All Forum Posts by: John Fedro

Thanks for the stories everyone.

Jon that is a great story. It's funny that simply purchasing an appreciating piece of land with a mobile home on it can make you seem like a genius years later. Love it!

Jackie good story as always. I have heard that story from you before and always love to hear the creativity you have to create win-win deals with motivated sellers. Did you ever trade those 10 lonnie notes for a free and clear house?

Best,
John

Hi Joshua,

Congratulations on the listing and the opportunity to learn and grow.

You mentioned that the park has not been operated or ran properly. This is a plus in my investor's eyes. This allows for forced appreciation through rent increases and hopefully simple upgrades.

If the listing is yours then market it to everyone and everywhere online and offline to get the word out.

Speaking of... what's the deal. Can you give me park specifics such as location, units included, lots on site, price, terms, NOI, etc.

Best,
John

Hi all,

I hope this is the right spot to place this thread. I thought it may make for some good chit-chat and learning lessons.

One of my favorite stories about a mobile home in a park.

It may be because it was my first deal but looking back this was a great first deal to open my eyes to mobile homes as profit generating investments. I am also glad this was my first transaction inside a MH park because it set the bar at a level I continued to aim for throughout my journey.

After many failed attempts at marking I received a call from a seller. I was so new to REI I didn't know enough to ask what type of property it was. I just knew she was originally asking $12,000 and now was asking $7,000.

Interesting to note that the seller found my ad in her next door neighbor's trash. How she was looking in the her neighbor's trash I have no idea.

Once I pulled into the mobile home park my mouth dropped at the fact I was looking at mobile homes, albeit attractive mobile homes. After being surprised, depressed, offended, and eventually happy to be looking at the fsbo home and talking with the seller I was surprised at how easy it was to talk/listen with this seller. Over the next 2 hours of talking/listening I was able to purchase the home for just $300 per month for the next 10 months.

I could barely believe what happened! I was dancing and smiling the rest of the night.

This home made me a profit instantly and continues to do so 11 years later.

Hope this was a fun read.

Best,
John Fedro

Hi Lindsay,

This is a great topic and question to ask. We investors typically like to talk about ourselves and things we have learned. With that said my most awe inspiring deal for me was my very 1st one.

It may be because it was my first deal but looking back this was a great first deal to open my eyes to mobile homes as profit generating investments.

After many failed attempts at marking I received a call from a seller. I was so new to REI I didn't know enough to ask what type of property it was. I just knew she was originally asking $12,000 and now was asking $7,000.

After being surprised, depressed, offended, and eventually happy to be looking at the fsbo home and talking with the seller; I was surprised at how easy it was to talk/listen with this seller. Over the next 2 hours of talking/listening I was able to purchase the home for just $300 per month for the next 10 months.

I could barely believe what happened! I was dancing and smiling the rest of the night.

This home made me a profit instantly and continues to do so 11 years later.

Hope this was a fun read.

Best,
John Fedro

P.s. I'm going to steal your comment to add to the MH investing forum here on BP. Thanks :)

Hi Lori,

There are likely some local mom and pop insurance companies as well as nationwide or gov't insurance companies that will write a policy on a MH in and outside of a park. Call around to get a few quotes before committing.

If you plan to sell the home you will want a home owner's policy for your tenant-buyers and make sure to let the insurance agent know you or your company or trust is to be additionally insured as lien holder.

Your thought to escrow monthly for this premium is a great idea. Do not trust the TB to make this payment, at least not at first. If they did cancel and you are listed on the policy you will be notified.

Until next time,
John Fedro

hi Lori,

I see I forgot your other question about introducing yourself to the park manager. The #1 method I use is being direct and upfront with the PM. I do have a video and script for this however it is privatized for the investors I help train.

The 2nd method is just a good for introductions. Just remember to be sincere and keep in mind you are there to help the sellers and help the park manager and you will do great. Make sure you meet all the local PMs too.

Best,
John Fedro

Hi Lori,

Happy to help. I hope the answers made sense.

Good job being a self-starter and making sure to find all local parks, park managers, and sellers to market too.

Be conservative in your offer(s) and remember you can always go up in price/terms.

Also, test for local buyer before making any offers so that you not only know your competition but you know the prices you must purchase for to sell quickly and for a substantial profit.

Keep up the great effort.

Best,
John Fedro

Hi Tyler,

That's very interesting and cool that you have been able to make a living, hopefully a great one, by doing something you love online.

Thanks Brandon Turner for the shout out. :)

You asked for specific advice based on your current location of Ca. Whether in Ca, Canada, or Fl you will want to understand the MH buyers and sellers in your market, then close on your first few deals. Yes, there is a specific strategy I would recommend for this. 1. test for buyers 2. locates most sellers 3. make many offers 4. close top deals.

I am Not sure what you where recommended with regards to mobile homes by your friend however they are great cash-cows but less good when it comes to big paydays. If you're looking for cash-flow you came to the right place, just fyi and to save you time.

Best of luck. If you have any other specific questions don't hesitate to ask here or message me here on BP.

Best,
John Fedro

Hi Russ,

Great advice from everyone here.

As I see it you are looking for the most cost effective method to fix the problem for years to come. Spending $10k is out of the question in my book.

If you have pictures online somewhere perhaps we could get a better sense of what is going on. If the ceiling is just sagging and not broken, is the home still livable or not? Is it slightly sagging or major?

Bring in many different handyman and professionals to offer more custom help and opinions.

Hope our comments help. I think we would all be interested to hear how you resolve this problem.

Best,
John Fedro

Hi Mubasher Riaz,

Great video walk through of the home. This is a very nice looking 3/2 doublewide. It has a good sized lot too. Is this home inside a mobile home park or attached to land you also own? Like a park I would imagine.

I heard in the video that your aim is to rent the home. If inside a park make sure this will be alright with the park manager as many parks do not allow for rental. Also while renting make sure to inspect the property at least once every 60 days to ensure home is just a pretty as it is now.

With regards to repairs I only see carpet and some appliances need replacing or installing. Do not over improve this home if you plan on renting, this will directly cut into your profit. If it is not broke, don't fix it. You should not have to spend more than $1500 with labor for these cosmetic repairs. But it is obviously your call as you're the owner.

Ned has a point with the higher than average purchase price at $15,000. Certainly still a money maker but could it be purchased for less from a motivated private seller, probably.

Either way good find and congrats. Keep us updated and perhaps even a follow-up video once fixed or rented.

Best,
John Fedro