While there are many questions surrounding investing in mobile homes, real estate educator John Fedro says there are five he gets each week from beginners who are considering whether mobile home investing is the best move for them.
John says as you read each of the questions below, take the time necessary to answer them honestly.
“As you proceed, I ask that you ponder your answers and how they can apply to the various investment opportunities in real estate and that you pinpoint the ideal method-to-make-money for you,” he said.
No. 1: Do I Have Enough Money To Get Started In Mobile Home Investing Fairly-Quickly?
No money down purchase transactions are certainly available for you to find and profit from. Make sure you keep in mind that for every one motivated seller that will accept a no-money-down offer there are a dozen more sellers that will require only a couple hundred dollars or a couple thousand dollars to begin the seller financing of their homes.
The more capital you have, the more cash you can offer to each seller. Having said that, is it always better to offer more money every time? People might say that just because you have the cash, it doesn’t mean you should not try for a seller-financed transaction first and I am definitely someone who is in line with that. For those who want to get started quickly, it’s always safe to figure on investing a minimum of $2,000-$5,000.
No. 2: Do I Have The Time To Get Started In Mobile Home Investing At A Fairly Quick Pace?
Real estate investing requires consistent focus and daily effort on your part. Eventually, you can outsource some or even all of the systems you employ in your investment business, just keep in mind that when you first start out, it’s best to learn everything first so you can be confidently equipped with the knowledge and wisdom needed to properly train those who will one day replace you.
With regards to those who are actively investing in multiple mobile home deals per year, I recommend that they spend a minimum of at least one hour and optimally two or three hours per day that’s dedicated to growing their new real estate cash-flow business so they can reap the rewards of their efforts in a much shorter time span.
No. 3: Am I Confident That There Are A Sufficient Amount Of Mobile Homes In My Area To Support A Thriving Business?
Any one location only contains a finite amount of mobile homes [in parks and on private land] that may be available for sale at any point in time. Before considering your next moves, make sure you perform a basic Google search of “mobile home parks” and “manufactured home communities”, so you can start to identify what’s around you.
Reach out local Realtors and other active investors in order to identify what the mobile home landscape looks like in the areas and zip codes within your county.
No. 4: Do I Have The Discipline That Will Be Necessary For A Successful Mobile Home Investing Business?
This is perhaps the most introspective question you can ask yourself. Are you the type of person who loves to start something new, only to bailout when you get close to exceeding your current comfort level? Are you someone who is willing to look for opportunities that exist beyond your “comfort-zone”?
I was young when I first started investing in mobile homes and because I lacked the experience that naturally comes with age, I found myself facing many challenges that I knew I had to overcome if I ever wanted to know what it’s like to enjoy a thriving business. I had to be tough and hold myself accountable to a higher standard.
As time went on, I could see the fruits of my labor begin to transpire more and more frequently. As I continued to learn to apply what worked and avoid what didn’t, I eventually discovered that I could confidently hold a conversation with prospective buyers and sellers, perform a proper home evaluation, negotiate with contractors, and speak comfortably in a public forum.
However, if I had never really committed myself fully to the process, I would never have experienced the “flip side” and felt the personal triumph of overcoming obstacles that stood in my way.
No. 5: Do I Enjoy People?
There really isn’t a way around this, if you are not a people-person you better start improving your human-relationship skills now. Like the many other approaches to real estate investing, mobile home Investing is very much a People Business. From start to finish the value and income you create is determined by how well you communicate with both sellers and buyers alike.