All Forum Posts by: John Fedro

Hi Helen,

Welcome to Biggerpockets. We are glad to have you here with us. What type of questions or concerns you have with regards to the Killeen/Temple area? I am closer to Austin however do work in these areas. Feel free to shoot over any questions and I would be happy to help if possible.

Talk soon,

John

Hi all,

Great thread and post, Stephen. I super admire your willingness to put your heart on your sleeve and open up your thoughts, fears, and goals for the future. The more I read posts like this the more I see that we are so much more alike us human beings, then different.

I think everyone here can agree that because you are already so determined with regards to real estate, there is no way you will go through life without being a financial success in some form or fashion. With that said, there are so many ways to create value under the huge umbrella that is real estate investing. Additionally, many of these methods and strategies may work in your area with hard work and daily effort. However different methods and strategies and niches all have different focuses and pros/cons depending on who you are, your time, capital and local market. Again, I am happy to say that you will absolutely be a success as long as you stay determined, do not spend your money to quickly, and ask hundreds of questions before moving forward.

I have not read all of the comments on this thread, however I did see where you mentioned my name. I am truly more than honored that you would consider potentially working together moving forward. I tell you this first because I would encourage you to gain much more insights about your local market and what you truly wish to do. Perhaps aim to take out active real estate investors who specialize in different niches locally to lunch over the next few weeks. Additionally, ask questions here or reach out to me personally with regards to mobile home investing specifically. You mentioned the term "get my feet wet" with regards to mobile home investing in your area. Please know that any decision you make to move forward with any real estate investing niche or new business should absolutely be made with clarity and logic. Mobile home investing, especially in your area, will take time, dedication, and daily action taken seven days a week. I mention all of this because the term "getting my feet wet" made it seem as if you may not be truly committed or in full understanding of everything required to close regular deals.

Again, this is all very good news. You are young and hungry! Keep up the daily effort to learn more, take local active investors out to lunch, and truly figure out where you want to start investing based on your time, capital, and immediate and long-term financial goals.

I hope all this advice comes off clear and makes a bit of sense. Moving forward if you have any additional questions or concerns never hesitate to reach out to us all here for help. All the best.

Talk soon,

John Fedro

Hi all,

First things first, it's great that you've taken such a passion and dedication towards your financial future, Daniel. As you mentioned, you are looking to replace your full-time income with some type of cash flowing asset. It is good that you are studying and ambitious. It is clear to see that you will absolutely be doing something with regards to real estate in the near future and likely throughout the rest of your life. Is this the right deal for you at this time? The answer is, "it depends".

First, with regards to your original question about any specific differences between the manufactured homes and a single-family home seller, not many. Most of the differences relate to the structure of the home itself. Obviously a single-family home and mobile home are very different in construction and will need to be inspected thoroughly no matter what the home. Many questions such as utilities will be the same as an SFR, however you want to know about the foundation that the mobile home is sitting atop. Are you able to add any more homes to this land? Are they well/septic or city water/sewer? Paved roads? City or private roads?

I'm assuming these homes are all rented. It is likely possible to obtain some sort of bank financing if seller financing is not available, however this is deal may not the best use of your financial credit leverage. Depending on the NOI of this opportunity, $900,000 can get you into a considerable size mobile home park or other type of investment (I really only know MHs). With that said, owner financing certainly would be ideal with the right terms if possible.

With all that said, it is good that you are reaching out to the seller and trying to figure out ways how you can help solve the sellers problem. Ask questions to figure out his needs and try to give it to him in a very win-win way. I encourage you to keep finding sellers and keep making offers whether this deal pans out or not. Keep us posted please.

Thanks for the shout out, Bill A.

Great advice everyone else.

Talk soon,
John

Evening all,

Here seems to be more information on the subject with regards to Florida. Hope this helps. http://www.flhsmv.gov/dmv/mobiledeal.html

All the best,
John Fedro

Hi Meg,

Thanks for reaching out and connecting with us all here. Great question you have. My first reaction while reading your comment was to cringe a bit as I could see you getting into a situation where you purchase a home and overspend on the acquisition price and the rehab cost only to find out that there are no investors or end-users that are willing/able to pay for your mobile home that is close-to-retail price. With that said this is only one possible outcome.

In your actual question you mentioned, if an investor would purchased a fully renovated manufactured home from you assuming "that there is still value and profit to be had". In this case, Yes there is a possibility you could resell this mobile home (in a park or on land) to an investor or end-user... Assuming that you could purchase the home for a conservative price and keep your costs low to then sell an attractive manufactured home at an attractive price. With that said, if you went through all the work and effort to find the home, secure the deal, repair the home, pay for holding cost, and market the home to resell… You should receive the highest profit possible (In my opinion) and should aim to then resell to an and-user who is going to live there for the next foreseeable years. The reason I mention this last part about an "end-user" is because these folks will almost always pay a higher retail price than an investor will.

There is certainly more to discuss here such as financing options (credit unions, lenders) when you resell and making sure accurate comparable sales are accounted for. I hope this all helps and starts to point you in the right direction. I am very curious to hear what other investors will say with regards to this question as well. Remember to be very very careful in this situation. Manufactured homes and mobile homes are not like traditional single-family homes when it comes to the buyers or the sellers. If you do work with a local investor in your area make sure he/she has a track record of closing properties when they say they will and are as active investors as they say they are. Again, I hope this answer helps a bit and makes some sense. Moving forward if you ever have any additional follow-up questions or concerns never hesitate to reach back out to us anytime. We're all here to help.

Talk soon,
John

Hi Xavier,

Great feedback Andriy and Rachel.

Congratulations on setting your sights towards mobile home investing. You are correct that mobile homes are somewhat similar to vehicles in some ways in your state. Please see the answers to your three questions below.

1. You are correct that you want to verify the sellers claims about their property and make sure you know exactly what you are purchasing. Do not be afraid to test all the faucets, look for leaks, check the hot water heater, and verify all appliances are in working order. Additionally in Utah you will want to call your state at your local DMV to verify there are no surprise liens on the title and taxes are current. Make sure to call the DMV with the mobile home serial number or VIN to reference. Let the clerk over the phone know you are a private-buyer who is purchasing from a private seller in a park and would like to get the steps needed to close correctly. These folks are usually fairly friendly and helpful.

2. You are absolutely correct to check with the park manager that lot rent has been paid. Additionally you will want to get approved at the park and inform the park manager your plan with regards to your exit strategy. Also be aware of the park's approval process for when you aim to resell/rent the home.

3. With regards to your third question the answer is, "it depends". You will want to head down to the local DMV with a signed title and bill of sale however the seller does not need to be with you in most cases. Depending on the age of the title it may need to be notarized however this will be mentioned to you over the phone with the DMV clerk as mentioned above in #1.

I hope this helps and answers your questions. While mobile homes can be forgiving there are a lot of ways to do a bad or skinny deal. Make sure you know what you are buying and that your exit strategy is solid. All the best and keep us updated on your progress.

Talk soon,
John Fedro

Hi all,

Congratulations Roscoe! This is only the beginning. You have achieved so much already at such a young age. With that said you have put in the time and dedication that is needed on a regular basis. I hope you are proud of where you are now and where you're headed. I am curious if you feel as if you have changed and grown into a "new person" since starting to invest? Keep up the great work and daily action moving forward.

Thank you so much for your kind words Diana and Daniel. The credit goes to the both of you and every real estate investor that does what it takes to close their first handful of deals. It is a semi-rare club to be in and we know what it takes to make a name for ourselves locally helping local buyers and sellers... Its hard work and tough. :)

Thanks all.

Talk soon,
John Fedro 

Hi group!

Thanks for taking the time to read this quick form post. I was super-honored last week when I was invited to come speak at this year's "unofficial" BP mastermind group that is coming up at the end of August located in San Francisco. I will be discussing for 30-minutes or so mobile home investing. In this discussion I want to arm everybody in the audience with some of the knowledge and experience I have gained over the past 14 years. I also want to make sure everyone has at least the basics to go back to their home areas and understand if this is a viable business based on your skills, available capital, credit, time, etc.

However, for everyone that plans to attend I'm curious what questions you have? I would love to take 10-15 minutes of this talk to answer some of the more common mobile home investing related questions. While I do know many of the questions that I feel will already be asked I would love some real-world feedback from coming attendees. 

So, what has perplexed you about Mh investing thus far? Big questions, little questions, silly questions are all okay. Please comment them below.

Lastly, if you have no idea what I'm talking about with regards to this "unofficial" BP mastermind event you should absolutely check it out here. https://www.biggerpockets.com/forums/521-events-an...

Thanks everyone.

Talk soon,
John Fedro

*Admin I hope this is in the right Forum area. If not please re-catergorize. 

Hi Kevin,

Great advice from everyone thus far. So awesome that everyone here has your back and is willing to help out in your business. I am regularly surprised by the givingness here on BP. The only thing I'll add that hasn't been added is the fact that there are likely better deals around you that are more lucrative and more affordable. It is great you have this 401k, that you're interested in REI, and that you are located in ABQ, this is a good area for MH investing. You may want to consider passing on this "deal" and looking to help other sellers nearby instead. Hope this helps. Keep us posted.

Talk soon,
John Fedro