All Forum Posts by: John Fedro

Hi Ramon and group,

Thanks for including me and I'll be happy to comment my opinion. This response is a my opinion based on experience and I welcome comments. 

See my responses below in non-bold.

I like to know if there anyway, to rehab a mobile home and make a quick profit out the rehab, does that works same as a normal houses, By definition I don't see how you can "rehab" a home without rehabbing it. What I think you may have meant is can you buy a used mobile home and sell it for a profit without making any repairs? If this was your intention than the answer is, Yes. The ultimate goal is to always sell your investment mobile home for an attractive price and terms to your end buyer. The home need not be repaired as long as all repairs are disclosed to the buyer and they are happy making the repairs for the price/terms of the sale. 

Now that we have that basic understanding lets talk about how an investor can create a value. We can buy a home below value, make repairs, and sell for a profit as the home is now fixed and move in ready. In addition to making the repairs and the improved value of the home realized that simply by finding the home undervalued and negotiating a win-win price with your seller, you have already created a value. My point in the last sentence is that by buying below value you have captured a value (profit) when you purchased, so you can now sell for a bit of an increased price if you find a buyer willing to pay this. There are other ways to create a profit however we won't go into them here. Remember though, your marketing has to be better than the sellers or you have to be more patient than the seller because if they can't sell it then perhaps you may have the same hurdles. Does this make sense?

what aspects do you have to look for before I buy a mobile home and make a profit without holding it. This is a bit more of experience than it is simple black and white features. A park without a lot of other homes for sale is a start. Buyers like 3 bedrooms more than 2 bedrooms, and 2 bedrooms more than 1 bedrooms. Some repairs buyers will consider cosmetic and be fine with in many cases, other repairs most buyers will turn the other way quickly and walk away. I hope this makes sense. If you have further questions don't hesitate to ask us. 

What if I own the property, and I want to start filling up this land with mobile homes and rent it out, does this will be a good idea? This sounds like a good idea to continue learning your local codes, prices to install utilities, and much more due diligence to consider. Others here may have more experience that me with regards to creating your own pseudo park than me. Continue asking questions and learning though.

All the best and I hope these thoughts helped some,
John Fedro 

Hi guys,

Very cool Mark! I have only seen this one other time and the home was rigged six ways to Sunday, meaning it was very shaky looking and I quickly passed on the deal. 

Unless someone else here has some concrete guidance for you and knows your local area I would imagine that this situation varies from county to city to state code department. Without a doubt if you get a purchase contract signed on the place make sure to have a qualified contractor or county/city inspector walk through the place to verify this construction. I say this only because it is fairly rare in my dealings, and even others I've helped in your area. Are you finding many of these MHs with basements in SD?

Thanks for the shout out Steven. Happy to help when I can, however I'm afraid a local inspector is much much more suited at giving a specific and applicable answer here based on the unique situation. 

Additionally Mark, any chance adding a picture of this basement/home for the rest of us to learn what these look like?

All the best,
John Fedro

Hi Daniel,

Thanks for posting your question here.

Everyone here already gave such great advice I can only add something very obvious.

I know that you have likely already thought about this however each investor may be looking for different criteria for a mobile home investment. I certainly know what I am looking for however this doesn't fit for everyone. 

To help these investors (I am assuming they are investors due to them wanting multiple MHs) ask them specifically what they are looking for, what they will and will not buy concerning age, size, price, condition, area, repairs, age restricted parks, family parks, etc.  

Thanks for the shout out Andrew.

Talk soon,
John Fedro

Hi Natalie,

Good to see you interested in mobile homes. I would be happy to give you some insights on what can and may happen. 

Assuming that the sellers are happy with a $6,000 purchase price, and you have disclosed that you will be selling it for more money, then advertising and wholesaling the purchase contract to an end user may be possible. This is assuming your advertising is better at attracting serious cash buyers than the current methods being used by the seller.

Like Andriy said disclosing your plans and willingness to help the seller get their home sold is key. Again, they should be happy with you profiting as long as they can get their home sold for $X price. If not then they may sell the home to the buyer you find, and undercut you out of the deal.

Other investors may be able to give you better insights to possibly holding the Title in escrow with a 3rd party until sold, to protect all parties, however this may be a hassle to arrange and negotiate from my experience. 

If this can not be arranged than perhaps closing on the home yourself to then resell for all cash price may be warranted. However it seems like a skinny deal anyway since you will not even be doubling your money. Either way though keep in touch and we wish you the best. 

Let me know if this does not make sense.

Talk soon,
John Fedro

Hi all,

That looks like so much fun!! Y'all do so much for others. Keep up the great work!

Best,
John Fedro

Hi all,

Understood Jackie. We are seeing eye to eye now. :) This what I already knew. 

Thanks for clearing that up, 
John Fedro

Hi all,

Thank you @Bill Gulley Understood. 

All the best,
John Fedro

Hi all,

Great thread. Good info.

@Jackie Lange  concerning the use of personal property trusts as you mentioned in a few comments above this one. Are you referring to the fact that reselling a MH inside a trust will not circumvent the need for an investor to get licensed as a Dealer if his/her state has a cap per consecutive 12 months OR is using trusts strictly forbidden under these acts?? 

The reason I ask is that you allude (in my mind anyway) on your sales page and here to the fact that "selling beneficial interest" in itself is illegal. Without correct steps the process can be illegal or against codes for sure, however when following state and federal guidelines trusts are still very much legal. Am I correct in this thinking? 

Thank you for clearing this up,
John Fedro

Hi all,

Very good thread thus far. Thanks everyone for commenting and the debating.

@Jackie Lange I would like to make a humble comment and question so that others are sure to understand some of your comments written above and in the market place. 

When I read your ad saying that cashflowdepot (of which I am a big fan) had hired 2 attorneys to give their takes on the DF and Safe acts I was intrigued. Then when you stated in the same bullet section, "Why you cannot buy in a personal property trust then sell the beneficial interest of a trust" I was very very intrigued. (Indeed I am probably the one you were referring to as promoting this around the site.) I searched my brain and thought, "Why on Earth couldn't a trust be used if all other aspects of the sale are legal?"  

Needless to say I had to find out for myself what info you had uncovered. So this morning I happily purchased the 11 page PDF you are selling. I was a little upset to read that indeed trusts can be used legally. They do need to follow the same guidelines as a living person with regards to these acts and staying legal. Also, trusts do not circumvent any "dealer" license you may need per your state, however they are still very much applicable.  

With that all said, I am still unclear as to why trusts can not be used assuming all other aspects are followed legally? 

I completely respect what you are doing for Lonnie and other great teachers that have passed away. I am a big fan of yours and have been since attending Jack's events and meeting you multiple times over Jack's Friday night pizza parties.

Additionally, you unwittingly bring up a good side point for all readers. I am not sure this is the place to discuss it but any advice given on a forum post or podcast (by myself or others) should be explored further and not taken as truth immediately. I only say this because if I am the one mentioning that I "buy and sell with trusts" and it is heard/percieved as "buy and sell with trusts without consequences of legal responsibility" this is clearly not the intention. There is a method, ideally legal and fully compliant, that every active investor follows. With that said, I am very confident in my own. 

Thank you all for reading and thank you for clearing this up Jackie with regards to the Trust issue.  

Thanks and all the best,
John Fedro 

Hi all,

I have been receiving a few more FSBO leads than usual in Virginia. 24563, 23875, 24592, 23430

While I usually pass these to folks I am already working with in the area, there is a little bit of an over flow in these zip codes. 

The seller leads are from my mobile home investing website and will be coming to you without anyone contacting the sellers. It is you job to perform all diligence. I will be available for questions if needed. All sellers are asking $10k or less.

Please private message me if interested in other details. Thank you for reading.

Talk soon,
John Fedro