Ep. 92 John Fedro: Using Mobile Homes to Get Started Investing in Florida Real Estate

Posted on August 2, 2016 by admin

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Florida has its fair share of mobile homes. Whether providing seasonal residences or year-round affordable housing, mobile homes have become an ever-present property class in the Florida real estate market. Though they have been a historically neglected asset class, investing in mobile homes can provide strong, consistent returns. As markets in other asset classes become more competitive, mobile homes may be a rising hot market for investors.

John Fedro is one investor who discovered the opportunity in mobile home investing early on. After entering full-time real estate investing in 2002, John purchased his first mobile home in a park in Florida. He quickly saw the potential investing in mobile homes and after his first year had acquired 14 properties. In a virtually untapped market, John was able to develop an investment strategy exclusively for mobile homes that ensured strong returns. He has since expanded his portfolio to Texas and is actively sourcing deals in other states.

Mobile Home Investment Types
- Private land mobile homes – longer to close, traditional sale of real estate;
- Mobile homes in parks – categorized as personal property in most states, not subject to title issues/other typical
- Mobile Home Parks
Financing
- Little to no conventional lending; mainly cash deals
- Seller financing
- Dodd-Frank regulations do apply to mobile homes w/ financing
  - Mortgage loan originators can assist with compliance
Costs + Fees
- Purchase for >$10k
- Sell for <$25k on payments
- Buyer repays minimum $300/month on property
- Mobile homes in parks, buyer pays lot fees, utilities, possibly insurance
Move-in ready
- Buyers will usually do refurbs/improvements
Marketing
- Mobile homes in parks: Craigslist, driving through parks, talking w/ park managers
- Mobile homes on private land: networking, direct-mailings, bandit signs, seller lists
Hot Florida Markets
- Miami, Jacksonville, Tampa, Gainesville
- Rural areas, small towns
- Panhandle
Investment Tips
- Do multiple deals
- Effective marketing strategies
- At least 60 mile radius for investment market
- Seek knowledgeable investor

Check out John’s website for even more information on successful investment strategies for mobile homes. John has free videos and a podcast where he covers tips for investing in mobile homes. Contact John directly by email at support@mobilehomeinvesting.net

How to Make $100k Investing in Mobile Home Parks

Posted on September 21, 2015 by admin

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Mobile home parks seem to have earned an unjustly bad rap in the investment game. As a primarily affordable income based asset class, mobile home parks have received the reputation of being an investment with low returns and little value to an investor’s portfolio.

Mike Conlon, the “Mainstreet Millionaire” has some pretty convincing arguments that prove otherwise. After cutting his teeth in the Florida multi-family market, Mike bought his first 4-acre, 80 unit mobile home park in the mid-2000s. Now President of Affordable Communities Group (ACG) Mike’s company owns and manages 25 mobile home communities throughout the southeast. With each complex netting over $100k in returns, Mike shows that with due diligence and an emphasis on community, mobile home parks may present a sizable addition to any investors’ portfolio.

Mobile Home Park or Trailer Park?
- Change the paradigm: affordable housing is not sub-standard
Property Class with Room to Grow
- +50k parks in U.S.
- No new developments in past 20 yrs.
Low Turnover on Units, but Stable Revenue Base
- Permanent living situations for majority of residents
- Costly and difficult to tow a mobile home, low incentive to leave
Own the Soil, Not the Unit
- Easier and more cost-effective to lease space to mobile homeowners.
Recession-resistant… With Proper Management
- Property class affected least by economic downturn
- Demand for affordable housing increases during recessions
How to Earn +$100k
- Know the area and the market
- Stay within 30-40 min of metro areas
- Look for high-occupancy complexes or look to improve occupancy
- Build communities and increase resident involvement

You can get Mike’s best-selling book, Unconventional Wealth: The New Main $treet Millionaires on Amazon

Mike attributes his success in real estate to the book Rich Dad, Poor Dad, available on Amazon

Interested in a mentorship under Mike? Want to stay up-to-date with market news and information? Visit Mike’s website www.mainstreetmillionaire.com for these resources and more!

For more information on Mike’s mobile home parks visit acgmhc.com

EP27 – Kevin Bupp: Making Money with Mobile Home Parks

Posted on May 3, 2015 by admin

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Mobile Home Investing

It might not be the first asset class people consider when they start to invest in real estate, but there certainly are opportunities. Warren Buffett doesn’t involve Berkshire Hathaway in to businesses without great potential for return. Over 12 million live in mobile homes and post WWII manufactured housing has been the go-to solution for affordable housing. Potential for higher returns, increased tax incentives through deprecation and limited competition from new mobile home park developments are just some of the reasons this asset class should not be overlooked.

Our guest, Kevin Bupp, like many investors, got his start in single family homes, but soon realized that single family home investing did not offer the economies of scale to allow him to reach his lifestyle and financial goals. He saw an opportunity in mobile home parks, which tend to sell at higher CAP rates than apartments. Here are some highlights of our discussion with Kevin:

• Owning the land and not the trailer is the preferred form of ownership, as there is less management involved with the land.
• Management of a park is not that much different than running an apartment building
• Buyer competition is less intense at the moment than apartments, but the inventory is much lower as well
• City utilities is a big plus, as opposed to the park maintaining its own treatment plant or septic. If buying parks with septic, make sure the size is large enough so that you don’t lose a lot(s) if you have to upgrade the septic or rework it to bring it up to current code.
• Targets a 15% cash on cash return
• While based in Florida, he likes the Carolinas, Georgia, and the Midwest when seeking opportunities

Kevin also has his own podcast, Real Estate Investing for Cash Flow, where he covers many topics in commercial property, mobile home park and multifamily investing.

How to reach Kevin:

http://www.kevinbupp.com/

Real Estate Investing for Cash Flow – Podcast