Let's be honest, we all make mistakes, and sometimes, those mistakes come back to haunt us in unexpected ways. Over a year ago, I found myself in a predicament caused by a lapse in judgment. Today, I'm sharing my story as a cautionary tale, hoping that others can learn from my oversight.

 

You see, I'm the owner of a small mobile home park in Stephenville, Texas. I've made this park my home, and my business model involves leasing out my land to mobile home owners. Notably, I don't own any of the homes in the park, except for my own residence.

 

Around a year ago, circumstances weren't in my favor. I wasn't feeling well, confined to my home, and during this time, two homes in the park were sold. The mistake I made was not acting promptly when I learned of these sales. I should have immediately informed the new buyers, who were also the current residents, that they had no existing lease and needed to vacate the park without delay. But, regrettably, I didn't take that crucial step.

 

I allowed complacency to set in, never requiring these individuals to sign a lease agreement. Fast forward to yesterday, and one of the residents approached me with surprising news. They had sold their home, and the new owner was moving in the very next day. Needless to say, I was taken aback.

 

For those who haven't experienced mobile home park management, picture owning an apartment building. Now imagine striking up a conversation with a tenant who casually mentions that they've transferred their lease to someone you've never met, and they're vacating in just three days!

 

In Texas, and likely in many other states, landlord-tenant laws require landlords to provide notice equivalent to at least the length of the payment cycle. If …

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In the world of real estate investing, you'll often come across catchy slogans like "50 cents on the dollar" or "buy property for half off." It's an alluring promise, but let's debunk the myth right here: when a property is sold for a specific price, that is its actual worth at that moment.

 

Is it theoretically possible to buy a property and immediately sell it for a profit, maybe even doubling your money? With a double closing, you could technically achieve this in a single transaction. However, such deals are rare and not the norm in real estate.

 

So, what determines the value of a property? It's straightforward. The value is precisely what someone is willing to pay for it. If you purchase a property for $50,000 and sell it for $100,000, its worth is $100,000 because that's the price someone was willing to pay you.

 

But did you buy a $100,000 property for $50,000? Absolutely not, not even hypothetically. You added value to the property, which influenced the buyer's willingness to pay more than the seller initially did.

 

The crucial questions to consider are ethical ones: Did you act ethically when buying the property, and did you act ethically when selling it? Unfortunately, the answer in many cases is no. Sometimes, sellers or buyers are cheated in these transactions, or even both.

 

Karma may not always come around, but the best defense against real estate hucksters is being informed. When you encounter someone touting "50 cents on the dollar" deals and offering real estate investment courses, ask them about the value they add to the properties they buy. Request documentation of their past deals, if possible.

 

Let's break down the formula again: You buy something at one price, add some value to it, and …

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