Welcome back,
In today’s 33-minute Mobile Home Investing Lessons podcast episode #46 we sit down with active Mobile Home Formula members Ian and Daniel. The two best friends have helped dozens and dozens of mobile home sellers and buyers in their short time investing.
Over 70+ mobile homes bought and sold, or wholesaled, in just over three years. This averages out to 2 mobile homes purchased and resold each month, for 36 months straight.
These investors are not geniuses, but they are hard-working, ambitious, dedicated, and ethical friends that do not have to work a 9-to-5 job anymore. Listen to what these two investors have to say.
A special thank you and shout out to Ian and Daniel for hopping on today’s call. Hopefully their sacrifices will now go on to help you grow your mobile home flipping business.
In today’s mobile home investing podcast #46, John, Ian, and Dan gossip about…
- ⏩ 0:00 Introduction
- ⏩ 0:45 What are you willing to sacrifice?
- ⏩ 1:30 How much cash did you have to start?
- ⏩ 3:15 Cash or Cash-flow for you?
- ⏩ 5:15 Tips partnering with a best friend.
- ⏩ 8:40 Work life balance tips.
- ⏩ 12:05 Deals out in the middle-of-nowhere.
- ⏩ 15:00 What does an average deal look like?
- ⏩ 16:20 Do you need a sales lot?
- ⏩ 18:10 Do you think your age matters?
- ⏩ 18:50 Do you have a boss?
- ⏩ 21:50 Discrimination
- ⏩ 24:30 Providing value over price to seller.
- ⏩ 27:00 Setting correct expectations.
- ⏩ 28:40 Taking 6 months to close?
- ⏩ 29:00 Hours you put into your deals.
- ⏩ 31:20 What’s been one of your simplest deals?
#1 Sacrificing
Helping others and growing a business requires you to make regular sacrifices. We all intuitively know this and understand that growing anything substantial will take time, effort, and some capital. However, until you have traveled the journey yourself, either by yourself or with the help of a partner, it will only be something you have heard about secondhand.
Ways to help your business:
- Vision boards: Cheesy or not, they help when you see them multiple times per day.
- Hang around other like-minded investors. Join one or multiple real estate investor clubs nearby. Perhaps start your own.
Related podcast: Starting your own REI club.
If you’re willing to sacrifice for the next five years will be able to do amazing things. Keep in mind that you should be achieving profitable deals right out of the gate.
As you watch and listen to Ian and Daniel’s podcast you will hear the sacrifices, they make to be accountable to themselves, each other, and their business.
- 👍 SACRIFICE your TIME hanging out with friends IN ORDER to meet with park managers and other mobile home sellers to build your successful business.
- 👍 SACRIFICE your EGO IN ORDER to be a beginner and begin to master something new.
- 👍 SACRIFICE your ENERGY and personal time IN ORDER to guerrilla market your business and service to build your successful business.
- 👍 SACRIFICE your FAMILY time IN ORDER to close with buyers or sellers and build your successful business.
- 👍 SACRIFICE some PROFIT IN ORDER to keep the deal moving forward and make the seller happy.
Everyone that you see who is successfully investing in multiple mobile home properties is making constant sacrifices. Keep in mind that the sacrifices are definitely a good thing… No pity is deserved here. If you are reading these words and are not yet a active mobile home investor, then you have more sacrificing to do. We all do.
#2 Multiple purchase strategies to help most mobile home sellers.
Having multiple strategies to help each mobile home seller is something we talk about on this website often. Mobile home sellers often times have various and/or complicated issues going on. Depending on the different moving pieces, your purchase offer and/or exit strategy will likely vary.
Purchase strategies when…
- ⭐ the mobile home has a title problem, then…
- ⭐ the mobile home needs to be removed ASAP, then…
- ⭐ the mobile home’s lien must be paid off prior to closing, then…
- ⭐ you are starting with limited capital but you still want to close big deals, then…
- ⭐ the mobile home park manager does not like you, then…
- ⭐ the mobile home needs way more repairs than you are comfortable with, then…
- ⭐ the mobile home seller is out-of-state, then…
- ⭐ the entire mobile home is in another state, then…
- ⭐ the mobile home also includes land and an underlying mortgage, then…
- ⭐ it’s the winter months but there seems to be a very good opportunity, then…
- ⭐ the mobile home is in a park location you are not familiar with, then…
- ⭐ the mobile home neighbors are terrible neighbors, then…
- ⭐ the mobile home seller does not need all their money up front may consider payments, then…
- ⭐ you temporarily don’t have the knowledge or resources to know what to do, then…
Depending on the scenario, have a way to help each seller and never spend any more money than needed.
It can absolutely be scary out there for a newer mobile home investor. Aim to educate yourself with websites like this one, and other free blogs, vlogs, and podcasts talking about investing in real estate or flipping mobile homes. Ideally every mobile home question you have should get an answer. Make sure you have people to ask your investing questions too. Each answer you receive may spark additional investing questions too, this is natural and normal. Every answer to your questions makes you a more knowledgeable and self-sufficient mobile home investor.
#3 Working with your BFF.
Daniel and Ian have been friends since high school, and they are definitely making their business relationship work. When asked about their secret, they both say “communication is a big key”. Do not just communicate about the good things, but also 100% talk about the uncomfortable topics.
After 70+ mobile home deals and counting, this best friend partnership has no plans of slowing down or stopping. It is only now they are getting to more complicated deals, multi-deal packages, and tax sales to ramp up their mobile home investing business even more for 2024.
Daily questions are normal. Every mobile home seller and situation can be very different. Mobile home investing is very different from traditional house real estate investing. If you are actively investing daily, you should have new questions about mobile home investing, how to strategies, deal reviews, where to start, paperwork, due diligence, and much more. As you move forward with your mobile home investing business, please comment below to ask questions.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
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4 Comments
Amy Sanchez
November 30, 2023Hi guys,
I need to send this video to my children. Keep it up guys. I read your article on advising how to transfer title in N. Carolina on a mobile home. I still need clarification on something, if you would please assist me in resolving my question.
The mobile home I’m purchasing, is in an established mobile home park. I have been accepted through the park’s application processes, so that’s all good. The seller is an individual who has an existing balance on his loan for the mobile home. My concern is, that if I pay him in full for the home, because it’s a cash purchase, and he wires the payoff amount to his lender on that same day, but he will not receive the title for possibly 3-4 weeks, how do I have ownership or proof of ownership at the time of purchase?
If he doesn’t have a title that is in his name, until the lender processes the payoff on his loan, and mails him the title in his name, what do I have that states I am the owner in the meantime?
Thank you for your assistance in helping me understand the process.
Sincerely,
Amy
John Fedro
December 9, 2023Hey Amy!
Thank you for reaching out and connecting. Additionally, thank you for your detailed message as a certainly does help me understand your situation a bit better. This is a very good question. You’re right to be leery of trusting the seller to not simply abandon you and sell the home to somebody that removes it off of the property. There are other situations that put our buyer or seller in that similar situation of needing to “trust someone”. For this reason it may be helpful to have a third-party trusted person such as a real estate title company, closing attorney, contract attorney, notary with an office, etc. to read contracts, take documents, collect funds, and disperse everything accordingly. In my experience this will cost you roughly $500-$1500 for an hour or so of an attorney’s time. Definitely try to aim towards having someone perform this personal property closing for closer to the $500 range or less. I would encourage you to have a purchase and sale agreement written up between you and your seller. You will also want to take a state approved power of attorney form and have the signed and notarized by the seller. They should also give your attorney a bill of sale signed and notarized. Make sure you understand the banks pay off process. On a three way phone call with the seller and the bank make sure the bank knows the mailing address of the satisfaction letter will be the attorney’s office. Once the attorney receives the satisfaction he to the power of attorney may be used or the seller may go and to sign off on the title and also collect any equity/profit they have coming to them. Hope this helps and makes sense. There definitely are follow-up question so let me know if you have any mobile home related questions moving forward. Keep in mind that some states and banks work with electronic liens that will automatically release within 24 hours allowing the homeowner to sell the home as it will show free and clear in the state system. Hope this helps. Feel free to keep in touch moving forward. All the best.
Talk soon,
John
alaina
December 11, 2023hey John,
I live in Alabama and I bought a 1999 mobile home and had it moved to property in my name. I have hooked it up to utilities that are also in my name. I was given the title, but it was lost when my sister’s house flooded. I do have the VIN written down though. I contacted the MVD and they said they do not duplicate copies of titles older than 1999. I had not registered it in my name yet when the title was lost because it had not been moved yet, so legally I have no proof of ownership. I contacted the couple I bought it from multiple times to see if they would do a bill of sell and they won’t answer me back. I have remodeled the trailer and am wanting to sell it and the property. Do you know what I need to do this? Is there still a way for me to register it in my name without the title or a bill of sale?
John Fedro
December 11, 2023Hey Alaina,
Thank you for reaching out and connecting. I really regret to hear that you are in the situation. However, in my experience this is definitely not too negative of a situation. However, it may be difficult to borrow money and refinance against the mobile home or be able to sell the mobile home and/or land to a bank approved buyer. This is because most banks will want a title even if it is technically not required in the state. Additionally, it will be difficult to move this to another state as they will want to see the current title before it is transferred into this new states title. In short, you are definitely limited on what you can do with the property now. However you absolutely can reside there in peace and sell it to a cash buyer in the future.
It would be ideal if you had a title, however like you mentioned in your comment having a signed and notarized bill of sale will be the next best thing. In fact, in Alabama that is the paperwork to transfer ownership between one party to another. A signed and notarized bill of sale when the mobile home is after 1999. You may be able to use a service such as skipgenie.com to find the sellers current address and go see them in person if needed. Keep in mind that these past sellers will likely never come back to take this home from you. Additionally, your name should be registered with the local tax department is paying the property taxes for this mobile home. All of this will support that you have been living there and the owner for a number of years.
I hope that this all helps and makes sense. If you have any follow-up questions or concerns big or small never hesitate to reach out anytime. All the best.
Sincerely,
John
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