Bills Of Sale

Hola readers, I hope everyone’s had a restful thanksgiving; ate too much and gave thanks for all they have. Now that you gave thanks for where you ARE vs. where you want to BE… Let’s try to improve where we all are at by this time 2010. So LET’S turn up our business to top speed!

It has been a nut house around here ever since coming back from CR!!  But not because of any problems with the mobiles (however I do have the mold issue still causing a slight mess – great article to come!) but rushing around with personal stuff and my own doings!!

I was approached last week to look at investing in an already established Mobile Home Park located outside of the city limits… could my dream of owning a park be coming true already? I was at a local meeting for the 1st time last week.  The meeting consisted of ALL local mobile home park owners, everyone 30 years experience plus, some of the wealthiest people in town!  I defiantly felt like a little fish!!  but I always love being the youngest person in the room by 30 years! Lol

Here are a few of the specs I currently know about the park im thinking of scoring; the park is 30 years old, there are 18 pads currently with 6 vacant and the additional space for 5 pads possible. Sale of the park includes 8 homes, all built after 1980. Lot rent could probably go up a couple dollars a month and utilities were updated only a few years back.

The seller and I sat down and talked most of the night, sales price $295k. Seller may agreed to hold a 1st and wrap his current mortgage for me. He will keep a reminder interest in the park as well. I will be meeting with him later this week to review numbers etc. I am a bit scared to tell the truth, but change sometimes is scary!

I am also looking at a package deal of 4 mobile homes that a different PM talked me into going to see; even though I told her I was not buying anymore mobiles this year… I’ll probably end up buying 3 of the 4 homes. Even when I don’t want any more I just can’t pass up a great opportunity to make easy money!  Actually I love the saying, “You make the money when you buy, and realize it when you sell.” As long as you buy the homes correctly (meaning acceptable terms and price)… you KNOW that it’ll sell all day!!! It’s SO amazing how little competition we have in this business! It probably won’t be this way forever so cash in NOW! (just my advice) I’ll keep everyone updated.

Ok, ok so let’s get down to business. Here is a question I have gotten a few times in the recent past.

Bill of Sales – When, Where and Why do we need them?

A bill of sale is a one page form that can be created on a computer or by hand to sell any piece of “personal property”. Because we are dealing with mobile homes located within mobile home communities we use bill of sales (BOS) to help prove we bought a home for a certain price. Many clerks you will be dealing with at the DMV may not even ask for a BOS.

Each BOS should contain the following: date of sale, seller’s name and buyer’s name, vin for each side of trailer (singlewide has 1 vin & 1 title, while a doublewide home will have 2 vin & 2 titles), price paid for the home, amount paid today, if there is a warranty on the home by seller and/or through manufacturer, plus if there are any other items included in the sale price such as appliances.

Once your bill of sale is signed by the seller and you; take the BOS and title (or SOL statement of ownership and location/TX only) to the local department of Motor vehicles (DMV). In most cases the Bill of sale will never need to be notarized. The SOL will need to be notarized. IN both cases the seller does not need to stick around to go with you to the DMV.   This is always nice because many times the seller may be in a hurry to leave after the sale, this BOS signing can be done on the weekend because the sellers do not need to wait around until Monday morning.

Take the BOS and Title to the counter of your local DMV and they will give you all the correct forms you need to fill out while you are there to transfer the home into your name! (I always recommend putting each home into a trust. This is a very simple (free) procedure that takes only minutes but can protect you and save you thousands in the long run. Especially if you plan on owning more than 1 investment home.

Happy investing, -John

MESSAGE TO EVERYONE POSTING QUESTIONS:

Thanks, Continue asking such great questions! I am here to help… so let me do my job!!!