15k to Invest

[alexmorrow]

Hello everyone! I recently graduated from CU-Boulder and I'm interested in getting into the MH investing business. I only have about 15k to invest, but I would preferably like to invest in fail-safe opportunities. There are some pretty nice parks near where I live that seem like good communities. What avenue would you suggest I go down if I want to get started in this side of real estate? Thanks guys/gals!

[Jim Johnson]

Hello everyone! I recently graduated from CU-Boulder and I'm interested in getting into the MH investing business. I only have about 15k to invest, but I would preferably like to invest in fail-safe opportunities. There are some pretty nice parks near where I live that seem like good communities. What avenue would you suggest I go down if I want to get started in this side of real estate? Thanks guys/gals!

Alex, Alex, Alex...
fail safe investing? That can be found at a local bank in a FDIC insured saving account... it is not found in mobile home parks. Investing in Mobile Homes shows a great yield but things do and will go wrong. The only thing that comes close to fail safe investing in mobile homes is if you are producing notes and then flipping the paper to investors. Even that can be tricky depending on the investor and what they require in terms of how long the note needs to be in place before your off the hook. Now do not get me wrong... producing mobile home notes has been very good to me... but... I am very good at all aspects of producing notes, servicing notes and turning around the homes once I have them. That said...

What parks are you looking in?

[alexmorrow]

I was actually interested in Front Range Mobile Home Community and Cimarron. They both look like decent neighborhoods. Although, tomorrow I was going to check the crime rates in those areas.

By the way, I do know of a fail safe investment while I'm not investing in real estate. There's a checking account in Colorado that is earning me 6.01% interest with Home State Bank.

[Jim Johnson]

I was actually interested in Front Range Mobile Home Community and Cimarron. They both look like decent neighborhoods. Although, tomorrow I was going to check the crime rates in those areas.

By the way, I do know of a fail safe investment while I'm not investing in real estate. There's a checking account in Colorado that is earning me 6.01% interest with Home State Bank.

So lets see what you know and how ready you are...
Who owns the parks?
Who are the managers?
Are they 'investor' friendly?
Will they help see your homes?
Who are the active investors operating in the parks?
Do they offer space rent breaks for lenders or investors?
What is space rent in each park?
How does that compare to other parks in the area?
How many homes are for sale in each of the parks?
What are the price ranges of-
- older single wide 3/2s?
- older double wide 3/2s?

What are the local rules so far as pre hud homes?
Do you see discounts for these homes in the parks?

When looking at a park... these are good questions to get answered... remember you might have two parks very close in distance, but very different in rules. Some are in the city, some in the county.. and the rules are very different...

You do not need to answer these questions to me... but you will need to know the answer to these questions so we can look at your deals...

[alexmorrow]

Those are definitely good questions to ask. I just started learning about MH investing this past week so I still have a lot of research to do.

[Michael Quarles]

Mobile Homes! Isnt that a fancy word for "Trailers"?

And if you only have 15k to invest youre going to need to create a business plan and budget, maybe learn to buy Subject To...

15k wont last long unless youre careful.

Michael Quarles

[Jim Johnson]

Mobile Homes! Isnt that a fancy word for "Trailers"?

And if you only have 15k to invest your going to need to create a business plan and budget, maybe learn to buy Subject To...

15k wont last long unless your careful.

Michael Quarles
Seems that investing in "trailers" is beneath you Michael...
The business plan and budget are a good call...
Now any time you want to put your 'subject to' investing against my investing in 'trailers' you let me know... I will be happy to share some numbers and then we will see where the rubber meets the road.

In closing a little something to think about....
No one here has any right to knock a person or family because of where they choose to live. It might be different from what you choose, but they deserve respect all the same. You have not walked one day in their shoes, you know nothing of their hardships. They are Gods people just like you are and stranding in judgment is wholly unacceptable and quite distastfull in my book. Over the years I have had the wonderful opportunity to meet many diverse people, they are all wonderful in their own right. So if your going to toss in a 'trailer trash' joke you can do it in the 'fallout shelter' but if you put it in the general forum I will come knocking. We are talking about investing here not your prejudices against people that live mobile home parks... or trailers as you so eloquently call them.

[alexmorrow]

In closing a little something to think about....
No one here has any right to knock a person or family because of where they choose to live. It might be different from what you choose, but they deserve respect all the same. You have not walked one day in their shoes, you know nothing of their hardships. They are Gods people just like you are and stranding in judgment is wholly unacceptable and quite distastfull in my book. Over the years I have had the wonderful opportunity to meet many diverse people, they are all wonderful in their own right. So if your going to toss in a 'trailer trash' joke you can do it in the 'fallout shelter' but if you put it in the general forum I will come knocking. We are talking about investing here not your prejudices against people that live mobile home parks... or trailers as you so eloquently call them.

In my eyes, investing is investing. If I'm creating a win-win situation for everyone then I can feel proud of what I do. To me, it's an honest dollar. I could care less if others look down on me for investing in manufactured homes. As a matter of fact, that means more for me and less for you! :smiley10:

[SPIVALAW]

Good for you.

I buy $M properties and I still buy mobile homes.
Bought one last week subject to $7500 note and no cash,
bought one Sat for $500

Sold both for 5 years of $400 payments and $200 lot rents.
Return is $25K + $12K in lot rent.

[SPIVALAW]

Seems that investing in "trailers" is beneath you Michael...
The business plan and budget are a good call...
Now any time you want to put your 'subject to' investing against my investing in 'trailers' you let me know... I will be happy to share some numbers and then we will see where the rubber meets the road.

In closing a little something to think about....
No one here has any right to knock a person or family because of where they choose to live. It might be different from what you choose, but they deserve respect all the same. You have not walked one day in their shoes, you know nothing of their hardships. They are Gods people just like you are and stranding in judgment is wholly unacceptable and quite distastfull in my book. Over the years I have had the wonderful opportunity to meet many diverse people, they are all wonderful in their own right. So if your going to toss in a 'trailer trash' joke you can do it in the 'fallout shelter' but if you put it in the general forum I will come knocking. We are talking about investing here not your prejudices against people that live mobile home parks... or trailers as you so eloquently call them.

I guess I missed the negative reference????

Jim, If you ban trailer trash jokes, please ban lawyer jokes to.

[Michael Quarles]

I was raised in a friggin "Trailer" It was a beauty.. single wide 2/1...

And since you asked, when you get to over 200 deals a year that don’t have wheels we can talk.. Certainly one can make money in a variety of investment strategies... I just don’t like trailers and since I lived in one I call it like I see it...

The wife wanted to buy a Trailer in Santa Barbara a couple years ago... they only wanted 250k so I guess to each their own poison..

And we can have our own opinion and Voice it... Unless you want to bring back Hitler and Sadam...

[Jim Johnson]

I guess I missed the negative reference????

Jim, If you ban trailer trash jokes, please ban lawyer jokes to.

Howard...
In the 'investing' part of the forum we should keep the topic to investing... there are places on the board where people can share their jokes concerning ones profession or I guess if one chooses their jokes about where they live, or what they eat or whatever... but lets keep them in the fallout shelter...

[Michael Quarles]

Where is the "Joke" a Mobile home is referred to as a "Trailer" by a lot of people.

I guess a Mobile Home is always a Trailer but not all trailers are mobile homes.

So maybe the "Best" word to use would be Mobile Homes...

We just always called them Trailers...

[Jim Johnson]

I was raised in a friggin "Trailer" It was a beauty.. single wide 2/1...

And since you asked, when you get to over 200 deals a year that don’t have wheels we can talk.. Certainly one can make money in a variety of investment strategies... I just don’t like trailers and since I lived in one I call it like I see it...

The wife wanted to buy a Trailer in Santa Barbara a couple years ago... they only wanted 250k so I guess to each their own poison..

And we can have our own opinion and Voice it... Unless you want to bring back Hitler and Sadam...

Michael,
I guess because I do not do 200 non wheel deals we will not talk... When you lower your standards a bit and allow for people that flip bigger stuff in the million plus range let me know, I just might qualify...

[Michael Quarles]

Back to the origianl question of the member... He needs to make certain he understands the costs of investing and where the money is made and the return on his dollar.

The last house I bought was a 3/1 valued at 215k I paid 500 down and took the loan of 96k sub 2..

Thinking back to all of the Mobile homes I have purchased not one of them made me over a 100k in profit with a 500 out of pocket expense.

I so understand the passive side of Mobile Homes... And if he only has 15k to invest with I wouldnt start there...

[Michael Quarles]

Jim are you just in a bad mood today... And congrats on making a fortune... More power to you...

Relax a little....

[SPIVALAW]

LOL Drama is every where on the Internet.

You guys better ban me, I joke every where I go.

I have to, to put up with the lawyer stuff.

One of our holdings is a "Manufactured Home rental Community".

Its like a bunch of tall kindergarden kids. I employe 3 cops as managers to baby sit. Truth is some of my apartment and SFH dewleers are about as bad but no so many in one place.

[Jim FL]

LOL Drama is every where on the Internet.

You guys better ban me, I joke every where I go.

I have to, to put up with the lawyer stuff.

One of our holdings is a "Manufactured Home rental Community".

Its like a bunch of tall kindergarden kids. I employe 3 cops as managers to baby sit. Truth is some of my apartment and SFH dewleers are about as bad but no so many in one place.


wow Guys, things must be rough today.

I am in a GREAT mood (it's my kids 16th Birthday today, so we are all very happy here)

Not sure why Jim, you became upset here.
Please, you've always been rather level headed round here, and frankly, if you re-read the thread, there was not a single joke, til Howard chimed in.

Some folks just get offended when you call MH's, trailers.
Which they are by the way, aren't they?
'Ta-MAH-To' or 'Ta MAY-To'.


Anyway, I buy houses, land, commercial stuff and yes, TRAILERS, or MH's on land.

Some folks call them "Mobile Homes", others call them "Manufactured homes"........and yet some folks still refer to them as "trailers".

Me, I'll buy ANYTHING if the numbers make sense..........even trailers and trailer parks.

Have a nice day! :-)
Jim FL

[SPIVALAW]

Happy Birthday Little Jim.

Can I say "Hurricane magnets"?

Or Cash cows?

[Michael Quarles]

What kind of car did you buy them for their 16th B-Day? In California you can get your drivers license on your 16th...

[Jim FL]

Happy Birthday Little Jim.

Can I say "Hurricane magnets"?

Or Cash cows?

Thanks Howard, it's actually my daughter.........and too boot, she got her first 'job' today too.

I prefer not to call them 'hurricane magnets', since I have had a couple get 'tossed' by the wind in the past.
Cash cow works though, as the ones we do own, are exactly that.

Take care,
Jim FL

[Jim FL]

What kind of car did you buy them for their 16th B-Day? In California you can get your drivers license on your 16th...

Actually, I have two teens. A son who is almost 18, he has a car, his second.
He bought his own first car, at 13, when he worked summers driving a dirt mover (on site dump truck for an excavation company.......he's a big kid.)
He then sold that, since it was a camaro, when he turned 16, to get something smaller. (a sports car with a 4 banger for better mileage.)

My daughter will not get her license for a few more weeks. Here in FL, kids must have one year of a permit before getting a license, she waited longer than her brother.
However, she too has her own vehicle, a jeep cherokee she got herself with money she made working for me.

I just supply the insurance, gas, and maintenance.
Which naturally is more than the cars cost in the first place, but, I'm VERY proud of both.

Thankfully, my kids learned rather young that when they want something bad enough, there is always a way to earn it for themselves.
They also seem to appreciate these things more than the things I buy for them.

I did buy them each motorcycles though...........dirt bikes for now.

Take care,
Jim FL

[Michael Quarles]

I often wonder when I do something for the children if it is sending the right message. But so far so good. I was an indentured servant when I was growing up so that probably weighs into the decision making.
Sending the children to college was the big one for me… I had to pay for mine. But an education is more expensive now a days. The daughter is in her junior year in Italy… She is having a nice time and all..

[Jim Johnson]

Jim,
What sets me off is a statement like this...

Mobile Homes! Isnt that a fancy word for "Trailers"?

And if you only have 15k to invest youre going to need to create a business plan and budget, maybe learn to buy Subject To...

15k wont last long unless youre careful.


Now the rest of the post is great... but it just rubs me wrong when people put down others because of their social-economic class. If we are talking about investing lets leave it at that... if we want to discuss the social issues specific to people that live in mobile home communities lets start that as its own thread. I am sure it will have a life all its own.

I guess it comes down to this... If you were talking to someone at the grocery store or church and they told you they lived in a mobile home park... would you correct them by saying... Now isn't the term mobile home a fancy word for living in a trailer? If you would say this to someone I guess you have every right to post it up...

but I challenge everyone to place some sort of litmus test on what they post, as if they were telling it to someone they know, maybe someone they have not seen in years, face to face...

wow Guys, things must be rough today.

I am in a GREAT mood (it's my kids 16th Birthday today, so we are all very happy here)

Not sure why Jim, you became upset here.
Please, you've always been rather level headed round here, and frankly, if you re-read the thread, there was not a single joke, til Howard chimed in.

Some folks just get offended when you call MH's, trailers.
Which they are by the way, aren't they?
'Ta-MAH-To' or 'Ta MAY-To'.


Anyway, I buy houses, land, commercial stuff and yes, TRAILERS, or MH's on land.

Some folks call them "Mobile Homes", others call them "Manufactured homes"........and yet some folks still refer to them as "trailers".

Me, I'll buy ANYTHING if the numbers make sense..........even trailers and trailer parks.

Have a nice day! :-)
Jim FL

[Michael Quarles]

Who is putting the people down... I made a comment... You put the definition to it... Maybe you have an issue.. I don’t... I actually think I have asked people about their trailer before...

There are areas of the city where it would offend someone if you call their trailer a mobile home... And I am confident the reverse would apply.

Heck I even tell sellers when their house is UGLY... And doing so doesn’t imply anything other than its UGLY.

BTW it you use [ quote ] and [ /quote ] (no spaces) before and after a message it will quote it for you...

[SPIVALAW]

2 things I cant abide by:
1) People who are not tolerant of other cultures and
2) The dutch.

Peace all.

Im going to Mardi Gras, Im going to new orleans!!!!

[Debbie]

I certainly have no dog in this fight.

May I offer a reader's point of view?

When I first read Michael's comment of "Mobile Homes! Isnt that a fancy word for "Trailers"?". My first thought was "Whoa! He's being sarcastic there!".

After reading Michael's later response, my thought was: "Oh! He meant it as a curiosity statement, not sarcastic".

Bottom line: My perception was similar to Jim Johnson's. I understood that because that comment did appeared to be a sarcastic.

*SIGHS* Wouldn't it be great if we can turn this text forum into a video forum? There'd be less mis-interpretation.

[Debbie]

2 things I cant abide by:
1) People who are not tolerant of other cultures and
2) The dutch.

Peace all.

Im going to Mardi Gras, Im going to new orleans!!!!

Have fun!

[Debbie]

...... it's actually my daughter.........and too boot, she got her first 'job' today too.

Happy Birthday and congrats in order! I can see how mighty proud you are of her!

[SPIVALAW]

I am not your dog?

[Jim FL]

May I offer a reader's point of view?


Nope.

:SM137:

[Jim Johnson]

Who is putting the people down... I made a comment... You put the definition to it... Maybe you have an issue.. I don’t... I actually think I have asked people about their trailer before...

There are areas of the city where it would offend someone if you call their trailer a mobile home... And I am confident the reverse would apply.

Heck I even tell sellers when their house is UGLY... And doing so doesn’t imply anything other than its UGLY.

BTW it you use [ quote ] and [ /quote ] (no spaces) before and after a message it will quote it for you...

Michael,
Actually I believe the way your phrased two things were putting people down. One was pocking insensitive fun at people at a lower social economic status than yours, the other a vain attempt at showmanship because you perceive representation of over 200 buyers and sellers in one year somehow sets you apart.

I guess I will stand by my statement that if you are willing to correct someone that refers to their home as a mobile home to a 'trailer'... you are welcome to post such at will. I like the statement to tell me where you sit before you tell me where you stand... You are clear where you sit on this issue.
Your ability to share with sellers their home is ugly I guess goes to your honesty which I do not question, it is your sensitivity I take issue with. Or really your lack of sensitivity.

As to your tip on how the forum works... thanks... even us admins should be reminded of the functions our post could benefit from... and I thank you sincerely for pointing this out. That is a function I have seen used but have not used myself. When I find myself in a situation to comment on multiple quotes I will keep that function in mind.

I have said my peace concerning this issue and choose to put it to rest...
God Bless and good luck...

[alexmorrow]

I was reading Lonnie Scrugg's Deals on Wheels book and he mentioned that you have to "have a mobile home dealership license,
which is required in in most, if not all states to
buy and sell mobile homes." Is this still required? If not, what are the benefits of having one? What do you have to go through to get one? What are the requirements?

[Jim Johnson]

I was reading Lonnie Scrugg's Deals on Wheels book and he mentioned that you have to "have a mobile home dealership license,
which is required in in most, if not all states to
buy and sell mobile homes." Is this still required? If not, what are the benefits of having one? What do you have to go through to get one? What are the requirements?

Great question... In Colorado anyone that is involved in the sale or financing of a mobile home that is not their primary residence must have a dealers license.
I have one.
One kitchen pass... if you are a licensed real estate agent AND have permission from your managing broker in WRITING... you are exempt from this law and may buy, sell and finance mobile homes without a 'mobile home dealer license'.
To get one... you apply with the state.... the form is 6 or so pages long... you get a $50,000 bond... costs $500 a year... send in your application. There are some issues concerning escrow accounts and some other house keeping items... but it is a paperwork shuffle...

Some people choose to invest in mobile homes in Colorado without the license... I choose to obey the rules... so do you need one... the rules say yes... do people choose to not follow the rules... well... try driving the speed limit and see how many cars you pass on the interstate... I would say most people choose to break the rules... but that is just me... and I am not a rule breaker...

[alexmorrow]

Wow! The bond in Colorado is $30,000. It must be posted upon application for the license. I wonder if the discount broker I was going to hang my license with would give me permission. However, they are definitely going to take there cut out of every deal. Jim, maybe I can hang my license with you (for a smaller % of each deal I make)? Hehe...just kidding!

[SPIVALAW]

I am not your dog?


Debbie you said you didn't have a dog in this fight....

Recently I was showing one of my properties to some Church leaders.
The current tenant minister happened to know the future tenant minister.
They shook hands and embraced.

I asked how do you know each other?

One said, "Oh he is my dog".
I asked "Is that a good thing?

They laughed.
Apparently it is a term of endearment,

So again I ask,
Am I your dog?

PS I aint fighing

[Debbie]

Howard,

There's nothing about you that isn't endeared to me.

You being my dog is nice but being a cat is better. Meow!

[Debbie]

Nope.

:SM137:

Okay. Skip over my post. :biggrin:

[Michael Quarles]

Jim

Actually I believe the way your phrased two things were putting people down. One was pocking insensitive fun at people at a lower social economic status than yours, the other a vain attempt at showmanship because you perceive representation of over 200 buyers and sellers in one year somehow sets you apart.

I didn’t represent anyone... 2005 I was able to accomplish 226 transactions of my own... Buying and selling of my own property... Not bragging but you and I have just met and I took your statement Now any time you want to put your 'subject to' investing against my investing in 'trailers' you let me know... I will be happy to share some numbers and then we will see where the rubber meets the road. as a form of power or greatness and felt as if you were trying to be the "Guy" with all of the knowledge, which you may be as well as have more than me, just wanted to let you know that I have a big stick too.

Reread your post after my first one and ask yourself if this is the tone our Fathers Son would have used They are Gods people just like you are and stranding in judgment is wholly unacceptable and quite distastfull in my book.

And dont get me wrong I am far from pefect in fact the distance away from perfect can not be measured. I do however enjoy helping Investors and teaching them to fish..

Michael Quarles

[Jim Johnson]

This conversation really has no value to anyone. Please forgive my assertion's concerning your tone, compassion and demeanor. You are right, I do not know you and really know little of you. thank you for setting the record straight and pointing out my lack of Christ like behavior in this matter.

Of note- i am always open to constructive criticism. If my demeanor or the tone of my posts is anything but respectful please PM or post your concerns. to that note, I do not care if we are great friends or have never met, there is truth in every perception an I take rebuke very seriously.

[SPIVALAW]

Lots of respect and professionalism happening here.
great guys!

Peace

[alexmorrow]

hmm...so no comments on my last post? What exactly does it mean when it says you have to be bonded for 30k? Can someone explain this process to me? When I think of bonded, I think of insurance in a way.

[Michael Quarles]

Yes a bond is supplied by an Insurance company.. Usually 1 to 1.5 % of face amount and is priced on credit worthiness typically...

In California when you apply for a license which requires a bond you are immediately mailed sales material from various companies.

[alexmorrow]

Usually 1 to 1.5%? So I'd have to pay $300 yearly? monthly? to an insurance company to remain bonded? Do real estate agencies usually pay this?

[Jim Johnson]

Usually 1 to 1.5%? So I'd have to pay $300 yearly? monthly? to an insurance company to remain bonded? Do real estate agencies usually pay this?

In Colorado the $50,000 bond for this purpose costs $500 per year. There are other options in Lu of the bond, if you place $50,000 in a special bank account where the money is secure and you can not withdraw it, the bank can give you a letter that will meet the bonding requirement.
The bond is not like insurance for you, it is insurance for the consumer. In Colorado the maximum damages that can be levied by the mobile home division are... right... $50,000. So if there were damages the bonding company would pay the bond BUT you must repay the bonding company. So the bond only guarantees payment to the consumer, you are still on the hook.

If you are a real estate agent the office and you will have insurance that meets the requirements of the bonding requirements. You are not immune from paying damages it just happens via your real estate licence not your mobile home dealers licence.