John Fedro's strategy

[Matthew Cauble]

Hello all, I've been watching and reading up on John Fedro and his approach to mobile home investing and I have a few questions regarding it. Does he move mobile homes to other lots? I've been doing research on moving MH and it's not cheap. Anywhere from 2-5k. I've seen many on Craigslist for good prices but have to be moved. That just seems like those a the best deals in my opinion. Because they are motivated to sell. I just don't think it's worth it if it has to be moved. That just eats away the profit. Or is craigslist not that great of a place to find sellers? Is advertising a better option to find sellers? Or just doing most deals on MH inside parks?

[Bill Neves]

@Matthew Cauble

I agree with @Orlando Paz ...  (Hi Orlando!)

We recommend talking to park managers and asking them if they give a 'move in incentive'. Some do, some don't. Helps break the ice when meeting them. Then we ask if they have any in the park that need work that they don't want to do. Or any 'problem children' who you can help with by buying them.

By helping park managers we find they appreciate it by bringing us more deals. I did an interview with a park manager. Posted on YouTube Interview with a Mobile Home Park Manager

The $2k-$5k you saw to move, can be a lot higher in some areas. We've seen $5k-$7500 for a double wide. Locally a triple wide (3 sections) cost $18k to move. The truck cost is a portion. Also, tear down, where it is and set up, once moved.

As far as deals go, we find that existing units in a park or land are easier to work with. UNLESS you get an incredibly low price and with move cost = a great deal.

We completed one in March. Could have moved it to a nicer park but fixed on location. Sold for $89,900 cash and netted $35k. 

We just took over another one in a park that we got from the park manager referral. We got it for $6K, with 2 months free rent. It will take approx 13k to repair. And will list for $59k when done in 3 weeks. Net will be $25k+.

Yell if you have any questions.

Have fun!