Since it's Friday, I thought I'd share with everyone another movie pick as it relates to my last post -"8 Mile."
What I really enjoy about this film is that it focuses on the small successes, not the large ones. It is the small successes that are the most important - they are the building blocks for the larger ones.
So many times I've written here about my most important deal - my first deal. The reason why I consider it my most important deal is that it truly separated me from being on the sidelines from being in the game.
With the success of my first deal, I was in the game. And, once you're in the game, then and only then can you truly be a player.
If you're in the mood for an inspirational type film, I definitely recommend this one.
(Note: For those who enjoy books and a good read, check out my pal Shae at Good Faith Investing for her latest book review - she has a passion for reviewing books as I have for movies - thanks for reading!)
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!
Lately, many have expressed interest about wanting to get started (especially after the article I wrote for my pal Julie at Rev N You this month). Though, the question that has come up time and time again has been, "What is your secret to success?"
Well, I'm here to say the secret boils down to one word: PASSION. Period.
Without passion, it's really hard to make things work. Passion is what drives motivation. Motivation fuels persistence. And, persistence is the key to achieving success in any business.
So, you see it is passion that is the foundation to motivation and persistence. Without passion, motivation and persistence simply cannot exist. Passion is the key to success.
If passion is the key to success, many have asked "How can I get the passion that you have? How can I motivate myself the way you have?"
Quite honestly, passion is internal - it must come from within. No book, no seminar, no motivational speaker will give you the passion you need for success - it must come from you. And, you alone.
(Note: I've answered so many of these types of questions that I felt the need to address it).
What you must do is first figure out your passion - what is it you feel passionate about? And, from there create a plan to help you achieve it.
For me personally, my passion came from the fact that I did not want to be a landlord anymore - I wanted total financial freedom. And, I saw mobile home investing as a way to achieve total financial freedom and truly derive passive income that would allow me to enjoy life and do the things I want to do - not the things I had to do.
And, it was this passion of wanting financial freedom that really fueled my motivation and persistence to do what it takes to achieve success in this business. Though it took a lot of time and effort, it has paid off in the end.
(Note: In this post, I talk about it taking me 6 months to learn my market and another 2 months to do my first deal. In total, it took me 8 months to do my first deal. Though this seems like a lot of time and effort invested, all my hard work has paid off in the end).
So many people struggle in this business and wonder why. I hear of so many who have said they do so much but still can't find any deals. Many give up easily and end up returning to the life they have - it is the life they are comfortable living.
In order to make a change in your life, you really need to have the passion to to make that change. Without passion, it's going to be a struggle - a struggle to lead a life that you may not be passionate about.
Quite honestly, my passion has come from what I want - not what others want. If you are content with the life you have now, it's ok.
Though, if you are not then it's best to think about the type of life you want to lead - what is it you feel passionate about that will enable you to make a change?
Focus on what you want - not what others want. Sure, the mobile home business can be fun - it's a way for me to achieve financial freedom.
On the other hand, there are others who do not want total financial freedom. They want to constantly work (even if it be a business) and need that feeling of importance - they need that feeling of others needing them. And, that's ok - everyone has a different path.
As an example, I introduced the concept of mobile home investing to a fellow investor. Now, this investor is a rehabber by trade - their pride and joy is in rehabbing homes. This investor decided to give mobile home investing a try by doing a "Lonnie deal."
After all was said and done, this fellow investor said that this business is boring - receiving a monthly check for $200 was not exciting. This investor really wanted to do something that was more involved and didn't mind work like rehabbing - it was the passion to create and be more involved that fueled this investor's work. So, this fellow investor went back to rehabbing. And, has continued ever since.
So, you see now - passion is everything. Passion will fuel motivation and enable you to persist despite the odds. The key is figuring out your passion. When you know your passion, nothing else will matter - everything else will fall in place.
I'm going to leave you here with a video here from Gary Vaynerchuk that inspired this post.
(Note: If you're interested in reading more, feel free to check out this post I wrote awhile back. Thanks for reading!)
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!
(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).
"An awning or overhang is a secondary covering attached to the exterior wall of a building. It is typically composed of canvas woven of acrylic, cotton or polyester yarn, or vinyl laminated to polyester fabric that is stretched tightly over a light structure of aluminium, iron or steel, possibly wood or transparent material (used to cover solar thermal panels in the summer, but that must allow as much light as possible in the winter). The configuration of this structure is something of a truss, space frame or planar frame. Awnings are also often constructed of aluminium understucture with aluminium sheeting. These aluminium awnings are often used when a fabric awning is not a practical application where snow load as well as wind loads may be a factor."
"The most popular material for mobile home awnings is aluminum. Aluminum type mobile home awnings are maintenance free and will stay an attractive addition to your home for many years. Much has been done in recent years to make aluminum awnings more attractive and stronger. When dealing with aluminum awnings make sure you deal with a qualified contractor or do some home work about live loads, snow loads and panel gauge. These are some of the terms that will determine the strength of the awning. This information is found on the ICC reports that all awning manufactures should have for there awnings. These reports are also required by cities and counties requesting permits."
Since it's Friday, I thought I'd keep it light and share with everyone one of my favorite and very relatable quotes from one of my favorite television shows, Seinfeld.
Here, George describes the meaning of the word "interest" from his point of view. Enjoy!
(Note: Sorry it's a little blurry and hard to hear, it's the only clip I could find. So, I've written out part of the script below the video. Thanks!).
"George: Oh my God, I forgot to tell you. I got a letter today from the State Controller's Office. Y'know when I was going to public school back in Brooklyn, every week I used to put fifty cents in the Lincoln Savings Bank.
Jerry: Yeah, I did that too.
George: You remember the, the little bank book, there?
Jerry: Sure.
George: Alright, so I haven't put anything in it since sixth grade, I completely forgot about it. The State Controller's Office tracks me down. The interest has accumulated to 1900 dollars. 1900 dollars! They're sending me a cheque!
Jerry: Wow!
George: Yeah, interest. It's an amazing thing. You make money without doing anything...
Jerry: Y'know I have friends who try to base their whole life on that principle.
Thought I'd give everyone an update on the mobile home I mentioned in this post - I've been in negotiations with the bank on this one.
So, I got all my numbers together on the fix up work needed to bring this home in marketable condition. And, I presented my offer to the bank. Here's what I came up with:
$1800 - condenser air conditioning unit (none there) $1325 - carpet, padding and tack stripping (carpet gone in all rooms including hallway) $776 - skirting (skirting gone) $783 - front porch to be built on site to park specifications (none there) $297 - back porch to be built on site to park specifications (none there)
$4981 - total fix up work
(Note: This is why it's important to build a team. With just a quick phone call, I can call up my contractors and they can estimate for me what these items would cost).
In addition, I made it a stipulation that the taxes must be paid and brought current (there were around $500+ in back taxes owed) as well as the lot rent (2 months back lot rent - $1000+).
Along with my offer, I also noted that the home will stay in the park if my offer is accepted.
(Note: Per the bank rep, I was advised my offer had a better chance of being accepted if the home were to stay in the park).
So, how did I come up with my offer?
Well, going into it I already knew the market. I knew a home like this would sell owner finance around the mid 20k-high 20k range. I knew the down payment amount would probably be around $2500 and cash flowing in the $500-$600/month range.
Based on these numbers, I knew the most I could get myself into this (total) would be around 13k. I worked backwards based on the fix up work needed. So, I came up with an offer of 6k.
(Note. When negotiating and making offers, you always want to give yourself some room to negotiate. Most times, I go in with a lower offer than my maximum allowable offer. Then, I expect some countering back. If I can arrive close or at my maximum allowable offer, then I'm able to make the deal work).
When I presented my offer to the bank, I justified my offer to the bank rep. I told the bank rep there's just no way I could go higher with all the things missing that the home needed. The bank rep understood and told me it's actually a decent offer.
Furthermore, I told the rep I'd be willing to up my offer if the bank were able to provide all of the items or some of the items needed. I told the rep my main concern was the missing a/c condenser unit and the front porch, which are very big ticket items. If the bank were able to provide these items, then I'd be willing to up my offer.
Though, when I said this the bank rep responded with a "Uhhh, we don't do that kind of stuff. We're just trying to sell this thing "as-is." But, I was trying to be the good investor so that I could give them options. And, the bank rep told me it was much appreciated as most investors they run into just give them really low ball offers with no justification whatsoever.
In any case, the bank is mulling over my offer on this one. So, we'll see.
(Note: I don't really spend all that much time with the banks. Usually, the homes that I pursue with the banks are only those that are pointed out to my by the park managers in my favorite parks. For this one, the park manager told me about it as the eviction took place 2 months ago - it had not even made the bank's distribution list of homes taken back yet).
Speaking of negotiating, I've been in negotiations on quite a number of other mobile homes. This time of the year (spring and summer) is one of the best times to find both sellers and buyers - people are moving out as well as moving in.
To give you an idea, here are a couple of other things I'm working on:
3/2 Singlewide In a Park, 16x80
3/4 of an acre mobile home lot with 2 mobile homes
2/2 Singlewide In a Park, 14x76
These are just a couple as there are quite a number of them with the time of the year and all. Though, I will continue with the updates along with the case studies since many have said they have enjoyed reading them.
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!
(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).
"A carport is a covered structure used to offer limited protection to vehicles, primarily cars, from the elements. The structure can either be free standing or attached to a wall. Unlike most structures a carport does not have four walls, and usually has one or two. Carports offer less protection than garages but allow for more ventilation."
Most times, carports can be found in more high end parks. Typically, carports found in the parks are made of metal material and cost quite a bit of money - many I've heard cost around $1000 and up. Usually, it will be the homeowner (not the park) who will foot the bill and pay for their own carport (if they desire one).
Here's an example of a typical carport from The Home Depot:
(Note: Most mobile home parks will have rules and specifications on what they allow/don't allow. If you find yourself working in a park that allows car ports, make sure you know what the specifications are before you buy (not after) just in case there may be a specification and/or conflict issue).
When talking and negotiating with sellers, I've found some have tried to up sell the fact that they have a carport (if they have one) attempting to add value to the home and justifying a higher price.
However, in my experience it's usually the mobile home itself (as well as the park) that give value in the eyes of buyers. Usually, something like a carport (or a shed) would just be something extra but would not be the main factor in determining the ultimate value of the home. In most cases, it's not going to make or break a deal - it's just an extra bonus.
My general rule of thumb:
Look around at the other homes in the park. As long as the home I'm looking at blends in (with or without a carport), it's decent. Same thing goes for a shed and/or an awning. As long as the home blends in with the rest of the neighborhood, it's fine in my book.
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!
p.s. If you've joined my Facebook Page already, I just wanted to say "thanks" for all your support. If you know anyone else who may be interested in learning about mobile home investing, feel free to send them over. Thanks again!
Entrepreneur. Dreamer. Thinker. Doer.
I started out investing in real estate like most people in single family homes. In the beginning, I found deals for other investors. After awhile, I started doing deals myself. Though, I found myself always working and was burned out from being a landlord. So, I dove into the wacky world of mobile home investing and here I am. It's much more fun. This blog is here to take you along on my journey and share with you my adventures investing in mobile homes. Contact Info Contact me
If you have questions about mobile home/real estate investing or want me to check something out (i.e. article, website, blog, video, etc), feel free to send it in. (Questions about mobile home/real estate investing can either be sent in or by asking through my Facebook Page). Please do not send in any file attachments - it's best if you send me a link to anything you send in. If I find it interesting/relevant, I will post it up. Thanks!
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