reverse bandit sign mobile home investor pic

Networking: Reverse Bandit Signs

Welcome back,

It is no surprise that one of the first investing building-blocks I teach a newer mobile home investor is marketing and lead generation. The premise is simple…

  1. To dominate your local area.
  2. Network with every other investor and other key players.
  3. Form mass alliances.

Since you only have 1,440 minutes in every day you must learn how to start duplicating your time.

You are powerful!

Still, you only have a limited amount of free-time for marketing and available-cash to begin investing with. This is especially true while first starting out. Every virgin mobile home investor is pushing themselves on shear will-power, daily dedication, and faith alone.

If you have yet to complete your first mobile home cash-flow deal then you know exactly what I’m referring to. I can tell you, “Everyone that is successful has been here before you. Continue to persevere and focus ahead.” It is for this reason I want you to get as much help as possible and continue ahead with every realistic and legal advantage.

I call this strategy for creating awesome win-win relationships the Reverse Bandit Signs strategy.

  • Q: Who is hanging local “We Buy Houses” or “Sell Your House in 7 Days” signs in your town? (If applicable)
  • A: Other local investors who spend money and time on advertising to find motivated real estate sellers.
  • Q: How can I benefit while adding value to these other investors too?
  • A: Next time you see a bandit sign call up this investor and introduce yourself. Be direct and be friendly. Here is my personal script below,

“Hello. My name is John Fedro who am I speaking with?” Investor says his/her name. “Hi Mary I am calling because I saw your “We Buy Houses” sign located on the corner of Dale road and Highway 132 and I wanted to introduce myself. I too am a local real estate investor that mainly buys and sells mobile homes in and out of parks and manufactured homes property in and around the area. I noticed that you are obviously doing deals so I wanted to ask what types of homes you’re interested in and perhaps I can send some leads your way. I do marketing as well and wanted to establish a relationship with you and perhaps throw some business your way.” The investor will usually talk now. “Curiously do you ever purchase used mobile homes or get any of these types of leads from your marketing? If so what do you do with these leads currently? We pay generous referral fees at closing. Do you have any unwanted mobile home leads currently that you aren’t following up with? (Always exchange numbers and follow-up monthly.)

*Be ready to be asked how much do you pay for your referral or assignment fees.
**Be ready to be asked if you have any “available” traditional homes leads you can send this investor’s way.

If there is one area where most investors need help it is to begin networking with local investors, repossession lots, dealers, Realtors, park managers, etc. Always have your business card ready and be ready to tell folks in one-breath exactly what you do, how you can help, and what leads you will pay for.

Message to everyone: Let F.O.C.U.S. stand for Follow One Course Until Successful.

Always remember Real Estate Investing is not a lone wolf activity – Real estate investing is a group activity. Always encourage everyone to contribute, make new friends, and be active in your local investing circles. Constantly be adding names and numbers to your business Rolodex and remember to follow up.

Love what you do daily,
John Fedro
[email protected]

 

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6 Comments

  • Jo Flannen

    Reply Reply September 6, 2012

    This is the best marketing advice I have heard in a long time. I really appreciate the honesty and foresight you provide in your posts. Multiplying my efforts sound important to my future success and speed. I do have one question if you could help. What and how much do you give for finder fees on homes you close on? Ty in advance, Jo

    • John Fedro

      Reply Reply September 7, 2012

      Hi Jo,

      Thanks for your kind words. Concerning your question about a bird-dog fee for the other investor, I say to make the other investor happy. Most states has a maximum fee of $50-$100 you may pay a non-licensed real estate professional to help “find” you a home. However this is why I will include the bird-dog investor in on the PSA and the assign the deal to my Trust for an assignment fee of between $500-$1,000 if I close. This is paid up immediately at closing or in payments to the investor (due to our profit being made in payments in some cases).

      I hope this make sense? If not let me know and well get to it figured out.

      All the best,
      John

  • David R

    Reply Reply September 7, 2012

    This is great stuff. Thank you for the script and will be using this starting today. I will be getting started with your program later this weekend and can’t wait!

    Looking forward to working together,
    David Ross

    • John Fedro

      Reply Reply September 7, 2012

      Sounds great David. When you get started email me directly so I may keep track of your progress and give you real-time feedback.

      Talk soon,
      John

  • Corey Crawford

    Reply Reply October 23, 2012

    This is great marketing advise for all investors. I specialize in Southern California and know the mobile/manufactured industry inside and out. I can tell you that without a dealers license most parks will not let you purchase a mobile home to flip without you living in the home as your primary residence. Most of the parks in this area do not allow renting of the homes, they must be owner occupied.

    I just want potential investors to be aware of this information the most people don’t realize.

    Regarding referral, I give a $1,000 referral fee at close to anyone that gives me a lead that turns not a sale.

    Thanks for providing good information.
    Corey

    • John Fedro

      Reply Reply October 23, 2012

      Hi Corey,

      Thanks for the input and kind words. Excellent, In which way do you specialize with mobiles/manufactured homes?

      In California and the rest of the country a majority of parks will not allow renters or even subleasing. When we do find a rare park that will allow renters we often will rent the home for tax purposes, however this is a rarity.

      Concerning a dealers license it has been our experience that most parks have been accepting to our purchase/resell arrangement without a licenses even though the state of California asks you obtain one before purchasing with intent to resell for profit. I am proud of the many new dealers in California that are making money because of this blog and subsequent material. However, California investors reading this be aware that we are heading inland (away from coast) for more conservatively priced homes/parks and doing great. Thanks again Corey.

      Best,
      John

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