Commonwealth Real Estate Services is pleased to announce tentative dates for our 3rd ANNUAL - INDUSTRY SUMMIT 2005, scheduled for 8:00 – Noon on Wednesday, January 26, 2005 in Wilsonville, Oregon and 8:00 – Noon on Thursday, January 27, 2005 in Tacoma, Washington.  Our theme will be much different than in the past…..with the Summit focusing on “MAXIMIZING PROFITS IN 2005”.  Or more specifically, how to manage and fill your land-lease community through profitable business relationships and effective marketing programs. 

During the Summit we will show you specific case studies of how you can fill home sites through unique marketing techniques, alliances with specific manufacturers or retailers and relationships with specific chattel lenders.  On hand manufacturers who will introduce specific model homes designed for land lease communities, how much they will cost (turn-key), recommended retail sales prices, financing terms and total monthly cost analysis compared to apartment rents and site-built housing.  Community owners will present specific examples of how they made their community more profitable through various operational changes, and lenders will be there to introduce you to a wide variety of new financing options.

Sales techniques and advertising ideas will be shared. A panel will discuss the pros and cons of having onsite manager’s play the dual role of manager and salesperson.  All major chattel lenders will be represented as will most of the major manufactured home builders.  In addition, we will review the final 2004 industry statistics and have a regional and national business forecast for 2005.  Watch for your registration form in the mail, or visit our website for information after January 3, 2005 at www.cwres.com.

In other news…

On December 8, 2004 JP Morgan Chase & Co. announced the sale of their $4 Billion manufactured housing loan portfolio to Vanderbilt Mortgage and Finance Inc., a unit of manufactured home maker Clayton Homes Inc, which, in turn, is owned by Warren Buffett’s Berkshire Hathaway.  After the deal is completed around December 31, 2004 those Chase portfolio loans will be serviced by Vanderbilt and 21st Mortgage Corporation of Knoxville, Tennessee.  In related news, Vanderbilt and 21st have experienced significant resistance from community owners and operators who are reluctant to agree to significant concessions they have requested regarding the handling of their repossessions in land-lease communities.  We are optimistic that a compromise can be reached, but we are unwilling to agree to prolonged free rent on repossessions without some guarantee on the ultimate disposition of the home.  

It’s been another lackluster year for manufactured home sales in the Pacific Northwest.  Compared with the same period for 2003, Oregon shipments are up slightly, as is Idaho, with Washington down slightly.  The bright spot on the West Coast is clearly California, with shipments up 24%.  This surge in business continues to support Oregon, Idaho and Washington manufacturing plants which otherwise may be in jeopardy during this prolonged downturn.  The good news is that everyone agrees 2005 will be a year up 10+% or so, due largely to the shrinking of repossessions competing for new home sales, and the continued increase in availably of affordable chattel loans.  It is too soon to say how the recent leadership upheaval at Fannie Mae will affect manufactured home mortgage financing, but few people are expecting a noticeable difference.  Overall, financing is slowly and steadily becoming more plentiful-----emphasis on the “slowly”.

Northwest Pride, the Pacific Northwest’s industry image-building advertising campaign (Manufactured Homes….Built for Living, Built for Life) has produced two fantastic new television commercials that will begin airing in January of 2005.  These commercials have a very direct and powerful message, comparing the complexities and anxiety of building a site-built home versus the speed and simplicity of buying a manufactured homes.  They are the best commercials ever produced by NW Pride, which is saying something considering the quality of work coming out of NW Pride has always been top-notch.  The television schedule has been revised to consist of a wider variety of sports, news and other programming.  Be watching for these new TV spots ---- you will see first hand how well the NW Pride committee is investing its resources.

The coming year is widely expected to be an important year when it comes to government relations.  The state legislatures will be addressing several items related to the regulation and availability of our products, land use issues affecting property available for our buyers, and issues related to the closure of “parks” in some areas.  It’s good to stay up to date and support your local associations as they work hard to keep our businesses viable and competitive.  It’s not too late to contribute to your state Political Action Committee (PAC) and/or volunteer to help lobby your state representatives and educate them on our industry.  To get more involved and lend your support, contact:

Idaho Manufactured Housing Association (Executive Director Gub Mix) at 208-343-1722 

Manufactured Housing Communities of Oregon
(Executive Director Chuck Carpenter) at 503-391-4496

Oregon Manufactured Housing Association
(Executive Director Don Miner) at 503-364-2470

Manufactured Housing Communities of Washington (Executive Director Ken Spencer) 360-753-8730

Washington Manufactured Housing Association
(Executive Director Joan Brown) 360-357-5650

With the close of business on December 31st I can only say….good riddance 2004!  It has not been a terrific year for most people in the manufactured home industry, but rather a year riddled with a head-spinning combination of ups, downs, challenges and obstacles.  We remain optimistic that 2005 will be better….much better.  Let’s all work together to make that New Years prediction come true.

Greg Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101