30+% of New HUD Homes into LLLCommunities!
COBA7® via community-investor.com Blog # 338 Copyright @ 1 March 2015
Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’
This blog posting is the primary national advocacy voice, official ombudsman, research reporter, & online communication media for all LLLCommunities in North America!
To input this blog &/or affiliate with Community Owners (7 Part) Business Alliance®, a.k.a. COBA7®, use Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764
COBA7® Motto is: ‘U support US & WE serve U’!, and Goal of its’ three print & online publications is: ‘Not only to share information & opinion, but to transform & improve!’
Introduction to this week’s COBA7® blog posting at community-investor.com website:
The Big News in manufactured housing & land-lease-lifestyle community circles is the PROOF an increasing percentage of new HUD-Code homes is going directly into this property type! But will this Big News be sufficient to motivate factories to focus more of their marketing efforts on the ‘New Breed of MHRetailer & Lender’? Let’s hope so!
Everyone knows the Community Owners (7 part) Business Alliance®, or COBA7® was launched in early 2014, to serve the research, resources, communication, networking, deal-making, professional property management, even national advocacy needs (when necessary) of LLLCommunity owners/operators nationwide and throughout Canada. To that end, here’s an array of FREE wallet cards available for the asking. Get yours today!
Have a loved one or acquaintance fighting, suffering from, an illness or disease? Here’s a unique way to show your support and love, & financially contribute towards eradication of said health issue(s), as well. Frankly, I hope everyone gets on this brave bandwagon!
Increasing Percentage of New HUD-Code Homes Going into LLLCommunities…
Actually, we’ve sensed this trend for awhile, just couldn’t ferret out shipment statistics to proof it. Last week’s announcement at this website (Blog 337), made the matter official:
30% of New HUD-Code Homes in 2013 were shipped directly into land-lease-lifestyle communities nationwide! Expect higher %s for 2014 & 2015!
And it turns out ‘blog floggers’ too, are as excited about this newly documented state of affairs, as they responded enthusiastically to last week’s historic announcement:
“Your breakdown of the increase in market share of manufactured home sales going into LLLCommunities is encouraging, and I agree with your contention it is likely understated. COBA7® can take credit and solace from the accomplishment sir!” NB
“Truth be told, this was suspected for quite some time. Thanks for shedding light on the real selling of HUD-Code homes. The LLLCommunity owners should have the right and responsibility to offer the type of new home product available on his/her land.” Independent (street) MHRetailers and ‘company stores’ are being supplanted by LLLCommunity owners/operators who buy new homes for resale on-site, then self-finances or leases them as the local housing market supports. It’ll be interesting to see what happens among what ‘was’ the Big Four + One lenders, ‘now’ the Big Three + One’, eventually (?) the ‘Big Two + One’, or fewer, independent third party chattel capital originators. No wonder we’re calling LLLCommunity owners/operators the ‘New Breed of MHRetailer & Lender’!
As you likely know by now, the Manufactured Housing Association for Regulatory Reform, or MHARR, was equally responsible for ‘breaking this historic news’ to the MHIndustry and LLLCommunity asset class. What will be interesting now, is to see whether either or both national advocacy bodies encourage HUD-Code housing manufacturers to capitalize on this trend, and redouble their efforts to sell more new Community Series Homes into this unique, income-producing property type. Hope so!
In the meantime, ‘where & what’ do we, as LLLCommunity owners/operators, ‘go & do’ from here? There’re a number of helpful possibilities:
• Contact COBA7® for a FREE list of Business Development Managers, or BDMs, adept at selling Community Series Homes, or CSH Models, to LLLCommunities. The list also talks of WOW! Factors, a.k.a. ‘eye candy’, and the many durability features characteristic of CSH Model homes. (317) 346-7156. Call today!
• Attend the Northeast Super Symposium in Albany, NY. @ 24 & 25 March 2015. Why? There’ll be several Community Series Homes on display. Walk and inspect these CSH Models before buying to resell on-site. (518) 867-3242. And this will be your best opportunity all Spring to learn ‘What’s going on’ in the MHIndustry.
• IMPORTANT REMINDER: If a LLLCommunity owner/operator, ensure the HUD-Code manufacturer, from whom you purchase Community Series Homes, clearly cites in their Installation Manual(s), the Frost Free Foundation®, or FFF®, is an approved installation procedure for their product! Otherwise, you run the very real risk of having to replace perfectly good concrete foundations on-site, if they don’t presently extend below the frost line characteristic of your property.
• Need help establishing your compliant home finance source, likely a separate operation from your LLLCommunity? Contact Rishel Consulting for guidance to this end, via (312) 878-2802. Also obtain a copy of the 17th annual National Registry of ALL Lenders, for a comprehensive list of chattel capital sources and servicers. Indispensable. MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764
• Explore lease-option as a viable alternative in your state. In this instance, visit Spencer Roane’s websites: LeaseOptionMHSales.com & http://LeaseOptionMHSales.com
Let’s hope, this time next year, we can report 50 percent of all new HUD-code homes going directly into LLLCommunities nationwide.
Talking About Resources…
“And what cards do you carry in your wallet?”
Have you seen and or used the new plastic COBA7® ELEVEN 3X5 inch wallet card? Didn’t think so. But you’ll surely want to do so! Why? One side contains interesting factoids relating to the number and characteristics of land-lease-lifestyle communities (e.g. inventory #s, OER%, rent $, New Rule of 72, ‘cap rates’ & more). The verso or reverse side lists 11 solid reasons to affiliate with the Community Owners (7 Part) Business Alliance®. How to get your FREE ‘COBA7® ELEVEN’ card? Simply phone the official MHIndustry HOTINE: (877) MFD-HSNG or 633-4764 & leave your postal mailing address.
And hey, while you’re at it, ask for the other FREE ‘tools available to the LLLCommunity ownership/operations trade’:
• The ‘5-RPs of Marketing & Selling New & Resale HOMES within a Land-lease-lifestyle Community’ on one side; and, ‘5-RPs of Marketing & Leasing Rental HOMESITES or sites, within a LLLCommunity’, on the other side of this FREE plastic 3X5 wallet card. Distributed last year yes, but we still have some left.
• ’50 Business Card Design Ideas’ for the reverse, back or verso side of your business card! This invaluable eight panel plastic synopsis of business card wisdom is summarized from the book: Is Your Business Card a Keeper? The 2 ½ X 4” pocket guide is FREE for the asking.
• Not one, but two renditions of the GFA Management, Inc., ‘Number Crunching Cards’. One contains the ‘Cash on Cash Return methodology’, IRV valuation formula, and a loan amortization chart. The second fold over card contains every formula used in LLLCommunity ownership/operations, e.g. physical & economic occupancy, turnover, OER computations, ‘cap rates’, and the Industry Standard Chart of Accounts with characteristic OER percentages.
And, if you’ve not yet seen or read ‘A Toast to the Community Owner!’, by all means ask for it when you request the above-referenced FREE plastic wallet cards and book synopsis. You’ll be glad you did. The ‘toast’, actually a poem, honors the memory of the late LLLCommunity portfolio owner/operator Bud Zeman of Chicago.
A Unique Way to Honor & Support Loved Ones Fighting Illnesses
Our oldest granddaughter has been fighting a difficult and potentially debilitating disease for a few years. Our immediate and extended family are united in efforts to help her through periodic surgeries, recoveries, treatments, and more.
I recently came across a website simply called BRAVELETS; actually, bravelets.com. Anyway, they feature several lines of metal and leather bracelets designed to express support of individuals afflicted with one or more of a dozen or so illnesses. You pick out the bravelet design and illness on your mind, or in your heart, at the time, and purchase for $35.00. The Bravelet folk then contribute $10.00 of your purchase to the foundation or organization most involved in combating ones’ friend or loved one’s illness.
Carolyn and I now both wear bravelets in support of our granddaughter’s fight against her illness. Surely you have someone who deserves your love and support as well.