Blue Collar Comedy: Ghost in the Trailer

Since it's Friday, I thought I'd keep it light and share with everyone this very entertaining and mobile home related song, "Ghost In the Trailer." Enjoy!

"The song that started a worldwide wave of mobile home paranoia. Somethin' creepy is going on under the double wide, and this time it ain't a raccoon!"



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Resource Review: How BiggerPockets.com Can Help Mobile Home Investors Network and Grow Their Business

(Note: I don't receive any compensation for sharing this resource with you, I have to say this because of the disclaimer blogging rules).

Since I'm a strong believer in the power of networking, I thought I'd make a post about one of the resources that I frequent: BiggerPockets.com.

Actually, I found this site one day through a search on the Internet when I typed in "real estate forums." It had been awhile since I visited the usual real estate forums I frequented back then. So, I wanted to see what else was out there and up popped a link to BiggerPockets.com.

At the time, I had never heard of BiggerPockets. So, I took a trip there on the "Internet Express" - I found it to be a very interesting and unique type of site - it wasn't your typical real estate site, it was different. But, how?

First thing I noticed was that signing up as a member (basic membership is free), you could actually have a very detailed and customized profile. Members could add a profile pic, their signature with website address, pictures of properties, a blog, etc.

In my experience, I've never seen this type of ability to add in this kind of detail for a member profile with any of the other real estate forums that I frequented. Most of the real estate sites I visited only had a very basic profile, some with no profile at all - just an ability to post up questions and comments in the forums.

(Note: If you're a real estate investor and have been in this business for awhile, you'll probably know what sites I'm talking about).

What BiggerPockets.com allows you to do is create your own space. Think of it as a Facebook or MySpace for the real estate investing world.

As a member of BiggerPockets, you can share your real estate background information with other members just by creating a profile. Even more than just a forum to network with others in real estate, you also have the ability to create a personalized real estate blog, post up pictures of properties, submit real estate related articles, submit news through the "Bulletins" feature, share and post up events, join specific real estate related groups, keep up to date on real estate related news and trends by reading and/or subscribing to the BiggerPockets Blog, etc. I could go on and on about all of the features of the site - there's just so many.

(Note: Check out this article by the Founder of BiggerPockets.com, Josh Dorkin, about the features of the site and "How to Market Yourself and Your Business With BiggerPockets").

Here's my profile on BiggerPockets:



(Note: If you're already a member and/or just signing up, feel free to add me as a colleague if you'd like).

So you're probably wondering,"How has BiggerPocket.com helped me?"

To be honest, I'm really one who takes after Lonnie's philosophy of keeping things small - I like to keep a small operation. I'm not one who seeks out a large network. I believe in quality over quantity.

In the past, I've done things on a large scale and it's really caused a lot of stress and time. At one point in my real estate investing career, I had 30 bird dogs working with me, 10 property managers, and was mentoring 100s of people - not fun. I found most of my time was spent managing people.

I had no time to sit back and enjoy myself. I was always answering the phone, checking email, answering questions, etc. My operation was too big and it got out of hand. I felt like I was the one training and directing people to do what I already knew how to do. It got so out of hand, that it really caused a lot of stress in my life.

So, I've scaled back - a lot. And, it's made life much more enjoyable. Plus, it's made this business even more fun.

However, I've found that I really enjoy hearing about and sharing real estate related stories with other investors. This is one thing that I enjoy very much. And, I've found that with BiggerPockets.com.

Through BiggerPockets, I've read about so many different stories other real estate investors have shared - it's really quite enjoying and entertaining. Here's one of the stories I enjoyed reading through my pal Shae's blog on BiggerPockets:



And, here's an article and another story I enjoyed reading by my pal Julie on BiggerPockets:



Speaking of stories, we all have stories to share especially in the mobile home investing world (That's what Adventures In Mobile Homes is all about!) Another feature I enjoy on BiggerPockets, is the Mobile Home Investing Group and Mobile Home Investing Forum - it's really a nice place to network and meet other mobile home investors.

Apart from networking with other mobile home investors, there are other companies and resources available who are members as well. From the site, I've had a variety of different BiggerPockets members contact me (i.e. commercial real estate agents, private lenders, wholesalers, bird dogs, landlords, mobile home lenders, etc). If it weren't for BiggerPockets.com, some of these folks may never have found me.

By sharing BiggerPockets.com as a resource with you, I hope it can help you to network and grow your business. I've had some requests from people asking how to network and build a team, where to network, and if I can help build a network for them. I'm here to say, you might just find some folks to add to your network by checking out BiggerPockets.com. It's a great resource, and also a lot of fun!

Happy investing!

p.s. For those of you who are already members of BiggerPockets and/or have decided to sign up, here's a video from Josh Dorkin, the Founder of BiggerPockets, titled "How to Start Networking Effectively Using BiggerPockets.com." Thanks for reading!

Terminology Tuesday - Mobile Home Park (Lot) Lease Agreement

(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).


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Basically, the Mobile Home Park (Lot) Agreement is the agreement between the Mobile Home Park and the owner of the mobile home to abide by all of the rules and regulations of the park including (but not limited to): paying lot rent for use of the lot where the mobile home is located, maintaining landscaping, appearance of mobile home, etc.

In the agreement, the lot rent payment amount for the park including the due date and policy on late lot rent payments will be stated. Usually, there is also a pet policy.

In many family style parks, aggressive dogs such as Rottweilers and Bulldogs are not usually permitted. Also, there may be a weight limit on pets. In my experience, I've seen the weight limit be from 30lbs max - 50 lbs max.

(Note: It's funny. I always joke around with the park managers when this comes up - I've asked a few, "Do you actually weigh the pets?" One of the park managers actually had a scale in the office, what a crazy business!)

Right now (especially with the economy), I'm seeing more and more parks requiring leases signed. In many cases, it's usually a 1-2 year lease agreement with the park. This is a way for the park to retain tenants, while at the same time keeping a set amount of lot rent for the duration for the tenants.

(Note: Since the agreement for the park is a lease agreement for usage of the lot, the mobile home park is considered the "landlord" and the owner of the mobile home is considered the "tenant." The concept is just like a regular lease - there's a landlord and a tenant).

For those who are just starting out, many times the park will require an application on file for investors who do business in their park. This is standard procedure.

(Note: When I first started out, I was a bit taken back and surprised about this policy. Though, I thought about it and understand why now - if I were a park manager/owner, I'd want to know who's doing business in my park too).

Basically, the paperwork will involve the same application for the park - basic information including (but not limited to): landlord, work, criminal history, etc. (It's very similar to a rental application for an apartment and/or home).

The reason for this is many times they want to know who exactly they are doing business with. If for some reason, an investor buys a home in their park and there's a park issue - they want to have the peace of mind they are dealing with someone who they can trust and has committed to working together with them.

In the beginning as a new investor, the park does not know you. So, the only thing they can go on is the park application. If you fill it out to the best of your knowledge and you are honest and upfront with the park, they will learn to trust you.

Will they run credit? Yes. Will they verify all of the information on the application? Yes. If you have bad credit, will they not allow you to work in the park? Not necessarily.

(Note: If the park manager/owner likes you, they may even waive the application fee).

Usually, it will be up to the park manager/owner to make the decision whether or not they will allow you to work in their park. Remember, it is their park - you need to abide by their rules.

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.

Now, I know what some of you are thinking - this is crazy, I don't want anyone to know my information. But, if you look at it from the park's perspective they need to know exactly who they're dealing with. If you're honest and upfront with them, usually there will be no problems working in the park.

Over time, they will get to know and trust you. At first, it can be awkward. Though, over time they will get to know you and eventually trust you. And, trust and being able to establish trust is the backbone of this business.

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: Japanese Mobile Home

Since it's Friday, I thought I'd keep it light and share with everyone this neat video - it's a Japanese mobile home. Enjoy!

"After two years of work, a group of Japanese students has completed the build of a fantastic transportable home. The compact dwelling is based on a truck and has a pop-up second floor containing a cosy Japanese bedroom. It's hard to believe, but the mobile home also contains a kitchen, bathroom, deck and living area".

p.s. If you've joined my Facebook Page already, I just wanted to say "thanks" for all your support. If you know anyone else who may be interested in learning about mobile home investing, feel free to send them over. Thanks again!



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Done Deal: 4/2 Singlewide Mobile Home In a Park

Wow, I finally closed with the buyers who were approved on this deal over the weekend.

With my last update, I had mentioned the buyers had signed the park paperwork along with the deposit for the park and first month's lot rent . So, all that was left to do was my paperwork for the mobile home.

Unfortunately, I had been sick and tax time had come. So, we had to postpone the closing paperwork. Since the buyers had already signed the park paperwork, they agreed and understood they were now responsible for the lot rent.

In any case, we finally closed over the weekend. I just had to push this back until I got better and finished up taxes.

Though, it didn't go as smoothly as I expected (as they never do). When the buyers arrived at the home, the husband had forgot his ID though his wife had hers. Before we had even met, I told them on the phone we needed everyone's IDs for the paperwork for the home.

(Note: The reason I require IDs is because I get all the papework notarized - I do things just like the park. Other fellow mobile home investors have told me that's not necesssary but that's just the way I operate. Since I started out investing in real estate, I'm used to dotting all my "i's" and "crossing all my t's" - it's just the way I am. And, I've transferred this to the mobile home business).

In any case, the buyers had to go back and retrieve the second ID. I agreed to wait at the home for them to return so we could proceed with the paperwork.

(Note: When going out to meet buyers and sellers, you may have some down time. I always recommend bringing a good book to read (something that can help you with your business) to keep you occupied in between meetings - it's a good opportunity to catch up on your reading).

When the buyers had arrived at the home with the second ID, it was already mid-afternoon. My bank (where I usually go to get things notarized) was already closing. (Mind you, this was a Saturday - it's hard to find a notary open past mid-afternoon on Saturdays).

So, I called around various establishments who performed notary services (i.e. Mail Boxes, etc., Kinko's, etc). However, all of them were already closed. At this point, I was pretty upset. I told the buyers if we could not find a notary today (And, no I was not going to use a mobile notary who would be charging $100+ to come out plus $2.00 per page/signature), then we would have to re-schedule for next week.

However, the buyers really wanted to move in over the weekend. They told me they were already packed and wanted to use this time to move in.

(Note: I never allow buyers to move in without doing all the necessary paperwork, submitting the entire deposit amount, and having all the paperwork notarized. I'd rather do everything in one fell swoop, not halfway and/or in bits and pieces. Some investors allow buyers to move in without paying the entire deposit amount and making it up in payments - this is not my style. I'd rather do things my way and have all the requirements met beforehand so the process is complete).

In search of a notary, I dialed so many numbers. With my last ounce of energy, I finally found one that was still open - it was going to close in an hour. So, I hopped in my car and the buyers in theirs and we were off to the notary.

When we got to the notary, we went over all the paperwork and had it all signed and notarized (of course). I was just about to hand over the keys to the buyers when I had noticed the down payment they were going to give me for the home was all in cash. Yes, that's right - cash.

They had an envelope filled with cash and were attempting to count it all out - in 100s (the down payment amount was 2k). Ok, my rule of thumb is that I never take cash - it's there to protect both the buyers and myself so that we have a record of what's been paid. The only form of payment I accept is cashier's check or money order.

I informed the buyers we really needed either a cashier's check or money order - we cannot do the transaction in cash. (I always explain this upfront, though sometimes people can forget as they get caught up in their day to day lives).

The buyers asked if I could just take it since it's already late in the day and told me they weren't concerned about having a paper record - they said they trusted me that I would acknowledge they paid the full amount for the down payment. However, I told them this is not how I operate - we need to have a paper record to show what has been paid so there is no confusion.

The buyers understood. Thank goodness, there was a place up the street that issued money orders and was still open. Again, I hopped in my car and the buyers in their and we drove off (once again) to get a money order issued and to finally complete the transaction.

When we arrived, the buyers returned with a money order for 2k. In turn, I gave them the keys. We parted our separate ways, and yes - the deal was finally closed. What a day!

Again, this is a 4/2 singlewide mobile home in the late 1990s, 17x80, in a 5 star (high end) park. Here are some pics:

Living Room





Kitchen





Master Bath





Outdoor Storage Shed



As always, I feel that all of the deals that I've done have all required hard work and persistence - it's not easy. But, it's definitely worth it. Once the deals are put together and closed, all the hard work and effort pay off.

Going into the deal, I already knew the market - I knew this would sell fast (being a 4/2 in a 5 star park) somewhere in the mid 30k-early 40k range, which it did.

In this case, I spent 16k for the home, received 2k down and it cash flows in the $600/month range for 10 years. Plus, it's in one of my favorite parks (a 5 star park). And, I prefer doing business in high end parks that attract quality buyers - quality is what's important to me.

As Warren Buffett says, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price".

Happy investing!

p.s. If you're just starting out and aren't quite sure where you'd like to begin, here's an article that may help. Thanks for reading!

Terminology Tuesday - Flashing (Weatherproofing)

(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).



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As defined in Wikipedia:

"Flashing refers to thin continuous pieces of sheet metal or other impervious material installed to prevent the passage of water into a structure from an angle or joint. Flashing generally operates on the principle that, for water to penetrate a joint, it must work itself upward against the force of gravity or in the case of wind-driven rain, it would have to follow a tortuous path during which the driving force will be dissipated.

Flashing may be exposed or concealed. Exposed flashing is usually of a sheet metal, such as aluminium, copper, painted galvanized steel, stainless steel, zinc alloy, terne metal, lead or lead-coated copper. Metal flashing should be provided with expansion joints on long runs to prevent deformation of the metal sheets. The selected metal should not stain or be stained by adjacent materials or react chemically with them.

Flashing can assume a number of forms:

Roof flashing is placed around discontinuities or objects which protrude from the roof of a building (such as pipes and chimneys, or the edges of other roofs) to deflect water away from seams or joints.

Wall flashing may be embedded in a wall to direct water that has penetrated the wall back outside, or it may be applied in a manner intended to prevent the entry of water into the wall. Wall flashing is typically found at interruptions in the wall, such as windows and points of structural support.

Sill flashing is a concealed flashing that is typically placed under windowsills or door thresholds to prevent water from entering a wall at those points.

Base flashing is found at the base of a wall, and usually incorporates through-wall flashing with weep holes to permit the escape of water. Base flashings may be placed at the building grade or at a point where a roof intersects a wall."

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In my experience, the majority of cases where I've had to face "flashing" issues have been with mobile homes that have masonite hardboard siding.

The issue with these types of homes (that I've encountered) is that if it does not have proper "flashing" around the edges of the roof of the home and water is not properly directed away, water tends to trickle down the side of the home causing moisture damage. Over time, extensive moisture damage to the siding will require routine maintenance and will eventually need to be replaced.

(Note: With mobile homes with aluminum type siding, I haven't really faced any type of "flashing" issues and/or moisture issues if properly sealed).

An example where I had to deal with a "flashing" issue was my first deal.

From the front, it looks ok:



Though, with no metal flashing around the edges of the roof when it rained water would trickle down the side of the mobile home causing moisture damage to the siding.

(Note: When the moisture drys up and the sun comes out, the siding tends to crack and result in the pics below).











The solution is to add metal flashing to the edges around the roof so that moisture is drawn away from the siding and the home when it rains. If the masonite hardboard siding is too moist, it will need to be replaced.

On my first deal, I learned about flashing when it came time to evaluate. At first, I was a bit concerned about the moisture problems in the siding and the cracks.

I conferred with a couple fellow investors - some told me it may be a mold issue and to watch out, and others told me it may just be some boards needing to be replaced. Though, none of these investors informed me about a possible "flashing" issue.

I learned about "flashing" when I brought in a couple contractors to look at the home and take bids.

The first contractor (who was highly recommended by a fellow investor), told me the problem was definitely a mold issue and told me I had to re-side the entire house. Otherwise, I could have public health coming at my door. This contractor gave me a bid of 5k to re-side the entire mobile home.

(Note: Going into the deal, I already knew the market. I knew the wholesale value of the home was not more than 5k. Thing is, I had a "gut feeling" it wasn't a mold issue. Honestly, I've seen mold and this just wasn't it. Plus, the sellers (who also had a daughter and small dog) had been living in the home for 10 years with the siding issue for the past 3 years. I figured, if they could live in the home for all this time, then it wasn't likely to be a health issue).

It wasn't until I met with a couple more contractors that I learned of the "flashing issue." I must have met with 6 or 7 contractors, and as I got better at explaining the problem a couple of them pointed out the "flashing issue." So, that's how I learned - through experience.

Now, the "flashing issue" has become something I've picked up and can spot right away when going out to check out mobile homes. With each experience, I find that I learn something new. And, knowing is half the battle.

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: Real Estate Investor (spoof)

Since it's Friday, I thought I'd keep it light and share with everyone this very entertaining real estate investor spoof.

If you're a real estate investor (especially if you're a landlord and/or ever been a landlord), you'll definitely be able to relate. Enjoy!

"A reality spoof. Tenants are all based on actual people. Bipolar tenant, special ops tenant, psychic tenant, unemployed, drunk, bachelor bachelor tenant."

p.s. If you've joined my Facebook Page already, I just wanted to say "thanks" for all your support. If you know anyone else who may be interested in learning about mobile home investing, feel free to send them over. Thanks again!



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