Terminology Tuesday - Smoke Detector Verification

(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 both purchasing and selling mobile homes, it's best to make sure all of the smoke detectors are working in the home. In fact, it's usually a requirement from the insurance company that all smoke detectors have been checked and verified before coverage can be placed.

(Note: Before I purchase a mobile home, I make sure the smoke detectors are working on closing day. On closing day, this is when I instruct my insurance company to start coverage).

In general, there are 2 main types of smoke detectors - battery powered and electrical. Usually, electrical type smoke detectors will come pre-installed with the home. However, these types of smoke detectors will only work when there is power. If for some reason there's a loss of power in the home, then electrical type smoke detectors will no longer function.

Many times (but not all) homeowners do not realize the danger in having only electrical type smoke detectors in their homes. Without power, these type of smoke detectors will not work. Should there ever be an electrical outage, this could be dangerous if a fire occurs.

This is why I go out and make sure there are also battery operated type smoke detectors (with a fresh battery of course!) inside homes with only electrical type smoke detectors. For me personally, I'd rather be safe than sorry.

Is this an added cost? Yes. But, to me - it's the cost of doing business. I'd rather have peace of mind and be able to sleep at night that the home is well equipped to detect a possible fire than not. But, that's just me.

As a general rule of thumb, there should be smoke detectors in the kitchen (sometimes 2), hallways near the bedrooms, and living room areas. Before purchasing a mobile home, I always verify the types of smoke detectors in the home as well as whether they are original or added on.

On the other hand, you also want to be aware if there have been any smoke detectors removed or detached from the home. Personally, I've run into a few situations where the smoke detectors were removed as some homeowners just did not feel it necessary as they had to keep changing out the batteries.

(Note: This is definitely not a good reason to remove a smoke detector. It amazes me what some people will do just to avoid doing a little work!)

Before purchasing (as well as selling) a mobile home, I highly recommend you make sure you check and verify all smoke detectors are properly working. If the home comes with the electrical type of smoke detectors, be sure there are battery type smoke detectors installed as well. Check the batteries - make sure they are new and in working order.

(Note: In Lonnie's book, there is a Smoke Detector Verification Form included in the forms section. I highly recommend including this in your paperwork when working with buyers).

To give you an idea of how smoke alarms work as well as how to do a smoke detector verification check, here's a short video:



Video Link

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!

Business 101: It's Not What You Say, But How You Say It That Counts

So many times there have been folks who have told me they have tried so hard to find mobile home deals. Though, they are unable to find any. So, I decided to create this video. Hope it helps, enjoy!



Video Link

Thanks for watching!

(Note: By the way, has anyone ever had "minced meat pie?" I'm a bit afraid to try it. As a kid, I grew up on fast food - I hardly ever had a home cooked meal. So, meeting country folks and learning about their home cooked meals is a very new yet interesting concept to me! :)

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Terminology Tuesday - The 50% Rule

(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 there have been many folks who have asked about the holding costs involved when buying and holding properties, I've decided to touch upon a small little rule I have learned as a prior landlord - the 50% rule.

So, what is the 50% rule? Here's a video from a fellow BiggerPockets member that explains it in more detail:



Video Link

As a prior landlord, I can tell you - the 50% rule is true for most cases when buying and holding properties. To be honest, a lot of folks who buy and hold properties forego a lot of small expenses when determining their overall net profit - it's really important to factor in everything to see a realistic picture.

So, what does this have to do with mobile home investing? Well, a lot of folks have asked me this question, "When you mention 'cash flow' in your case studies, is that what you really net? Or, are there other expenses taken from that amount?"

The answer to that question is yes. Yes, I do net that amount of cash flow. And, no there are no other expenses taken from that amount. I receive the same amount every month - rain or shine.

And, this is the difference between ownership (aka being a landlord) and control (aka being the bank). To me personally, it's not about ownership - it's about control.

As a prior landlord, I found it extremely difficult to keep up with the costs of ownership (i.e. maintenance costs, rising tax assessment values which in turn raise property taxes, increases in insurance, etc). Every year, it seemed that costs would increase. And, these increases would eat into the cash flow I received.

Even more, on top of that I still had to deal with the debt service (aka what I owe the bank). So, who got paid the same amount every month no matter what? It wasn't me - it was the bank.

So, the difference with doing "Lonnie" deals is the fact that there is more control and less to maintain. With mobile homes (as personal property), they are seen as depreciating assets in the eyes of the government. Think about it kind of like a car - their values go down year after year. Well, it's the same as with a mobile home.

Now, many of you may be thinking "Well, that's not good." And, it has been one of those points challenged to me. In fact, I have a good friend who questions why I even bother buying depreciating assets. In her eyes, if the value goes down year after year - then what's the point?

Well, for me personally it's not about appreciation - it's about cash flow. And, so what if the value goes down year after year. Each month, I am receiving the same amount of cash flow no matter what. But, this is what's important to me - cash flow will feed me, appreciation will not.

Though, my friend (who is extremely smart with an MBA from an Ivy league school) begs to differ. Her thought is to buy for appreciation because she tells me - that's where the real money is at.

Furthermore, she thinks the effort and amount of time involved put into this business should reflect the dollars earned. To her, my cash flow earned is really not that much as her earning 100k flipping a home (that she needs to wait 5-10 years to appreciate). But to her, it's worth it.

(Note: Did I mention? This is a friend who has tried to get me to invest for appreciation - she tells me I am missing the boat on a lot of potential properties that will appreciate in the future if I don't buy now).

In fact, she even challenges me in saying that she will become a millionaire because if she buys 10 homes and they appreciate 5-10 years from now and she receives 100k from each of them - she will be rich. So far, she is halfway to her goal. Though, all her homes are negative cash flow.

(Note: I have no desire to make a million dollars in one lump sum. I invest for cash flow, not appreciation).

Every month, my good friend has to shell out money to cover her expenses. But, in her mind - it's ok. She tells me she will make it all back - just watch and see. And, that in this game - she is the turtle and I am the hare. She reminds me the turtle is the one that wins in the end.

Now, in school - I wasn't really good at math. But, it seems to me that having multiple negative cash flow properties isn't really for me. And, having properties that cash flow every month is better. But, that's just me.

The reason why I enjoy doing "Lonnie" deals and investing in mobile homes is because the expenses tend to decrease, not increase. Every year as the value of the mobile home goes down, the taxes go down with it. And, since there is essentially no debt service to pay (since they are bought with cash) - the rest is pure cash flow. In essence, I get paid today - not tomorrow.

For those out there who have been contemplating the mobile home biz, this has just been my experience. Different things work for different people. And, I can honestly say - mobile home investing has worked for me.

Happy investing!

(Note: If you've been thinking about mobile home investing but still are not sure, this article may help).

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Book Review: "Financial Freedom GPS"

(Note: Since there have been folks who have asked my recommendations on business and finance books to read, I've decided to go ahead and start a new series of posts - book reviews).



Sorry to be out of the blog scene folks. Just getting back from my retreat here. It was nice to get away for awhile, it really gave me some time to really think. And, relax! :)

Barely getting back into town, it's been pretty chaotic. The phone has been ringing non-stop, lots of work to do. By far, fall and winter have been the busiest times of the year for me in the mobile home biz. And, already I'm working 2 potential mobile home deals. Work, work, work!

In any case, I thought I'd check in with you all and share with you a special book that just came out by my pal, Shae Bynes, called Financial Freedom GPS.

(Note: For those of you who are new to the blog, Shae was deemed one of the "Best and Brightest Women In Real Estate Investing").

So, what is the book about?

Well, the book is about a topic that is near and dear to my heart. And, that is the topic of financial freedom .

For me personally, the concept of financial freedom is so important. Why? It's simple. Financial freedom allows me to do the things I want to do, not have to do. And, Shae has laid it out here in this book step by step.

I have personally gone through the book. And, I must say - it's very well done and thorough. For those interested in achieving financial freedom, this is a book that will take you step by step and guide you on your path to get there.

What I really like about the book is that it really makes you think and opens up your mind to other ideas. Honestly, there were a couple ideas in the book that I had not been aware of. And, I especially enjoyed the resources and exercises Shae included in the book.

Now, I'm going to be honest with you. The path to financial freedom is not easy. And, it's really a process.

Basically, the transition involves from going full-time at a job to going part-time. In my opinion, the key is to slowly build up income streams to make things financially easier for you and your family.

Once the income streams start coming in, it will allow you to work less at a job that you have to (in order to pay the bills). And, in turn will allow you to focus your efforts in creating income streams so you can have more time to do the things you want to do, not have to do.

This is the transition many successful investors I have met have gone through. Some even continue to work part-time, not because they have to but because they want to. In fact, my mentors now all went through the same transition. One in particular still works part-time still enjoying the type of work they do.

(Note: I have 3 mentors for the mobile home biz. A local, regional, and national mentor - all together with over 50 years of experience in the mobile home biz. I've learned a great deal from each one, they have really helped me along the way. Mentors are definitely important members to have on your team).

For those who are interested in achieving financial freedom, this book is a great guide and road map. Shae has laid it out all here in the book, step by step. It's packed with a lot of useful information, resources and exercises to help you on your path to financial freedom.

(Note: It only took me 3 "Lonnie" deals for me to personally have a passive income stream to cover my housing payment. Seriously, the concept of financial freedom is all very simple. Though, it's the planning and the execution that takes work).

The book is very affordable, it's definitely worth the price. And, Shae is also including a Fast Action Bonus for those who order the book before Friday at midnight: 2 Live Q & A sessions where you can ask Shae any questions that you have after reading the course material!

For what it's worth, I really think this is a great book. And, the Fast Action Bonus Shae is offering just goes to show her support and caring nature for others.

If you've been thinking about and/or wanting to achieve financial freedom, I definitely recommend this book. Check out Financial Freedom GPS today!



p.s. Yes, this is an affiliate link. But, I assure you - I wholeheartedly believe in the book and believe it will help those on their path to financial freedom. Happy investing!

"Battle of the REI Blogs" Contest: Please Vote!

Hi Everyone!

Hope you're all having a great week. I've been doing good on my retreat up here in the woods. It's been really nice to get away and have time to think and relax.

In any case, before I left, my good pal, Patrick Riddle, asked me to participate in a pretty cool contest he's having called "Battle of the REI Blogs." So, I decided to take part and join in on the fun!



Video Link

Here's the info on it:

The top real estate investing bloggers have been assembled to compete to see who's blog is #1 in the eyes of our subscribers. So, it's Adventures In Mobile Homes vs. 11 other real estate investing blogs.

My good pal, Patrick Riddle, is hosting the contest and has some great prizes that he's giving away. Here's where the contest gets pretty cool:

The winning blogger gets to award 5 of their voters (it could be YOU!) a FREE Private Money Blueprint Home Study Course (valued at $997 each!)

So, I am writing to seek your help. I'm up against a pretty good list of heavy hitters, the "A List" of real estate investing bloggers and I'm seeking your vote.

(Note: For those of you who missed it, I made the list of The Top 20 Real Estate Investing Blogs).

Please click here to cast your vote.

While you're over there, feel free to check out the other bloggers participating. The overall premise of the contest is to "get to know" the best of the best of the real estate investing bloggers and connect with them through social media.

When you head over to the main contest page, you'll see that each blogger participating has a profile that includes a link to their blog and links to their social media profile pages.

Once you decide who your favorite is all you have to do to vote is scroll down to the very bottom and enter your vote in the "comment" area.

Please click here to cast your vote.

Thank you all for your support and may the best blogger win!

p.s. Feel free to leave comments on any post either here and/or my Facebook Page. Comments are always welcome, thanks for reading!

Podcast: 5 Things You Can Do to Learn Your Market When It Comes to Mobile Home Investing

Since a lot of folks have asked me questions about the topic of learning the market, I decided to go ahead and make up an audio podcast on this particular subject. Also, I've decided to be a bit more animated with the blog since some people really liked my video presentation for Must Know Investing.

(Note: If you haven't caught the presentation yet, I encourage you to check it out. There's a downloadable audio "goodie" in there as well. Thanks for reading!)

So, without further a due here's the podcast:



(Note: For those interested, here's the link to my podcast page if you'd like to be updated on future podcast episodes. Thanks for listening!)

(Note: Thanks everyone for taking the time to read and support my blog. I wanted to leave everyone with a "goodie" before I take off - the blog will be on hiatus for the next two weeks. I'm going to be taking off this weekend to spend some time on a retreat in the woods. I usually set aside some time every year for retreats to be able to think and reflect. Will be back soon. Stay tuned!)

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!

Terminology Tuesday - Trip Insurance

(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 moving a mobile home, one of the things I'm always sure to add is trip insurance. So, what exactly is "trip insurance?"

Basically, "trip insurance" is part of my due diligence when moving mobile homes to have the home insured from collision and damage on my end. Sure, using a mobile home mover they should have their own insurance regarding their mobile home moves.

(Note: When using a mobile home mover, be sure to check they are properly licensed and insured. Usually, you can simply do this by checking with the local transportation authority in the area. Many times you can simply ask the mover for their license number and use this to verify their credentials).

If the mobile home mover is properly licensed and insured, then why get "trip insurance" in the first place? Well, I get "trip insurance" because it gives me peace of mind. If something were to happen during a mobile home move and the mover's insurance disputed whether a certain claim was covered or not, at least I will have my own "trip insurance" in place as an added precaution.

Is this double insuring? Well, in a way. But, it really gives me peace of mind that things are covered on my end.

So, how does "trip insurance" work? Basically, I notify my insurance company the day of a scheduled mobile home move - the "trip insurance" is set for that day only. The cost I have paid in the past for this type of insurance has been $50 (singlewides only) - well worth it for my own peace of mind.

(Note: Depending on the area, this type of insurance may or may not be available. And, costs will vary. Be sure to check with your local insurance company/agent to see if this is available in your area).

Regarding moving mobile homes, it's really a personal decision. Some have cautioned against it due to the amount of money and time involved (i.e. moving costs, hookup costs, etc). Though, I would say - you really have to look at everything and ask yourself - is it worth it? It could be, or not - it depends.

Recently, I had to pass up on an opportunity - a potential mobile home move. Though the home was priced very close to what I was willing to pay for, I just could not commit entirely - it had to be priced a bit lower for me to even get into the deal. Why?

Well, when moving mobile homes there are the moving costs to consider but also the time involved and the psychological impact it can have - it can be a bit stressful. So, if I decide to pursue a mobile home moving opportunity - it really has to be worth it for me.

For those interested, here is a video about some factors to consider when evaluating a mobile home move:



Video Link

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!