Mortgages & Creative Financing

Getting Started In Any New Real Estate Business

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
224 Articles Written

There is typically a learning curve and/or stretching outside your comfort-zone with regards to beginning to invest in a new real estate niche.

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This week I would like to discuss something known as Transitional Vulnerability. Knowing what to expect and not expect during this stage of starting any new business will help ensure you can be prepared and not caught off guard.

Transitional Vulnerability is one stage of learning a new business or skill-set when you are the most vulnerable to immediate failure and becoming discouraged. Transitional vulnerability can last weeks, months or a lifetime on your own.

Some examples of Transitional Vulnerability:

  • When a butterfly first hatches from its cocoon it is in a state of transitional vulnerability.
  • When a child is being born, both mother and child are in states of transitional vulnerability.
  • As a baby bird learns to fly it is in a state of transitional vulnerability.
  • When you start a new job you are in a state of transitional vulnerability.
  • As you begin a new hobby or sport you are in a state of transitional vulnerability.

Investing in real estate is no different.

However if you fail with investing you are out literally many thousands of dollars over your lifetime assuming you never returned to investing.

When you choose to begin a side business of investing in real estate and/or investing in mobile homes for profit you are in a state of Transitional Vulnerability for at least your first few deals. This is based solely on my own experience of helping others in this field.

Make sure to understand that you will be faced with many common and unique challenges to overcome. These challenges will encourage you to stumble, become delayed, be afraid, second-guess yourself, hesitate, and eventually succeed or fail. Many of these challenges, both internal and external challenges can be overcome with correct education, training, leadership, support team, and daily accountability.

Building a profitable portfolio is hard but you can do it. If anyone on this planet is where you wish to be there is no reason why you cannot duplicate his or her success.

How to Overcome Transitional Vulnerability?

  • Be prepared before you ever take action in public.
  • Join BiggerPockets.com and consider becoming a Pro member for added networking.
  • Post your questions and deals in the BiggerPockets Forums for added help and guidance.
  • Take local investors out to lunch and ask them questions.
  • When you have a potential “deal” ask to partner with a local seasoned investor in your area.

Logically speaking there are only so many steps (A, B, C, D… Z) that you should take to successfully build a profitable real estate and/or mobile home investing portfolio. Much like a pulling off a Band-aid you learning this business is going to happen one way or another. You can either learn this business overtime and improve slowly which is popularly called “Trial and Error” or you can choose to advance your knowledge with the help from seasoned investors that can be found here at Biggerpockets.com and/or working with a local seasoned investor/mentor. If you do work with a local seasoned investor make sure this person is someone others vouch for and that you like, trust, and can rely upon.

Lack of clarity is what eventually hurts most amateur real estate investors and mobile home investors from moving forward as quickly as they could with proper support.

Lack of clarity for:

  • Where to advertise and market to save money and get results?
  • How to speak to sellers when screening?
  • How to construct offers?
  • An outline of every step of the process?
  • How to answer seller/buyer questions to keep the deal moving forward?
  • What offers to suggest when buying and selling?
  • How to sell, what paperwork to use, and properly screening for buyers or renters?
  • The best ways to manage properties for receiving on-time payments from your tenants or buyers.

If you ever have any specific mobile home investing questions or general real estate investing questions do not hesitate to ask or comment below.

Love what you do daily,
John Fedro

Photo: Mark Zimmermann

Investing since 2002, John started in real estate accidentally with a four-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to his cash-flowing portfolio. Since these early years, John has gone on to help 150+ sellers and buyers sell their unwanted mobile homes and obtain a safe and affordable manufactured home of their own. Years later, John keeps to what has been successful—buying, fixing, renting, and reselling affordable housing known as mobile homes. John shares his stories, experiences, lessons, and insights of other successful mobile home investors he helps on his blog and YouTube channel and has written over 300 articles concerning mobile homes and mobile home investing for the BiggerPockets Blog. He has also been a featured podcast guest on BiggerPockets and other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.

    Bryan
    Replied almost 6 years ago
    Nice post John. All new businesses, or any activity for that matter, makes us vulnerable. There is a strength in that vulnerability however, because it causes us to learn and grow…..and hopefully profit. I have learned to be dedicated and consistent to new ventures, whenever I expand into new asset classes or investments. That has served well…..at least AFTER I made all the rookie mistakes :o) -Bryan
    John Fedro
    Replied almost 6 years ago
    Hi Bryan, Exactly! We have all made rookie mistakes in our life. Without these mistakes life would not be worth living, in my mind anyway. However with regards to REI these mistakes can be super costly in real world cash-money and long-term headaches. Great feedback. Thanks for commenting. Best, John Fedro
    John Fedro
    Replied almost 6 years ago
    Hi Bryan, Exactly! We have all made rookie mistakes in our life. Without these mistakes life would not be worth living, in my mind anyway. However with regards to REI these mistakes can be super costly in real world cash-money and long-term headaches. Great feedback. Thanks for commenting. Best, John Fedro
    John Fedro
    Replied almost 6 years ago
    Hi Bryan, Exactly! We have all made rookie mistakes in our life. Without these mistakes life would not be worth living, in my mind anyway. However with regards to REI these mistakes can be super costly in real world cash-money and long-term headaches. Great feedback. Thanks for commenting. Best, John Fedro Reply Report comment
    Gerald Harris
    Replied almost 6 years ago
    Becoming a Real Estate Investor and moving from being a real estate agent is a form of Transitional Vulnerability. There is a huge mindset change that needed to happen in order for me to truly embrace and understand that they come in the form of a different mindset. Moving from Long Beach California to Charlotte North Carolina has been a huge change in understand the different markets and their prices. The thing I did not do was join a help group like this. BP has aided in my understand if deals how the man ways in which to create win/win situations from them. Great Article!
    John Fedro
    Replied almost 6 years ago
    Agreed! I love BiggerPockets too. You made a great point about changing your mindset as you grow. I have had the pleasure of helping many new investors learn the mobile home investing business and each investor becomes a very different person from the time they get started to when they are successful investors with a portfolio of properties. I say that is a completely great way. Thanks for commenting. Best, John Fedro
    John Fedro
    Replied almost 6 years ago
    Agreed! I love BiggerPockets too. You made a great point about changing your mindset as you grow. I have had the pleasure of helping many new investors learn the mobile home investing business and each investor becomes a very different person from the time they get started to when they are successful investors with a portfolio of properties. I say that is a completely great way. Thanks for commenting. Best, John Fedro Reply Report comment
    Eric
    Replied almost 6 years ago
    Kelsey Property Management We just started and bought higher end properties in the Grosse Pointe area of Michigan. There is a demand for properties here but I have experienced some growing pains. However longterm I think the houses will be good investments and would like to had more. However worse comes too worse I don’t like it and things don’t go well the market is going up here and I you can always sell nice properties that you got for a good price.
    John Fedro
    Replied almost 6 years ago
    Well said Eric. Congratulations on pulling the trigger and being so active in your investments. Keep up the dedication and moving forward. All the best to you. Talk soon, John Fedro
    Roy Schauer
    Replied almost 6 years ago
    Good points. Some people don’t like to confront the new, the unknown and live their safe lives. There is nothing wrong with that. And then their are the pioneers, the think and do people who go outside the traditional thinking. They don’t always accomplish what they attempt but even in not succeeding they learn from the experience and most importantly they learn about themselves. How do you ever know what your truly capable of until you test your limits?
    John Fedro
    Replied almost 6 years ago
    Hi Roy, Your last sentence is such a great quote. I have on my wall, “Push yourself past the possible into the impossible.” Thanks for your kind words and for commenting. Let me know if there is anything else you need help with regarding mobile home investing. Best, John Fedro
    Lisa Phillips
    Replied almost 6 years ago
    Thanks for the article. Fear is the biggest impediment for many, so thank you for writing this article.
    John Fedro
    Replied almost 6 years ago
    Hi Lisa, Thanks for the kind words and for stopping by. Let me know if there is anything else you need help with regarding mobile homes. Best, John Fedro
    Chervon Jones
    Replied almost 6 years ago
    I have this mobile home that I am still wondering if it is a good deal. Due to the fact that it is not in a park and the land is included. But 70k is the price for home and land. How do I go about finding the price of the land? Also, should I get a separate appraisal for the MH? I used NADA.com and it gave me the round about amount of 30k. Even though I know the home is in very good condition.
    John Fedro
    Replied almost 6 years ago
    Hi Chervon, Thanks for reaching out to me on this. Congratulations on the prospective opportunity on your hands. This no doubt came from being active in your area. Here are my thoughts. How you purchase this property and for what price/terms will depend on your desired exit strategy. I have paid over retail value for a mobile home on land if the terms were right. Finding the price of the land can be as easy as looking at comparables nearby or online at your local property appraiser’s site is a good start. If you email me I will look over the deal and give you some specific action. Talk soon, John Fedro
    John Fedro
    Replied almost 6 years ago
    Hi Chervon, Thanks for reaching out to me on this. Congratulations on the prospective opportunity on your hands. This no doubt came from being active in your area. Here are my thoughts. How you purchase this property and for what price/terms will depend on your desired exit strategy. I have paid over retail value for a mobile home on land if the terms were right. Finding the price of the land can be as easy as looking at comparables nearby or online at your local property appraiser’s site is a good start. If you email me I will look over the deal and give you some specific action. Talk soon, John Fedro
    Michael Angelo Turner rental_property_investor from Pittsburgh, PA
    Replied 3 months ago
    Michaelangelo turner investor bio the Beginning Born july 5th 1992 in pittsburgh Pennsylvania to a low income family second youngest of 3rd youngest of six. Son of young military man (soldier of the army) father, and mother (recovering now) then psychologically unstable hustler turned drug addict after child services ceased this situation and split us up what followed was court foster homes partial paring home hopping and basement living i began to get distracted at school tiring of moving every few months, hearing we'll see as an answer to almost every request, and never having consistent living arrangement i seen early money mattered so at age 11 i began working at a friends house cleaning dishes and around their home At age 13 i read "nine steps to becoming a realionaire" by farrah gray and began public speaking along side paradise gray and jasiri x as a founding member of 1hood when it was a neighborhood peace organization (didnt make a dime) 15-27 Theatre At age 15 i discovered theatre and cinema via acting and directing I performed for the naacp, competed in various monologue competitions, (all the while working various labor jobs) became a founding member of th artist collective, brecame the youngest founding member of the August Wilson theater ensemble, performed with oscar award winner sir Mark Rylance, and other renowned theater/ film actors such as: Antonio Fargas,Michael Phillip Edwards, and Stephen McKinley Henderson. Also directed and assisted directed alot at this time Studied acting at the conservatory of performing arts in Pittsburgh. At this time i began to lose myself due to vices and back to back pattern of death in close circle being family and friends so i dropped out not long after making the deans list and over staying my welcome got arrested a few times acquired a bit of a background letting my mental break down manifest physically feeling unstable took a break from acting not too long after that i found boxing 25-27-present Boxing (condensed) In jail i met my first boxing coach through his analysis of it as a martial art and a science i fell in love with it hard we both got out i got a year of probation long story short i followed up stayed in the gym daily sparred nationally ranked amatures pros and met and worked with champs like demarcus corely and paul spadafora and got several fights under my belt went to goldengloves fairly fast and am coaching and fighting to this day. Present-future The investor Through boxing i met some one who suggested i read rich dad poor dad, to look into a program that helps funds purchasing houses, and lastly that hed promote my videos After i signed up for the program and read about 3 robert kyosaki books think and grow rich by Napoleon hill and richest man in Babylon it seamed clear realestate was the most practical Though i had over 16 boxing videos on my YouTube I never sent a boxing video I began to obsess over realestate and wealth building in general watching podcasts listening to audiobooks writing notes and constantly revising my plan of action, attending workshops to build knowledge, working to fix my school debt issues and credit score, looking for guidance via consultants and mentors and am now networking as best as possible to build network before this i home hacked a little bit and i started a business in which i rented a commercial space very inexperienced at the moment but very passionate and never been more sure about what i should be doing my goal is to is to learn as much as possible bring value meet people possibly mentors lenders partners contractors realtors lawyers cpas wholesalers etc Very eager and seeking to help out on deals in any way needed, sit in, or shadow for someone active that way its a win win for that person free labor and possible future partner and me to learn the ropes and rules of the road so i can implement them into my systems for my goals in commercial and residential realestate and focus it exclusively on what intrigues me buy and holds-renting out: Storage units Multi family 4plexs and up Apt complexes Please feel free to reachout to me direct message on here to get my info or other plarforms very friendly im a novice honest humble hungry ready to dive in just not supposed to go alone thanks for reading!