Welcome back to another episode of the Saturday Strategy mobile home investing lesson. This week and future weeks will cover new strategies and topics related to your mobile home investing business. In this week’s video we are talking about having maximum effectiveness with every qualified seller. Last week we talked about creating a game-plan for advertising your “We Buy Used Mobile Homes” message to homeowners, motivated sellers, and not-so-motivated sellers.
Once you start receiving calls coming in you may want to make certain you can be as helpful as possible.Aim to be a 1-stop-shop. The more people you can help = The more value you can create.
Pro Tip: Aim to make money every time your phone rings with a seller. This means do the deal yourself, learn more creative ways to structure purchase offers, partner with other investors, bird-dog the lead, wholesale the home, or something different.
How to maximize yourself and help more sellers?
It will help greatly to know several mobile home purchase methods, techniques, strategies, and more to purchase homes, create value, and lessen debt from a sellers plate. It is our goal to have a solution or 2 for every seller we encounter. Aim to be ready to help and consult with all sellers. In most situations there are multiple directions and offers we can give to sellers to help them.
Pro Tip: Making multiple offers to sellers may help them decide to sell to you. Also, appreciative sellers often recommend your services to their family and friends if needed.
Learn multiple ways to solve Mobile Home seller problems.
Always be asking Investors, “What’s the most creative mobile home deal you have successfully closed? Please explain.” (Learn from others.)
Build a big-network of active investors and handymen that specialize in different niches that you do not specialize in. (You may partner or wholesale later.)
Be an investing-education sponge. (You don’t have to be an expert right-away, just make sure you keep learning about creative strategies through books, websites, groups, and mentors.)
Steps to Get Started Taking Action Building Your Knowledge Base
Read through this website and ask any/all questions. More questions lead to more answers, which lead to more questions, and so on. More answers = More clarity.
Subscribe to our mobile home investing Youtube channel here.
Listen to our past Podcasts here.
Join local real estate clubs or meetup groups near you.
In conclusion every mobile home opportunity is a unique property. Every mobile home seller and buyer is typically in a unique situation. There are usually no cookie-cutter approaches or purchase offers to make with mobile home sellers. It is best to fully understand exactly what you are making an offer on, buying, who you are working with, and the correct steps needed to safely move forward in any win-win transactions.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
Related videos:
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Hi John,
Great video. How can I see the first week video on advertising?
Hi Ed,
You can find the link right on this page. It says, “>>Click here for last week’s Saturday Strategy Newsletter<< ". Best, John Fedro
One does not want to make to low of an offer to alienate the seller. On the other hand, one does not want to offer more than necessary. So how much to offer the seller is the question? I have heard that the first one to mention a number looses.
Hi Bill,
The saying, “The one that offers the price first, loses” has always been accurate in my dealing.
Many investors think about negotiations as “THE SELLER VS. THE INVESTOR”. In reality it should be “THE MH SELLER + YOU = Sell the seller’s home for win-win price/terms”. With that said if you position yourself correctly you will almost never insult a seller AND you’ll get them involved in the deal making process too.
Truly this business is not only a real estate business, but more importantly a People Business.
Thanks for commenting,
John
Their is one park that is VERY picky about who they let in. Selling in that park is always confusing because you really need to account for holding that home for a number of months to find the right buyer.
So it is confusing because you need to offer them a price without offending them, but letting them know that the park is picky.
Hi Chris,
You and I both know that if you’re in the MH business inside parks then occasionally there will be a park that only approved applicants with 650+ credit scores, that must make 4Xs the lot rent payment per week to move in, etc, etc, etc.
Here is what my members and I do: We have had good success in the same situation by telling the seller that,
“We love everything; the home, the price, and the term. We really want the property HOWEVER we will not overlook the fact that the MH is hard to sell because of the park management and their screening criteria. This is not your fault Mr. Seller but it does impact the offer we have made to you. You know this park is tough to get approved for correct? (Let the seller say yes or no) With that said Mr Seller we are willing to split this holding costs with you for a maximum of 6 months. Now it is our goal to sell this home ASAP but if it takes 3 or six months to sell we will split the park lot rent for these months. Here’s how it works, we already agreed to a price and you will receive all monies owed to you at closing LESS six months worth of lot rent payments divided by 2. Now if we sell the home in 1 month you get back 5 months worth of half lot rents totaling $X, however if we market and market and don’t sell the home for 3 months we will only pay you the remaining 3 months of half lot rents. Does this make sense Mr Seller? (Wait for them to respond)
Hope this helps you turn a negative into a positive by disclosing your objection is not the home but rather the park approval process and encouraging the seller to share the expense. Works like a charm as “honesty is the best policy”.
I hope this helps.
Best,
John Fedro
Hello John,
Great video and great question! However, I happen to be on the opposite side, as I am a seller in a buyer’s market outside the USA. So my challenge is how can I get negotiate the best price from a prospective buyer?
Thanks for your advice,
Paul
Hi Paul,
Great question. You will need to decide if you haven’y already if you would like to sell and recieve all your cash up front (from your buyer) or if you are willing to accept monthly payments from your tenant-buyer, or both.
Additional things to consider: If you sell for payments you will receive a down-payments and will need to oversee the buyer in your home is making payments to both you and the park, and keeping the home in good repairs up until you have made all your money.
Now that you have decided what buyer to go after you should market online (craigslist, local newspapers online, etc) and offline (newspapers, yard signs, let park manager know, etc). Make sure to really get the ad out there so that everyone can see it. A big mistake many sellers make is to limit there advertising, this slows and narrows your selling opportunities.
Once you start getting calls coming in be firm and make sure to get dozen peoples opinions before lowering the price or give extra concession.
I hope this helps and let me know if there is something I missed or you have followup questions.
Best,
John Fedro
Great info John
Thanks Clinton! Glad you received value.
Best,
John Fedro
Hi John thank you for all your hard work it teaching every one who want to learn I sure get a lot if great information from you thank you again. John I have a question for you would you or any one else be interested in buy note on trailer.. I got some 2 bed and 3 bed room trailers some on private land most in parks Would you like to be put on my mailing list when i get a new note Lets talk my email [blocked by admin] Great Job keep up the good work
PS would you like to buy a MHP 88 spot 55 filled and a nice 3 bed house with it office /home for manager. call me [blocked by admin]
Hi Joseph,
Welcome. I am so glad that you have received value from this article and thank you for the kind words. It is a great feeling to be able to help others make a better life for themselves. I am happy to help. If I wasn’t doing this I know I wouldn’t be living up to my full potential. Thanks again.
In regards to your questions I do sometimes purchase notes. I will aim to contact you so we can discuss these note and the MHP for sale further.
Thanks for reaching out to me on this one.
Talk soon,
John
Always great information,
Hi Geoff,
Thanks so much for reading and commenting. Happy to help. I hope this has provided you with some useful information.
Talk soon,
John
Hi John
this information is really great as is all the information you put out there. I am definitely going to absorb it. I see that my cousin wrote a comment on July 13 2013. His name is Joseph Shanabarger I really like him and I am glad to see both of us are listening to you
Thank You so much
Jim
Very good info as aways
John,
I live in a small park and there is a 2/1 home for sale. It is a 1964 (what?) and the owners are from Costa Rica and wishing to move back in the next several months. They are asking 6k. It is soild with good floors, laminate. The Kitchen will need some cabinet doors and some touch up. It also has a real wood burning fireplace, can you believe that? I have some concerns about some ceiling areas that are sagging a little and some rotten paneling around the doors. The area we are in is desirable and I know the park manager personally since we live here. I think a retail price would be 8-11k. Couple questions, is this entirely too old to take a chance on or are the numbers too low to make this work? My guess is, and that’s all it is, is there is a little money to be made and lots of to learn from this deal. How can I test the market for buyers, we are in Alabama and have a lot of Hispanic home owners and they usually have cash of most of it any way. I am very new and am not sure what to do next.
Any comments would be greatly appreciated.
Dave
Hi Dave,
Thank you for reaching out and connecting. I originally wrote you a big long email reply based on my belief that you “owned a small park”. However right before I was going to publish my comment and reply to yours, I reread where you mentioned that you “live in a small park”. The reason I mention this is because if you owned the park then your #1 priority would be to get the lots filled with happy homeowners. You also would not have to pay a lot rent fee and fix this home or sell it in its current condition. However, since you are a resident in the community and this is an older model two-bedroom home, I would encourage you to pass for your first deal. Perhaps if you could purchase this home for less than $2000 it might be more of interest. Please keep in mind I obviously have no idea what this mobile home looks like and based on the age alone it may be profitable if you purchase it, clean it, and resell it. Please feel free to send me any pictures of these homes if you wish. However there is likely an easier home that will sell quicker and for a more substantial profit for your first deal. If I was working with you personally I would encourage you to definitely make an offer to the seller however make sure you are able to recoup all your invested capital back within six months or less due to the age. With regards to making sure there are buyers I would encourage you to know exactly what is for sale in your community and all the communities nearby. Also understand will local apartment rent runs as this will be semi-comparable to similar sized mobile homes you sell on payments. I hope this helps and starts to point you in the right direction moving forward. If you have any follow-up questions or concerns please never hesitate to reach out any time.
Talk soon,
John