All Forum Posts by: John Fedro

Hi Larry,

I wanted to let you know my thoughts and hopefully they'll help. By now I would hope you have spoken with the occupants and made arrangements with them to pay or get out. Approaching your occupants logically and allowing them 15-30 days to move out before you begin the legal process is always my route 1.

I hope that these occupants have been paying for years and this is not the first month they are in. Tightly screening tenant-buyers will make this business a pleasure or pain for the average investor.

The method by how you sold/rented the home will matter as to how you will be evicting them, foreclosing, or suing for some sort of non-performance issue.

Who is holding the Title? Does your name show as Legal Owner or Registered owner? Are you holding a lien on the property? What other legal paperwork was signed when they took possession?

I found this info on Ca evictions and thought it may help you. http://www.expressevictions.com/flowchart.php

Best,
John

I have not read the book yet.

I was under the impression it wasn't out. Rachel has been doing this business for sometime so I'm sure the book is well worth the nominal price. If you find one nugget of gold to add to your business it's probably worth it.

Best,
John

Howdy Chris and Ken,

Ken great outline and PSA for everyone. The number on your website is disconnected. What is a phone number that we can call you for more information.

Sincerely,
John

Justin,

First off... is that your real name? If so I always thought that would be an awesome name to have.

I have never heard of a modular home being moved once placed down. A modular home is joined by contractors and inspected by a local county codes inspector almost identical to a traditional frame built (site built) home. As well as typical modular homes are placed on land you own.

If you meant a mobile or manufactured home then anywhere between $2,000-$3,000 including all permits, set-up, even electric/ac hookups moving around 20 miles distance. This is only an approx number assuming the home is a single-wide. If the home is a double wide OR a number of pop-outs, add-ons, or sun rooms then the price will go up rapidly. Also double-wides never quite go back to the pre-move look and feel, they always seem to be a little off when reconnected.

Many movers these days are hurting and will move the homes for much less or perhaps do so "off the clock". Call around and get at least 3 offers from different movers.

-John Fedro

Hey Philip,

When you sell a quality home for a nice price people will pay.

From what I am seeing around the country this is typical. Usually they aren't the first 3 callers though. :) The NE and west coast can pull more cash buyers but you're only selling the home for $5,500 so there will definitely be buyers with this amount of available cash looking for a MH to buy outright.

Im curious are there any other homes for sale in the park around $5,500? Do you think you would have had buyers at a $2k down and $200 for the next 60 month price? Would you have taken cash-flow then?

You should always be marketing the home for both cash and payments as you have just done. Either offer the buyers accepts make sure it is a price/terms that will make you jump up and down with happiness when they become approved to buy.

-John Fedro

You Rock Philip! Congratulations on your 1st MH deal! Keep this momentum moving forward... only 999 more to go :)

-John

Hi Collier,

Good question. Especially due to the fact you are getting yourself lined up to in this business correctly. I have seen investors pay too much for mobile homes inside parks many times. This eagerness to pay too much for a mobile home comes down to lack of experience and an altered perception. Since you are green to MH investing it will shock you to realize what you can purchase a used mobile home in a park for, especially with terms.

The answer to your question is not about finding alternative methods to selling a mh in a park. Since most parks won't let you lease the answer comes down to knowing who your buyers are and how much they will pay for a mobile home (down and per month) like the one you will be selling. What you will also learn by running test ads: which advertising method works best to find these buyers and how many flaky buyers there are to semi-qualified sounding buyers.

What to do: Prior to making any offers on any MH run test ads online and offline to see what buyers will pay and which method of advertising the buyers in YOUR town are responding to. Once you become a LOCAL expert you can make purchase offers with relative certainty that you can make all your money back day 1 and hopefully eliminate any holding costs by having a buyer lined up prior to purchase.

Hope this helps you move forward!
John Fedro

Hi Jason,

Is the property in question a mobile home attached to private land or inside a rented mobile home park? This will make a great deal of difference.

If the property is attached to land then Dion's advice above should help clear things up. Because the home is owner occupied you don't need a loan originator to draft documents (note/dot) but it may be a good idea if you're newer to r/e.

If the property is located within a park a formal note/dot are not always warranted.

- John Fedro

Hi Lee,

Sorry to hear about this situation. Bad things happen to good people all the time. I have purchased a number of homes from Greentree after they have taken back homes. There are so many awful reviews about Greentree's practices on the lending side (but thats another post).

In answer to your question California is a judicial foreclosure state. The process should take months not weeks to complete. Call a real estate attorney that has a free hour consultation and have a list of questions ready to ask.

If the home is in a mobile home park you will need to pay lot rent or risk being evicted by the park within 30 days.

Good luck,
John Fedro

Hey Larry,

I will assume you are talking about a mobile home located within a mobile home park and NOT mobile homes attached to private land. A true "NO money needed" purchase only happens in my experience 1 out of every 10 deals. Most sales require at least $500.

Venkat hit it on the head with "seller financing", except I would not say to "ask" the seller for seller financing as most sellers will always prefer all cash and deny you right away.

I have spent the last 10 years convincing sellers that the options I have for them are the best solution to their problem... how do I do this? Because the solutions I have for them SOLVE their problems and are executable immediately.

Some notes on Venkat's advice:

Master lease = Ehh. Maybe for homes on private land. Just get the deed instead.

Private money = Most investors will not lend you money without a proven track record of success in this field.

Partnership = Try partnering with the sellers themselves.

Get the first from bank/lenders and second from seller = Unless you really, really, really want this deal then go to a bank to sign personally for a loan.

- John