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:
(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!
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!
(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!
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!
(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!
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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