Lot Rent Fees

I've had a lot of people ask me about lot rent fees and how much they should be in the parks and/or areas they choose to work. People have told me different prices of lot rents in their areas ranging from $75 per month on the low end, to $400, $500, and $650 per month respectively on the high end. Most recently, I've heard $1000 per month (per one of my "tweeps" @pmjohnson99).

So, what should be the target range of the lot rent for the parks you decide to work in?

The short answer - it doesen't really matter. Honestly, the amount of lot rent a park charges should not have a large effect on your decision whether or not to work in a particular park. Why not?

It's more important that you work in a park where you know the demand is there and you can find a buyer. I've said this before, it's very important to know your market. Each area is different - knowing your market and knowing who and what your buyers want, including where they want to live, is extremely important.

On my first deal, I was also concerned about lot rent. It was pretty high - almost $400 per month, this park had one of the highest lot rents in the area. Though, once I researched the market I got a feel for the demand in the area.

Driving around the area around the park, I could tell this was an area that was growing and had a lot of demand. I found out this park was in high demand - a lot of people wanted to live in this particular park. It was a nice park in an extremely good location. People wanted to live there and there was not much affordable housing in the area. There were apartments up the street that were almost at full capacity and the rents were steadily increasing.

So, I decided to move forward with the deal based on my market research and knowledge. Had I not done my research and known the area, it could have been a very risky deal as I would not know what I am getting myself into. If I did not know the market, I may not know what people are willing to pay for a home in that area and/or what types of features they are looking for.

Common mistakes people make who are not familiar with the market include overpricing and/or underpricing a home, asking for too high or too low of a monthly payment, not knowing what features people are looking for in a home in that particular area, selling "as-is" when most people in that area want things fixed up or vice-versa, etc.

All of these mistakes cost both time and money. And let's face it, time is money. That is why it's extremely important to know your market before you go into a deal. It's very dangerous to start investing without knowing your market.

Knowing your market is extremely important - I cannot stress it enough. Knowledge is power.

(If you would like to read more about getting started in mobile home investing, check out these tips).

Happy Investing!

Terminology Tuesday - Carpet Remnants

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In one of my last posts, I mentioned the importance of comparison shopping - becoming a more informed and educated buyer.

Lately, I've been dealing with contractors regarding some recent fix-up issues. One of the things I had done recently was replace new carpet in the living room of one of the trailers. The old carpet had some really tough stains - it just didn't all come out with the carpet cleaning crew. As a result, the home didn't show well as flooring, especially when someone first walks into a home, is one of the first things people notice.

Since I was just replacing the carpet in the living room, which is a very small area, my carpet guy suggested looking for a "remnant" (aka "carpet leftovers") for the job. Usually, carpet installers and places that sell carpet will have "remnants" or carpet leftovers, after completing big jobs - these "remnants" or pieces of carpet are too small for regular carpet installation jobs. So, they will sell them (or if you're lucky - give them away) to people just looking for a piece for a smaller carpet job. Usually, they will need to sell the "remnants" quickly as to free up space - this is where you can get a pretty good deal instead of paying for a brand new piece and/or roll of carpet.

Learning where to find and spot these deals will take some time. Though, it will save you money in the end. And, the money saved will quickly add up.

Here's a video on how you can make your own carpets/rugs and where you can find carpet remnants. Check it out!



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Twitter Shout Outs Via TweetTube

For all the Twitter users out there, I just found out about Tweetube through one of my "tweeps", @entrepreneurHI, who has continually given me "Follow Friday" shoutouts.

Thanks @entrepreneurHI for your continued support. (For those of you interested, @entrepreneurHI specializes in teaching and training private money lending nationally). Other "tweeps" mentioned @ShaeBynes - my fellow blogging buddy, @rjsellscheap, @HarrisonPainter, and @BiggerPockets. Check them out!

Here's the latest clip. Enjoy!



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p.s. I almost forgot, if you're on Twitter and would like to follow my "tweets" I'm @mobilehomegurl. Have a great week!

Mobile Home Rap

I just had to post this up - this is a very entertaining video using mobile home terminology. Check out Jerry here (he's a mobile home mover) and his mobile home rap!



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Mobile Home Repair - Subfloor Repair

I've received a lot of questions regarding how to go about replacing flooring in mobile homes. Usually, most of the floors in mobile homes are made out of particle board, which usually wears down and breaks easily over time. In most cases, it's better to have a more solid type of wood as your flooring such as plywood.

As for replacing flooring in mobile homes, if there are only a few soft spots in the floor - you don't have to replace the whole thing. What you can do is pinpoint the soft spots by cutting out the damaged area(s) and replacing them with plywood - this is what's referred to as subfloor repair.

To help see how this is done, check out this video.

(If you're interested in reading and learning more about mobile home repair, I highly recommend these books).

Happy Investing!



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Comparison Shopping

Hi everyone! Sorry I haven't posted in awhile - I've been really tied up lately. Though, I wanted to make a quick post here regarding comparison shopping.

It's very important to shop around and do some comparison shopping for things you buy - over time it does add up. Remember, you're not being cheap - you're being frugal. There is a difference. And, why should you pay more for the exact same thing?

By learning to bargain hunt and by becoming a more informed shopper, you will save a lot of money over time. And, the money saved can quickly add up and be used towards other things for your business and/or your personal life.

So, let me give you an example of one of my most recent comparison shopping experiences.

For instance, take this simple bath mat I bought for one of the trailers recently.



As you can see from the pic, this cost $4 - I purchased it locally from the Family Dollar Store. Before making my purchase, I did some research and visited a couple places for similar bath mats. Wal-Mart came at $5.96 - it came close. By purchasing the bath mat at the Family Dollar Store, I saved almost $2.

Now, I know saving $2 may seem very mundane and not that big of a deal. But, imagine if I had to purchase 20, 30, 40, or even 50 bath mats? As you can tell, the costs add up.

When running a business and even personally, I think it's very important to have a frugal mindset. So much money is wasted everyday - most people don't even realize it. By learning to become more frugal, it forces you to be more resourceful and in turn save your hard earned money for other things.

(If you're interested in reading more about having a frugal mindset, I highly recommend this book. It really opened up my eyes and reiterated some things for me).

Happy Investing!

Hiatus

The blog will be on hiatus for the next few weeks. Will be back soon. Stay tuned!