 total rental homesites = 93% physical occupancy!

2. Economic Occupancy less than 85%, e.g. 170 ‘occupied & paid’ sites divided by 200 total rental homesites = 85% economic occupancy!

3. Bad debt more than 1% of adjusted gross rent! ‘Adjusted gross rent’ is total (monthly) rental income from a property, based on real or estimated physical occupancy percentage. So, if ‘adjusted gross rent’ is 200 sites X $200 X 95% (.95) occupancy = $38,000. X 1% (or .01) = $380.00. ‘maximum bad debt allowed’ benchmark.

4. Aged rent delinquencies more than 30 days! Some say 60+ days, however, when comparing ‘collection performance’ to conventional apartments, as it oft takes monthly rent from three homesites to equal rent volume from one apartment unit.

5. Aged accounts payable more than 30 days! Often beyond the control of on – site management, but a symptom, nonetheless, of a troubled property operation.

6. Operating cash flow goes negative in consecutive monthly periods! Similar to previous symptom, characterized by ‘holding checks’ till next month rent arrives.

7. Debt service coverage drops below 1.05x in consecutive months! This is margin by which a property’s ‘net operating income’ or NOI, exceeds or covers ‘debt service’ or mortgage payment, usually a10 – 20% margin, expressed as 1.1 – 1.2x

8. Moves by vendors & or suppliers to close property accounts, inhibiting work from being completed or needed supplies from being ordered and inventoried.

9. Poor curb appeal. Symptomatic of lax routine maintenance, deferred maintenance, lax rules enforcement, and marginal on – site property management.

10. Little to no qualified leasing or sales traffic, along with below average ‘conversion percentages’. Symptomatic of no marketing plan (Consider implementing the ‘5-Ps of Marketing’*3); ineffective advertising; lack of home sales & site leasing training; lax performance supervision (e.g. # of calls converted to visits, & # of visits converted to approved applications, & reporting of same); and, worsening reputation in the local housing market.

III.

Own LLLCommunities & Want to be Charter Member of MHCA?

The following two paragraphs are quoted from a letter I recently mailed to businessmen, still active in the manufactured housing industry and land lease lifestyle community asset class, who attended the historic, strategic planning meeting on 31 August 1993. This was precursor to formation of an Industry Steering Committee (‘ISC’), which in turn was predecessor to the Manufactured Housing Institute’s National Communities Council division – that debuted 1 January 1996.

“Since I’ve been unable to successfully market the ‘products & services’ created and nurtured, during the past 33 years, by the ‘for profit’ GFA Management, Inc., dba PMN Publishing firm, the matter comes down to two courses of action:

• I pull the plug on the ‘for profit’ firm, and walk away from the Research & Resource needs of hundreds of my fellow owners/operators of LLLCommunities nationwide and in Canada, and likely retire. Walking away is the least desirable alternative, but I would like to slow down and spend more time with Carolyn. What’s this mean (to you)? No more weekly blog postings and monthly newsletters, no more annual ALLEN REPORTs, no more annual Networking Roundtables or periodic FOCUS Groups, and no more monthly updates as to identities of real estate and chattel loan originators, freelance consultants, and much more. (Forgot to include: ‘no more exclusive data base, listing 500+/- LLLCommunity portfolio owners/operators in North America!’ & no more Manufactured Housing Manager® or MHM® professional property management training and certification program!’)

-OR-

• We take the above reference ‘for profit’ products and services, and roll them into a new, not for profit (501c3), national trade entity, to be the statistical Research & ‘comprehensive Resource servicing’ arm of the LLLCommunity property type, nationwide and in Canada. All the while, leaving Advocacy work for MHI’s NCC division. In effect, creating a second national MHIndustry (or third, considering MHARR) trade body, (something) we talked about avoiding, even at the 31 August 1993 meeting’ 19 ½ years ago!

So, where are we today? By years end, a call will likely go out to land lease lifestyle community owners/operators, who’ve already expressed their desire to have a direct roll in perpetuating the statistical Research & ‘comprehensive Resource servicing’ they’ve enjoyed these past three decades! Specifically, they’ll be given the opportunity to join and actively support the new, national, not for profit Manufactured Home Communities Association of North America®, or MHCA®, as a dues – paying charter member. Then participation will be opened up to all LLLCommunity owners/operators nationwide.

Know what? You don’t have to wait to get involved! Let me know NOW of your interest, via letter (GFA c/o Box # 47024, Indpls, IN. 46247), the above MHIndustry HOTLINE, or email: gfa7156@aol.com

Again, the new MHCA is envisioned as being the statistical Research (Until the Center for Manufactured Housing Studies, or CMHS, is fully operational) and ‘comprehensive Research servicing’ entity, going forward, to serve land lease lifestyle community owners/operators throughout North America; leaving the Advocacy interests, of the realty asset class, the sole focus of MHI’s National Communities Council division.

***
End Notes.

1. Read Development, Marketing & Operation of Manufactured Home Communities, Allen, Alley & Hicks, J. Wiley & Sons, NY, NY, 1994. See appendices B, C, and especially G.. Also, chapter # 2 in, Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, George Allen, CPM® & MHM®, PMN Publishing, Indianapolis, IN., 2011.

2. Adapted from 6/2007 issue of Affordable Housing Finance magazine

3. 5 – Ps of Marketing: Product (or Service), Price structure, Place (or location), Promotion, & People! Source. Landlease Community Management, George Allen, CPM® & MHM®, PMN Publishing, Indianapolis, IN. 2008; 6th edition, pp. 66 & 67. Also text for Manufactured Housing Manager® or MHM® professional property management training and certification program, via PMN Publishing.

George Allen, CPM®Emeritus, MHM®Master
Box # 47024, Indpls, IN. 46247
(317) 346-7156

MHCAA & MHPast as Predictor: 2012-2022

Sunday, December 2nd, 2012

Blog # 222 Copyright 2012 2 December 2012

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

I.

WOW! Did YOU Respond? YES!

There will be a ‘by invitation only’ POWER Luncheon in KY on 1/23/2013

&

While the MHCA of North America is not a ‘done deal’ yet, may be soon…

II.

‘Past as Predictor of the Future – or just Another Crapshoot?

Have YOU Contacted ‘MHC of Arizona’ for a Copy of this MHExpose’?

III.

Key # Indicators of Land Lease Lifestyle Community Performance

IV.

Will I See YOU in Richmond, VA. this Coming Week?

***

I.

WOW! Did YOU Respond? YES!

There will be a ‘by invitation only’ POWER Luncheon in KY on 1/23/2013

&

While the MHCA of North America is not a ‘done deal’ yet, may be soon

More often than not, business writers wonder if what they pen is getting through to their intended audience? And assuming so, what’s their response to said message?

Well, last week’s blog produced many welcome and happy YES responses to the first question, as well as ‘replies of substance’ to the latter one! Within hours of posting the blog a day early (Saturday) on community-investor.com, I had six commitments – from land lease lifestyle community owners, to participate in the POWER Networking Luncheon on 23 January, the first day of the annual Louisville MHShow – along with an unsolicited offer to sponsor this first major networking and educational event of the year! And five days later, that ‘interested party’ number swelled to 20, not including the three discussion leaders I’ve asked to assist me facilitating this special event. Have YOU expressed your interest yet? Get your name on the ‘invite list’ ASAP, as seating is limited to 50 LLLCommunity owners and operators.

A sampling of the first dozen responses:

• “I’m interested in the luncheon. Count me in!” MM

• “Count me in for Louisville. I sincerely appreciate you taking the initiative (as expected and appreciated). We want to sponsor the event. This is NOT a request. What time and where?” RO

• “I would be interested in attending the meeting you mentioned, to be held in conjunction with the upcoming Louisville Show.” RN

• “I’ll be there for the Louisville networking lunch. Great idea!” CN

• “Would love to have lunch with you in Louisville.” DL

• “Haven’t been to Louisville in years, but sure plan to go now, for lunch and the show. Ha! Sounds a little like going to the big city for ‘dinner and a show’. DG

And that wasn’t all! Requests continue to arrive for a reprint of the ‘Best of Times, Worst of Times’, Briefing Summary I frequently share with inquirers, mostly from outside the MHIndustry & LLLCommunity asset class. Here’s what one of our blog ‘floggers’ (readers) had to say about the briefing summary:

“I read your piece on the current state of the industry and thought it was one of the most concise, accurate and realistic analysis I have read in awhile. With new MH production down, over the last decade, there are few used homes available for purchase as rentals. Your thoughts on this matter, particularly the economics of renting homes on – site?” JD

Haven’t decided for sure yet, but am considering editing this blog feature into a lead story for an upcoming issue of the Allen Letter professional journal, maybe the February 2013 issue. Speaking of the business newsletter, are YOU a paid subscriber? If so, look to receive the stunning 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Lifestyle Community Portfolio Owners/operators Throughout North America!’) as a lagniappe (‘i.e. ‘freebie’) in the January 2013 issue. Otherwise the report alone, is retail priced at $500.00. per copy. So, if not yet a paid subscriber, and really want a copy of this new 24th edition of the ALLEN REPORT, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 ASAP. Price? Only #134.95 for a one year (12 monthly issues) subscription.

Why stunning? Because we’ve built a couple ‘extras’ into this year’s 24th edition. Not the least of which will be the List of the 25 Most Influential Persons in the MHIndustry & LLLCommunity Asset Class! Remember; many of you reading this blog are the ones who, during the past six months, identified the individuals YOU consider to be the Most Influential. You don’t want to miss this edition of the ALLEN REPORT.

And finally; regarding another topic imbedded in last week’s blog posting. MANY have phoned and written, asking for more information about the casually mentioned Manufactured Home Communities Association of North America, or MHCA for short. Here’s all I can tell you at this time:

If and when MHCA officially debuts, you’ll be among the first to know! And if indeed, maneuvered to materialize, MHCA will ‘hit the ground running, as a new, national, not for profit ‘comprehensive Resource servicing’ entity for all land lease lifestyle community owners/operators in the U.S. and Canada! As such, it’ll complement the Advocacy role of MHI’s National Communities Council (‘NCC’) division, and the eventual Research focus of the Center for Manufactured Housing Studies or CMHS.

While I said nothing last week about MHCA membership solicitation, more than a dozen of you, all LLLCommunity owners, inquired as to When, Where, How, & How Much it’ll cost to sign – on as Charter Members. While that’s getting out a little ahead of ourselves, it’s encouraging to know my land lease lifestyle community owner peers, as well as others, recognize the ongoing and intrinsic value of the print and online communication (e.g. books, monthly newsletters, weekly blog & standard PM forms), interpersonal networking events (e.g. annual Roundtable & periodic FOCUS Groups), professional property management education (e.g. nearly 1,000 Manufactured Housing Managers® or MHMs® to date), and realty deal – making opportunities, as well as other unique products and services. All this has been welcome confirmation of the past 33 years of effort, via GFA Management, Inc., dba PMN Publishing, in behalf of LLLCommunity owners and operators nationwide and in Canada. So, for the time being, a sincere ‘Thank You for that Vote of Confidence & Expectation of What’s Ahead!’ GFA

II.

‘Past as Predictor of the Future – or just Another Crapshoot?’

Have YOU Contacted ‘MHC of Arizona’ for a Copy of this MHExpose’?

As long time readers of the Allen Letter professional journal know; at least once each year, I update and share the most comprehensive ‘State of the MHIndustry & LLLCommunity Asset Class’ document available anywhere, from anyone, in the industry and throughout the property type. Sure, there are other versions of ‘State of the Manufactured Housing Industry’, but that’s generally all they’re about; that singular business type and model only. Few, if any, include key stats, trends, and more, that describe the land lease lifestyle community , a.k.a. manufactured home community.

With that said, you’ll surely want to read ‘Past as Predictor of the Future – or just Another Crapshoot?’ Why? Because I’ve taken material from the last dozen years of ‘State of the MHIndustry & LLLCommunity Asset Class’ presentations, and ‘predicted them forward’ to what we might expect, in both business milieus, a decade from now, during year 2022! Wouldn’t you like to know?

To order your copy of the MHC of Arizona newsletter containing this forward – looking document, contact Susan Brenton via (480) 345-4202 or sbrenton@azmhca.com The feature is tentatively scheduled to be published in the association’s January 2013 newsletter. It will not be reproduced in this weekly blog.

Here’re a few tidbits from this ‘futuristic start to year 2012 cum 2022:

• “One can almost (hope) to see an industry promo as straightforward as this: ‘One House, Your Home; Anywhere, Anytime! (Manufactured) Housing!’ Now all we’ve gotta do is figure out what word to use instead of ‘manufactured’….

• “This major segment of the manufactured housing industry is on the cusp of significant consolidation nationwide.” Which segment one do you think it is?

• “…how many more property portfolios are going to shrink in size, or disappear altogether, as foreclosure casualties?” That is indeed happening, you know.

• “Again, Randy Rowe, says it best: ‘Community owners (now) horizontally integrate, to include….” This part alone is a real education in LLLCommunity operations.

• “Household expenses must be paid by the homeowner/site lessee. If paid as part of the 30% HEF, a housing transaction is ‘affordable’; however, if paid in addition to the 30% HEF (PITI only), the housing deal is ‘risky’ at best!”

• “Today, more than ever before, (state) MHAssociations cannot afford expensive deadwood staffing. And…everyone must become active membership recruiters!”

• “But there’s a rub or two. The National Communities Council division of MHI has been effective since 1 January 1996, or 17 years. Two significant concerns spark controversy today and going forward.” Some ‘must read’ material for all..

OK, if you haven’t already contacted Susan Brenton, in AZ, to pre – order a copy of her association’s January 2013 newsletter, featuring this ‘look into our collective future’, phone her at (480) 345-4202 or email: sbrenton@azmhca

III.

Key # Indicators of Land Lease Lifestyle Community Performance

Just decided this particular blog posting is long enough as it stands, so will push this ‘really interesting & instructive material’ over into next week’s offering.

IV.

Will I See YOU in Richmond, VA., this Coming Week?

Sure hope so! If you’re a land lease lifestyle community owner/operator in any of the Mid Atlantic states, this’ll be the best $35.00 you’ll spend during 2012! Phone Tyler Craddock @ (804) 750-2500 or email him at tcraddock@vammha.org to register for this one day, 6 December, education and networking event. Learn all about 21st Mortgage’s cutting edge C.A.S.H. lending program for LLLCommunities; how to calculate ‘affordable’ & ‘risky’ Price Points for new and resale homes going into LLLCommunities or onto scattered building sites conveyed fee simple; my ‘trade secret’ property turnaround procedures, and much much more.

*****

George Allen, CPM®Emeritus, & MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156