Welcome back,
This article is all about getting into the mind of a top priority mobile home seller to find out what makes them accept your purchase offers.
If you are coming from the world of traditional single family house investing you may have little understanding about the mentality of many mobile home sellers. Often times newer mobile-home investors I mentor assume the 2 sellers are near identical. This fallacy could not be further form the truth. Different from the way they think, get motivated, live, buy, and sell.
Mobile home owners and sellers have mentalities that are vastly different from site-built home owners and sellers.
In the video below listen and determine the following:
- Is the seller is rational or irrational?
- What are the seller’s selling alternatives?
- Has the seller’s motivation level increase or decreased over-time?
- Have you talked to any seller’s that sound like this?
Daniel’s Mobile Home:
- Bedrooms: 2
- Bathrooms: 2
- Year built: 1987
- Square feet: 1130
- Repairs needed: Minor cosmetic under $500
- Seller’s original asking price: $13,000
- Seller’s current asking price: $5,000
- Seller’s original motivation level: Moderate
- Seller’s current motivation level: High
- My offer: $2,500 w/ cash/$4,500 w/ payments
Daniel and I have been friends for the past 5 years. Daniel originally approached me to purchase one of my mobile homes inside a park (Greenview Estates). Daniel and his wife did purchased a beautiful mobile home inside this park however it was from a private-seller and not my company. Daniel purchased his 2/2 mobile home for $13,000 cash just 4 years ago. Since then him and his wife have completed a number of cosmetic and structural improvements to the mobile home making it even nicer than before. Daniel and his wife have since moved out of this home and out of the state a few months ago. The home sits vacant and ready to move-in.
Sellers like Daniel are likely around you at this very moment fearful that they may never sell their unwanted mobile home. – Go find these folks and create your own cash-flow stream!!
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
P.S. The above video/post is designed to help you better understand your local mobile home resale market. Depending on your area the exact number of buyers and sellers will vary however (excluding downtown hot-spot areas) you will likely be one of the few buyers that shows up to help each seller.
Related Mobile Home Seller Mindset videos:
7 Comments
Wayne Lamson
August 20, 2012Hey John,
This is the kind of stuff that can’t be found anywhere else online. And I would like to thank Daniel for sharing his thoughts as a current motivated seller. I do have a question about Daniel’s home. Why wouldn’t he take payments for his home and sell it for $20,000 or more versus selling it for all cash for only $5,000? This doesn’t make sense to me.
John Fedro
August 20, 2012Hi Wayne,
Thank you for your kind words.
Concerning your question about why Daniel is currently choosing to sell his property for all cash (losing approx $8k) versus selling for payments and making approx $20k (minus the $13k he originally paid). The answer is simple and almost unbelievable. The main to 2 reasons are below:
1. Non-real estate professionals like Daniel are not experienced with the ins and outs of real estate and do not feel comfortable selling homes with payments. The marketing, management, finding a buyer, paperwork, etc, although easy to understand with the right training seem like mile-high hurdles a seller must face. In reality the selling process is super quick and easy, not to mention there are dozens of payment-buyers for every cash-buyer.
2. Daniel is emotional and wants to be done with this unwanted home (which is out-of-state). Emotional sellers are not always the most logical at times. With that said Daniel is rational, knows the pros/cons, however just wants his cash and to move on.
Wayne, this is why the demand for investors that also invest in mobile homes are needed all over the country.
Hope this helps,
John Fedro
Jeffery Civik
August 21, 2012What do you do when seller’s do want to sell you there homes? Is there a way to push them hard
John Fedro
August 22, 2012Jeffery,
I should stop you right there. I help work with many investors that come from the traditional real estate space where this “hard sale” model is popular. For your future cash-flow benefit, to reduce your stress, and to help sellers like you – you NEED to ditch this “pushing” mentality with sellers.
Bottom line is no seller is going to move unless A.) The deal makes financial sense to them B.) The seller likes and trusts you – and this will not come from a hard sale, but rather a genuine friends’s touch.
This is a large mental factor about the mobile home business that I hope now makes more sense to you. You can always attack more flies with honey…
best,
John
Greg Filian
August 26, 2012Hello what ever home you buy make sure to have a qualified manufactured or mobile home inspector check the property, someone who only inspects manufactured home.. This small thing could save you thousands of dollars in unknown issues. Sometimes the residents just don’t know the condition of the foundation, the roof or the plumbing. Buyer beware. Buy smart have is inspected first.
John Fedro
August 28, 2012Hi Greg,
Being overly cautious and keeping 2 eyes open prior to purchasing your first or next investment mobile home is a great idea. For any folks not certain about repairs can contact a professional inspector such as Greg. The greatest benefit to using a pair of trained eyes to look throughout your next deal (before you spend $2k-$7k) is to have confirm you have noticed all repairs needed and therefore will be purchasing the home at the correctly negotiated price. The old saying, “You don’t know what you don’t know” certainly applies here.
Greg I am curious your thoughts on an inspector’s qualifications versus using a local handyman that has worked on many mobile homes before? Do these thoughts change knowing that some of the homes we purchase are priced below $1,000?
Best,
John
jason
November 11, 2013Hi John,
Great stuff again! Mobile homes are really nice place to stay. I have been living in my RTM home since last 5 years. Mobile homes are customizable and also come in very low price. I agree with your philosophy. Thank you
Jason
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