Welcome back,
In today’s Mobile Home Investing Lesson Podcast episode #29, I’m proud to welcome back to the show a mobile home investor and brand-new restaurant owner, Robin. In today’s 43-minute podcast episode we discuss how, where, and why Robin was able to sell 13+ of her mobile home notes to fund a dream restaurant.
Robin is gracious enough to share what she has learned assigning her mobile home notes and growing her business moving forward. Learn from our mistakes and successes when it comes to helping sellers, buyers, and creating value with local mobile homes.
In this mobile home investing podcast episode below we cover:
✔ 1:06 Why are you on today’s podcast?
✔ 2:20 How much capital did you need to raise to make your dream restaurant a reality?
✔ 4:40 How did you find your note buyer?
✔ 8:03 Finding more homes for this note buyer moving forward.
✔ 8:50 Personally guaranteeing for the first 6 months.
✔ 11:04 Thinking outside the box.
✔ 12:50 Are you worried about this note buyer purchasing future mobile homes in parks you’re already inside of?
✔ 17:00 What due diligence did the note buyer perform on you and the homes prior to purchasing the notes?
✔ 20:14 How did the note buyer actually take control of these notes and payments?
✔ 20:40 Did you get any push-back from your existing tenant-buyers?
✔ 20:38 Did you guarantee the note payments to the note buyer?
✔ 25:30 Did your mobile home note buyer have to get approved in the mobile home parks your homes were inside of?
✔ 30:40 How much did you discount each note to the note buyer?
✔ 35:05 Know your worst-case scenarios.
A special Thank You to Robin for sharing her story and journey with us.
Throughout today’s podcast we are really not discussing Robin’s acquisition techniques, profit figures, repair costs, management concerns, etc. We are mainly discussing selling the mobile home notes you worked hard to obtain. Below are some bullet points from the podcast episode below.
Negotiating
In today’s podcast episode Robin admits it took multiple phone calls with the note buyer before arriving at a win-win purchase contract. This is not uncommon when dealing with logical and rational note buyers that wants to do their due diligence and understand just what they are buying.
Although Robin very much wanted this note buyer to purchase her mobile home notes, there were a few times she was quick to negotiate for the best deal. These times include what price to sell each note, guarantees made after the sale, closing dates, and more.
Related podcast also with Robin: MHI Lessons 22: Empowering Buyers, Contractor Thieves, 6 Mobile Homes In 10 Weeks & More – Guest Mike & Robin
Guaranteed mobile home payments and default.
There are no cookie-cutter type situations when it comes to most real estate investments. This author has been apart of deals where the note buyers purchased only partial note payments, or the first 20 note payments only, or a specific dollar amount of the note (at which point the note payments revert back to the original investor or someone else). Likewise, there are no cookie-cutter guarantees unless we make them this way.
In the podcast below, once Robin’s note buyer took possession of these notes, Robin agreed to:
✔ 3 months guarantee that all the payments would arrive on-time to the note buyer for the first three months. If these payments were not made by the tenant-buyers, Robin would make these payments to the note buyer herself.
✔ 6 months guarantee that Robin would also assist the note buyer with filling any vacant mobile home, should they become vacant again or were currently vacant.
Since 2 of the mobile homes were empty at the time of sale, this guarantee helps make the note buyer feel more comfortable and protected while the homes are filled and notes are seasoning with low-risk payment buyers.
Selling future mobile homes to your note buyer.
In today’s podcast Robin negotiates purchasing future mobile homes for this note buyer for a fee. These negotiations should end with a win-win arrangement both parties are happy with, however you should especially be happy as the investor doing most of the legwork/action. Robin’s example is a great reminder to continually be asking, how we may help the buyers, sellers, other investors, Realtors, park managers, etc that we come across daily.
Due diligence from the note buyer.
Robin discusses that the note buyer wanted to view her state ID, license, previous closing paperwork and more. The note buyer also wanted to inspect the properties once a purchase contract was drawn up and earnest money deposit. The note buyer would not have been interested to perform his due diligence unless his projected ROI wasn’t substantial.
Pro Tip: Whether you are the note buyer or note seller, if unsure of your next actions, obtain the help of a real estate attorney in your area when selling/buying notes.
Due diligence from the mobile home investor.
Robin was eager to get this deal closed. With that said she did not want to waste any time with someone that was not serious. Once a price was agreed upon Robin requested a Purchase and Sale Contract be signed and earnest money of $10,000 be deposited quickly. Once this was done Robin felt much more safe and secure that the note buyer was serious and moving forward.
Pro Tip: Aim to under-promise and over-deliver when it comes to your note buyers. Be available via phone for this person before, during, and after your deals are done.
Paperwork & Procedures: This specific podcast lesson does not discuss the specific processes, procedures, or paperwork while reselling a mobile home for monthly payments and/or selling notes. Depending on your specific state and exit-strategy there are likely laws and procedures before, during, and after closing that should be followed.
For everyone reading this, if you have questions, it is important to get them answered timely and accurately. Comment below or email directly if you have specific mobile home related questions or concerns.
Did we miss anything? Please comment below with thoughts and mobile home questions.
Love what you do daily,
John Fedro
support@mobilehomeinvesting.net
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15 Comments
jordan breeze
June 24, 2019hey john,
thank you for making this. i have been following along for a while. congratulations to robin! im in houston but would like to invest out of state if possible. i go back home to TN every month and wished to start investing in both areas. also along the path there would be good.
any thoughts would be appreciated.
thank you
John Fedro
June 27, 2019Hi Jordan,
Very good to hear from you. Thank you for reaching out and connecting. Please see my thoughts below in bold.
thank you for making this. i have been following along for a while. congratulations to robin! Thank you for the kind words. Im in houston but would like to invest out of state if possible. You are certainly in a unique area of the state and country. i go back home to TN every month and wished to start investing in both areas. also along the path there would be good. Understood. I’m curious for how long you are in Tennessee, and where in Tennessee you go every time? If you are therefore two weeks out of the month, every month, then this is obviously a substantial amount of time. However even a few days every month can certainly add up. However only a few days will be a bit too limited in my opinion. However if you spend at least seven days every month than arranging appointments and closing potential opportunities with some sellers is not out of the question. You can likely lineup appointments along the way as well however if/when you close on one you’ll most likely have to go out there at least five or six times before you resell the home to a qualified and approve tenant-buyer or buyer. This is not always the case however it is better to be on the conservative side than think you will not need to go back at all before reselling the home. Growing this business in one location has its challenges, let alone learning to market simultaneously and then working with buyers and sellers as you are on your road trip can certainly be a lot to take onto your plate at once. However with that said if you are in these areas than their most likely are mobile homes and mobile home parks that you can get through to begin understanding what is for sale, what people are paying, introducing yourself to managers, and owners and dealers, etc. Great job being this ambitious and knowing that there are absolutely sellers out there that need your help and buyers that want to buy. Moving forward if you have any follow-up questions or concerns never hesitate to reach out any time. Keep in touch. All the best.
Talk soon,
John
Melinda
July 31, 2019Plz help me I’m having to move my kids and i due to my mom passing step dad kicking us out and the trailer ive made monthly payments for 8000. And some on 2000 3 bed 2 full baths only going 10 miles can u help me with Guild lines or anything never done this before
John Fedro
July 31, 2019Hi Melinda,
Thank you very much for reaching out and connecting. I very much regret to hear about your mom’s passing and your current situation. I will certainly help with what I can. It sounds like you have been making payments on this home. If you kept a record of these payments than that will be a good start. I’m not sure if you have already moved out of the home however I would definitely call the police if your stepdad is being aggressive towards you or your kids. Did you have a contract that you are purchasing the home? If so this could definitely be shown in court to prove that you have a right of ownership to this mobile home. If your name was on the title than that would be the most ideal situation, however I do not think that this is the case.
If you would like the home back than it sounds like you’ll have to take your stepdad to court to prove that you have a valid interest in the mobile home. You may want to call around to multiple real estate attorneys to see if they deal with mobile home ownership issues and if they offer any free consultation to see if they could help you. If you simply wish to move forward and look for another place to rent or purchase on payments than this is certainly acceptable as well. Let me know if you have any specific questions about this or follow-up questions at all. Keep in touch moving forward. All the best.
Talk soon,
John
Jonas
January 19, 2021I’m very interested in purchasing a note on a mobile home. Please help thank you in advance for your time.
John Fedro
January 27, 2021Hi Jonas,
Thank you so much for reaching out and connecting. Feel free to keep in touch with any specific questions that you have with regards to mobile home not buying.
Talk soon,
John
richard lovell
July 16, 2019if my dad takes over my lone at the bank every in his name now bank is forcloseing on the land but the moblehome the title is stil in my name showing no lines in my name can i pull the dublewide off that land
John Fedro
July 16, 2019Hi Richard,
Thank you for reaching out and connecting. I am a bit surprised that your dad was able to take over and assume the underlying loan at the bank concerning the land. However if it is a local bank that is holding the note I could see how they would allow someone to step in your place after likely verifying credit etc. However if this original loan of yours was originally nonqualifying and assumable than that would be something to see as these loans aren’t too common anymore.
With regards to your question, yes, if the title is in your name without any liens than you may absolutely pull the double wide off of this piece of land. Moving a double wide can be a bit tricky so let me know if you have any direct questions. Happy to help if possible. Feel free to keep in touch.
Talk soon,
John
Harry
July 18, 2019Do I need a llc to start investing or can this wait? Thanks
John Fedro
July 24, 2019Hi Harry,
Thank you for reaching out and connecting. I work with folks around the country and many of them do operate out of an LLC. However some of them do have an S Corp. or S Corp. There are different pros and cons and tax advantages to the different types of corporate entities depending on your current situation and financial goals. I mention this because an LLC may not be the best solution for you. I also mention this because I really not a CPA or financial planner. Many of the mobile homes we purchase are purchased in separate and unique personal property trusts. This means that your name and/or LLC will not appear on the title or ownership paperwork. However your LLC will typically be beneficiary of this trust until you find a tenant-buyer to purchase the home from you via cash or payments. With all of this said, in my experience you do not technically need an LLC to get started. However after deal five or 10 it would definitely be a good idea to have some liability protection. It is also good to have an LLC so that your tenant-buyers or renters will be paying into your company bank account versus your personal bank account. The reason for this is because we like to appear that we work for a company, rather than the company being owned by us. I hope this all helps and answers your question. If you have any follow-up questions or concerns never hesitate to reach out any time. All the best.
Talk soon,
John
Troy L Fisher
July 24, 2019Robin, awesome! I’ve helped connect note sellers with note buyers, and it’s amazing that this isn’t more of a thing. I was at an REI meeting talking about a park I was trying to purchase and talking about how difficult it is to value a tape of notes, when people were surprised that there are notes everywhere!
I’ve found banks are very reluctant to have notes used as collateral, and it can be difficult to sell the notes, especially at Remaining Value. If anyone else is looking to do this, go to your local meetups and try to find an Eddie Speed student they are always sniffing around for notes.
John Fedro
July 25, 2019Hi Troy,
Great to hear from you! Thanks for reaching out and connecting here. Additionally, thank you for the kudos for Robin. It is amazing what she has accomplished, and I love she was able to take her mobile home profits and move them over to a dream she has had for many years.
Additionally, great story about when you are at a local REI club. Also, congratulations on the potential coming park! 🙂 Great tip as well with regards to getting out to local club meetings and looking for Eddie Speed students. He certainly has been teaching notes for many many years now. Thanks again for taking the time to comment. Hope this podcast was helpful. Keep up the great work with regards to what you are doing. If you ever need me I’m just an email or phone call away anytime. Keep in touch.
Talk soon,
John
Lauren
September 17, 2019Amazing Robin! Listened to your first interview with your husband LY, and to hear you this year – you are speaking like a seasoned investor, especially selling your notes like a pro, and building the relationship with the other investor ~ I loved hearing this.
Super congratulations on pursuing another dream, with opening your restaurant, and all but success to you and your family!
Onward and Upward!
Lauren | Value Mobile Homes
Kambon Kali
February 7, 2021Great story Robin! Thanks Jhon for the tutelage. Hey @troyfisher how you been?
John Fedro
February 24, 2021Hi Kambon!
Very good to hear from you. Great story about Robin right! I need to check in to see how her, her restaurants, and mobile homes are doing now during Covid. Hope this podcast was helpful. Keep in touch moving forward and any questions or concerns you have never hesitate to reach out any time. Keep in touch as always.
Talk soon,
John
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