Welcome back,
Weekly I am approached locally or receive an email from a newbie investor that understands that getting a seller to accept monthly PAYMENTS for their sales price versus an ALL-CASH offer is very important if you want to continue buying mobile home properties in parks with little to no cash needed at closing.
The number one question that almost always follows this understanding is…
How do I “convince” a mobile home seller to agree to sell his/her mobile home to me for payments?
Steps to help a Mobile Home seller see ALL of his/her selling options:
- Establish communication with a FSBO mobile home seller.
- Pre-screen that the seller’s mobile home fits your investment needs. If it does then set an Appointment to meet seller at property.
- Clearly list and explain ALL the seller’s options to sell their unwanted home. Typically 3-6 strategies will be offered. This requires an understanding of properly investing in mobile homes – which will typically either come from A.) years as a mobile home investor B.) trial and error C.) working with an experienced partner or D.) educating yourself via the Mobile Home Deal Maker Formula.
- Sit with each seller and answer any questions the sellers may have. This typically will begin a round of negotiations if your offers are within a few thousand dollars of the seller’s current action-threshold.
- Follow up with the sellers throughout their journey to sell their home. This will increase your sale conversion over time.
DON’T Do This:
Do not think that you will be able to convince a seller to accept a “payment offer” from you if you are belittling, forceful, a jerk, manipulative, and/or are trying to take advantage of the seller in anyway. Â Think about this – you are dealing with logical sellers and the moment a seller feels that you or your company do not have their best interests at heart you have lost the deal and any profit associated. For good reason too. Greed and manipulation do not make for a good investor.
DO This:
- Be trained to speak with mobile home sellers.
- Know the common and not-so-common ways to transfer mobile homes. Get educated!
- Ask enough questions to fully understand each seller’s unique circumstances.
- Have every seller’s BEST INTERESTS in your mind when making every deal. Think Win-Win and NOT Win-Lose.
Investing should be treated as a team event – the Seller AND You [Not, the Seller VS. You] should join forces to sell their unwanted home. The more time an energy a seller invests with you the more the seller is subconsciously saying, “I’m investing time to work with you.”
Treat everyone with the respect and candor you expect.
If you have any mobile home questions please do not hesitate to comment below or email me personally.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
Related Convincing A Mobile Home Seller To Owner Finance videos:
9 Comments
Jon
November 28, 2012hey John,
This is a great video and such a good message. I am tired of hearing other investors being too aggressive with sellers. Yours is truly a recipe for a long and blessed business.
JH
John Fedro
November 29, 2012Hi John,
Thanks for the kind words. It is so true that many home sellers feel belittled and angered by some Investors that devalue the seller’s home. It is amazing how many more sales you can get from honesty and honey, instead of vinegar. Oh well, more deal and sellers for us 🙂
Best,
John
Lucas Ferreira
January 15, 2013Hi John,
I’m eighteen years old and have a few thousand dollars in my bank account. I have no credit, or experience with buying and selling real estate. How do I get sellers to take me seriously?
Sincerely,
Lucas Ferreira
John Fedro
January 16, 2013Hi Lucas,
So glad to have you hear. Getting stared now and by the time you’re 20 you’ll be a seasoned investor. So great you’re a young go-getter. Don’t stop! 🙂
With that said it is my opinion that getting started for you will be more difficult than older investors. This is due in part to 1.) almost all the home-sellers you talk to will be older than you and 2.) there is a preconceived notion that age = wisdom. If you are willing and able to help, you are willing and able to help.
The simple answer is that you will have to overcome this “age” downside by being even stronger than your age. What I mean by this is that you will have to push through being scared and go forward to every seller-appointment you can. Some sellers may look down at your age at first but this is a small hurdle to overcome… Once you clearly paint a picture of how you can help them – they will listen.
When I got started I was petrified on the way to my first successful deal… and my second successful deal. BUT I ENDED UP WITH THE HOMES!! 🙂 I was young and I had done it. You see, when you believe in yourself it won’t matter what others think, and it will reflect in your speech.
Here are some tips:
1. Perhaps mention to folks that you work with a silent money partner.
2. Know your stuff, practice frequently asked seller questions
3. Over the phone speak with a slightly deeper voice than in person.
4. Keep your rep clean and help everyone you can.
5. Do have a mentor you can ask all the questions you don’t know in real time.
6. Expect to do a deal in the next few weeks and take action.
I hope this all helps and points you in the direction you are wanting.
Talk soon,
John Fedro
Todd Young
February 27, 2013Hello John,
I am new to Real Esate Investing in the last 6 moths. I have been educating myself quitre a bit on mobile home investing. I am in Tampa Bay, FL. A few months ago I did go speak with a few Park Managers who flat out tell me that lease to own (or me providing financing to my buyer) is not allowed. I do emphasize that my propspective buyers 1st have to be approved bu the Park but they still say no. Is there a Florida Law that does not allow “lease-to-own” of a mobily home between a seller and a buyer? If not, can Park Managers leagally say this is not allowed. I would love your input on this with respect to the Florida Mobile Home Market, specifically Tampa/St Pete/Clearwater) areas if you can. Thanks in advance.
Todd Young
Young Real Estate Investing of Florida, LLC
John Fedro
February 28, 2013Hi Todd,
I am familiar with your area fairly well and have sold homes via payments in many of these parks. Some parks have always said “they don’t work with investors” OR “that selling with financing is not allowed within their park” OR “that the home owner must be on the title”.
Do not let this get you discouraged about investing in parks. You must find parks that want to work with you, there are many out there. Also, practice your introduction speech with park managers… often times when presented correctly park managers will allow you to work within their park and sell for payments.
Banks finance homes all the time within mobile home parks, so if a park is telling you that you can not do this they likely do not want you in the park for some other reason. They likely have been burned by an “investor” in the past OR simply don’t want the competition from you?
Concerning rules about financing in Florida. Yes, this is known a the Safe act and other laws which limit seller held financing compared to just years prior – now creating financing must go through a licensed loan originator compliant with the Safe Act or use paperwork that does not fall privy to these acts. It is not against the law or illegal or taboo for you to sell home via payments, however you must stay compliant with the laws.
With that said continue speaking with park managers, always be looking for new parks, and look for mobiles attached to private land too.
Let me know if you require further help.
Best,
John
Bill Smith
July 12, 2013When structuring a payment plan with a seller, how are you able to convince them to sign over the title? Do they sign the title over to my buyer and then become a secondary lienholder? Some transactions would seem to have me operating as a broker…are there any licensing requirements? Btw, thanks so much for putting together a wonderful website. The information I’m obtaining is what I really need to make an informed decision about whether mobile home investing is for me or not. I’ve flipped a few houses in my past and recently sold the mobile home I was living in on a secured promissory note. I think there is real potential in mobile homes. Thanks Again,
Bill (in Ohio)
John Fedro
July 13, 2013HI BILL,
PLEASE SEE MY THOUGHTS BELOW IN ALL CAPS.
When structuring a payment plan with a seller, how are you able to convince them to sign over the title? WE DON’T HAVE TO CONVINCE THEM. IT IS SIMPLY OUR POLICY THAT WE TAKE TITLE INTO OUR TRUST NAME WHEN WE PURCHASE THE HOME, WE ARE RISKING TOO MUCH IF WE DON’T. IF THE SELLER WANTS TO BE PROTECTED AND LISTED AS LIEN HOLDER UNTIL THEY RECEIVE ALL THEIR MONEY THEN THAT IS FINE. Do they sign the title over to my buyer and then become a secondary lienholder? NO, YOU TAKE OWNERSHIP IN YOUR NEWLY CREATED PERSONAL PROPERTY TRUST. AS THE INVESTOR YOU ARE ON THE CHAIN OF TITLE, YOU ARE NOT ACTING AS A REALTOR. Some transactions would seem to have me operating as a broker…are there any licensing requirements? IF YOU ARE ACTING AS A BROKER OR REALTOR YOU ARE NOT CORRECTLY FOLLOWING PROCEDURE TO TAKE OWNERSHIP FIRST, THEN RESELL. I HAVE RECENTLY WROTE AN ARTICLE ON THIS BLOG THAT DISCUSSES GETTING A ‘DEALERS’ LIC IN YOUR STATE. Btw, thanks so much for putting together a wonderful website. The information I’m obtaining is what I really need to make an informed decision about whether mobile home investing is for me or not. THANK YOU BILL. IT HAS BEEN A LABOR OF LOVE. IN ADDITION TO THAT I WANT TO BE WITH YOU FOR YOUR FIRST FEW DEALS SO MAKE SURE TO SEND ME PICTURES AND RESULTS FROM YOUR MODULE 1 ACTION ASSIGNMENTS SO WE CAN DISCUSS THEM BEFORE MAKING OFFERS. I’ve flipped a few houses in my past and recently sold the mobile home I was living in on a secured promissory note. CONGRATULATIONS! I think there is real potential in mobile homes. KEEP UP THE GREAT EFFORT AND CONTINUE FOLLOWING THE FORMULA.
BEST,
JOHN
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