Welcome back,
In today’s Mobile Home Investing Podcast episode #17, I’m very proud to welcome to the co-hosting microphone Mobile Home Formula member Ryan to discuss his 1st mobile home deal. Ryan is a newer mobile home investor that got started investing in mobile homes in 2015. What Ryan lacks in experience, he more than makes up for in ambition, dedication, and hard work.
Before joining the Mobile Home Formula, Ryan pulled the trigger and purchased his first investment mobile home in south Florida. This gorgeous 2/2 is located in a Senior community in a very nice part of town. From the very beginning Ryan is making a few innocent errors…
- Ryan is not a Senior citizen
- This mobile home is located 2 hours away from Ryan's home.
- Ryan did not to inform the park manager of what he was doing nor did he get approved at the park
Although these first few mistakes were made the deal worked out great. Listen to the Podcast episode below to hear the wins and losses of Ryan’s 1st mobile home deal. All parties were happy, and this deal was truly win-win-win-win for the seller, buyer, the park, and the investor. Working only a few hours Ryan made over $6,900 in less than 8 months.
Mobile Home Investing can be Forgiving
One thing we love about investing in mobile homes for cash-flow is that mobile homes and manufactured housing are fairly forgiving when you purchase these homes correctly. What I mean by, “purchasing these homes correctly” is that as long as you understand…
- The home and/or land you are buying and/or all included liens, debts, encumbrances, repairs, etc plus
- The park rules, processes, fees, and protocaol or property's flooding, taxes, insurance, safetly concerns, etc plus
- Are aware of all other comparable homes for sale nearby plus
- Your resale price and current market demand is completely understood and taken into account when making purchase offers plus
- You are able to resell for payments and recoup all of your invested capital within 10 months or less of reselling or if reselling for all-cash are able 3x your money plus
- Your ability to profit a minimum $300 per month net cash-flow if renting or reselling via monthly payments...
…And you also do not:
- Over pay for the mobile home.
- Over improve the mobile home.
- Sell to a high-risk tenant-buyer.
- Leave thousands of dollars on the closing table when you resell.
The above bullets are what I partially mean when I say, “Mobile homes can be forgiving when purchased correctly”. When you make sure to understand how to properly screen, negotiate, purchase and resell each manufactured home you are able to make occasional mistakes and still remain very profitable. With that said, each mobile home may only be sold for a finite amount to the correct buyers; so, aim to make as few mistakes as possible. If you have any specific questions or concerns with any deals you are working, or questions you have never hesitate to reach out to support@mobilehomeinvesting.net.Â
Mistakes do NOT equal failure. Giving up equal failure.
Related article: MHI Lesson Podcast Episode 014: Let your investing mistakes empower you to be a better mobile home investor
In this mobile home investor show John and Ryan cover:
✔ Ryan’s 1st mobile home transaction.
✔ Not getting “officially approved” by the park manager before you buy a mobile home in a park.
✔ Working within a “Senior Only” park and dealing with the management when you’re not a Senior (55+).
✔ Breaking-even in less than 3 months.
✔ Lessons/Mistakes Ryan learned from his first deal that he will not be making again.
✔ Working with your tenant-buyers to create Win-Win deals.
✔ Working with the right tenant-buyers and how to make these tenant-buyers motivated to pay their homes off early.
✔ When to take action.
✔ Investing close to home or hours away.
✔ Purchase Price: $3,000
✔ Having your tenant-buyers move in before getting approved by the park.
✔ Sold Price: $9,900, Payable as $2,000 Down and $350/mo for 22.5 months ($6,900+ Profit in 8 months)
✔ and much more!
Past Case Study Video with Ryan (Ryan’s part begins at 15:30 into the video below)
Listen to Ryan’s Story Here
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11 Comments
Geoffrey Freedman
January 9, 2016Hello John,
Thank you John and Ryan for this call. My question for you both is about investing in homes in senior parks. Would you do it again? I am only 40 however in my area there are a lot of senior parks and buyers. Thank you.
John Fedro
January 9, 2016Hi Geoffrey,
Thanks so much for reaching out and for your kind words. The answer to your question is, “it depends”. For your first few deals I would encourage you to stay in family mobile home communities where you can purchase two bedroom and three bedroom mobile homes that do not need hardly any repairs and come from sellers that are happy to work with you. With that said if there is a demand for senior housing in your area that I would absolutely have you eventually consider investing within senior mobile home parks as well. When you reach out to these park managers you will find that some will not want to work with you simply because of your age, however some will want to work as they need the help and understanding will be an asset for the community. This is a pretty quick and short answer so if you have any follow-up questions or concerns never hesitate to reach out to me here or email me personally at support@mobilehomeinvesting.net. Have a great rest of the weekend and keep in touch.
Talk soon,
John
Geoffrey
January 12, 2016Thanks so much John. This does make sense. I will be in touch.
Joseph Gilly
January 12, 2016Hey John. Longtime fan but first time commenting. 😀 Thank you for all the content and free material. I’m amazed at all the great information you continue to pump out. I have a question about insurance and what you do for your properties in mobile home parks and also not in mobile home parks? Thanks in advance and keep up the great work. Love the site!
Joseph
John Fedro
January 14, 2016Hi Joseph,
Thank you so much for commenting and reaching out. Additionally, thank you so much for your kind words, they truly mean more than you know. I am very glad to hear that these videos and articles have been helpful to you thus far. With regards to the insurance question that is absolutely a question that will be answered differently depending on who you ask. If you have not invested in any real estate before than I would highly suggest you obtain property insurance on every dwelling you own. Even if you have sold the home to a tenant-buyer (making you monthly payments) this should be a cost passed to your tenant-buyer and insurance still obtained. With that said, if you are more experienced with regards to mobile homes inside pre-existing parks you may choose to give the seller the option to obtain insurance or perhaps pay you a monthly premium in lieu of holding traditional insurance. With regards to mobile homes on private land I encourage you to always have insurance on these types of properties. This is a topic I can certainly talk about for hours. In this answer I have just given you a very high level overview on my thoughts. If and when you have any other questions or concerns never hesitate to comment back here or email me personally anytime. Alwasys here to help. Keep in touch.
Talk soon,
John
Lisa
January 13, 2016Congratulations Ryan and Jon. Great info. Thank you.
John Fedro
January 14, 2016Hi Lisa,
Thank you so much for commenting and for your kudos. Keep in touch and if you have any future questions or concerns never hesitate to reach back out. Keep in touch.
Talk soon,
John
Chris
February 2, 2016Hi John I wanted to ask you a question I want to purchase a mobile home for 4,000 for investment I found out there taxes owed since 1988. register owner does no longer live in the United States and it’s legal owner is Bank of America, which had sold the account to green tree, which no longer exists and now it’s called DiTech… I talked to ditech but they cannot find any records of the unit.. what can I do in this case to obtain title. The park wants to sell it to me with a bill of sale can they do that or not it’s been vacant for a very long time and the park doesn’t want to take the hassle to file for a abandonment can I purchase this unit with a bill of sale and try to obtain a new title need your help
thank you
-Chris
John Fedro
February 2, 2016Hi Chris,
Thank you for reaching out and connecting. I have no way to tell what this mobile home looks like however if you will be paying $4000 than the home should ideally be in very good shape and ideally a three bedroom. With that said it does not sound like the mobile home park is not willing to help you very much get the title situation in order. I find this quite odd, they would rather sell you a home illegally without a valid title and take your money, instead of obtaining clear title without any back taxes. As the mobile home park they will likely be able to file for or obtain a duplicate copy of the title through the process of abandonment much easier than you will. With that said even if a duplicate title is obtained someone will have to pay the back taxes which are owed. I’m curious if the $4000 will go right to the parks pockets or will pay the back taxes?
I put together a recent article and video describing some common mobile home title issues and what this might mean to you. Please take a look at this article and video and never hesitate to comment back any time with any follow-up questions or concerns. https://www.mobilehomeinvesting.net/lost-mobile-home-titles-and-other-common-title-issues/ With everything said I would most likely pass on this deal. With that said keep in touch and let me know any future questions or concerns you have with this deal or any others moving forward. Have a great rest of the week. Keep in touch.
Talk soon,
John
marlon
January 1, 2017I am doing the same thing in orlando florida at a mobile home park thats 40 years old and above and i am making at least 15,000 dollars a month sometimes even more
John Fedro
January 3, 2017Hi Marlon,
Right on! Great job making this business work in these type of parks. $15,000 or more month is very good income. I have no doubt that all these deals have not come without a good deal of hard work and daily effort on your part. Keep up the great work and daily hustle! Moving forward if you ever have any questions or concerns please never hesitate to reach out any time. Always happy to help if I can. Additionally, if you have any ideas or advice for future improvements, articles, or videos never hesitate to reach out as well. Keep in touch.
Talk soon,
John
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