Welcome back,
My world changed forever one afternoon when I purchased my first mobile home inside a park over 10 years ago. Nine months later I quit my 2 jobs and lived solely on my monthly cash-flow. I am not saying this process was easy, however the struggles and successes where all worth it.
Mobile Home Cash-Flow Video 101
If you plan to invest in mobile homes safely and quickly, plus you intend to do this for years to come then you should understand this manufactured home business better than the back of your hand.
If you have any mobile home related questions please do not hesitate to reach out.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
Related Used Mobile Home Profits: Dumb It Down videos:
12 Responses
Hi John,
I appreciate the no nonsense style videos and the clever beginnings. Question: Who pays the lot rent in the example above?
Thanks again in advance and I also signed up for your webinar. Looking forward to it.
Irene Pikket
Hi Irene,
Glad you liked them and thanks for the support! The buyer always pays you the lot rent and you pay the park, at least for the first 2 years then you can trust the buyers to pay the park on time if they have paid you promptly for the previous 2 years.
Best,
John
This sounds great, but how do you get around the”transfer” and “approved for park” rule when so many people do not qualify or if I can get a great deal and buy it cash, but the park won’t allow me to resell since I am not living in it or qualified and they want the rent while it is empty?
Hi Scott,
Thanks for the kind words. Many of the buyers that call you will be unqualified, some will. Don’t even waste the park manager’s time if you know the folks your sending over to walk-thru your home won’t be approved at the park. You DO transfer the home day one to the buyer. Most parks will not allow you to rent OR even rent to own. I teach to use a personal property trust when investing in parks.
And concerning your question about if you pay cash then a park will not let you resell the home or rent it. If you pay cash for the home MAKE CERTAIN YOU ARE approved at the park or at least the manager has cleared you to buy and sell within his/her park. Once you buy you will always be able to resell. If you don’t speak with the manager prior to investing inside the park you have just insulted the manager and will likely not do much followup business in that park.
Hope this helps.
best,
John
Hi John, I too appreciate your videos – Thank you… Did I miss something though? If I have cash flow of $300. am I then paying the seller $250 for the next 20 months leaving a net cash flow of $50. (plus the $3-6k move-in fee/down payment).
Also, does the park owner insist that title be in buyer’s name immediately or would they be ok with a delay and is there any benefit to you to a delay? John L
Hi John,
Most mobile home parks will want to see “proof” the home was sold and not simply rented. What each park “deems” proof will vary widely. I teach to use a mobile home personal property trust in order to transfer rights and stay protected from the buyer not paying; this is sufficient proof in all but 1 park I have ever invested in. Whatever you do my advice is to keep the title in your possession until the buyers have completely paid you in full for the home.
And no you are not mistaken… If an investor does not have “cash” to pay the seller for their home then the money must come from the profit cash-flow on the mobile home. Basically we let the home pay for itself. The example above is for $250 a month which is the tops we’ll likely give a seller as a monthly payment. The payment can be monthly or yearly but long story short, if you are structuring payments with the seller to pay the seller their equity then your cash-flow will be stunted for the first “X” months until they are paid in full by you. Then once the seller is paid off your cash-flow skyrockets.
Hope this helps.
Best,
John
John,
How much are you finding homes for now a days? I am in the CA area and would like to start this very much. May God bless you.
Hi Lara,
Thank you for your kind words. Concerning mobile homes located in pre-existing parks we always pay under $9,000. Many times this will be for less and/or including payments. Every case if different and in your area there are plenty of mobile homes priced over $60k in parks. Stay away from these over priced deals. The formula I use helps attract relationships with motivated sellers. Keep up with it everyday and you’ll see success.
Best,
John
p.s. Looking forward to having you on board.
when i buy a mobile home cash do i just take the titile and switch it into my name like a car or do i have to get a lawyer to do it and does the previous owner have to be with me when i switch it over?
Hi Cassie,
If you are not an investor then simply using a Bill of Sale along with your Title(s) will be enough to transfer ownership via Title(s) to the new owner. The seller will generally NOT need to be at the DMV, DOT, or other agency that transfers Title in your state. The new owner (buyer) will need to be present.
If you are purchasing for investment reasons and/or plan to resell for all-cash or payments then you will want to protect yourself with the use of a Personal Property Trust as new owner.
Hope this helps.
Best,
John
p.s. In some states additional forms will be required. If you tell me the state you’re mh is in I can tell you more.