Mobile Home Investing Q&A #2: 20+ Deals, Growing Your Portfolio, Happiness, & Helping Others

Welcome back,

Over the past six years helping investors understand the mobile home investing business and helping these investors grow their cash-flow businesses, I’ve come to learn a few very important things about MH investing success. There is an exact recipe (likely many paths) to be an active and successful mobile home investor that is well known in your local area and has a great word-of-mouth reputation.

Mobile home investing does not take large amounts of money, time, or credit however, 2 things that are absolutely needed are (1) a clear plan on moving forward and (2) determination in abundance. The paperwork and procedures for mobile home investing can be taught to a child; the real magic in growing a sustainable and scalable manufactured home investing business is you. Without your willingness to help others and take daily action you’re on a course set for poor-results, anxiety, and eventual failure. Conversley, with a proper plan and daily focused efforts you will be able to grow your business, keep your buying funnel full of leads, and keep a positive reputation one-deal at a time.

Special Thanks To This Week’s Guests

I love husband-and-wife investing teams, or any investing team that is done with loved ones. Perhaps this is because I am a bit envious and one day strive to invest in real estate with my future family. This week’s guests are seasoned Idaho mobile home investors Walt and Caiyun.

Walt and Caiyun spend 45 minutes with us dissecting what is working and not working in their business. This investing power-couple has closed over 10 cash-flow deals this year alone, and have been having a blast doing so since they began. In this video we also outline the differences in Walt and Ciayun’s cash-flow business versus most other Mobile Home Formula investors.

Hint: Walt and Caiyun spend a bit more on purchasing newer-type mobile homes. When reselling they sell for nearly double the profit and over 10 years of payments most deals. This compared to our typical payment term of 5-10 years maximum inside parks. I hope this part makes sense. If you have any questions don’t hesitate to comment them below.  

What you’ll learn:

  • 1:35 Give a brief background of yourselves.
  • 3:00 How much cash-flow does your average mobile home bring you?
  • 3:05 How many payments are you usually collecting from your buyers?
  • 7:00 What's Walt's and Caiyun's specific model? And is it right for you?
  • 8:27 How long before you make your initial investment back?
  • 9:50 What makes you unique? And how may others copy this?
  • 11:00 Quick seller case study #1
  • 11:40 What else do you love about MH investing besides all the profit?
  • 12:20 How did you pay for upcoming cruise trip?
  • 13:20 Quick case study #2
  • 14:40 What your buyers are saying?
  • 15:20 Working with park managers.
  • 16:25 Are park managers helpful or hurtful?
  • 16:40 Using park managers as testimonials.
  • 17:40 Speaking candidly and honestly to park managers to help grow your business.
  • 18:50 Convincing park managers of your value.
  • 21:00 Working with your tenants & Taking care of your buyers
  • 22:40 On average how long before your homes resell?
  • 24:40 Creating affordable housing for your buyers in mind?
  • 25:40 What are the most important daily activities for active mobile home investors?
  • 27:20 What do you look for when you buy?
  • 27:30 Should a new investor focus on one niche or help every seller they can?
  • 28:40 Investing in 3 manufactured homes at once.
  • 29:35 Why do you both still have 9-5 jobs?
  • 31:20 What would you both change about your MH investing past?
  • 31:45 Know your market and work backward to help stay safe.
  • 33:00 Working effectively as husband and wife
  • 34:20 Screening potential buyers.
  • 35:00 Advice for newer mobile home investors
  • 39:40 Having a new car paid for by resident.
  • 40:40 Learning from other mobile home investors nationwide.
  • 41:40 Passing on $20,000 cash to take payments.

Logically speaking there are sellers within 5, 10, or 20 miles around your home that are scared and confused as to why their homes have not sold yet. These sellers need your help, education, and advice. Many mobile home sellers may incorrectly believe their homes will sell for a higher price than the market will pay. It is our job as mobile home investors to help bring clarity and understanding to these and all sellers. As real estate professionals is our job to help educate sellers as to the variety of ways they will be able to sell their homes quickly, withour help and without it.

In conclusion, a successful mobile home investing business takes daily effort, clearly understanding your market, and the ability to help local mobile home owners and buyers. There will never be a single blog-article or video that will be able to answer all of your questions moving forward. While investing you’ll see and hear many unusual, unorthodox, and downright weird things. You’ll also be making daily offers to countless sellers that are all selling all different homes, with unique needs, and at different price points. With that said, make sure to take daily action and add value to every seller you come across.

We hope this article and video has been helpful. Any questions or concerns you have moving forward never hesitate to comment below or email us directly.

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

 

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16 Comments

  • Jeff Brown

    August 31, 2015

    Hi John,

    Great video lesson. I have been investing in mobile homes often on for the past 3 years. In this time I have made a lot of the mistakes you outlined in this video. I definitely wish I would’ve found the site before I got started, would’ve definitely save me a lot of time and stress. I will absolutely be checking back here and going over all your videos and post this week. Glad I found your site keep up the great work.

    Jeff in Colorado

    • John Fedro

      September 1, 2015

      Hi Jeff,

      Thanks so much for commenting and for your kind words. Additionally, I’m glad you found this website and found value in it already. I’m sure you can share quite a few stories yourself. Please let me know what you think of the articles and videos and if you spot any corrections needed don’t ever hesitate to mention it. If you ever have any follow-up questions or concerns never hesitate to reach back out. Keep in touch and feel free to email me anytime.

      Talk soon,
      John

  • Anthony Kleff

    August 31, 2015

    Congratulations Walt and Ciayun! I need to get my wife to watch this. Maybe this will help convince her I’m not crazy to think mobiles are a good thing to invest in for our retirement.

    This helps a bunch. Thanks

    • John Fedro

      September 1, 2015

      Hi Anthony,

      Thank you for commenting in the great wishes. I believe Walt and Caiyun are currently on their cruise, so they may not see your kudos until they get back. This business is certainly a bit unorthodox compared to traditional single-family home investing. With that said there are definitely advantages and disadvantages to consider with regard to mobile home investing. If you or your wife have any specific or general questions I’d be happy to add clarity where I can. Never hesitate to reach back out. Thanks for following along.

      Talk soon,
      John

  • John Rodgers

    September 3, 2015

    Great video John, Great information and great people!We currently buy and sell raw land using the same platform with owner financing and have been following you for a little while now as we look to add to our passive income stream.

    This looks like it could be a winner!

    Look forward to talking to you soon!
    John

    • John Fedro

      September 5, 2015

      Hi John,

      Thanks so much for being consistent followers and taking the time to comment. This business of mobile home investing is certainly not the end-all be-all of real estate, however it does allow for a bunch of unique advantages (and some disadvantages) compared to other forms of real estate. With that said congratulations on all your hard work and everything you have accomplished up into this point. It likely did not come without daily work and consistent effort. Moving forward you will definitely have future questions and concerns so never hesitate to reach out to me anytime. Always here to help.

      Talk soon,
      John

  • Jason Conferido

    September 8, 2015

    John
    Hey man it’s me again. Before anything else I would like to congratulate you in once again creating a very informative article. Thank you for giving us tips not only on how to make our investments bloom but also by advising us on how we can help others. Now I have a few minor inquiries I still am searching for the rules on mobile home in my area, not really sure if it’s allowed in my country. Nonetheless i would still like to know, would it be possible to have a mobile home investment using rent to own transactions?
    Jason

  • Paul

    September 8, 2015

    Has anyone bought/sold in southern California? I’m in San Diego, have no experience, and want to get started. However, I am finding that to get the proper licensing, I have to have previous experience, so it’s one of those catch 22s. Is there any way around this?

    Also, I’ve seen some “good deals” (at least they look like they are), in Nevada, but I’m still struggling with how exactly I know if they are. Is it just a matter of researching what the market in that area is doing, or are there more specific things I should do to make sure a “good” deal will be a great money maker.

    Thanks for the help

    • John Fedro

      September 9, 2015

      Hi Paul,

      Thanks for reaching out and commenting with your concerns. Your state absolutely would love you to have a dealers license before purchasing and reselling a mobile home for profit. I have written and recorded in article and video on the site outlining my thoughts concerning staying compliant in moving forward. In your state you may become a licensed realtor in lieu of becoming a dealer.

      Concerning the properties in Nevada. If these are within two hours of you than it could be a possible win-win idea to invest in some of these homes as well as local opportunities that arise in your county and the surrounding counties more inland. In order to find out how much buyers are paying you should absolutely talk to 50 to 100 buyers before ever making a purchase offer to buy any mobile home. It is so important you hear just how many real and how many flaky buyers there are. In addition, it is important to absolutely know how much people have to move in and will pay monthly for a two bedroom and three bedroom home they like. There are many other questions to ask from your buyers however these will give you an idea as to what you may resell a potential mobile home for. Remember that you want to recoup your entire investment capital in 10 months or less and generate a minimum of $300 net cash flow on every home you invest in. I hope this helps and makes sense. If you have any follow-up questions or concerns never hesitate to reach back out. Always here to help.

      Talk soon,
      John

  • Realy

    September 21, 2015

    Nice Post! its very informative for us.

    Thanks for sharing with us 🙂

  • Cece

    September 29, 2015

    Hey John. Your site by way of referral and I think what you’re doing here is great. I have been a “flipper” for about six years now. My niche is to find a manufactured home, fix it up, and then find a cash buyer. Everyone has different preferences for different reasons, and in my state of Oregon, any type of financing (which include adding more to the sales price and/or charging interest) dips your toe into the state requiring that you be licensed to finance like a mortgage broker. Because of that, I tend to stick to strictly cash deals. It’s possible to offer a contract sale, but without the extra gravy, there really is no incentive to do that. I have great relationships with many parks in my area, and up to an hour in either direction of where I’m based at. People often ask me how to do my business, and I laugh and joke and tell them if they pay me a percentage of their future profits going forward I’d be happy to share everything I’ve learned. Keep up the good work and keep the tips coming. It’s always interesting to hear about this business that I love.

    • John Fedro

      October 1, 2015

      Hi Cece,

      Thank you so much for reaching out and taking the time to comment. I’m always very interested in meeting other active mobile home investors. You are certainly correct about your state; Oregon is notoriously strict when it comes to banking regulations and mobile home dealer licenses. Makes complete sense about there being no real incentive to invest you cannot create value and a profit while bringing deals together. I had to giggle a bit when you mention your response to people asking you how to invest. Thank you very much for the kind words on the site. If there is anything you feel that I am missing or some improvement you see I would love to hear it. Always looking to make the site better for everyone following along. Keep in touch.

      Talk soon,
      John

  • HelenChong

    December 4, 2015

    Here it is really important to understand the local mobile home market, local sellers and local buyers. Moreover, it is advisable to have a much better understanding of the plan and mindset, while investing in individual mobile homes.

    • John Fedro

      December 8, 2015

      Great comment, Helen. Thanks for reading and following along. Please keep in touch and if you have any mobile home related questions never hesitate to reach out to me anytime.

      Talk soon,
      John

  • Thomas

    October 29, 2016

    Hi just found your site. I am looking into buying a mobile home in Polk county FL. The home is being offered to me at a really good price and I will be paying cash. So I can assume all I need is Park approval I am not 55 but close and I am told that I can own but not live in but could rent the home. So after Park approval all I would need is the title and bill of sale correct? Any other information you can give would be great. Thank you in advance.

    • John Fedro

      November 1, 2016

      Hi Thomas,

      Thank you for reaching out and connecting. At the very minimum you want to have a correctly signed title with both the buyers and sellers signatures and a date. A bill of sale with the home and sale information as well as all signatures and a date is also advisable. You will then bring all this to the local Department of Motor Vehicles to make sure it is transferred into your name properly. With that said, it sounds as if you are buying the mobile home to rent it to somebody else. You made it sound like the park does not want you to live in the home. 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