MHSales Lessons Learned & much more….
Blog # 484; Copyright @ 1 May 2018; community-investor.com
Perspective. ‘Land lease communities, previously manufactured home communities, & ‘mobile home parks’, comprise the real estate component of manufactured housing.’
This blog posting is the sole national advocate, voice, official ombudsman, historian, research report & online communication media for all North American LLCommunities
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: ‘U Support US & WE Serve U! Goal of its’ print & online media =
to not only inform & opine, but to transform & improve MHBusiness performance!
INTRODUCTION: What’s Hot, Hot, Hot, Hot? Four of five parts to this blog posting, all pertaining to HUD-Code home sales and seller-financing within land lease communities!
The fifth and final part is also Hot! An exciting announcement and advertising opportunity ‘never before offered’, ensures your firm enjoys an enduring place in manufactured housing and land lease community recorded history!
On-site New MH Sales Lessons Learned
Here’re words of wisdom from a small property portfolio owner of land lease communities, based on personal & corporate experience since the turn of the century.
“We learned the hard way, we’re better off in the long run, waiting for the right homebuyer/site lessee to come along! The ‘winning product & finance
combination’ for us is a new HUD-Code multisection manufactured home; a substantial down payment of 10-15%; and debt-to-income (‘DTI’) ratios of 30 percent ‘front end’ (i.e. mortgage PITI & site rent together) & 40 percent ‘back end’ (PITI, site rent, other debts), relative to proven source(s) of income.”
Other factors that make this owner’s transactions ‘work’ (i.e. no defaults to date!) include: good quality Community Series Homes, not ‘bargain basement’ models available from some factories; smaller profit margins than historically available via independent (street) MHRetailers; and, thorough screening and qualifying of prospective homebuyers.
Biggest Disconnect in Manufactured Housing Today?
New HUD-Code home sales & seller-finance training for land lease community owners!
Seriously. It simply, with one notable exception, is not happening! We are no longer the manufactured housing industry where new HUD-Code homes are distributed (‘sold’) by independent (street) MHRetailers. With the turn of the century disappearance of easy access to chattel capital, for homes going into land lease communities, ‘dealers’ have also disappeared, and community owners – to survive and thrive, must buy new homes, sell them on-site, often seller-financing the transactions.
So, who trains community owners/operators to ‘buy, sell, & finance’ new HUD-Code homes on-site today? Virtually no one! Sure, factories ‘talk the talk’, but how many reps ‘walk the walk’, truly knowing and understanding the ‘basics & nuances’ of land lease community operations, where affordable product pricing – per Area Median Income (‘AMI’) & Annual Gross Income (‘AGI’) qualifiers, are concerned? Also the critical importance of ‘selling lifestyle’ and creating enduring annuity income – as key factors.
The sole exception? IMHA/RVIC (Indiana), on 8 & 9 May, at the RV/MH Hall of Fame in Elkhart, once again offers Two Days of New Home Sales Seminars & Plant Tours, for as many as 200 registrants. That’s only a week away! So don’t delay. Visit www..imharvic.org/homesalesplanttours/ Or, phone (317) 247-6258 X 14. Be there!
FLASH! Attend and I will give you a FREE 3X5 plastic wallet card featuring ‘Four Steps to Selling & Financing New Homes in LLCommunities’, & ‘Six Right Ps of Marketing’; plus a copy of the popular AMI/AGI tool titled: ‘Ah Ha! & Uh Oh! Worksheet’ for calculating affordable (& risky) manufactured housing price points. So, ‘be there’ to get the practical education and takeaway tools you need to succeed in new home sales….
To the best knowledge of this industry observer, this is the ONLY EDUCATIONAL PROGRAM on this timely and strategic subject matter, offered anywhere in the U.S. & Canada today! Don’t miss this decidedly rare opportunity to learn HOW TO effectively fill vacant rental homesites in land lease communities! Hope to see you there! GFA
MH Obsolescence Outpaces New MH Shipments (? or !)
Was hoping to have this ‘question or exclamation’ answered and quantified before now. Not! But will do so when COBA7-sponsored research is complete. In the meantime, if YOU can shed statistical light on this interesting and telling trend topic, please let me know ASAP via email@example.com. This phenomena, once proven, could be a manufactured housing production and shipment game changer.
Taking the Home Sales & Financing Show ‘On the Road’
Yes, you read that right. ‘New HUD-Code home sales & seller-financing in land lease communities’ training is so critical today, that two freelance consultants will visit your state, or firm, to team teach a one day educational program on the four part topic:
• Getting one’s property ‘ready for on-site sales’ of new HUD-Code homes
• Buying the right type and priced home, from the factory, to sell on-site
• Selling right type and priced homes on-site via marketing, salesmanship & more
• All the seller-finance alternatives, including lease-option and use of rental units
Presenters are successful, experienced land lease community owners; have taught this multifaceted topic before; and are passionate about sharing this valuable HOW TO information with YOU.
Cost? Quoted on an invitation by invitation basis, considering travel cost, and a minimum of $1,500 per diem rate for the teaching team. For more information, and or to schedule this one day educational opportunity for your members or employees, phone (317) 346-7156.
New Edition of SWAN SONG Being Published
Yes, first 300 copies disappeared between early September and late December 2017!
The second edition contains the latest (29th) annual ALLEN REPORT, a new chapter on resident-owned communities, and at least one new appendix resource document (e.g. Retrospective of Chattel Capital Cycles in Manufactured Housing).
Another ‘first’ is the addition of six full page ads, on verso pages facing the beginning page of as many chapters. These full page ads are available for $1,000.00 apiece. If you desire to have your firm showcased in the only History of the Land Lease Community Real Estate Asset Class (1970 to present day) & Official Record of Manufactured Housing Shipments (1955 to present day)’, talk to me right away via (317) 346-7156.
Once you make your decision to advertise, and we agree on your ad placement within the text, you’ll need to prepare and send an electronic file to Spotlight-Strategies for pre-press preparation. Ads must be in place and paid for by 31 May 2018.
Second edition of SWAN SONG will be available for public sale at the RV/MH Hall of Fame on 6 August 2018 at the induction festivities that day. What a truly unique opportunity for your firm to live on in manufactured housing industry history!
It’s likely this edition will be archived in the Library of Congress, the RV/MH Hall of Fame library, and Building Institute library, as well as other locations.
Advertisers will receive two free copies of the new edition of SWAN SONG, and the opportunity to buy additional copies at half price. If more than 20 copies ordered, we must know in advance, as said order(s) will likely affect (increase) the print run number.
George Allen, CPM, MHM
COBA7, division of GFA Management, Inc., dba PMN Publishing
Box # 47024,
Indianapolis, IN. 46247