Since it's Friday, I thought I'd keep it light and share with everyone this very entertaining video spoof about the short sale process by my tweep, Nathan Jurewicz (aka "Short Sale Kid").
"Nathan Jurewicz the Short Sale Kid and his Short Sales Riches team spoofs Step by Step instructions on how to deal with Bank of Americas Loss Mitigation Department."
Enjoy!
p.s. For anyone interested, I recently wrote an article for my pal Julie Broad from Rev N You. If you'd like to check it out, you can find it here. Thanks for reading!
(Note: Recently, I've had a lot of folks contact me asking what the difference between some of Lonnie's as well as other mobile home investing materials out there and which one I'd recommend the most. So, I've decided to go ahead and start a new series of posts - book reviews).
"You should never let the mail carrier pass your house without leaving a check."
For those who have already read this book, his latest book "Making Money with Mobile Homes" is yet another good read.
Many have asked me what the difference is between the two books, "Deals on Wheels" vs. "Making Money with Mobile Homes." I would say the main difference is the viewpoint and style of each book.
In "Deals on Wheels," Lonnie really focuses on the concept of mobile home investing (it's advantages) as well as the nuts and bolts (aka the "how to") involved. On the other hand, "Making Money with Mobile Homes," is more of a book filled with more stories and ideas based on the same concept.
What I enjoyed about "Making Money with Mobile Homes," was the stories. There were stories I could relate to and there were new stories that gave me ideas. However, I would say this book is for those who have already familiarized themselves with the mobile home business as a whole.
(Note: For those who have not read "Deals on Wheels" yet, I highly recommend reading it first).
For those who are familiar with the mobile home business, it's definitely a relatable book. There are so many stories that I could relate to while reading the book. And, there are new stories that gave me ideas on how and what I can do to improve - it gave me ideas on other options out there.
Some folks don't like it when books have too many stories - I have heard some call Lonnie's materials full of "fluff." But, you know what? That's how we learn - through stories and experiences.
I could read all the "how to" guides in the world. But, if there are no stories and experiences I probably would not be as interested and would not learn as much.
Just like in the book "Rich Dad, Poor Dad," we all enjoy a good story. Stories make things interesting, stories intrigue us. Without stories, I find those types of books to be dry and not as interesting.
So, if you're really interested in the mobile home world or if you're already in the business and want to learn more, I definitely recommend this book.
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).
Since his passing which was recent (months ago), his continuing legacy and education continues through his students and his materials. He was truly a great man and contributed so much to the real estate investing world.
As for mobile homes, it became one of his niche specialties. Apart from Lonnie deals, he also specialized in mobile homes with land as well as parks. I have read his material on mobile home investing - it is excellent.
To honor Jack Miller, here is an interview clip with him as he talks about his experience in the mobile home investing world:
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!
According to Wikipedia, the film is set to release on September 24, 2010.
Though the old trailer did not reveal much about the movie, the new trailer had more to offer. Check it out!
p.s. If anyone out there has any seen any good business and/or real estate related movies you've enjoyed, I'd definitely be interested in hearing about them. I'm an avid moviegoer, it's one of the things I enjoy doing. Thanks for reading!
Recently, I missed out on an opportunity. Yet, this opportunity may not have been the best opportunity for me. But, in the spur of the moment I felt it was an opportunity. Now, looking back - I know I made the right decision.
I got a call from a couple who were moving out of the area due to a job transfer. They told me they needed to sell their home quick. It was a 3 bedroom, 2 bath home in one of my favorite parks.
Naturally, I went out to take a look at the home. It was in fairly good condition on the outside - it had curb appeal, a definite plus. Though, the inside needed some work. I'm not talking major repairs but it did need some work to get it up to par for a qualified buyer.
(Note: In my experience, the types of buyers that high end parks tend to attract are those who are looking for homes to be fixed up. I rarely sell "as-is" and have to visualize myself as a prospective homeowner when going to inspect these homes).
The type of work that was needed included floor work (there were mixed vinyl patterns in the living room and the kitchen) and cabinet work (the cabinets were really worn down and needed either a paint job and/or finishing).
Regarding the floor work, the owners had taken up the original carpet which was in the living room and pulled it up - they had laid their own vinyl. And, in the kitchen they had laid their own vinyl as well (a different pattern) which did not really match all together. But, in the hallway they had tiled it very nicely and had planned to tile the kitchen as well. Problem is, they had to leave due to the job transfer.
So, going into this home with the perception of a prospective homeowner I knew it would need floor work. I really don't like when homeowners change the make up of the home and tear out the existing floor surface such as carpet as in some cases when it's been laid over with vinyl - it just does not match. Though, my preference is with my own homeowner type mentality. I understand it's their home, I guess some have different tastes than others.
To make a long story short, since the home needed some floor work and cabinet work plus a good cleaning (there were many people living in the home, a good professional cleaning is needed in these cases) I would not be able to meet the seller's asking price of 14k. I knew it was priced well for a homeowner, it was a solid home - it just had some cosmetic issues. Though, I knew if I were to do a Lonnie deal with this one - I could only offer it for 24k. So going with Lonnie's 50% formula, I knew the most I could have in this deal (including doing the floor work, cleaning, holding costs, cabinet work, etc) based on those numbers was 12k.
I offered 10k. But, the sellers declined. They told me it was a really good deal but the lowest they could go was 13k. Then, they reiterated how it was a solid home - they had lived in the home for over 10 years. These were long term type owners - my favorite kind.
But, the numbers just did not work out. My gut feeling told me, you cannot overpay for this home - it's a solid home but it still needs work. And, I know the types of buyers I work with for these types of parks want things in pristine condition. Plus, this home was in the smallest category of mobile homes - I'm used to buying the larger homes, not the smaller ones. And, I've done it for much less than this in better condition.
So, I walked away. Even though, I had a small voice inside of me saying "Maybe you can make this work, the issues may not be so bad," I remember one thing a wise investor once told me - "Don't force a deal. If you can't make the numbers work, don't do it. There are so many other homes out there."
And, guess what? This saying is so true because this week I got a call from a seller I've been working with for a long time. I was supposed to buy this particular one a month ago but there were title issues. And, we were waiting to get these title issues taken care. Well, the paperwork got rejected and returned and they had to file for it again (which was really frustrating) so I kind of just pushed this one out of my head for awhile. But, it turns out the paperwork is finally being processed and the seller is making arrangements to start moving out of the home. So, once the title is clear - I can buy it. And, this one does not need any work at all - it's my favorite kind of home (the largest one) in one of my favorite parks.
So, the lesson that I learned here is to be patient. Things will come. Success does not happen overnight. My most successful deals are those that I have really put a lot of time and energy into. And, at the end of the day - closing good deals are worth the time and effort.
I'm going to leave you here with a video here from Gary Vaynerchuk that inspired this post.
Happy investing!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
This lead came from a park manager in conversation while we were sitting in the office having coffee and donuts. (Guess who brought the coffee and donuts?)
(Note: What has worked for me with park managers is spending a lot of time with a select few I enjoy working with in nice, family style parks. For me, quality is more important that quantity. I don't mind spending a whole morning or afternoon with one park manager - it's building the relationship that counts. I see so many investors out there who try to "network" with everyone only to create mediocre relationships. For me, I've learned it's better to create a few really strong relationships than a lot of mediocre ones. Again, this is just my experience).
In any case, I learned from the park manager that this home was abandoned and taken back by the park. The park wanted to get rid of it.
They were trying to sell the home for $2500. But, the park manager told me I could have it if I just wanted to fix it up and start paying lot rent in a few months.
(Note: Now, some people may get excited about getting "free" homes in this business. But, for me "free" homes really mean expensive homes because most of these homes need a lot of work and take a lot of time to fix up. Though some have tackled these types of opportunities and have been successful at it, just by looking at the outside of the home I knew this was not my type of deal. For me personally, I'd rather spend my time on a home that needs less fix up and conforms to what the types of people I work with (usually families) are looking for (i.e. larger homes) that I know I can stand behind (i.e. support my product, know it's a good home) than something that needs a lot of fix-up work that is smaller and not really sure if I'd live in myself. Again, it's very important for me personally to be able to stand behind my product. If I cannot see myself living in the home (as well as living in the park), then I pass on the deal).
I "thanked" the park manager for letting me know about this opportunity. I told the park manager just from looking at the outside, it just really wasn't my kind of deal. The park manager understood - said someone could make something out of this but the park wasn't willing to give it away to just anyone, it had to be someone they knew and trusted to make it work.
So, as I write this the home is still sitting there in the park. No one really knows it's for sale as there is no "For Sale" sign. Again, most of the deals I work are "inside deals." In my experience, the key to being successful in this business is getting to the deals before everyone knows about them. And, that can only be done by building strong relationships. In the end, it's quality not quantity that counts.
Happy investing!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
(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!
It should be a really educational and fun series, feel free to check out the intro video (see below) Patrick made for the series- you may see a few familiar faces on there! ;)
(Note: If you haven't had a chance, feel free to check out Patrick's site - it's a great educational site to learn more about real estate investing. Thanks for reading!)
"Courage is rightly esteemed the first of human qualities because it is the quality that guarantees all others."
- Winston Churchill
Lately, I've been receiving a lot of questions from folks regarding advice they have received from other investors (both online and offline) regarding investing advice and what types of opportunities to pursue. The main question has come down to, "I was told to do this" or "I was told not to do this" - what are your thoughts?
My own personal belief is that most times nothing is ever black and white. Everyone is going to have different experiences on what they like/don't like and what works for them/what does not work for them. And, even more - people have different goals and different personalities.
Even on this blog, I've mentioned time and time again that I am not here to convince folks to invest in mobile homes. This blog is merely here to share my stories and adventures investing in mobile homes.
I am not claiming that mobile home investing is the best type of investment vehicle out there for folks. Why?
The reason why is that it's different for everyone. Not everyone is going to enjoy investing in mobile homes, not everyone will have favorable experiences with it - it's all a matter of personality, what you like/don't like and what works for you and what does not work for you.
(Note: If you're interested in learning about why I enjoy investing in mobile homes, feel free to check out this article I wrote).
In the past, I've known of other investors who have done a "Lonnie" deal or two who just didn't feel mobile home investing was for them, that's ok. Most recently, there was a blog post by my fellow blogger J. Scott on his experience with the mobile home business - he decided it just wasn't for him to pursue it at this time after his experience.
So, you see not everything is always black and white. And, I see a lot of investors out there who put things in black and white terms - this is dangerous. It's going to be different for everyone.
In the beginning, there were a lot of times where I personally sought advice from other investors more experienced (both online and offline). I found many (but not all) to be very black and white in their advice to me. And, you know what?
If I had listened to their advice, I may have not pursued a handful of opportunities that turned into deals. From my first deal to moving mobile homes, I was told not to pursue these types of opportunities for one reason or another.
Looking back, I'm glad I made the decisions that I made. And, I made them based on the rationality and belief that I could make these opportunities happen. In the end, it was sticking to my gut and knowing in my mind - I can do this.
It's good to listen to the experiences and advice of others. But, you do not always have to follow their advice - just listen. And, then you need to make your own decision - listen to that little voice inside of you.
Honestly, if you believe in what you do and do what it takes to make things happen - you will succeed.
As said in the movie, Pinocchio, "Always let your conscience be your guide."
Happy investing!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
(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!
Since it's Friday, I thought share with everyone this entertaining and nostalgic video about the evolvement of the Internet. In a way, this video kind of reflects my view on technology - sometimes I think it's moving too fast.
Personally, I'm not that much of a techie type of person. Though, I guess it's one of those things that my pal Shae at Good Faith Investing suggests I take it in baby steps, one step at a time! (Thanks, Shae!)
So, I'm slowly learning and using some technology tools. And, there are a few in this video. Can you spot some technology tools in the video that you use?
Enjoy!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
Since I've received a lot of requests for more case studies, I thought I'd make up another post for "Deal or No Deal."
This one is an early 1980s, 14x76, singlewide mobile home in one of the parks (high end) I prefer working in. The sellers had called and found me through a friend living in the park - they said they've heard what I do and asked me to check this one out.
(Note: In the beginning, I had to do a lot of marketing and networking to get the word out on what I do. My style is to be as personable as possible - I don't try to act as a big whig. I guess I follow Lonnie's style of just being a small operation - it's worked for me. Again, everyone will have their own style of doing things).
When I received the call and heard the sellers' story on why they were moving, I had a bad feeling. Basically, they told me they needed to leave because they just couldn't live in the house anymore - there was too much work that needed to be done to fix up the home.
They had been living in it for 5 years. Though, they've had so many issues with it - the central a/c had just broken down and the water heater was going to need to be replaced soon. These were just a couple of things mentioned.
(Note: When I hear the words, "We can't live in this house anymore," it's a major red flag to me. I've had so many cases where I've had these types of calls - most of these types of calls always require the home needing a lot of work and to be fixed up a great deal).
Since the home was in a park (high end) that I prefer, I decided to go ahead and make a trip out to inspect the home. Here's what I found:
(Note: The gutters had not been cleaned out for a very long time. Also, the roof had not been re-sealed since the sellers bought the home 5 years ago. There are signs of water damage on the outside as well as the inside of the home).
(Note: If you notice lines of water stains (as in the pic below) down the siding of the home, it's indication of flashing and water damage issues. For this home, it was apparent around the entire outside of the house).
From the outside alone, I knew there was going to be a lot of work needed to be done. Since there was a lot of water damage to the outside masonite hardboard siding (due to flashing, roofing and gutter issues), the outside alone would require a lot of work to replace the rotted and damaged areas especially since it was all around the entire home).
Inside of home
Living room
Kitchen
Hallway
(Note: There were some soft spots in the floor in the hallway - this had never been replaced by the sellers).
Bathroom floor
(Note: Some parts of the existing floor had collapsed. The sellers had started to remove remove and repair some of the areas. However, they did not finish as it required too much work and money).
Underneath bathroom sink
(Note: The baseboard had collapsed due to water damage - this was not repaired).
(Note: There were also signs of water damage in the bathroom above the shower. The picture did not turn out well, so I'm unable to include it here. Though, rings of water stains on the ceiling are usually indications of water damage and issues with the home).
Window a/c unit
(Central a/c had broken down - it was the original to the home).
(Note: While not always a deal killer, I've found it much more difficult to sell homes in high end parks that do not have central heat and air. In most cases, buyers who are looking in high end parks prefer homes with this feature).
For me, it was too big of a risk for the time and money involved to fix up the home. It had a lot of factors going against it to meet my criteria. Not only did the outside of the home need a lot of work, but the inside as well.
(Note: When I asked the sellers the condition of the home when they bought it 5 years ago, they told me it was a major fixer upper. The previous owner had not taken good care of the home either. And, these sellers told me they had to make a decision (due to money issues) to either fix up the outside or the inside of the home - they could not do both. So, they decided to put their money into fixing up the inside of the home. But, they were unable to finish due to money issues).
Also, the fact that it was an older home and a 2/2 without working central heat and air would be a challenge with the type of clientele I tend to work with. In my experience, the types of clientele I tend to deal with prefer homes to be fixed up with central heat and air, as well as a preference for 3/2s.
So, I passed this lead onto a fellow investor who specializes in buying fixer upper type homes and specializing in 2 bedrooms and smaller homes .
Since this fellow investor bought mostly fixer upper type homes and worked with folks looking for smaller homes, I saw it as a better fit. Plus, it would be a better use of my time to pursue other deals that better fit my criteria.
(Note: Some investors think competition is a bad thing. I'm here to say, it's actually a good thing. Everyone has their own criteria on what makes a deal. A deal to me may not be a deal to you. And, vice versa. By knowing other investors in the business, you open yourself up to more opportunities).
Though this was not a deal for me, it was a possible deal for my fellow investor. And, everyone has their own criteria on what makes a deal. For me, this one just didn't fit mine.
(Note: After telling the sellers I had decided to pass on this one, I did refer them to my fellow investor - they appreciated that. Though, they told me they really had wanted to sell to me as they liked and trusted me. They even dropped the price down to $2700 (they started at $5500) but told me they'd be negotiable with me even on that price as they were already packing - they had already found another home in another park. I "thanked them" for their kind words, I told them the fellow investor I referred this to works these kinds of homes all the time and I thought it would be a better fit. The sellers thanked me and appreciated the referral. It's always good to be able to come up with solutions for folks. Not every lead will turn out to be a deal, but I always make it a point to help others and figure out solutions to their problems).
I hope you enjoyed reading this case study of "Deal or No Deal." I hope it will help you to better understand the thought process when evaluating potential mobile home investments.
If you would like to share a story on a home you've recently passed on or pursued (aka "deal or no deal"), I'd definitely be interested in hearing about it!
p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!
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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