976: How to Start Mobile Home Investing (The Right Way) for Just $15,000

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 24 June 2024

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Can you start investing in real estate with just $15,000? Yep, and mobile home investing is how you do it. We know what you’re thinking, “I don’t want to own trailers! I want to invest in “real” houses where the “real” money is at!” That’s what today’s guest John Fedro thought too some twenty years ago when he stumbled into mobile home investing, which, at the time, was even too embarrassing for him to share. But, over the past two decades, this at-first “embarrassing” investment has made him wealthy, and if you follow his lead, it can do the same for you. John has successfully made money with mobile homes in various ways: buying and flipping, wholesaling, renting, and seller financing, the main topic of today’s episode. He provides a masterclass on how to make money buying and selling mobile homes, where you essentially take on the role of the bank. However, it’s crucial to be cautious. Mishandling this could lead you into an ethical gray area and potentially harm your buyer. On the other hand, getting it right can create a win-win situation for both the buyer and seller while making you wealthy. John shares his whole strategy, plus how he’s getting into deals for $15,000 and often making DOUBLE his money and $400 per month (or more) cash flow per door when he seller finances these properties. If you want a way to get into real estate investing without a ton of cash but with the potential to make a serious return on your money, this may be your winning strategy. In This Episode We Cover The three “levels” of mobile home investing and how much each costs to get into The danger of seller financing the wrong way and how it can hurt your buyer Why you MUST background check EVERYONE you seller-finance a mobile home to One thing that new mobile home investors overlook that can ruin your properties The exit strategies you must know about to avoid losing money on your next deal Whether or not we would invest in mobile homes (and our concerns with seller financing) And So Much More! (00:00) Intro (02:32) Seller Financing...Mobile Homes? (11:18) Win-Win Seller Financing (16:52) 3 "Levels" of Mobile Home Investing (22:08) How Much to Invest? (23:53) Cash Flow and Profit Numbers (26:51) What to Look Out For (32:38) New Investors, Do THIS! (33:52) Would WE Invest In It? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-976 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	What's the deal with mobile home investing and why do some investors find it problematic?
0:04.8	Many investors say that you can put a little down and make an excellent return,
0:08.8	but how can you do this ethically where it's a win-win situation with your tenants. Today we're talking
0:14.4	about all things mobile homes.
0:17.0	Hey everyone I'm your host Dave Meyer and with me today is Henry Washington and in
0:26.0	today's show we're going to talk about mobile homes and mobile home park investing
0:31.9	and we're going to bring on a guest John
0:35.2	Federal who's been investing in mobile homes for a very long time and has a broad
0:40.4	spectrum of experience with this strategy.
0:43.5	So we're going to hear all about his experience.
0:45.8	And as you'll hear in the conversation,
0:48.8	a lot of it centers around this concept of lease to own or lease options and I just before we get into the
0:56.5	conversation wanted to explain what that is. You might have heard this as rent to own but
1:02.0	basically the situation is when someone owns a property
1:05.6	or a mobile home they can create a structure where the tenant is basically buying the
1:12.0	property from the current owner, you the investor, over time.
1:17.0	And this can be a really great way for people who struggle to afford a down payment or might not have the right credit
1:25.0	to get into home ownership.
1:27.0	So there are some challenges though and some nuances to Least to own that I want you all to understand just so this conversation
1:34.2	makes sense and context but basically when you're a tenant in a lease to own
1:38.3	situation typically you are paying more than you would to rent out that
1:42.1	situation because you're trying to own that property
	...

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