Taking Action

"If you want to get things done, sometimes you've got to do it yourself."

This rings so true in running a business. Either you do it yourself or you get someone else to do it for you. But, what happens when over and over and over again, things do not get done by the very people who you count on to get things done? Well, then you either do it yourself or get someone else to do it.

What really gets to me is when people say they are going to do something but never end up doing it. Now, I can go on and on and lay blame on people. But, in the end it's not going to help achieve the end result - getting the task at hand done.

I'm going through this right now with a minor rehab. It's a case where the park manager has offered to help with many aspects of the rehab. Problem is promises get made and things do not get done. I think the park manager has good intentions of helping but at the same time - time is money. And, I've got a lot of money riding on this project.

Instead of laying blame I had to go out and take action. One of the things that needed to get done was replacing the flooring in the master bathroom around the toilet. The flooring was old and very unstable, not safe to use.

So, I called my handyman and he said he'd be able to replace the floor but could not take out the toilet as that is a job that requires more skill for someone such as a plumber. The great thing about my handyman is that he knows what he can do and knows what he cannot. That is one thing that I've learned about hiring people - the good ones know their capabilities and stay away from things that are foreign to them.

In turn, I called my plumber and he agreed to remove the toilet so that my handyman could start work on replacing the floor. After my handyman finished the job, my plumber said he'd be able to put the toilet back.

Well, my handyman finished the job as scheduled. So, I called my plumber but he was well on his way to Mexico to go out of town. I had no way of reaching him as his cell phone coverage did not pick up.

What to do? I was stuck with a new floor in the bathroom and a toilet needing to be put back in its place. Well, I had to do something as people were anxious to see the house and I had not made it available to show due to the rehab work.

So, I bring this issue up with the park manager. She offers to call her plumber and tells me if he can't do it, then her husband who does fix-up work can. Well, to make a long story short the plumber never gets back to her and her husband got sick. This dragged on for a week.

So, I had to make a decision and I had to act fast. With one last attempt, I called my plumber and guess what? He just got back. I told him the problem - he apologized. And, now he is going to put back the toilet where it belongs.

What is the moral of this story?

I guess what I'm trying to say is not to depend too much on one person for all your contacts. I've tended to do that especially with the park managers. I think they have all the right contacts because they deal with fix up work and issues in the park all the time. Yes, that's good. But, I also have to have my own team and be able to make decisions when the issue arises.

So, I've began to make contractor contacts by residents of the parks in addition to park managers. And, a lot of times the residents of the park do contract work for a living - go figure! So, I've made it a habit to talk to the residents in the parks I work with and ask them who they've used for contract work on their own houses. Also, I scout the bulletin boards at the parks I work with for contractor cards. I spend time calling these contacts. I get a feel for what they do and their experience because I never know when I may need someone quick when one of my other contacts cannot perform work I need to get done. I've learned it's always good to have backup people lined up just in case so you don't rely on one person to provide you with all the contacts as I have with the park managers.

By taking action, I have avoided inaction. It is better to take action than not to act at all.

Inspecting a Mobile Home Part II

After you've inspected the inside, you're ready to inspect the outside. When inspecting the outside of a mobile home, make sure you inspect the entire home all the way around.

The first thing you'll want to check is the structure of the home. Usually, homes have two kinds of siding depending on the age of the home. They are:

1. Wood
2. Aluminum

If you are inspecting a home with wood siding, feel the wood and make sure there are no soft spots. If there are soft spots, determine how the problem occurred. How is moisture getting to the wood? Do the gutters (up above) need to be replaced?

On my first deal, I looked at a home with wood siding. It had soft spots on parts of the wood siding, it looked like a few boards needed to be replaced. I brought in 5 contractors to look at it to determine the problem. I found out the gutters (up above) needed to be replaced. The gutters had holes in them (yes, the home was over 10 years old) and when it rained the water would just go through the holes in the gutters running the side of the home. Over time, the water seeped into parts of the wood siding thus creating the soft spots I found in the wood.

If you find some soft spots when inspecting a mobile home with wood siding, determine how many boards need to be replaced and the labor it would cost to fix it. Regarding working with contractors, you can work with them either by having them provide the materials and do the work, or you provide the materials and you just hire out the labor. I will have an article about working with contractors here down the road.

The other type of siding mobile homes tend to have is aluminum siding. Usually, aluminum siding requires less maintenance and attention than wood siding homes. Make sure there are no rusty spots and all the siding is in place. Be sure to watch out for gaps in the siding which may allow weather elements such as water, sleet, snow, etc, into the home.

After you determine the condition of the siding, next thing you'll want to check out is the roof. Ask the seller when the last time the roof was replaced and/or re-sealed. Usually, if they are re-sealing the roof it's best to do it every 2-3 years. Ask the seller if they have had any leaks and/or other problems with the roof and be sure to write things down.

When inspecting the roof, I like to take a step back to see the top of the roof. Make sure things look in tact and in order. Watch out for any gaps or anything that may look like they have patched things up. If you see anything that stands out, point it out to the seller and ask them to explain what you are noticing.

Check out the gutters (up above). The gutters need to go all the way around the house. Again, ask the seller when the last time the gutters have been replaced and if they have had any problems with them. It's very important to make sure the gutters are working properly so the water is being routed properly when it rains.

Next, you'll want to check out the a/c unit. Have the seller turn it on (from the inside). Make sure it is working properly. Again, ask the seller when the last time they changed it and if they have had any problems with the unit. (You'll notice you'll be asking these same questions over and over again as you inspect each part of the home).

Look at the windows. Make sure there are no broken windows and they keep away the outside elements. You'll also want to check out the skirting - make sure it's in tact. If there is no skirting, ask the seller why and how long it has been unskirted. (If you are inspecting a home in a mobile home park, usually it will be skirted per the rules of the park but not all the time).

Go all the way around the home inspecting all the things up above. Jot down anything you notice that may need some work. Point these items to the seller and ask them if they are going to do anything to fix it up.

Lastly, be sure to obtain the serial number of the home. This is important so you can check to see if there are any liens and the seller is the owner of the home. You'll have to check with your state to determine which agency regulates Manufactured Homes. Usually, the serial number is on the back of the home. If you do not see a serial number, ask the seller. With very old homes, usually the serial number would be on the title.

Once you've completed your inspection and jotted down all your notes, ask the seller how much they think each item would cost for the things that need fix up work. If they do not know, just ask for an estimate of what they think. Then, ask the seller if they would be willing to fix it up themselves or give you a discount for selling "as-is." This will come in handy when it comes time for negotiation.

Depending on how comfortable you feel, you may want to bring in some contractors to give you estimates on the fix up work. After looking at several homes, you'll start to feel more comfortable with estimating the fix up work involved.

Inspecting a Mobile Home Part I

Before you decide to buy a mobile home, you will need to make sure you have taken the necessary steps to inspect it throughly - inside and out. Know what you're buying before you make the purchase.

Most of the information about the home can be obtained before you even leave your doorstep. When talking to the seller on the phone, here are a few questions to ask that will help you decide whether or not you want to take the trip out there to inspect the home:

1. How old is the home?
2. What is the size of the home?
3. How long have you lived there? (If they have lived there less than 3 years, usually I find the home to be in poor condition)
4. Tell me about the inside of the home. Is there any fix up work involved? How is the plumbing, electrical, a/c, etc?
5. Do they have pets? What kind of pets?
5. What known issues have you had? Have you done any repairs lately?
6. Tell me about the outside. How's the roof? Have you had any leaks? When was the last time you replaced the roof?

Ask as many questions as you can beforehand. Depending on how much fix-up work you want to do, decide whether or not you want to proceed. (If you are new to the mobile home business, I highly recommend going out and inspecting as many homes as you can just for the experience).

Before going out to the home, be sure to wear comfortable clothes and the appropriate footwear. (No open toed shoes here!) If the home is located out in the country, sturdy shoes or work boots work well as there may be mud and/or dirt terrain. Also, I've had to spray on a coat of insect repellant when going out to the country. One last thing, be sure to bring a flashlight just in case there are some hard to see places. Last of all, you want to bring a notebook and pen. Be sure to jot down all your notes during the inspection!

When you get to the home, greet the seller and pay attention to everything. Let the seller do most of the talking - you'll be surprised how much you'll find out about the home by just listening and observing.

Personally, I like to start on the inside of the home. Let the seller walk you through. Again, let them talk. The seller will probably have some stories to share with you about the different areas of the home. Be sure to ask a lot of questions. Remember, you are the one with the most interest as you are the one buying. Act as if you were going to live in the home yourself. (If you are going to live in the home, the more you need to be diligent with your inspection).

Usually, the seller starts in the living room area since it's closest to the entrance to the home. Pay close attention to the ceiling - are there any water spots? Ask if there have ever been any leaks. Also, look at the carpet. What is the condition of the carpet? Any water damage? If so, ask what the seller plans to do to fix it? Look at the walls. Are there any holes or patches? Point out anything to the seller that may look like it needs fix-up work. Ask the seller what they plan to do. Will they fix it? Or, are they willing to give a discount if you take it "as-is?"

Next, the kitchen is usually the next area since its often near the living room. Check all appliances - refrigerator, dishwasher, etc. Make sure they are all in working order. Ask the seller which appliances are staying and which ones they are taking with them. Check the plumbing. Run the water and make sure there are no leaks under the sink. If there is a leak, point it out to the seller and ask how long it has been going on. If you see a bucket or small bowl underneath the sink, it's a red flag. There may have been plumbing issues for quite some time. Again, ask the seller what they will do to fix the problem.

After going through the kitchen, the seller will probably take you down the hallway towards the bedrooms and bathrooms. On your way, check the heating and a/c unit (if applicable). Find out the make and model as well as the age. Is it the original unit that came with the house? Or, did they replace it? When was it replaced? Have there been any issues with the heating and or a/c unit? If so, what are they and what will the seller do to correct them?

If you see a laundry area when going down the hallway, ask the seller whether or not they will be taking their washer and/or dryer. Usually, sellers do take their units with them but there are other times they do not. If you are able to buy the mobile home with the washer and dryer unit, it adds value.

Next, view all the bedrooms. Again, pay attention to the ceiling and carpet looking for any watermarks. If you see any watermarks and/or water damage, point it out to the seller and ask how it got there. What will the seller do to fix the problem? If not, are they willing to discount the price? Look inside all the closets. Make sure all the lights work. Look underneath the beds and behind furniture to make sure there are no hidden holes or damages to the floor and/or wall.

Once you've inspected the bedrooms, you're off to inspect the bathrooms. Again, pay close attention to the ceiling and carpet (if any) looking for any water spots and/or damage. Flush the toilets. Make sure they are working properly. Run the tub. Run the water and check underneath the sink to make sure the are no leaks. Again, if you see a bucket underneath the sink it is a red flag. There has been on going plumbing issues here. Also, check the cabinet underneath the sink. Make sure the wood is sturdy and it is not rotting and/or coming apart. Usually, this is the case with particle board wood and/or wood that has water damage (i.e. leak from pipe).

After you have inspected the inside of the home, make sure you have written down everything you have noticed. If there is a back door, open it and make sure it works. This will take you outside and you will be ready to inspect the outside of the home.

Year in Review

With the start of the New Year, I've been reflecting on this past year being my first year in the mobile home business. What can I say? It has truly been a learning experience for me. I am thankful for all the people out there who have helped and supported me in this new venture.

Reflecting back on the year, I have learned many things and have made my share of mistakes. Though, I am grateful for seizing the opportunity and the experiences, both the good and bad.

In terms of my goals for financial freedom, I still have quite a road ahead of me. But, I know I can get there bit by bit. I take it all as a learning experience. With each opportunity I take, I am one step closer to creating another passive income stream which will get me closer to my goal of achieving financial freedom.

During this past year, I have learned the following:

1. The mobile home business is work - hard work.
2. Park managers are key.
3. When in doubt, ask. Though I may not know the answer, someone else does.
4. It's hard to find good people to work with. Hiring people is a skill that I have learned.
5. Without a support group, it is very difficult. Money is not everything. Cherish the ones who have been there for me.
6. Continue to learn. Be a lifelong student.
7. Have fun!

With the start of the new year, I am ready to take on the challenges that lie ahead. I have dedicated myself to continue and learn. In the end, it will truly be worth it.

Moving a Mobile Home Part II

My last post talked about moving a mobile home from one location to another. But, what happens when the home has been finally set up in the park?

Once the mobile home has been set up in the park, usually it will undergo an inspection process via your local manufactured housing authority. This inspection is just to make sure the home has been properly moved, set up and installed at the new location. Remember, find out the process and what information is needed before the move. Usually, they require a form to be filed by the mover detailing the move and the new location. Check with your local manufactured housing authority for more details.

After this inspection process, you're ready to do the hookups (i.e. electrical, plumbing, and a/c). Remember, you should have already selected the contractors you will be working with beforehand. So, what order should you do the hookups in? Well, it really depends on your area. Its best to ask the contractors how its usually handled as their work will also require an inspection by your city. Usually, the department that handles inspections for the city is the permit department. The contractors you use will need to get permits issued by the city in order to do the work. Once their work has been done, it will undergo an inspection process.

The electrical must be done before the a/c (aka "mechanical") as the a/c will need power in order to work and undergo inspection. As for the plumbing, it can be done either before or after electrical. Both electrical and plumbing are important in getting hooked up asap. Some people have tried to market their mobile homes before getting the hookups done. I would not do this - most people want to try out the electricity and the plumbing before they make a commitment.

Once all the hookups have been made and inspection has passed, the next step is to go ahead and set up accounts for the utilities. Again, some people have marketed without having electricity or water on but it will set you back. If everything in the house is working, you'll be able to find more people interested and find someone quicker. Just my experience.

Besides the hookups, the next thing important things is curb appeal. Many people start on their houses from the inside and then work on the outside. Problem is not much curb appeal. Make sure the outside of the house looks presentable. If the siding needs to be replaced or painted, get it done. If the house needs skirting, get it done. Usually, when moving home you will need skirting in the new location.

Now, this brings us to the next question. How much work is needed? Well, it really depends on the person. In my experience, I don't like homes that need too much work - that's just me. By "too much work," I mean homes that have major problems - structural and mechanical issues. I don't mind doing some floor work or maybe having to patch up a roof. Anything, that involves the structural and/or mechanical integrity of a house is just too big of a job for me. Again, it really depends on the person and exactly how much work they want to tackle.

All in all, moving a mobile home can seem like a big feat. Like all things, the first time is always the toughest. After that, it becomes just like clockwork.

Moving a Mobile Home

Many people have asked me about moving mobile homes and exactly what is involved. I know, there are a lot of mobile homes out there that need to be moved. Really, how hard could it be?

Well, I'm going to tell you it involves a lot of time and energy. If you're planning to move a mobile home, be prepared to know how to manage people because it is going to require a lot of coordinating on your part.

Before you decide to purchase a mobile home and move it, you must make sure it is in sound condition for it to be moved - it must not have any structural issues. Otherwise, you will encounter problems. I will have another post on inspecting mobile homes later on in this blog.

Once you have decided and found a mobile home you would like to move, you need to have a place to move it. Right now, I only deal with mobile home parks and have existing relationships with park managers to help fill their lots. If you are looking to move the mobile home on a piece of land, make sure you are dealing with a mover who is experienced moving homes on land and the city requirements in the area once the home has been set. For purposes of this blog, I will refer to who I use - people who are experienced working with parks.

In choosing a mobile home mover, I start by asking the park managers who they use and prefer. Usually, they use people who also do business in other parks though this is not the case all the time. I obtain their phone numbers and call them - tell them the park manager referred me. Then, I interview them and ask them questions about what's involved in a mobile home move and how they do business. It's very important to ask questions - lots of questions. Listen. The mover will ask some questions like where is the home being moved to, does it have tires, axles and a hitch already, and when do you need to have it moved. Before you make the call, you have to have all these questions answered. Otherwise, you'll have to go back and find out. Then, get a quote and call the rest of the movers on your list. Always try to get at least 3-5 referrals. Then, you want to make sure the movers are licensed for moving and installing mobile homes. For this information, you'll have to check with the local manufacturing housing authority for your area.

Once you have obtained a few quotes, I always double check their rates with the park managers. Usually, they will know the going rate in the area since they deal with these issues all the time.

After you have confirmed the rates with the park manager, I always choose the person I feel most comfortable working with - it's more of a personality issue for me. Before I set the move date, I still need to get quotes on hooking up the electricity (once in the park), the plumbing, the a/c (if you have a central air unit) and the skirting (unless you want to do this yourself).

So, how do you know the going rate for these costs? Again, you will have to talk to the park manager, get referrals, interview and get quotes, confirm again with the park managers, and finally choose. Yes, it is a very lengthy process which involves a lot of time and energy. And, we haven't even moved the home yet!

Once you figure out all the costs involved to move the home, then you must decide whether or not it will be worth it for you depending on your purchase price and plans for the home. If buying as an investment, make sure all your numbers work out in your favor so you still can profit.

On moving day, you will need to make sure all the contents in the home are secured including big ticket items such as the stove and refrigerator. Make sure the water heater is secured and drained out completely. (I've heard horror stories from people who forgot to drain the water heater during a move - it ended up tipping over and water spilling all over the floor). Also, tape up the kitchen and bathroom cabinets so they do not flap open. Remove all drawers from the cabinets and set on the carpet. In the bathrooms, take off the top of the toilet lid and wrap in bubble wrap - set on floor in carpet. To confirm your work, have the mover come in and check before the move.

Once everything has been secured and confirmed with the mover, sit back and watch. You'll be in for quite a treat watching the moving crew break down the home, jack it up like a car, and put wheels on it. Guess that's why their called mobile homes!

Make sure you call the park manager as well to make sure the lot is ready for your home. Usually, the park manager will make sure the way is clear so the home can safely enter the park and be properly set.

Once the home has been moved to the park and has been properly set and tied down, you need to check with the housing authority in your area to see if any inspections (if any) are required. Then, you're ready to start the hookups (i.e. electricity, plumbing, and a/c).

Wow, they don't call it a job for nothing! I will make another post later about the process of getting the home ready once in the park.

Getting Down to the Wire

Well, it's getting down to the wire. I'm very close to having all my homes filled. Though people say this is the hardest time of the year to find buyers, it can be done - it's not impossible. One thing I've learned is that much of this business is depedent on me - my skills and my talents. It's very hard to teach someone the skills I have learned as an investor and salesperson. Though I work with the park managers with leads for both buyers and sellers, it's up to me to sell these people.

To be honest, this isn't a business that happens over night. Having a decade of sales experience and years of investing experience definitely helps to accelerate the process. I just have to keep doing the same thing over and over and over again - buying and filling these homes.

I know this will all pay off someday. It is a lot of work - nothing is easy. With each deal, I learn something new and take each experience to heart. I've made a lot of mistakes and have encountered many obstacles though it has made me wiser and stronger. In the end, I know it will all be worth it.