Terminology Tuesday (Tricks of the Trade) – Clearing Up a Lot

(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).

**** Tricks of the Trade is a new series I have started that will be included with “Terminology Tuesday” posts. The goal of this series is to share with you the “tricks of the trade” I have learned in the mobile home business.

When moving a mobile home out of a park, most times the park manager will request the lot be cleared. Usually, the park will hold the deposit from the seller (when they initially moved in) until the lot has been cleared according to their standards.

(Note: Most park managers will tell you upfront how exactly they want the lot to look once the home has been moved out. In some cases, they have gone so far as to show me an example of a lot that was cleared recently. However, I will say – there are park managers that may not be as particular. It really depends on the park).

So, who exactly is responsible for clearing the lot? Since the seller has signed paperwork with the park and (in most cases) the initial deposit is being held until the lot is cleared, technically the seller is the responsible party for the lot. However, being that I strive to create win/win situations – it definitely can be negotiable.

Most times, we try to work together – the seller, the park manager, and I, to make sure we are all on the same page in these types of situations. Once I negotiate a deal with a seller with the intent of moving a home out of a park, then we set a meeting together with the park manager to discuss the details and what is needed for a smooth transition. This way, we are all aware of the situation and everyone is kept in the loop.

(Note: Now, sometimes it gets a bit uncomfortable with some park managers when I intend to move a home out of their park. In some cases, the park manager will try to entice me to leave the home in the park at times offering incentives. Though, already knowing my market – I really do keep to my exit strategy being as polite and civil as possible).

In the picture at the beginning of this post, you’ll see a lot I had to recently clear. Now, I negotiated this into the deal with the sellers. They agreed on a couple of concessions if I agreed to to take care of the lot.

Now, my plan to clear the lot was just to ask my mover if he could have his crew take care of it. Since we have a good business relationship, I thought it wouldn’t hurt to ask. He said, “No problem.” And, that was that.

Well, come moving day – my mover got the home moved. And, his crew did stay for a bit to help clear the lot. However, they did not stay for the entire duration. At a moment’s notice, they were called to another job. And, guess who was left to clear up the rest of the lot? Yes, yours truly.

(Note: For those who missed it, you may want to check out this video about the person who has the most interest in your business).

So, here I was stuck with cleaning up the rest of the lot. Of course, I was complaining to myself the whole time. But, I knew I had to get this done as I’m one to keep my promises.

(Note: To really maintain a good reputation, I believe it’s extremely important to keep your word and do what you say you’re going to do. It’s unfortunate that investors have a bad connotation with the general public because of those who do not).

In any case, I came prepared (just in case!). Here’s a picture of my gear used for the clean up:

So, I continued on to clear the lot. Slowly but surely, I was bagging up insulation left from the move and raking rocks and dirt to make the lot look like it once was.

Here are some pics of my progress:

Finally, after a few hours of hard work – I was completely done. Here’s a pic of the finished project:

So, what did I learn from this situation? Well, I’ve learned to be prepared for the worst. In reality, I should have had a back up crew planned for the project. I had relied too much on one person – my mover. Though it’s nothing personal – things do come up.

Going forward, I now handle the cost of clearing a lot (if need be) with the mover beforehand or I contract this out with a junk removal service. Either way, I now plan and figure out this cost and work it into my calculations.

Looking back on the experience, I will say – it was not a complete waste of time. I learned a great deal from it. And, by far – learning is half the battle.

I hope this “Terminology Tuesday” post has been helpful and has given you some useful information – it definitely has for me.

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!