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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Buyers Approved!

Having a great day today, buyers have been approved for this one. Awesome!

It's crazy because the park manager just got back from vacation yesterday, the park application was just recently turned in with all the necessary supporting documents. The park manager really pushed it through for me on this one, I wasn't even expecting the call until next week. Though, I got the call today - buyers approved!

Awesome! I guess this is why it's so important to have a really close relationship with the park manager and staff. Already planning the celebration lunch for the park office, I'm thinking this time it will be a pizza party! :)

Happy investing!

Park Difficulties

Lately, I've been screening buyers for a mobile home that was recently purchased 2 weeks ago. Finally, I found a good family to work with - we are going through the application process right now. (When it comes to screening buyers, my philosophy is quality over quantity).

Usually, there are 2 steps for potential buyers to complete when working with me for a future mobile home (aka Lonnie Deal). They have to go through both my application process as well as the park's.

If there is an application fee for the park, sometimes the buyers would like to know if they've passed my application process first before they apply and submit an application fee to the park. I understand their position completely, so I do work my application first (if requested) and if they pass they submit theirs to the park. So, there are 2 different screening processes.

(Note: A fellow investor told me I'm that doing double work as the parks do their own screening. But, I have learned that I need to do my own due diligence and not depend on the park when screening buyers. Yes, it takes an extra step and more paperwork but at least I will have the confidence to know that I have screened the buyers myself).

Well, I received the application and required paperwork from the potential buyers. I went ahead and started to verify all the information today. Surprisingly, I got a very fast response back from the buyers' employer today who confirmed and supplied all the information I needed in terms of work information and income. (Usually, when I contact the employer to do the employment verification for the job it takes a couple days).

So, everything looked good and verified for the work and income information. Now, I just needed to confirm their rental payment history.

In this case, the potential buyers were living in another park (not too far away) and had their home paid off free and clear - their expense was only lot rent. They wanted to move out of the current park they were living in into this park - they had been looking for a long time for a mobile home in this park.

Their plan was to give the home to a relative and/or sell it for a quick sale. (Note: I only work in high end parks now. In my experience, the high end parks tend to attract the kind of clientele that fit my personality. I find the more lower end parks really don't fit my personality (comfort level) and are much more difficult to find buyers who fit my critiera. The reason I do not work lower end parks is because of this experience).

In any case, I know the manager of this park where the potential buyers are currently living. Now, this manager has a reputation among investors as well as the park managers in the area to be a very difficult manager to work with. So difficult, that I chose not to do business in this particular park. (Honestly, I did not enter this business to make things harder on me. If a park manager is difficult to work with, I tend to stay away from working that park).

I call the park to verify the rental payment history of the potential buyers. While on the phone, I could already feel the tension in the air. The first question that was asked was which tenants and if I had a written authorization to release the information from the tenants. I said, "Yes," and sent it over.

So, the park received it. Guess what? Well, now the park manager refuses to verify any kind of rental payment history with these tenants because she says they don't rent from the park. Meaning the tenants do not rent a home from the park, they own and just pay lot rent. I say, "Ok, I just want to verify they have been paying lot rent on time."

Well, you know what? The park manager says they don't verify that because they are not renters of the park. They know what I'm talking about - they are just being uncooperative. I guess they are doing everything they can not to let these people leave. Plus, a lot of the residents (who are families) of that park have been calling me asking if I have any mobile homes available in other parks. I know people want to leave that park because it's so difficult to work with the manager. (I guess a good source of potential buyers, eh?)

To make a long story short, I don't get the confirmation I need to verify the rental payment history. I call my park asking what they need to verify the information. They tell me if this park the potential buyers are living in are uncooperative, all we need to verify is proof of payment (i.e. checks, money order, etc) that the lot rent was paid and received on time for the past year.

So, I call the potential buyers and tell them the news. They are more than cooperative. Now, I have to go meet with them today and they will supply me with all the paperwork I have requested to get the info we need verified.

Wow, what an adventure this business can be! Hopefully, I can get this all wrapped up and move on to the next deal. Once this closes, it'll be another nice and relaxing cash flow payday for many years to come!

p.s. Here's a pic:



Happy investing!