When looking for the next deal, many investors tend to overlook mobile homes, but this doesn’t change the fact that there is certainly money to be made from them as an asset class. With over 18 years of experience in mobile homes and parks, our guest on today’s episode can certainly attest to that. John Fedro stumbled upon mobile homes when he invested in a four-bedroom unit inside of a preexisting park. Over the next eleven months, he added ten more mobile homes to his cash flow and portfolio.
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Now he spends his time actively investing in individual mobile homes as well as acquiring parks to hold long term. John talks about how he was initially embarrassed about his investments due to the stigma that surrounds them, but once he opened up to people about it the deals started coming in even faster. In this episode, you will share in John’s wealth of knowledge, as he gives pro tips about whether to invest in homes or parks first, how to calculate the cash flow a prospective park will bring in, and what to look for in a deal before moving forward as an active or passive investor. Joining this conversation, you will also learn exactly the type of parks John likes to invest in, and hear very interesting arguments for why this particular asset class is downturn resistant.
Key Points From This Episode:
- How John got more leads after beating his shame around investing in mobile homes.
- Ramifications to do with mobile homes being classed as personal property.
- John’s regrets about not getting a manager and getting into parks sooner.
- The idea that buying homes or parks first comes down to preference and circumstance.
- Where people can learn more about mobile home investing: podcasts and mentors.
- The value of having a mentor that you can call to guide you through deals.
- How to buy a new home or park: figure out what kind you want and shoot wide.
- Mobile home park types that John goes for: ones which need a lot of renovation.
- Ways of knowing what you will make after buying a park: population, comparables, etc.
- An equation that tells you what to pay for a park whether it has public or private facilities.
- Qualities that can add or decrease value in parks such as workspaces, equipment, etc.
- The minimum requirements to have before buying: money, a contract, and a mentor.
- Being able to move very quickly if a good bargain is found online.
- John’s biggest challenge in mobile home parks: dealing with residents.
- The durability of mobile home parks as an investment through market slumps.
- How John will be improving his business going forward: outsourcing.
- Things for passive investors to look out for before getting into a syndicated deal.
- Methods of outsourcing such as using virtual assistants.
[bctt tweet=”Be ready to move quickly when something pops up online. Make the call, make the offer, get it under contract. — @fedrojohn” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About John Fedro
John entered the world of real estate accidentally when he invested in a four-bedroom mobile home in 2002. Over the next eleven months, John acquired over ten more units in the same asset class. Since these early years, he has gone on to help over 150 sellers and buyers get rid of unwanted mobile homes and obtain a safe and affordable manufactured home of their own.
Years later, John keeps to what has been a successful model: buying, fixing, renting, and reselling mobile homes. Like almost every long-term investor, he’s made more mistakes than he can count. John discusses many of them on his blog and YouTube channel, where he shares his stories, experiences, lessons, and some of the experiences of other successful mobile home investors that he’s helped.
John has written hundreds of articles concerning mobile homes and mobile home investing, been a featured podcast guest on other prominent real estate podcasts, authored a highly-rated book aimed at increasing the happiness/satisfaction of average real estate investors, and spoken to national and international audiences concerning the opportunities and practicality of successfully investing in mobile homes.
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