All Forum Posts by: Orlando Paz

I appreciate all the feedback!

One of the things I find fascinating, is the grey area in terms of whether it’s a personal property or real estate. I’m not oblivious to the fact that it is a home, but it is also considered a vehicle. Now I don’t know if there is such a thing as owner financing with cars, but will this mean that now people who choose to sell their car this way may need to follow the Dodd Frank rules?... Just a little sarcasm!

Just came across a bonus booklet on Lonnie’s website, which discusses the new rules and how to invest without breaking “laws”. Looks like a decent resource, so I’ll just go ahead and order it.

I was wondering if anyone had any tips or advice on dealing with the Dodd Frank laws?... I’m not too savvy about the details of these new laws, but it seems to be a huge hassle from what I have read so far.

Taking the annoying Dodd Frank regulations into consideration, how is the rent for a mobile home being determined?

According to an older publication of “Deals on Wheels”, There are tax advantages to selling a mobile home as a lease option versus financing it. Again, I realize this may now be an issue with good ol Dodd Frank, but was wondering what other’s out there thought about the two strategies. 

@Mark Nolan - It's great to meet you. I am unclear about what you meant by sending messages to members. Just need some clarification.

Although renting to college students does not necessarily mean that the place is bound to be destroyed, I would say that I think there are some measures you can probably take. Invest a little money with an attorney, and have the attorney customize a lease that will make the parents of the students responsible, should they do any type of damage to the property.  I think that if a student knows that their parents will get the brunt of their irresponsible behavior, they may be more likely to think twice about their actions. In addition, I would suggest that you check out the free BP guide on how to screen tenants. There is a wealth of information in that guide. There are also numerous podcasts that goes into the topics of renting and tenant/landlord interactions.

@Bill Neves - Awesome responses! Those who don't fully understand MH investing, are quick to be somewhat judgmental about such a niche. I happen to see it as quite a fascinating way to invest in RE. Prior to being bit by the REI bug, I had never heard of mobile home investing. I am still learning as much as I can, but my initial goal is to make quick money via buying/rehab. As a newbie, it's like being a kid in a candy store (without money! lol!). Once I have money to invest, I can then pursue MH investing.

@Roy D. - Bill pretty much answered your question. 

If you have taken the time to question the validity of mobile home investing, then it sounds to me that there is some level of interest. I would say that a good person to listen to is John Fedro. He has an informative podcast on here...

BP Podcast 075: Mobile Home Investing and Getting Started With John Fedro

He also has numerous Youtube videos. 

Another good person is Jefferson Lilly. He deals primarily with MH parks, but also invests in mobile homes. He has a podcast as well...

BP Podcast 111: A Unique (and Profitable) Real Estate Niche You’ve Probably Never Considered with Jefferson Lilly

Much like fear, we are all quick to judge on the things we don't know. If you are an investor, I would suggest researching MH investing. As the old cliche goes... "Knowledge is power". Once you learn more about it, then you can determine if it's something that will benefit your personal investment goals.

I met with a real estate agent today to view a single family handyman special. During our chit chat, he expressed an interest in investing as well. The one topic that caught his attention during our conversation, was mobile home investing. He even suggested partnering up. It's not the first time I hear someone express an interest in "joining forces" to tackle mobile home investing. The idea actually does not sound bad, considering that it may actually open doors to actually taking action. My problem is that I am mostly familiar with the "Lonnie deals" type of investment. Using such a strategy may work well as an individual investor, but I don't see how it could be profitable in a partnership scenario. Maybe there is a way to make such a partnership work. I just don't see it. Perhaps there is a different way to invest, which allows for a profitable partnership to flourish. Any thoughts or suggestions would be greatly appreciated.

I'm a newbie in a similar financial and credit situation. I don't know what your investment goal is, but have you considered using a hard money lender? From what I know about them, they charge an arm and a leg for financing. On a positive note though, they can also offer an opportunity for people looking to enter the investment game. They seem to be a good choice for investors looking to buy and rehab (aka "Flip"), as you can pay back what you owe and still make some profit. Another very good option is mobile home investing. Initial money up front is not as bad as other investment niches, and is actually a very good niche in itself. Just some thoughts from one newbie to another. Good luck!

Is it possible to wholesale a home that is listed by a real estate agent/broker? I came across a home that needs work. It is listed by a broker for $83K. I looked at some rough comparables on Zillow, to get an approximate ARV. Similar homes sold for $165K. I subtracted 70% of ARV, which equaled $115,500. I then gave a very rough estimate of about $10 to $15K worth of rehab. Included $10,000 as my fee (which I need to determine if this is a fair amount). I came up with $90,500. There is still enough of a spread to cover additional repairs (if needed), and to add to my profit. To me, this sounds like a win, win, win for everyone involved. Just need to know how I can do this with a realtor. Any feedback or advice would be appreciated.

@John Fedro - I agree. I love the support and advice I get from these forums. Prior to joining BP, I never knew there were so many great people out there willing to help out. Your feedback has definitely been helping me, and my interest in MH investing is still there.

I’ve just recently become familiar with mobile home investing. Prior to learning about such a niche, I was only familiar with the more common types of investment niches (buy/rent and buy/rehab/sell). I still feel MH investing is an interesting and exciting niche. My personal and primary drawback with MH investing (or even buy/rent scenarios) is the need for initial funds. From what I know so far, these niches offer great cash flow. In my circumstances though, I am struggling to save money and find alternate ways of creatively funding something as simple as a mobile home. With this being said, I feel that investing in a niche that offers an opportunity to make a quicker profit is more beneficial. At least to get the ball rolling, and be able to reinvest right away without having to wait on the savings from a cash flow type of investment. I’m not saying cash flow is a bad thing, I just feel that initially it may not help with the momentum I seek to get out of the financial hole I am in. Once I have established some funds, I can then gradually start looking into investments that offer the benefits of cash flow. I could then probably afford a mobile home (or two), without wondering where the funds will come from. In addition, I could also start looking into other cash flow investments, such as multifamily rentals. I don’t know how accurate my perceptions are on mobile home investing versus other niches, but I’m just going by what I understand thus far.

Most of my current research has been based on what is advertised though various websites. You are right though. I have not spoken to many sellers. I only had the chance of attempting to help someone sell their home. Since I didn’t have the funds to invest, I decided to try and make a commission by helping them sell their home. They then decided to raise the price, and go at it themselves.

Your right about my being in a difficult place financially. Not looking to share a sob story, as I consider mine to be one of imminent success. I feel like a kid once again. Hungry and ambitious!... As I see it, there’s only one way to go when you are at the bottom, and that’s up! That’s part of the reason I am trying to find an opportunity through buy/rehab, which could potentially open doors quicker to continuous investing. Without question, I will seek out deals with great caution. Since I'm tackling this on my own, I will bring up concerns within the forums. Getting ideas and support from other's is a good way of finding solutions, until I can find someone down the road to consult with.

I haven't been to any REI meetings as of yet, but hope to start with the next upcoming meet.

Your feedback is very helpful. I was wondering though what you meant by “ramping up quickly”? 

@Sam Ally I really appreciate your response. As you mention, education is key. Since being bit by the REI bug, I have immersed myself in the topic and trying to learn as much as I can. Can't help feeling fired up to start though. I am also trying to find a perfect niche to start with. So far mobile home investing seems to offer good opportunities for someone with little money to start. With that being said... If lack of funds were not an issue, my true interest lies in flipping and multi-family investing. Finding someone in the Lake county area that does mobile home investing will probably require some asking around, and attending RE meetings. As you mentioned, lending my skills (architecture and drafting) along with other physical work might be a good way to get my feet wet and learn from those who know first hand.