Welcome back,
This week I’m super proud to welcome active mobile home investor, Paul, to the mobile home investing video series. Like most mobile home investors Paul is a relatively average-guy. Paul is an ex-chef that enjoys yoga and now invests full-time in mobile homes inside of other people’s mobile home parks.
In today’s video Paul opens up and talks about his business flipping and wholesaling mobile homes, as well as cash flowing mobile homes monthly.
Plus, all this traction in just over 12 months.
This is not by accident. Paul has invested the time, education, questions, and real-world action to create everything that he has achieved. Paul is laser focused with ample amounts of three important traits needed by successful investors.
This is a good time to talk about ambition, dedication and persistence. Everyone has heard these words enough times to make us want to roll our eyes. These three words are characteristic traits that are highly highly valuable in a repetitively successful mobile home investor.
✔ The ambition to ask questions daily.
✔ The dedication to invest time daily/weekly as needed.
✔ The persistence to push forward daily in your business and resist negative business thoughts/temptations.
Special thanks to Paul for sharing these lessons and stories to help all of our mobile home investing businesses thrive.
Chapter times provided below.
✔ 0:00 Warming up the mic
✔ 1:40 Paul’s last 12 months?
✔ 3:00 How many mobile home parks are you inside of?
✔ 6:10 Moving your 1st mobile home?
✔ 10:00 Selling your 1st home on payments?
✔ 14:30 Selling 10+ homes at once!?
✔ 15:10 Selling 3/2 for $19k cash.
✔ 16:45 Are your tenants paying on time?
✔ 18:30 Failure turned mistake.
✔ 20:20 Handyman or Do-It-Yourself?
✔ 22:50 Kickbacks from movers.
✔ 25:00 Wholesaling tips and advice.
✔ 28:35 Finding money partners.
✔ 30:30 Investing w/out a w-2
✔ 34:00 Ever feel sleazy?
✔ 35:00 Advice for newer mobile home investors?
Starting to mobile home invest with less than $15,000?
Most mobile home investors interviewed on this website begin investing with $5000-$15,000 set aside for mobile homes. With this limited amount of capital is important to be able to continue reinvesting capital again and again quickly as needed.
Mobile home investors beginning with $5000-$15,000 can expect to sell their first 80% of mobile homes to an…
✔ All-cash buyer.
✔ Bank financed buyer.
✔ Wholesale buyer.
✔ Buyer with large down payment to recoup most of your invested capital.
When beginning with less than $30,000 it is encouraged to sell a majority of your investment mobile homes to all-cash type buyers to start. Selling for all-cash will not create the most amount of profit possible. However, selling for all-cash will ideally allow you to make a quick decent profit to then reinvest nearly 100% of profits back into your mobile home investing business.
Pro Tip: Always know multiple realistic exit-strategies for each mobile home before you make any purchase offer to the sellers.
Note: Selling for payments is great when/if possible. Selling for monthly payments allows a hard-working buyer to make reasonable monthly payments overtime to pay off the mobile home. Selling for monthly payments typically allows for the highest resale price and most profit overtime for the investor.
Know your realistic exit-strategy/prices before you buy anything.
As mobile home investors we ideally want to aim for maximum profit while still selling each home to a happy buyer.
As an active mobile home investor, you may likely only invest in 6-12 or more properties every year. It is important to maximize the profit in each mobile home deal while still being ethical and transparent.
In the video above Paul admits to selling his first mobile home property too quickly and for too low of a price. However, at the time of these deals Paul was extremely happy and pulled the trigger without hesitation. Since Paul purchased his first mobile home property at a low enough price, he was able to quickly sell for a low price and still make a good profit.
Pro Tip: For this very reason is important to know your local, and not so local, mobile home resale market. This “knowledge of the market” will develop more overtime as you speak with buyers, park managers, study homes for sale daily, use comparable mobile home search websites/companies, sell more investment mobile homes, etc. However, in the beginning you will only have the knowledge you have learned from speaking with local buyers and reviewing prices online/off-line. Aim to consult with someone knowledgeable about the local market if possible.
Paul learned his lesson quick. By the second and third mobile home properties he was already increasing the sales prices for both cash and payments substantially. Paul is now allowing a handful of verbally preapproved buyers to walk through the mobile home before deciding whom to sell to.
In conclusion, there are a number of ways to create value as an active mobile home investor. Some methods are more realistic than others. Please keep in mind that little happens without serious action and daily commitment on your part.
While there are many ways to make money in real estate, there are countless ways to lose profits as well. Have fun and take daily action to reach your financial goals. If you have questions, feel free to ask them below.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
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6 Comments
Susan Gustafson
July 22, 2021Hello John,
My mother bought a mobile home for my brother, and both she and he are listed on the title. There are no liens on the mobile home, and it was purchased in and is located in Illinois. We want to remove my mother’s name from the title so that the mobile home is solely in my brother’s name. What is the best way to accomplish this?
Appreciate your help.
Susan Gustafson
John Fedro
July 26, 2021Hi Susan,
Thank you for reaching out and connecting. Thank you for expanding the situation as this definitely helps me understand things a bit better. The state will likely have your mother sell her interest over to your son for a dollar. However there should be a way for your mother to simply remove her interest without this being considered a “sale”. Have the VIN or serial number or title number to the mobile home and contact the local Department of Motor Vehicles to ask them this question. They will tell you the quickest and simplest way to have your mother’s name removed and where to go moving forward. You may have to wait on time for a bit however these folks are usually helpful when we have general questions like this. I hope this helps and points you in the right direction moving forward. If you have any follow-up mobile home questions never hesitate to reach out any time. All the best.
Talk soon,
John
Cassie
July 23, 2021Hi,
Congratulations Jon and Paul!
My question is over a month ago, I applied and was denied to get into a trailer park due to an expensive car loan.
My ex refinanced the car in his name only so it is no longer on my credit.
Since then, I have been approved for a mortgage for a trailer home in that park.
When I went to reapply for the park, the manager told me I have to wait 6 months.
Is this a typical policy for trailer parks? Can I ask for written proof? I feel like the manager doesn’t like me.
Thanks,
Cassie
John Fedro
July 26, 2021Hi Cassie,
Thank you very much for reaching out and connecting. I very much regret to hear that this Park and Park manager are being so strict and not working with you as you are clearly trying and willing to work with them. Most mobile home parks differ from one another in a number of different ways. In addition to the “corporate policy”, the park managers put their own personal spin on almost everything that they do. For this reason, it is possible that in some parks the manager will look the other way and take your application prior to six months if possible. However in some parks the manager does not have this leeway. With regards to your questions, a mobile home park can have this six-month requirement. This is certainly something that I’ve heard of before. You can ask for written proof however this will probably not start the relationship off on the right foot. Park managers are certainly normal people, and normal people are judgmental and emotional etc. If you feel like the manager does not like you, then unfortunately you’re probably correct. However this is something that can be overcome and changed over time. Perhaps bring the manager some doughnuts when you are ready to turn in your application next time if possible. Certainly be kind and appreciative and thankful. This goes a long way with many managers. I’m sure that you know most of this already. Feel free to keep in touch moving forward. If you have any follow mobile home related questions never hesitate to reach out any time. All the best.
Talk soon,
John
Kate Elliot
July 26, 2021I’m in the process of buying a mobile home in a park in Minnesota. The seller is moving out of state on Monday August 16th. How do you recommend we handle the closing? I’m not really comfortable with handing over the money before they’re moved out and I get the keys, title, etc.
John Fedro
July 26, 2021Hi Kate,
Thank you for commenting. Congratulations with regards to new closing on this mobile home in a park. I absolutely agree with you to not give 100% of the money over to the seller prior to doing a final walk-through and making sure there are no extra holes in the property, extra junk left behind, or things stolen that you were expecting stay in the property. This also helps ensure the sellers are out when they say they will be. While working with folks there is an after closing agreement I signed with sellers that states when they will be out and how much money is being withheld until they do so. If people want all the money we can let them know that we are eager and cannot wait to give them all of their money, however we have been burned in the past and they will receive all their money when they move out completely and we were able to do a final walk-through. The home should be left broom swept and in clean condition if possible. There’s some more information with regards to transferring title in Minnesota. https://www.mobilehomeinvesting.net/mobile-home-title-transfer-state-by-state/ I hope this all helps and point you in the right direction. Moving forward if you have any follow-up mobile home related questions never hesitate to reach out any time. Keep in touch.
Talk soon,
John
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