Tuesday, June 2, 2009
Friday, May 29, 2009
Redrum Realty
Thought I'd post this short video up based on the film since it's real estate related. Enjoy!
"The twins from the Shining quit haunting and seek a future in real estate."
Video Link
"The twins from the Shining quit haunting and seek a future in real estate."
Video Link
Thursday, May 28, 2009
Top 10 Home Repair Books
If you're going to get into mobile home and/or real estate investing, it's very important to know the basics of home repair. There will be times when repairs will need to be made. Even if you decide not to do the repairs yourself and decide to hire a contractor(s), it's important to know home repair basics so you know exactly what's involved for each project. (Note: One thing about contractors, you will always want to get at least 3 opinions for each project. This way, you can get a feel for rates in your area. Also, you can always negotiate whether or not you want to provide materials and just pay for labor, or both. The choice is up to you).
Here's a list of my Top 10 Home Repair Books that have helped me. I hope it will help you, too!
1. The Manual For Manufactured/Mobile Home Repair and Upgrade
2. Energy and Repair Guide For Manufactured Housing
3. Mobile Home Repair: An Inexpensive Metal Roof You Can Install
4. Black & Decker Complete Photo Guide to Home Repair
5. Home Improvement 1-2-3: Expert Advice from The Home Depot
6. The Complete Idiot's Guide to Simple Home Repair
7. Better Homes and Gardens Big Book of Home How-To
8. Home Improvement for Dummies
9. Dare to Repair
10. How to Fix Everything For Dummies
Here's a list of my Top 10 Home Repair Books that have helped me. I hope it will help you, too!
1. The Manual For Manufactured/Mobile Home Repair and Upgrade
2. Energy and Repair Guide For Manufactured Housing
3. Mobile Home Repair: An Inexpensive Metal Roof You Can Install
4. Black & Decker Complete Photo Guide to Home Repair
5. Home Improvement 1-2-3: Expert Advice from The Home Depot
6. The Complete Idiot's Guide to Simple Home Repair
7. Better Homes and Gardens Big Book of Home How-To
8. Home Improvement for Dummies
9. Dare to Repair
10. How to Fix Everything For Dummies
Tuesday, May 26, 2009
Terminology Tuesday - Seller (Owner) Financing
(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 day 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).
As defined in Wikipedia:
"Seller financing is a loan provided by the seller of a property to the buyer, to cover part or all of the sale price. This process, also known as owner carry back or owner financing, is used in a variety of situations as a creative financing option. An owner carry back can be used as a vehicle to sell a home if the potential buyer does not qualify for a loan that will cover the full cost of the property.
Example: John and Linda would like to buy a home. However, this time when they visit ABC Bank they are told, due to their high amount of debt, they do not qualify for conventional financing at all. Once again, they go to their realtor who suggests that the owner may be willing to carry back the loan. The owner agrees and finances the couple for $350,000, terms are agreed upon, and the owner starts collecting payments from John and Linda.
If an owner decides they no longer want to collect the payments the owner can sell the note on the house, a process called note buying, to a company that provides such a service. In such cases, the owner will be paid a certain amount of cents on the dollar and get a lump sum instead of collecting payments over the life of the loan. The buyer of the note then assumes control of the deed, and John and Linda will begin paying the bank instead of the owner.
Another way an owner carry back would benefit an owner is, after the sale of the home, s/he would be receiving a steady monthly income. In some cases, owners can avoid paying capital gains tax on the sale of their property by carrying back the loan."
Definition Link
There are many ways to make money investing in mobile homes - this is why I enjoy investing in mobile homes.
Happy investing!
As defined in Wikipedia:
"Seller financing is a loan provided by the seller of a property to the buyer, to cover part or all of the sale price. This process, also known as owner carry back or owner financing, is used in a variety of situations as a creative financing option. An owner carry back can be used as a vehicle to sell a home if the potential buyer does not qualify for a loan that will cover the full cost of the property.
Example: John and Linda would like to buy a home. However, this time when they visit ABC Bank they are told, due to their high amount of debt, they do not qualify for conventional financing at all. Once again, they go to their realtor who suggests that the owner may be willing to carry back the loan. The owner agrees and finances the couple for $350,000, terms are agreed upon, and the owner starts collecting payments from John and Linda.
If an owner decides they no longer want to collect the payments the owner can sell the note on the house, a process called note buying, to a company that provides such a service. In such cases, the owner will be paid a certain amount of cents on the dollar and get a lump sum instead of collecting payments over the life of the loan. The buyer of the note then assumes control of the deed, and John and Linda will begin paying the bank instead of the owner.
Another way an owner carry back would benefit an owner is, after the sale of the home, s/he would be receiving a steady monthly income. In some cases, owners can avoid paying capital gains tax on the sale of their property by carrying back the loan."
Definition Link
There are many ways to make money investing in mobile homes - this is why I enjoy investing in mobile homes.
Happy investing!
Friday, May 22, 2009
Money As Debt
In order to be a wise investor, it's very important to understand money and how it works. Knowledge is power. In the past, I've talked about the importance of getting personal finances in order. It's very important to learn how to control money and not let money control you. Here's a video that has helped me to understand more about money and how it works. Enjoy!
"Money as Debt' tells in very simple and effective graphic terms what money is and how it is being created."
Part 1
Video Link
Part 2
Video Link
Part 3
Video Link
Part 4
Video Link
Part 5
Video Link
"Money as Debt' tells in very simple and effective graphic terms what money is and how it is being created."
Part 1
Video Link
Part 2
Video Link
Part 3
Video Link
Part 4
Video Link
Part 5
Video Link
Thursday, May 21, 2009
5 Reasons Why I Enjoy Mobile Home Investing
Many people have asked, "Why invest in mobile homes?" So, I've decided to answer the question here with 5 Reasons Why I Enjoy Mobile Home Investing. Here they are:
1. No Late Night Phone Calls
For all the landlords out there, you may be able to relate. As a landlord, you still have to take care of all the repair issues for your tenants since they are renters. Either you can take care of them or you can hire someone to take care of them for you. Either way, it will require time on your part whether or not you are physically doing the work and/or managing someone to do it for you.
With mobile home investing (if you decide to sell on owner financing), then you are dealing with homeowners - not renters. There's a big difference. Homeowners are responsible for taking care of their home since they have an interest. Renters do not. Most times, since renters do not have an interest in the home they will expect certain repairs to be made which is the responsibility of the landlord. More responsibility = more calls.
2. No Repair Issues
Again, if you are a landlord - you will need to take care of all repair issues for your tenants. With mobile home investing (f you decide to sell on owner financing), you deal with homeowners not renters. Homeowners will be responsible to take care of all the repairs on the home which means more money in your pocket and less time involved.
3. No Middlemen
In most cases, there is less people to deal with when investing in mobile homes. When you are buying a mobile home (in most cases as personal property), you will be dealing directly with the seller in most cases. Rarely have I seen a real estate agent involved unless you are buying the mobile home and the land. Usually, it will be too much money to sell using a real estate agent to sell a mobile home. Also, when you are going to close on the home you usually just deal with your local government authority in your area. Some people have asked whether they need a title company. In most cases, "no" but it also does depend on the comfort level of all parties involved. If you and/or the seller feel more comfortable, you can use a title company to close.
Likewise, there will be less people involved in terms of property management since there's nothing to manage if your dealing with homeowners. (Remember, homeowners are responsible for taking care of the home). Probably the only management you will have to deal with is the park management (if you decide to buy in parks) though usually they will only call you if there's a problem. Less people involved=less stress.
4. Lower Costs
Let's face it - it takes less money to buy a mobile home than a single family home (most of the time). What does this mean? It means lower costs in all areas including closing costs, insurance, taxes, etc. Since you have less money into it, it frees up more of your money to go out and do more deals. More money=more deals.
5. Less Time Involved
This is probably my favorite reason to invest in mobile homes. Since you are dealing with homeowners who are responsible for taking care of the home, it frees up your time to do other things. Most of the time, you are just there to collect payments - that's it. Sure, you may have to deal with the park management (if you are buying in parks) but that's only when issues come up. Once you complete a deal, that's it - no more maintenance issues and/or dealing with calls from renters. Think about it. If you are a homeowner, when was the last time you called your bank for a repair issue? Never. That's not your job - it's the homeowner's job.
Less time involved means freeing up time to go out and do other things like looking for other deals. With mobile home investing, once you've established yourself and have a few deals going then you don't have to work as hard scurrying around looking for other deals. Again, it's all about cash flow. Plus, the cash flow coming in from your current deals will help to fund new deals. More time + more money = more deals. And, more deals=more cash flow=more time to enjoy life and do the things you want to do, not the things you have to do.
So, there you have it 5 Reasons Why I Enjoy Mobile Home Investing.
Happy Investing!
1. No Late Night Phone Calls
For all the landlords out there, you may be able to relate. As a landlord, you still have to take care of all the repair issues for your tenants since they are renters. Either you can take care of them or you can hire someone to take care of them for you. Either way, it will require time on your part whether or not you are physically doing the work and/or managing someone to do it for you.
With mobile home investing (if you decide to sell on owner financing), then you are dealing with homeowners - not renters. There's a big difference. Homeowners are responsible for taking care of their home since they have an interest. Renters do not. Most times, since renters do not have an interest in the home they will expect certain repairs to be made which is the responsibility of the landlord. More responsibility = more calls.
2. No Repair Issues
Again, if you are a landlord - you will need to take care of all repair issues for your tenants. With mobile home investing (f you decide to sell on owner financing), you deal with homeowners not renters. Homeowners will be responsible to take care of all the repairs on the home which means more money in your pocket and less time involved.
3. No Middlemen
In most cases, there is less people to deal with when investing in mobile homes. When you are buying a mobile home (in most cases as personal property), you will be dealing directly with the seller in most cases. Rarely have I seen a real estate agent involved unless you are buying the mobile home and the land. Usually, it will be too much money to sell using a real estate agent to sell a mobile home. Also, when you are going to close on the home you usually just deal with your local government authority in your area. Some people have asked whether they need a title company. In most cases, "no" but it also does depend on the comfort level of all parties involved. If you and/or the seller feel more comfortable, you can use a title company to close.
Likewise, there will be less people involved in terms of property management since there's nothing to manage if your dealing with homeowners. (Remember, homeowners are responsible for taking care of the home). Probably the only management you will have to deal with is the park management (if you decide to buy in parks) though usually they will only call you if there's a problem. Less people involved=less stress.
4. Lower Costs
Let's face it - it takes less money to buy a mobile home than a single family home (most of the time). What does this mean? It means lower costs in all areas including closing costs, insurance, taxes, etc. Since you have less money into it, it frees up more of your money to go out and do more deals. More money=more deals.
5. Less Time Involved
This is probably my favorite reason to invest in mobile homes. Since you are dealing with homeowners who are responsible for taking care of the home, it frees up your time to do other things. Most of the time, you are just there to collect payments - that's it. Sure, you may have to deal with the park management (if you are buying in parks) but that's only when issues come up. Once you complete a deal, that's it - no more maintenance issues and/or dealing with calls from renters. Think about it. If you are a homeowner, when was the last time you called your bank for a repair issue? Never. That's not your job - it's the homeowner's job.
Less time involved means freeing up time to go out and do other things like looking for other deals. With mobile home investing, once you've established yourself and have a few deals going then you don't have to work as hard scurrying around looking for other deals. Again, it's all about cash flow. Plus, the cash flow coming in from your current deals will help to fund new deals. More time + more money = more deals. And, more deals=more cash flow=more time to enjoy life and do the things you want to do, not the things you have to do.
So, there you have it 5 Reasons Why I Enjoy Mobile Home Investing.
Happy Investing!
Wednesday, May 20, 2009
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: I am ready to start investing in mobile homes. However, I will be relocating out of state in about a year. I am a little skeptical to get started right now because I will have financed homes that will be located out of state after I move. Do you think I should still pursue this right now or wait until I move and start then?
A: Personally, I'm not an advocate of investing out of your area - it just makes things more difficult if problems should come up. Since knowing the market is very important, it may be difficult if you are away and have homes in your present area - the market could change, situations could change in your market. If you're not there, it may cause problems.
If you're just starting out, one thing you can do is learn your market and look for deals for other investors - bird dogging is a good way to start and get the experience without taking all the risk. This way, you'll get some experience. Then, when you move to your new location you'll have the experience to go out and start off (if you choose) on your own.
Q: I am ready to start investing in mobile homes. However, I will be relocating out of state in about a year. I am a little skeptical to get started right now because I will have financed homes that will be located out of state after I move. Do you think I should still pursue this right now or wait until I move and start then?
A: Personally, I'm not an advocate of investing out of your area - it just makes things more difficult if problems should come up. Since knowing the market is very important, it may be difficult if you are away and have homes in your present area - the market could change, situations could change in your market. If you're not there, it may cause problems.
If you're just starting out, one thing you can do is learn your market and look for deals for other investors - bird dogging is a good way to start and get the experience without taking all the risk. This way, you'll get some experience. Then, when you move to your new location you'll have the experience to go out and start off (if you choose) on your own.
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