(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).
When out looking at mobile homes, there are times when I have found homes to buy but need to move them. Usually, the main reason I move them are due to location (i.e. less desirable park, out on piece of land, etc).
Right now, I'm working a deal on a mobile home that I need to move - it's in a lower end park. And, I'm planning to move it into a nicer park. I've already checked out the new lot (i.e. electricity, plumbing, size, etc) - the park I'm moving the home to has agreed to pay for my moving costs, which definitely helps.
In any case, in going over the logistics of moving the home - there are a couple of other things I needed to consider in the move. One of them being the outdoor storage shed. Here's a pic:
(Note: When out looking at mobile homes in parks, it's fairly common to see these types of outdoor storage sheds alongside the homes. Sometimes they will be owned by the homeowner yet other times they will be owned by the park. It's always a good idea to ask who owns the storage shed (if any) when looking at and viewing mobile homes).
In determining the logistics of moving the outdoor storage shed, I asked my handyman what he thought it would involve to disassemble and re-assemble the shed at the new location. He told me it would be much more time and cost effective to ask the mover to move the entire shed "as-is" and not disassemble the shed as this would be extremely laborious as there are many bolts and screws on the shed itself. Here's a pic of the back so you can see:
So after getting his opinion, I decided to just have the mover move the shed "as-is" so to save on time. We are trying to get the home moved out as soon as possible to the new location.
When moving mobile homes, there are other things to consider for the move besides the home itself. A few items to consider include the storage shed (if any), porch/deck (need to figure in cost to assemble/re-assemble), skirting (removal and replacement), outside air conditioning unit (usually disconnected by a/c contractor and re-connected at new location), etc.
All in all, it's best to figure in the time and costs necessary to take care of these added items beforehand. That is why it's best to have a team lined up. Honestly, I can say - having good team players has definitely been key to success in this business.
I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use.
(Note: The blog will be on hiatus through next week. I've been a bit tied up with other deals and projects but will be back soon. Stay tuned, thanks for reading!)
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!
(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).
Recently, I've had to deal with the issue of amperage on a potential mobile home move.
Basically, the home I was looking at had an electrical maximum amperage (via the breaker box) of 200 amps. So, I was looking at a home that could run 200 amps of electricity (max).
Since I was planning to move the home to another park (as this park was just not my kind of park), I had to pick out a lot that was already set up for 200 amps electrical service (via the feeder box). Ok, so what is a "feeder box?"
Well, basically the feeder box is the main box that supplies electricity to mobile homes in a park. Usually, the main "feeder box" will look like a bunch of small boxes side by side. Each small "feeder box" within the main "feeder box" will usually be labeled as to the lot number and will say how much amperage it can handle.
(Note: Usually, each small "feeder box" will say usually 100amps, 125amps, 150amps, or 200amps. Most of the time, the 100amps/125amps/150amps will be homes that use both electric and gas but not all the time).
To give you an idea of what a main "feeder box" looks like, here's a pic:
Since the home I had in mind had a maximum amperage of 200 amps, I needed to pick out a lot with a "feeder" box that could support 200 amps. Seriously, the last thing I wanted to do was move a home on a lot with a "feeder box" that could only support 100 amps on a 200 amps (max) home - definitely not a good idea.
Ok, so how do you determine how much amperage a "feeder box" can handle? Usually, you can check the "feeder box" that corresponds to the lot number of the lot picked out and just lift up the panel underneath the meter. Here's a pic:
Panel underneath meter lifted (as noted 200 amps):
So, this is how to check amperage on a home to make sure it's able to work with the appropriate "feeder box" which is especially important when moving homes into a park.
Seriously, it's not a joke - this is important stuff to know. I knew one fellow investor who knew nothing about mobile home parks and bought one that had feeders that only supported 60 amps (max) type homes.
Well, in doing his numbers and calculations in terms of turning the homes around - he thought he would be able to bank on a large sum of money in terms of income from the lots as well as doing "Lonnie" deals (He planned to fill the lots with newer homes).
As it turns out, after he bought the park - he soon found that the park's "feeders" could only support 60 amps (max) for each lot which could basically support older 1960s and 1970s style homes (which are extremely small and also hard to find nevertheless).
But, if he wanted to bring in larger homes - he would need to do an entire electrical upgrade of the entire park of at least 100 amps on the "feeders" and up. Big mistake.
It cost him both time and money. To make a long story short, he ended up doing an entire electrical upgrade of the entire park which costed him well over 6 figures! (ouch!)
So, yes - knowing the amperage of homes and what the lots can handle in the parks is extremely important to know. Without having this knowledge, it's something that can cost both time and money. That is why I have a team to educate me on the specifics and details of what I do not know - it's hard to know everything!
I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use.
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!
(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).
During the course of your mobile home investing journey, you may come across other investors who buy notes (aka Note Buyers). Usually, these folks look for notes to buy for cash to derive passive income and cash flow.
So, why would someone buy notes? Well, usually note buyers would rather concentrate their efforts on buying notes for cash flow than go out and do the work to put "Lonnie" deals together - it's more of a time issue than anything else.
(Note: Finding and putting together "Lonnie" deals do take a significant amount of time).
For me personally, I am constantly receiving inquiries from note buyers and fellow investors. Usually, these people will already be familiar with the mobile home business or know someone who is. A couple of park managers I know work with note buyers and usually bring up the issue when I go see them. And, even some park owners have expressed interest.
Though I am not interested in selling my notes at this time, I do know some fellow investors who choose to do so. But, why?
Usually, it's more of a cash issue. When they run low on cash, they usually sell some of their notes (at a discount) because they need the cash for personal reasons or to raise more money for their deals.
(Note: Personally, I do know a fellow investor who sells half of his "Lonnie" deals (aka notes) to raise more money to do more deals and keeps the rest of them in place).
So, how much of a discount do these notes get sold at? Well, it really comes down to negotiation - what the seller is willing to sell for and what they buyer is willing to buy for.
Most times, I see note buyers start their offers at $0.50 on the dollar based on the value of the note. Though, I've heard of some who offer even less. But, then again - there are others who offer more. At times, I've been offered $.70-$0.80 on the dollar for mine. Again, it's all a matter of negotiation.
(Note: For those looking for notes to buy, park owners are a great source. I've had several park owners contact me asking if I'd be interested in buying their mobile home notes. In these cases, they are usually in need of raising money to free up cash. Usually, it's a good idea to see what exactly they're looking for in terms of a price for their notes. Some will tell you (as one park told me they were looking for at least $0.75 on the dollar), though others may just tell you to make an offer).
Now, if you are interested in selling your notes there is another option - selling partial notes. I had no idea this option even existed until a park manager told me some note buyers she works with are willing to buy partial notes. So, how does this work?
As I understand it, a certain part of the note can be sold (at a discount) - either the first half of the note or the second half. Depending on which half you decide to sell, then the buyer will then start receiving benefit from the note (aka the first half or second half of the note).
Personally, I do not look for notes to buy. I prefer to put my own "Lonnie" deals together. Though, others I know who do buy notes tell me it's more of a time issue for them - they would rather just focus on finding and buying notes already put together than going out and putting them together themselves. There's nothing wrong with that - to each his own.
The way I see it, buying and selling notes is just another option to have in your toolbox in the mobile home business. And, having options is always a good thing.
I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use.
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!
(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).
When working with both sellers and buyers, I always do a final walk through on the day of closing. For me, it's important to conduct it on the day of closing so that there are no surprises. (And, believe me there can be some pretty wild ones in this business!)
Though some folks may conduct their final walk through a day or two before closing, I really feel more comfortable doing it on the day of closing even if it means taking up more time.
Basically, I usually meet with the other party at the home on the day of closing (whether it be the seller or the buyer). Then, we proceed to do a walk through of the home making note of what was agreed upon. After wards, then we proceed to continue by doing the rest of the paperwork for the closing.
(Note: When working with both sellers and buyers, I always do a smoke detector verification check on the day of closing. Before we close, I want to make sure all of the smoke detectors are working).
By conducting a final walk through on the day of closing (on both the seller and the buyer end), it gives me peace of mind that all parties can confirm the condition of the home as well as confirm what they are getting on that day.
(Note: When working with sellers, I always start insurance coverage on the day of closing. Usually, I will let my insurance agent know ahead of time the scheduled closing day and usually plan to bind coverage for that day).
I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use.
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!
(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).
When both purchasing and selling mobile homes, it's best to make sure all of the smoke detectors are working in the home. In fact, it's usually a requirement from the insurance company that all smoke detectors have been checked and verified before coverage can be placed.
(Note: Before I purchase a mobile home, I make sure the smoke detectors are working on closing day. On closing day, this is when I instruct my insurance company to start coverage).
In general, there are 2 main types of smoke detectors - battery powered and electrical. Usually, electrical type smoke detectors will come pre-installed with the home. However, these types of smoke detectors will only work when there is power. If for some reason there's a loss of power in the home, then electrical type smoke detectors will no longer function.
Many times (but not all) homeowners do not realize the danger in having only electrical type smoke detectors in their homes. Without power, these type of smoke detectors will not work. Should there ever be an electrical outage, this could be dangerous if a fire occurs.
This is why I go out and make sure there are also battery operated type smoke detectors (with a fresh battery of course!) inside homes with only electrical type smoke detectors. For me personally, I'd rather be safe than sorry.
Is this an added cost? Yes. But, to me - it's the cost of doing business. I'd rather have peace of mind and be able to sleep at night that the home is well equipped to detect a possible fire than not. But, that's just me.
As a general rule of thumb, there should be smoke detectors in the kitchen (sometimes 2), hallways near the bedrooms, and living room areas. Before purchasing a mobile home, I always verify the types of smoke detectors in the home as well as whether they are original or added on.
On the other hand, you also want to be aware if there have been any smoke detectors removed or detached from the home. Personally, I've run into a few situations where the smoke detectors were removed as some homeowners just did not feel it necessary as they had to keep changing out the batteries.
(Note: This is definitely not a good reason to remove a smoke detector. It amazes me what some people will do just to avoid doing a little work!)
Before purchasing (as well as selling) a mobile home, I highly recommend you make sure you check and verify all smoke detectors are properly working. If the home comes with the electrical type of smoke detectors, be sure there are battery type smoke detectors installed as well. Check the batteries - make sure they are new and in working order.
(Note: In Lonnie's book, there is a Smoke Detector Verification Form included in the forms section. I highly recommend including this in your paperwork when working with buyers).
To give you an idea of how smoke alarms work as well as how to do a smoke detector verification check, here's a short video:
(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).
**** Tricks of the Trade is a new series I have started that will be included with "Terminology Tuesday" posts. The goal of this series is to share with you the "tricks of the trade" I have learned in the mobile home business.
One of the most important members of my team have been my cleaning crews. And, I have to tell you - I've learned a great deal from them regarding cleaning homes professionally.
(Note: If you missed this Terminology Tuesday post, you may want to check it out for one of the really neat tricks I learned).
With the economy, it's definitely a buyers market right now. And, buyers are getting pickier and pickier. So, I really do take the time to get homes in pristine condition before I put them on the market - this includes cleaning them from top to bottom.
Here are some additional tricks I've learned from my cleaning crews:
Putting both time and money into getting homes ready has really made the entire selling process easier. Here's the thing, when we go into someone else's home - we usually notice things we probably wouldn't notice in our own homes. So, when the homes are getting ready I really take the time to imagine myself going into the home for the first time once it's all ready and done.
Involving myself in the cleaning process and learning the techniques the professionals use has really helped me to see that details do matter. Small details I probably would gloss over have been pointed out to me by my cleaning crews - I would have never thought to give them much attention. But, in the overall picture and scheme of things - it does matter.
As the saying goes, "You never get a second chance to make a first impression." So, I need to make the first one the best.
I hope this "Terminology Tuesday" post has helped to give you some insight on some aspects of the cleaning process I use to get mobile homes in marketable condition.
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!
(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).
**** Tricks of the Trade is a new series I have started that will be included with "Terminology Tuesday" posts. The goal of this series is to share with you the "tricks of the trade" I have learned in the mobile home business.
When buying mobile homes and getting them ready before they are put on the market, one of the things that I constantly deal with are mini blinds.
(Note: This is where my style differs with Lonnie's - he usually sells "as-is" while I do not. Again, it's all a matter of personality - everyone has a different style and way of doing things).
Most homes come standard with mini blinds and most owners I deal with have also left the curtains with the blinds. Though, I usually encourage them to take the curtains but a lot of times they end up leaving them with the home. (Along with a few other items!)
But, I usually prefer to remove the curtains and just leave the blinds when getting homes ready. Why?
Well, the curtains are nice and all. But, I really treat this business like the property managers do - I try to make everything uniform. And, that includes the blinds inside the homes.
(Note: For those interested, when getting units ready in the property management business they refer to the process as a "make ready." Basically, this involves getting the unit cleaned and painted (if necessary) for the next occupant. In most cases, the units are uniform in the way they are presented).
Many times, having the existing curtains can add too much (i.e. darkness, decoration, etc) to a room. Also, people have different tastes - I don't want to turn off an existing buyer just because they don't like the curtains. So, I usually end up removing the curtains and then dealing with the existing blinds in the home.
Here are a few pics of the home on this deal with the curtains and without them with just the blinds:
With the curtains
(Note: Notice how dark the curtains make the room. If the room looks darker, to most folks it looks smaller).
Without the curtains and with just the mini blinds
(Note: Notice how the mini blinds make the home look lighter (rather than darker). If the room looks lighter, to most folks it looks bigger just like with this deal).
Regarding the process, once the curtains are removed than the next decision I have to make is whether or not to work with the existing blinds or purchase new ones. Usually, I will make the decision based on how the blinds look - if some panels are missing and/or really bent then I will go ahead and purchase new ones.
If they still look ok and just look like they need a good cleaning (and most do but just have a lot of dust), then I keep them. But, then you may be asking - how do you clean them?
Well, in the early days I would just give them a light dusting. But, this was very time consuming trying to get the dust out of every panel and every mini blind in every room. Then, I learned a really neat trick from one of my cleaning crews.
(Note: I have a few cleaning crews on hand for homes that need more than a light cleaning (i.e. smokers, pets, etc). If the home just needs a light cleaning, then I do the job myself. (And, have been mistaken for a cleaning lady driving around the park with my cleaning supplies and all!)
Basically, I learned a quicker and faster way to clean mini blinds - dipping them in the bathtub using Purple Power.
Here's a snapshot
I let them sit there for a bit (while cleaning the rest of the home) and then rinse them off and wipe them down with water. (The dirt should come right off). And, you know what? It really works!
I really do learn something new everyday in this business. And, most of the time what I learn are from other folks just like with this experience!
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!
(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).
**** Tricks of the Trade is a new series I have started that will be included with "Terminology Tuesday" posts. The goal of this series is to share with you the "tricks of the trade" I have learned in the mobile home business.
Recently, I've had to deal with an issue on this deal - covering up a hitch.
Since I only deal with high end parks now due to this experience, the majority of these parks have strict regulations regarding hitches - they are prohibited from being seen. Usually, in the more low end parks - hitches are allowed to be in plain view. And, in most cases - there are many hitches to be seen in these type parks.
In all honesty, I think it is more an aesthetic issue than anything. Having the hitches not in view just makes the park and the overall community look nicer (in my opinion). So, I can see why hitches are prohibited from being seen in most high end parks.
Since I have a good relationship with the park manager for this deal, I was allowed to cover the hitch. Now, the park manager did tell me in their rules and regulations that it states all hitches in the parks must be removed and placed underneath the homes. Though, the park manager told me I wouldn't be made to do this as it costs quite a bit of money just to raise the home and remove the hitch. This is the power of building strong relationships.
So, you may be asking yourself - why do I have to deal with this issue and not the previous owner?
Well, when I negotiated this deal with the previous owner the hitch was actually covered. Awhile back, the previous management had planted bushes in the park which had covered up the hitch. Though, this bush really grew out of control. And, I didn't like it one bit. Here's a snapshot:
(Note: In addition, I had to also find someone to cut this bush down. (Talk about major stress issues!) Went through a bit of drama interviewing and getting bids from a few contractors but finally found a guy who could do it. And, he did a great job!)
Once the bushes were removed and cut down, then the hitch was exposed and the home looked like this:
Once the hitch was exposed, I took some measurements. I measured 12 inches off the ground (which was great as it wasn't too high) and 50 inches across for the sides and height of the hitch.
(Note: For those who are new to the mobile home business, in most cases the length of the hitch is standard - usually 4 feet long. And, this 4 feet gets added to the overall length of the home. For example, a 16x76 foot long home with a hitch would actually be 16x80 foot long (if you count the hitch).
In any case, I asked the park manager for a few ideas to cover the hitch. The park manager told me there are several things that I could do, but all that mattered was that it looked nice. Ok, but that is so subjective! Something that looks nice to one person may not look nice to another. I was really stressing about this!
Though, the park manager assured me this was not a big issue. The park manager told me to go around the park and get ideas by looking at what others have done. A few suggestions were to cover up the hitch in lattice, build a box around it, or use some bricks to cover it up. So, I went around the park to get a few ideas. (Talk about ridiculous!)
Here's what I found:
Good
Better
Not that great
After checking out what others had done in the park, I took a trip to the local hardware store (aka Home Depot and Lowe's). And, after much deliberation came up with this:
Now, here's what the home looks like with the newly covered hitch:
After I completed the project, I was really relieved just to get it done. Now, the hitch is covered (per park regulations). And, I can honestly say this has definitely been another new and educational learning experience for me.
I hope this "Terminology Tuesday" post has been helpful and has given you some useful information to use - 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!
(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).
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!
(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).
"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."
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:
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.
(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).
This is a quick video on painting a mobile home (exterior). When painting a mobile home, it's best to first make sure the home is clean from all dirt and debris - pressure washing is a good method to use.
If the outside of a mobile home looks a bit worn out and the paint is fading, you may want to look into the possibility of painting it to gain better curb side appeal. I've seen many mobile homes that have looked a bit faded and worn out, but after a good paint job have looked in tip top shape.
Personally, I've never had to paint a mobile home. Most of the homes I buy already have curbside appeal. Though, there have been some that have required some light touchup work on the outside. All in all, curbside appeal is very important. If the exterior does not look good, most folks will pass on through and not even bother to look at the interior.
The Last Finishing Touch to Painting a Mobile Home
(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).
This is a quick video on a mobile home installation. When moving mobile homes, there are two main parts - the move and the installation.
There are movers who only move mobile homes. And, there are movers who move mobile homes and also install them (They are also installers). It really depends on what they do and what they are licensed to do.
This video shows some aspects involved when installing mobile homes. One important aspect is having the lot where the mobile home will be placed leveled and free of dampness.
If raining, it's best to wait until the rain has passed and dried off before attempting to move and install a mobile home. Otherwise, the moisture in the soil from the rain will most likely make the ground very damp and uneven.
Another thing to consider when moving mobile homes is the porch and the skirting. For the porch, some mobile home movers will not move them. And, some will for an additional fee. Be prepared to make arrangements for the transport of the porch (if need be). The porch will need to confine to the standards of the park (if any) you are moving the mobile home to. Sometimes the park will have a porch or two available for you (if you're lucky!).
Regarding the skirting, most mobile home movers will rip the skirting from the home when getting ready for a move. If you're handy, you can re-use the skirting by carefully removing it.If you plan to go this route, you'll need to give yourself ample time to remove the skirting before the movers arrive.
(Note: I have a handyman who has agreed to come along with me on any potential moves. He will remove the skirting for me and replace it after the move).
(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).
In a past "Terminology Tuesday" post, I had mentioned how I've learned a lot from my cleaning crews regarding the cleaning product industry. What I've learned is that most cleaning products are just additional product lines - it's not necessary to have one cleaning product for the kitchen, one for the bathroom, one as a degreaser, etc. It can all be done with fewer products.
I had introduced a few everyday and versatile household products that can be used for cleaning in the last couple "Terminology Tuesday" posts.
So, I've decided to tie everything together and share with you a short video on how to make your own household cleaning products:
(Note: Many have asked how these cleaning type "Terminology Tuesday" posts relate to mobile home investing. For me personally, it's all a part of it because making a first impression on prospective buyers is extremely important (especially in this economy). As I've said in past posts, I rarely sell "as-is" as most buyers in the type of parks I work with are looking for homes in pristine condition. Again, this is just my style and way of doing things. I tend to work with folks who are looking for quality, not cheapness).
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!
(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).
"A bleach is a chemical that removes colors or whitens, often via oxidation. Common chemical bleaches include household chlorine bleach, a solution of approximately 3–6% sodium hypochlorite (NaClO), and oxygen bleach, which contains hydrogen peroxide or a peroxide-releasing compound such as sodium perborate, sodium percarbonate, sodium persulfate, tetrasodium pyrophosphate, or urea peroxide together with catalysts and activators, e.g., tetraacetylethylenediamine and/or sodium nonanoyloxybenzenesulfonate. Bleaching powder is calcium hypochlorite. Many bleaches have strong bactericidal properties, and are used for disinfecting and sterilizing."
In a past "Terminology Tuesday" post, I had mentioned how I've learned a lot from my cleaning crews regarding the cleaning product industry. What I've learned is that most cleaning products are just additional product lines - it's not necessary to have one cleaning product for the kitchen, one for the bathroom, one as a degreaser, etc. It can all be done with fewer products.
Bleach is one cleaning product that is very versatile - it can be used to clean and sterilize a lot of different things. The thing about bleach is is that is really cleans and kills bacteria - it's great to disinfect and to sterilize. The only thing about bleach is being around it for long periods of time - it's really powerful (the smell) as well as being a toxic in nature.
In the past, when I'm around bleach my eyes to tend to get red and water up. It's best to have a lot of ventilation when being around bleach. Though it can be toxic in nature and very strong to be around, it's a major cleaning product used by one of my cleaning crews.
To show you the cleaning power of what bleach can do, I'd like to share with you a few short videos:
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!
(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).
"Vinegar is an acidic liquid produced from the fermentation of ethanol in a process that yields its key ingredient, acetic acid (ethanoic acid). It also may come in a diluted form. The acetic acid concentration typically ranges from 4% to 8% by volume for table vinegar[1] and up to 18% for pickling. Natural vinegars also contain small amounts of tartaric acid, citric acid, and other acids. Vinegar has been used since ancient times and is an important element in European, Asian, and other cuisines. The word "vinegar" derives from the Old French vin aigre, meaning 'sour wine'."
In a past "Terminology Tuesday" post, I had mentioned how I've learned a lot from my cleaning crews regarding the cleaning product industry. What I've learned is that most cleaning products are just additional product lines - it's not necessary to have one cleaning product for the kitchen, one for the bathroom, one as a degreaser, etc. It can all be done with fewer products.
Vinegar is one cleaning product that is very versatile - it can be used to clean a lot of different things. The thing about vinegar is it's ability to make things shiny and sparkly - it's amazing. The only thing about vinegar is the smell but that disintegrates (after a bit) into the air.
I first learned about the cleaning power of vinegar on a trip to Germany. I had actually been in one of the small convenient stores, Aldi, when I noticed an employee cleaning the shelves with a familiar smell. Since by nature I'm a curious person, I asked that person what they were using to clean the shelves as it smelled very familiar - it was vinegar.
To my surprise, I asked "Why?" I was told that vinegar is good for the environment and does a really good job of cleaning - it's used throughout Germany as a cleaning product. Furthermore, I was told they also used vinegar to clean floors, walls, and all sorts of things that needed cleaning around the store - I was astonished!
Turns out, vinegar is one of their main cleaning products. At the time, it sounded kind of crazy as I usually only remember using vinegar in salad dressings or tasting it in chips (aka vinegar style!).
But, now as I step back and think about - it's actually very smart. As I mentioned in this post last week - many people who lived in some of our most toughest times, such as the Great Depression, had to do with what they had to make ends meet.
To show you the cleaning power of what vinegar can really do, I'd like to share with you a short video:
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!
(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).
"Sodium bicarbonate or sodium hydrogen carbonate is the chemical compound with the formula NaHCO3. Sodium bicarbonate is a white solid that is crystalline but often appears as a fine powder. It has a slightly salty, alkaline taste resembling that of washing soda (sodium carbonate).Since it has long been known and is widely used, the salt has many related names such as baking soda, bread soda, cooking soda, bicarbonate of soda. Colloquially, its name is shortened to sodium bicarb, bicarb soda, or simply bicarb. The word saleratus, from Latin sal æratus meaning "aerated salt", was widely used in the 19th century for both sodium bicarbonate and potassium bicarbonate. The term has now fallen out of common usage."
In a past "Terminology Tuesday" post, I had mentioned how I've learned a lot from my cleaning crews regarding the cleaning product industry. What I've learned is that most cleaning products are just additional product lines - it's not necessary to have one cleaning product for the kitchen, one for the bathroom, one as a degreaser, etc. It can all be done with fewer products.
Baking soda is one cleaning product that is very versatile - it can be used to clean so many different things. It's amazing what a little baking soda can do to spruce up a house, wash clothes, brush teeth, etc.
To show you the cleaning power of what baking soda can really do, I'd like to share with you a short video:
Pretty amazing stuff. It's astonishing to see what baking soda can really do!
Lonnie himself once told me, "If you really want to know about hard times, study the habits of those who lived through The Great Depression. Those were one of the most difficult times to live in history. If those folks can be disciplined enough to make ends meet through the most difficult times, we can do the same even today."
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!
(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).
"A (security) deposit is a sum of money paid in relation to a rented item to ensure it is returned in good condition. They are particularly common in relation to rented accommodation, where they may also be referred to as a tenancy deposit or in some places a bond. The owner of the item (the landlord in the case of accommodation) will take a sum of money from the person(s) renting the item (the tenant). If the item is returned in good condition at the conclusion of the tenancy the owner should return the deposit. If the item is returned with damage the cost of repairing that damage may be charged against the deposit, and part (or none) of the deposit will be returned."
When first starting out and looking for parks to work with, you may be asked to fill out an application for the park as well as provide a security deposit in the parks you choose to do business with.
Do not be alarmed. In my experience, this is standard protocol.
In the beginning stages, it's going to take time to get to know the parks - their managers and their owners. If you think about it, you are a stranger and they don't really know you. Sure, you've come in and established a relationship. Though, that relationship needs to be built on trust. And, trust is something that can only happen over time.
So, when first starting out be prepared to encounter this issue. In this prior post about the Mobile Home Park (Lot) Lease Agreement, I had stated the park will probably run a credit check with the application and verify all the information just like a regular prospective tenant applying for the park.
(Note: Since the park is leasing the lot, it is a landlord tenant relationship between the park and the owner of the mobile home. The park is considered the "landlord" and the owner of the mobile home is considered the "tenant.")
Regarding credit, having an unsatisfactory credit history does not necessarily mean you will not be allowed to work in the park. It all depends on the park manager/ owner and how they "feel" about you.
If the park manager/owner feels that you are a trustworthy person, in most cases they will allow you to work in their park. For some reason, if there is an issue with credit on the application - they may require you to put a deposit (in good faith) in order to work in the park.
Again, this will be evaluated on a case by case basis - it depends on the park and their feelings towards you. Remember, this is a relationship - just like a marriage. They need to feel comfortable working with you - it is their park and you will need to abide by their rules.
(Note: On the other hand, make sure you feel comfortable working with the parks you choose to do business with. In the past, I've worked parks and have not been completely comfortable with their protocols. One park in particular had much lower qualification standards than mine which I did not feel comfortable with. Now, I only work with parks with the highest qualification standards as it complements my personality. Again, it's all a matter of personality and comfort level).
Over time, you will be able to build and strengthen the relationships you have with the parks you choose to do business with. In the end, it all boils down to trust. And, trust cannot be given - it can only be earned.
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!
(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).
"This versatile cleaner and degreaser is effective on a wide variety of surfaces. The concentrated formula penetrates grease, oil and dirt on contact, then it creates a barrier between the stain and the surface. In just seconds you can wipe away even the toughest stains."
Since I work mostly high end parks due to this experience, I've mentioned in the past (such as in this post) that I rarely sell homes in "as-is" condition.
In my experience, most buyers who are looking for a home in these types of parks want everything pretty much fixed up. So, I usually have to get these homes in pristine condition before they are put on the market.
(Note: Here is where my style differs from Lonnie's - I usually don't sell "as-is" while he typically does. It's just a matter of personality and the types of parks and clientele you want to work with. In many cases, I've found the park as well as the condition of the home attract a certain clientele. Again, it's all a matter of personality and comfort level).
After I buy a mobile home, I do a complete walk through of the home noting what is needed to be fixed up to get the home in marketable condition. From the moment I walk in, I look at it as if I am the buyer - I have to put a new hat on and get myself into a "homeowner" type of mentality.
When going through the home, I think to myself - "If I were a potential buyer, how would I like this home to be fixed up and what types of things would I notice?"
In my cases, the home will need to be cleaned. There are 2 major things involved. First, the home itself (inside and outside). And, second the floor.
If the home on the inside is more of a "light" cleaning job, then I do the work myself. When I say "light, " I mean it doesen't need that much cleaning - just a spruce up here and there. And, also some vacuuming (if there is carpet and is not very dirty).
However, if the home on the inside needs more of a "heavy" (in the business they refer to it as a "deep clean") cleaning job then I end up bringing in a professional cleaning company.
(Note: In my experience if the previous homeowners were smokers and/or had pets usually the home will require a "deep cleaning").
I work with professional cleaning companies (commercial grade) if a "deep cleaning" is necessary - they are essential members of my team.
When working with professional cleaning companies, I've found most limit their usage to only 1 or 2 main products. I've learned from them that many of the cleaning products out there are really not all necessary to have when cleaning.
(Note: For those interested, a lot of cleaning products are just additional product lines. What I've learned is that it's not necessary to have one cleaning product for the kitchen, one for the bathroom, one as a degreaser, etc. It can all be done with fewer products).
One of the "secrets" I've learned in the cleaning business has been this product, "Purple Power." Basically, "Purple Power" can typically clean most anything. One of my cleaning crews uses this product for all their cleaning jobs - it's the only product they use. And, it works.
In one of the homes, my cleaning crew actually dipped the existing mini blinds in "Purple Power" to save me money (I had no idea they did this until afterwards) and all of a sudden the smoke stains came out - it looked brand new. I was baffled and amazed at the same time.
Personally, I've used it myself on light cleaning jobs such as this one - it worked great!
(Note: When using "Purple Power," I've had to be really careful as it's very concentrated and needs to be diluted. I used it to wipe up some cabinets. What I've learned after wiping the cabinets down, is that I need to go over it again with water as not to stain them. What ended up happening was that I wiped all the cabinets with "Purple Power" (diluted) and some of them stained a bit - I should have wiped them down in sections. Though, I was able to remove the stains with a good water wipe down).
Typically, I've been able to find "Purple Power" at Wal-Mart. It's a very good product and very affordable. Compared to Simple Green (which I like using as well), it's much more cost efficient.
(Note: In Germany, I learned that many professional cleaning companies use vinegar as their main cleaning product. I had no idea, pretty interesting!)
I hope this "Terminology Tuesday" post has helped to give you some insight on the cleaning process I use to get mobile homes in marketable condition.
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!
Entrepreneur. Dreamer. Thinker. Doer.
I started out investing in real estate like most people in single family homes. In the beginning, I found deals for other investors. After awhile, I started doing deals myself. Though, I found myself always working and was burned out from being a landlord. So, I dove into the wacky world of mobile home investing and here I am. It's much more fun. This blog is here to take you along on my journey and share with you my adventures investing in mobile homes. Contact Info Contact me
If you have questions about mobile home/real estate investing or want me to check something out (i.e. article, website, blog, video, etc), feel free to send it in. (Questions about mobile home/real estate investing can either be sent in or by asking through my Facebook Page). Please do not send in any file attachments - it's best if you send me a link to anything you send in. If I find it interesting/relevant, I will post it up. Thanks!
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