Mobile Homes

Mobile Home Investing: Not What You May Be Thinking

by Brandon · 0 comments

 

This is a post (the second in a three-part series) by John Fedro of MobileHomeInvesting.net. 

In my last post here at RealEstateInYourTwenties.com, I introduced myself, teased you with my simple cash-flow generating secret tool, then KAPOW!! – completely threw you a curve-ball by divulging my money-making strategy is investing in small, individual, easy-to-close mobile homes in and out of mobile home parks. I need to be brutally honest with you for the next minute…

Before we get into the meat of a cash-flow deal (next post) and talk about where all our money is made, you have to understand why sellers will sell you their unwanted mobile homes for such low prices; and conversely, why buyers will pay over retail prices for the same mobile homes. Much like any j.o.b. – you must understand your product, market, and all the players before you may truly thrive.

1. Understand Your Target Homes:

The mobile homes that will make you the most money are often times not the ones you would first believe. In a nutshell 3 bedrooms almost always outsell 2 bedrooms, and clean mobile homes always outsell mobile homes that need repairs. But what else… If you have been in real estate for any length of time you understand that it is not the cleanest or largest homes that make the most money but it is the more motivated sellers that you are truly after. The more motivated the seller, often times the more lucrative the deals end up becoming.

2. Understanding Your Buyers:

Approximately 80% of your end-buyers that call from your “Mobile Home For Sale” advertisements will not have the cash or approved credit to pay you all-cash for your mobile home. Another way to say this is that most mobile home buyers can make you a move-in payment and monthly payments for the sales price of the home. Understand that there is an ocean of buyers looking to buy a home with monthly payments instead of paying with all-cash.

What about buyers with all cash? These buyers are out there but in far less supply than buyers with some cash and great job history. Go where the demand is… payment buyers.

What about bank financing? Bank financing is very hard and restrictive to obtain especially concerning mobile homes on rented land such as inside a mobile home park.

There is a large segment of American society that are credit-conscious, hard-working and honest folks that would love to stop renting and finally own a mobile home of their own. If you choose to sell a home for all cash you are competing with all other sellers looking to sell their properties for all cash; driving home prices lower and lower. If you choose to accept monthly payments for your mobile home you can likely find tenant-buyers eager to pay over retail price for the value/opportunity to own a beautiful home.

3. Understanding Your Sellers:

My real estate investing business changed forever when I began to see my sellers for what they really are; fragile, scared, vulnerable, friendly, and selfish human beings. Let’s step outside the relationship that we typically have with mobile home and traditional real estate sellers and realize that each is a unique soul with his or her own set of skills, ambitions, loves, fears, and wants.

So what does all this mean for you: In a nutshell sellers are real people in real situations. Some sellers need to sell today, and others can wait weeks, months, or even years before becoming desperate to sell. Again some sellers are at the end of their ropes, while others have enough savings/income to ride out whatever situation is requiring/pushing them to sell. By being a mobile home investor in your area you may close deals and generate cash-flow by knowing your market and knowing what buyers will pay.

In my next post here at Realestateinyourtwenties.com you will discover an simple method to help ensure you underpay for every mobile home you purchase.

 

Impact a life daily,

John Fedro

John@mobilehomeinvesting.net

P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.

Don’t (Just) Invest for Retirement!

by Brandon · 0 comments

I recently had the honor of having John Fedro write the first of three posts here on RealEstateInYourTwenties.com.  If you haven’t checked out his site yet head over there!

While you are there, check out the article I wrote for him as well! I wrote a post on his blog titled “Don’t (Just) Invest For Retirement.”  Make sure you head over there to read my article!
(Click Here To Read It!)

 

Peace!

P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.

Add this Investment Bullet to Your Real Estate Ammo-Belt: An Introduction to John Fedro

by Brandon · 3 comments

The following post was written by a colleague and super-intelligent real estate investor John Fedro. This is blog post number one in a three part series from John. He has a highly interesting niche in Real Estate Investing, especially for those just starting out.  Make sure you bookmark his blog as well.

Add this Investment Bullet to Your Real Estate Ammo-Belt

“What do you want to be when you grow up?” This is the question that gets pounded into our brains over and over again by nosey adults encouraging youth to look ahead and consider their options for the future or by adults looking for a cute and whimsical answer.  So, what did you want to be when you grew up?  Did you become it? [please comment below]  This was my list starting at the age of 5:  a cowboy, Elvis, a grocery-store bagger, an executive chef, and lastly a physical therapist.  The last choice landed me at Notre Dame studying Medicine in the hopes for a well paying job with security in the next 7 years.
I had everything to look forward to in life– graduating, starting my career, getting a mortgage, settling down, working for the next 50 years at a job I wasn’t thrilled about, and growing old with just a moderate income.  I hated the very thought!!!  Not all of it mind you, only the unhappy-part slaving away at a career for the next 50 years making someone else wealthy. 

Do you ever feel this way?

So it is safe to say that many of us are here to make money with real estate, whether in passive monthly payments such as rent and owner-financing to BIG paydays from short-sales, wholesales, rehab projects, and the list goes on…
In fact for many starting investors simply choosing the right specialty or niche of real estate investing can make or break that investor’s drive and/or spirit from moving forward and ever closing a deal.  I was recently talking with a local Real Estate Investors Club President and asked him how many of his members have yet to do their first deal, my jaw-dropped when “Mr. President” replied over 90% of his regular audience has yet to acquire their first R/E investment!  Come to find out that this statistic is common in many real estate investing clubs and meet-ups.

Why go after the Big Fish first?

When I first started investing in 2002 I read a popular investing course at the time and implemented the exact techniques I was being taught.  I mailed letters, hung signs, cold-called sellers, made over 200 offers via Realtors alone without a single deal accepted.  In addition every private seller I spoke with seemed to be wanting retail prices for their home or only wanted all-cash (as opposed to creative financing).  I was spinning my wheels spending my savings on marketing and was losing deals to local big-named investors with the available-cash to purchase homes quickly and at a low cost.

I needed a way to make serious cash-flow fast without risking much money (because I didn’t have much left) and did not require credit (as I was 20 at the time and had a lack of established credit).

Failing Forward

Three months after making my first investment offer I was out of money and running low on morale.  Around this time I was feeling uneasy and unsure about my next move.  I received a call from a seller selling a unique home that seemed to be unsellable.  In fact every other investor told her to “get lost” (I’m paraphrasing).  This was soon to be my first investment property! The home is a beautiful 3 bedroom 2 bathroom plus den house overlooking the water near Tampa, Fl.  Best part is she was only asking $8,000 for the entire 1,200 sq ft home!
Have you guessed it yet?

Hint #1: The land the home is on is rented monthly by the home owner from the land owner.
Hint #2: You think many of these homes have wheels, but many do not.

If you have ever thought about investing an inexpensive mobile home and reselling it to a park approved buyer for cash-flow payments of $300-$600 per month, it’s time to think again.  Here’s a little about what you’ll discover in my next blog posts here at RealEstateInYourTwenties.com.

  • How you can get started immediately investing in mobile homes with little capital and almost zero risk
  • Which mobile homes make you the most money
  • Case study:  How to structure a deal using the 3/2 mobile home example above

Thank you again to Brandon Turner for allowing me to publish these thoughts for all of you awesome readers and fans to enjoy.  I am always available at the email below.  Everyone here has helped make this blog and network a wonderful place to grow and learn as active real estate investors.  Rising waters lift all boats!

Impact a life daily,

John Fedro

John Fedro is a leading expert in creating passive-income utilizing mobile homes for beginner and novice cash-flow seeking audiences with an award winning blog, an online podcast series, do-it-yourself video tutorials, and an E-magazine that benefits national charities. He has helped close over 120 real estate transactions in over 27 states.  He also co-established the first interactive performance-based online education classroom for mobile home investors. John has helped redefine investing in mobile homes as a popular and lucrative addition to traditional real estate investments for cash-flow.

P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.