All Forum Posts by: Ken Rishel

 If you are looking for a California management company, you might want to talk to Mike Cirillo, CPM at Star Management. He is about to be inducted into the RV/MH Hall of Fame. I know and trust him. http://starmanagement.com

You want us, as community owners, to advise you to lie about not getting your notice? 

 First, there has been some very solid advice given here on syndications. It actually surprised me because often this forum doesn't always get that quality of advice.

Second, there are other ways to attract investors for this space other than syndication that may be better suited to this type of investment. The caution here is the investors themselves are also different, and have different goals.

Third, have you thought of investing with existing operators as a partner? There is a considerable amount of that going on right now because it can be less risky.

No. The point to the show is to show what the manufacturers and vendors have to offer. They are the ones that pay for the show. The seminars are valuable bonus material for attendees. If someone chooses not to attend, then they will miss not only the chance to meet the people who shape our industry, but also the education and networking that goes with it.

MH Village has stepped up to the plate and invested in launching a print magazine, MH Insider to offer members of the manufactured housing industry a new source of knowledge. This is very welcome given the loss of such magazines as Community Management, Manufactured Home Merchandiser, the Manufactured Housing Journal, and others.

You can get more details at: www.mhinsider.com

For those that don't understand, this is a huge risk of capital by these industry leaders and done because they care about the industry and put their money where their mouths were. Typical of everything they do, this is a high quality, first class publication that is actually better than most of the now gone publications. They deserve our everlasting respect and thanks.

 I thought this might be of some interest:

Freddie Mac, for its part, projects purchases of 200 to 500 manufactured home chattel loans in year two (2019) of its final three-year DTS plan, and another 600-1,500 in year three (2020), subject, in its entirety, to separate approval by FHFA, which may or may not occur. Fannie Mae, meanwhile, projects purchases of 1,000 manufactured home chattel loans in both year two (2019) and year three (2020) of its DTS "implementation" plan. With approximately 90,000 HUD Code manufactured homes projected to be sold in 2017, even if no market growth were assumed during the years covered by the three-year DTS plans (i.e., 2018-2020), that period would see retail sales of approximately 270,000 HUD Code manufactured homes, with approximately 216,000 (i.e., 80%) of those homes financed through chattel loans, again, assuming no change in the composition or economic characteristics of the overall market.

Based on my conversations with the major outside lenders, there isn't much enthusiasm for what has been proposed. Two of our clients (who have related finance companies) are currently in negotiations to be a part of pilot project so they can hopefully sell off loans through a program being explored. The principal supposed beneficiary may be ROC* which pushes for, guides, and finances the sale of 4-5 star communities to the residents. The irony is that ROC is, for reasons of their own, anti chattel financing and is working with a number of "consumer" groups to try and make it illegal.

 Regarding the financing, perhaps. The first set of speakers are from MHI, but that is not their topic. I'm sure they would be happy to discuss it after their presentation. All (six) of the state associations will have booths at the show and I'm also sure they would be happy to discuss it as well.

Used homes, as you likely know more than anyone else here, are in short and shrinking supply and will continue to be so. Because this is a show mostly underwritten by manufacturers, the emphasis will be on new homes which is where more and more community owners are moving anyway. It is hard to buy a good, late model used home for less than many new homes. When you compare costs for a used 16x80 and add in the cost of locating it, moving it, rehabbing it, the used home often ends up costing more than a new one assuming you are looking for a late model vinyl and shingle home.

The types of deals that existed in the early 2000s were a one-time phenomena that may not happen again anytime soon. Both the lenders and the community owners have gotten smarter and more aggressive, and the lenders that disappeared in the late 1990s and early 2000s leaving homes nearly abandoned, or altogether abandoned are long gone.

New homes have also become more available at some very low price points. It is entirely possible to buy a brand new home and have it delivered for $25,000.00 with some of the brands. George Allen will be leading a panel of community home buyers and buyer's group to discuss methods for buying these homes at the Show and after the show.

 People attend from as far away as Washington, Oregon, and California as well as Maine and Florida. This show has been here for many years. A show was tried in Nashville back in the 90s. It was much smaller and lasted only a few years. 

This show is so large because of all the homes on display that there are only a few places in the country that can house them all inside. The other remaining show in Mississippi has the homes outdoors, which makes for an uncomfortable experience, plus the homes on display are primarily for placement on private land rather than in manufactured housing communities.

Don't forget the Louisville Show is coming up soon. January 17-19th. Hours of free educational seminars from some of the most respected names in the industry, plus over a hundred vendors and most of the major manufacturers with their homes open, furnished in many cases, and ready to examine.

Best of all, the show is free to community owners and retailers. 

Are you attending? Why? Why not?

 You do realize you revived an eight year old thread?