FAQs

Frequently Asked Questions

 

General Mobile Home Questions

1. What is the difference between mobile homes, manufactured homes, and module homes? +

 

At first glance mobile homes, manufactured homes, and modular homes appear to look alike however there are both subtle and obvious differences inside and out between these 3 kinds of homes that investors should be very aware of. Whether you are looking to move into a new home of your own or are ready to invest in your next cash-flowing property the below information will help shed light on the homes similarities and differences.

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1. Mobile Homes:

Mobile home is the term used for manufactured homes produced prior to June 15, 1976 when the HUD new safety code went into effect. Mobile homes are prefabricated homes that are largely constructed in factories then transported to a site where it will reside temporarily or permanently. Mobile homes may be located inside a mobile home park or on private land. These homes have steel I-beams which run along the underside of the homes. These I-beams may rest atop concrete blocks, wooden pillars, metal stands, or a permanent concrete foundation for it's stability.

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2. Manufactured homes:

Manufactured homes are mobile homes built in 1976 or after. These homes are under federal building codes administered by the U.S. Department of Housing and Urban Development (HUD). Like mobile homes, manufactured homes are built and transported by flat bed trucks in 10 to 16 foot sections and joined at the site where they will reside temporarily or permanently. After the manufactured homes are connected to power and utilities a local code inspector must review and inspect only those utility connections and not the building structure itself. Mobile homes and manufactured home loans may be guaranteed under FHA guidelines however are difficult to obtain based on the home, location, down payment, and applicant's history. These loans are typically 20 years or less in length.

John Fedro 147892

3. Modular homes:

Modular homes are the pinnacle of factory-made housing. Unlike mobile homes and manufactured homes, modular homes are built to the same standards as traditionally built single family homes but without the time or physical energy needed to build a traditional home from scratch on-site. Construction time and costs can be drastically reduced by as much as 50% compared to traditionally built homes because modular homes built in factories need not worry about material damages or work stoppage due to rain, wind, or snow. Modular homes are built to such standards that when these homes are shipped from the factory on flatbed trucks and joined a local code inspectors must inspect and approve of all utility connections and building codes in and outside of the home.

Singlewides, Doublewides and Triplewides

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Things to remember:

1. Modular homes can look indistinguishable from traditional frame built homes once it is completely attached. Modular homes can be multi-stories high. All modular homes rest on a solid slab foundation once complete.
2. Manufactured homes are mobile homes 2.0. They are built to higher construction standards than their predecessors built prior to 1976. These homes are typically joined and installed on a permanent concrete foundation or movable block pillars.
3. Mobile homes are closer to the original movable home. Like manufactured homes, two, three, or more single units can be joined to create double-wides, triple-wides, or ________-wide homes.
4. Every property is different from situation to situation. Homes only a few years old may be more rundown and depressed than homes 30 years old. Like anything else it is all about how it is cared for and maintained over the years.

2. How do we invest safely in Mobile Homes with the Dodd Frank Act and Safe Act? +

In this discussion we are going to briefly outline the Safe Act and Dodd Frank Act, and discuss how you may choose to safely move forward with your mobile home investing business in easy to understand language. Please read this post in full and all subsequent disclaimers.

In short: The sky is not falling, but you do need to protect yourself.

The reasons for this article are to inform, pose questions, and bring clarity to your mobile home investing business with regards to the new and pre-existing rules concerning reselling mobile homes to end-user buyers with seller held financing.

Seller Held Financing:

A real estate agreement where financing provided by the seller is included in the purchase price. It is also known as a purchase-money mortgage. Seller financing is a mortgage given to the seller as part of the buyer's consideration for the purchase of the property and is delivered at the same time that the property is transferred as a simultaneous part of the transaction.

The advice given below is not to be considered legal advice. This article has been compiled from discussions with multiple State's Banking Relating Organizations, Manufactured Home Departments nationwide, conducting simple online searches, discussions with real estate attorneys and others that know much more than I do about these new laws. Please preform your own diligence before proceeding forward.

Let us first have a basic understanding of these new Acts as they apply to your mobile home investing business. I say "as they apply to your mobile home investing business" because these Acts encompass many changes including; seller financing, conventional financing, lending, banking regulations, reporting, home ownership, screening buyers, derivatives, commodities, automobile financing, and much more.

  1. Seller financing restrictions do not apply to commercial real estate sales.
  2. Seller financing restrictions do not apply to investment property that is sold to another investor not living in the home.
  3. Seller financing restrictions do not apply to properties with more than 4 units, such as multifamily properties.
  4. Concerning the Safe Act: Most states have set a diminimus provision that will allow for up to 3 owner financed sales per 12 month period that may be preformed by you without a loan originator. There is strict criteria that the home and buyer must meet for the financing to be legal. If you are not an investor and selling your own mobile home proceed as instructed here.
  5. Concerning the Dodd Frank Act: Most states have set a diminimus provision that will allow for up to 5 self-underwritten owner financed sales per 12 month period. These loans must follow the 8 criteria found here (see pages 14-15).
  6. Using an approved loan originator is a strategy that is legal to negotiate, underwrite, and create your notes and secured mortgages. This may cost between $99-$2,000 or more per sale.
  7. Fines if caught selling homes illegally with secured Notes and Mortgages/Deeds of Trust will be a full refund of the past 3 years of payments received from this tenant-buyer.
  8. These new laws took affect January 10th, 2014. Notes created prior to this date do not apply.
  9. All Notes and Mortgages/Deeds of Trusts that hold the subject property as the collateral of the debt fall under the scope of the Safe Act and Dodd Frank.
  10. Personal remark: Attorneys will be looking to work with and help all unhappy owner-financed owners. Please protect yourself and only sell homes through legal methods.

Please realize that these Acts are written on thousands of sheets of paper.The below words only skim the very surface of these rulings. For a complete understanding I encourage you to read the Acts yourself.

The Safe Act:

An Act intended to provide uniform licensing standards nationwide, as these licensing standards had been non-uniform from state to state for the past 20 years. It was also designed to create a comprehensive licensing database so that all relevant information on Mortgage Loan Originators (MLO) will be centralized and publicly available.

The Dodd Frank Act:

An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.

word art dodd frank

Now that we have an extremely brief understanding of the general reasoning for the Acts and what purposes they were created we can begin to discuss what these acts mean for us as successful mobile home investors, what these laws prohibit, and how to proceed.

Let us first discuss you buying an investment mobile home with monthly payments from your seller:

This is perfectly legal and is not affected by the acts as you will not be living in the investment home yourself. Proceed as usual.

Let us next discuss you selling your investment mobile home to an end-user via monthly payments inside of a mobile home park:

Selling a mobile home inside a park through monthly payments to an end-user that will be living in the mobile home is acceptable with very-very specific conditions, these conditions require you do not fall within the scope of the Acts. When it comes to selling a mobile home inside a park with payments it is going to be vitally important to not have the subject mobile home as collateral for the loan. The Acts pertain to secured notes only, for now. Not creating a mortgage or deed of trust to secure the home with the financing will leave you with an Unsecured Note. By not having collateral and therefore no recourse to foreclose it may seem as the investor is taking near 100% of the risk. For this reason it is very important we use Personal Property Trusts, Land Trusts, and specific additional supporting agreements.

dood frank def of loans

Is it possible to use a Mortgage Loan Originator when reselling your mobile homes in a community? A licensed and Safe Act approved Residential Mortgage Loan Originator (RMLO) can negotiate, approve, underwrite, and help create your secured Notes, Mortgages, and/or Deeds of Trusts to secured your interest. The cost associated with this depends on your area and each specific RMLO. Costs I have seen range from $99 to $2,000 depending on the services offered. After the 3 owner financed sales per 12 months sold to end-users with secured notes you should only proceed if you are licensed. If you are unlicensed and proceed with more the 3 transactions this may result in fines if caught, this is relatively new and untested.

Is it possible to have your seller create a note/mortgage to your buyer and then you purchase the note/mortgage for the sales price of the home? Does this make sense? If not see the example below. This technique is not advised by me or this website. While this would seemingly not violate the Acts as the homeowner is the one originating the note/mortgage this method is impracticable in real life. If this was the case the seller would often undercut you and sell directly to the tenant-buyer, also the tenant-buyer would now know your purchase price. In addition we often times find our buyers days or weeks after the original sale of the home. This impracticable method would restrict us from purchasing the home with seller held financing. Additionally the end-user buyer will need to meet strict criteria to ensure they have been verified that they can pay back the entire note. If the tenant-buyer can not pay back the loan you may be held liable for holding a risky loan and subject to fines.

Example: The seller and you agree to a purchase price of $5,000 cash for the seller's mobile home in a park. You find a tenant-buyer that is willing to pay $15,000 with $2,000 today and monthly payments of $300.00. The seller then creates a Note and Mortgage for the tenant-buyer and all parties agree. Once the paperwork is signed you purchase the $15,00o Note from the buyer for the agreed upon $3,000.00 cash. In short this method is very impracticable.   

Can I just simply Rent or resell my used investment mobile home for all cash or bank financing?

Good thinking. However it depends. Many mobile home parks will not allow subleasing or renting within their walls. In addition many buyers will not have $10,000-$40,000 to purchase your used mobile home all-cash. Many banks have strict requirements for lending on mobile homes inside parks and attached to private land.

Let us next discuss you selling your investment mobile home to an end-user via monthly payments while the mobile home is attached to land you also own (AKA not in a mobile home park):

In this situation an approved residential loan originator should always be used to negotiate, underwrite, and help create these loans and secured mortgages/deeds of trust. It is crucial to have a secured loan because you will always wish to have the conventional ability to foreclose on the tenant-buyer should they not pay your Note. It is my suggestion that you almost always use a Lease Option before you sell your mobile home on land with owner financing to ensure your buyer is a low-risk buyer that pays on-time. After a predetermined time you may now utilize the help of your Residential Loan Originator to negotiate, underwrite, and help create the loan and secured mortgage/deed of trust.

Audio below: May not be available on tablets, listen on your PC.

John Fedro and Bill Walston discussing the Dodd Frank and Safe Acts
Listen to the recorded live teleseminar - Click here
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Conclusion:

Know the laws of your state. Do your own research and do not fall within the scope of these Act's jurisdiction. In addition make sure you understand how to properly screen your tenant-buyers to verify that they do have the ability to pay your desired home payments.

Do not hesitate to ask any follow up questions. I will be happy to answer what I can.

Love what you do daily,
John Fedro
support@mobilehomeinvesting.net

Online Sources:

Updated Disclaimer: I have received a few emails asking for free forms associated with selling your mobile home safely from a personal property trust like I mention above. In the article above we mainly discuss reselling your investment mobile home as an unlicensed RMLO investor to an end-user buyer who plans on living in your mobile home. While I covered a number of thoughts for selling and buying mobile homes safely with payments I did not discuss all the paperwork I use on a weekly basis to convey ownership and protect my investment homes. These undisclosed forms are legally very important to the transactions. These forms are located in the Mobile Home Formula online training program. Today's article is not a sales pitch for this product. Because members have invested for these documents I will not be making these forms and agreements available for free. I hope this make sense and is fair too all.

Updated Disclaimer: This website and the Mobile Home Formula training website strives to bring you the most relevant and up-to-date information concerning your mobile home investing business. The statement that only Notes with secured debts apply to these rules may not always be true. In reality overtime the Consumer Financial Protection Bureau that is in charge of these acts may change or update these laws to reflect unsecured notes. We here will keep you posted if this happens and suggest alternative legal avenues to sell your investment mobile homes with monthly payments.

This site is dedicated to providing the most up to date information. If you have additional information about these acts or see changes that you feel are inaccurate please comment below. We are all here to learn and grow together.

3. When should a mobile home seller remain in their property past closing? +

If you have been involved with real estate investing for more than a few months you likely have heard the famous rule to never (ever-ever-ever) allow a home seller to:

  1. remain in his or her home after closing.
  2. resell the property back to them.
  3. rent or lease the property back to them.

These rules come from experience after experience of investors getting burned by home sellers that remain in their old home too long and without paying the investor. In addition these sellers may even cry-wolf to a judge and plead they were taken advantage of by the same investor that helped them and purchased their unwanted home. These sellers-turned-deadbeat-tenants now can make your life difficult for a variety of reasons.

In today's article we discuss when this "never" rule can be bent with regards to helping mobile home sellers and purchasing investment mobile homes.

This article is not only written for mobile home investors but also any mobile home buyers looking for a good used mobile home to purchase and live within themselves. The below article comes from personal experience and the experience of those investors I have help to educate.

Let us start by asking a few questions.

Why do some sellers desire to sell their primary residence mobile home (on private land or inside a park) and then wish to remain in this same home? Reasons such as:

  1. The sellers were in foreclosure and wanted to sell. Now they want to rent their old home back from you.
  2. The sellers were in default to the park and need to sell. Now they want to owner finance their old home back from you.
  3. The sellers cannot afford their home any longer but still love the home. They wish to sell and rent/lease their old home back from you to remain in the home.

In all of these cases the home owner has proven to you and society that they cannot afford the property. No disrespect to anyone reading as almost everyone has over paid or over leveraged themselves at one point in their lives too - me included.

For all parties involved it is wise to not continue this "living above one's means" cycle. The mobile home sellers must leave and find a new property to call their home. A home that better suits their lifestyle and financial means will make everyone's quality of life much happier in the long run.

When can I allow home sellers to remain in their "just sold" homes after closing?

In my investing business and those of my members I have 3 criteria for this arrangement to meet:

1. The sellers have a reasonable need or desire for more time in the home before they leave.

Examples of "reasonable" reasons why a seller may need or desire more time to remain in their old homes are:

  • the sellers still need to close on their new home.
  • the sellers need to find an apartment to rent.
  • the sellers need to finish up packing.
  • the sellers fear multitasking and wish to sell before they move.
  • the sellers don't have any money, and need to sell first to re-invest in a new home.

All the reasons above are reasonable-reasons why sellers may need more time to comfortably move out of their home.

2. The sellers will accept your fair purchase offer, with the condition they remain in the home for "X" days after closing. 

As real estate investors one of our goals is to be a problem-solver. The more problems we solve, typically the more value we create. With regards to creating value it is often the more challenging scenarios that create us the biggest value. Value you create = Profit you create.

You = Mobile Home Investor = One Stop Shop for Motivated Sellers

While you do not have to agree to allow the sellers to remain in their old home past closing in order to purchase any property, "this concession" does give you a unique value other buyers may not have the luxury to provide. Understand that because you are not going to be living in the home you can allow the sellers to take a few days or weeks past closing to move comfortably.

When sellers sell to you they are not only buying your money with their home, they are agreeing to sell to you out of convenience. Convenience in a seller's mind equals the speed of the transaction, the ability for you to pull the trigger, the ability for you to qualify at a park, your contract experience, your professionalism, your ability to make the move as comfortable for the sellers as possible.

In short realize that giving sellers this "grace period" to leave is nearly as valuable as the cash you may be handing over at closing. Use this to help both you and the seller. Then pass these savings on to your buyer for a fast sale.

3. You "believe" the seller is honest in their desire to leave as agreed.

While this is completely subjective and I have too often been fooled by lying sellers and buyers; you should have no thoughts at all that these sellers will stay in your new investment longer than agreed or make things difficult for you down the road. This is always be a gut instinct.

Paperwork Protection:

Anytime we invest in a mobile home that has the seller remaining in the home and not handing over keys at closing we always sign a form called our "Agreement After Closing". This one page contract states important facts, such as;

  • reason why the seller is remaining in the home
  • for how long the seller can remain in the home
  • what condition the home must be in when they leave
  • the cash amount that is withheld at closing from the sellers until they deliver keys to you
  • the cash penalty that the sellers will incur daily should they remain in the home longer than agreed or the home is not left in the condition it should be in.

This agreement is signed by all parties. It is my advice to keep this grace period under 30 days. Your goal is to help transition a seller to his/her new property headache-free and worry-free, not to be a long term crutch.

The above 5 bullets are provided for you to create your own "After Closing Agreement" should you wish. The "After Closing Agreement" used by myself and members of the Mobile Home Formula is a part of a paid program. Out of respect to our members we will not be providing this agreement for free on this blogsite.

Conclusion: 

In an ideal world everyone would think rationally and logically before making decisions and everyone would do just what they have agreed to do. Unfortunately that is not the world we live in. People lie and people are greedy. Before agreeing to allow any home owners to remain in their old property perform your due diligence, protect yourself with proper paperwork, and know your exit strategy. If you feel confused or apprehensive about a current or future home purchase/sale that you are working towards do not hesitate to reach out.

4. Are mobile homes personal property or real property? +

 

 

.

This depends on a few criteria.

  1. Who owns the mobile home?
  2. Who owns the land?
  3. Is the mobile home included in the legal description?
  4. Does the mobile home still have a Title(s)?

If the mobile home and the land which the home sits on is owned by the same entity than there is a good chance the home is considered real property. However the home and land also have to be "legally joined" via a small amount of legal paperwork, a fee, the relinquishing  of the home's physical Title. This home must be secured to a permanent foundation. In many states the owners will have to hand-over the original Title(s) of the home to the state and the VINs or Serial numbers are added to the real property's legal description.

If the mobile home is located on rented land the home is considered "Personal property" similar to automobiles and boats. 

Exception: New Hampshire considers all mobile homes "real property" and therefore no Titles are available.

6. Can you discuss how you advertise to find mobile homes? +

Part 1:

Article preface: Please take the time and commit a few hours to learn our information, watch our video tutorials, and sign up for our Saturday newsletter. Once you review these videos and material please decide within yourself if the mobile home investing business is right for you? Depending on the supply of mobile homes in your will help determine your ability to stay busy with this business full-time or part-time. I recommend a 100 miles radius as your mobile home investing territory.

Today I made a quick video for you to emphasize the  importance of using your advertising budget wisely. Every dollar you spend on your business marketing is designed to either build our brand, result in a seller calling, or a buyer calling.

When marketing for Sellers we often times get only a moment to make a clear impression of how we can help. In that second the seller is looking at your marketing piece (I.e. letter, bandit sign, print news ad, flyer, email, website, business card, etc) they should know if they need your help or not.

Maximize your Seller-calls by advertising to buy "Homes" rather that ""Houses" or "Mobile Homes" or "Condos or "Other". Don't confuse or eliminate sellers calling by being too specific in your message.

Example below:

ambiguous marketing

Make certain to test your marketing and stay persistent in finding sellers and attracting sellers. This should be a daily activity, not just a once in a while thing.

Local sellers need your help now! Get your advertisement and message in front of their eyes. Marketing and advertising is one of the most important duties you have as an investor. Overtime these duties can be outsourced.

Part 2:

In the video below we are talking about the single most important aspect of your current (or future) Real Estate Investing and Mobile Home Investing businesses.

We're talking about Advertising Your Message.

The more mobile home owners and sellers you can get your message in front of the better. 

Quality Vs. Quantity: Maximize your advertising budget to only target high priority sellers.

It is far better to spend the money on mailing 100 "I want to buy your mobile home" letters to receive 20 calls from motivated sellers than to send 1,000 letters to receive the same 20 calls. This is the difference between knowing where, how, and when to find your sellers VS. blindly mailing to everyone with a mobile home. 

After you press "Play" on the video below wait 10 seconds for the Audio to sound better. You'll hear what I mean... After 10 seconds the skipping will go away.

After you press "Play" on the video below wait 10 seconds for the Audio to sound better. You'll hear what I mean... After 10 seconds the skipping will go away.

Main Bullets Points:

  • Advertising for seller leads is the life force of your investing business
  • Create a time budget for your business for the next 12 months (see below)
  • Outline a money budget for your business for the next 12 months (see below)

Time Budget:

Make a 12 month plan. Advertising is best used on an on going basis. No one has ever gotten rich from 1 round of Advertising. Be conservative at making your Time Commitments. Make sure that you can stick to these Time Based Advertising activities every week. In a short while challenge yourself to increase this amount for more leads.

Money Budget:

How much money do you have to set aside for advertising purposes? What are FREE methods to Advertise locally? What are expensive ways to Advertise locally? Using common sense and following the MHDMF will give you the ability to Advertise your message inexpensively at first, then once you have made a Profit you can start spending more money to REV-UP your lead generating business.

7. What is a preferred way to introduce myself to park managers? +

Welcome back,

If you are planning to invest in mobile homes within parks then you had better be ready to build rapport with mobile home park managers. A park manager or community manager is the "Gate Keeper" to you investing in any particular mobile home park or community. The more you understand how to help local Park Managers and your role as an Investor the easier this initial conversation will become. Keep in mind your service to the Park is to make your Park Manager's life easier, not harder.

Introducing yourself to Mobile Home Park Managers will inevitably give you 1 of 2 results, either:

  1. The Park Manager will invite you invest in homes within the park. You make cash-flow.
  2. The Park Manager will tell you to leave and not come back again. You are denied cash-flow.

The method outlined in the video above is a technique to be used to help "Open" the dialog between you and a mobile home Park Manager. Watch the video above and notice how the purpose of this introduction method is to establish in a park manager's mind that;

  1. You are like-able
  2. You have enough experienced to know the basics
  3. You are here today to help this Mobile Home Park generate more revenue
  4. You are important enough to be followed up with personally
8. How To Convince A Mobile Home Seller To Accept Payments? +

Welcome back,

Weekly I am approached locally or receive an email from a newbie investor that understands that getting a seller to accept monthly PAYMENTS for their sales price versus an ALL-CASH offer is very important if you want to continue buying mobile home properties in parks with little to no cash needed at closing.

The number one question that almost always follows this understanding is...

How do I "convince" a mobile home seller to agree to sell his/her mobile home to me for payments?

Steps to help a Mobile Home seller see ALL of his/her selling options:

  1. Establish communication with a FSBO mobile home seller.
  2. Pre-screen that the seller's mobile home fits your investment needs. If it does then set an Appointment to meet seller at property.
  3. Clearly list and explain ALL the seller's options to sell their unwanted home. Typically 3-6 strategies will be offered. This requires an understanding of properly investing in mobile homes - which will typically either come from A.) years as a mobile home investor B.) trial and error C.) working with an experienced partner or D.) educating yourself via the Mobile Home Deal Maker Formula.
  4. Sit with each seller and answer any questions the sellers may have. This typically will begin a round of negotiations if your offers are within a few thousand dollars of the seller's current action-threshold.
  5. Follow up with the sellers throughout their journey to sell their home. This will increase your sale conversion over time.

 

DON'T Do This:

Do not think that you will be able to convince a seller to accept a "payment offer" from you if you are belittling, forceful, a jerk, manipulative, and/or are trying to take advantage of the seller in anyway.  Think about this - you are dealing with logical sellers and the moment a seller feels that you or your company do not have their best interests at heart you have lost the deal and any profit associated. For good reason too. Greed and manipulation do not make for a good investor.

DO This:

  1. Be trained to speak with mobile home sellers.
  2. Know the common and not-so-common ways to transfer mobile homes. Get educated!
  3. Ask enough questions to fully understand each seller's unique circumstances.
  4. Have every seller's BEST INTERESTS in your mind when making every deal. Think Win-Win and NOT Win-Lose.

Investing should be treated as a team event - the Seller AND You [Not, the Seller VS. You] should join forces to sell their unwanted home. The more time an energy a seller invests with you the more the seller is subconsciously saying, "I'm investing time to work with you."

Treat everyone with the respect and candor you expect.

9. Do all mobile homes have Titles? +

 

mobile home title

All states use Titles to show ownership, except Texas, New Hampshire, California (to some extent), and Vermont.

The states that do recognize states do use Titles as a method to prove mobile home ownership. Mobile home Titles are State printed physical pieces of paper that show details including:

  • owner's name and address
  • age
  • width
  • length
  • vehicle registration numbers
  • serial numbers
  • location
  • recorded lien information including names and address
  • and more

There is a separate "Title" document for each section of your mobile/manufactured home. One Title for a single-wide mobile/manufactured home and Two Titles for a double-wide mobile/manufactured home.

If the mobile/manufactured home has been "paid in full" and there are no current Liens the owner will have an original state Title(s) in his or her possession. Verify on the Title itself that the Lien section is blank or released of lien by lien holder. Example: In some states the Lien holder can simply sign their name [with pen] on the original state Title in a designated section and the Lien is satisfied. Once a seller their Title(s) they can sell them by signing them as seller and handing them to the new buyer. Other forms are required to complete deal.

If the land on which the mobile/manufactured home is located and the home is likely legally and permanently affixed to the land and have no Titles.

10. What is a Manufacture's Certificate Of Origin (MCO)? +

 

Manufacturers Certificate of Origin

When a manufacturer produces a mobile/manufactured home they issue a Manufacturers Certificate of Origin (MCO). This official document is considered to be a “birth certificate” for a mobile/manufactured home and contains information about the year model, manufacturer, model name, identification number, weight, etc.

The Manufacturers Certificate of Origin is required to be filed with the state when applying for the first title. Only concern yourself with this if purchasing new from factory or dealership. Please note that possessing a statement of origin for the mobile home is not enough for proof of ownership—a valid state issued Title is required except for Texas, New Hampshire, and Vermont.

11. Can you talk about mobile home closings inside parks? +

A common question I am asked is what steps are need to complete an accurate closing on a mobile home on rented land inside a mobile home park. The answer is surprisingly simple by real estate standards. Mobile homes within parks may offer the single easiest form of real estate acquisition for cash-flow seekers.

Unlike most forms of traditional real estate that require the chain of title be meticulously checked for correct ownership prior to closing, a free-and-clear mobile home within a mobile home park can forgo this cost/time and can close within minutes.

Most mobile homes bought and sold inside of mobile home parks are done utilizing cash or owner financing. That is to say when you are planning to purchase a used owned mobile home in a park you are most likely paying cash, arranging conventional, and/or arranging owner financing to purchase your new home. In addition you will notice that many of the mobile homes you visit inside a park will be free and clear - without a mortgage or lien on the mobile home.

You will need the following:

1. Clear Title:

Does seller have clear title to sell home? If the mobile home is free and clear of any liens or encumbrances the sellers will have the original mobile home Title(s) [except for VT, NH, and TX]. Look closely at the Title(s) and the seller's identification to confirm the seller is the true owner and has the right to sell the home.

If there is a “Lien” section on the Title make sure there are no existing liens. If this lien section is blank the Title is ready for signing by both the buyers and the sellers. Print and sign clearly.

2. Bill of Sale:

A Bill of Sale is the mobile home in a park's version of a HUD-1 closing statement. A Bill of Sale describes;

  • the terms of the sale
  • how much was paid today
  • if there will be any liens for the purchaser
  • if the home is warranted
  • which fixtures or appliances are included in purchase of the home

The Bill of Sale also includes the mobile home year, vehicle registration number, serial numbers, address, dimensions, make and model of manufactured home.

3. Unsecured Promissory Note:

This form is optional and is to specify in detail the payment instructions, seller financed amount, and payback terms. This form is only created if you are purchasing a mobile home via owner financing. When selling a mobile home with payments it is vitally important to follow the instruction we have for you in the Mobile Home Formula to ensure you do not violate the SAFE Act, Dodd Frank Act, and other Truth in Lending rules, or use a licensed licensed residential mortgage loan originator in your state.

4. Personal Property Trust:

If you are an investor make sure you are purchasing every mobile home in a different mobile home Personal Property Trust. For the same reasons we almost always use Land Trusts to purchase traditional investment homes - we use Personal Property Trusts when investing in mobile homes inside rented parks.

5. A Closing Location:

This can be performed at the subject mobile home. Be aware it may be wise to have a Notary available or drive to a bank for their free Notary services.

12. How can I find more mobile home parks to drive through to find more mobile home deals? +

Welcome back,

One of the first Action Assignments I teach brand new mobile home investors is to go after the "lowest hanging fruit" with regards to mobile home sellers. These "low hanging fruit" represent the easiest and most profitable deals for you invest in within your target investing area. I aim to teach low cost methods for attracting and finding used mobile homes for investments.

A free method for finding these deals is simply to Cruise for Cash and start driving your local neighborhood mobile home parks, but what parks and where do you find their addresses? Keep reading...

Prescreening the parks you will be driving through will cut down on wasted time and unprofitable parks. In most areas it would be ideal if your first few deals fit the criteria below. This will help follow the path of least resistance while learning this business.

  1. Owner-occupied mobile home park (we have no interest in parks that only rent mobile homes)
  2. All ages welcome
  3. Pet friendly
  4. Average lot-rents for county (in lower 60% of price ranges of local lot rents)
  5. Individual mobile homes are not listed with a Realtor or Bank
  6. Asking price is under $25,000

Map where you will be farming via Google directions then head-out and cover your investing radius. Do not be concerned with speaking to park managers until you have properly trained on how/what to say and what not to say on your 1st meeting with a park manager as this meeting is crucial. Collect as many "For Sale By Owner" leads as you can before calling each seller to set your 1st appointments with as many motivated sellers as possible..

Steps after you collect your first 25-50 leads:

  1. Collect leads
  2. Prescreen homes and sellers over phone
  3. Set appointments
  4. Craft 2-4 valid purchase offers
  5. Hear sellers likes and dislikes
  6. Put seller into a Automated Followup Sequence until the seller accepts your offer, makes a counteroffer, or sells the home to another party. (if applicable)
  7. Once sellers agree to price/terms begin to market for buyers before you close
  8. Generate and print closing paperwork
  9. Close on the property in your Personal Property Trust (new trust for each property)
  10. Make any repairs needed
  11. Resell mobile home for monthly payments, rent, or all cash.

This entire process starts with you taking action. The next step is attracting and finding these already motivated and ready-to-sell leads from local mobile home owners in your local communities.

Why should I gather 50 leads before making calls to these sellers? Let's look at the big picture of your success...

  1. Out of 50 FSBO leads you can set up 10-15 appointments with qualified sellers.
  2. Out of these 10-15 appointments you may close on 1-3 mobile home immediately.
  3. The other 47-49 sellers that originally said "no" to you will now be placed in your Automated Followup Sequence. Overtime some of these sellers will come back to you when exterior-forces change in their lives and now they have to sell.
  4. At this point the seller is ready to accept your Win-Win offer and you may close on another profitable mobile home.

 

 

Getting Started: Mobile Home Investing Questions

1. How much money do I need to get started? +

 

.

 

Ultimately you are your own person and can/will do whatever you choose.

If you have enough ambition and determination you can start with nothing and Win. However starting with little money and no education may struggle for weeks before you see results. For fastest results (based on helping 100's of newbie mobile home investors) see below.

Recommend to Start Fast:

  • > $5000.00 = Green Light! This will get you into most motivated mobile home deals. Keep all capital over this amount safely in the bank.
  • $500.00 - $4,999.99 = Yellow Light. This will give you access to some great opportunities. Learn to invest on line A deals and wholesale the rest.
  • < $500.00 = Red Light. Keep saving and learning.
2. What are some general methods to advertise to all sellers? +

The life-blood of any real estate investing business is the amount of leads you are finding and/or leas that are finding you (preferred method). If you have a well established network of lead magnets (Lead magnets = Unique methods to attract seller leads) in and around your investing area then you will invariably be; speaking with sellers, going to appointments, evaluating homes, making offers, creating value, and reselling each property for cash or cash-flow... but it all starts with leads.   

Listed below is a list of some additional strategies for YOU to find new seller leads. Commit yourself to implementing just one (1) new lead magnet each week for the next 55 weeks. Enjoy!

.

  1. Accountants and CPA Firms:  They have clients with financial problems where an investor can be of help.
  2. Advertising:  Never stops. Use simple ads with a USP, Unique Selling Proposition:  Quick Closing, All Cash etc., We Buy Houses Ads, Newspapers, Flyers.
  3. Attorneys:  Attorneys know when people need money, often to pay their fees!  Not just probate but divorce, family law and real estate attorneys.
  4. Auctions:  Do your homework in advance.  Auctions move very fast and a single mistake can be costly.  Visit your local auction a few times to just observe.  Know values and repair costs before bidding.
  5. Apparel with Logos:  Hats, T-Shirts, Golf Shirts, Hand Bags
  6. Bird Dogs: These people can be very valuable to your business.  It is important to know your local laws about compensating unlicensed people so do your homework first!
  7. “Blue Tarp” Houses: Often blue tarps on roofs signify major roof damage.  Contact the owner to see if they want to sell the property.
  8. Business Cards-different types:  One for sellers, one for buyers, one for professionals (banker, attorney, CPA).   Keep them on you at all times and pass them out every chance you get!
  9. Car Repos: If the car is going the house isn’t far behind.
  10. Carpet Cleaners:  Many of their customers are preparing a house for sale.
  11. Charitable Groups:  Frequently receive gifts of real estate, but they’d rather have the cash.
  12. City & County Inspectors:  Code violations and red tags.  If you develop a reputation of buying distressed properties and improving them, you become an asset to the community.
  13. Classified Ads:  Look for specific keywords that could possibly mean the seller is motivated such as:  transferred, motivated, divorce, owner financing, must sell, etc.
  14. Condemned Houses:  Many counties will provide you a free list.
  15. Consumer Loan Companies:  When their loans go bad they are frequently willing to deal rather than foreclose.
  16. Courts:  Eviction Filings, Probate, Divorce Cases, Tax Liens, Code Violations
  17. Credit Repair Agencies & Counselors:  Many times the only way someone can get their spending under control is to sell a house they can no longer afford.
  18. Direct Mail : Pre-Foreclosure Letters, Probate Letters, Out of Town Owners, Bankruptcies, Divorce, Delinquent Taxes, Military Owners
  19. Door Hangers:  You can also use pre-printed post-it notes to leave messages at target properties. Be sure to advertise on both sides, you can even sell the back side and recover your advertising cost!
  20. Door Knocking:  Distribute flyers and go door-to-door asking residents if they know of anyone planning to move because you’d like to buy a house in their neighborhood!
  21. Drive or walk Neighborhoods:  Get to know them well and take notice of changes.
  22. Estate Sales:  Often the real estate will also be available and perhaps with owner financing
  23. Eviction Court:  Great place to find landlords
  24. Expired Listings:  Connect with an investor friendly Realtor
  25. Family Members:  Talk about what you do and ask for referrals
  26. Flyers:  Cut your cost in half, print two to a page and distribute:  Shopping Centers, Wal-Mart, Home Depot, Malls.  Put on car windshields or pay someone to do it for you.
  27. Friends:  “Do you know anyone who wants to sell?”  Most people know 2 people who will be buying or selling a home this year.
  28. FSBO Signs:  For Sale By Owner
  29. Funeral Homes:  Can be a good lead source before information on a decedent becomes public.
  30. Garage Sales:  Are they moving?
  31. Hair Salons:  Lots of talking going on during hair cuts!
  32. Home Builders:  Need to sell their buyer’s houses so they can close on the new place.
  33. HUD Foreclosures:  Internet: Rent Clicks, EBay, Craigslist, Wholesale Sites, Lead Services, USLeaseOption.com
  34. Insurance Brokers:  Policy changes from owner occupant to landlord or vacant house coverage.
  35. Investor Packages:  Investors who are ready to retire and cash out their portfolio.  May be able to negotiate seller financing as well as a discount.
  36. Judgments: Check the public record or hire someone to do it for you.
  37. Large Employers: Let them know you buy properties so if they need to transfer an employee, they don’t get stuck carrying the house.  This can be good for renting executive properties for short-term transfers, too.
  38. Lenders: Banks / REO’s:  Mortgage Brokers, Private Lenders, Hard Money Lenders
  39. Lis Pendens:  Notice of a law suit, usually a foreclosure.
  40. Magnetic Car Signs and Wraps:  Check with your auto policy carrier as to whether or not this will affect your coverage.  A rider may be required.
  41. Market Bulletin Boards:  Grocery stores, coffee shops, restaurants
  42. Military Transfers:  Military bases provide an excellent transient market for those needing to sell and buy off- base housing
  43. Newspaper Carriers:  They know the neighborhood better than anyone else and may be able to alert you to vacant or boarded up homes.
  44. Nursing & Retirement Homes:  Frequently residents need to sell a house.
  45. Pens: Buy cheap ones with your marketing message on them and leave them everywhere you go.
  46. Pizza Boxes:  many sell advertising or sponsorship spots
  47. Postman:  Same as the newspaper carriers- they know the neighborhoods well and could act as a bird dog for you.
  48. Rental Agents & Property Managers:  Let them know you want to buy and also find a local manager. You buy, they manage…win/win!!
  49. Retirees:  A growing population with free and clear homes.  Excellent prospects for seller financing.
  50. Section 8 Landlords:  Each county maintains a list
  51. Social Media:  A new way to get your message out:  Facebook, Twitter, YouTube
  52. Structural Damage:  Once you know what you’re doing, you can buy at a rock bottom pricing.
  53. Title Companies:  Not all transactions close like they are supposed to.  Let the title companies know you can help in a pinch, for the right price.
3. Should I first look at investing in a mobile home in a park or attached to private land? +

The answer is going to be based on my biases, experience, and cash-flow-minded opinion.

If your goal is passive cash-flow in as little as 30 days while risking little to no money then it is my opinion that you will capitalize the greatest by beginning with mobile homes in parks. Once you have proven this model works and you enjoy doing it, then you can pursue mobile homes attached to private land.

  • Approx. 25% of mobile homes are located in preexisting parks
  • Approx. 75% of mobile homes are located on private land

Mobile homes inside preexisting parks and mobile homes attached to private land you will own are two totally different animals with completely different ways of attracting sellers, finding buyers, structuring purchase offers, seller follow-up sequences, closing procedures, and reselling strategies.

It takes about the same cash and credit to get started in either so perhaps market for everything and making money whenever your phone rings in a good solution. Learn both strategies and be ready to help all sellers.

4. I am nervous about getting started. Do you have any advice? +

Welcome back,.

In this article let us discuss a controversial topic with regards to business, the idea of "faking it until you make it".  At first I personally did not agree with this Steven Tyler quote, however the more and more I looked at it the more benefits I noticed from this simple message. The idea is to fuel your own internal fire.

One distinct change I would make is to the quote "faking it until you make it" to read...

"visualize it until you make it".

This quote may be more impact-full to your ultimate success than you may currently realize. The more and more I research this "visualize it until you make it" term online and in group forums the more I see big named celebrities and athletes with success using this form of visualization to motivated themselves from failure to success.

In the video below we touch on a key factor for my own successes with a term called "Motivational Dissatisfaction".  I highly recommend this technique for you as well.

In conclusion nobody is going to push you as hard as you can push yourself. If you are unsure of the path forward or wish to be accountable to someone I recommend a mentor that is on your side while investing. This business is possible with daily action and correct knowledge.

5. What if all the mobile home parks in my area are priced over $900 per month? Can I still make this business work? +

 

Yes, you can still make money.

However it is my personal advice to you and my current members to first begin investing in areas around your city or outside of your city with lot rents closer to the $500-$600 per month range.

When you drive and begin to look for mobile homes inside parks with lowered lot rents you will find more homes for sale, less cash buyer demand, mobile homes advertised with lower asking prices (compared to high lot rent areas) and obviously lower lot rents. These area do exist in every state from California to New York. Begin investing and learning this business in areas with lower lot rent until you have a good understanding of the market and then move to parks with higher lot rent if you desire.

If all the parks in your local city are charging higher lot rents over $700 per month begin investing in the outskirts of your town or nearby towns. Parks and neighborhoods on the outskirts of major hot-spot tourist cities will have considerably lower lot-rent fees and home asking prices.

The reason I say "Yes" above is because lot rents rise and fall around the country with local home rents. If your city on average charges $600 for a mobile home lot fee than local rent is typically $900 or more for a 2 or 3 bedroom. We do not rent but for comparison reasons we often times do sell our homes monthly for rent prices. On the opposite end of the spectrum if a city has average lot rents of $250 per month than the market rent will be closer to $500-$600 per months for a 2 or 3 bedroom. So you see it is possible to make cash flow in almost any market.

I hope this makes sense. If you have any questions do not hesitate to email me.

6. Why and how do you use Personal Property Trusts when buying and selling mobile homes inside parks? +

Welcome back,

In this article we are going to be discussing Land Trusts and Personal Property Trusts and how they can affect your mobile home investment business.

Land Trusts and Personal Property Trusts

  • Land Trusts hold property with land such as;  mobile homes with land, single family homes, townhouses, condos, raw land, etc.
  • Personal Property Trusts hold personal property such as; mobile homes on leased land and in park, car, truck, jet ski, coin collection, snow mobile, etc

Definitions:

personal property trusts

Mobile Home Personal Property Trusts & Land Trusts:

A Trust is a legal arrangement in which the Grantor (the owner selling the property)sells something (land, car, house, mobile home) in to an established Trust for the benefit of one or more beneficiaries.

A "Trust" is a shell entity. Either you may create this document for free or you may pay an attorney to create this document. A trust can help shield your property's true ownership from the prying eyes of the public, attorneys, almost everyone.

Beneficiary(ies):

Individual(s) or company that receives owner benefits of Trust such as; cash flow, appreciation, tax shelter, income, etc. Each trust spells out the duties of the Beneficiary as the owner. The Beneficiary is typically you or your company when you purchase your investment mobile home. If your state has a Homestead Tax exemption then as Beneficiary this "Homestead Exemption" can be placed on the property if it is the beneficiary's primary residence. A Trust can have a single beneficiary or multiple beneficiaries who may or may not be treated alike.

Trustee(s) =Owner of Record.

The Trustee must sign as buyer and seller of the property at the time of purchase and sale. Your Trustee has the full rights to sell, rent, lease, fix, insure, and refinance the property within the Trust.  Your Trustee should be someone you trust and have 100% confidence in - after all they can legal sell your property as owner of record and walk away with your profits. Your Trust can have a single Trustee or multiple Trustees. Each Trust Agreement agreement spells out the duties, responsibilities, and protection of the Trustee and Beneficiary. A Trustee is often time referred to as a puppet for the Beneficiary. The Trust Agreement also gives the Trustee the obligation to never divulge who the Beneficiary is, unless under subpoena.

The wording in the Trust Agreement is to protect the your Trustee just as much as the Beneficiary.  Your Trustee is not liable for anything that happens on the property. In addition the "person" signing as Trustee is not the same person when he or she is not signing as Trustee. Example below:

Bob Davis as Trustee of Personal Property Trust #123 is not the same person as Bob Davis.

Why do you choose to use Land Trusts and Personal Property Trusts?

Trust agreements are super simple to create. They keep your property safe from probate should the owner pass-away without a legal Will. Your Trustee signs on behalf of the Beneficiary, if the Trustee passes away or gets fired then a successor Trustee is already listed on the Trustee agreement and seamlessly takes ownership.

How do I get  my properties in to a Trust?

The property is sold in to the already-create Land or Personal Property Trust through a "Warranty Deed to Trustee".

Once the home is sold into the Trust the Title or Deed may read:

Bob Davis as Trustee of Personal Property Trust #123, or simply, Personal Property Trust #123.

What paperwork is needed to transfer my property into a Land Trust or Personal Property Trust?

mobile home on land trusts

To sell your property into a Trust of your choosing you will need:

  1. A Land Trust agreement or Personal Property Trust agreement you trust.
  2. A Warranty Deed to Trustee to sell the property to the Trustee and place the home into the Trust.

Conclusion:

In conclusion we have only skimmed the surface of the benefits and uses of Trust. Trusts come into play as a crucial factor when we sell mobile homes inside parks and on private land. Your Trust agreements should always stay safely protected in your private files or home safe. Whether you control one property or 50 it may be prudent to have your name hidden from public record. Protect yourself in advance.

7. All the mobile homes in my area are priced over $100,000 inside parks. Can this business work in my area? +

Yes...

This question is mainly asked by investors getting started on the Coastal cities in California and New York City.

Although there are high priced mobile homes in these areas there will always be the occasional 3 bedroom or 2 bedroom mobile home deal under $25,000 due to a motivated seller needing to move super-fast. These motivated sellers will not have time to list their homes for sale so network with every park manager you can because these homes sell fast.

In most cities there is only a small percentage of mobile homes for sale in parks over $100,000. In hot-spot areas such as major metropolitan cities and beach-front vacation destinations the demand on housing from the incoming transients moving into these cities can drive even ugly mobile homes into the $100,000 price range. The buyers here are happy to grossly overpay for location, location, location.

Do not compete with this frenzy.

Travel a short distance outside your major city to nearby towns and/or nearby counties. These suburb areas offer less demand from cash buyers compared to their metropolitan neighbors.  Less demand from buyers drastically reduces park rental fees and home prices. Begin investing here.

8. Is investing in a brand new manufactured home a good idea? +

Welcome back,.

In this article we are going to discuss the question "Is purchasing a new mobile home a good investment?" Let us talk about the growing demand of semi new mobile homes in parks that are grossly over financed with bank liens and mortgages. Many of these homes are almost impossible to resell due the current market conditions and bank lending restrictions.

Let us imagine you are a hard working American that desperately wants to own a home of your own. The year is 2000-2007 and there is a real estate buying frenzy. You do not have the best credit but that is alright as banks are lending to anyone these days. You discover that traditional real estate in your town is going for $170.00 or more per square foot. However a brand new mobile home is selling for only $62.50 per square foot. Good investment idea right? It depends.

Here is what you know:

  1. You desperately want to own a new home to call your own.
  2. You can purchase a brand new 1,600 square foot mobile home with bank financing for a quarter of the price as a new traditionally built house.
  3. You do not want to purchase land because that will only increase the price you must repay. You decide to place your new mobile home inside a preexisting mobile home park in your local area.
  4. The mobile home dealer has impressed upon you that home ownership is the American dream and the way the market is going you can’t lose. I have actually heard this from more than one mobile home seller I have spoken with..

Knowing all this would you finance the $50,000, $90,000, $120,000 for a new mobile home to be placed inside a mobile home park? As an investor you would likely not..

This is the exact situation many mobile home owners who bought a NEW mobile homes between 2000-2010 are in right now. Many of these buyers did not fully understand the repercussions of the loans and mortgages they were agreeing to. Many of these buyers were not ready to be home owners...

is a brand new mobile home a new investment

Unemployment numbers:

CNN online reports 7.9 million jobs have been lost since this economic down-turn began. Many of the blue and white collar jobs that hard working mobile home owners were relying on to pay their bank loans and other bills have evaporated. Many hard-working mobile home owners are now left with little choice but to downgrade to apartment living and must try to sell their used mobile homes with expensive loans. This situation mimics the housing market in many areas however without land that the home owner owns a mobile home park may evict this mobile home and mobile home owner within weeks of nonpayment of park rent...

Downgrade to Apartments:

In my local area a 3 bedroom and 2 bathroom apartment will rent for $950-1,050 per month. A 3/2 mobile home bought for $80,000 and financed for 15 years through a bank at 10% annual interest will be roughly $860 per month. Do not forget to add on taxes, hazard insurance, and your park lot fees and your monthly payment can skyrocket to over $1,200 per month easy. .

Options for home owners that must sell:

If an mobile home owner cannot pay their monthly mortgage payment it is likely to assume that they cannot pay for the monthly lot rent payment for the park. After 30 days of non-payment to the mobile home park many communities will begin the eviction process to remove the home and owners from the premises.

  1. Banks have critically stopped lending on used mobile homes inside parks. This will make many buyers and mobile homes unapprove-able for new purchase mobile home loans.
  2. Used mobile home buyers do not have the $30,000 to pay cash for these over priced homes.
  3. Banks will typically only do short sales if payments have been in default for over 90 days. By this time most owners have been removed from park for non-payment of park rent.
  4. Mobile homes are costly to move. If a mobile home seller does not have the $1,200 plus or minus to pay their monthly payment to the bank and park then he or she will likely not have the $5,000 to move the mobile home to another park or piece of land.
  5. Sellers with high manufactured home loans have little choice other than to list with a Realtor and hope for a fast sale or try to work with their bank on a successful forbearance or loan modification..

Benefits to cash buyers and mobile home investors:

Once the mobile homes have gone through the foreclosure process they will be “for sale” by the bank at a steeply discounted price. The mobile homes often remain in the same parks that they were originally moved into.

  • Purchasing a 3 or 4 bedroom mobile home built in 2000-2010 for under $8,000 can be a regular occurrence. Depending on the bank some degree of conventional financing may even be an option if you choose to purchase more than one mobile home. .

Conclusion:

At least every other week I will speak to a seller that purchased a new manufactured home for way too much money if they planed to resell anytime soon. Sellers can obtain financing from the park or possibly local banks for 15 years. Many mobile home owners may stay only 3-6 years before an emergency forces them to move. Without anyone to purchase this mobile home the seller is in a very tough spot. This is not the dealers direct fault, nor is this the mobile home sellers direct fault -  this is a product of over leveraging and not understand the resale value of mobile homes.

Be kind to every seller you speak with and always aim to help every seller and educate every seller before thinking about yourself and how you may profit. From this point of helping and clarity you may be able to create value in the seller's life and construct a win-win deal. .

9. Do I need a mobile home Dealer's license or Realtor's license to begin investing in mobile homes in my state? +

 

Did you know that many states have a CAP or limit to how many mobile homes you may buy and sell for a profit per year (12 months)? It's true. Many states say that you must become a licensed mobile home dealer or mobile home retailer after "X" number of deals you close for a profit. See below to confirm your states number.

This "licensing" rule does NOT apply to mobile homes attached to private land. This only applies for mobile homes on rented land and/or considered personal property.

  • A "0" after the State name indicates a state that asks you to obtain your mobile home retailer or dealer license before you buy and sell any mobile homes for profit. Homes that are considered your primary residence or secondary residences do not count.
  • An "A" after your State name indicates a state that does not have a cap on the number of mobile homes you may buy and sell for profit without a mobile homes retailer or dealer license. Enjoy and get moving!

State: # per year without a dealer or retailer's license:

  • Alabama:1
  • Alaska:A
  • Arizona:3
  • Arkansas:1
  • California:0
  • Colorado:0
  • Delaware:5
  • Florida:2
  • Georgia:0
  • Idaho :6
  • Illinois:4
  • Indiana:A
  • Iowa:A
  • Kansas:A
  • Kentucky:1
  • Louisiana:3
  • Maine:0
  • Maryland:A
  • Massachusetts:A
  • Michigan:0
  • Minnesota:5
  • Missouri:4
  • Mississippi:3
  • Montana:A
  • Nebraska:0
  • Nevada:A
  • New Hampshire:3
  • New York:4
  • North Carolina:3
  • North Dakota:A
  • Ohio:4
  • Oklahoma:0
  • Oregon:3
  • Pennsylvania:3
  • South Carolina:4
  • Tennessee :1
  • Texas:1
  • Utah:2
  • Vermont:A
  • Virginia:5
  • Washington:0
  • West Virginia:6
  • Wisconsin:1

**If you see any error in the list above please leave a comment below so that the information may stay as current as possible.**

But John, do I really need a license?

Of all the people I trained to invest in mobile homes many end up getting their MH license to continue investing. Others do not get their MH license and continue investing anyway. By talking to every state's Manufactured Housing division I have determined that many states do not police these matters. It is the burden of the State to prove you are purchasing and reselling your properties for profit or personal gain or not as a primary residence. In addition nobody is counting your transactions and waiting for you at the DMV, DOT, Notary, or other Manufactured housing division where Title is transferred in your state. With that said it is our opinion to start becoming licensed as soon as you realize this is a profitable, fun, exciting, and long-term business you wish to be apart of.

What if I continue without a license?

If you were singled out by a tenant-buyer or someone else for shady practices or screwing someone and were discovered to not have a license then you deserve to be caught. You will likely be given a cease and desist notice to quit investing until this 12 month cycle is over. In other states you may be given a fine depending on the severity of the matter.

Do Personal Property Trusts help hide our identity? or Can I simply buy/sell in my LLC or children's names??

If it looks like a duck and quacks like a duck, it's a duck. The methods listed above will give some anonymity to your business but if you were in front of a Judge and found out to not have a license it would be necessary to obtain a license to continue investing legally. If you are the mastermind and receiving the tax benefits you should become licensed once you realize you want to continue making money with mobile homes.

What are the Pros and Cons of becoming licensed?

In many states some negatives are that you are taxed at a higher rate typically then non-dealer status. Licensing also costs a yearly fee in many states. Some positives will be that you will now be more knowledgeable about mobile homes in your state and that you can network with other dealers and retailers more readily. Bottom line is the law is the law; if you love this business and are making $1,000 cash flow per month with mobile homes then reinvest the money into your education to become a state licensed mobile home retailer or dealer.

What does my State require to become Licensed?

Good question. Depending on your State the licensing requirements will vary. Some states will want you to have an office (home or otherwise), dealer lot, become bonded, insurance, experience, pass written tests, etc. For exact license requirements call your local mobile home division. See numbers below.

  • Alabama: 251-574-1923/251-574-8794
  • Alaska: 907-269-3750 ask DLR Licensing
  • Arizona: 520-509-3555/ 888-431-1311
  • Arkansas: 501-663-8444
  • California: 909-987-2599/916-323-9803
  • Colorado: 303-866-4616
  • Connecticut: 860-584-5915
  • Delaware: 302-744-2500 Dover Office
  • Florida: 850-907-9111
  • Georgia: 770-955-4522
  • Idaho: 208-334-8664
  • Illinois: 217-782-2880
  • Indiana: 317-240-3751
  • Iowa: 515-265-1497/563-244-0573
  • Kansas: 785-368-8385
  • Kentucky: 502-223-0490/502-573-1795
  • Louisiana: 225-925-9041
  • Maine: 207-624-9000 ext 52143
  • Maryland: 410-767-1324
  • Massachusetts: 617-727-1977
  • Michigan: 517-241-9317/517-241-9328
  • Minnesota: 651-296-2977
  • Mississippi: 601-923-7229
  • Missouri: 573-636-8660
  • Montana: 406-442-2164/406-456-5460
  • Nebraska: 402-471-3918
  • Nevada: 775-687-2060
  • New Hampshire: 603-629-9369
  • New Jersey: 609-588-9040
  • New Mexico: 505-476-4770
  • New York: 518-867-3242
  • North Carolina: 800-849-6311
  • North Dakota: 701-328-2725
  • Ohio: 614-752-7671
  • Oklahoma: 405-634-5050
  • Oregon: 503-364-2470
  • Pennsylvania: 888-242-7642
  • South Carolina: 803-896-4682/803-896-5000
  • South Dakota: 605-223-2065
  • Tennessee: 615-256-4733
  • Texas: 512-459-1221
  • Utah: 800-368-8824/800-DMV-UTAH
  • Vermont: 802-828-3749
  • Virginia: 804-371-7000 (ask for MH dept)
  • Washington: 360-357-5650
  • Wisconsin: 608-255-3131/608-266-3151
  • Wyoming: 307-777-4850

Hope this helps you understand the nature and importance of eventually obtaining your mobile home license to continue making even more profits.

10. What paperwork will I need to have completed in order to purchase a mobile home in a park? +

 

1-31-2014 3-49-08 PM

Forms You Will Create for Closing:

Step 1.) Create Bill of Sale

Follow the Bill Of Sale template provided for you. Follow the instruction and examples in the DEMO version of the contract. This form is NOT notarized.

 

Step 2.) Create Power of Attorney

Follow the Power Of Attorney template provided for you. Follow the instruction and examples in the DEMO version of the contract. This form will need to be notarized.

 

Step 3.) Create Agreement After Closing Contract (Only if seller remains in home after closing)

Follow the Agreement After Closing Contract template provided for you. Follow the instruction and examples in the DEMO version of the contract. This form is NOT notarized.

 

Step 4.) Create Promissory Note Agreement (Only if making payments or a balloon payment to the seller)

Follow the Promissory Note Agreement template provided for you. Follow the instruction and examples in the DEMO version of the contract. This form is NOT notarized.

This is NOT a loan! It is simply the terms you both agree upon to buy.

The Note or “Unsecured Promissory Note”, is just that, a promise to pay! It is a simple form we use to buy and sell manufactured homes. A promissory note can be for anything. If we are purchasing the home, selling a home, car, bike, or chicken... Any promise to pay!

.

 

Forms You Will See But DO NOT CREATE:

1. TITLES

YOU WILL NOT CREATE THIS. The Title is currently held by the seller/owner.

Titles will have the age, vehicle identification number, title number, make, model, serial number, address and any liens printed on the front of the title.

  1. If the sellers say that they lost the titles they must go to your local manufactured home title agency; in many states they can go to the local Department of Motor Vehicles, in other states it is The Department of Housing, The Department of Housing and Community Affairs  or The Department of Transportation to get replacement titles.
  2. This is usually an in-and-out process. The owner of record must be present with their ID and can get a new title usually in minutes with a small fee. You need the vehicle identification number, serial number, title number, address of home, tax id number, OR owners info to find accurate title information.
  3. How to sign as buyer when Buying as an Individual = Buyer: Joe Buyer
  4.  How to sign when buying as a Business = Buyer: Mobile Investors LLC
  5. ALWAYS TAKE THE TITLE when you leave the seller at closing.

Common Seller Questions:

Q: You haven’t given me all my money yet... How do I know you will pay me?

A: Your response: Mr. Seller we spoke about this in the beginning, we have written up a binding Promissory note and have every guarantee to pay you. Plus we have given you a down payment amount to help alleviate your worry. Listen Mr. Seller when it comes down to it, we would not be buying your home if we A). did not have it almost already resold and B). if we knew we could not make a profit from it.

Mr. Seller you have you job, your profession, this is ours. We do not make promises we can’t keep. The payment to you is only $_________ . We have monthly payments that we've arranged for 3 to 4 times that amount. We will not risk our business or reputation by losing this one property. We cannot go through with the sale without taking possession of the title.

2. Property Tax Bill (State by state) Does your state have a Property Tax Bill or Yearly Registration renewal for mobile homes inside parks?

This information should have been discovered by you in your Module 2 Lesson called "How to Transfer Title in My County - Test Run", Step 3, Question 5. This section is for Mobile Home Formula Members.

  1. If the yearly taxes are collected at the local "County Tax Office" then you may need to have signed a receipt of payment. YOU WILL NOT BE ABLE TO GET THIS WITHOUT YOUR SELLER.
  2. If the yearly property taxes are collected at the Department of Motor vehicles or Department of Transportation you will NOT need to do anything besides show up without any prior tax paperwork. The home will have a "decal" or sticker on the outside of the home visible for everyone to see.

3. Any Additional Forms from your "How to Transfer Title in my County - Test Run" from Module 2, Step 3, Question 1

***WHAT ABOUT A PURCHASING CONTRACT???*** (Signed days or weeks before closing to hold the deal)

A Purchase Contract is typically NOT needed with manufactured homes in parks (Except when closing in NH, VT, RI, or and Wholesale Deal. When in NH and RI see state specific lesson in this module).

Everything happens too quickly. Contracts are verbal until you exchange Title. If you do forsee more than a 7 day wait before you can close with your seller and recieve the transfer title, get a "Purchase Contract" signed.

11. If I am going through a foreclosure currently or have bad credit can I still invest in mobile homes inside parks? +

 

Yes, you may still profit from undervalued mobile homes if going through foreclosure. 

A mobile home park will likely ask you for a co-signer if you have a current foreclosure or poor credit on your record.

The parks that may refuse an applicant with bad credit are 5 star mobile home parks. Fortunately it is my advice to stay away from mobile home parks that screen buyers too closely. Most parks will have a list of items they screen buyers for including income verification, employment, criminal history, sexual predator status, and credit history.

Some parks will not require your credit information as they understand you will not be living in the home but reselling it quickly in most cases. Some parks will not ask for a background check for you at all, these parks are the minority.

12. Who is responsible for unpaid lot rent when you purchase a used mobile home inside a park? +

 

What a great business it is to own a mobile home park. You own land that others have agreed to rent from you for years or decades at a time. In addition you can hold multiple mobile home units on your land and charge each owner monthly for this parking space. There are of course amenities, utilities, rules, and statutes the park must obey and may have in place however this business model makes sense (and dollars... bad joke) to most of us reading this article.

In this article I would like to quickly highlight an important issue when it comes to investing in mobile homes inside preexisting parks, "Who pays unpaid lot rent when you purchase a used mobile home in a park?"

This is a popularly confusing question that we will describe using a recent case study.

I recently purchased a used mobile home in a preexisting mobile home community. In the coming weeks I will have a full case study regarding this property for everyone's education. The mobile home seller was originally asking $11,000. When I approached the seller he was asking $7,000. After negotiating some time and offering 3 purchase offers we agreed on a fair price of $2,100 plus my company agreeing to pay their past due lot fees and late fees. The terms for the sale were all cash.

The seller accepted my offer because he and his family were motivated to leave. One reason for the quick move was due to the seller wishing to move to an area closer to work. The other more pressing reason was due to the seller being 2 months behind in lot rent and not planning to make the payments before the park intended to evict him and his family. Luckily we were able to save an eviction from his record by purchasing his mobile home.

Now comes the question. Who pays for the past-due mobile home park lot rent when you purchase a used mobile home inside a park? There are 3 possible answers to this question. I will list them in order from most likely to happen to least likely to happen. These answers are solely based on my experience and the experience of the investors I help daily.

1. You (the buyer) will pay the past-due lot rent and late fees:

Correct. Almost 100% of the time you will be asked to bring the seller's past due lot rent and late fees current as the buyer and new owner. You will be informed of this cost by the park manager prior to being approved and closing. While the park manager may not specifically state that "you" are responsible for this cost, it is understood the lot space will not be transferable until this amount is paid.

Since it is likely that the sellers do not have the available money to bring the account current, all monies owed to the park by the seller should be deducted from any profit to the seller and paid by you to the park. Making this payment will likely help bond the park manager and you together. Realize that you are solving one of the park manager's current headaches.

2. The park will legally go after the seller for these costs:

I have only seen this happen on a few occasions. If a park considers themselves "fair" they may allow the mobile home to be sold and you not pay the back lot rent. In this situation the park may be pursuing the previous tenant's debt through legal means. If this is the case then you should double check with the park manager if he/she would like you to pay these costs through withholding them from the seller at closing. While this is not necessary it is helpful toward building a helpful and honest relationship with the park manager.

3. The park will completely forgive all past due lot rents and late fees:

Even less likely still is the possibility that a mobile home park will simply wipe the slate clean and forgive all past due lot rents and late fees because it knows the seller is selling and a new buyer will be making payments moving forward.

This makes little sense for a park to do unless it wishes to entice a buyer to purchase the seller's home. An example of this could be from a mobile home that is being sold by a private seller that is past due on lot rent. The mobile home park does not want the home back through eviction or abandonment and has already inspected the home to see it needs over $10,000 in rehab costs just to be considered livable. In an example like this the park may forgive all back fees and start fresh for a buyer that wishes to make the needed repairs and bring the home up to current park standards. The park forgives this amount as it is in the park's best financial interest to avoid making the repairs themselves and instead simply continue profiting lot/pad revenue from the new buyer.

Outside of this unique scenario a mobile home park has little incentive to discount or forgive the back lot rent and late fees. Consider a private seller selling their used mobile home in a park. The seller has lived in the home and has not paid lot rent fees in 3 months. If the seller profits thousands of dollars on the sale of the mobile home the park will want it's past due balance to be paid in full. While it takes a legal process to criminally go after a seller for back lot rent, it is much easier to demand the back lot rent be paid by the future owner, aka the buyer, prior to the buyer moving into the park. Buyers typically must become approved at the park office prior to purchasing a home inside the park. At this point the park manager will inform the potential buyer of the past due amount.

What to do after you learn that the lot rent must be paid prior to you owning the home:

As the buyer it is your added job to alert the seller to the past due amount and agree to deduct the past due lot rent and late feels from the purchase price of the home. Pay this amount yourself after closing. Do not allow or trust a seller to pay this amount on their own outside of closing.

Conclusion:

In conclusion make sure to always have clarity in your mobile home investing deals. With this clarity comes the step by step process and understanding you will take to ensure you have purchased a profitable mobile home investment. Always talk with the park management and become approved at each park prior to purchasing any home in the park. Some sellers will push you to not speak with the management or claim they must move-out over the weekend while a park manager is not available. Again, always make sure to speak with the park manager prior to purchasing any used mobile home in a park from a seller.

13. What is Transitional Vulnerability and how does it relate to investing? +

Welcome back,

This week I would like to discuss Transitional Vulnerability. Do not be caught off guard when starting a new venture.

Transitional Vulnerability is one stage of learning a new business or skill-set when you are the most vulnerable to immediate failure and becoming discouraged. 

Transitional Vulnerability can last weeks, months or a lifetime on your own.

Some examples of Transitional Vulnerability:

  1. When a butterfly first hatches from its cocoon it is in a state of transitional vulnerability.
  2. When a child is being born, both mother and child are in states of transitional vulnerability.
  3. As a baby bird learns to fly it is in a state of transitional vulnerability.
  4. When you start a new job you are in a state of transitional vulnerability.
  5. As you begin a new hobby or sport you are in a state of transitional vulnerability.

Investing in real estate is no different.

However if you fail with investing you are out literally hundreds of thousands of dollars over your lifetime assuming you never returned to investing.

When you choose to begin a side business of investing in real estate and/or investing in mobile homes for profit you are in a state of Transitional Vulnerability for at least your first 5 deals. This figure is based solely on my own experience of helping others in this field.

Make sure to understand that you will be faced with many common and unique challenges to overcome. These challenges will encourage you to stumble, become delayed, be afraid, second-guess yourself, hesitate, and eventually succeed or fail. Many of these challenges, both internal and external challenges can be overcome with correct training, leadership, and accountability. 

Building a profitable portfolio is hard, but you can do it. If anyone on this planet is where you wish to be there is no reason why you cannot duplicate his or her success.

How to overcome Transitional Vulnerability?

Be prepared before you ever take action in public.

Much like a pulling off a Band-aid it is going to happen one way or another. You can either learn this business overtime and improve slowly which is called "Trial and Error" or you can choose to advance your knowledge with a seasoned investor working directly with you on your deals, this is called having a "partner", "coach", "mentor", or "local expert" on your side. Make sure this person is someone others vouch for and that you like, trust, and can rely upon.

Logically speaking there are only so many steps (A, B, C, D... Z) that you should take to successfully build a profitable mobile home investing portfolio. Just to make sure you and I are on the same page I consider a successful business one that buys/sells one mobile home per 30-45 days.

Lack of clarity is what eventually hurts most amateur mobile home investors from moving forward as quickly as they can with help.

Lack of clarity for:

  • Where to advertise and market to save money and get results?
  • How to speak to sellers when screening?
  • How to construct offers?
  • An outline of every step of the process? Click here to see a more complete MHI outline.
  • How to answer seller/buyer questions to keep the deal moving forward?
  • What offers to suggest when buying and selling? This requires real-time help.
  • How to sell, what paperwork to use, and properly screening for low-risk buyers?
  • The best ways to manage properties for receiving on-time payments from your tenant-buyers.

If you ever have any specific mobile home investing questions or general real estate investing questions do not hesitate to ask me.

14. What if my mobile home has a very small bedroom? +

In today’s article let us discuss a commonly overlooked issue that newer investors of manufactured housing miss while screening a prospective mobile home deal. This blind spot and the subsequent suggestions made to you below come from a combination of my own mistakes, successes, and advice given weekly to my mobile home investing members.

Perhaps one of the biggest oversights new investors miss is the notorious “small bedroom”. Typically found in singlewide mobile homes that were build between 1960-1985. These small bedrooms will detract significantly from the appeal and resale-ability of your newest mobile home investment.

These very small bedrooms range in size but are roughly 8ft x 6ft or smaller. In these small bedrooms you may be able to spread your arms apart and touch both walls, or at the largest these rooms will hold a full-sized bed and little more. Bottom line is that if you walk into a mobile home bedroom and think to yourself, “this room is way too small” than your prospective tenants and/or buyers will have the same thoughts.

These rooms are a product of the particular mobile home layout. In 2 and 3 bedroom homes the hallway can cut into the width of 1 bedroom in a split-plan mobile home. Here is an example: Imagine a master bedroom on one end of a 12ft x 60ft mobile home. The master bedroom is the complete 12 ft width of the home. Attached to this master bedroom is the living room, then kitchen, then hallway leading to 2 more bedrooms on the opposite side of the home. The hallway which ends at the furthest bedroom means that the this furthest bedroom is the entire width of the home. However because the 3rd bedroom is located next to the furthest bedroom it is shortened by the width of the hallway. Does this make sense?

How Should You Deal with Mobile Homes with Small Bedrooms

When looking at a mobile home with a notoriously small bedroom to purchase you should reduce the amount of bedrooms in the home mentally by one. Now offer your purchase price or terms based on a mobile home with one less bedroom.

Likewise when you are selling a mobile home with a way too small bedroom you have a few choices. Let us say you are selling a 3 bedroom mobile home with 1 notoriously small bedroom. You can choose to advertise the home as a 3 bedroom or 2 bedroom. If you advertise the mobile home as a 3 bedroom, and price it accordingly you will very likely hear an out-pour of unpleasantly surprised prospective tenants and/or buyers that will tell you their complaint is the too-small bedroom. This can lead to wasted time, confused feelings about mobile home investing, and ultimately no sale.

On the other hand if you advertise your 3 bedroom mobile home as a 2 bedroom, and a price it to match a comparable 2 bedroom then you will find tenants and/or buyers that are very happy to discover a mystery 3rd bedroom. These small bedrooms are better suited as an office, baby’s room, or child’s play room.

Conclusion

In conclusion there is a memorable saying in real estate investing that goes, “Price cures most worries”. With that in mind it is my intention to save you headaches, holding costs, confusion, and dollars when you go to resell your next wonderful mobile home investment. As investors we are in business to provide value and help sellers and buyers, but not to step into a seller’s shoes and take over their problems.

Stay in control. Make sure you are clear on what you are buying and your exit strategy.

 

Selling Your Mobile Home Questions

2. What if my monthly-paying tenant-buyer stops paying me? Who pays what? What are my risks and options? +

 

In this article I would like to quickly highlight an important issue when it comes to investing in mobile homes inside preexisting parks, “Who pays unpaid lot rent when you purchase a used mobile home in a park?”

This is a popularly confusing question that we will describe using a recent case study.

A Mobile Home Example

I recently purchased a used mobile home in a preexisting mobile home community.

In the coming weeks I will have a full case study regarding this property for everyone’s education. The mobile home seller was originally asking $11,000. When I approached the seller he was asking $7,000. After negotiating some time and offering 3 purchase offers we agreed on a fair price of $2,100 plus my company agreeing to pay their past due lot fees and late fees. The terms for the sale were all cash.

The seller accepted my offer because he and his family were motivated to leave. One reason for the quick move was due to the seller wishing to move to an area closer to work. The other more pressing reason was due to the seller being 2 months behind in lot rent and not planning to make the payments before the park intended to evict him and his family. Luckily we were able to save an eviction from his record by purchasing his mobile home.

Now comes the question.

Who pays for the past-due mobile home park lot rent when you purchase a used mobile home inside a park? There are 3 possible answers to this question. I will list them in order from most likely to happen to least likely to happen. These answers are solely based on my experience and the experience of the investors I help daily.

1. You (the buyer) will pay the past-due lot rent and late fees:

Correct. Almost 100% of the time you will be asked to bring the seller’s past due lot rent and late fees current as the buyer and new owner. You will be informed of this cost by the park manager prior to being approved and closing. While the park manager may not specifically state that “you” are responsible for this cost, it is understood the lot space will not be transferable until this amount is paid.

Since it is likely that the sellers do not have the available money to bring the account current, all monies owed to the park by the seller should be deducted from any profit to the seller and paid by you to the park. Making this payment will likely help bond the park manager and you together. Realize that you are solving one of the park manager’s current headaches.

2. The park will legally go after the seller for these costs:

I have only seen this happen on a few occasions. If a park considers themselves “fair” they may allow the mobile home to be sold and you not pay the back lot rent. In this situation the park may be pursuing the previous tenant’s debt through legal means. If this is the case then you should double check with the park manager if he/she would like you to pay these costs through withholding them from the seller at closing. While this is not necessary it is helpful toward building a helpful and honest relationship with the park manager.

3. The park will completely forgive all past due lot rents and late fees:

Even less likely still is the possibility that a mobile home park will simply wipe the slate clean and forgive all past due lot rents and late fees because it knows the seller is selling and a new buyer will be making payments moving forward.

This makes little sense for a park to do unless it wishes to entice a buyer to purchase the seller’s home. An example of this could be from a mobile home that is being sold by a private seller that is past due on lot rent. The mobile home park does not want the home back through eviction or abandonment and has already inspected the home to see it needs over $10,000 in rehab costs just to be considered livable. In an example like this the park may forgive all back fees and start fresh for a buyer that wishes to make the needed repairs and bring the home up to current park standards. The park forgives this amount as it is in the park’s best financial interest to avoid making the repairs themselves and instead simply continue profiting lot/pad revenue from the new buyer.

Outside of this unique scenario a mobile home park has little incentive to discount or forgive the back lot rent and late fees. Consider a private seller selling their used mobile home in a park. The seller has lived in the home and has not paid lot rent fees in 3 months. If the seller profits thousands of dollars on the sale of the mobile home the park will want it’s past due balance to be paid in full. While it takes a legal process to criminally go after a seller for back lot rent, it is much easier to demand the back lot rent be paid by the future owner, aka the buyer, prior to the buyer moving into the park. Buyers typically must become approved at the park office prior to purchasing a home inside the park. At this point the park manager will inform the potential buyer of the past due amount.

What to do after you learn that the lot rent must be paid prior to you owning the home:

As the buyer it is your added job to alert the seller to the past due amount and agree to deduct the past due lot rent and late feels from the purchase price of the home. Pay this amount yourself after closing. Do not allow or trust a seller to pay this amount on their own outside of closing.

In conclusion make sure to always have clarity in your mobile home investing deals. With this clarity comes the step by step process and understanding you will take to ensure you have purchased a profitable mobile home investment. Always talk with the park management and become approved at each park prior to purchasing any home in the park. Some sellers will push you to not speak with the management or claim they must move-out over the weekend while a park manager is not available. Again, always make sure to speak with the park manager prior to purchasing any used mobile home in a park from a seller.

 

Miscellaneous Questions

1. Are there any weird state laws I need to be aware of in my area? +

Yes. Maybe. No.

Depending what state you are in these "weird laws" may currently apply to you. Our office routinely reaches out to every State's Manufactured Housing Division every 12 months to verify current laws and restrictions have or have not changed.

If you have a "weird laws" question for your state please email support@mobilehomeinvesting.net.  No legal advice will be given, only facts corresponding to investing within your state.

3. Can I get an outline of the California Mobile Home Closing procedure? +

 

 

All California investors read below:

The reason for the creation of this lesson is to help all California investors understand the purchase and transfer of their Titles and Personal Property Trusts (PPT).  California as well as Texas, New Hampshire, and Vermont do not transfer ownership via Titles at the local Depart of Motor Vehicles or local Department of Transportation.

 

Follow the steps below to Successfully close and transfer ownership via Title(s):

 

1. Verify taxes have been paid:

Ask the seller to verify the taxes have been paid.  Mobile homes in CA are taxed either by what is called "Yearly Renewal" (a newer, online method of taxing managed by the state) or "County" (a method which is not managed by the state).  If the mobile home tag number or registration number begins with an "A" (Example: A374984674894) it is taxed with a Yearly Renewal, this means you will NOT have to obtain a Tax Clearance Certificate (a printed piece of paper from the county proving taxes are current).  If an "A" is present call 916-445-4775 to verify taxes are current.

If the mobile home tag number or registration number begins with an "L" (Example: L4846746547) the County will have a record of the tax payment information and a Tax Clearance Certificate (this certificate will be mailed to state) WILL have to be obtained from the local Tax Assessor's office (the current owner must be present to recieve this).

  • Starts with "A" = No TCC
  • Starts with "L" = Yes TCC

 

2. Create and Print

Create and Print all neccessary closing documents from this module.  Promissory Note (if making seller payments), Power of Attorney, Agreement After Closing (if seller is staying in home post sale), Personal Property Trust (always recommened).  In addition print neccessary state forms below.  All forms can be found at http://hcd.ca.gov/forms.html

Multi-Purpose Transfer Form (state form 476.6G):

 This form will be used when you transfer ownership in this home.

Use only when the legal owner or registered owners names are change. You will NOT use this form when selling benificial interest in your PPT.  Use ONLY when the tenant-buyer you sell this home to completely pays you off. Then you can use another Multi-Purpose Transfer Form to transfer the "legal owner" of the title from your PPT to the tenant-buyer's name.   Read instructions on form.

Bill of Sale (state form 475.1)

Use in place of RECFF All States Bill of Sale

 

3. Sign all forms with seller.

  1. Your Personal Property Trust is the buyer (you should be using a PPT).  The Seller is the seller.
  2. Your PPT will be named Legal Owner on Title.
  3. If the seller asks to be listed on the Title as Registered Owner then make sure he/she is listed as Registered Owner.  Registered owner is similiar to Lien Holder.  The Title will be mailed to the registered Owner.  If the seller does NOT ask to be listed as Registered Owners then do NOT list him/her as Registered Owners.

 

 

Packet to send to the Ca state.

Make sure to send these forms to the state for transfer of Title to go smoothly.

  1. Multi-Purpose Transfer Certificate (filled out and signed)
  2. Bill of Sale (filled out and signed)
  3. Tax Clearence Certificate (only if decal number starts with an "L") (Printed at County Assessor's office)
  4. Current Title (filled out and signed)
  5. Check or Money order mailed to

When your Trustee signs anything as Personal Property Trustee for your Trust they need to sign like the example below:  This is copied from a state website.

A correct example is John Smith as Trustee of Personal Property Trust #22

Definition:

Legal Owner:

This is the actual owner.  (Example: John Doe or Personal Property Trust #22)

Registered Owner:

Lien holders.  (Example: Jim Doe Management Company, Pauls Roofing)

 If you think the NADA value of the home is LESS than the price you paid for the home use this form below.  (Use your best judgement on value.) 

Certification of Retail Value and Purchase Price (state form 476.4) = The state will tax your mobile home on either the value you are purchasing the home for... OR (if you feel the NADA value is lower.  Example: you're buying for $2,000 but you think a 1977 may be worth $500 you may submit this form because you will be taxed on the lower value... either "purchased value" or "NADA" whichever is CHEAPER.  If you wish to use this form do this after you have signed all paperwork with seller and before you send off "Packet" above.  Read instructions on form.

 

 

 

4. How To Change A Texas Mobile Home Ownership Title Or SOL Inside A Park? +

 

Seller and Buyer must sign and notarize:

  1. Application for Statement of Ownership and Location ($55)
  2. Texas Seal ($35 per section/wide) if there is not currently one present.
  3. Your Bill of Sale as a reciept of the transaction.  (Not notarized)

 

1.) Create Bill of Sale

Follow the Bill Of Sale template provided for you.  Follow the instruction and examples in the DEMO version of the contract. This form is NOT notarized.

2.) [Optional] Create Agreement After Closing Contract (Only if seller remains in home after closing)

Follow the Agreement After Closing Contract template provided to current members of the Mobile Home Formula.  Follow the instruction and examples in the DEMO version of the contract. This form is NOT notarized.

 

mobile home envelope mailng pic

Mail ALL forms with CORRECT money order or cashier's check to:

Manufactured Housing Division

P.O. Box 12489

Austin, Tx 78711-2489[/features_box_grey]

  • Mail all form within 60 days of Bill of Sale date.
  • Allow 15 days for the new Statement of Ownership and Location.
Statement of Ownership and Location: In 2003 Texas changed from Titles to Statements of Ownership and Location or SOLs.  A primary reason is a way to track and tax every mobile home no matter the age or condition.  

Download forms by RIGHT clicking on the links below and "Saving as File"

  1. SOL-APPLICATION
  2. SOL-Fee schedule
  3. SOL-INSTRUCTIONS 

 

 

 

5. You seem pretty calm and relaxed. Why aren’t you more intense and flashy like other Gurus? +

Welcome back,

As I sit in my backyard couch writing this article I smile as I am reminded of all that I am thankful for and knowing the difference between "true happiness" and what I call "propaganda happiness". This article is made for the person working hard towards their dreams.

If this is you then please make sure the dreams you are chasing are 100% yours..

This past Monday I hosted an amazing Real Estate Investing club meeting here in Austin, Texas.  After the meetup was over I sat and had drinks with about a  third of the group that attended. We talked, shared stories, and traded advice back and forth for nearly three hours. Towards the end of the evening I was caught off guard by a unique question, "John Fedro why don't you seem to be as flashy as other coaches and mentors” within real estate investing."

So I began to think. Why was I not living in a downtown penthouse instead of a modest house in the suburbs? Why was I not shopping exclusively at the expensive mall in town instead of Target? Why was I not leasing a brand new car every year instead of driving my original 2005 Cadillac CTS?

The answer is because I wanted to stay well under my means.

I am reminded of the classic quote from Jim Rohn, "After you become a millionaire, you can give all of your money away because what’s important is not the million dollars. What is important is the person you have become in the process of becoming a millionaire."

Let me be clear that I am no millionaire however the answer (I feel) comes down to me being truly happy with myself and not living someone else's dream but my own.

The story below and answer the few questions below to determine some of your true happiness goals. I wish someone had done this to me when I was at the beginning stages of my investing career.

 

While growing up I lived a lower-middle class lifestyle. My family had everything we "needed" to get by. However this came at the high price of hardly seeing my mother and father on a daily basis. Except for Saturday mornings when my mother and I would go roller skating my childhood was spent in front of the television and by myself.

The time I did spend with my conventional "rat-race" chasing parents was few and far between. I still harbor some resentment towards their traditional jobs that kept them from spending free time as they desired. Thankfully now we all have a much closer relationship than before. They are retired and I am able to spend much of my free time with them. 

As I grew to a teenager I began to see traditional employment as a way to enslave me for the next 60 years. At the time I think I was the only one of my friends to vocalize this feeling. It literally frightened me to the point of panic attacks by the age of 13. The idea of working for someone else 40-80 hours a week still keeps me motivated to work only for myself.

I vowed back then to have the freedom, time, and lifestyle to be available to be with my kids and wife while they grow..

In my twenties I realized I still harbored a resentment toward corporate America and began to think of alternative methods to make money with my present skills. "But I was 20, what skills did I have?"

Enter the world of real estate investing..

This hatred for traditional employment carried with me throughout my entire childhood and to this very day. “I will not waste my life making someone else rich!” I was 20 years old and it wouldn't be until another four months until I closed my first mobile home deal making over $30,000.

mobile home investing john fedro.

You no doubt have heard the term Rat-Race. This refers to your traditional job repeating the same day after day. A rat race can be descried as an endless, self-defeating, or pointless pursuit. It conjures up the image of the futile efforts of a lab rat trying to escape while running around a maze or in a wheel.

If you are currently working hard in your "side business" so one day soon you can leave your full-time job then you are in the minority and I congratulate you. .

Slight subject change: Let us fast forward your future by 15 months. You are now making $3,500 passive cash-flow per month with your portfolio of cash-flowing properties.

Work hard now to play hard later. .

Now you have enough money to pay bill and begin to live fuller lives. In addition you may have some more free time to travel, work hard to take your significant others out of the rat-race, send your kids to a private school, pay your bills, donate to charity, take vacations, and reinvest time and money back into your real estate business.

Envisioning the Lifestyle above and answer the following questions about yourself:

  1. The people most important to me are...
  2. I will love to take multiple vacations a year with...
  3. The vehicle I drive must be...
  4. I want to be free from my full-time Job by...
  5. Once I am free I will continue to lower my debt, build my business, follow my dreams, love my family and....

There is a 2nd secret rat-race just ahead in the distance. You have finally freed yourself from your 9-5 job. You are now saving more money than ever. You are growing your business with each new deal you complete. Now here comes the 2nd rat-race trap you may never have seen coming. This second rat-race is one of "keeping up with the Jones" and questioning your self worth.  .

john fedro mobile home investing

You see this propaganda everywhere in America. One of the lowest studies I have seen states we see 247 advertisements on average per day in America. Every new model car commercial, jewelry store ads, product placement in television shows, your neighbors upgrading their new television, music videos are overloaded with these images of class and they all hint at what to buy with your hard earned money.

Always remember to be truthful to who you are. Only buy expensive toys and lavish gifts if you truly will find long lasting joy in this item, most the time you will not find this happiness you are seeking. The newest flashiest cars, toys, games, and jewels always come and go. Don’t let an ill placed purchase hurt you or your family financially.

Know your priorities and achieve them. Then relax and enjoy the rewards.

Updated:

Not until I left the country to backpack around Asia was it that I truly notice the obvious and relentless nature of American marking and advertising. Media masterminds know how to manipulate the masses by the popular vote. Don't be one of the herd, keep up the great work and I challenge you to multiply your investing efforts by 1.25 starting tomorrow.

If you have any mobile home investing questions do not hesitate to reach out and ask.

6. What is included with the Mobile Home Deal Maker Formula lifetime membership? +

 

Module 1 - Becoming a Local Expert For Buyers, Finding 50-100 Seller Leads Instantly, and Meeting Park Managers (In Parks)

  1. Module 1 Overview
  2. The Three M's
  3. Mobile Home History
  4. Singles, Doubles, and Triples
  5. Four Levels of Learning
  6. Interior Walk Through
  7. Exterior 101
  8. Common Community Restrictions
  9. Lack of Traditional Financing for Qualified Buyers
  10. Identification
  11. Natural Disasters
  12. Mobile Home Title(s) and MCOs
  13. Statements of Ownership and Location
  14. Start Building Your Buyers List (Become a Local Expert) & Alternative Methods
  15. Pre-Screening Buyers Automatically
  16. Lead Magnets: An Introduction
  17. Setting Realistic Goals
  18. Raising Investment Capital
  19. Lead Magnet: (3 Minute Leads)
  20. The Ultimate Business Card Template
  21. Know Your Target Parks
  22. Action Assignments Module 1
  23. While Driving Only Stop to Meet Park Managers If...

Module 2 - Screening Callers, Making Appointments, and Rating Homes

  1. How We May Choose to Make Money When We Sell
  2. 4 Irrefutable Traits of a Successful Investor
  3. 3 types/Stages of Sellers
  4. How Others See You
  5. Power Position
  6. Game Plan
  7. Rating Each Community
  8. Rating Each Home
  9. First OUTBOUND Call to a Seller - Dissected
  10. Using Your Questionnaire
  11. First Call Q&A
  12. Emails to Non-Appointment Sellers
  13. Lead Magnets (Set 1)
  14. A Case of the Too Desperate Seller
  15. How to Transfer Title in My County - Test Run
  16. Misc Info and Landlord/Tenant Laws
  17. Action Assignments Module 2

Module 3 - Making Winning Purchase Offers, printing Paperwork, and Closing Correctly

  1. Module 3 Game Plan
  2. Meeting the Park Manager - Warm
  3. Meeting the Sellers
  4. Checklists and Repair Cheat Sheet
  5. How Much Can You Resell this Home for?
  6. Create 3 Purchase Offers Per Home
  7. Present Offers to Sellers
  8. Live Examples: Making Your First 3 Offers to Each Seller
  9. Partnership Purchase Offer in Parks (For Most FSBO with High Monthly Fees)
  10. Make This Offer to Every Seller Asking Over $20,000 (Only if you went to an appointment with this seller)
  11. Negotiation Examples
  12. Help Remembering When to Follow-up with Past Sellers
  13. Applying at the Park
  14. Verifying (Personal Property) Taxes Have Been Paid
  15. Purchase Forms: Mobile Homes in Parks
  16. ALL STATES Closing & After Closing Procedure
  17. Personal Property Trusts ( Forms Needed to Sell)
  18. California Title Transfer (Before and After Closing Specifics)
  19. Texas Only - Pre-Closing Procedure
  20. Texas Only - Purchase Forms, Closing, and Post Closing Procedure
  21. Vermont Title Transfer: Before, During, and After Closing
  22. New Hampshire: Before, During, and After Closing Procedure
  23. West Virginia: Before, During, and After Closing Procedure
  24. Case of the Unhappy Lien Holder
  25. Action Assignments Module 3

Module 4 - Repairs, Marketing,  Reselling for Maximum Profit,  and Hands-Free Management

  1. Module 4 Overview
  2. What Repairs to Make
  3. Repair Examples
  4. Your Ideal Buyers
  5. Clean and Market the Home for Sale
  6. Marketing the Home - Blitz
  7. Automated Selling Funnel in Parks
  8. Background Check
  9. Property Insurance Once Sold
  10. Approved Approved! Set up Closing Time
  11. 4 Ways to Make Profit
  12. Selling Cash-Flow #1. Core Selling Paperwork
  13. Selling Cash-Flow #2. Selling Addendums
  14. Selling Cash-Flow #3. Buyer;s Repair Agreement
  15. Closing at the Mobile Home (Selling)
  16. New Hampshire: Selling a Mobile Home in a Park [Cash or Payments]
  17. Collecting Payments
  18. Management 1 and 2
  19. Transporting a Mobile Home
  20. When Your Buyer Completes All Payments to You

Module 5 - Becoming a Local Expert For Buyers, Finding 50-100 Seller Leads Instantly (MHs On Private Land)

  1. Module 5 Overview
  2. Manufactured Homes on Land 101
  3. Familiarize Yourself With Your Farm Area
  4. Lead Magnets (Set 2)
  5. "Mail Merge" Time Saver for Mailing Letters
  6. Become an Expert in Your Area for Mobile Home Buyers (for Land)
  7. Action Assignments Module 5

Module 6 - Understanding Your Purchasing Methods, Power Team, Trusts, and Paperwork

  1. Module 6 Overview
  2. Know Your Exit Strategy
  3. First Phone Call To and From Sellers (2 videos)
  4. How to Estimate "After Repaired Value" (Finding Comps)
  5. Subject To (Intro)
  6. Land Trust Agreements
  7. 8 Steps of a Successful Subject to Deal (Birds-Eye)
  8. Important Mortgage details and "The Due on Sale Clause"
  9. Verify Mortgage Info and Property Taxes
  10. Action Assignments Module 6

Module 7 - Knowing Your Sellers, Creating Win-Win Purchase Offers, Negotiations

  1. Module 7 Overview
  2. First Meting with the Seller
  3. Checklists and Repair Cheat Sheet
  4. Creating Your All Cash Offers
  5. Creating Your Payment Plan Offers
  6. Word Problem
  7. Present Crafted Offers to Sellers
  8. Second Meeting with the Seller
  9. Follow Up Campaign
  10. Closing Procedure When Buying with Land
  11. Wholesaling Mobile Homes on Private Land
  12. Intro to Closing Documents
  13. Lead Magnets (Set 3)
  14. Action Assignments Module 7

Module 8 - Paperwork, Marketing, Purchasing

  1. Module 8 Overview
  2. Creating Your Closing Paperwork (Buying with Payments)
  3. Creating Your Closing Paperwork (Buying with Cash)
  4. Closing Procedure
  5. Marketing the Home - Blitz
  6. Finding Sellers- Additional Magnets that Get Results (Set 4)
  7. Action Assignments Module 8

Module 9 - Repairs, Advanced Marketing, Reselling, and Hands-Free Management 

  1. Module 9 Overview
  2. Selling Strategy on Land
  3. Selling Price and Terms
  4. The Automated Selling Process on Land
  5. What Repairs to Make
  6. Repair Examples
  7. Buyers Objections and Concessions
  8. Your Ideal Buyers
  9. Collecting Payments
  10. Background Check
  11. Selling the Property for All Cash
  12. Creating Paperwork and Signing (Selling with Payments)
  13. Taxes and Insurance on Land
  14. Management on Land
  15. Closing on the Property (After 24 Months of Payments)

BIG Bonuses

  1. Lease with Option to Purchase when Selling in MH Park
  2. Wholesaling Mobile Homes Inside Parks
  3. MAO in Parks = Maximum Allowable Offer
  4. Subject 4 Purchase Technique on Land
  5. 1031 Exchange Introduction and FAQ
  6. Marketing Tools for Finding Sellers

Unlimited Email Coaching 

  1. Access to Future Classes
  2. Past VIP Group Coaching Calls and Lessons
  3. Private Membership into the MHF's members only Facebook group
7. How to I estimate the cost of an entire mobile home park? +

Welcome back,

As an individual mobile home investor or mobile home occupant you are already in and around mobile home communities most days. Since you are already in the mobile home business why not start considering owning a complete mobile home park of your own.

By the end of this article you should have a better understanding of how to quickly analyze whether a mobile home park seller is asking a competitive, fair, average, or inflated asking price for his or her mobile home park for sale.

You likely already understand that individual mobile homes are lucrative. Investors that start buying, renting, and selling individual mobile homes inside parks can find themselves wanting to own an entire mobile home park themselves. This can be compared to going from the minor leagues to the big leagues.

mobile home parks for sale

While individual mobile home investments are my typical topic of choice this article concerns helping you quickly evaluate the asking price of a complete mobile home community in relation to the income and capitalization rate.

First let us have a basic understanding of the following 3 factors.

All three criteria you will hear from the seller or their Realtor.

1. Net operating income:

For the purposes of our quick calculation this net operating income or NOI will be based on the calender year worth of income. To calculate this number you will add up all the mobile home park rents and other income for the year and subtract all the legitimate expenses during the same year. For the purposes of the quick calculation do not take into account any mortgage payments or interest paid on mortgage loans.

2. Asking price: 

A seller can ask any price they wish for their park. Looking through a listing service of mobile home parks for sale you will see mobile home parks in all price ranges, all sizes and conditions. Some communities have been on the market for a year or more and others have sold after only a few days.

3. The Cap rate:

The capitalization rate is the yearly rate of return the average investor can expect to earn on that type of mobile home park. Your local capitalization rate is determined with a bit of math and a bit of experience. Cap rates change based on the risk, location, and other factors of the park. This number will be in the form of a decimal in the calculations below. There are typically 3 cap rates involved in each mobile home park for sale you see, you will only use one.

  1. There is the cap rate the investor-buyer wishes to earn.
  2. There is the cap rate the seller expects.
  3. There is the cap rate given from an experienced property appraiser.

Using the asking price, cap rate, and NOI above we can now determine a quick understanding if the price matches the income. 

Price of the mobile home park X Cap rate = Net operating income

Example: $200,000 X 0.1 = $20,000

Said another way.

Net operating income / Cap rate = Price of the mobile home park[

Example: $20,000 / 0.1 = $200,000

Using this quick formula can give you the confidence to explore or pass quickly on a potential mobile home park investment. The above quick calculations are only the tip of the iceberg when it comes to proper due diligence with regards analyzing entire mobile home communities for sale.

In addition to the 3 criteria above there are also:

  • Infrastructure issues to consider
  • Utilities
  • Rent rolls
  • Management
  • Financing
  • City demographics
  • Empty pads in the park
  • Extra build-able land included in the sale
  • The number of mobile homes that convey with the price
  • Any single family homes or other buildings that convey
  • Current zoning headaches
  • Future path-of-progress plans
  • Your desired exit strategy
  • And many more factors to consider.
8. Which expectations are most harmful as a real estate investor? +

Welcome back,

As real estate investors our businesses often times revolve around the decisions of other people. While purchasing property we often times can find ourselves mentally crossing-our-fingers or saying our prayers in hopes a seller or buyer will make a decision which favors our wallets. These unnecessary and ill placed expectations can often times lead to misunderstood suffering and anxiety in your real estate business.

For the health and well-being of your business and sanity keep in mind that there are some activities and decisions you can control, and others you cannot control. Keep focus on the items within your control and eliminate the expectations of the others from your mind.

A few tasks and decisions on which you may not want to place high expectation:

  1. A seller's decision to accept your purchase offer
  2. A buyer's decision to buy your property
  3. Your buyer becoming approved by his/her lender for financing
  4. Any underwriting decision
  5. Your handyman's productivity
  6. The speed of your closing company, bank, lender
  7. Setting an appointment with any specific fsbo before you first call them

A few tasks and decisions on which you may want to place high expectations:

  1. How many offers you make per day/week
  2. How many new fsbos you call per day/week
  3. How much effort you exert on advertising and marketing your business
  4. How much you network with other investors
  5. How much effort you put forth in your business
  6. Which escrow companies or attorneys you work with
  7. Which sellers and buyers you work with

As touched on in the bullets above the only tasks and items you may wish to place high expectations upon are the tasks and items which depend on your direct and complete activity. If you succeed or fail in performing these tasks then the success or failure is solely on your shoulders. When you start including other people, either buyers, sellers, assistants, closing attorneys, outsourcers, contractors, handymen, title agents, etc you have less and less control. This is not a negative or a positive, it simply is something to understand and compensate for.

In short, items and tasks which only involve your physical and mental energy to perform are within your control. Any items or tasks you outsource are outside of your control. Place high expectations on items that you solely control - these expectations with time deadlines are often times called goals.

When real estate is involved tasks often times have the outcome of taking longer and costing more than expected to complete. For this reason it can be sage advice to expect things will take twice as long to complete and three times the amount of capital as expected. Whether you are accounting for holding costs, repair costs, marketing, selling time, or repair time always err on the side of caution and factor in extra time and costs in to your deals.

Be the happiest real estate investor you can be. The less stressed and less you suffer the happier and more likely you will be to consistently put forth effort in your investing business and take daily action.

9. Please tell me about heating and cooling units inside mobile homes? +

Welcome back,

Mobile homes and manufactured homes utilizes many of the same features and mechanical systems when it comes to heating and cooling a traditionally built single family home. Below is a list of the most popular heating and cooling systems used in many mobile homes today and the last 40 years.

Split-Unit Central Air Conditioning:

central ac unit image

Around the time I was ten years old my family upgraded our New Hampshire ranch-style house from window air conditioning units to the now common place Split-Unit Central Air conditioning units that force cooled air throughout the entire home via a series of under-floor or above-ceiling air ducts. Ducts (pronounced ducks) are closed passages running from the home’s air-handler or less commonly known "forced air furnace" to vents typically located underneath the mobile home’s floor.

The reason for the name “Split-Unit” is to signify that this air-conditioning system uses 2 separate appliances to force cooled air throughout the home. The exterior Compressor/Condenser is the component which sits outside the home and an Evaporator also known as an Air-Handler sits inside the home. Attached to the Evaporator is a fan which blows conditioned air throughout the home. Occasionally some mobile homes will have both these units in one location located inside the home, hidden inside a specially built closet typically near the kitchen or in the main hallway.

New base model units are often priced between $2,000-$4,000 however may be found on Ebay and Craigslist for as low as $1,200 and as high as $10,000 depending on the size you need for your home. This price may or may not including installation. As these units are seldom moved after installation in many areas you may likely need a city or county permit in addition to a licensed contractor to install a central air conditioning unit. As the home owner or beneficiary of your establish personal property trust (in an investor) you can likely pull permits for this yourself if you act as the general contractor.

How to troubleshoot your Central Air conditioning unit

Gas and Electric Furnaces:

furnace image

A furnace is comprised of a heating device either gas or electric (electric typically being the least efficient) and an air circulating fan which blows heated air into the home's ducts and into the interior of the mobile home. Furnaces are typically small enough to be located inside a special closet in your mobile home, typically located near the kitchen or in the main hallway. Your home's furnace should be properly maintained yearly to avoid damages and for regular cleaning. Filters should be changed every 3 months to avoid costly problems. Used units on Ebay and Craigslist start for around $500 not including installation. Any cost associated with these needed repairs at the time of you purchasing should be factored into all purchase offers for the seller's mobile home.

How to troubleshoot your electric furnace

How to troubleshoot your gas furnace

Air-Source Heat Pump:

air source heat pump

Heat pumps both cool and heat mobile homes. Although less well-known then central air-conditioning units above, heat pumps are generally more efficient and less expensive to own and operate. Simply put a heat pump works by exchanging warmth for cold in the summer months and cold air for warmer air in the winter. A heat pump can stand alone and looks very similar to an exterior compressor/condenser portion of a traditional central-air unit.

Heat pumps do have limitations with heating a home when the exterior air temperature drops below approximately 35 degrees Fahrenheit or 2 degrees Celsius. This is one reason heat pumps are less commonly seen in the Northern half of the United States unless they are geothermal heated.

Common problems with your air-source heat pumps

Swamp Coolers:

swamp cooler image

Also known as Evaporative coolers, wet-air coolers, and desert coolers these units are self-contained and use the action of evaporating a liquid into the air being pushed into the home to lower the interior temperature of the home. Swamp coolers use ducts in the same ways furnaces and split-unit air conditioners work to distribute air evenly throughout the home. Swamp coolers are generally found in drier states and can decrease the internal temperature of a home by as much as 40 degrees. Be aware of roof mounted units as these often contribute to roof leaks over time.

How to fix a leaking evaporative cooler

Portable Window Units:

window ac image

Most of us are familiar with this common form of cooling (and less occasionally heating) our homes. If you choose not to repair your broken central A/C unit or install a new cooling unit as listed above you may opt to install individual window air conditioning units to cool localized sections of your mobile home. You may even choose a window unit that contains a heating element to heat a room when the exterior temperatures are cool. These units work well for cooling and heating the room in which the window unit is placed. If your investment mobile home is located inside a pre-existing mobile home park be sure to check with park manager and park guidelines about installing window units in your home as some parks have rules forbidding window units as they detract from curb appeal.

Troubleshooting your window air conditioner units

Verify All Heating and Cooling Systems Work Before the Time You Purchase:

check all systems

As a rule of thumb always-always-always verify all mechanical systems work or do not work before you purchase any property. If the mobile home seller states the units are working correctly, personally take the time to verify each appliance is in proper working condition. If you do not feel hot or cold air blowing when the unit is on you may assume the worst until proven otherwise. Hiring a licensed professional will satisfy most questions quickly. Once a professional has been consulted you may now correctly renegotiate a proper price for this home. If no electric power is on to the home I personally will have power turned on to the home once price and terms are negotiated. I will then renegotiate if the unit is anything other what the seller has promised. If the seller was lying and the unit does not work I would double-check other concerns the seller may have also lied about.

When discussing heating and cooling options for a used mobile home inside a park we must remember that price and performance are a big key. While your tenant-buyer, resident, tenant, and you all want the home to remain cool in the summer and warm in the winter no one wishes to add thousands of unforeseen dollars to the cost of this mobile home if unnecessary. It is with this in mind that correctly testing and fixing an existing mechanical unit may always be your first line of defense before installing a new one. Network with active investors, tradesmen, and EPA certified handymen now in your area to find great deals on new and used heating and cooling systems for your next mobile home investment.

10. Approximately how many mobile homes are there in each state? +

Welcome back,

As mobile home investors the more supply of local mobile homes the more opportunities you have to help sellers and make a profit by fast turning or holding mobile homes. I recommend having a 100 miles investing radius for finding and owning mobile home properties to everyone I help.

With that said it can be helpful for you to know how your state stacks up compared to others. Keep in mind that within every state there will be entire zip-codes, neighborhoods, and cities that will have many more mobile homes compared to other areas. These areas will be good places to farm for mobile home sellers.

Do you know the percentage of mobile homes and manufactured homes (out of all the housing units in existence) in your state?

See the graph below from 2004 (last year available) via Statemaster.com via the American Community Survey. In the below article the terms Mobile home and Manufactured home are used interchangeably.

As you can see mobile homes are spread out throughout the United States.

In areas with high amounts of mobile homes a mobile home investor can have a busier time investing compared to other areas with fewer mobile homes present. I have had the pleasure of mentoring motivated investors that travel 150 miles to routinely invest in inexpensive mobile homes.

In reality you can invest in every state. Different rules and laws apply to every state. If you have any questions email me at support@mobilehomeinvesting.net.

On the other side if you have only a few mobile home communities or mobile homes located around you then you will want to spend your time with multiple niches in real estate. Mobile homes can be the main course of your business or just another bullet in your investor's tool-belt. The important thing is to get your first deal as quickly as you can - without sacrificing quality of course.

No matter your situation or region there are likely sellers and buyers to help this very day. Follow the advice and leadership of someone you trust to begin or continue your investing career.

It has almost been 6 great years since I begin writing my first real estate investing blog over at wordpress.org in 2007. Thank you to everyone who has helped make this site great with your comments, suggestions, questions, and support. In return I hope I have provided quality content and value (in your daily investing life) to you already in addition to much more to come in the near future.

11. I have a GREAT mobile home park/website/skill/service/investing tip/case study/or something else note-worthy I would love to share with mobilehomeinvesting.net's readers. Is it possible to post this live on the mobilehomeinvesting.net/blog page? +

the thinker mobile home investor

Hello,

Thank you for the interest in looking at this page. If you have a mobile home park, website, mobile home related skill, mobile home related service, manufactured home investing tip, Mobile Home Formula case study, or something else please feel free to reach out to me at support@mobilehomeinvesting.net.

Look forward to hearing from you,
John Fedro

 

 

 

12. I own or manage a Mobile Home Park in the US and would like to post a Blog article promoting my park to local investors who will help buy and fill my empty lots with mobile homes. Is this possible? +

Hello,

Thank you for the interest in looking at this page. If you have a mobile home park, website, mobile home related skill, mobile home related service, manufactured home investing tip, Mobile Home Formula case study, or something else please feel free to reach out to me at support@mobilehomeinvesting.net.

John Fedro

 

If you do not see your question here please ask it below.

 

.

 

174 Comments

  • scott

    Reply Reply May 25, 2013

    Can you break down the cost of your program?

    • John Fedro

      Reply Reply May 25, 2013

      Hi Scott,

      Thank you for your interest. My programs range from online study courses to 1 on 1 Apprenticeships. The cost is high to discourage unmotivated people from half-assly using my methods and flooding the market place. I am however running a special offer currently. If you click the “Training” tab above you’ll discover my current promotions and much more about both programs.

      Best,
      John

      • Heather

        Reply Reply March 24, 2017

        Hey John,

        I was wondering if you have a 26 x 66 double wide mobile home and you are trying to get a title bond. on the bill of sale I know you have to have 2 one for each side. so would you put that the measurements are 13 x 66 on each bill of sale?

  • Bob Murphy

    Reply Reply May 28, 2013

    My Questions Are: (1). Do you have experience Just Wholesaling Mobile Homes ? (2). If so, will you please share the pros and cons of your experience ? (3). If not, will you please share the pros and cons explaining why not ?

    Thanks in advance for your anticipated help.

    Respectfully,

    Bob Murphy

    • John Fedro

      Reply Reply May 30, 2013

      Hi Bob,

      Yes, I have experience wholesaling mobile homes in parks, on private land, even wholesaling MH options. I will assume you are referring to mobile homes inside parks for the duration of the answer. If I am incorrect please let me know and I will discuss the other strategies.

      Wholesaling mobile homes inside parks is about understanding your market, finesse, and full disclosure. In many states even with a Purchase and Sale contract you can be undercut by a greedy seller if he/she decides to sell the home to your buyer and circumvent you.

      Some immediate pros I can think of is that this is a good method to make money when you do not wish to purchase a mobile home due to some other risk reason. Let’s say you want to try to help the seller but don’t want to risk your money due to your unease about the park location, home size, park restrictions, repairs, or other. Wholesaling or taking Options allows for you to help and risk no money. Another Pro is that you are able to build rapport with this seller and park manager while you attempt to wholesale in case you do wish to purchase for a song down the road, when the seller may be more motivated.

      Some immediate Cons are that you do not receive cash-flow, but instead one lump-sum payment. Depending on the area this sale can be easy or time consuming. You may be circumvented by a greedy seller.

      Hope this helps.

      Best,
      John Fedro

  • Brian

    Reply Reply August 6, 2013

    Do I need to register a mobile home when I buy it since it has a title? I am in AZ. Thank you!

    • John Fedro

      Reply Reply August 7, 2013

      Hi Brian,

      Thank you for commenting. Yes, you will need to transfer and register a used or new mobile home every time the home changes ownership. Is this what you meant by registering the home?

      Talk soon,
      John Fedro

  • Geena Gador

    Reply Reply September 1, 2013

    I live in Canada. Are your methods applicable to mobile homes in Canada? Can I adapt your forms and techniques to Canadian sellers and buyers?

    • John Fedro

      Reply Reply September 2, 2013

      Hi Geena,

      Thanks for commenting. Great question. In Canada there certainly are some different rules and paperwork to follow. With that said the methods we have to find, attract, create offers, negotiate, renegotiate, and manage a home will transfer with my formula. In module 2 I show you where to find local paperwork that you will need to close and also learn how to use it. In short you will be able to make profit if there are local MHs around you.

      Does this make sense? Hope this helps.

      Best,
      John Fedro

  • Eva

    Reply Reply September 7, 2013

    I have a lot of questions. I’m not looking to be a realtor or anything of that nature.. but I am in a situation trying a move my mobile home and really don’t know how or where to start and I’ve been googling all night and i’m more confused than I was to start. Do you have any wisdom that you could share with me through emails.? I know that you’re not in my area, but maybe your advice could work here.? Thanks.

    • John Fedro

      Reply Reply September 8, 2013

      Hi Eva,

      Thank you for reaching out to me on this. It is so important to have clarity in your options and then to comfortably choose the best option for your needs/wants. Contact me at support@mobilehomeinvesting.net with your questions and concerns and desired outcome.

      Happy to help and Talk soon,
      JOhn Fedro

  • Craig

    Reply Reply September 12, 2013

    So far I’m reading a lot on this site about buying selling mobile homes. How are they for buying for rental properties?

    • John Fedro

      Reply Reply September 12, 2013

      Hi Craig,

      Thanks for reading. I hope you are gaining value in the material.

      You raise a good question about renting. I discuss this a lot in my back-end member’s only area but don’t believe I have ever wrote an article on the subject. You have inspired me to do so in an upcoming article, thank you.

      With that said I have rented MHs with mixed results. Mobile homes are best for selling to buyers that make us timely monthly payments and take care of the home – like only an owner would. Bottom line is that when you rent, you will have renters in your home. I am not insinuating that all renters will tear up your homes, far from it. However most renters will be relaxed about small water spills, pet control, curb appeal, minor repairs, etc. These issues can add up quickly in a mobile home.

      In short if you wish to rent stick to block built SFR in nice areas. If you want returns on your money that MHs provide then sell and reduce your management and headache to almost zero.

      If you do feel strongly about renting mobile homes than I would advise you, or preferably your handyman, to walk through the home monthly to verify condition. You can always use a simple excuse of pest control spraying. Another strategy is to own both the land and the home, then rent the land and sell the home.

      Let me know if you have any further REI specific questions or ned me to clarify the above further.

      best,
      John Fedro

  • Laurie

    Reply Reply September 23, 2013

    John,

    Can a mobile home park sell previously lived in models in their park (they own the homes) and require the home to stay in their park? Thanks, Laurie

    • John Fedro

      Reply Reply September 23, 2013

      Hi Laurie,

      Yes a mobile home park can sell homes that the park now owns. This inventory can come from brand new homes just moved into the park or previously lived in homes the park has purchased from the previous owner or through the previous owner abandoning the home and the park taking the Titles though legal means. Finding homes for sale through a park, versus through an owner-occupant is a popular method for finding inexpensive mobile homes that may or may not need repairs.

      Hope this helps. Let me know.

      Best,
      John Fedro

  • John

    Reply Reply October 2, 2013

    Hi John, I have a question for you,what happens if you are selling a m/h with payments and a promissory note in place,and the buyer stops paying you but pays the lot rent only? What recourse do you have to protect yourself? Thank you.

    • John Fedro

      Reply Reply October 2, 2013

      Hi John,

      The answer is “it depends”.

      This really depends heavily on what paperwork and closing procedure you use to sell the home. For the members I help it is a simple process of reverting interest in the home back to your company or your name and then simply evicting the tenant as they are in default. This is a very quick procedure.

      With that said if you fill the home and they default on you this is not a low-risk buyer. In the beginning of my career this happened to me all to often until I began screening people much more thoroughly and with a specific goal in mind. Now I am happy to say we only sell to high-quality and low-risk tenant-buyers and our turn-over rate is next to nothing.

      I hope this makes sense. Please let me know if you have any follow up question from this or other matters.

      All the best,
      John

  • Jon Freeman

    Reply Reply October 14, 2013

    I am looking at buying a mobile home in San Diego, near downtown for around $100K. Projected rent for this large mobile home is $1500/month. Ultimately after living in it for a couple of years I want to rent it out for a positive cash flow. Do parks in California allow you to rent out your mobile home or do they require you to sell it if you as the owner occupant are not going to live in it?

    Thanks much,
    Jon

    • John Fedro

      Reply Reply October 14, 2013

      Hi Jon,

      The experience and knowledge I use to invest with and teach to others aims to stay away from homes this high of a price. Also in these areas there is much demand pushing home prices up to what I consider “unreasonable” based solely on my experience and business model.

      With that said I do not mean to discourage you from buying what I must assume is a gorgeous home in a stunning area in one of the most popular areas in the country. To answer your question many parks will not allow you to rent a mobile home within their walls. You will however likely be able to resell and collect monthly payments for the property. If you sell it will take years to recoup your money based on your figures.

      Can I ask why you have chosen this home and this area? I hear that you wish to live in the home as well. Can you purchase one that may need some repairs and/or from a motivated seller will sell for a discount? This way you can pay less and perhaps clean the home while you live there. Then you can resell for the same numbers you’re talking about now. Does this make sense? Thoughts?

      Talk soon,
      John Fedro

  • Benjamin Calamer

    Reply Reply November 2, 2013

    How much is it going to cost me about your package/program?
    Please, confirm and respond.
    Thank you.

    Benjamin Calamer.

    • John Fedro

      Reply Reply November 3, 2013

      Hi Benjamin,

      My training varies in cost and one on 1 attention. All programs I work my best to move you forward and be available for you to succeed. I believe without dedication from an experienced mentor/investor it will difficult to invest yourself. This business is very possible without much capital and credit. One thing that is absolute needed is your dedication to help sellers and buyers and motivation to push through anything that comes your way.

      I hope this helps. Please see my “trainings” tab above for more info on each program and current promotions.

      Talk soon,
      John

  • Frank Morizzo

    Reply Reply December 4, 2013

    Hey John,

    Love the site and your training. Looking forward to getting started with you and your team.

    One love,
    Frank

    • John Fedro

      Reply Reply December 5, 2013

      Hi Frank,

      Thank you for the kind words. Glad to hear you have an interest in mobile home investments. Do not hesitate to ask further questions before getting starting. MH investing is an amazing business however it may not be right for everyone. If/when you get started I would be happy to help you in your local market and give you complete clarity in this business.

      Talk soon,
      John

  • Annette Wenly

    Reply Reply February 11, 2014

    Hello John,

    Thank you for answering my questions here and through email. I love that you gave me a great reply via email and then you added the question here. Shows you really do wish to help others just as much as you have helped me. Please keep up the great work.

    Best wishes,
    Annette Wenly

    • John Fedro

      Reply Reply February 12, 2014

      Hi Annette,

      Thanks for commenting here. Of course I am always here for those folks that need help or assistance. Thanks for reaching out and if you have any other questions do not hesitate to ask.

      All the best,
      John Fedro

  • Brian

    Reply Reply February 27, 2014

    Hi John. Thanks for answering my previous question about registering each mobile home. All I had to do was go to a 3rd Party DMV place and they charged $17 to transfer the title and file with the DMV. Simple.

    My new question is related to Taxes. I have bought, fixed up, and then sold a couple of MHs using seller-carry with $500 down. Am I able to write off the acquisition cost and the cost of labor and materials used to fix these units up since they are not “real-estate” but “personal property”.

    Thanks in advance!

    Brian

    • John Fedro

      Reply Reply February 28, 2014

      Hi Brian,

      Congratulations on the purchase! Happy to help. Glad you had such quick results.

      I am not a tax professional however in my experience you will not want to deduct the repair cost or purchase price as a business expense. Instead the purchase price and repair costs will not be a write off, these 2 numbers will go into calculating what your overall profits were on the property. You will eb taxes on these profits.

      Example: Purchase home for $6,000 and added $2,000 of labor and materials. Sold for $20,000. My taxable amount is $12,000. I hope this makes sense. Let me know.

      Talk soon and keep in touch,
      John

  • Scitt Warren

    Reply Reply March 24, 2014

    Do you have any info on depreciation on a mobile home for federal tax returns?

    • John Fedro

      Reply Reply March 24, 2014

      Hi Scitt,

      Thanks for commenting. Not at the moment. Great suggestion and while I can give some advice and guidance I truly think that bringing on an expert to discuss the topic within the next few articles will be best.

      Talk soon,
      John

  • mason valenzuela

    Reply Reply March 24, 2014

    I have a question about your program, both the self study and 1-on-1. Can they be done remotely?

    I ask because I just started trucking, on the road 2-3 months at a time, with the goal of paying off debt and to finally save the money I need to begin my portfolio. However, being gone so much with less than 5 days at home, when I do get home, makes the prospect of getting my portfolio started seem low.

    • John Fedro

      Reply Reply March 25, 2014

      Hi Mason,

      Good question. No it does not. It has always been my experience to work directly with the sellers and buyers for best results. While you can speak with sellers and buyers remotely you will need someone at the homes to go on appointments, take pictures, be like-able, sign paperwork, and other on-sight activities. It sounds to me that you do not have the time to find, fix, network, and organize a deal. With that said what you can bring to the table is money to invest with. As you know you must bring value to every deal. What is it that you see doing with regards to working with buyers, sellers, and the home??

      Talk soon,
      John

  • mason valenzuela

    Reply Reply March 25, 2014

    Ideally, I want to do everything on my own. Excluding major construction. I may have 1 or 2 people who can do grunt work for me. Personally, though, I don’t like delegating tasks. If I can’t do something alone, I generally quit. Self sufficiency is very important to me. But, I’ll try to talk my friends into working for me until I can find a local driving job.

  • dan doll

    Reply Reply April 20, 2014

    forgot to say its in Tucson,az thanks dandoll

  • traci whitlow

    Reply Reply June 5, 2014

    My mom just past away may 6, 2014, she lived in a 55+ senior park. my brother has power of attorney asked for me to have estate sale & park manager gave me an 24 hr eviction notice may 12. To vacate mh by may 19 which was day after funeral. Im 46 disabled w kids am i able to live there? Thanks traci

    • John Fedro

      Reply Reply June 9, 2014

      Hi Traci,

      Thanks for reaching out to me about this issue. First off I am so sorry to hear about your mother’s passing. If she was current in her lot rent then there is no reason the park should be evicting the home versus allowing you to resell it. If the park lot rent is past due then pay this balance asap so that you can keep the home to either live in or resell.

      Concerning your question about living in the home. Some 55+ parks will allow for a small portion of their occupancy to be below 55 year old owners. However, rarely have I seen a 55+ park allow an adult to live there with kids (minors). Typically no minors are allowed to live in the park at all. This is likely the case with your park too however I would double-check or sure.

      What reason is the park evicting you for? Are you able to bring the lot rent current? What city and state are you in?

      Talk soon,
      John

  • Rex Stevens

    Reply Reply September 10, 2014

    Hi John. This is great information and has already cleared up a bunch of misinformation I have been assuming about mobile homes in gernal, not to mention the investing side. I will be in touch with more questions as them develop. Do you offer at home training?

    Rex

    • John Fedro

      Reply Reply September 10, 2014

      Hi Rex,

      Thanks for the kind words and I am very happy to help. Keep any and all questions coming, that is the best way to learn. Concerning the at home training, I do offer online training that is very in depth and action based. If you would like more info please don’t hesitate to email me about it.

      Talk soon,
      John

  • Charlie Hamm

    Reply Reply September 13, 2014

    Truly great work John! Thanks for sharing your info. I truly appreciate your efforts in this field. I know Lonnie would be proud of you.

    Charlie

    • John Fedro

      Reply Reply September 13, 2014

      Hi Charlie,

      Thank you so very much for the kind words. If this site helps bring clarity to investors and sellers of MHs alike than I will be happy. I have made too many mistakes to count and hate to see other investors and sellers not understand why their successes suck. This business is not difficult but it does take daily action and a specific plan. If you have any specific MH questions don’t hesitate to ask me.

      Talk soon,
      John

  • Betty in Ca

    Reply Reply September 23, 2014

    Hello John,

    Thanks for every great article there. The place is a wealth of mobile home info for active investors.

    I have a class presentation next week on MH investing and this will be an excellent source.

    Betty in Ca

    • John Fedro

      Reply Reply September 25, 2014

      Hi Betty in Cal,

      Thanks for the kind words and commenting. If you have any specific Mh questions don’t hesitate to ask. Let me know how the presentation goes. I hope it is a “mobile homes have benefits” presentation and not a negative review of MHs like so many other traditional non-active investors and non-knowledgeable folks have for these movable homes. Here to help you moving forward.

      All the best and talk soon,
      John

  • Colleen M Dowell

    Reply Reply September 28, 2014

    Absolutely love the site John. Keep it up. The 2 major questions that have been bothering me for a while were listed above and make total sense.

    Thanks again and I def will be back.

    Colleen in TX

    • John Fedro

      Reply Reply September 29, 2014

      Hi Colleen,

      I am so glad you have already received value from the site. If you have any specific questions about MHI please don’t hesitate to reach back out to me..

      Talk soon,
      John

  • chris carter

    Reply Reply October 6, 2014

    Hi John I live in el cajon Ca which is in San Diego. I have a mobile home owner who is extremely motivated. He said he just wants to get rid of it, have enough money to take his family to dinner and pay for a hotel and moving truck. He will accept payments. I just need your help structuring it, paperwork and selling it. Not sure how to do it with the new laws. Do you want to partner up
    Thanks
    Chris Carter

    • John Fedro

      Reply Reply October 6, 2014

      Hi Chris,

      Thanks for contacting me here. I have already sent over a private email to you with my thoughts of this matter so lets just keep in touch there. Additionally when you get into town let me know.

      Talk soon,
      John

  • Rebekah Ernest

    Reply Reply October 14, 2014

    This is not a response, but a question if I may. I live in a mobile home community when things go wrong in parks, it’s hard to find legal help.
    I own my mobile in a park where I pay rent. A low-life used a snow shovel to let me know he didn’t like my music. I sued; he ran off to Alaska 3 months when he came back the money he mad fishing in Alaska he purchased a mobile home $2000.cash in the same park where I still live. New Horizons Mobile RV Fresno Ca 93722 I sued again and won a money judgement. no money he has. so I filed a writ and lien. Just last week he walked away from the mobile home he purchased. What can I do to make sure I get his mobile home I put a lien I really need your help I’m going back to the court house to file a writ of sale. do you know a faster way? Rebekah Ernest

    • John Fedro

      Reply Reply October 15, 2014

      Hi Rebekah,

      I regret to hear about your situation. Neighbors can be friendly or a nightmare. Good for you for pursing this guy through the court system and at least getting judgements on him. It blows my mind that the park manager would allow this guy to come back into the same park after your experience with him and the judgement on his record. It does not surprise me though that this guy didn’t pay you. If you do have a lien on him mobile home then a call to the Housing & Comm Development Registration & Titling at 916-445-4782 should help give you the process and paperwork filing that must happen in order to exercise your lien.

      Do you have a lien on the Title of the home? In California you should be listed as Register Owner on the title for this lien. Or did you get a judgement from the court for the home? If you are able to obtain your writ from the court you will be home free. The Title should then be Titled into your ownership. While all this is happening make sure to keep the park manager up to speed and the fact that you are owning this home. If the park rent is behind you will likely have to pay this or work out something with the park for 1/2 the back lot rent or something else.

      I hope this helps. Do keep in touch and let us know how this resolves. When you do get the property back what are your plans to resell the home?

      Talk soon,
      John fedro

  • Shonney Barker

    Reply Reply October 14, 2014

    Hi John, This site is really great. I don’t have a question I just wanted to say I’m really enjoying reading and learning about this kind of real estate investing.

    Sincerely,
    Shonney Barker

    • John Fedro

      Reply Reply October 15, 2014

      Hi Shonney,

      Thanks for stopping by and for reading. If you have any specific questions don’t hesitate to reach out.

      Best,
      John

  • Ann Bil

    Reply Reply October 15, 2014

    Hello John-
    I’ve been glued to my computer for the last few days going through all your videos and articles. Excellent information!
    I’m in San Diego. I use to flip SFR’s until the market changed. I’m now doing my research and due diligence before jumping into the MH arena.
    I’d like to confirm some information with you and get your feedback.
    We have a few rent controlled parks and I was told that MH’s in those are highly desirable to flip. Although some of those parks increase the rent every time a home is sold, about 10%, in one case. But in general, are those good parks, or does it depend?
    I’ve been scouring the MH FSBO’s and haven’t found one that’s newer then 1972. Could you please tell me what the parameters are when locating a good MH investment
    What sq.ft to stick to, single or double-wide, etc
    I was told that items like cabinetry, and sinks can’t be bought at Home Depot, but rather a specialty MH store. As far as I know the closest store is in Washington state, how to factor this into the rehab costs up front?
    Buying in a family park that allows dogs makes sense, any other factors to consider?
    Last question:
    What if for some reason I don’t qualify for the land lease?
    Thank you so much!!!

    • John Fedro

      Reply Reply October 16, 2014

      Hi Ann,

      Please see my thoughts below in bold. I have left your words un-bold for easier reading.

      I’ve been glued to my computer for the last few days going through all your videos and articles. Excellent information! Thank you so much for the kind words.
      I’m in San Diego. I use to flip SFR’s until the market changed. I’m now doing my research and due diligence before jumping into the MH arena. Understood and agreed. MHI is a completely different business.
      I’d like to confirm some information with you and get your feedback.
      We have a few rent controlled parks and I was told that MH’s in those are highly desirable to flip. Although some of those parks increase the rent every time a home is sold, about 10%, in one case. But in general, are those good parks, or does it depend? The model I use and teach revolves around mobile home parks and sellers that are not is super high-demand markets. This allows us to purchase for a value and resell, usually on payments, to buyer for a value. In your area buyers are happily paying very high prices for average mobile homes worth a fraction of the cash-price just a few miles inland. (Does this make sense?) With that said I do know of some investors that are able to buy, hold, fix, and resell to buyers for all cash or bank loans. Due to the age of the homes you’re finding at 1972 and older I am not thinking too many banks will be interested in financing these homes. However I could be wrong. My advice is to find a local investor that is already doing this in your market that will partner with you. I know you have experience in rehabs but MHs are certainly unique.
      I’ve been scouring the MH FSBO’s and haven’t found one that’s newer then 1972. Could you please tell me what the parameters are when locating a good MH investment. I rarely invest in homes this old. Then again the condition could be very nice, and if in a high demand area this older home could be an attractive and desirable home.
      What sq.ft to stick to, single or double-wide, etc Ideally near a 1000 for singlewide and close to 1500+ for a doublewide.
      I was told that items like cabinetry, and sinks can’t be bought at Home Depot, but rather a specialty MH store. As far as I know the closest store is in Washington state, how to factor this into the rehab costs up front? Home Depot will have some materials. Some doors, showers, and sinks won’t fit, however sinks, toilets, and cabinets should all fit inside the home. For other materials you can Google search “mobile home parts in San Diego” to find a local store, or order parts online at mobilehomepartsstore.com if needed.
      Buying in a family park that allows dogs makes sense, any other factors to consider? Average or below-average lot rent for the area. Owner occupants VS just rentals. Friendly park manager.
      Last question:
      What if for some reason I don’t qualify for the land lease? You can obtain a co-signer, pay a higher deposit, or if these won’t work simply move to the next park.
      Thank you so much!!! Happy to help. Stay in touch and let me know if you have any further questions.

      Talk soon,
      John

  • Ann Bil

    Reply Reply October 17, 2014

    John, Thank you so much for your response. I truly appreciate the help!!!

  • Austin

    Reply Reply October 28, 2014

    Hello John, I own http://mobilehomesforsale.com and was wondering if you use listing sites like these to sell your inventory of mobile homes after you buy them? You have wonderful expertise in the field. If you want a free account for you and your members to list their investments for top dollar call me. My personal cell is 214-537-9641

    thanks
    austin
    mobilehomesforsale.com

    • John Fedro

      Reply Reply October 30, 2014

      Hi Austin,

      Thanks for commenting and reaching out. Many properties we sell very quickly already with free and very inexpensive methods currently. The only we can do this is because selling with payment is so attractive. When selling for all cash or bank financing I can see why your site would be such a good asset to increase your exposure to buyers. I will keep your contact info and if anyone wishes to reach out to you I’ll make sure they do so and let them know “John” sent them for the discounted account pricing and to learn more. Very good looking site and functionality by the way.

      Talk soon,
      John

  • Cathy Machalicek

    Reply Reply November 13, 2014

    My sister and I have accepted an offer from a buyer for the sale of our mothers mobile home who has passed away. The buyer has given us a cashiers check of%10 down but needs to find out if he can get the rest of the money from his 401k so he can complete the purchase. My question is, is there a certain amount of time we have to give him or can we set the amount of time he has to come up with the balance due? Thank you, Cathy Machalicek

    • John Fedro

      Reply Reply November 14, 2014

      Hi Cathy,

      Yes, you can set the amount of time this potential buy has to finish paying you. I would only extend a full week to figure out this funding issue, and to get approved by the park. If you signed a deposit agreement or down payment agreement then this date should be listed in this agreement as a date to close by or the buyer forfeits their money. If the buyer does not come through and bails then he/she will most likely want their money back, in which case I would give this back to avoid any problems moving forward.

      Hope this helps and congratulations on the sale.

      Talk soon,
      John

      P.s. Continue following up with this buyer daily to make sure he/she is not dragging their feet. If next month’s lot payment comes around before he/she buys the home, and you pay the lot rent, make sure the buyer repays you for this cost. Does this make sense?

  • Laurie

    Reply Reply December 31, 2014

    I have an older model mobile home (1966) in California and rent the space in a park. I am trying to sellmy mobile and the manager gave me a list of things to fix to bring up to code. Am I obligated to reside my whole mobile home before I sell it?

    • John Fedro

      Reply Reply January 3, 2015

      Hi Laurie,

      Thanks for reaching out to me on this issue.

      I have heard about this before and dealt with this too. Typically the new owner/buyer of the mh is responsible for this new change to the park outlines and guidelines. You will want to check with your park’s rules and prospectus if possible. You should be grandfathered into the park and now siding changes should affect you. However, again, your new buyer will have to make these changes in most cases.

      This is how it should work anyway. If you have a park manager that does not give a damn about the laws or following procedures they may ignore the rules and simply make up any rules they wish. If you do have to reside your MH this will be a $1,000 cost in most cases or more, this will significantly affect your profit. Again, if you singed the original lease agreement saying that any new changes effect you to then you are responsible for this change, or you can remove the home from the park, which will be touch as most parks will not want a 1960’s mobile home in their park.

      I hope this helps and make sense. I wish I had better news however it is my advice to ask the park manager if you can simply have the new buyer agree to these repairs and aim to sell for a discounted sales price fast.

      If you have any follow up questions or something I said did not make sense please don’t hesitate to reach back out. All the best.

      Best,
      John Fedro

  • Millie B

    Reply Reply February 5, 2015

    Hi John – I live in Florida, own a mobile home, and for about 7 years have rented a lot in a mobile home community park . There has recently been a change in ownership/management and they have requested a copy of my mobile home title. I have never had to provide it before. Do they have a legal right to have a copy? I have searched for the answer for days but haven’t found anything helpful. I would appreciate any help you could provide. Many thanks – Millie

    • John Fedro

      Reply Reply February 9, 2015

      Hi Millie,

      Yes, as property owners they do have the right to ask you for this to keep on their file. They do so to check with the state every year if taxes are paid, etc. However, if they start changing the rules and demanding major repairs needed to your home they likely don’t have the right to demand this from you.

      Hope this helps.

      Best,
      John

  • Millie B

    Reply Reply February 10, 2015

    John,
    Thank you so much for your response. This makes me feel much better to know that this is a legitimate request and thanks also for the info about demanding repairs etc. 🙂

  • Doug

    Reply Reply February 12, 2015

    Hello John,
    I’ve been pouring over your website to try and crash course myself. I have a rather good deal to purchase a mobile home and have a buyer ready to move in.
    My problem…my attorney seemed clueless as to a personal property trust. He kept saying it’s the same as a living Trust. Can you point me to someplace that will show me how to create this trust? This deal is now…so I don’t have time to go over your course…but…darn…I sure like your site and videos. Will most likely start buying and selling once I navigate this one.
    OH…I’m in Indiana if that makes any difference.
    Thank you very much!
    🙂

    • John Fedro

      Reply Reply February 15, 2015

      Hi Doug,

      Thanks for reaching out. Please see my thoughts below in bold.

      I’ve been pouring over your website to try and crash course myself. I have a rather good deal to purchase a mobile home and have a buyer ready to move in. Right on! That is excellent to hear.
      My problem…my attorney seemed clueless as to a personal property trust. He kept saying it’s the same as a living Trust. It is very similar to a living trust. In fact I have once had the title changed to Living Trust to pass bank underwriting when purchasing a MH in a park subject to the underlying loan. Can you point me to someplace that will show me how to create this trust? There may be a generic one online somewhere. This deal is now…so I don’t have time to go over your course Are you a member of the Mobile Home Formula Training? If yes then the PPT paperwork, how to videos and instructions are in module 3 under the PPt lesson.…but…darn…I sure like your site and videos. Will most likely start buying and selling once I navigate this one. Glad to hear you are doing this one. great job pulling the trigger.

      OH…I’m in Indiana if that makes any difference.
      Thank you very much!

      Talk soon,
      John

      P.s. You can always email me personally at support@mobilehomeinvesting.net

  • Taylor

    Reply Reply March 13, 2015

    Great site John!

  • Loretta

    Reply Reply April 1, 2015

    I have a question about Mobile Homes being viewed as real property when on land and no longer able to be moved in NYS. Do you know how to get the designation on property taxes changed from mobile home to real property?

    • John Fedro

      Reply Reply April 2, 2015

      Hi Loretta,

      In New York State I would advise you to contact the property appraiser’s office in your local city or county. When transferring from personal property or real or visa-verse I have always started my search here. In most cases, this is the department to help.

      I hope this helps or gives you some new information to try.

      Please keep in touch and let me know if you have any additional followup questions.

      Talk soon,
      John

  • Lori

    Reply Reply April 30, 2015

    I have a buyer paying cash for my mobile.Problem is park management wont approve new buyers.Husband income is not enough and wife has bonds and stocks.Park says bond/stock are not income…I have gone to court 4 times with this property management.

    • John Fedro

      Reply Reply May 1, 2015

      Hi Lori,

      Thank you for reaching out concerning this. I regret to hear about this serious and frustrating issue. This is a personal hot button of mine. Through no fault of your own or the condition of your home you are being forced to suffer. Taking the property manager to court probably doesn’t help the friendship relationship between you and the park, however the manager would hopefully be professional enough to approve people and not be vindictive towards you.

      The few times in my life that this has happened to me and to investors I help around the country, I can tell you the homes always eventually sell. With that said sometimes extreme measures must be taken. As I see it you have a few different options to move forward and resell your home for a fair price and to an average buyer.

      1. Start calling every local park nearby and find out if any of the mobile home parks will move and set up your home into their park for free. These are often times called “move in incentives”. You may have to sign an agreement that your mobile home will stay there for the next five or 10 years, however it is well worth it.
      2. Ask the park manager point-blank what the approval process needs to be. Then only send verbally qualified potential buyers to the park office to get approved. Additionally, ask if the park will accept a cosigner where a larger deposit for any slightly risky buyers.
      3. Lower your price to attract more buyers and aim to flood the park managers office with potential applicants until one is accepted.

      Again I so regret to hear the stress and trouble you’re going through due to this park manager on a power trip. I have no idea of your current situation or how this is come to be however if you have any follow-up questions or concerns don’t hesitate to reach out and ask.

      Talk soon,
      John

  • Troy

    Reply Reply May 11, 2015

    1 if you purchase with terms or payments when will you collect title
    and how can you resell without the title?

    2 are u ever just renting out or do you strictly want to sell for cash and or terms?(understanding that you have lot rent and carry cost while you find a buyer)

    • John Fedro

      Reply Reply May 11, 2015

      Hi Troy,

      Thanks for reaching out and commenting. I’d be happy to answer your questions.

      Answer 1: I am not sure of a way that you can sell a mobile home without a title. Except of course for in states that do not use titles. With that said the answer to your question is that we always take title day number one. Typically we do purchase inside of a personal property trust regarding mobile homes inside parks, however again we always take title and possession to the home day number one.

      Answer 2: In my personal business I almost always sell, whether for cash or in monthly payments. Most mobile home parks will not allow you to rent however if you do and in those parks I do experiment with renting from time to time or certain tax purposes. On private land I do a combination of renting and selling however again it depends on the area, the appreciation rate, and many other factors.

      I hope that these answers were helpful. If you still have any follow-up questions or something was unclear please don’t hesitate to reach back out.

      Always here to help when I can.

      Talk soon,
      John

  • Angie Marquez

    Reply Reply May 13, 2015

    Hi I’m finding myself get a little discouraged in regards to finding sellers. A lot of them seem to be just interested in Cash sells verses terms. I really don’t have the cash to offer them should I still make that an option for the seller? Another quick thing, have you heard of or experienced cash money lenders doing mobile home deals?

  • Angie Marquez

    Reply Reply May 13, 2015

    Hi John. Quick question, I don’t have cash to make cash offers to mobile home sellers. Do you know whether or not Hard money lenders invest in mobile home deals?

  • Maryann

    Reply Reply May 20, 2015

    Hey there,

    I was wondering what a mobile homeowner should do when their house is still registered with the CA DMV? (it’s an older home and bought it right before the law changed). Can we just do a private sell with a bill of sales and the title since its on rented property as well?

    • John Fedro

      Reply Reply May 22, 2015

      Hi Maryann,

      Thanks for commenting and reaching out with this issue. This has happened to me as well, however it has been a few years since then. Unless things have changed you will not be able to simply use a Bill of Sale. However the process is very easy and streamlined. I advise you to call the California Dept of Housing and Community Development’s Registration and Titling Division at (916) 323-9224 or toll-free (800) 952-8356. Make sure you have your homes Serial or VIN number to provide to the receptionist and they will walk you through the process. You will likely be able to download and print the forms right from the computer with the help of the clerk who answers the phone. The people down there are great and very easy to work with. Keep in touch and let us know how it goes.

      Talk soon,
      John

  • kristin howard

    Reply Reply June 4, 2015

    I have a mobile home I’ve had to file an unlawful detainer on and received a Warehouseman’s lien on. I would rather list it with an agent then sell it as lien sale. Also the former tenants just paid the lien in full. What are my options for selling this home? And who gets what upon sale??

    • John Fedro

      Reply Reply June 5, 2015

      Hi Kristin,

      Thank you for reaching out and commenting concerning this issue. If the mobile homes ownership or title is in your name then by all means you should be able to sell the mobile home as you wish. Depending on your county a realtor or real estate agent may or may not be able to assist you with the sale depending on if there is land included with the mobile home. However calling multiple realtors locally will be able to solve this question quick. Your options for selling or to sell by yourself, ask the park management for help (if located in the mobile home park), so with the help of a listing service, or so with the help of a Realtor. When you sell the mobile home the new buyer will get full ownership and the homes keys, while you will receive cash. Both parties will likely walk away with copies of all the closing agreements. In most states a closing at a title company or closing Atty. is not needed.

      With all that said if you only have a lien on the home, and are not the actual owner on title, then you will first need to repossess the mobile home and have clear possession and ownership of the home. Once you have ownership you can then resell as you would like. Any liens will have to be paid off and satisfied prior to selling.

      I hope this answer was helpful to you. If I misunderstood the question please don’t hesitate to ask me again anytime. If you have any follow-up questions don’t hesitate to reach out as well. Always here to help.

      Talk soon,
      John

  • Tammy

    Reply Reply July 16, 2015

    I bought a home thru the park owner. Pd it off last yr. The park owner told me it would take anout 6 months to get me my title. Since then we have not recieved our title so we stopped paying the lot rent hoping he would give us our title. We have since moved but still have property in our home now he tells us that he is going to give us a 5 day evect notice. I told him we have ur money we just want our title. He responds saying no im done with u dont come back on my property. What can we do????

    • John Fedro

      Reply Reply July 16, 2015

      Hi Tammy,

      Thank you for reaching out to me concerning this issue. I am sorry to hear that you’ve had such a hard time retrieving your title and working with this awful sounding park manager/owner. It sounds like you may have already burned the bridge of working peacefully with this park owner. Please keep in mind that I am definitely on your side as it should not take six months to receive clear title back from the state, unless of course there is more information that I do not know of or some funny business going on from your park owner. With all this said I believe that you’re only legal recourse would be to press charges against this owner because he never provided you title to a mobile home that you paid for. This is a big error on behalf of the mobile home park owner. With that said you have not paid lot rent in a number of months so he does have the right to evict the property and to evict you. This could have been his idea all along and maybe he never planned on selling this mobile home to you ever.

      Again, I have been in a similar situation as you and threats with legal action is the only thing that seem to work. If I were you I would call a real estate attorney that offers a free hour consultation. Make sure you have all your questions lined up so that you can get everything answered in this free hour. It sounds like there are emotions running high on both sides. Obviously the park owner would be wise to take your money that you owe for back lot rent and provide you clear title for your mobile home. If you go to court or mediation this is the outcome that should arise with an ethical judge or mediator. With all that said sometimes bad things happen to good people and you may not ever receive your title, in addition you may have an eviction on your record depending on if this park manager goes through with the eviction.

      I realize this answer may have been a bit vague so feel free to comment back if I did not answer something completely. Additionally, feel free to write back her comment with any additional follow-up questions or concerns you have moving forward. Keep in touch. I hope this all works out for you.

      Talk soon,
      John

  • Katherine

    Reply Reply July 19, 2015

    We are trying to sell our mobile home so that we can get a bigger one. The only problem we are having is that it is not in a park. It will have to be moved. Do you have any advice on how to sell it easier. It’s a 2003 Fleetwood with a metal roof and new air conditioner and heat pump. Thanks for any advice.

    • John Fedro

      Reply Reply July 20, 2015

      Hi Katherine,

      Thank you so much for commenting and reaching out with your concern. When you are aiming to sell your mobile home for cash you are competing with every mobile home seller in your area. In addition the buyers with cash or they can get bank approval financing are few and far between. Add all of this to the fact that your mobile home now has to be moved once purchase and you have a very small pool of buyers interested in purchasing your used mobile home. With that said there are definitely buyers out there however you have to make your home’s price very attractive for these buyers. Without a doubt make sure that your prices competitive in your advertising everywhere you can think of. Make sure to advertise online at sites like Craigslist.com, sellfastbyowner.com, your local community newspaper, and even hanging yard signs around town advertising your home for sale in your phone number. Also make sure to contact local dealers to see if they are interested in either buying your mobile home at a discount to move it onto their lot or if they will help you resell your mobile home to a buyer that already has the land. I hope this helps and makes sense. If you have any follow-up questions or concerns please don’t hesitate to write back any time. Always here to help.

      Talk soon,
      John

  • Alan

    Reply Reply September 25, 2015

    Hi John,

    In Florida, are looking to buy a mobile from a park that rents its lots and we want to hold a note for the end buyer. I’ve spoken to an attorney to handle the paperwork and he really didn’t know what to do. Any suggestions?

    Regards,
    Alan

    • John Fedro

      Reply Reply September 26, 2015

      Hi Alan,

      Thanks for commenting and reaching out concerning this issue. First things first, congratulations on having the guts to pull the trigger and move forward investing in mobile homes. You have a fun and wild right ahead of you. 🙂 Concerning your question, I believe it is about the paperwork involved. Let me know if this is correct or not. Before I answer that I want to mention that there are a number of mistakes you can make concerning the mobile home, the area, and the mobile home park itself. Make sure that the home you are buying is something that can be resold and you can recoup all of your invested capital back in a maximum of 10 months or less. Also make sure you are netting $300 minimum cash flow per month per deal. With regards to the paperwork there are new laws and restrictions that govern the way how investors can sell a mobile home via installment payments to an end buyer. While purchasing the home we do not have to worry about many of these owner financing restrictions (if you decide to owner finance from your seller) because you will not be living in the home as a primary residence. I hope this answer has been helpful somewhat. It certainly has been vague and quite short, I could talk about this topic for hours. With that said if you have any further questions or concerns never hesitate to comment them back anytime day or night. Please make sure this questions are specific and I’d be happy to bring any clarity I can to you and your business.

      Talk soon,
      John

  • Kathie Massie

    Reply Reply September 28, 2015

    Dear John,

    I have a buyer for my 1971 Croydon Mobile home. They want to set up a payment plan. In order for them to do this and remain in the park, I would have to sign over the title to my home.

    Is this a legal transaction? My fear is that I sign my home over and they don’t make good on their payments.

    • John Fedro

      Reply Reply September 28, 2015

      Hi Kathie,

      Thank you for reaching out concerning this issue. Congratulations on finding a buyer for your mobile home. Even though your mobile home is a 1971 it may very well be in excellent condition and worth every penny you are asking. With that said I’m sure there are many buyers locally that would not mind purchasing your mobile home on this payment plan. I bring this up to make sure you understand that any buyer going into your home and making you payments should be very very low-risk. This means no past evictions, no crimes, very good employment, very polite, decent credit, and someone you are very happy to sell with and trust moving forward for the next few years. Some parks will allow you not to transfer the title right away in some parks will want to see the title with the new buyer’s name as owner. This of course would be a legal transaction.

      You would want to make sure you have a proper lien on the title in case the buyer defaults. I would encourage you to at least collect a minimum of 20% as a down payment from your tenant buyer. This will help eliminate default because your buyer is serious about owning the home and is put down a good bit of money. If the buyer does default then many times a low risk buyer who is credit-conscious will leave the home in a clean manner and keeping good communication with you. However if you sell to a high-risk buyer, they may not pay you and they may also dodge your phone calls when you try to call. If this is the case and you cannot amicably come to a peaceful resolution then you will have to repossess the property via a simple form and fee at your local titers transfer department (varying from state to state). Once you have ownership of the mobile home back you will then have to evict the tenant buyer for nonpayment. Does this help and make sense? If you decide to resell the home on payments to make sure that you are selling to someone that you trust. Perhaps you can perform a background check and verify who they are in their monthly income for yourself. If you have any questions or follow-up concerns never hesitate to reach back out.

      Talk soon,
      John

  • Tim Durbin

    Reply Reply October 16, 2015

    I am trying to sell my home (2007 Schult Meadow Glen, 3 bedrooms, 3 bathrooms) and have advertised on Zillow, Craigslist, MHVillage, and other sites. I’m waiting for my listing to be approved for sellfastbyowner.com

    I’m asking $50,000 but there’s several minor repairs the home needs that I can’t currently afford (small holes in the drywall, blinds need replacing, etc.) I’m wondering if I’m asking too much- I bought the house for $61,000 8 years ago and thought I had gone down enough, but have not received any inquiries from my advertising.

    Would you recommend me changing my listing price? Thanks!

    • John Fedro

      Reply Reply October 21, 2015

      Hi Tim,

      Thank you for commenting and reaching out. Your mobile home at sellfastbyowner.com has been approved and should now be listed life. If you have had more than 10 individuals or couples walk through the mobile home and not make you an offer – then something may be wrong. Your mobile home sounds quite new and quite large from your brief description. Seeing as you purchased your mobile home likely at the peak of the market it is also important to know that there are so few buyers with cash looking to purchase a used mobile home.

      If you are looking to sell the home to an all-cash buyer or a buyer that will be approved for bank financing I encourage you to price the home 10% to 20% below your competition. Look for comparable home listings is yours and aim to be below these prices. In addition make sure that you advertise every possible way you can think of. We are going into the winter season which is a bit slower, however they are certainly still buyers in the market looking to close quickly on an affordable and attractive mobile home. Continue advertising your home for sale online, off-line and small local newspapers, and even by hanging small yard signs around town advertising your home for sale in your phone number.

      In short, try to get as many feet to walk through the home as possible. You’re looking for a motivated buyer that is willing to come out of pocket and pay for this mobile home. Listen to what these buyers have and how much they will pay. For a full price sale you may be waiting until next year at tax time or even longer. It may be a wise idea to in touch with a local mobile home mortgage broker to find out the lending requirements on your home and potential buyer. This way you can expedite the process if you find a quality buyer who may be bank financedable.

      I hope this has been somewhat helpful and pointed you in the right direction. I do not feel appropriate letting you know a listing price I feel fair over the Internet. I would hope that you could sell the home for as much as you want to a buyer that is eagerly willing to pay for, however most of the time this is not reality. In most areas there are way more mobile home sellers looking for an “all-cash” sale, and there are only a finite number of cash buyers in any given market. If you would consider selling for monthly payments you would certainly open up your pool of buyers.

      Keep in touch if you have any follow-up questions or concerns never hesitate to reach out anytime. Always here to help.

      Talk soon,
      John

  • David

    Reply Reply October 21, 2015

    We are buying and flipping/leasing mobile homes in established parks. How can we obtain insurance coverage for our either owned or leased units? Most insurers don’t want to touch mobile home coverage, and the one’s that do want us to take out Homeowner’s coverage for each unit, which is expensive and unnecessary for us. We really just need casualty coverage. How do other MH investors obtain insurance coverage for their portfolios? What coverage do other investors keep on their units?

    • John Fedro

      Reply Reply October 21, 2015

      Hi David,

      Thank you for commenting and reaching out concerning these issues. First things first, congratulations on being so active in helping local parks, buyers, and sellers. In almost every state around the country we are fairly easily able to obtain hazard insurance when a MH is vacant, or a homeowners insurance policy when needed. We have had very good success dealing with small “mom-and-pop” insurance agencies within the town we are working in. My advice is to continue calling local and statewide insurance agencies and having them point you in the direction of somebody that will help. There is absolutely insurance out there for you, you just have to find who was offering it. Sometimes this takes quite a few phone calls, however when you find the right you can use them moving forward. I wish I could give you a specific nationwide insurance company that you could call however I do not know of a reputable one stretching all 50 states.

      With regards to your last question about “what coverage do other investors keep on their units?”, this answer varies greatly. Some mobile home investors only have general policies to protect themselves in case of a liability, other investors carry full insurance, and still other investors carry absolutely zero insurance coverage on their homes or themselves. Seldom, do mobile home parks actually require you to obtain insurance for your mobile home, vacant or otherwise.

      With all this said the answer for insurance is completely up to you. I hope this helps and makes a bit of sense. If I have not answered your question or if you have any follow-up questions never hesitate to reach out anytime. Always here to help.

      Talk soon,
      John

      Talk soon,
      John

  • Tony Neb

    Reply Reply November 25, 2015

    Thank you John. This helps right now.

    Neb

    • John Fedro

      Reply Reply November 26, 2015

      Hi Neb,

      Very happy to help. If you have any mobile home specific questions moving forward never hesitate to reach out to me anytime. Keep in touch.

      Talk soon,
      John

  • Jan

    Reply Reply November 30, 2015

    I saw the video on how much to list my mobile home if it is for payments, but how do I know how much to ask for if it’s cash?

    • John Fedro

      Reply Reply November 30, 2015

      Hi Jan,

      Very good question. I do not specifically address this on this site or in this video. When selling for all-cash every area of the country is a bit different. Not to mention that the specific mobile home park you are in, the amount of homes for sale locally, current lot rent, value of your land, current liens or mortgages, and the size and the condition of your home all factor in to how much your home is currently “worth” all-cash in your local market.

      Let me first say that your mobile home is worth whatever the market will pay for at the current moment. Because we are going into the winter months there will be typically even less buyers in the market now than during the spring and summer months. If you are in a “snowbird” type destination area then you may actually have more buyers coming in to your city during these winter months. However for most areas of the country sales slow down a bit during this time of the year.

      With that said there are not many bank approved buyers or active buyers with all-cash in your local market. There are definitely some and they absolutely want good deals that they can buy with their hard-earned cash. In order to sell your mobile home at an all-cash price you will be competing against every mobile home seller in your area. You will want to make sure your mobile home is prettier than the competition’s AND 10% to 20% below the competitions prices. This will help ensure that any serious buyers that see your advertisement and walk through your home will likely pull the trigger on your property versus somebody else’s.

      I hope this all makes sense and points you in the right direction. Because I do not know your home or the local area I do not want to say specific price. However if you are looking to sell the home fast that it will have to be at a competitive price and a good-looking property. Make sure to advertise the property online and off-line as well. You want everyone who is looking at buying a new/used mobile home to see your ad and call you. Keep in touch.

      Talk soon,
      John

  • Bob Pates

    Reply Reply November 30, 2015

    John provides a lot of great Info and does a wonderful service for anyone interested in Mobile Home Investing. But be very aware that more and more Mobile Home Parks are slowly but surely distancing themselves from Investors looking to buy in Land-Lease Communities/Resident-Owned Communities. John, Lonnie, Velvel and others provide great info but as they say results will vary. Here in Tucson, AZ, there are approximately 52 Family (All Ages) Communities and 29 allowing pets w/restrictions; 39 Age-Restricted (55+) Communities and 27 allowing pets; 7 Resident-Owned Communities and as you increase your distance up to 50 miles you’ll have approximately 73 Family and 76 Age-Restricted. You will be hard-pressed to find a MH Community within the Tucson city limits that allows Investors. And Tucson has quite a few MH Communities. Yes, there a few, but you would be considered a Slum Lord at these few Parks and yes, they are accepted as being the worst of the worst in Tucson and they have no plans to change their reputation any time soon. Before you decide to spend any of your hard-earned monies on MH Investing Courses or Boot Camps, please do your Due-Diligence regarding Mobile Home Communities in your area that allow Investors. Personally, I am looking to Purchase MH Parks. Then it all makes sense when you think about the many, many Communities that DO rent Mobile Homes, BUT they are Park-Owned Homes. Why take a chance with an Investor, but more importantly why let an Investor make Money in my Park? Why? Once again, John Fedro is very knowledgeable and definitely provides an excellent service in learning MH Investing! Good Investing to yall!

    • John Fedro

      Reply Reply December 1, 2015

      Hi Bob,

      Thanks so much for commenting and providing such a detailed information about Tucson. I am working locally with an investor in the area who is able to invest inside of a number of parks within the city and nearby. I say a number of parks which sounds a bit vague, this investor is involved in four parks in and around the area. Additionally, I am finding the opposite to be the case. In every area of the country we have not had an issue with the majority of parks allowing us to invest in homes within their walls as long as we agree to keep the home in place, follow all the rules, and make the park managers life easier rather than harder.

      With all this said I believe the information you provided to be 100% accurate based on your experience. It is good to hear how other investors are working in the results they are seeing. There is certainly no way that I know of to bully or twist a park manager’s arm into working with you, however if the park does not actively invest in mobile homes within their walls or have an active handyman on the payroll we have a very good chance of investing with this community.

      Lastly, I’ve been educating myself the past few years about owning many mobile home parks myself in the future. I’m happy to say that I’ve already started this journey and what I found out from reading half a dozen books and courses on the subject – we mobile home investors are very valuable to parks. Keep in mind the shady, greedy, slumlordy investors will always give the majority of us hard-working investors a bad name.

      I hope this all helps and makes sense. If anything I just wanted to give a counter view to what we have been finding not just in Tucson but all around the country. Keep in touch and thank you again for commenting.

      Talk soon,
      John

  • Kathy Lakowitz

    Reply Reply December 18, 2015

    Doing some 1st time research. My 59 yr. old sister lives with my 91 yr. old Mom in a NYC condo. She can’t work, has no car & no family of her own. Too young to collect Social Security & Medicare. Whenever our Mom dies, the condo must be sold and profits split 4 ways. My sister will inherit about $100,000. Which will be her lifetime savings. I don’t want her to be homeless and she is willing to relocate outside NYC. Your opinion please if buying a mobile home in a park would be a good option and if a person can survive without a car. She will need to walk or take public transit to buy food and other items when needed. Also are mobile homes wifi connected?

    • John Fedro

      Reply Reply December 18, 2015

      Hi Kathy,

      Thanks so much for reaching out and connecting. $100,000 can certainly get you long way with regards to a mobile home. The only downside is that you will be renting the land in this land rent will go up over time. Mobile homes do have Wi-Fi, just as much as any single family home can. Additionally, some mobile home parks are located near walking paths, bus routes, and major intersections with shopping. Other parks are located in very rural areas not near anything.

      I am working with a few folks in the New York City area that are investing in mobile homes inside parks located in New Jersey, Pennsylvania, and the Poconos. Whenever these investors purchase they are buying homes at discounted prices from sellers that are looking to sell their properties. Some of these homes even need a little bit of work. I mention this because you can always overspend and pay too much for a mobile home in a park. With your sister’s limited budget I would obviously want to see this last as long as possible.

      I hope this helps and points you in the right direction. You most likely have a number of follow-up questions and concerns moving forward. Please don’t ever hesitate to follow up and comment back any questions here or emailing me personally. Keep in touch.

      Talk soon,
      John

  • Kathy mdonald

    Reply Reply January 14, 2016

    I want to add my daughter to the title of my home. I have searched the forms o hcd website but cannot find the one I need. Could you please direct me to the correct form.

    Thanks so much.

  • Michelle

    Reply Reply January 17, 2016

    Hi John Michelle here, I have question if a buyer has signed a contract to buy put all the money in an escrow account and now her husband dies she says she can no longer afford this purchase. but we have all signed everything and even the title has been signed by buyer and seller. Can the buyer back out of the deal if the seller does not want to back out of the deal?

    • John Fedro

      Reply Reply January 20, 2016

      Hi Michelle,

      Thank you so much for reaching out regarding your question. This is a very unique and interesting situation. This exact situation is not happened to me however I have been involved in a number of deals with the other parties, and even myself on one occasion backing out of a deal. With that said I regret to hear about this woman’s loss.

      Ultimately, this woman is likely dealing with a lot and she sounds positive on her decision to not move forward with the home. With that said the money is in escrow so the fate of the transaction lies in the hands of the escrow agents, underwriters, and attorneys on their staff – they will hopefully make a legal and ethical decision. I am very curious to see if they release the money to the seller or back to the buyer. The seller may have an opportunity to sue for “nonperformance” however there is likely little chance of any sort of victory or forcing the buyer to purchase the home.

      Again, this is a very unique and interesting situation. In my opinion the deal should still go through as planned since everything is signed by all parties. Unless there is a contingency for death in the purchase and sale agreement or your state’s real estate statutes that could void the sale. Please keep in touch and let me know what happens moving forward.

      Talk soon,
      John

  • Skeeter Brown

    Reply Reply February 9, 2016

    Hey John, all my questions were answered above. just really wanted to thank you for putting this together. Skeeter

    • John Fedro

      Reply Reply February 9, 2016

      Hi Skeeter,

      Thanks so much for commenting and reaching out. Very glad to hear that this page has been helpful to you thus far. If you have any follow-up questions or concerns never hesitate to reach out anytime. Keep in touch.

      Talk soon,
      John

  • MPoss

    Reply Reply February 9, 2016

    I’m interested in purchasing a 31 year old MFG “Signature” home built 1983 in the Palm Springs area, which is a much drier climate than other areas in other states. My primary concerns are the roof, the plumbing (this home has many outlets for hot and cold water, three bathrooms, a kitchen, Laundry area, three toilets, shower stalls, etc. and looking at an old Model home brochure, it doesn’t list the type of plumbing used.
    What else should I be looking for? Since I don’t see any interior attic entry – How do I inspect the attic? I hate to cut a wide square hole in the ceiling to gain entry. A 30 YEAR old home might have some water and mold damage, maybe not, since Palm Springs has a dry climate – but you never know…

    • John Fedro

      Reply Reply February 9, 2016

      Hi MPoss,

      Thank you for reaching out and connecting with regards to your questions. Please see my thoughts below in bold.

      I’m interested in purchasing a 31 year old MFG “Signature” home built 1983 in the Palm Springs area, which is a much drier climate than other areas in other states. Congratulations on this potential purchase! My primary concerns are the roof, the plumbing (this home has many outlets for hot and cold water, three bathrooms, a kitchen, Laundry area, three toilets, shower stalls, etc. and looking at an old Model home brochure, it doesn’t list the type of plumbing used. If the home has the original piping then it is probably “Polybutylene Pipe”. I hope this is what you were referring to when you mentioned the “type of plumbing used” in your question. If this is not what you meant feel free to comment back and I’d be happy to help if I can.
      What else should I be looking for? You absolutely want to walk around the entire home. Water is certainly the enemy of a mobile home and can get in through the roof, around the perimeter of the home, the windowsills, and any puncture or hole in the exterior of the home or leaky pipes. Bring a flashlight and make sure to be thorough inside the home and underneath. Since I don’t see any interior attic entry – How do I inspect the attic? They do not make this easy. You will likely have to remove a piece of ceiling panel to inspect the attic-type area. In most situations I do not consider looking above the ceiling if I do not see current water leaks or any evidence of wetness. However like you say below, you never know and it is better safe than to be sorry. I hate to cut a wide square hole in the ceiling to gain entry. A 30 YEAR old home might have some water and mold damage, maybe not, since Palm Springs has a dry climate – but you never know… A hole may be required at this point. With that said the sellers may not be happy with you damaging their property unless you are willing to replace it if you do not purchase the home. Just an FYI. Keep in touch and I hope these answers appointed you in the right direction. If you have any follow-up questions or concerns never hesitate to reach out anytime. Keep in touch.

      Talk soon,
      John

  • wendy

    Reply Reply February 9, 2016

    HI John

    Question on MLO and dealer license. If I have my MLO do the work for the sale on every deal do I need to still get my dealer lic. to buy and sell mobile homes in california. I saw the article but looking to clarify that info, I want to make sure I understand it correctly.

    Regards
    Wendy

    • John Fedro

      Reply Reply February 9, 2016

      Hi Wendy,

      Thank you for reaching out with regards to your question. The state of California will absolutely want you to have your dealer’s license if you profit from the purchase and resale of any mobile homes. Keep in mind that if you purchase and resale your own primary residence this is not included. However if you purchase a mobile home for the plan of reselling it for a profit this is where a dealer’s license is required. I hope this helps and points you in the right direction. If you have any questions or concerns moving forward about anything never hesitate to reach out anytime. Keep in touch.

      Talk soon,
      John

  • Mitchell Dunnam

    Reply Reply February 21, 2016

    I just bought my third park it cam with 40 park owned homes I am in the progress of clean up now trees roads skirting and such , I am needing info on what paper worker that you guys are using on owner finacing ,on my stick built homes I use a note mortgage and personals garuntee any info will help thanks Mitch

    • John Fedro

      Reply Reply February 23, 2016

      Hi Mitchell,

      Congratulations on your newest acquisition! That is so great to hear. I have no doubt that this came through hard work and daily effort on your part. Keep up the great job. Every area is a bit different and depending on whether you want to sell the owner financing, rent to own, or some sort of rent credits, I would encourage you to reach out to a local real estate attorney that could help you draft correct paperwork for your area. Once this paperwork is complete you can use it again and again. I hope this helps and makes sense. If you have any follow-up questions or some Pacific concerns never hesitate to reach out anytime. Keep in touch.

      Talk soon,
      John

  • Patty

    Reply Reply March 30, 2016

    I purchased a used mobile home (cash) from an individual, received bill of sale, title…moved to a rented lot, went to register my home and was told I had to get it bonded because of no registration??? He said it would probably cost about $2000 and whatever taxes are owed by previous owners!!! Ugh, I was duped! We had to do major work because of mold, animal crap, etc. hid in walls and floor. We’ve spent so much on it, so, my question…How much am I looking at and how do I have to pay to make this right? I live in Alabama in the county on a rented lot. Please help.
    Thx Patty

    • John Fedro

      Reply Reply March 31, 2016

      Hi Patty,

      Thank you so much for reaching out and commenting with regards to your questions. I regret that you feel duped having purchased this used mobile home. It certainly sounds like there was a good deal of unexpected work you had to endure to get this home to the cleaner condition you have it. In most states there are multiple ways to achieve the same results. I encourage you to talk to a manager of another DMV to ask them for help. Explain your situation and find the most cost-effective solution moving forward. If you talk to two other employees of the DMV that require you or the home to get bonded than this looks to be your answer. If they are offering no other solution than for this bond to take place that perhaps this is the only solution you are left with. If the home is already moved into the new community that perhaps you do not need to transfer over title anytime soon. You plan on living in this home for some time AND the fee for getting bonded will not increase, then by all means you may wish to put this off another few months as your previous seller has. This will release allow you time to save money. In Alabama you may also wish to call these numbers to ask for additional help. 251-574-1923/251-574-8794/334-242-9006 I hope this all helps and points you in the right direction. If you have any follow-up questions or concerns please never hesitate to reach out anytime. Always here to help. Keep in touch.

      Talk soon,
      John

  • david

    Reply Reply May 13, 2016

    hello jhon:
    that good on the internet to find the person I was looking for I took several days trying to find an answer but I could not find, is that through you’ll find answers to my question.
    this is my question: how long should I wait to receive my check for selling my mobile home? live in Florida, and decided to sell my mobile home, when it appeared the buyer and went to the office manager, the manager told us that the company had the right to buy the mobile home before any buyer outside, so we decided vernderle the mobile home and sign the document according to the manager of parking mobile home where I live, the manager told me that we should expect the company to send you by mail our check, but the date 9 days and each time I have gone office to tell us that the check has not arrived. What am I supposed to do. We packed all our stuff to leave, but we need that money to go to the new house. the manager had told us that our check would not delay one week.

    thanks for your attention and for giving me an answer.

    • John Fedro

      Reply Reply May 16, 2016

      Hi David,

      Thank you so much for reaching out and connecting with regards to your question. Additionally, thank you for being clear in your situation. This sounds like a fishy situation for sure. I am unsure of what documents you signed with the park however I’m curious if the park purchased your property or if another buyer already purchased your property or if nobody is purchased your property? I’m curious additionally where you are living in the meantime while you wait for your money? I would aim to go past the park manager to speak with the main office or park owner to find out where your check is. This should be a priority for the park manager and it obviously does not seem like they are making you a priority. I hope this helps and at least point you in the right direction. As always, if you have any follow-up questions or concerns never hesitate to reach out any time.

      Talk soon,
      John

  • linda debell

    Reply Reply May 31, 2016

    hi, were would i go first to apply for a title for my moble home, i bought it foreclosed an paid cash. i was able to get a moble home policy its a double wide 1999, i have no vin number anywhere on the home.the insurance company told me when i receive the title to bring it in they will put in my file. my concern is if i ever were to sell home i would still need a title.thank you

  • Oscar

    Reply Reply July 21, 2016

    Great info on this site. My question, if I simply want to get a mobile home under contract with seller and assign it to an end buyer similar to wholesaling a single family residential property. Is that possible and what steps are needed?

    Thanks

    • John Fedro

      Reply Reply July 26, 2016

      Hi Oscar,

      Thank you very much for reaching out and connecting. Additionally, thank you so much for your kind words. I truly hope the site has been helpful to you thus far. Yes, it is possible to wholesale or option or even broker (if your broker) a mobile home in a park from your seller directly to a buyer. Assuming you are following all local and state laws than you will simply wish to have the seller fill out and sign a purchase and sale agreement that I encourage you to get notarized. Let this agreement give you 60 days to close. This is way more than enough time to close a mobile home in a community so you should have ample time to find an approved buyer before the 60 days is over. The procedure is a bit similar to that of wholesaling single-family homes. This is a very very very quick overview however I do hope it helps and points you in the right direction. If you have any follow-up questions or concerns never hesitate to reach back out anytime. Keep in touch.

      Talk soon,
      John

  • veronica barrera

    Reply Reply August 4, 2016

    hi, i have a question. i sold a mobile home 3 years ago.the lady never change the title to her name. and there is two years owe on taxes. i cant find that lady anywhere. the phone number i have its disconected. i went to the mobile home to look for her and she doesnt live there anymore another fam is there. she said they are buying it. dont know how because the title is still under my name.what can i do i just want my name off the title

    • John Fedro

      Reply Reply August 7, 2016

      Hi Veronica,

      Thank you for reaching out and connecting. Very happy to help answer your questions via email. First off, I very much regret to hear about the situation. I have certainly heard this before and it sucks every time for the seller. You lived up to your end of the deal however the buyers did not live up to their end. Now this is costing you time, stress, and possibly some money. I think one of the biggest things to mention is, this home is still technically yours. If you wished to keep the home and evict the current people inside you absolutely could. I say this only to emphasize the point that this buyer has certainly dropped the ball and perhaps does not care to truly own the home. The buyer obviously does not mind risking your name on the back do taxes. With this said you have a lot of leveraging power when talking to the person you sold it to. I would encourage you to reach out to the tenants inside to have the person they know as the owner to call you ASAP. If the owner does not call you ASAP you will be moving forward with an eviction. They should get things moving and either have the person you sold the home to take action to put the title in their name or continue to ignore you… In which case you can either evict the people living inside or have them continue paying you for you to sell the home to them. Either way you are certainly the one still in charge. I hope this helps and make sense. Please don’t hesitate to reach out with any additional questions or concerns you have. Always here to help.

      Talk soon,
      John

  • Mark Gaulding

    Reply Reply September 3, 2016

    I watched your video on purchasing a mobile home in a park. You referred to some free forms for a buyer that are available on your website. Where I can I get these forms? Thank you.

    • John Fedro

      Reply Reply September 9, 2016

      Hi Mark,

      Thank you so much for commenting and reaching out concerning this issue. This video was published a while ago and since then we are no longer providing general boilerplate forms to the public. Thank you for alerting me to this issue as well. While I will not be able to change the video now that it is published, perhaps I can create a notation on the video that mentions these forms are not available any longer. With that said I do not want to slow you down or stop you from purchasing or evaluating any mobile homes you are considering purchasing. If you have any questions or concerns never hesitate to reach out or coming back anytime.

      Talk soon,
      John

  • al mcconnell

    Reply Reply September 15, 2016

    I know I will not get what I owe on my mobile home and I am buying a home I want to sell the mobile home I can’t afford to pay the difference to get the title is anything I can do it’s in a park had someone who would take over payments but can’t get a loan for it. I am willing to make payments on the difference of what it sells for

    • John Fedro

      Reply Reply September 20, 2016

      Hi Al,

      Thank you for reaching out and connecting. Congratulations on purchasing your new property. If the mobile home park will allow you to sublet your mobile home then you could absolutely sell the property with some type of payment contract to a tenant-buyer. This means that someone will pay you a down payment and monthly payments for the next number of years until the home is paid off with the bank and eventually paid off to you. The reason the park manager has to be on board is because the title will remain in your ownership until you have paid off the loan and transfer the title into the new buyers name. There definitely a number of things to consider before moving forward however let me know if this starts to help you and if this is something you would consider in order to get the home filled and stop the monthly bleeding with regards to the lot rent and mortgage payment due. Additionally, feel free to write back and let me know any additional questions or concerns you have with regards to how this process may work moving forward. All the best.

      Talk soon,
      John

  • Norma

    Reply Reply October 12, 2016

    Thank you so much for all your help! Norma

    • John Fedro

      Reply Reply October 13, 2016

      Hi Norma,

      I am very happy that this website has helped you. Moving forward if you have any additional questions or concerns that you cannot find an answer to please never hesitate to reach out to me personally. All the best.

      Talk soon,
      John

  • Teresa Walker

    Reply Reply October 15, 2016

    I want to add my son’s name to my title and was told to get form 476.6G on line. I cannot find where to print this out. Please help. Thank you.

  • Ray

    Reply Reply October 19, 2016

    Hi, John,
    Thanks for your information. You have great energy and insight in this business! I had a tactical question re a new mobile home I built for my mom in CA about two years ago. We purchased this in her name and I took back a mortgage for the full amount (she needed to be owner in the senior community the home was in). Now she wishes to leave and move back East. I figured I had two options: 1) get her to give me power of attorney for awhile for dealing with the sale and mortgage pay-back after she moves; or 2) have her transfer the home to me and cancel the mortgage. Then I could deal with the sale myself more at leisure Any thoughts from your experience? (I figured option 2) might incur taxes and fees that would make option 1) more attractive, but didn’t know the ins and outs). Many thanks for considering!

    • John Fedro

      Reply Reply October 21, 2016

      Afternoon Ray,

      Thank you for reaching out and connecting. Additionally, thank you for the detailed comment as the certainly does help me answer your questions. As long as you have verified with the park that your mother will not need to be present for any reason (that we cannot think of) then I agree obtaining a power of attorney on behalf of your mother would be the way to go as well. Keep in mind that in California you can add yourself onto a mobile home title for a very small fee. These forms can be found at the bottom section of this linked webpage. http://www.hcd.ca.gov/codes/registration-and-titling/forms.htm Additionally, I’ve always found the folks at the California housing department to be very friendly whenever I have called up asking general or specific questions. If you have any specific questions I encourage you to contact these folks to explain your situation and ask about easiest and quickest way to deal with your situation. I hope this all helps and starts to point you in the right direction. Moving forward if you ever have any additional questions or concerns never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • joe yobaccio

    Reply Reply October 28, 2016

    Hi John,

    What a great, informative site!

    I have a question about seller financing and the documents to use in Calfornia.

    I am going to buy mobile homes in California and carry the notes when I sell. I found an MLO who will help me, but he wanted me to provide him with the proper security documents that would allow me to repossess or foreclose. I was hoping he would be the one to tell me that as that was the reason I am using an MLO. I know there are generic seller finance contracts available, but they may pre date Dodd Frank or not protect me by securing the loan with the mobile home.

    Are you aware of any place that has a seller carry back document? I don’t think it’s a deed if the buyer/borrower is not owning the land and is paying space rent and so it may be a promissory note, but I’d want a secured one, not secured and one that has the language allowing me to repossess. Any ideas or resources for California?

    • John Fedro

      Reply Reply November 1, 2016

      Hi Joe,

      Thanks for reaching out and connecting. Additionally, thanks so much for the kind words. Very happy to help where I can. Great job moving forward with a licensed mortgage loan originator. I’m curious if this mortgage loan originator has worked with a real estate investor in the past. I would encourage you to contact your local real estate investors group and asked them for a few recommendations on “investor friendly MLO’s”. I mention all this because the chattel mortgage your MLO is describing should be something he drafts up or at least point you in the direction to an attorney he uses on a fairly regular basis. It’s certainly not good he’s simply giving you actions to take without any directions. You may also contact a real estate attorney to obtain the chattel mortgage to go with your promissory note. I hope this all helps and starts to point you in the right direction. If you have any follow-up questions or concerns please never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • Catherine

    Reply Reply November 1, 2016

    Hello John, My cousin lives up in New York and wants to move here to Florida. She is in rehab because she fell down and broke her leg. We are trying to relocate her here and she has given me Power of Att. We were told that I can not buy for her because if she gets here and does not like the mobile home she can sue with the Lemon Law. Can we waive the lemon law? So I can get her settled down here.

    • John Fedro

      Reply Reply November 2, 2016

      Hi Catherine,

      Thank you for reaching out with regards to your questions. When you are dealing directly with a mobile home park or license mobile home dealer in the state they may tell you that the actual buyer needs to be present to walk through the home and sign off accordingly. With that said, if you purchase the home from an owner occupant who is selling a mobile home for sale by owner then you may absolutely purchase the home prior to your sister coming down. Additionally, many mobile home parks will allow someone to get approved if they are not yet in the state. They can do this over the phone, fax, and email. I hope this helps and make sense. If you are seeing something different were having a different experience never hesitate to follow up with any additional questions. Always happy and here to help if I can.

      Talk soon,
      John

  • Gloria Floyd

    Reply Reply December 2, 2016

    I have a 1979 southern hospitality double wide sitting on a piece of property in the metro Atlanta area, has redecorated kitchen and master bath, new roof. I’m interested in building a house on the site, I have been hearing that there may be requirements of age, etc. that would prevent moving the mobile home. I don’t want to demolish it as the money I have invested in re-dos would be wasted, so do you know how I can go about finding how I can find a buyer for my home to move off of property. Thanks for your assistance.

    • John Fedro

      Reply Reply December 8, 2016

      Hi Gloria,

      Thank you for reaching out and connecting. In some areas a home from the 1970s will not be allowed to pull permits to move into certain cities or counties. Additionally, many mobile home park owners may not want an older looking mobile home inside of their community even if it is legal with the state and county. I say this last sentence because I do not know the condition of the mobile home from the exterior. However based on the rehab inside and the roof I am assuming that the exterior probably looks pretty good. With all this said there absolutely still mobile home transportation companies that would move a mobile home without a permit if they were paid to do so. I mention this because I encourage you to advertise your mobile home for sale both online, off-line, in newspapers, and even hanging small yard signs around town. Because the home needs to be moved and it is older, I would encourage you to find a low price that is a no-brainer for anybody wishing to buy and move a mobile home. You may also want to contact local mobile home dealers to see if they are interested or may find a buyer for you through consignment. Additionally, some mobile home parks will pay a move-in incentive if you move a home into their community. Some of these parks will pay for 100% of the move and set up into their mobile home community. In these parks you may be able to sell your 1979 mobile home to these companies to add to their park. Please keep in mind that a double wide will cost double the amount to move and therefore should be a conservative price one selling it. I mention this last part because the new buyer will be coming out of pocket $6000 or more for the move and set up in most cases. I hope this all helps and starts to point you in the right direction. If you have any follow-up questions or concerns please never hesitate to reach out any time.

      Talk soon,
      John

  • Luis

    Reply Reply January 9, 2017

    Hi john,

    Are the buyers of any mobile home essentially responsible for two different payments; the lot fee and the loan payment? And if this is the case should I specify this fact when I advertise my property. For example, should my listing read:
    “Home for sale, Seller financing available 300/mo + $475 lot fee.”
    I’m planning on buying my first mobile home and these questions are bothering me the most. Thanks for your help. Your website has been a great help.

    • John Fedro

      Reply Reply January 9, 2017

      Hi Luis,

      Thank you for reaching out and connecting. Congratulations on getting ready to take the next step with regards to mobile home investing. Your tenant-buyer may also have to pay taxes and insurance if you deem necessary. With that said I would encourage you to collect both the lot rent payment and the payment for the mobile home. Make the lot rent payment to the park yourself so you know this fee gets paid on time. This will also give you another opportunity to talk with the park manager and call them for the first few months to make sure they got your check and see if they have anything else for sale within your budget. I hope this all helps and make sense. If you have any follow-up questions or concerns please never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • Kevin

    Reply Reply January 9, 2017

    Hi John,

    I have to turn over a couple of units and get then rent ready. In your experience how much typically is it to replace/repair a soft spot in the floor, holes in the wall, and exterior vinyl. I appreciate any input.

    Thanks

    • John Fedro

      Reply Reply January 11, 2017

      Hi Kevin,

      Thank you for reaching out and connecting. While these repairs can absolutely vary depending on the material used in the cost of the labor used to install however I will be happy to provide rough estimates below. With that said congratulations on having these units and getting them rent ready. I’m sure they will be excellent moneymakers for you.

      Assuming that the handyman has all the tools and materials on hand, a 2 x 2 soft spot that needs to be removed and replaced should only take about 2.5-3 hours. Perhaps longer if they run into a problem or have to pull back carpet and restretch it. I pay about $15 per hour so I would roughly pay $50 to have this job done. Keep in mind that I give my handyman many jobs so I obviously am not just paying him $50 to come out for a couple hours and then go back home.

      Depending on the holes in the walls they may patch these or simply remove and replace the drywall or paneling. Again I pay $15 an hour for this type of work. Use your judgment as to how long these repairs should take. I apologize I’m not able to give you more of a help however it could take only a few hours or perhaps a couple days to fix the entire home.

      Adding vinyl siding to the exterior of the home should run you roughly $1200 in material, not including skirting. Skirting will be an extra $500. Now you have to pay someone approximately two days of work to hang the vinyl siding on the mobile home. There are excellent YouTube videos showing you how to hang the step by step. I hope this helps and makes sense. As I’m not sure what these homes look for I’m trying to do my best in giving you some advice. If you have any follow-up questions or concerns please never hesitate to reach out any time. All the best. Keep in touch.

      Talk soon,
      John

      • Kevin

        Reply Reply January 15, 2017

        John, thank you for the information. You went far and beyond what I expected. I watched your video on YouTube about contractors/handymen tips about 3-4 times. I’ve been through several contractors/handymen and I can identify with some of the issues you brought up.

        My other question is regarding the refinancing process of the property. I have begun the process and I wanted to know if it’s common for a lender to charge upfront fees for appraisal, environmental fees etc.? If so, how much do they typically cost?

        Thanks again,

        Kevin

        • John Fedro

          Reply Reply January 17, 2017

          Afternoon Kevin,

          Very happy to help. In my personal business I do not utilize the help of conventional banks or lending institutions. With that said, when refinancing a property an appraisal and survey are typically needed. There may even need to be a wood destroying organisms report or inspection report as well. This really depends on the lender. Because I do not work with banks often I apologize I’m not able to help you a bit more specifically. However I do not want to give you any bad information. I hope this all helps and make sense. Keep up the great work moving forward. As always if you have or have any follow-up questions or concerns never hesitate to reach out any time.

          Talk soon,
          John

          • Kevin

            January 18, 2017

            Hi John,

            I totally get it. No worries. So do you use private money? If you have any tips on who you prefer to deal with. I’ve been rejected many times in the past 6 mos as far as lenders are concerned.

            Thanks!

          • John Fedro

            January 25, 2017

            Hi Kevin,

            Happy to help. Good question. While I have obtain private money from friends, family, and acquaintances, the the easiest money is typically going to come from friends, family members, and acquaintances. People that want a greater return on their money than they are currently making in the banks or stocks. With regards to my business, most of the private money I’ve ever lined up has come from other real estate investors or people they have known. I say this because I encourage you to reach out to all your local real estate investors associations. They will likely have a phone number or an organizer or a president you can call or email to find out who they can refer with regards to private money for any mobile home deals. You may want to attend the meetings and network to become more and more well known with regards to these folks. I hope this helps and starts to point you in the right direction. If I’ve missed the mark or not answer the question please never hesitate to comment back any time. Keep in touch.

            Talk soon,
            John

          • Kevin Scanlan

            January 30, 2017

            John,

            Thanks for the recommendations. There’s an upcoming meeting in my area this Tuesday! I just discovered your podcast as well so I’ll be listening.

            Take care,

            Kevin

  • Danette Stafford

    Reply Reply January 28, 2017

    I own a mobile in Colorado Springs that I purchased in 1997. It is in great shape as all the maintenance has been kept up on it and many improvements. It is located on a double sized corner lot in a quiet mobile home park, with privacy fencing all around. It’s a gem.

    I recently decided to sell it because Colorado Springs is really a seller’s market these days. After three days on the market I had a cash offer for full price! I am working with the buyer and we want to close in 30-45 days. Sounds great right?

    Here’s the issue: The management is engaged in what I believe to be an illegal scheme. While they do not have first right to purchase any property, they do require preapproval of all new tenants. I had the house up for sale about 5 years ago, and sent three separate buyers to the manager’s office for approval. The first never returned and never called, the second time I called the buyer and they said that they had found a cheaper home in the same park. The third buyer was actually someone I already knew, when they arrived at the park office management accepted the application for tenancy and approved it right on the spot. Then they were turned over to , sales representative who tried to discourage them from purchasing my property, and wanted to show them other, park owned, homes. They declined. That sale did not go through for other reasons, but I was so discouraged I took it off the market.

    My perception is that the management of the park intentionally interferes with the homeowner’s sale for long enough that many homeowners abandon their properties. The park then takes them over for nothing and resells them, making a hefty profit. This does not seem legal, and certainly it is not ethical, but it is really hard to prove.

    The park wants all sellers to use this same sales representative, that has an office in the park office. This sales rep charges a 10% fee and I have learned from someone who used to work there, that they give a kickback to the park management for every non-park owned home they sell. It’s quite a racket and they have been engaged in it for many years. So you see my dilemna.

    So this time, before I send another buyer to the park office for approval, I want to make sure that the buyer has committed to the purchase, paid earnest money, and signed an offer or sales agreement to insure that they would have something to lose.

    I was also thinking of actually going in with them to the park office for the meeting, to dissuade the park management from interferring with the sale. I have already checked their credit and background and they are great buyers. The park would have no “legal” reason to deny them tenancy. Still, I do not trust the park management, so I am wondering what if anything I can do to warn them off. I am hesitant to have a direct confrontation with them because they are quite adversarial.

    If anyone has any tips, suggestions for verbiage in the offer, sales contract or some kind of letter that I can send to the park in advance, I would be most grateful.

    Thank you so much!

    • John Fedro

      Reply Reply February 6, 2017

      Hi Danette,

      Thank you for reaching out and connecting. Additionally, thank you for your detailed comment explaining your situation. I very much regret to hear that this park seems to be malicious and inconsistent with its approval process. It does not happen often, however I’ve certainly heard of a couple dozen parks around the country who are either run by poor management or poor owners. Sometimes this neglect can be as simple as just doing a poor job as a park owner or park manager. However what you are describing is something that happens from time to time in “hotspot” type areas such as Colorado Springs. With that said, it would not surprise me if this park was making it more difficult for you. Sometimes park managers think that they hold all the cards and their residence will not fight back in any way.

      With this said, I would very much encourage you to chaperone the buyer when they are in communication with the park management. It is sad that you have to do this however it is something I would do based on what you have experienced. You may also want to have a heart-to-heart conversation with the head park manager and let them know that you are considering removing your mobile home from the park if you cannot get it sold. Talk to local parks to see if they offer any “move-in incentives” for you to move your mobile home into their community. In fact, some mobile home parks will pay a good price for your mobile home so that they may purchase it and move it into their community. Once than manager knows you are considering removing the home they may likely change their tune.

      I hope this all helps and starts to point you in the right direction. Moving forward please keep in touch and let us know how this all progresses. As always, if you ever have any follow-up questions or concerns please never hesitate to reach out any time.

      Talk soon,
      John

  • Maria

    Reply Reply February 28, 2017

    In 2006, a family member transfered their land and mobile home to me in a deed. Since then they passed away but there was never a title to the mobile home. When this family member received the mobile home in 2003 through a program with Fema and Hud, they were suppose to file papers with the county/city for a title but didnt. Im at a loss with this situation. All Ive heard was I needed to consult legal counsel for this matter and file papers with the courts. If you have any information that can help, it will really appreciated!!

    • John Fedro

      Reply Reply March 2, 2017

      Hi Maria,

      Thank you for reaching out and connecting. It looks as if you are writing in from North Carolina. If this is correct then you are certainly in a powerful position as you are the landowner. Because you are the landowner you will want to reach out to your local Department of Motor Vehicles and aim to file for an “abandoned title”. Explain your situation to the clerk over the phone or in person and they will tell you the quickest way to get the title into your control. This is of course assuming that there are no liens on the title and that you do have the VIN or serial number or some other identifying number pertaining to the mobile home. I do agree that a local real estate attorney who is experienced with mobile homes may also have additional strategies for you to move forward. Either way this is certainly happen to other folks in the past and there is a way for you to move forward. Moving forward if you ever have any additional questions or concerns please never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • Rivers

    Reply Reply March 3, 2017

    John,

    If I missed this being asked, please redirect me. It’s my understanding that in order to obtain a license in Texas or Florida, you must have a physical place of business. Any suggestions on easily overcoming this if I don’t plan on having a physical business location and work primarily out of my residence?

    I already have an LLC for business purposes, but just use a rented mailbox for a physical address. I do not plan on leasing space for business purposes anytime soon.

    Thanks again for your time and I really enjoy your site.

    -Rivers

    • John Fedro

      Reply Reply March 4, 2017

      Hi Rivers,

      Thank you for reaching out and connecting. Please see my thoughts below in bold with regards to your questions.

      If I missed this being asked, please redirect me. It’s my understanding that in order to obtain a license in Texas or Florida, you must have a physical place of business. Any suggestions on easily overcoming this if I don’t plan on having a physical business location and work primarily out of my residence? Very good question. I would encourage you to use as small of an office as possible to save as much money as possible. Check with your local real estate investment Association to see if there any real estate title companies or other businesses that have an office with an extra room you may rent. I’ve seen this used many times successfully.

      I already have an LLC for business purposes, but just use a rented mailbox for a physical address. I do not plan on leasing space for business purposes anytime soon. Understood. I to think it is a bit silly to need a place of business if you are not going to have an inventory of any kind. With that said I hope my answers do help and start 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. Always here to help if I can.

      Thanks again for your time and I really enjoy your site. Thank you so much for your kind words. Keep in touch.

      Talk soon,
      John

  • Tom

    Reply Reply March 5, 2017

    Hi John,
    I have enjoyed many of your videos. Interested in your program, not yet started, seems like there could be potential, and have been poking around to validate the potential, still wondering if this business is a good one to pursue and have some questions first:
    1. I have a possibility of a mh that must be moved, and have searched for available lots in parks within 3 hours distance and cannot find any available, do you have any suggestions?
    2. I am still wondering how you find and sell to buyers, your program seems to focus on buying the property for as little as possible, I am not seeing any video’s on selling, can you shed some light on that? If you did a video of you actually selling to someone that may help many to decide on your program and this business.
    3. I have seen many videos of you interviewing others and indicating they have success using your formula. Can you shed some light on what your formula is?

    Thanks, I look forward to your responses, feel free to email me if you cannot post.

    Talk soon,
    Tom

    • John Fedro

      Reply Reply March 7, 2017

      Hi Tom,

      Thank you for reaching out and connecting. Please see my thoughts below in bold.

      I have enjoyed many of your videos. Interested in your program, not yet started, seems like there could be potential, and have been poking around to validate the potential, still wondering if this business is a good one to pursue and have some questions first: No worries. Questions are very good thing. Feel free to ask any questions you have now are moving forward. Please know that I’m here and happy to help with you are member of this training/mentoring or not.
      1. I have a possibility of a mh that must be moved, and have searched for available lots in parks within 3 hours distance and cannot find any available, do you have any suggestions? Which area of the country do you live in? I find it hard to believe that there are no empty lots in any mobile home communities within a three-hour distance of you? Do you have specifically hi criteria is for the park you want to move this home to? Will this be for investment purposes or your own private home? Are you getting a particularly good deal with this mobile home that “must be moved”?
      2. I am still wondering how you find and sell to buyers, your program seems to focus on buying the property for as little as possible, I am not seeing any video’s on selling, can you shed some light on that? I do have one or two free videos on selling that were done a few years ago. With that said we are selling to low-risk and qualified buyers typically via a down payment and monthly payments. If you did a video of you actually selling to someone that may help many to decide on your program and this business. Thank you for making this suggestion. I do discuss selling mobile homes briefly in a number of videos and do talk about the topic of how we price mobile homes in a pass video. With that said perhaps you could be more specific with regards to the topic or questions you have when it comes to selling these homes. I would certainly be happy to help if possible. I sincerely appreciate it. With that said my main business is mobile home investing and not selling programs. If you have any specific questions I would certainly be happy to help if possible.
      3. I have seen many videos of you interviewing others and indicating they have success using your formula. All of these investors are extremely hard-working and dedicated folks. The program is useless without them and their daily hard work. Can you shed some light on what your formula is? There is a video to the right side of this page that walks you through the backend of the mobile home formula. Please feel free to check out the rest of this website and if you have any follow-up questions or concerns never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • mark

    Reply Reply March 13, 2017

    hello John
    I found a deal in a park on a rented lot
    seller is asking 6k
    I have a buyer that is also my private lender at 10k
    how is the best way to wholesale or broker this deal without my private lender finding out what I paid for the home

    thanks mark

  • Ani B

    Reply Reply March 17, 2017

    Hello John
    Who will pay the taxes on the manufactured home after being sold on payments? my concern is that if the buyer pays them every year he/she might get discouraged if the market value on it is below from the purchase price, here in Utah where i live the market value of the home shows on your taxes receipt and it’s already low from what we are re selling it for.

    • John Fedro

      Reply Reply March 23, 2017

      Hi Ani B,

      Thank you for reaching out and connecting. Great question. In all reality this can certainly be done however you and your tenant-buyer agreed to do it. With that said you are in the driver seat and can dictate how you want this process to be handled. I would encourage you to make sure that the state still has your business mailing address on file for the home. All statements and taxes should come to your mailing address. I encourage you to pay this yourself and bill the tenant-buyer during the next month. You can send them any registration, sticker, or receipt that is needed at this time. I hope this helps and make sense. If you have any follow-up questions or concerns never hesitate to reach back out any time. All the best.

      Talk soon,
      John

  • Lana

    Reply Reply May 18, 2017

    Hi John,
    I am a new manager at Mobile Home and RV Park in California. I have court order it is hereby ordered that petitioner is authorized to abandon conservatee’s two mobile homes located —–. But i do not have a titles for them and one was already sold. How can i get titles ?
    Thank You,
    Lana.

    • John Fedro

      Reply Reply May 20, 2017

      Hi Lana,

      Thank you for reaching out and connecting. I hope you are enjoying your new management position at this community. I certainly do not want to give you any bad information so I would very much encourage you to contact the California HCD to asked them specifically about the homes in question. I assume that you have a serial number, title number, HUD label, or VIN pertaining to the specific mobile homes in question. If you have these numbers then you will certainly be in a good position as you are the park management and can certainly file for and abandon title or place a lien on the homes if needed. Again, the HCD will be able to point you in the quickest direction moving forward to solve your exact issues pertaining to these two homes. Please call the HCD at (800) 952-8356. I hope this all helps and make sense. Moving forward if you ever have any follow-up questions or concerns about this or any other issue never hesitate to reach out any time. All the best.

      Talk soon,
      John

  • kelly

    Reply Reply May 20, 2017

    I am in PA. I bought my (manufactured? mobile?) home with a private lender loan (trust) a little over 2 years ago, because i couldnt get financed due to my bad credit. now, the holder of the loan wants me to refi (this process started back in feb). they wanted me to find a “certificate of retirement of title” or a “cert. of surrender of title”. I have tried everything to find it, called penndot, called the title insurance co, called the origional owner and the person i bought the place from. I even tried to locate the homes’ manufacturer but they’re no longer in business. I don’t know what else to do. please help, I am desparate at this point. They are hounding me to get this done, and I feel like they should have had a copy themselves

    • John Fedro

      Reply Reply May 20, 2017

      Hi Kelly,

      Thank you for reaching out and connecting. I very much regret to hear about the situation and headache you are going through. I agree with your last statement that the sellers should have clear title to the home before they sell to you. If they sold the home without owning at themselves this may be considered fraud depending on the exact situation. If you have been living in the home for two years I’m curious why all of a sudden a title is being demanded from this loan servicing company? Perhaps you are about to pay this loan off and they are getting scared because they do not have a title to the property. Was your name ever on the title? If you’ve never seen the title then it will be important for you to get help from the seller, as they will have more information about the home and who they bought it from than you. You will be looking for the serial number or vehicle identification number of your mobile home. Once you have this information you can then go to your state to find out if taxes are current, if there any liens on the property, and who is the “owner of record” listed on the title currently? From this point you will likely not be able to get a duplicate title as it does not sound like you are the owner listed on the title, and the only one that will be able to order a duplicate title is the owner. I hope this helps and starts to make sense. There are of course a lot of unknowns and variables as I do not know your specific situation however I do hope this comment helps. Please comment back with any questions and concerns you ever have moving forward. Keep in touch please.

      Talk soon,
      John

  • Michael Wexler

    Reply Reply June 30, 2017

    If I can’t find an RMLO in my state, can I still make this work?

    • John Fedro

      Reply Reply July 4, 2017

      Hi Michael,

      Thank you for reaching out and connecting. The answer is, yes. You can of course sell the mobile home for all cash, bank financing, or rent the home if possible. If you would like to sell the home via payments there are additional ways to move forward however it is important that your paperwork stays compliant with all truth in lending and seller financing restrictions. Please note these restrictions vary a bit from state to state. With all the said I may have open more questions than I have answered. In short, there are definitely ways to move forward without an RMLO. I would encourage you to reach out to your local real estate investment club, if you have not done so already, and ask the president or active members who they would recommend as an RMLO. I hope this was helpful. As always, if you ever have any follow-up questions or concerns please never hesitate to reach out any time.

      Talk soon,
      John

  • Russ Orwig

    Reply Reply July 6, 2017

    Two questions, John,

    1) Our cash buyers are asking us to fix anything that their inspector finds lacking. If we have signed a contract with the new buyers (we haven’t yet), does that mean that if their inspector finds something that costs more than we can afford to fix, we are legally bound to fix it for them. Examples might be there is some paint chipping on the deck, there is rust in the metal shed, there is old termite damage to the outside patio, (in other words, they are nit-picking us to death.)..or they find a real problem we do not know about?

    2) We are selling the mobile home with appliances, the new owners want us to buy an insurance policy for them (we have no problem with this), but what if their inspector says the washer is not in good shape and will need to be replaced…do we have to replace these appliances? We could have sold the place without appliances, but left them in for the new buyers convenience. Are we legally bound to replace any appliance they feel is old or inferior?

    Thanks,

    Russ in California

    • John Fedro

      Reply Reply July 8, 2017

      Hi Russ,

      Thank you for reaching out and connecting. Please see my thoughts below in bold.

      1) Our cash buyers are asking us to fix anything that their inspector finds lacking. If we have signed a contract with the new buyers (we haven’t yet), does that mean that if their inspector finds something that costs more than we can afford to fix, we are legally bound to fix it for them. Examples might be there is some paint chipping on the deck, there is rust in the metal shed, there is old termite damage to the outside patio, (in other words, they are nit-picking us to death.)..or they find a real problem we do not know about? Understood. Even with a signed contract, as the seller, you can decide to fix or not fix anything you wish to. Keep in mind that if you do not fix the problem the buyers can absolutely back out of the deal and most likely take any good faith money they had put down on the home. With that said you will not be in jeopardy of losing anything or risking any type of lawsuit. Definitely do not lose sleep over this. If your house is nice enough and the buyer wants it bad enough, they will close on the deal. I hope this helps and makes a bit of sense. If you have any follow-up questions or concerns about this answer let me know any time.

      2) We are selling the mobile home with appliances, the new owners want us to buy an insurance policy for them (we have no problem with this), but what if their inspector says the washer is not in good shape and will need to be replaced…do we have to replace these appliances? The inspector can absolutely say anything he or she wishes to. In my experience the inspector is not always correct all of the time. Some inspectors will say one thing and other inspectors may say something completely different or missed something entirely. With that said you can choose to make any repairs you wish to or do not wish to. The buyers can make up their mind if they still want to do the deal moving forward. We could have sold the place without appliances, but left them in for the new buyers convenience. Are we legally bound to replace any appliance they feel is old or inferior? No, not unless you write this up in some kind of agreement and then actually close on the property. Then you would be responsible to fix these appliances, however even if you didn’t the buyers would have to take you to court over a few hundred dollars worth of appliances. This does not seem likely or too realistic. With that said I hope my answers above help and make sense. If you have any follow-up questions or concerns never hesitate to reach out any time. Keep in touch. Have a great rest of the week and weekend.

      Talk soon,
      John

  • Lisa Test

    Reply Reply July 12, 2017

    John,
    I recently had 10 mobile homes donated from a mobile home park that is changing into an RV park. One of the mobile homes has a lost title and it was lost before it got signed and changed into the new park owner’s name. I contacted the person on the title, and he wants me to pay him for the mobile home that he already sold to the park. Is there anything I can do? We are about to deal with unpaid back taxes. Should we wait?

    • John Fedro

      Reply Reply July 13, 2017

      Hi Lisa,

      Thank you for reaching out and connecting. Congratulations on securing this opportunity for these 10 mobile homes. Understood about your issue and the previous seller now wanting some money to sign his name. Kind of a jerky thing to do in my opinion. If this guy does not want to much money I may pay him a couple hundred dollars just to get the deal done. However you can also talk to the park and have them put a lien on the home and/or file for an abandon title this will end up putting the title into the parks control and name. From there they can sell the home to you or transfer to you for little to no cost. If you are able to close on the nine homes first I would encourage you to do that. Ideally you will be able to come back for this last mobile home once the title issue is cleared up with the help of the park, or you pay the guy a little bit of money to have him get a duplicate title and signed it over to you, or take possession of the home without an actual title (not recommended), or you simply pass on this last mobile home. I hope this all helps and make sense. Moving forward you will likely have follow-up questions and concerns for sure. Never hesitate to keep me posted and reach out any time. All the best. Have a great rest of the week.

      Talk soon,
      John

  • Lisa Test

    Reply Reply July 13, 2017

    John,
    Thank you for your advice. When I told him how much was owed in back taxes, he agreed to just apply for a duplicate title for me. He just wanted to be free from the whole thing. Anyway, thank you for taking the time to respond to me. I’m sure this won’t be the only time I have to deal with something like this, and it’s nice to know I have options.
    Thanks again!
    Lisa Test

  • debra martekki

    Reply Reply July 17, 2017

    i am buying a mobile home bucks couny p and i just found out the the seller is behind in his lot rent, am i responsible for his arrears?

    • John Fedro

      Reply Reply July 17, 2017

      Hi Debra,

      Thank you for reaching out and connecting. This will vary from mobile home park to mobile home park. With that said, a majority of mobile home parks will require that the new purchaser or old seller or someone bring the lot rent current before a new buyer purchases the property. With that said a new buyer could purchase the property however the person will likely not become approved to live inside of the park until the back lot rent has been paid in full. Keep in mind that some parks around the country will understand that the previous owner is responsible for the lot rent and not the new buyer. However this is not the majority of parks. With all of this said, most of the time you will be responsible for the lot rent in arrears. For this reason I would encourage you to ask once or twice if it is possible for the park to go after the seller directly for their lot rent and start off your relationship with the park at a zero dollar balance. Moving forward you will pay for the lot rent while you live in the home however it is definitely worth asking politely if the park will go after the seller for this back to amount instead of going after you. Keep in mind that if you are paying the seller cash for their property then you should pay the park all of the back lot rent first before giving the seller the rest of the proceeds… this is because you should not be responsible to pay the lot rent for the deadbeat sellers. I hope this helps and make sense. If you have any follow-up questions or concerns never hesitate to reach out any time.

      Talk soon,
      John

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