MHI 008: First Mobile Home Deals With Juan Thread

January 14, 2015

MHI Lesson 8: First Mobile Home Deals With Juan Thread

Welcome back,

In today’s Mobile Home Investing Podcast episode #8 I’m happy to be bringing you a co-hosting newbie to the microphone. Juan is here to discuss his first Mobile Home Formula deal inside a park for cash-flow. Juan will discuss in detail how he was able to purchase and sell this mobile home allowing him to break even after only 3 months of ownership.

“3 months to a positive profit”

All these manufactured home investing deals have not come from luck or chance. Juan is active in his community and has the clarity of exactly how his mobile home investing business should run and be operated. Before Juan got started with the Mobile Home Formula training system, he knew little about factory-built housing and creating cash-flow with mobile homes in his community.

Over the course of this 23-minute podcast Juan and I discuss some of our first deals and touch on just what took place. Some things should be duplicated, and other things should be avoided like the plague.

Over the past few years working with Juan, I am happy to call him a friend and someone I know will go far in his real estate investing business. Juan humbly agreed to spend the next 23 minutes with us on this week’s Mobile Home Investing Lessons Podcast describing his mindset and discussing what has made growing his MH investing business profitable, safe, and super-fast.

In this show we cover:

⭐ Purchasing mobile homes subject to the underlying mortgage
⭐ Creating Win-Win creative purchase deals
⭐ Cash versus rent credit
⭐ Learning what sellers really want to solve problems and buy real estate.
⭐ Trading real estate?
⭐ When to put all your chips on the table?
⭐ Sellers need help for all sorts of reason
⭐ Winterizing the home dos and don’ts.
⭐ When to sell for all-cash versus payments?
⭐ When to advertise for all-cash versus payments?
⭐ What to say when sellers ask for an all-cash price?
⭐ and much more!

Links Mentioned in this show:

Listen to the Podcast Here

Podcast: Play in new window | Download

Subscribe: RSS

Jeffery Napier
Reply January 14, 2015

Hi John,

Very fascinating story about the home you traded for prepaid rent. What ended up with the seller after she left your property? Do you think it is rare to do these types of deals? How did you learn to structure offers like this?

Jeffery
- John Fedro
  Reply January 17, 2015
  
  Hi Jeffery,
  
  Thanks for commenting. Good questions. The sellers and I are still in communication. The seller moved to a nearby apartment and has been living there now for the past few years happily. After the discounted rent was done at the mobile home I had her things moved free of charge for her. In regards to your second question, no this type of deal is not too rare. All sellers will typically need somewhere to live after they sell this home, if they don’t already have a place. Many sellers will be happy for you to try to find them a place they like and that is affordable. If you can solve this problem for the seller why not. 🙂 I learned to structure these deals by listening to sellers patiently, asking questions and getting answers, attending countless REI classes, having seasoned investors on speed dial to call, and constantly learning.
  
  I hope this brief answer helps and makes sense. If not don’t hesiatte to reach back out.
  
  Best,
  John Fedro
  - Beth C
    Reply January 19, 2015
    
    Hi John, I love this mobille home. Amazing work! I love mobile homes. Reasonable for folks that can’t afford a home. Beth C
    - John Fedro
      Reply January 19, 2015
      
      Hi Cynthia,
      
      Thanks for commenting and the kind words. Your last sentence about these homes “being affordable for someone who can’t afford a home” is a bit of a misnomer. These mobile homes are “homes” for sure. They are not site built homes however they do provide safety, warmth, protection, life, water, and much more to millions of Americans. I am very proud in these transformations as well.
      
      Talk soon,
      John
Kyle Cap
Reply January 17, 2015

Hey guys,

Great podcasts. Really happy to find these.

Cap
- John Fedro
  Reply January 19, 2015
  
  Hi Kyle,
  
  Thanks for commenting and the kind words.
  
  Talk soon,
  John
dawn
Reply January 30, 2015

hi I’ve been watching your videos and they are very interesting. But have a question. If a seller cannot find a buyer for two or three thousand dollars, till i come along, how would I, without putting a lot of money into a house find a buyer that has a down payment of two or three thousand dollars and is willing to make payments on top of that,plus getting a new buyer super quickly, it seems hard to believe. How is this possible?
- John Fedro
  Reply January 30, 2015
  
  Hi Dawn,
  
  Thanks for commenting and watching along. The program and formula I follow and teach is not magic or mystical, so the answer to your question is going to be very straightforward and easy to understand. We can only sell a mobile home if it is attractively prices, with attractive terms. We also need to market and advertise the home better than the current seller, and it would help if the home looked good too. I say this because if you plan to just buy from the seller and reselling without any repairs you may not be able to sell quickly at all. Every deal you do have to be considered and analyzed, we should always know our top few exit strategies before making any offers on any homes. Although this answer is not very specific, because without knowing which home you are considering buying I can not give recommendations and help too specific. However to sell a MH fast to a low-rsik TB you need what I said above, an attractively priced and looking MH. Next you need to know where/how much to buy and pay for every property so you will make that value and profit quickly.
  
  I hope this helps and makes sense,
  John
Dan
Reply February 15, 2015

The best way to purchase and pre-owned mobile home is to find a good clean one that has been foreclosed on. Many lenders that might normally reject a less than perfect credit history have adopted much more liberal lending policies for the mobile home repos they own. You can Google “mobile home repos” to find dozens of web sites that will help you locate the right home close to where you would like to be.

Many of the sites do charge a fee to browse the on line inventory. Others expect that you know about possible transportation, installation, registration, state title fees, insurance and renovations. I have been sending folks that purchase land from me to http://www.mobilehomerepoman.com I like the way they handle their business. The “repo man” site lets you browse thousands of mobile home repos in just about every part of the country. Additionally you can request that they hook you up with a local licensed and honorable dealer. It is very important to have a local professional involved.
- John Fedro
  Reply February 15, 2015
  
  Hi Dan,
  
  Thanks for commenting and sharing the link. In my business I would much rather purchase from a private seller versus a dealer or repo man. However I say this only from experience dealing with certain MH repo companies and having much faster and consistent results dealing directly with the sellers. If the numbers of a MH repo dealer are solid and the home is good then a deal can hopefully be made, multiple deals in fact.
  
  Best,
  John Fedro
  - Dan
    Reply February 16, 2015
    
    I agree. If I was going to purchase a MH for myself, I also would in most times, rather deal with the home seller. I know the local contractors and county inspectors and relocate homes regularly. Most folks intent on finding the right home for their family or even for an investment may find it easier and less costly to let a local dealer handle relocation, installation, registration and title details.
    
    Mobile homes make excellent investments. If it is in good condition, a mobile home will generally fetch the same monthly income, as any other local residential rentals, similar in size. Yet, a mobile home bank repo requires a fraction of the investment required other rental properties.
    
    A home owner may be motivated to sell but always has a bottom line that they just can’t get past. It is not unusual for lenders to sell well below market value. Bankers with too much inventory always reach a point where they just liquidate. The foreclosed inventory from the recent recession is still shaking down and the bankers want it gone.
Jane Amitt
Reply March 12, 2015

Great story guys. Love it.

MHI 008: First Mobile Home Deals With Juan Thread