Adventures in Mobile Homes

My Last Blog Post...

2011-02-08T20:50:00.000-08:00

Hi all!

Thank you everyone for taking the time to read my blog about my insights and experiences in the world of mobile home investing. I want to thank each and everyone one of you here who has even once read any of my posts - your time and input is well appreciated.

As all good things must come to an end, so must this blog here. And, so - my last blog post.

Here.

On blogspot.

Though, I will continue with the blog - it has just moved. Hooray!!

Blogspot has been a great blogging platform for me - it's served me well. But, I have decided to change platforms (with some encouragement by my good pals Shae and Julie, thanks gals!).

So, without any further adieu - the new site location:

www.adventuresinmobilehomes.com

(Note: For those who are subscribers, no need to do anything. I just need to make the update on my end, thanks for your continued support!)

Hope to see you all there, thanks for reading!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Assembling/Disassembling A Storage Shed

2011-01-25T21:44:00.000-08:00

Investing 101: Does Mobile Home Investing Really Work?

2011-01-21T22:55:00.000-08:00

So many times, folks have asked me the question, "Does mobile home investing really work?" Check out the video to find out my answer, thanks for watching!

Video Link

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Amperage

2011-01-18T20:41:00.000-08:00

Investing 101: What Can A Mentor Do For You?

2011-01-14T23:11:00.000-08:00

There are many things a mentor can do for you. And, there are many things a mentor cannot do for you. Check out the video to find out more, thanks for watching!

Video Link

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Note Buyers

2011-01-11T22:29:00.000-08:00

Investing 101: So You're Interested In Mobile Home Investing But Everyone Thinks You're Crazy

2011-01-07T22:48:00.000-08:00

Honestly, what you do does not define who you are - you define who you are. Why? Check out the video to find out, thanks for watching!

Video Link

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Amortization Schedule

2011-01-04T22:06:00.000-08:00

Special Holiday Video

2010-12-23T22:51:00.000-08:00

As we all know, Christmas is a time for giving. So, today I want to share with you my recommended holiday gift list for that special real estate investor in your life. Check out the video to find out more, thanks for watching!

VIdeo Link

Links Mentioned in the Video;

Shae Bynes, Good Faith Investing
(Note: My book review of "Financial Freedom GPS").

Steph Davis, Flip This Wholesaler
(Note: Steph's book, "Flip This Reo").

Julie Broad, Rev N You
(Note: Julie's coaching programs and courses).

Joshua Dorkin, BiggerPockets
(Note: BiggerPockets Benefits of Membership and Site Tour)

(Note: In observance of the holiday season, the blog will be on hiatus next week. Happy Holidays!)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Business 101: Why Persistence Is So Important

2010-12-17T23:09:00.000-08:00

In business, it's so important to be persistent. Why? Check out the video to find out, thanks for watching!

Video Link

(Note: In observance of the Christmas holiday, there will not be a "Terminology Tuesday" post next week. Though, there will be a special Christmas video. Stay tuned!)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Final Walk Through

2010-12-14T19:22:00.000-08:00

Hiatus This Week - Out Sick

2010-11-30T19:34:00.000-08:00

Hi all!

I hope you all had a good Thanksgiving. Mine was relaxing, filled with good food and many, many movies! As for "Black Friday," I sat it out this year. Even with the mad rush near Thanksgiving, I just did not want to deal with all of the choas!

In any case, I've been under the weather lately. And, I think it's best for me to get some rest and just take it easy. I just wanted to let everyone know that the blog will be on hiatus this week. It should be back up and running once I get better. Have a great week everyone!

p.s. For those of you who have had questions about the topic of private money, feel free to check out my pal Julie's article she wrote on the subject this week and also my pal Shae who will be hosting a free teleseminar on her experiences finding and working with private money lenders. Thanks for reading! :)

Happy Thanksgiving! (Plus, a Quick Update About Working With Parks)

2010-11-23T17:35:00.000-08:00

I just wanted to wish everyone here a "Happy Thanksgiving!" It's definitely been a madhouse on the road (as well as in the grocery stores!) And, not to mention the anticipated event afterwards - "Black Friday." Here we go again!

In any case, I also wanted to just give you all an update on this deal. Last I spoke of it, we were waiting on the park's approval. So, what's going on?

Well, basically the park has not heard back from the current landlord. And, this is the only thing holding us up. Before I even gave the park the "green light" on my end for these buyers, I attempted to contact the current landlord with no luck.

So, the week before last the park manager calls me up telling me she finally heard back from the current landlord. And, guess what? It turns out they are reluctant to confirm the buyers' payment history without a 30 day notice from the buyers. Now, the buyers did not want to give their 30 day notice until they knew for sure they would be approved. Very understandable.

Last week, the buyers dropped off their 30 day notice to the current landlord's office (as they are never in) and dropped off a copy to the park manager (per my advice). Afterwards, the park manager (and me as well) attempted to contact the current landlord with no luck. We both keep getting voicemail - no return phone calls.

Well, it's the end of the month and the buyers' lease is expiring. And, the buyers don't know what to do. They call me up for some advice. And, I tell them calmly "Let me give the park manager a call. We'll work this out."

Before even calling the park manager I already had a plan. Since I have a background in property management, I knew all the park needed to do was to confirm and verify the buyers' payment history. Usually, that is done (usually in writing) by the current and/or prior landlord.

Since the current landlord has been unresponsive, I knew another way to verify this information - get the buyers to submit copies of their lease, receipts, and bank records of all funds paid to their current landlord.

So, I called up the park manager and asked, "Would it help? Their ready to go and we're just waiting on this last piece of information." And, you know what the park manager said? She said, "That would be great. Anything they can provide to me would help. And, we'll get this through."

(Note: Since I have a very close relationship with the park managers, usually it's very easy for me to work with them when trying to go through the logistics of getting buyers approved. This is why it's so important to focus on building strong relationships).

In any case, so that's that. The buyers are getting the needed paperwork together to submit to the park manager. After that, we should be good to go.

So, one thing some here may wonder - why would a current landlord be reluctant to withhold information on a tenant? Well, the reason being is the economy - it's a tough market out there (especially for rentals). And, most of the buyers I work with are long term tenants. (In this case, 3 years). So, it's no wonder the current landlord was reluctant to verify their payment history.

(Note: With the economy the way it is, this will probably not be the last time I run into this issue. In fact, I had a difficult time with a similar situation on this deal).

Regarding any funds owed to the current landlord, I advised the buyers that's what their security deposit is for. (I guess having a background in property management helps!) They were concerned they would be charged another month by the current landlord.

But, I told them usually when doing move outs - the security deposit is supposed to cover any funds owed to the landlord. (That is why property managers usually collect at least 1 month's rent as a security deposit). If nothing is owed, then they are to receive the deposit back.

(Note: Of course, if there is any damage to the unit and/or other charges due - they would be charged additional funds to the tenants).

When screening and working with buyers, above all else - the quality I look for is honesty. If the people I'm working with are honest and upfront, then usually I don't have many issues with them.

(Note: Of course, I need to go through my usual process of verifying and confirming all information. But, even if there are people who tell me they can come up with a lot of money to put down - if they are not honest and I feel I cannot trust them, I WILL NOT work with them. That's just me).

In any case, I just wanted to give everyone all an update. Hope you all have a good and Happy Thanksgiving!

p.s. For those who are in the holiday spirit, check out my pal Steph's Thanksgiving contest. She's holding a contest to see what motivates others, it's really neat! :)

Big Announcement, Please Watch! (thanks!)

2010-11-18T22:27:00.000-08:00

I have a BIG announcement to make. Actually, it's a HUGE announcement. Please check out the video to find out more, thanks for watching!

Video Link

Thank you for taking the time to watch this video. Here's the link to the survey mentioned. Thanks for your support!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Insurance Deductible

2010-11-16T22:23:00.000-08:00

Business 101: Who Has the Most Interest In Your Business?

2010-11-11T20:31:00.000-08:00

Who has the most interest in your business? Good question. Check out the video to find out, thanks for watching!

Video Link

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Smoke Detector Verification

2010-11-09T21:41:00.000-08:00

Business 101: It's Not What You Say, But How You Say It That Counts

2010-11-04T22:21:00.000-07:00

So many times there have been folks who have told me they have tried so hard to find mobile home deals. Though, they are unable to find any. So, I decided to create this video. Hope it helps, enjoy!

Video Link

Thanks for watching!

(Note: By the way, has anyone ever had "minced meat pie?" I'm a bit afraid to try it. As a kid, I grew up on fast food - I hardly ever had a home cooked meal. So, meeting country folks and learning about their home cooked meals is a very new yet interesting concept to me! :)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - The 50% Rule

2010-11-02T22:15:00.000-07:00

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

Since there have been many folks who have asked about the holding costs involved when buying and holding properties, I've decided to touch upon a small little rule I have learned as a prior landlord - the 50% rule.

So, what is the 50% rule? Here's a video from a fellow BiggerPockets member that explains it in more detail:

Video Link

As a prior landlord, I can tell you - the 50% rule is true for most cases when buying and holding properties. To be honest, a lot of folks who buy and hold properties forego a lot of small expenses when determining their overall net profit - it's really important to factor in everything to see a realistic picture.

So, what does this have to do with mobile home investing? Well, a lot of folks have asked me this question, "When you mention 'cash flow' in your case studies, is that what you really net? Or, are there other expenses taken from that amount?"

The answer to that question is yes. Yes, I do net that amount of cash flow. And, no there are no other expenses taken from that amount. I receive the same amount every month - rain or shine.

And, this is the difference between ownership (aka being a landlord) and control (aka being the bank). To me personally, it's not about ownership - it's about control.

As a prior landlord, I found it extremely difficult to keep up with the costs of ownership (i.e. maintenance costs, rising tax assessment values which in turn raise property taxes, increases in insurance, etc). Every year, it seemed that costs would increase. And, these increases would eat into the cash flow I received.

Even more, on top of that I still had to deal with the debt service (aka what I owe the bank). So, who got paid the same amount every month no matter what? It wasn't me - it was the bank.

So, the difference with doing "Lonnie" deals is the fact that there is more control and less to maintain. With mobile homes (as personal property), they are seen as depreciating assets in the eyes of the government. Think about it kind of like a car - their values go down year after year. Well, it's the same as with a mobile home.

Now, many of you may be thinking "Well, that's not good." And, it has been one of those points challenged to me. In fact, I have a good friend who questions why I even bother buying depreciating assets. In her eyes, if the value goes down year after year - then what's the point?

Well, for me personally it's not about appreciation - it's about cash flow. And, so what if the value goes down year after year. Each month, I am receiving the same amount of cash flow no matter what. But, this is what's important to me - cash flow will feed me, appreciation will not.

Though, my friend (who is extremely smart with an MBA from an Ivy league school) begs to differ. Her thought is to buy for appreciation because she tells me - that's where the real money is at.

Furthermore, she thinks the effort and amount of time involved put into this business should reflect the dollars earned. To her, my cash flow earned is really not that much as her earning 100k flipping a home (that she needs to wait 5-10 years to appreciate). But to her, it's worth it.

(Note: Did I mention? This is a friend who has tried to get me to invest for appreciation - she tells me I am missing the boat on a lot of potential properties that will appreciate in the future if I don't buy now).

In fact, she even challenges me in saying that she will become a millionaire because if she buys 10 homes and they appreciate 5-10 years from now and she receives 100k from each of them - she will be rich. So far, she is halfway to her goal. Though, all her homes are negative cash flow.

(Note: I have no desire to make a million dollars in one lump sum. I invest for cash flow, not appreciation).

Every month, my good friend has to shell out money to cover her expenses. But, in her mind - it's ok. She tells me she will make it all back - just watch and see. And, that in this game - she is the turtle and I am the hare. She reminds me the turtle is the one that wins in the end.

Now, in school - I wasn't really good at math. But, it seems to me that having multiple negative cash flow properties isn't really for me. And, having properties that cash flow every month is better. But, that's just me.

The reason why I enjoy doing "Lonnie" deals and investing in mobile homes is because the expenses tend to decrease, not increase. Every year as the value of the mobile home goes down, the taxes go down with it. And, since there is essentially no debt service to pay (since they are bought with cash) - the rest is pure cash flow. In essence, I get paid today - not tomorrow.

For those out there who have been contemplating the mobile home biz, this has just been my experience. Different things work for different people. And, I can honestly say - mobile home investing has worked for me.

Happy investing!

(Note: If you've been thinking about mobile home investing but still are not sure, this article may help).

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Book Review: "Financial Freedom GPS"

2010-10-28T19:50:00.000-07:00

(Note: Since there have been folks who have asked my recommendations on business and finance books to read, I've decided to go ahead and start a new series of posts - book reviews).

Sorry to be out of the blog scene folks. Just getting back from my retreat here. It was nice to get away for awhile, it really gave me some time to really think. And, relax! :)

Barely getting back into town, it's been pretty chaotic. The phone has been ringing non-stop, lots of work to do. By far, fall and winter have been the busiest times of the year for me in the mobile home biz. And, already I'm working 2 potential mobile home deals. Work, work, work!

In any case, I thought I'd check in with you all and share with you a special book that just came out by my pal, Shae Bynes, called Financial Freedom GPS.

(Note: For those of you who are new to the blog, Shae was deemed one of the "Best and Brightest Women In Real Estate Investing").

So, what is the book about?

Well, the book is about a topic that is near and dear to my heart. And, that is the topic of financial freedom .

For me personally, the concept of financial freedom is so important. Why? It's simple. Financial freedom allows me to do the things I want to do, not have to do. And, Shae has laid it out here in this book step by step.

I have personally gone through the book. And, I must say - it's very well done and thorough. For those interested in achieving financial freedom, this is a book that will take you step by step and guide you on your path to get there.

What I really like about the book is that it really makes you think and opens up your mind to other ideas. Honestly, there were a couple ideas in the book that I had not been aware of. And, I especially enjoyed the resources and exercises Shae included in the book.

Now, I'm going to be honest with you. The path to financial freedom is not easy. And, it's really a process.

Basically, the transition involves from going full-time at a job to going part-time. In my opinion, the key is to slowly build up income streams to make things financially easier for you and your family.

Once the income streams start coming in, it will allow you to work less at a job that you have to (in order to pay the bills). And, in turn will allow you to focus your efforts in creating income streams so you can have more time to do the things you want to do, not have to do.

This is the transition many successful investors I have met have gone through. Some even continue to work part-time, not because they have to but because they want to. In fact, my mentors now all went through the same transition. One in particular still works part-time still enjoying the type of work they do.

(Note: I have 3 mentors for the mobile home biz. A local, regional, and national mentor - all together with over 50 years of experience in the mobile home biz. I've learned a great deal from each one, they have really helped me along the way. Mentors are definitely important members to have on your team).

For those who are interested in achieving financial freedom, this book is a great guide and road map. Shae has laid it out all here in the book, step by step. It's packed with a lot of useful information, resources and exercises to help you on your path to financial freedom.

(Note: It only took me 3 "Lonnie" deals for me to personally have a passive income stream to cover my housing payment. Seriously, the concept of financial freedom is all very simple. Though, it's the planning and the execution that takes work).

The book is very affordable, it's definitely worth the price. And, Shae is also including a Fast Action Bonus for those who order the book before Friday at midnight: 2 Live Q & A sessions where you can ask Shae any questions that you have after reading the course material!

For what it's worth, I really think this is a great book. And, the Fast Action Bonus Shae is offering just goes to show her support and caring nature for others.

If you've been thinking about and/or wanting to achieve financial freedom, I definitely recommend this book. Check out Financial Freedom GPS today!

p.s. Yes, this is an affiliate link. But, I assure you - I wholeheartedly believe in the book and believe it will help those on their path to financial freedom. Happy investing!

"Battle of the REI Blogs" Contest: Please Vote!

2010-10-18T14:08:00.000-07:00

Hi Everyone!

Hope you're all having a great week. I've been doing good on my retreat up here in the woods. It's been really nice to get away and have time to think and relax.

In any case, before I left, my good pal, Patrick Riddle, asked me to participate in a pretty cool contest he's having called "Battle of the REI Blogs." So, I decided to take part and join in on the fun!

Video Link

Here's the info on it:

The top real estate investing bloggers have been assembled to compete to see who's blog is #1 in the eyes of our subscribers. So, it's Adventures In Mobile Homes vs. 11 other real estate investing blogs.

My good pal, Patrick Riddle, is hosting the contest and has some great prizes that he's giving away. Here's where the contest gets pretty cool:

The winning blogger gets to award 5 of their voters (it could be YOU!) a FREE Private Money Blueprint Home Study Course (valued at $997 each!)

So, I am writing to seek your help. I'm up against a pretty good list of heavy hitters, the "A List" of real estate investing bloggers and I'm seeking your vote.

(Note: For those of you who missed it, I made the list of The Top 20 Real Estate Investing Blogs).

Please click here to cast your vote.

While you're over there, feel free to check out the other bloggers participating. The overall premise of the contest is to "get to know" the best of the best of the real estate investing bloggers and connect with them through social media.

When you head over to the main contest page, you'll see that each blogger participating has a profile that includes a link to their blog and links to their social media profile pages.

Once you decide who your favorite is all you have to do to vote is scroll down to the very bottom and enter your vote in the "comment" area.

Please click here to cast your vote.

Thank you all for your support and may the best blogger win!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Podcast: 5 Things You Can Do to Learn Your Market When It Comes to Mobile Home Investing

2010-10-07T06:13:00.000-07:00

Since a lot of folks have asked me questions about the topic of learning the market, I decided to go ahead and make up an audio podcast on this particular subject. Also, I've decided to be a bit more animated with the blog since some people really liked my video presentation for Must Know Investing.

(Note: If you haven't caught the presentation yet, I encourage you to check it out. There's a downloadable audio "goodie" in there as well. Thanks for reading!)

So, without further a due here's the podcast:

(Note: For those interested, here's the link to my podcast page if you'd like to be updated on future podcast episodes. Thanks for listening!)

(Note: Thanks everyone for taking the time to read and support my blog. I wanted to leave everyone with a "goodie" before I take off - the blog will be on hiatus for the next two weeks. I'm going to be taking off this weekend to spend some time on a retreat in the woods. I usually set aside some time every year for retreats to be able to think and reflect. Will be back soon. Stay tuned!)

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Trip Insurance

2010-10-05T06:03:00.000-07:00

Program Review: "The Mobile Homer Program for Mobile Home Investors"

2010-09-30T06:29:00.000-07:00

(Note: Recently, I've had a lot of folks contact me asking what the difference between some of Lonnie's as well as other mobile home investing materials out there and which one I'd recommend the most. So, I've decided to go ahead and start a new series of posts - book and program/course reviews).

(Note: This program review came as a request from several readers of this blog so I decided to go ahead and review this program).

I had not heard about this program until it was pointed out by several readers of this blog requesting my thoughts on it. Basically, this is a program created by Frank Rolfe and Dave Reynolds in an effort to bring together both "Lonnie" dealers and mobile home park owners.

Now, I've personally met Frank - he really seems to know his stuff in the world of due diligence and the mobile home park world. At one time, Frank was actually one of the top owner operators of parks in the U.S. His main specialization (as I understand it) seemed to be buying low end parks and turning them around. It seems to me that he profited mostly from the re-sell of the parks. By the time I met him, he had liquidated the majority of his parks.

As for Dave, I have not personally met him. Though, I have listened in to a few of his educational type calls.

However, there seems to be a bit of controversy from their view of buying and doing "Lonnie" deals in other people's parks. Actually, there was an article written that sparked a bit of controversy among them and even Lonnie and his followers. It really made quite a buzz in the mobile home investing world.

(Note: Unfortunately, that article can no longer be found. And, there was a thread on one of the forums with a very heated debate - it has been removed).

Though, their view can still be found in the text of this program:

And, so the "Mobile Homer Program" was created. Basically, the program has a few options - 1) sign up as a mobile home park owner looking to work with Lonnie dealers to fill vacant lots; 2) sign up as a Lonnie dealer looking for mobile home park owners to work with who need lots filled; or 3) sign up as a lender loaning money for deals with the Mobile Homer Program.

Here's a snapshot of the text regarding the program:

Furthermore, the program goes into detail about some of the "flaws" in a "Lonnie" deal that may make the business model unprofitable:

And, then how the "Mobile Homer Program" can be profitable for a "Lonnie" dealer:

Basically, the program is designed for park owners to help give "Lonnie" dealers incentives to do business in their parks. And, also for "Lonnie" dealers to find parks to work with. In addition, it allows others to act as private lenders who wish to be more "hands off" to lend funds to park owners for the deals by participating in the "Done for you Program."

So, the question that has been posed to me has been - what do you think of this program? And, do you think it's worth it?

Well, from my perspective I would say - it really depends. Again, this comes back to really knowing your market.

First, you need to know - what is your comfort level? This includes everything (i.e. the types of parks you feel comfortable working with, the kind of clientele, etc). Are you comfortable working in more low end parks? Or, do you see yourself working more with high end clientele?

Again, it's all a matter of personality and comfort level. And, the only way you'll know this is by visiting the parks in your area.

For me personally, I feel more comfortable dealing in high end parks due to this experience. And, regarding incentives - I've already created relationships with parks who do give me incentives to work in their parks. For example, one of my favorite parks will cover my moving costs if I move a home into the park. Another park gives me free lot rent until the home is sold. But, it's only because I have a relationship with these parks that these incentives exist.

And, that's really what I've found is the importance of this business - creating and maintaining relationships. To a point, this business relies on my ability to create and sustain relationships. As Lonnie has said before, it's really a people business.

As for the program, I really urge folks to first check out your local area and learn your market. After you've learned your market, then you can decide what kind of parks you want to work with and what kind of clientele really works with your personality.

(Note: When you go out and visit parks, the types of folks already living in the parks will be the kind of clientele the parks attract. When I first started out, I made it a point to go out and talk to the park residents to get a feel for what types of folks live there).

Once you know the market, if you're thinking about this program at least you'll be equipped with market knowledge when you check out their list of parks to work with. Believe me, I've been invited before by individual park owners to work their parks. But, in a lot of cases (this is just my personal experience) the types of parks have either not matched my personality (more lower end parks) and/or there's not enough demand in the area (as I saw it) to attract the types of clientele I felt comfortable working with.

For me, what worked better was scoping out my local area and choosing the parks I want to work in. Personally, I'm much more of a small, mom and pop operation (just like Lonnie). I don't really like to work in large teams - it just gets too complicated when there are too many people involved. But, that's just me.

Being part of a program like this will put you more in a "team" oriented role. So, it's just something to keep in mind. Do you like working in large groups with more people? Or, do you prefer a smaller operation?

Lastly, if any of the folks out there do decide to pursue this program - I would just make sure that you really know the market before committing to work with any of the parks.

Here's the thing, the park's main goal is to get their lots filled - they derive income from the lot rent. And, once a home is on the lot or you purchase an existing home on their lot - there's a commitment. Just be sure, you really know the market and the demands of the area before committing. Once the home is there and/or you buy an existing home on the lot, you're kind of stuck (in a way) until you sell the home.

I hope this review has helped and given a bit of insight for those who have been thinking about the program. I'm going to leave you here with an inspiring video for those who have been thinking about mobile home investing.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Terminology Tuesday (Tricks of the Trade) - How to Clean Like a Professional

2010-09-28T05:48:00.000-07:00

Investing 101: Negotiating and Making Offers

2010-09-23T00:25:00.000-07:00

Many times I have been asked by folks the following question, "How do I negotiate and make offers?" And, many go on to tell me they just cannot find cheap mobile homes for $3,000. So, what's the problem?

(Note: For those interested, I touched upon the concept of finding cheap homes in this post).

Well, the problem is simple. In fact, it's so simple that many investors fail to miss the mark on this one simple concept - they simply fail to realize the importance of learning how to create strong relationships.

Many people are taught to go out and market - use all the techniques out there in order to get the phone ringing and generate leads. From bandit signs, direct mail, internet marketing, cold calling - you name it; these are all techniques taught to market and generate leads.

But, here's the problem. Once they get the leads and the phone to start ringing, many fail to do one very important thing. Above all else, they fail to see the importance of learning and creating strong relationships. And, instead focus on the prize - the home itself.

By focusing solely on the prize, these folks end up in a battle against the seller. In essence, it becomes a price war. And, some may win but in most cases they lose. To sum it up, it becomes a win/lose situation.

Say a seller has been talking to one of these investors trained in the quest to buy a cheap home - who focuses solely on the home and the price. After meeting with the seller, nothing has come of it - the price becomes the main issue. The seller feels they cannot trust this investor who seems to care only about the home and getting the best price for themselves. Nothing happens. There is a standstill. Both depart their separate ways.

Then, the seller talks to someone different - someone who is not interested solely in the price or the home, someone who is interested in creating a relationship and trying to create a win/win situation for all.

In addition, this person already has a very good relationship with the park manager not to mention several homeowners already in the park. In fact, it is the park manager who actually referred the seller to this new person - it is the park manager who advised the seller to work with this person to come up with a solution to help sell their home.

Who do you think the seller is going to trust more - a complete stranger or someone referred by the park manager (who they have known for years) or other fellow homeowners? I'll let you decide.

My point is that most fail to realize the importance of learning how to create strong relationships. Folks, it's not just about the deal - it's not just about buying cheap mobile homes.

It's about people and helping people come up with a solution to their problems. And, the only way for sellers to want to work with someone is knowing they can trust that person. But, the only way they can know this is if that person does one thing. And, what is that? CARE.

By having a strong network who is there to tell others how much you care and can help folks out, you will have an even stronger position above anyone else. The name of the game is learning and valuing the importance of creating strong relationships. Without creating strong relationships, it's going to be very hard to be successful in this business.

Believe me, I know. In this earlier post, I talked about a story where I was taught the importance of building strong relationships and why I continue to do it.

As a former business to business sales executive for a Fortune 500 corporation, I learned from the best at a very early age. Many of my peers were decades beyond me. Though, I was there for one reason alone - I knew how to get in the door and build relationships. In learning and valuing the importance of building relationships, this led to more business.

We all know that business is built on relationships. And, relationships need a solid foundation in order to survive - that foundation is trust.

In writing this "Investing 101" post, I urge folks to revaluate what you are doing and figure out the strength of the relationships you are creating. Are you doing things solely for the purpose of self-interest? Or, do your actions truly help others? How strong are the relationships you have created? Do you have a lot of mediocre type relationships or do you have fewer stronger type relationships?

In the end, a successful business is really a long term commitment. By valuing and learning the importance of creating relationships, you will put yourself ahead of the rest. Yes, this does take time. But, in the end - it's definitely worth it. Those who put in the time and the effort, succeed. Those who don't, fail.

I'm going to leave you here with a quote by Michael Scott from one of my favorite television shows, "The Office," that inspired this post.

"Everyone always wants new things. Everybody likes new inventions, new technology. People will never be replaced by machines. In the end, life and business are about human connections."

(Note: For those interested, this quote was from Season 4, Episode 2).

Happy Investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday (Tricks of the Trade) - How to Lay Brick

2010-09-21T05:45:00.000-07:00

Deal or No Deal: 3/2 Singlewide Mobile Home In a Park (Free Mobile Home)

2010-09-16T05:45:00.000-07:00

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is for an early 1980s, 14x76 singlewide mobile home in one of the parks I like to work in. This opportunity actually found me while I had taken a trip to visit the park.

So, I was cruising the park just checking out the latest activity when I spotted the park manager walking around. He noticed me, I waved back, and said "Hey, what's going on?"

We chit chatted for awhile. And, we went for a walk around the park.

In any case, we talked about a lot of things. And, in conversation the park manager told me about a home the park had taken back. I learned this home had been vacant for months. And, the park just didn't want to fix it up and deal with it. He told me to take a look at it. And, if I were interested - the park would give it to me for free (based on his recommendation).

(Note: This is the power of networking and really having a strong team).

Now, I know there are folks out there who have heard of free mobile homes. And, I'm here to tell you - the term "You get what you pay for" usually holds true in these type situations.

The first thing I asked the park manager was, "Be straight with me. How much work does this thing really need?"

And, with that the park manager just smiled at me and said "I'll let you decide. Just take a look."

Once I heard that, I knew this probably needed a lot of work (aka a junker). I just knew it. But, I decided to go check it out anyways. And, here's what I found.

As soon as I pulled up to the home, I had a really bad feeling (through my "Does it Look Like a Deal" analysis).

Outside of home

Mold and flashing issues near top

Back of home with wood board covering up area of home (possible damage to paneling)

Hornet's nest near water heater panel

(Note: This is one sign the home is older (i.e. 1980s) when the water heater panel is accessible from the outside of the home. In most newer homes, the water heater panel is accessible on the inside (usually near the utility room or in the master bedroom).

Inside of home

Living room area

Ceiling (water) damage

Bucket of water underneath ceiling damage

(Note: I ran into the bucket while looking up at the ceiling and almost tipped it over - it was filled to the brim with water!)

Inside bedroom closet ceiling damage and mold issues

Bathroom floorwork needed

Insulation in tub

After viewing the home, the park manager asked what I thought. I said, "Seriously, did you think I'd even want this with all the work it needs? Even if you paid me, I wouldn't even want this!"

And, with that the park manager laughed. He told me he knew I wouldn't take it. But, just wanted to get my reaction. And, told me "Yeah, we all know that things that are free and cheap are not all what they turn out to be. We'll probably just sell it to an investor for a couple thousand dollars and they'll think it's a deal." And that was that.

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday (Tricks of the Trade) - How to Clean Mini Blinds

2010-09-14T06:35:00.000-07:00

Investing 101: Is Mobile Home Investing Right For Me?

2010-09-09T06:06:00.000-07:00

So, I was all set to write another "Deal or No Deal" case study type post today but then I changed my mind. I'd like to take a moment and get away from the mobile home case study series for this post and write about something that has been on my mind lately.

Recently, there have been folks who have contacted me about their interest in mobile home investing. Many have told me they have heard a lot of stories from other investors about mobile homes being the best type of investment vehicle out there and also the one having the best return on investment.

But, the question that is asked of me is this "Is mobile home investing this great? Can I make a lot of cash flow from investing in mobile homes and have great returns? And, if so do you think it's for me?"

In all honesty, I cannot answer that question. Why?

The reason being is that it's different for everyone. I don't think mobile home investing is the best type of investment vehicle and has the best returns for everyone - it just doesen't work out that way. I've said this before, it's all a matter of personality. What works for one person, may not work for you. And, vice versa.

I'm sure this may seem kind of odd for me to say being that I write a blog about mobile home investing. But, the goal of my blog is not to convince others to invest in mobile homes. The goal of my blog is to share my adventures and stories about my experience investing in mobile homes. That is all.

Personally, I don't think folks out there should base their decision to go into mobile home investing solely on stories they've heard from other investors about all the money they have made and the types of returns they've made from mobile home investing.

Honestly, this business takes work - hard work. And, success doesen't happen overnight. Just like any business, it takes a lot of time and persistence to make it work. But, when it does - it can be worth it.

The important thing is to be mentally prepared and ready. When I first made the decision to go into mobile home investing, I knew this is what I wanted to do. I made many sacrifices, I gave up a lot of things.

(Note: For those interested, feel free to check out this article on why I enjoy investing in mobile homes).

I remember many a nights reading, studying and then taking action on what I had learned. It took time, a lot of time. And, there were moments where I kept asking myself "What in the world am I doing? Is this going to work?" But, I kept pressing on.

I took the time to really learn the ins and outs of the business. And, did what I had to do to get to my first mobile home deal - it took me almost a year. After completing my first deal, I can say I really learned a lot. Though it took a lot of time and hard work, I can honestly say that I found that I did enjoy the business.

And, this is what it's all about. When folks have asked me about whether or not they should pursue mobile home investing, I tell them straight out - try it out and see if you like it. Honestly, not everyone that has tried it has liked it.

I remember one investor in particular who did one "Lonnie Deal" (a fellow rehabber) and told me it just wasn't for him. He told me if he was going to spend all his time on something, it would be doing something that he enjoys - rehabbing properties and selling retail for a lump sum. He just didn't feel that collecting a check for a couple hundred dollars was worth all the time and effort. And, that's ok.

So, for those who are interested in mobile home investing I highly urge you to think about why you are interested in it. If you are interested in this business solely for the money, I urge you to think it through.

Honestly, there are much more easier ways to make a lot of money - it's called having a high paying job. Being an entrepreneur and starting a business takes a lot of work. The rewards can be great but the payoff does not happen overnight.

In Thomas Stanley's book, The Millionaire Next Door, he even states that many millionaires think it much easier for their kids to go to school, become a professional and have a high paying job than to go out and start a business.

If I were interested solely in making a lot of money quicker, I'd go out and do the same thing. Though, I did not.

(Note: Growing up, I was always an entrepreneur at heart. I had many entrepreunerial ventures as a kid and this followed me even as an adult - it's always been a part of me).

This all really comes back to really knowing who you are and what kind of life you want for yourself. For me personally, I know I've always been an entrepreneur. That is why I keep saying for me it's not just about the money. It really isn't.

(Note: For those who are interested in why I went into mobile home investing in the first place, feel free to check out this video).

I had a chance to take the path of the kids of The Millionaire Next Door. As an undergrad, I was chosen for a fellowship in a pre-MBA program at a top tier business school.

Though, my mentor (who was already enrolled and attending the MBA program) told me - I just didn't belong there. She told me this just wasn't for me because she saw the "entrepreneur" inside of me.

(Note: Even as a student with classes and a working job, I still had the time to have my entrepreneurial ventures. And, yes I ran these ventures out of my apt - my roommates thought I was crazy!)

My mentor encouraged me to go out and pursue my entrepreneurial ventures in the real world as business school did not teach this - they taught management. Furthermore, she went on to tell me that business school does not churn out entrepreneurs - they churned out managers, investment bankers and consultants. So, I took her advice to heart. And, here I am.

So, my point is to really take the time to know who you are and why you want to do the things you're interested in. Honestly, it's really easy to get caught up in all the hype of things (especially in real estate investing).

Though, at the end of the day what's important is doing the best thing for you and your family. And remember, the right thing to do can only be decided by one person. And, that is you.

(Note: Thank you for taking the time to read this post. Though it seems pretty deep, I felt the need to say these things due to all the inquiries I've received from folks seeking advice on this topic).

I'm going to leave you here with a video from Seth Godin that inspired this post.

Happy Investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Terminology Tuesday (Tricks of the Trade) - Covering Up a Hitch

2010-09-07T06:19:00.000-07:00

Investing 101: Why I Focus on Building Relationships

2010-09-02T05:54:00.000-07:00

(Note: Image courtesy of LumaxArt)

Lately, I've been contacted by many folks who tell me they are having a hard time finding deals in their market. And for those who have found a potential deal, many have told me they just don't know if it's a deal or not. So, things don't really work out.

Listening to these stories and the struggles involved really brings me back to my early days in sales. In the beginning, I really wanted to make things work. So, I asked the top sales rep for some advice. And, you know what he told me?

He told me the key to being successful was to stand apart from the rest - don't be like everyone else. Don't go chasing after business the way everyone else does. Make people want to see you, want to do business with you. And, the only way you're going to do that is by building relationships. By building relationships, you do one thing that most don't do - you build trust.

By building trust, it's not going to matter - people will automatically want to work with you, want to help you. But, if you don't take the time to build relationships and earn that trust - why should they do business or want to help you in the first place?

There is one more thing he told me that I will never forget. He said, "Don't focus on the sale. Focus on building relationships. If you do that, you won't have to worry - business will come to you."

And, I took his advice to heart. In the beginning, it was a bit of a struggle - it took up a lot of my time. I was having many meetings with the same people, yet nothing seemed to be going anywhere. I wanted that immediate sale, that immediate gratification. It seemed like an eternity.

Though, the top sales rep kept telling me to stay with it - be patient, be persistent and it will come. And then, he told me - when it comes, it will come big time.

So, I stayed with it. I took meetings, I showed up. And, I kept showing up. I showed up to the point where things finally started happening. I remember meeting with the CFO of one company at 6am in the morning. Many of my other peers thought I was crazy.

The top sales rep told me to do it. He told me our hours are not built around 9-5. If you have to meet people outside regular business hours, do it. If you do the things that most are not willing to do, it will be worth it. I guarantee it.

So, I continued to follow his advice. And, you know what? It worked.

Though it took time and I felt behind from the rest, I soon excelled among my peers. Within a short time, I was in the top 3 among my peers.

What I learned from this experience was the value and importance of taking the time to build relationships. Though it can seem very slow at first and feel like an eternity, it's important for the long term.

Just like the story of the turtle and the hare, it is the hare who had a fast start but guess who won the race? The turtle.

Much of what I do and my style of doing things has come from my sales experience. I learned firsthand the importance of building relationships and taking the time to do one thing that most don't do - CARE.

Honestly, despite all my formal sales training and seminars I attended (as there were many) - the one thing I learned in business was that it takes heart to succeed.

Having heart sets me apart from the rest. If I take the time to care about others, they will take the time to care about me. Even if it does not lead to business or a sale, it has all come back threefold with referrals.

For me personally, I know my approach sets me apart from everyone else. Just recently, I had a closing on this deal.

After the closing, the sellers told me they were so happy to have met me - they told me now they felt I was like family. And, it felt like they've known me forever(No kidding, their exact words!). They went on to say that I really do things differently from all those other investors. And, they personally invited me for a visit to their farm to experience true, country living.

It is situations like these that really make things worth it in the end - it's the mutual appreciation on both sides of the table. Does this happen all the time? No. But, when it does - it's definitely worth it.

For those out there who find themselves struggling or having a difficult time in this business, I urge you to re-evaluate what you are doing and how you are doing things. Are you doing things like everyone else? Or, are you different? What sets you apart from the rest?

Just like the advice the top sales rep gave me, if you can learn to stand out and be different from everyone else - you will succeed.

I'm going to leave you here with a video from Seth Godin that inspired this post.

Happy Investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Terminology Tuesday - How to Hire a Contractor

2010-08-31T05:11:00.000-07:00

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

Video Link

This is a short video on how to hire a contractor.

Learning how to hire good people is a skill I've learned over the years through experience. In the early days, I relied mostly on referrals and for the most part - they weren't that great. I ended up spending a lot of money and a lot of time for people who were not the best and who ended up overcharging me.

Sure, there are big companies out there that do good work. But, what I've learned is that I prefer to work with the little guys. These are the folks who are on the streets, just like me, day in and day out - just working to make a living. And, I find that I prefer to deal with small, family type businesses when it comes to working with contractors.

For the most part, I only deal with contractors who specifically work on mobile homes and in parks. Since this is really a niche business, I want to know the folks I'm dealing with are familiar with mobile homes and the parks I work in.

Lately, I've been receiving many calls from contractors who have dealt with mostly single family homes. When they call, a lot of these folks tell me they know how to fix pretty much everything and mobile homes are just like single family homes. So not true. They are built differently, they are not the same.

So, how do I screen and hire contractors? Well, it's really a matter of preference. Usually, I will work with the park to see who they use for their jobs. But, I'm also sure to check around with the homeowners in the parks I work in - I have found many good and reliable contractors just by talking with the homeowners in the parks.

I always have a few contractors for each type of job lined up. And, I'm constantly interviewing and looking for contractors. I have learned not to rely on one person for everything. Things change, situations change. People change.

For example, recently I had to do a job on a furnace unit that needed to be fixed. Apparently, it had been leaking water when the a/c was turned on.

Well, I had my heating and a/c guy take a look at it. He told me in order to stop the water from leaking the coils would need to be replaced in order to stop the leaking water. He told me it just was no good anymore and that was the only way to stop the water from leaking from the unit.

So, I asked him what this was going to cost me. He quoted me $975. My jaw almost dropped to the floor, I was in shock! Just for that, I asked him if he was serious. He said "yes." I asked him again if there was any other way we could repair the problem, he told me "no."

In any case, I told him to go ahead and fax me the estimate (I always get estimates in writing) and I'd have to look it over again. After hearing this news, I just didn't feel good - I felt this was really a high price for a job like this.

Though a part of me kept saying, "You've used this guy for awhile now, he knows what he's talking about." On the other hand, another part of me was saying "You know what, you better do your research on this before you make a decision. Maybe you should check around and get a second opinion."

So, I did a bit of research on the issue. Turns out, what I researched and found was sometimes the issue could be minor - the coils may not need replacing. But, if they do the $975 figure was just average. The price ranges for this type of job ranged from $700 on the low end to $1500 on the high end. I was advised to get a second opinion. So, I did. And, I'm glad.

I talked to another heating and a/c guy who's been in the business for 10 years, fully licensed and everything. What I liked about this guy was that he was familiar with mobile homes and had done business in the park.

Moreover, he knew exactly the problem - he told me he was familiar with this problem and have seen it in many mobile homes. Thing is, he was familiar with the type of furnace unit since he's had experience in mobile homes.

Turns out, the problem was the coils. But, they didn't have to be replaced. He told me all they need is a cleaning and the pipes just need to be cleaned and unclogged. He explained to me that when the a/c is turned on if the coils are dirty and dirt is blocking the exit then water cannot escape - it gets stuck. And, when it gets stuck then it just sits there and does not go anywhere - that is the cause of the leak.

Furthermore, he told me once the coils are cleaned as well as the pipes of all the dirt and debris - then the water can evaporate and escape from the home. He told me this is just like a car, all it needs is a good maintenance and tune up.

So, I ended up using this guy and guess what? It cost me less money. Instead of $975 with the first guy, I received an estimate of $200 with the second. This is a $775 price difference just by getting a second opinion!

But, here's the kicker about the story. Turns out my original a/c and heating guy, he was no longer licensed. I checked him out in the licensing database and he was no longer listed. I remember awhile back, I had a hard time reaching him as his phone number was disconnected. I checked his license and it said "Expired." Now it turns out, he is no longer licensed.

The lesson I've learned is that I cannot always depend on one person for the job, I have to always be out there looking for folks to add to my team. Situations change, people change - things don't always remain the same.

I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use both in your business as well as your personal life - it definitely has for me.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Must Know Investing: "The Best and Brightest Women in REI" Series

2010-08-26T05:06:00.000-07:00

(Note: This image was created by my pal Julie's graphic designer for an award Julie personally gave me (click on image to view). Thanks Julie!)

So, I was all set to write a long "Investing 101" type blog post this morning (I am a really early riser!) but changed my mind. Honestly, it's been a long week. I've been dealing with both park management and contractors issues this week. To say the least, it's been chaotic.

In two of my favorite parks, there has been changes in personnel. To say the least, it's been sudden. I've been in emergency meetings with the park management and maintenance teams all week. I've dealt with this before with a few of my parks in the past. And, with change - comes a new team.

Since I've had a long term relationship with these parks, the staff already knows me (They are the ones who vouch for me!). So, when changes in personnel occur it's always a new training exercise to get to know the new folks.

Surprisingly, it's funny because a lot of times the new folks can seem pretty overwhelmed by everything and I go in there and try to make them relax. A lot of times, they feel relieved there is someone there who is willing to help and listen to what they're going through.

In any case, I will save this post for another day. And, go into a whole different topic.

Last month, I wrote a post regarding the Must Know Investing Series, "The Best and Brightest Women in Real Estate Investing."

In any case, I wanted to let everyone know that the videos are out for the series. I encourage everyone here to check them out as they are very educational and informative. Here they are (in the order of appearance):

Julie Broad (Life as Real Estate Investors and Rev N You)
Esi Benedict (Flipping Mom)
Shae Bynes (Good Faith Investing)
Christina Mellott (Real Estate Investor Mom)
Steph Davis (Flip This Wholesaler)
Patricia Ridelle (Must Know Investing)
Me ----> Mobile Home Gurl
Susan Lassiter-Lyons (The Investor Insights) - Stay tuned next week!

Thank you Patrick for putting this together! I had a really good time participating in the series and getting to know some really cool gals.

If you haven't had a chance, definitely check out the Must Know Investing site - it's definitely a great educational site to learn more about real estate investing. Thanks for reading!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Notary

2010-08-24T05:58:00.000-07:00

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

According to Wikipedia:

"A notary is a lawyer or person with legal training who is licensed by the state to perform acts in legal affairs, in particular witnessing signatures on documents. The form that the notarial profession takes varies with local legal systems.

Most common law systems have what is called in the United States a notary public, a public official who notarizes legal documents and who can also administer and take oaths and affirmations, among other tasks. In the United States, a Signing agent, also known as a Loan Signing Agent, is a Notary Public who specializes in notarizing mortgage/real estate documents. Although notaries public are public officials, they are not paid by the government; they may obtain income by charging fees, provide free services in connection with other employment (for example, bank employees), or may provide free services for the public good."

Source Link

For me, I use a notary for all my mobile home transactions - both on the seller and the buyer end. Is it required? Not all the time. But, it's just an extra precaution that I use just in case an issue comes up down the road.

If there ever were to be an issue on the seller end (such as a title issue) or the buyer end (such as a payment issue), having my documents notarized is proof that the folks I'm dealing with have been verified and confirmed by a third party.

(Note: Some investors use a Power of Attorney on the seller end - this is another tool you may want to use. Though, I don't really use it. It will really depend on your area and what is acceptable. In mine, if there's a notarized signature on a particular document - that is acceptable and can serve just like a Power of Attorney for that particular issue as the document is signed and notarized by the individual in question. Again, it's best to check and know the laws in your particular area).

In the mobile home business, things can seem a little bit more "laxed" than in the real estate world. Though, coming from the real estate world - I can be a bit paranoid about these things (I've been told this by a few of my fellow mobile home investors!). My philosophy is that it's better to be safe than sorry. Though, that's just me.

Most of my fellow mobile home investors don't really go this route when buying just mobile homes (not the land). To them, it's a bit of a hassle. Though, I do take the extra step and precaution to get all my documents notarized.

Regarding notary services, I don't really use a mobile notary. In my opinion, they are too expensive for what I'm doing ($100+ per trip out).

On the seller end, usually we get the documents notarized either at a local bank (they usually do this for free and offer it as a service to their customers) or at a mail services store (such as Mail Boxes Etc).

On the buyer end, in some cases the park manager may be a notary for the park. Or, we go the above route.

In the beginning, I did use a fellow investor who was a notary who wanted to learn first hand from me about the mobile home business. We would meet with either the buyers and/or sellers - this fellow investor would notarize all documents free of charge.

It worked out ok for awhile. Though, this fellow investor got more busy and informed me it wasn't something that could be done on a regular basis anymore. I think this fellow investor just wanted to get a peek for the mobile home business, but told me it might be something down the road for them but not at that time. So, we parted ways.

(Note: I think it's ok to go this route in the beginning (when you don't have too many transactions). But, after awhile it can be a bit tedious for the person on the other end when dealing with multiple transactions. So, I just go with an established institution like a bank or company (such as a bank) that performs this service on a regular basis).

To give you a better idea of when and why to use a notary, here's a short video:

Video Link

Again, using the services of a notary will be an individual and case by case decision. It's not always required in the mobile home world. Though, for me using one gives me piece of mind just in case an issue comes up in the future.

I hope this "Terminology Tuesday" post has been helpful.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Hiatus

2010-08-17T06:01:00.000-07:00

Hi Everyone!

The blog will be on hiatus this week. Will be back next week, stay tuned!

Video: The Realtor

2010-08-13T06:48:00.000-07:00

(Note: Since I like to keep things light on Fridays, I have started a new series called "Friday Fun" which aims to entertain. Hope you enjoy it!)

Very entertaining video, enjoy!

"A very funny short parody on realty."

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Investing 101: The Importance of Persistence and Follow Up

2010-08-12T06:17:00.000-07:00

"If there is no struggle, there is no progress."

- Frederick Douglass

In my last "Investing 101" post, I talked about the importance of being patient and why I decided to wait for the right opportunity rather than trying to force one that is not so right - one that would have took me into the unknown. Looking back on it now, I'm glad I decided to wait.

Sometimes I can get caught up in the moment and forget one important thing - there are opportunities everywhere. And, if I'm patient enough these opportunities will find me. The key is being patient and waiting for just the right moment.

This week, my patience paid off and that moment found me. I was able to land a deal that I've been working on for 2 years. Yes, that's right - talk about having a lot of patience, eh?

When I first started working this one, I remember many a conversations and meetings with the seller. The seller had been thinking about selling but was still not sure. You see, this was a case where the seller didn't have to sell but thought it would be nice to sell. The problem was motivation - it was just something the seller was just thinking about but didn't really plan for.

So, we did a lot of back and forth - not even about the price, more about if the seller was still thinking about selling or not. We talked about the future, goals and plans. And, it usually ended with the seller saying, "Oh, we'll see. But, thanks for keeping in touch. Let's chat again in a few weeks."

And, this went on for 2 years. Every so often, I'd give this seller a call to see what was going on. And, many a times it was "I'm still thinking about it." I"d say, "Cool, just checking up on it. You need to do what's best for you." So, we had this ongoing relationship for all this time.

And, finally about 6 months ago - the seller finally called me up to let me know they had decided to sell. So, now the issue was not about whether or not the seller was going to sell - the issue now was price.

The price started at 25k. Even though the price was pretty much retail and was high, I still met with the seller to inspect the home again.

(Note: Even if I've inspected the home already, I will make another inspection if a lot of time has passed from my last meeting with the seller. In my experience, I've found that you never know what has changed with the home - some items in the home may or may not be working).

After that meeting, the seller had told me they were now pretty serious about selling the home. But, wanted to try to get the best offer out there.

At this point, I knew it wasn't a question of motivation - this seller didn't have to sell, they just wanted to sell. And, there is a big difference between a "need" and a "want."

So, what I did was tell the seller since they just got serious about selling the home to try and see what kind of offers they get on it. I already knew there was no way the seller would get 25k cash, they would have to finance if they wanted that price.

(Note: This is the power of learning your market. Going into a deal, I already know the value of a home (i.e. wholesale, retail, etc).

The seller agreed and told me they'd keep in touch and let me know how it works out. I said, "Ok," and didn't think of it again.

Well, a few weeks pass by and the seller calls me up. Now, the seller tells me most of the folks who are interested in the home want the seller to finance it. (No surprise there!) And, the seller tells me they really don't want to do that - they want to sell for cash and not be tied to the property anymore. (As do most sellers!)

So, the seller tells me they've decided to go ahead and sell to an investor - the seller asked if I was still interested. I said, "Yes, but I can't buy it at 25k." The seller told me they understood and asked me to come over again. So, I did.

Now, this time when I met with the seller they told me they had been talking to another investor too - one I knew already. I said, "That's cool. Do you want to work with her instead?" But, the seller said they're not sure about this other investor as they don't really have a good feeling about this investor - they weren't sure if this investor knew what they were doing and was serious or not.

(Note: This investor had bought a few properties in the park at retail value refinancing their home with a home equity loan (I don't really recommend this). And, I knew for a fact they didn't have the funds - this investor asked me for a loan and even told me that I should be using other people's money (OPM) to fund deals and not my own because it will give me leverage).

The seller then proceeded to tell me they felt more comfortable working with me since I have a track record and also because I have a close relationship with the park manager. The park manager actually told this seller to just sell to me if they want it done right. So, now it was a question of price.

To make a long story short, we did a lot of back and forth over the next couple of months. And, finally a month before I wrote my last "Investing 101" post the seller called me up and decided to sell to me. And, we agreed on a price that worked for both of us.

So, now I finally landed this deal after 2 years of persistence and follow up. We had a couple issues with clearing up the title, but now that's all taken care of. And, the seller is making arrangements to clear out the home and we plan to close at the end of the month.

For those of you out there who get a bit frustrated, I'm here to tell you - it's so important to be persistent and follow up. I know, it's probably said time and time again but I can truly say it's worth it if you stick to it.

After 2 years of working this deal, my persistence and follow up paid off. And, it paid off big time.

I got a great home in one of my favorite parks. It's a mid 1990s, 3 bedroom, 2 bath home, 16x80 (my favorite!) with no work needed - it's in pristine condition. Plus, the seller was kind enough to leave all the appliances in there. We agreed on 11k as the sales price and I know it'll sell owner finance in the mid 20k range - it'll be another $500+/month cash flow payday for the next 10 years.

(Note: For those who are interested, I'll be writing up a case study with pics once this deal is said and done. Thanks for reading!)

Though this deal took a long time and was a lot of hard work and persistence on my part, it was worth it in the end. The lesson here is to be patient - be persistent and always remember to follow up. Things will come if you're patient enough.

As the saying goes, "Good things come to those who wait."

(Note: For those who are interested, here is a really good article written by my pal, Shae Bynes. Thanks for reading!)

I'm going to leave you here with a video here from Gary Vaynerchuk that inspired this post.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

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Terminology Tuesday - Painting a Mobile Home

2010-08-10T05:43:00.000-07:00

The Social Network (with additional book review)

2010-08-06T06:05:00.000-07:00

(Note: Since I like to keep things light on Fridays, I have started a new series called "Friday Fun" which aims to entertain. Hope you enjoy it!)

When I first saw the trailer for this upcoming movie a few weeks ago, it really interested me. The reason why is that I have a really high interest for businesses stories, how they began and how they came to be. At times, you could call it an obsession.

I've read a lot of books on business stories including books such as "The Google Story" and "Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time." My interest for business stories has stayed with me for a very long time, I guess it's the entrepreneur side of me that enjoys reading these types of stories.

So, when I saw the movie trailer for the Facebook story - I just had a burning interest to read the book (which it's based on):

Now, the book does not claim to be entirely true - it is a bit of a work of fiction. The thing is, the book is based on interviews of people who claim to be involved with the progression of Facebook and it's founders. Though, not every character had been interviewed for the book - including Mark Zuckerberg.

Some things in the book could be true, some things not true. It is all part of the story. And, will we ever know the truth of what really happened? Personally, it's one of those things where you had to be there to know what really happened. And, I'll leave it at that.

For me, I really enjoyed the book especially since the concept of social networking is really new to me. Personally, I never understood it. For me, I didn't really understand the concept of meeting and connecting with people online - maybe I'm a bit old fashioned.

However, after reading the book I now understand the whole concept of Facebook and why it was created. It's purpose is not to connect people with strangers (such as other social networks had done in the past including MySpace and Friendster).

Facebook was created to connect folks with people they already know. This was the differentiating factor and what made it stand out. Now, I do understand Facebook and it's purpose. Before, I just didn't understand it.

Apart from learning about the concept of Facebook, the book also goes on to tell the story of the founders (who were friends) - its origins and how it also tore them apart in the name of business. Now, this part was interesting.

For me, I could relate firsthand. I've had entrepreneurial ventures with friends. And, I could relate because what happened in the book emulates what happened to me and my experience.

Personally, I think it's really hard to have an entrepreneurial venture with friends when business is mixed with the personal. And, sometimes being in a group - people want different things, people want to take things in a different direction. This is exactly what happened to me. And, in the end - we had to disassemble and part ways (just like in the Facebook story).

After reading the book, I think people will have many different perspectives on it. I know my perspective could be different from someone else. I guess the saying may be true, "There are always 3 sides to any story: my side, your side and the truth."

For those interested in the movie, I highly recommend reading the book first. There are certain characters who will be in the movie and it just looks like it will be more understandable for those who familiarize themselves with the characters and the book beforehand.

Overall, I enjoyed the book. I'm looking forward to the movie when it comes out. I hope you enjoyed this episode of "Friday Fun." Have a great weekend!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

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Deal or No Deal: 3 Mobile Home Lots With 2 Mobile Homes

2010-08-05T06:47:00.000-07:00

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is for 3 mobile home lots with 2 mobile homes. I got the call from a family who was a friend of someone I had spoken to awhile back.

(Note: Usually, when I talk to people for some reason they remember me. Maybe it's my demeanor and my laid back way of doing things. I get a lot of compliments from folks who tell me that I'm different from most investors - I come in more of a consultant than anything else. I always try to come up with solutions for folks - it doesen't always have to be working with me).

In any case, this family had run into quite a bind with their personal situation. One of the family members had been going to the hospital lately and they needed money to pay medical bills. So, they called me asking if I'd be interested in their lots and mobile homes. So, I decided to go and check it out.

(Note: Right now, I am looking into mobile home lots. It will be a nice addition. I guess I am following in Lonnie's footsteps - he also transitioned into mobile home lots from doing "Lonnie" deals. The good thing about the lots is that it's still the same concept - it's still like being the bank. And, I don't have to deal with the management issues involved with owning a park).

Since I took the time to learn my market, I was a bit familiar with this area. In fact, this area was where I did a mobile home move awhile back.

When I first drove into the neighborhood, I wasn't quite sure of it. It looked a bit shady. Some homes were kept up, some were not. It was not uniform all across the board. And, there were some homes with some really broken down cars. Not a good sign. It was a mix.

Shot of 3 lots with 2 mobile homes

So, the story was this family bought the 3 lots about 8 years ago as an investment. They bought the lots as raw land - there was no infrastructure on it. And, nothing on it either.

They installed an electric pole, but there was no water. They placed 2 mobile homes on the lots about 5 years ago with just the electric hooked up to one of them. As for the water, it cost too much to get a water tap and septic - they did not have the funds to do this.

So, they rented out the mobile home with the electric hookup to one of their daughters. Since this family lived down the street, the daughter and her family would drive down the street to their home if they needed to use water facilities. (Kind of crazy!) Thing is, their daughter and her family moved out about 6 months ago as they no longer could live there. They were paying this family $200 per month for usage of the mobile home. But, that stopped when they moved out.

And, the second home was never lived in. It was never hooked up as this family did not have the funds to hook it up. And, it was used as storage by another daughter.

(Note: Typically, I do not buy homes that have been vacant for years. If it has not been lived in awhile, there can be many issues that come up. One of the questions I always ask when visiting vacant properties, is how long has it been vacant. If it's recent, it's ok. If not, I'm extra careful and take the steps to make sure I know what I'm getting myself into).

In any case, when I first saw the homes I knew it wasn't anything I wanted to pursue. Basically, they looked like fixer uppers - too much work involved for me.

Mobile home #1 - 2 bedroom, 1 bath (used as storage for years)

Side of home

Mobile home #2 - 3 bedroom, 2 bath (electric but no water hook up, lived in by daughter and her family)

But, I did suggest to them that I knew a fellow investor who may be interested in taking a look. I told them he buys fixer uppers and moves them to his land. I told them this guy was ready to go - he had the mover and everything.

This family appreciated my help. I called up my fellow investor right there on the spot. He took my call, I handed my phone to the family and they made arrangements for him to come and see the homes.

(Note: I have a few fellow investors I work with on a regular basis. If I pass on a deal, I typically call them up based on their criteria and what they are looking for. If they end up buying, I am rewarded for my efforts. So, it's not a complete waste of time. My goal is to find solutions for these folks. And, sometimes I may not be the best solution).

As for the lots, they asked me if I'd be interested in them. I told them I'd have to think about it. I wasn't quite sure of the neighborhood. And, the fact that there was no water tap and septic concerned me. I've heard of this costing between $10,000-$20,000 - I've looked into it before.

I told the family it's best to try to sell these homes first to get some immediate cash. At first, they were trying to sell the homes with the lots but kept getting folks interested in owner financing who they thought were a bit shady. I told them it's the homes here that attract those kind of people. If they were to fix up the homes, maybe they'd get a higher type of clientele willing to pay cash. But, that would take time and money - a route they did not want to take.

In any case, they thanked me. They told me if I'm interested in the lots, they'd be willing to owner finance them and sell to me at or below cost.

To me, that wasn't the issue. It was the neighborhood and putting in the proper infrastructure. Plus, I'd have to go find nice homes to place them on. I just wasn't sure if I wanted to spend all this time and effort on this one deal - was it worth it? Or, maybe I'd pass and spend my time on something ready to go. I'm still thinking about it.

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Mobile Home Installation

2010-08-03T07:07:00.000-07:00

Bank of America Loss Mitigation Training Video

2010-07-30T05:24:00.000-07:00

Since it's Friday, I thought I'd keep it light and share with everyone this very entertaining video spoof about the short sale process by my tweep, Nathan Jurewicz (aka "Short Sale Kid").

"Nathan Jurewicz the Short Sale Kid and his Short Sales Riches team spoofs Step by Step instructions on how to deal with Bank of Americas Loss Mitigation Department."

Enjoy!

p.s. For anyone interested, I recently wrote an article for my pal Julie Broad from Rev N You. If you'd like to check it out, you can find it here. Thanks for reading!

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Book Review: "Making Money with Mobile Homes"

2010-07-29T05:17:00.000-07:00

Terminology Tuesday - Jack Miller

2010-07-27T05:58:00.000-07:00

Wall Street 2 (2010)

2010-07-23T05:45:00.000-07:00

Awhile back, I made a post about one of my favorite business films, "Wall Street." And, now the sequel is coming out. Though, I'm not sure how well this film will be executed it will still be interesting to see how it all pans out.

According to Wikipedia, the film is set to release on September 24, 2010.

Though the old trailer did not reveal much about the movie, the new trailer had more to offer. Check it out!

p.s. If anyone out there has any seen any good business and/or real estate related movies you've enjoyed, I'd definitely be interested in hearing about them. I'm an avid moviegoer, it's one of the things I enjoy doing. Thanks for reading!

New Trailer

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Old Trailer

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Investing 101: The Importance of Being Patient

2010-07-22T05:22:00.000-07:00

Photo Source: Motivated Photos

"Good things come to those who wait."

Recently, I missed out on an opportunity. Yet, this opportunity may not have been the best opportunity for me. But, in the spur of the moment I felt it was an opportunity. Now, looking back - I know I made the right decision.

I got a call from a couple who were moving out of the area due to a job transfer. They told me they needed to sell their home quick. It was a 3 bedroom, 2 bath home in one of my favorite parks.

Naturally, I went out to take a look at the home. It was in fairly good condition on the outside - it had curb appeal, a definite plus. Though, the inside needed some work. I'm not talking major repairs but it did need some work to get it up to par for a qualified buyer.

(Note: In my experience, the types of buyers that high end parks tend to attract are those who are looking for homes to be fixed up. I rarely sell "as-is" and have to visualize myself as a prospective homeowner when going to inspect these homes).

The type of work that was needed included floor work (there were mixed vinyl patterns in the living room and the kitchen) and cabinet work (the cabinets were really worn down and needed either a paint job and/or finishing).

Regarding the floor work, the owners had taken up the original carpet which was in the living room and pulled it up - they had laid their own vinyl. And, in the kitchen they had laid their own vinyl as well (a different pattern) which did not really match all together. But, in the hallway they had tiled it very nicely and had planned to tile the kitchen as well. Problem is, they had to leave due to the job transfer.

So, going into this home with the perception of a prospective homeowner I knew it would need floor work. I really don't like when homeowners change the make up of the home and tear out the existing floor surface such as carpet as in some cases when it's been laid over with vinyl - it just does not match. Though, my preference is with my own homeowner type mentality. I understand it's their home, I guess some have different tastes than others.

To make a long story short, since the home needed some floor work and cabinet work plus a good cleaning (there were many people living in the home, a good professional cleaning is needed in these cases) I would not be able to meet the seller's asking price of 14k. I knew it was priced well for a homeowner, it was a solid home - it just had some cosmetic issues. Though, I knew if I were to do a Lonnie deal with this one - I could only offer it for 24k. So going with Lonnie's 50% formula, I knew the most I could have in this deal (including doing the floor work, cleaning, holding costs, cabinet work, etc) based on those numbers was 12k.

I offered 10k. But, the sellers declined. They told me it was a really good deal but the lowest they could go was 13k. Then, they reiterated how it was a solid home - they had lived in the home for over 10 years. These were long term type owners - my favorite kind.

But, the numbers just did not work out. My gut feeling told me, you cannot overpay for this home - it's a solid home but it still needs work. And, I know the types of buyers I work with for these types of parks want things in pristine condition. Plus, this home was in the smallest category of mobile homes - I'm used to buying the larger homes, not the smaller ones. And, I've done it for much less than this in better condition.

So, I walked away. Even though, I had a small voice inside of me saying "Maybe you can make this work, the issues may not be so bad," I remember one thing a wise investor once told me - "Don't force a deal. If you can't make the numbers work, don't do it. There are so many other homes out there."

And, guess what? This saying is so true because this week I got a call from a seller I've been working with for a long time. I was supposed to buy this particular one a month ago but there were title issues. And, we were waiting to get these title issues taken care. Well, the paperwork got rejected and returned and they had to file for it again (which was really frustrating) so I kind of just pushed this one out of my head for awhile. But, it turns out the paperwork is finally being processed and the seller is making arrangements to start moving out of the home. So, once the title is clear - I can buy it. And, this one does not need any work at all - it's my favorite kind of home (the largest one) in one of my favorite parks.

So, the lesson that I learned here is to be patient. Things will come. Success does not happen overnight. My most successful deals are those that I have really put a lot of time and energy into. And, at the end of the day - closing good deals are worth the time and effort.

I'm going to leave you here with a video here from Gary Vaynerchuk that inspired this post.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

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Terminology Tuesday - Attorney Talks About HUD SAFE Act

2010-07-20T08:35:00.000-07:00

Video: The Facebook Song

2010-07-16T06:24:00.000-07:00

Since it's Friday, I thought I'd share with everyone this entertaining video, "The Facebook Song." Enjoy!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

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Does It Look Like a Deal?: 2/1 Mobile Home In a Park

2010-07-15T05:35:00.000-07:00

Since I receive a lot of requests for more case studies, I thought I'd make another post for "Does It Look a Deal?"

(Note: While the "Deal or No Deal" case study series focuses on the mechanics of my thought process of evaluating mobile homes from beginning to end, this new case study series, "Does it Look Like a Deal," will focus more on a quick outside evaluation of mobile homes - I use this evaluation to prioritize the leads I pursue."

This lead came from a park manager in conversation while we were sitting in the office having coffee and donuts. (Guess who brought the coffee and donuts?)

(Note: What has worked for me with park managers is spending a lot of time with a select few I enjoy working with in nice, family style parks. For me, quality is more important that quantity. I don't mind spending a whole morning or afternoon with one park manager - it's building the relationship that counts. I see so many investors out there who try to "network" with everyone only to create mediocre relationships. For me, I've learned it's better to create a few really strong relationships than a lot of mediocre ones. Again, this is just my experience).

In any case, I learned from the park manager that this home was abandoned and taken back by the park. The park wanted to get rid of it.

They were trying to sell the home for $2500. But, the park manager told me I could have it if I just wanted to fix it up and start paying lot rent in a few months.

(Note: Now, some people may get excited about getting "free" homes in this business. But, for me "free" homes really mean expensive homes because most of these homes need a lot of work and take a lot of time to fix up. Though some have tackled these types of opportunities and have been successful at it, just by looking at the outside of the home I knew this was not my type of deal. For me personally, I'd rather spend my time on a home that needs less fix up and conforms to what the types of people I work with (usually families) are looking for (i.e. larger homes) that I know I can stand behind (i.e. support my product, know it's a good home) than something that needs a lot of fix-up work that is smaller and not really sure if I'd live in myself. Again, it's very important for me personally to be able to stand behind my product. If I cannot see myself living in the home (as well as living in the park), then I pass on the deal).

I "thanked" the park manager for letting me know about this opportunity. I told the park manager just from looking at the outside, it just really wasn't my kind of deal. The park manager understood - said someone could make something out of this but the park wasn't willing to give it away to just anyone, it had to be someone they knew and trusted to make it work.

So, as I write this the home is still sitting there in the park. No one really knows it's for sale as there is no "For Sale" sign. Again, most of the deals I work are "inside deals." In my experience, the key to being successful in this business is getting to the deals before everyone knows about them. And, that can only be done by building strong relationships. In the end, it's quality not quantity that counts.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Make Your Own Household Cleaners

2010-07-13T06:11:00.000-07:00

Video: Must Know Investing Presents "The Best and Brightest Women In REI"

2010-07-09T06:51:00.000-07:00

Since it's Friday, I thought I'd share with everyone this upcoming video series presented by Patrick Riddle of Must Know Investing, "The Best and Brightest Women In Real Estate Investing." (Thank you Patrick for putting this together!)

It should be a really educational and fun series, feel free to check out the intro video (see below) Patrick made for the series- you may see a few familiar faces on there! ;)

(Note: If you haven't had a chance, feel free to check out Patrick's site - it's a great educational site to learn more about real estate investing. Thanks for reading!)

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Investing 101: Do What Works For You

2010-07-08T05:31:00.000-07:00

"Courage is rightly esteemed the first of human qualities because it is the quality that guarantees all others."

- Winston Churchill

Lately, I've been receiving a lot of questions from folks regarding advice they have received from other investors (both online and offline) regarding investing advice and what types of opportunities to pursue. The main question has come down to, "I was told to do this" or "I was told not to do this" - what are your thoughts?

My own personal belief is that most times nothing is ever black and white. Everyone is going to have different experiences on what they like/don't like and what works for them/what does not work for them. And, even more - people have different goals and different personalities.

Even on this blog, I've mentioned time and time again that I am not here to convince folks to invest in mobile homes. This blog is merely here to share my stories and adventures investing in mobile homes.

I am not claiming that mobile home investing is the best type of investment vehicle out there for folks. Why?

The reason why is that it's different for everyone. Not everyone is going to enjoy investing in mobile homes, not everyone will have favorable experiences with it - it's all a matter of personality, what you like/don't like and what works for you and what does not work for you.

(Note: If you're interested in learning about why I enjoy investing in mobile homes, feel free to check out this article I wrote).

In the past, I've known of other investors who have done a "Lonnie" deal or two who just didn't feel mobile home investing was for them, that's ok. Most recently, there was a blog post by my fellow blogger J. Scott on his experience with the mobile home business - he decided it just wasn't for him to pursue it at this time after his experience.

So, you see not everything is always black and white. And, I see a lot of investors out there who put things in black and white terms - this is dangerous. It's going to be different for everyone.

In the beginning, there were a lot of times where I personally sought advice from other investors more experienced (both online and offline). I found many (but not all) to be very black and white in their advice to me. And, you know what?

If I had listened to their advice, I may have not pursued a handful of opportunities that turned into deals. From my first deal to moving mobile homes, I was told not to pursue these types of opportunities for one reason or another.

Looking back, I'm glad I made the decisions that I made. And, I made them based on the rationality and belief that I could make these opportunities happen. In the end, it was sticking to my gut and knowing in my mind - I can do this.

It's good to listen to the experiences and advice of others. But, you do not always have to follow their advice - just listen. And, then you need to make your own decision - listen to that little voice inside of you.

Honestly, if you believe in what you do and do what it takes to make things happen - you will succeed.

As said in the movie, Pinocchio, "Always let your conscience be your guide."

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

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Terminology Tuesday - Bleach

2010-07-06T05:33:00.000-07:00

Video: The Internet Overdose Song

2010-07-02T05:23:00.000-07:00

Since it's Friday, I thought share with everyone this entertaining and nostalgic video about the evolvement of the Internet. In a way, this video kind of reflects my view on technology - sometimes I think it's moving too fast.

Personally, I'm not that much of a techie type of person. Though, I guess it's one of those things that my pal Shae at Good Faith Investing suggests I take it in baby steps, one step at a time! (Thanks, Shae!)

So, I'm slowly learning and using some technology tools. And, there are a few in this video. Can you spot some technology tools in the video that you use?

Enjoy!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Deal or No Deal: 2/2 Singlewide Mobile Home In a Park

2010-07-01T05:29:00.000-07:00

Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."

This one is an early 1980s, 14x76, singlewide mobile home in one of the parks (high end) I prefer working in. The sellers had called and found me through a friend living in the park - they said they've heard what I do and asked me to check this one out.

(Note: In the beginning, I had to do a lot of marketing and networking to get the word out on what I do. My style is to be as personable as possible - I don't try to act as a big whig. I guess I follow Lonnie's style of just being a small operation - it's worked for me. Again, everyone will have their own style of doing things).

When I received the call and heard the sellers' story on why they were moving, I had a bad feeling. Basically, they told me they needed to leave because they just couldn't live in the house anymore - there was too much work that needed to be done to fix up the home.

They had been living in it for 5 years. Though, they've had so many issues with it - the central a/c had just broken down and the water heater was going to need to be replaced soon. These were just a couple of things mentioned.

(Note: When I hear the words, "We can't live in this house anymore," it's a major red flag to me. I've had so many cases where I've had these types of calls - most of these types of calls always require the home needing a lot of work and to be fixed up a great deal).

Since the home was in a park (high end) that I prefer, I decided to go ahead and make a trip out to inspect the home. Here's what I found:

Outside of home

Mold and flashing issues near top

(Note: The gutters had not been cleaned out for a very long time. Also, the roof had not been re-sealed since the sellers bought the home 5 years ago. There are signs of water damage on the outside as well as the inside of the home).

Back of home

Side of home

More flashing issues and water damage to masonite hardboard siding

(Note: If you notice lines of water stains (as in the pic below) down the siding of the home, it's indication of flashing and water damage issues. For this home, it was apparent around the entire outside of the house).

From the outside alone, I knew there was going to be a lot of work needed to be done. Since there was a lot of water damage to the outside masonite hardboard siding (due to flashing, roofing and gutter issues), the outside alone would require a lot of work to replace the rotted and damaged areas especially since it was all around the entire home).

Inside of home

Living room

Kitchen

Hallway

(Note: There were some soft spots in the floor in the hallway - this had never been replaced by the sellers).

Bathroom floor

(Note: Some parts of the existing floor had collapsed. The sellers had started to remove remove and repair some of the areas. However, they did not finish as it required too much work and money).

Underneath bathroom sink

(Note: The baseboard had collapsed due to water damage - this was not repaired).

(Note: There were also signs of water damage in the bathroom above the shower. The picture did not turn out well, so I'm unable to include it here. Though, rings of water stains on the ceiling are usually indications of water damage and issues with the home).

Window a/c unit

(Central a/c had broken down - it was the original to the home).

(Note: While not always a deal killer, I've found it much more difficult to sell homes in high end parks that do not have central heat and air. In most cases, buyers who are looking in high end parks prefer homes with this feature).

After a thorough inspection of the home, I decided to pass on this deal. Why?

For me, it was too big of a risk for the time and money involved to fix up the home. It had a lot of factors going against it to meet my criteria. Not only did the outside of the home need a lot of work, but the inside as well.

(Note: When I asked the sellers the condition of the home when they bought it 5 years ago, they told me it was a major fixer upper. The previous owner had not taken good care of the home either. And, these sellers told me they had to make a decision (due to money issues) to either fix up the outside or the inside of the home - they could not do both. So, they decided to put their money into fixing up the inside of the home. But, they were unable to finish due to money issues).

Also, the fact that it was an older home and a 2/2 without working central heat and air would be a challenge with the type of clientele I tend to work with. In my experience, the types of clientele I tend to deal with prefer homes to be fixed up with central heat and air, as well as a preference for 3/2s.

So, I passed this lead onto a fellow investor who specializes in buying fixer upper type homes and specializing in 2 bedrooms and smaller homes .

Since this fellow investor bought mostly fixer upper type homes and worked with folks looking for smaller homes, I saw it as a better fit. Plus, it would be a better use of my time to pursue other deals that better fit my criteria.

(Note: Some investors think competition is a bad thing. I'm here to say, it's actually a good thing. Everyone has their own criteria on what makes a deal. A deal to me may not be a deal to you. And, vice versa. By knowing other investors in the business, you open yourself up to more opportunities).

Though this was not a deal for me, it was a possible deal for my fellow investor. And, everyone has their own criteria on what makes a deal. For me, this one just didn't fit mine.

(Note: After telling the sellers I had decided to pass on this one, I did refer them to my fellow investor - they appreciated that. Though, they told me they really had wanted to sell to me as they liked and trusted me. They even dropped the price down to $2700 (they started at $5500) but told me they'd be negotiable with me even on that price as they were already packing - they had already found another home in another park. I "thanked them" for their kind words, I told them the fellow investor I referred this to works these kinds of homes all the time and I thought it would be a better fit. The sellers thanked me and appreciated the referral. It's always good to be able to come up with solutions for folks. Not every lead will turn out to be a deal, but I always make it a point to help others and figure out solutions to their problems).

I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.

If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

My Bookshelf: Used REI Courses Available

2010-06-30T06:38:00.000-07:00

Lately, I've been doing some spring/summer cleaning. And, I've found that my bookshelf is a bit cramped. So, I've decided to go ahead and offload a few of my REI courses that I've accumulated over the years. As they come up, I'll make a post here on the blog. To make things easier, they will be offered through eBay.

Here's the first installment of what's available:

The Protege Program (Lease Options Course): Peter Conti and David Finkel (Retail Value: $1,497) - Course Description Link

My eBay Link: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=200489734542#ht_2802wt_1139

(Note: What I found most valuable from this course was the negotiating aspect taught. I really learned a lot of great negotiating techniques with this course. And, I continue to use what I've learned and have been successful using these techniques even to this day).

Bankruptcy - "The Bank's Worst Nightmare": Bill Twyford (Retail Value: $999) - Course Description Link

My eBay Link: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=200489727248#ht_882wt_1139

(Note: What I found most valuable from this course was learning the ins and outs of the bankruptcy system. The course outlines the details and court processes/procedures for the bankruptcy system. Also, there is additional material for state bankruptcy laws for each individual state, which I found very useful).

For those interested, feel free to check out the links above. If you have any questions, just let me know. And, if you know anyone out there who you think may be interested feel free to pass the message along.

Thanks for reading!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Vinegar

2010-06-29T06:04:00.000-07:00

Video: Suze Orman at Google

2010-06-25T06:17:00.000-07:00

Since it's Friday, I thought I'd share with you this excellent video on Suze Orman as she speaks about personal finance at Google.

(Note: If you missed it last week, feel free to check out this entertaining and relatable post).

I think this is a very good talk - I always enjoy watching and listening to her. There are some Q & A at the end, which is usually interesting to watch, with some real estate related questions.

I especially enjoyed the last part where Suze goes over her Top 10 List she knows to be true when it comes to money. Here they are:

1. Focus on people and money will follow.
2. It is better to do nothing than something you do not understand.
3. Being rich is better than being poor.
4. Democracy and the deficit - let's pray it works.
5. You don't need to be on Wall Street to make money.
6. You can make money without doing evil.
7. There is always more money to be made out there.
8. The need for money crosses all borders.
9. You can be the world's personal finance expert without ever wearing a suit or being a man.
10. Being wealthy is just not good enough - it is what you do with that wealth that counts.

I hope you enjoy this video, thanks for watching!

(Note: For those interested in reading more about personal finance, here are my Top 10 Personal Finance books.

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Book Review: "Making Money Through Mobile Home Investing"

2010-06-24T06:26:00.000-07:00

(Note: Recently, I've had a lot of folks contact me asking what the difference between some of Lonnie's as well as other mobile home investing materials out there and which one I'd recommend the most. So, I've decided to go ahead and start a new series of posts - book reviews).

Recently, I had the opportunity to read this book about mobile home investing.

(Note: This is one of the mobile home investing books several folks had asked me about inquiring if I had read it - many folks had asked what I thought of this one).

The format of the book is more of a Question and Answer (aka Q & A) type format. Basically, it's a book that answers a lot of the most basic and frequently asked questions in the mobile home investing world. There are some pros and cons to the book.

In my opinion, the pro to the book is that it's a very basic book that has a lot of mobile home investing type questions that a lot of folks just starting out usually ask - it's all in one place (in this book). Since it's a Q & A type format, it's a very easy and fast read - the book is divided into 11 Chapters.

(Note: If you would like to see the inside of the book, read the Table of Contents).

What I like about the book is that it's very easy to follow. I also like the fact that the book is divided into chapters based on the different topics involved in mobile home investing. So, if there is a certain question someone had on a certain topic (i.e. marketing, mobile home inspection, etc) then they could just turn to that chapter and read through the Q &A on that specific topic.

Now, I do understand the questions and answers presented in the book are very basic. A lot of these same type questions and answers can be found and/or asked by visiting various real estate forums online such as BiggerPockets, CREOnline, Mobile Home University, etc. So, if money is a bit tight and you would rather go and find the answers - it's available. Though, it will take time to go out and seek this information.

(Note: I've had some folks ask me if I had any material such as this - a basic Q & A type book on mobile home investing. Unfortunately, I do not have any material right now. Though, I am looking to put together a Frequently Asked Questions (FAQ) section on this blog in the future to address the most common mobile home investing questions that have been asked to me).

But, if you're new to mobile home investing and still have questions (after reading Lonnie's book, "Deals on Wheels,") the pro of this book is that the questions and answers pertaining to mobile home investing are all in one place.

(Note: Personally, I'm one of those people who have to have a hard copy when I'm reading books. To me, it's just not the same. Yes, it's nice some information is out there in electronic format though I prefer hard copy type books. I'm sure there are others who do read material in electronic format out there, though reading a hard copy and having it at hand is just my preference).

As for the cons, there are some grammatical errors in the book (i.e. run on sentences, missing words, syntax errors, etc). For me personally, this is a bit bothersome. It's not every sentence but I do recognize the grammatical errors when they show up in the book.

Another con is that there are some statements made that I just don't agree with. I understand this book is supposed to be based on one individual's experience investing in mobile homes, though I do have a problem when folks (especially real estate investors) are too black and white.

Honestly from my own personal experience, everyone is going to have different experiences and different results - what works for one person in one area but not necessarily work for another person in another area (or the same area) - it's all a matter of preference and personality.

One of the examples involves a question regarding whether or not to invest in 55 and older mobile home type communities. The answer was very black and white.

Basically, investing in senior parks was not recommended. However, I know of some folks who have been very successful investing in senior parks. Some even started out that way because that's all there was in their area. So, you see - it's going to be different for everyone.

Another problem I had with the book was a statement made in the beginning (actually in the Forward). It basically made a statement about an "elderly man" who had written a book and "had been in the used mobile home business for years." (I'm guessing this is Lonnie). And, it further stated that the material in the book was "somewhat limited and dated."

Honestly, Lonnie's material is NOT outdated. There are folks doing exactly what he has taught in his book - those types of deals are out there. Though each area is different and the market values vary, the concept is the same - no matter if you buy at the upper end of the spectrum or the lower end. It doesen't matter - what matters is the concept. And, that is NOT outdated.

(Note: If you're interested in reading more about the concept of mobile home investing, feel free to read this article I wrote).

Furthermore, I know folks who have been very successful in mobile home investing and the only book they used to get started was Lonnie's book. Though there's other material out there, really it's a matter of taking action and having the passion to just go out and do it. Period.

Lastly, near the end there are some "sales type" pitches for other products and services - it showcases some audio courses and seminars as well as a reference to the website.

(Note: I don't necessarily see this as a bad thing - I think it's there for those who may be interested in checking out what else they offer as available in terms of materials and seminars on the subject of mobile home investing).

Overall, I think this book is a good basic type of book for folks who may still have some questions after reading Lonnie's book, which I highly recommend.

Though a lot of the questions and answers can be found through a bit of digging and searching online, the pro to the book is that the Q & A is here all in one place organized and divided according to topic. But, if money is a bit tight and/or you're a bit resourceful you can go out and find these same type questions and answers online.

Again, this book is based on one individual's experience - every person's experience will be different. What works for some may not work for others and vice versa - it's a all a matter of preference and personality. What's important is that the concept is the same. And, the concept is NOT outdated.

I hope you enjoyed reading this book review. With the high amount of requests for my opinions on these, it's something that I've decided to start doing.

I'm going to end this review by sharing with you another one of my favorite Lonnie quotes, "If you look for opportunities, you will find opportunities. If you look for problems, you will find problems. If you look for excuses, you will find excuses. What are you looking for?"

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Baking Soda

2010-06-22T07:50:00.000-07:00

Video: Saturday Night Live Spoof: The Suze Orman Show

2010-06-18T06:02:00.000-07:00

Since it's Friday, I thought I'd keep it light and share with everyone this very entertaining spoof based on Suze Orman. Enjoy!

(Note: For all the Suze Orman fans out there, this is not meant to offend but to entertain. I myself respect Suze very much, she's great!)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link

Investing 101: Working With Banks

2010-06-17T01:33:00.000-07:00

Recently, I've been getting a bit agitated and annoyed working with banks on their mobile home inventories.

Right now, the banks owned mobiles are just too much of a risk for what the banks (in my experience) are looking to get. It's getting to the point where even the parks won't buy them back. And, that raises a major red flag with me.

(Note: Typically, I try not to compete with the parks I do business with. Some of the parks I work with (but not all), will usually go after the bank owned mobiles - they've got a separate team of people and experience in this area (usually not the park manager). Regarding typical homeowners, they usually don't go after these as it is too time consuming and usually cannot be negotiated effectively over the phone like the bank owned homes).

To tell you the truth, I've never had much luck working with banks on their inventories in the past (even when I first started out wholesaling). It's like a game - too much back and forth with very little results (from my experience).

In my experience, it's just been too much time involved and too much paperwork with very little return. It's like I have to work a lot of them, submit paperwork, prove my case and wait for some "pie in the sky" decision maker to give me the green light. It's been the same way even with the mobiles.

A few weeks ago, I made this post on this bank owned home I put an offer on. Turns out, it's still sitting vacant out there. And, the park manager tells me even the park won't buy it - the bank is asking a pretty ridiculous amount on it.

What's even worse, is the most recent news I heard from another one of my park managers.

(Note: My park managers are my "eyes and ears" - they keep me updated on the latest news with the mobile home biz as well as what's going on in their parks. Having strong relationships with the park managers of the parks you choose to do business with is key to being successful in this business).

This particular park manager has been a real ally - we basically talk on the phone about 2-3 times per week. This park manager really enjoys keeping me updated on the latest news (aka gossip) on who's doing what and what's going on in the biz. It's amazing how much information I've learned from this park manager alone on the state of the business, other park managers/park owners, other parks, other investors, etc.

In any case, this park manager has been working with a couple banks trying to negotiate deals for me. I did not ask this park manager to do this - this park manager tells me they'd rather work with me on deals as they know I keep my word and have a good reputation than work with others who may not be as reputable.

(Note: There are a couple other park managers who attempt to negotiate bank deals for me with homes taken back in their parks. Their logic is they'd rather have someone they know and trust work these deals than some stranger who comes in that they do not know. Plus, usually when a home is taken back by the bank the park will go after the lender for the back lot rent owed - someone will need to pay the back lot rent. And, they will consistently attempt to contact the bank for the funds due).

So, the park manager calls me this week and tells me she's talked to one of the banks (of course one that owes her park a lot of back lot rent!). Well, it turns out they're willing to deal with me. But, there's a catch (of course!).

Here's the catch. I've got to buy a package of 10 mobiles from them, scattered all over (I'm talking thousands of miles away). Most of them are in the early 1990s-mid 1990s range. But, I've got to take them in "as-is" condition (I'm sure there's no way to check the water and/or electricity on these) and move them as well as take them with all the liens such as back lot rent owed, tax liens, etc.

And, all this for a low, low price of.......5k each! Wow, what a deal, right? Not really.

The park manager told me straight and I quote, "Basically, they want you to buy their crap." And, what's even more funnier is she told the bank rep there's no way I'd take this deal (if you could even call it a deal) as she knows that I don't buy "crap" - I only buy homes that I know I can stand behind (I really believe in my product).

And, you know what the bank rep said? The bank rep told the park manager and I quote (again), "Why do you have to go and ruin my deals?" Oh brother!

Then, the bank rep told the park manager to tell me that I better not let this opportunity pass me up as there may not be any more homes to buy (yeah right!). This is not the end - this is only the beginning. It's only going to get worse. And, being the buyers market that it is - it's the buyers who have the power, not the sellers.

After hearing this, I've made the decision to not even pursue bank owned mobiles at this time. It's not worth my time if they're going to be playing this game.

I'd rather focus my efforts on folks who really need to sell good, quality type homes in nice parks. Period.

It's a much better use of my time and energy. Why should I waste my time chasing after these bank owned homes that require too much time and too much work? Plus, if they're not going to be paying off the liens on the homes - forget it. It's going to cost more time and more money for me to deal with these issues (on top of the issues with the individual homes). No thank you.

Will things change in the future? Possibly. It will take some time - I think the bank inventory supplies really need to pile up before banks will start to have "fire sales." Of course, this will be on an area to area and case by case basis.

In any case, I'd thought I'd fill everyone in on my perspective on working with banks. I've had some folks contact me asking me if it's a good route to take. In all honesty, working with banks just hasn't been my cup of tea.

(Note: Though, I have heard of others who have had success working with banks. In this business, everyone will have different experiences - what works for me may not work for you. And, vice versa. Again, it's all a matter of personality and comfort level - everyone works differently).

A wise investor once told me, "If you're going to play the game, make sure you play by your rules. If you can't play the game by your rules, find another field to play in." And, that's exactly what I've decided to do.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - Security Deposit

2010-06-15T06:10:00.000-07:00

Video: Special Message From Palm Harbor Homes

2010-06-11T05:55:00.000-07:00

Since it's Friday, I thought I'd share with you a video sent to me from the folks at Palm Harbor Homes . It's very touching. Thank you for watching!

"Every time someone watches this video of Mark McGuinn’s song ‘Move That Bus’, our fantastic sponsor companies will donate one penny to The ALS Association to help find a cure for this terrible disease. Be sure to tell your friends and post this link on your Facebook page! You can HELP STOP ALS!"

Video Link

Does it Look Like a Deal?: 2/1 Mobile Home In a Park

2010-06-10T06:35:00.000-07:00

With the popularity of the "Deal or No Deal" case study series, I thought I'd start a new one here.

While the "Deal or No Deal" case study series focuses on the mechanics of my thought process of evaluating mobile homes from beginning to end, this new case study series, "Does it Look Like a Deal," will focus more on a quick outside evaluation of mobile homes - I use this evaluation to prioritize the leads I pursue.

When I first hear of a home for sale, I evaluate 2 things. First, the park. And, second - the home itself.

If the home is in a park that I'd live in myself and feel comfortable working in, then it passes the first test.

(Note: I've mentioned before I only work in high end parks now due to this situation. For me, it's all a matter of comfort level - I prefer high end parks due to the type of clientele it attracts. Figuring out which parks you choose to work in will depend on your personality and comfort level).

Second, I evaluate the home by doing a drive by.

(Note: This is where me and Lonnie differ. When a lead comes in from the park manager while in the park, Lonnie goes to the home and meets with the seller that day. For me, I like to do a drive by of the outside to see if it's even a home I'm interested in pursuing - I don't buy every home that comes up available, even if it's cheap).

Now, most of the homes I pursue have a certain look - they are usually bigger and newer compared to the traditional "Lonnie" deal. Why is this?

For me, I tend to evaluate these homes more from a homeowner type of mentality and the type of clientele I usually work with. I have to ask myself, "Would I (my clientele included) live in this home?"

My thought process is that if it's not a home that I would live in (see the value in), then why would someone else? There's an old saying that if you don't stand behind your product and believe in it, then it's going to be really hard to sell it to others.

Just by looking at the outside of a home, I can tell whether or not I want to pursue an opportunity. I use the drive by method to prioritize which homes will take priority and use of my time. I don't want to put all my time and effort into a home I really don't think I can sell to the type of clientele I usually work with despite the price - I've been down that road before. For me, cheap doesen't necessarily mean better especially when working in high end parks.

(Note: This is just my experience and preference of doing things. I'm sure some have had different experiences. This is just what has worked for me).

In any case, this lead (see pic above) came in from a park manager while I was at my favorite park (a plus!). The park manager told me the seller had just come in a few days ago to let him know that the home is for sale.

(Note: Usually, when a seller in a park decides to sell their home they must notify the park manager. Having a good relationship with park managers is key to success in this business).

The park manager told me the home is a 2 bedroom, 1 bath older style home. Though, it was originally a 1 bedroom - it was converted to a 2 bedroom. When I heard this, I became leary. Usually, I do not like homes that have had any type of conversion.

Moving along, the park manager went on to tell me the owner was asking $9500 for the home.

Now, I've said this before - the asking price does not matter. It really doesen't because everything can be negotiated.

I see a lot of folks out there who look for deals based on asking price. In most of the deals that I've worked, the seller had started at retail price. It was only through negotiating and really building rapport with the seller (aka earning trust) where I was able to negotiate win/win situations.

To some, $9500 on a home is too much. For me, $9500 on a home would be a great price for the type of home I usually buy. Again, it's very important to learn your market. Without knowing your market, it's going to be really difficult to evaluate opportunities.

In any case, after doing a drive by of the home I knew this was not something I wanted to pursue. It just didn't fit the "look" of the types of homes I buy. So, I told the park manager I'm not really interested in this one.

(Note: Remember, there are so many homes to choose from - it's a buyers market especially in this economy. The sellers have to sell but you don't necessarily have to buy).

After talking again with the park manager, I was made aware of another opportunity. This one was due to a divorce situation. The park manager said it's a bigger home, newer, and something maybe worth looking into. Here's a pic:

After doing a drive by, I knew right away this was a home I wanted to pursue. I am currently waiting for the park manager to set up a meeting as the seller is still finalizing their divorce situation.

(Note: Notice none of these pics have "For Sale By Owner" signs. That's because most deals I've found are insider deals - these sellers just don't want to take the time to have so many people go through their homes. Most times, they'd rather work with the park manager to help them find a buyer - this is where I come in).

I hope this has helped to show you the process I use of evaluating and prioritizing the homes I pursue based on a quick outside drive by evaluation.

When it boils down to it, I only pursue opportunities that I feel comfortable working with. Again, it's all a matter of comfort level and personality.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - SAFE Act

2010-06-08T06:05:00.000-07:00

(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).

According to HUD:

"The Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008 (Public Law 110-289) (HERA), constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America's residential housing market - from modernization of the Federal Housing Administration, to foreclosure prevention, to enhancing consumer protections. The SAFE Act is a key component of HERA.

The SAFE Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and for the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry."

Source Definition Link

Recently, I've been receiving quite a number of inquiries from folks asking me about the SAFE Act and my thoughts on it. So, I decided to go ahead and include it in this week's Terminology Tuesday.

(Note: The following is commentary only. I am not an attorney - I am not giving legal advice. For those who are concerned, I highly recommend seeking legal counsel for any inquiries regarding the SAFE Act and compliance issues in your area).

Regarding the Act itself, I don't know the exact reason this came about. Though, I can only guess it has something to do with unscrupulous activity against the public good.

(Note: For those who have been in the real estate business for awhile, I'm thinking this came about in a similar fashion like the foreclosure law that was passed awhile back).

Unfortunately, there are more unethical investors out there than ethical ones. And, these unethical investors are the ones that ruin it for everyone else - they give the word "investor" a bad name.

(Note: Over and over again, I've said I don't like using the word "investor" - it just gives off a bad connotation to the general public).

So, when this happens the government has to step in and enforce the rules - regulate in the name of the public good (aka consumer protection).

I'm going to be honest with you, there's a lot of unethical activity that happens in the real estate business. I see it all the time, even today.

In the mobile home business alone, I've heard first hand of investors who are selling mobile homes they don't own to folks. It still happens today. It's unfortunate.

These unscrupulous investors screw people out of their hard earned money and ruin it for the rest of us. Sure, they make a quick buck or two. But, that is short term and eventually it catches up to them. They ruin any chance of repeat business.

Reputation is everything. And, having just one bad experience can ruin your reputation...forever.

Getting back to the Act itself, the question many have is, "Do 'Lonnie' deals fall under the SAFE Act?" Basically, there are two main issues investors have been debating.

First, the definition of "dwelling." From my understanding, it's not quite spelled out in the Act itself if a mobile home as personal property is considered a "dwelling" - the interpretation as it pertains to enforcement will depend on each area.

Second, the debate is the definition of "mortgage." According to some, a "mortgage" is one that is secured by a deed of trust. With "Lonnie" deals (as personal property), there is no deed of trust- they are usually secured by a promissory note.

So, the question is do "Lonnie" deals fall under this act (which is basically a mortgage act)? If so, what is the justification?

(Note: Even if mobile homes as personal property fall under the definition of "dwelling," the fact of the matter are that "Lonnie" deals are not secured by a mortgage there is no deed of trust (as in regular real estate transactions) - it is simply a promissory note. I would further go to say, this may fall under the same category as a car - they seem to work in my opinion the same way as "Lonnie" deals. So, then how could such a transaction fall under a mortgage related act, what is the justification? Again, these are just my thoughts).

In my opinion, the Act is going to come down to interpretation. And, each area (state) is going to have their own interpretation of the law since the federal government is basically leaving it up to them to enforce the law in the first place.

Quite honestly, I think this is going to be more of a hindrance for most states than anything else. It's just going to cost more time and more money. And, I highly doubt this Act is at the top of the list for many states especially in this economy.

To administer the Act alone, each state will need to set aside funds to create a whole department to monitor and regulate the Act. Of course, it is subject to their interpretation - they will enforce it based on their interpretation of the Act.

In general, my thoughts are that most states have other things (that are more of a priority) to think about than this Act. I mean, come on look at CA - they are in a financial mess right now. To me, I think there are more important things to other states than this Act. Again, this is just my opinion.

(Note: For the CA investors out there, I feel your pain. It's a great state to live in. Though, the cost of living has just risen so high compared to other states).

So basically, I think it's going to come down to interpretation - each area (state) may have a different interpretation of the law. And, their enforcement of it will highly depend on their priorities and personnel capacity.

For those who are concerned, I highly suggest checking your local area and seeing how they plan to handle the Act in terms of interpretation as well as enforcement.

(Note: For a more thorough discussion of the Act, feel free to check out this link).

I hope this post has helped. I felt the need to address it since so many folks have contacted me about it.

Frankly, I've always had the belief that if I conduct my business honestly and am always upfront with folks, it's enough. So far it's worked. Many people have come to me due to my reputation I've worked so hard to build. And, in this business (as like in any other), reputation is everything.

Happy investing!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video: Budget "Til Debt Due Us Part"

2010-06-04T04:43:00.000-07:00

Since it's Friday, I thought I'd share with everyone a clip from an interesting series on personal finance I've started to watch, "Til Debt Due Us Part."

I think the concept of taking away credit from folks (as shown in the clip below) forces people to be more frugal. It's mind boggling to see the amount of debt that has taken over many of these people's lives as depicted in the series.

Though it may seem simple in nature, the basic concepts of personal finance have not been learned and put into play by many.

Hope you enjoy the clip!

(Note: For those interested, feel free to check out my Top 10 Personal Finance Books. Thanks for reading!)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Video Link