All Forum Posts by: John Fedro

Hi friends,

I have noticed that most folks on the forum here at BP are very concerned about not breaking the Fed laws that many people under-look state licensing requirements.

Below is a list of the requirements from state to state with regards to the number of mobile homes you buy and seller for profit per year without a MH retailers license. Verify your state below.

This does not apply for mobile homes attached to private land, this only applies for mobile homes on rented land and considered personal property.

An "0" in the second column indicates a state that asks you to obtain your mh retailers license before you buy and sell any mobile homes for profit. Homes that are considered your primary residence or secondary residences don't count.

An "A" in the second column indicates a state that does not have a cap on the number of mobile homes you may buy and sell for profit without a mh retailers license.

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STATE: # PER YEAR W/OUT A MH RETAILER LICENCE:

Alabama 1
Alaska A
Arizona 3
Arkansas 1
California 0
Colorado 0
Delaware 5
Florida 2
Georgia 0
Idaho 6
Illinois 4
Indiana A
Iowa A
Kansas A
Kentucky 1
Louisiana 3
Maine 0
Maryland A
Massachusetts A
Michigan 0
Minnesota 5
Missouri 4
Montana A
Nebraska 0
Nevada A
New Hampshire 3
New York 4
North Carolina 3
North Dakota A
Ohio 4
Oklahoma 0
Oregon 3
Pennsylvania 3
South Carolina 4
Tennessee 1
Texas 1
Utah 2
Vermont A
Virginia 1
Washington 0
West Virginia 6
Wisconsin 1

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Over the past several years I have spent my time helping investors invest in mobile homes in almost all 50 states. What I have come to discover is that many of the most successful investors buy/sell their first 2-5 mobile homes in parks or on land before committing their time and energy to become licensed.

These investors make sure they like investing in MHs, verify it is fun, profitable, and sustainable, then get a license to profit from even more opportunities.

I hope this helps everyone clearly make a plan for your future in the MH cash-flow business.

**In an effort to keep this information current and correct please let us know if any state has since changed their requirements since posting.**

Best,
John Fedro

Hello,

Potential Deal for local investors. A seller got a hold of me through my website with a MH for sale. Seller asking $4,000 for a single wide inside a family park. "No repairs needed" says the seller. 2/1 with a Realtor however "easy to get out of this listing" seller says.

Compensation: If you close the deal give me what you think is fair.

I have not seen pictures and have no contract on this home. This is a raw lead.

If interested comment below. :)

Sincerely,
John Fedro

Hi Jason,

Welcome to the site and glad to have you here!!

There are many variables we need to determine if your idea to sell your mobile home in this park for $25k will be a good idea, or even a reasonable idea.

I have experience in CO but would like to know the year of the mobile home, beds/baths, repairs needed, selling terms (sounds like you wish to cash out), is the home vacant, are there other parks in this area, do you wish to continue investing? We'll go from there...

Talk soon,
John

I would also like to hear this podcast. I nominate John Fedro to be the speaker. :)

Hi Jeff,

I dislike to be the bearer of negative news but Ca recently changed their laws to mandate anyone purchasing and selling a home for profit (even 1 per year) must be licensed. I too agree this should not be the case as we are buying and selling for ourselves and not representing anyone but ourselves... however this is not the case.

Some states say you should always be licensed (Ca), some states give you a cap per year without a license, and other states don't give a sh**.

I can tell you that many of my members have successfully gotten their licenses only after their first few deals. They have proven they like the business and can make more money, then they get the license. If you are interested in hearing more from a successful Ca MH investor I have helped (who is now licensed and can share more about the Ca area) then please email me directly and I'll connect you both.

Best,
John

Hi Jeff,

Where have you been? Welcome to the site. There is just about everything you'll need here. Thanks to Brandon Turner for bringing this to my attention. :)

To comment on your mobile home questions... I have investors I have helped train that are happily investing in MHs throughout Ca. Here are some things to be aware of in your area. I am not sure if you are looking for mobile homes inside parks or attached to private land - so I will discuss some pointers on both.

1. If the lot/pad rent in a mobile home park is over $600 then you are in an area with high demand. In turn you will find that buyers will pay cash for these homes in most conditions and pay unreasonably high lot-rents and home prices. So your likelihood to fast-turning these are minimal and risky. You likelihood of purchasing a mobile home below value is less likely in these coastal areas.

2. Find areas with lot rent below $500 to invest in mobile homes inside parks. In these areas you will find sellers that want to sell, fsbos available, a lack of cash buyers, asking prices below $30k, and park managers willing to help you.

3. Look for areas of mobile homes on land for reasonable prices and motivated situations.

4. Our average deal in a park in Ca looks like: You invest $2000-$8000 to control and rehab a MH to get ready to sell. By this time you are likely in for $2000-$8000 but may own more money to the seller to be paid later. Either way you sell the home for payments and cash-flow a profit monthly. We ideally make our money back in less than 12 months and it is profit from there (for the next 3-6 years). I tell you this because I do not want you thinking it is all easy flipping, no cash needed, and dealing with cash buyers (as there are few cash buyers in our line of work).

5. Ca requires you to be licensed as a mobile home dealer or retailer if you plan to buy and sell even 1 mobile home in a park for profit.

With all that said I highly recommend learning more as this is a crazy fun business when you get it right. :)

Hope this helps.

Best,
John Fedro

Hi Peggy,

I am sorry to hear about your bad experience. Do you mind telling everyone who the property management firm was?? I am in Austin and don't want to mix myself (or my properties) up this folks like this.

Keep up your positive spirits.

Best,
John

Hi Nathan,

A few things come to my mind as you discuss your issue. BTW congrats on finding Biggerpockets... it rocks right!

Check with your state/county like Marcy Albrecht mentioned above if you haven't already.

Next consider that renting your mobile home will almost inevitably end in a tenant missing some water issues, leaving windows open, doors open for water to enter, leaks without fixes, other damages, etc to your mobile home. The point I am making is that the homes will not likely last 15 years as rentals. Nobody will care for your mobile home unless they own it OR you are a super attentive property manager making walk thrus monthly.

As everyone is saying, dodging permits is likely a bad idea.

My suggestion is to perhaps talk with others that are local and experienced to determine what the highest and best use of that land may be, and perhaps liquidate it.

It sounds like you are determined and/or emotional about keeping this land. Why not use the $10-15k to pick up 2-3 mobiles in nearby parks to rent or resell for the same $375ish profit? Just a thought.

Either way best of luck.

John Fedro

It's about time for this one! Very interested to learn more

Hi Doni,

It sounds like you have a great outlook on trying new things and working to make the best out of life. Your vision of real estate investments may have been a little misguided by "Easy Money Gurus" but now it seems like you have a better understanding of how you can provide real-value (within REI) to make yourself money.

I have one suggestion... It's not fast money, but it is cheap.

After you be friend and exchange phone numbers with a few active cash-buyers in your area you can start looking for motivated sellers. You already likely know many home-owners in and around where you live. Be a little nosy and start asking around if anyone knows of anyone that may need to sell quickly?? Start walking (as much as possible) and talking to your neighbors daily.

Being a good bird-dog does not necessarily require much skill, but it does require you find the seller before anyone else.

Wow, great comment and content by Sam, John, Jerry, and R. Kerry!

Best,
John Fedro