Lessons re-learned - Posted by Rich(WI)

Posted by Marty (MO) on May 15, 2007 at 10:14:27:

this is the story! I ran into the cop that was there the next morning and
he said the kid’s in a holding cell already. He asked the kid what
happened- 'We were sleeping in the park and someone was making a
lot of noise and the cops came and somehow they found something in
my shoe that I didn’t know was there." The cop, being compassionate
and all, replied, “Well, at least now you’ve got a place to stay.”

We’re doing a MO repo today on some defiant non-payors. Their date
is today. They called yesterday and said ‘we ain’t leaving until the first
and there’s nothing you can do about it.’ I drove by and told them ‘you
just go to sleep tonight thinking that…’

It’s like the Springer show lately.

Hope all is well out west…


Lessons re-learned - Posted by Rich(WI)

Posted by Rich(WI) on May 13, 2007 at 16:33:10:

I bought an older mobile home from the park owner in December for back lot rent.

Lesson #1. Never buy a mobile home, in a Northern climate, that has not been properly winterized unless you get an extremely good price and some free lot rent while you do necessary repairs. Two months of free lot rent seemed fair. I had to pay heat and electric during this time.

Lesson #2. Never hire a good friend who is a contractor to do your repairs. Three to four days of repairs turned into a two month nightmare. I kept a friend, but I will never hire him for anything major again. We had to re-plumb the home with PEX, replace one toilet, replace the hot water heater, some sub-flooring and all the carpeting/floor tiles. The only way I got him moving at all was to tell him I had it sold. I let my friend/contractor run my job. Never again. His saving me money cost me.

Lesson #3. No good deed shall go unpunished. My neighbor wanted to put her son and his future wife into my unit. We agreed and I let the kids move in. I did not have mom cosign. Two months later I go to mom, Kids have to go. No payment, no intentions of payment. She gets the kids out (I was lucky here, I didn?t have to do a repo through the legal system.) I got the unit back clean and in broom swept condition.

Lesson #4. Always check on future tenants. Run criminal background and credit checks. My first phone call from a new prospective tenant turned out to be interesting. In my state the court system has records available on line for free. This individual has 21 court appearances in the last two years. 19 of those are for non-payment of bills. I think his problem will not become my problem.

Lesson #5. I will still make money on my investment because I bought right. This unit will cash flow at least $300 a month after expenses. I will have my investment back in one year.

They call it education for a reason. If I had remembered my education I would not have had 4 months with no income (I did get one months lot rent from mom because she felt bad).

Yes, I am sitting in the corner with my Dunce hat on. Oh well, On to the next money maker!! I won’t forget these lessons any time soon.

See folks, you can GOTC, make mistakes and still make money!


Re: Lessons re-learned - Posted by Marty (MO)

Posted by Marty (MO) on May 13, 2007 at 18:05:52:

These are good lessons that’ll work for you… I believe in hiring friends,
though. The catch is that you can’t take the bargain basement price
and expect top shelf service. It’s not fair to your friend.

Another lesson when you’re doing a rehab- check for squatters
frequently. We just bought a place in a very desirable park. The former
owners’ kid told his burnout friends they could stay there. They set up
in the shed, locked it, ran an extension cord, etc. We cut the lock and
left a note for them to get their stuff and leave and we won’t mess with
their stuff or turn them in. They ignored it. My partner ran 'em off Fri
(they were in the home). Sat, my daughter and I were in the home
cleaning and I went to the back bedroom. When I opened the door,
there were 2 18 yo boys standing in the closet. Scared me half to
death! I yelled at them and backed out of the room and yelled for my
daughter to get out and get in the truck. Apparently, I scared them
worse than they scared me. The cops came and made sure they left
with all their belongings.

Last year, my partner ran 3 kids off that were squatting in another
home. These kids ended up robbing a gas station and pistol whipping
two people.

These are nice parks and both incidents could’ve ended tragically for
us. We’re now much more careful, especially when it comes to our kids
working on the homes with us.

I’m sure there’ll be a lot more additons to the list of ‘rules’- lots of
experience and wisdom floating through here. I’m trying to implement
a rule where we only sell to hot college girls, but that’s not working out
so well…

I hope you’re good luck continues!


Re: Lessons re-learned - Posted by Rich(WI)

Posted by Rich(WI) on May 14, 2007 at 19:23:00:

Marty, I believe in hiring friends too, I just won’t let one run my job again. I did not ask for bargain basement prices. I just wanted to get the job done. At the time I was too sick to do it myself.
My wife won’t go for your last rule either. lol:)
Thank goodness I haven’t had the squatter issue. You be careful.


Re: Lessons re-learned - Posted by Michael(KCMO)

Posted by Michael(KCMO) on May 14, 2007 at 18:16:41:

Marty, you crack me up! Is this the “crazy trailer story” I missed when I missed your call the other day?

Re: Lessons re-learned - Posted by Marty (MO)

Posted by Marty (MO) on May 15, 2007 at 11:33:47:

You need to tell your wife to use her mind and not her eyes to evaluate
this dea! Maybe wives just don’t get how good attractive young girls
are for business… We could build a Hooters Trailer Park! Tell me that
wouldn’t fill up…

I understand what you’re saying about the hiring friends issue. I’m still
waiting for my friend to bring his bobcat out so he can finish moving
some dirt I paid him for 3 months ago. Funny how he needed work in
the spring and was real attentive, but now that his busy season is here,
he just doesn’t seem to have time…