All Forum Posts by: John Fedro

Hi William,

Welcome to the BP community. We are all here to learn and grow together. It sounds like you'll have a lot of good info and knowledge to provide the group moving forward.

Thanks for the shout out Mehran and Vladimir. 

All the best,

John Fedro

Hi Nathan,

My experience is mainly in mobile homes. While I do not rent mobile homes you can rent to a dream tenant or to a nightmare tenant. They will dictate if repairs are announced, if proper upkeep is maintained, and if they take care of your property. With that said water damage will affect a mobile home much more than a single family home in most cases. However with that said mobile homes are typically easier and quicker to fix than SFRs. 

While I am not a fan of renting mobile homes I do love selling them to buyers with monthly payments. This way only low-risk buyers are put in these homes and they take care of all the upkeep moving forward. 

With that all said if you plan to rent the land and sell the home this is a strategy I can get behind as well because you are selling the home and renting the land, best of both worlds.

So in short, I am not a fan of renting however to answer your question, "Yes, they make good rentals. There are many folks that would love to rent them. Do keep in mind that in parks most park managers will not allow you renting in their park."

Thank for the shout out Yusuf.

I hope I helped Nathan. If not don't hesitate to re-ask a question.

All the best,

John Fedro

Hi all,

Welcome to the investing world Nicholas and welcome to BP. Great advice everyone. I would be happy to add my experience to give a little more insight to the specific area of southern Ca and the Yucca Valley that you are investing in (if the property is located in the local area). 

Once you head inland from the coast you will start to see asking prices of mobile homes in parks prices drop from $70k+ average to $30k+ on average. In addition to a drop in price when you move inland (as you are) you will find more homes for sale, more time on the market, and less cash buyers competing with you. So, with that said I have no doubt that in this area there are 'some' homes going for $60+ however these are not likely the average. If you found a mobile home where the seller is asking $6,000 then it is likely you can do a little better than this price. I say this because if it where really valued at $60k it would already be sold. 

Instead I am more inclined to think this home is worth what someone will pay for it. An end user that has cash may pay $10k or more eventually, however the market has spoken and the home is still for sale at $6k. Now, an end user that does not have all cash to buy the home will pay you 60+ months of market rent (including lot rent) to own this home at the end of the term. Watch out for you paperwork here as it is easy to violate the Dodd frank or Safe act if not careful. 

Go see the home, find out why the seller is selling, talk with the park manager and make sure you are ok to be there (this is an important talk - be humble and let the PM know you will be reselling and not renting/sub-letting), and post the pictures here on BP or email me personally for more info or advice to move forward. You may have a deal there or you may not. You may have a motivated seller there or you may not. 

I hope this vague answer helps you move forward. However we will not know the answer to whether this is a "deal" or not until the home is checked out, the size and condition is checked out, the park is checked out, you make sure there are buyers available (which in So Cal there are many), and the park is happy with you being there.

Should you need anything else don't hesitate to ask.

Thanks for the shout out Brian.

All the best,

John Fedro

Hi Mike,

Congratulations on pulling the trigger and lining up this deal. Additional kudos on your first mobile home deal being one that requires a mobile home mover, vacant land, and transferring states compared to a simpler deal in a preexisting park. 

In addition to your question there are a few issues that I see needing addressing. However, first things first and the answer is No to the notary being needed. The paperwork in it's simplest form will be a Bill of sale, the Title(s) (1 if singlewide and 2 if a double wide - hopefully it is a singlewide due to needed move), and the state transfer form that can be picked up at your local DMV in LA when you are ready to transfer the Title. Do make sure to get the sellers forwarding address and phone number if it is being changed.

Additionally, you may have to transfer the title (from a MS to a LA) into your name or your corporate name prior to the move. However if a mobile home mover will allow the Title to be in someone else's name while they move the home to LA than you can simply wait to transfer the title to your name once it arrives in LA. Make sure you familiarize yourself with the permits and codes for your land in LA.

You mentioned not receiving the title right away and an owner financing agreement? Did you purchase the home for cash or payments? What is your exit strategy with regards renting the home and land, or selling the home and land together, or selling the home and renting the land? 

Talk soon,

John Fedro

For reference a number to the LA MH division is 225-925-9041 should you have more detailed state specific questions.

Additionally, what great and quick feedback from everyone else offering help. I love this site. 

Love the new look guys!

Talk soon,

John Fedro

Hi Steven,

Congratulations on the dedication and hard work you have put forth up until this point. Whether or not this deal will work out you are on the right track moving forward. I hope this deal works out in your favor though. 

Keep in mind that you are a different buyer compared to the buyer that gave you the lead. What I mean by this is that you can still re-negotiate the mobile home price and terms to fit your purchasing criteria. In other words do not simply take the same "deal" the other buyer negotiated for the home. I hope this makes sense.

In addition if this specific buyer will only pay $XXX monthly (but the market will pay more) then realize you do not have to resell to the buyer that gave you the lead, however it would be wise to give them a finder's fee. 

Has this buyer already been approved at the park? Do you approve of this buyer? Do they have good income, decent credit, no evictions, savings, low risk, etc? 

Additionally be careful while extending credit or holding financing to your new buyer as some laws specifically forbid certain types of seller financing.

Congrats again and keep us posted.

Best,

John Fedro

Hi Yusuf,

Congratulations! That is excellent to hear. Well done at taking action and securing that 2/1 for only $750. I hope the home looks pretty and will be a fast resell. Private message me if you have any specific questions.

All the best and talk soon.

John Fedro

Hi Walter,

Both great questions. No, I am not a licensed loan originator, nor do I originate or negotiate loans that violate these acts.  

Concerning mobile homes attached to real property I do use a RMLO and property attorney to negotiate and create all paperwork. I know you asked about mobile homes in parks however I wanted to cover both. Concerning mobile homes in parks I use a combination of lease agreements, addendums, disclaimers, personal property trusts and unsecured notes. With that said there is a good deal of paperwork and screening that goes on behind the scenes that must be documented. I know this is a very short and vague answer to your question however without going into great detail I do hope it helps. I still advise you to seek as much "professional" assistance as you can as there may be alternative strategies to sell and not violate these acts.

Great feedback Brian and Jim.

If you require more info please email me personally.

Talk soon,

John Fedro

Hi Walter,

Very important question and topic you bring up. To answer the question the way you asked it above "Yes", you should meet with local RMLOs and a real estate closing attorney to review their advice locally for your business. In fact I would reach out to multiple professionals to get their advice for you with regards to selling with seller financing.

The Dodd Frank Act and Safe Acts do impact us when selling mobile homes in parks and on private land. It is vitally important to your future success and legal practices that you do understand what is legal and what is against the new laws when selling while extending credit to end-users. The researched methods I use to purchase and resell mobile homes are not well known nor are they advertised anywhere on this site.

With all that said learn as much as you can about these acts and how to avoid breaking the laws. Once you have a good grasp on this and moving forward take action to start helping sellers and buyers.

There are also many other threads here on the BP forum that discuss the topic.

Hope this reply helps and makes sense. I know this answer is slightly vague however to answer your question, more correct education is always better than less education.

Talk soon,

John Fedro

Hi all,

Thanks for commenting @Al G.

Al brings up a great point. Like possible other steps many of us take as investors, or have taken as investors, to help protect ourselves and have the ability to help others may be frowned upon by other investors, society, local governments, or specifically written as fraudulent or illegal. With that said there are multiple methods to reach any outcome to move forward protecting yourself, your buyers, and staying compliant with local laws.

Everyone reading this post is an adult that can and will operate their investing businesses as they see fit. Hopefully everyone here always follows the laws, stays ethical to help all sellers, and sells good quality homes to good low-risk buyers. With that said this investor and this website always wish to make sure people proceed safely and within the scope of the laws.

With all this now said we can come back to the real world to mention that clarity for your niche and your investing business is key. However you choose to "ethically and legally" reach a clear understanding of your market demand and understanding of your local buyers is highly suggested before you make any offer to purchase your next investment mobile home.

When in doubt understand that you can resell a mobile home in a park for approximate local apartment rent. If a 3/2 apartment nearby (not a luxury apartment) is renting for $800 per month, then you know you can resell your 3/2 1980 and newer mobile home for $800 per month including lot rent and insurance fees. For mobile homes older than 1980 please subtract $100 per month.

Thank you Al for watching over our real estate community and alerting the authorities should you find any infractions.

All the best,

John Fedro