All Forum Posts by: John Fedro

Hello all,

A motivated seller of 2/1 mobile home inside a mobile home park contacted me earlier today about her mobile home for sale.

She needs to sell fast and is asking $5,000. However she seems motivated and the home needs no repairs. I have not seen the property or spoken with her personally.

If you would like the seller's contact info and are local to her please private message me on BP.

In addition, since I am starting to make these "Mobile home lead" posts more and more - if interested simply let me know your area of the country and if I have leads there that I can not pass to my investor-members I will gladly pass them to you.

All the best,

John Fedro

Hello BPers,

I just received a lead from a very motivated seller is Tennessee. Based on the seller's emails this home must go. The home is a 2/1 built in 2006. No repairs needed.

If you are interested in getting the info on this lead and calling the seller please private message me on BP.

This is a raw lead. I have not seen the home or personally spoken with the seller, just emailed back and forth a few times.

All the best,

John Fedro

Hi Tyler,

Glad that you are jumping into mobile home investing. I began my career in Tampa Fl and continue to invest there so I know that this is a good market to be starting in.

In fact most areas of the country are great if you know what you are doing when getting started.

I have to say that in your posting you really used logic to convince yourself that MH investing may not be the way to go, however the opposite is true here when investing correctly.

Let's take your posting piece by piece. Your original text is in italics.

I'm in the process of working on my first deal and I've run into a couple obstacles. This is common to hit obstacles, especially when starting and learning solo. Obstacles make you money and keep other investors away.

I'm looking for homes in the $2000-5000 range in a market that has lot rents from $400-550. This is standard lot rent in this area.

I tested the market for buyers and got very few responses (2 in 1 week by email). I did the same test in a much smaller market and for 4 responses in 1 week. I asked a mobile home park manager the approximate time a home is on the market and he said 3-4 months is typical. You are not testing with the correct verbiage, prices, terms, and/or marketing-medium to be only finding this few buyers or tenant-buyers, even going into the slower winter months. Are you only selling your "future" homes all-cash? If you are selling only for cash then you are competing against every other mobile home seller selling for cash. Also, in my opinion don't let buyers email you. If they are serious they can call you. Lastly, it should take less than 2 weeks to resell your mobile homes if you price them right, up to one month if you need to re-work the numbers and remarket to new tenant-buyers.

Doing a deal in this market seems pretty risky to me. I can only see a deal being worthwhile if I buy from an extremely motivated seller. If you are only able to make money by purchasing mobile homes from super-highly motivated sellers that are pulling-their-hair-out then you will not be in business for long or not full-time at least with MHs. I say this to encourage you to learn/train how to target more sellers, more owners, and create win-win solutions to give sellers more money for their homes while also making the home really valuable to your future buyers too.

We really just scratched the surface but I hope this all makes sense? If not, or if I brought up more questions simply let me know.

Talk soon,

John Fedro

Hello,

If you are investing in individual mobile homes located within family mobile home parks in or near Chillicothe,IL 61523 then please let me know so that I can send you this lead.

This leads is raw. Seller is asking $3,500 for 2 bedroom mobile home. Currently asking for cash only. Motivated.

Private message me if interested.

Thank you.

Best,

John Fedro

Hi @Bobby C.

I am with Ken. If you can make this happen I would love to hear how. Good for you for seeing a need and wanting to fill it!

Doing some research myself it looks like the minimum ship-able home is still $25,000ish and not very big. What budget are you looking for? Will these homes be set-up by you, your partner, or the purchasers?

All the best,

John Fedro

Hi @Lindsey Run

It sounds as if your heart is in the right place. You are ready to start being active, helping sellers, helping buyers, and a investing in multiple properties. I assume you are looking for the TB Bank financing for when you buy, what about when you sell? What are your thoughts about your selling exit strategies? You interested in MHs in parks or only on private land?

You are likely surrounded by local sellers wanting badly to sell and buyers willing to purchase. There is likely a business here for you to capitalize on however there will be work involved and daily effort.

If this does describe you then I encourage you to find seller leads and also advertise for sellers to call you. Talking to sellers is the best way to find out how you can help "each" seller. If you are willing to help people and know which questions to ask you can likely find and structure very win-win deals.

By saying "know which questions to ask" I mean standard investor pre-screening home, park, and motivational questions.

Hope this helps.

Best,

John Fedro

Hi @Troy Bevans

Congratulations on this investment purchase! A 3/1 for $2,000 is a wonderful price, especially in good condition. You did a great job purchasing from your description of the home.

Now you have the choice to rent or sell. Very cool that this park gives you the option to rent, few do. Currently you have a fine-little-home that sounds desirable and will be a great income producing property. My advice is to sell and not rent.

Stick to renting SFRs as you already do. Mobile homes can become damaged much more quickly than SFRs from water and neglect. It is for this reason to sell the home versus renting. A buyer that is making you payments to own this home will be much more responsible with your high ROI asset.

In addition after you rent you will still have to resell to someone else. If the renter has not taken god care of the home you will have to sell for a very discounted price. If you do rent make sure to have you or your handyman walk through the home monthly to verify repairs and conditions.

Do not concern yourself with the appraised value of the home. As investors we only care about the home's blue-book value when getting it insured or refinanced. You are not alone in thinking that mobile homes depreciate - they do, however you are selling a nice quality home to a buyer that will be over-joyed to be making you average rent payments to soon own a home of their own after 3-7 years. In other words the way you are selling makes this $2,000 home a highly wanted property.

I would not mind looking over pictures of the home if you email them to me. From your description a payment sales price of $12,000-$20,000 should not be out of the question depending on repairs needed at the time of sale. Also location is important too.

Thanks for the awesome kudos!! It is you that had the guts and strength to contact this seller and help them out. Now it is you that will hopefully be a local MH expert in your area as you do more and more deals. :)

@Larry Roberts you are correct about lease options. In some areas they are not legal, however in most areas they are so know your state laws about LOs. If the park allows you to rent anyway than a lease option can be a good strategy here. It is best to not "get around" laws but rather to know what these laws are and do not fall within the scopes of their jurisdiction. With that said the lease option in this case would work. In other parks you will have to use an alternative startegy to sell for payments and a move-in fee. Also I always aim for, and teach other investors to not settle for less than $300 per month cash-flow minimum unless unforeseen obstacles occur. Just making sure you aren't leaving money on the table.

Let us all know what happens!

All the best and congratulations again.

Talk soon,

John Fedro

@Mason V.

What are you goals? Mobile homes? SFR? Buy and hold? Fast turn? Fix and flip? No fixing? Do you have capital to begin? How far do you mind traveling?

I am familiar with a few MH investors in you area so I may be able to shed some light on some options but you will first need to explain what you want and desire. Then we can easily establish which areas and things you will be searching for.

Clarity is key.

Talk soon,

John Fedro

Hi @Mike Knowles

Congratulations on being proactive enough to place a small and free ad on Craigslist to see what you stir-up. The deal is certainly worth looking at further.

It sounds like your exit strategies are normal enough (cash or payments) so I will speak to you based on this.

If you haven't seen pictures of the home then ask the seller to send them over asap via email. If she can not then go out there at your next free time, preferably after the next big rain storm. Depending on repairs-needed will determine your interest level unless you would like to pursue moving a newer MH onto the land. The mobile home is relatively new and a good size from your previous post.

Also important to ask or note:

1. Is the location very rural or suburbs of main city?

2. What else is for sale nearby?

3. # of beds and baths?

4. Is owner currently loving there?

5. What can you sell for monthly?

6. Why no financing? Even with money down? (Persistence often helps)

I would advise to pass on the husband living there. If the wife doesn't want to work with him you may not wish to either, however a background and credit check will bring his history to light.

Hope this helps you out. Happy to help further. You can email me personally if needed.

Best,

John Fedro

Hi @Scott VandenBerg

Glad to hear you finding out organically that indeed there are motivated sellers needing help in your area that own mobile homes. You are very right that these homes are in there own class compared to SFRs.

With regards to questions about this particular deal I would advise a pass. In MHPs you will want to look for mobile homes and manufactured homes with mortgages below $7000 in most cases. MHs on land there is no mortgage limit to look for.

You can certainly buy any mobile homes you want however MHs in parks with mortgages must be paid off prior to home transfer, this will eliminate many investors that may be interested. I am however working/testing a creative method to create profit and help sellers with homes and high-mortgages inside parks that will require no money, just time. I will let you know more as I discover.

As far as a finders-fee inside parks I pay an average of $600-$1000. This equals the first 2 months cash-flow payments to your investors after they resell. If you have any future leads and wish to market them contact me at [email protected] and I can forward your leads to a small handful of local investors in Michigan that are trustworthy and active.

I would really like to give a podcast whenever possible. I was scheduled to give one a few weeks back and missed the appointment. We'll see when I get rescheduled, hopefully soon :)

Thank you @Tim Stodieck and @Steven Johnson for the shout out!

Hope this helps,

John Fedro