How can i industry sign banking indiana form mobile
[Music] [Applause] alright guys welcome back UIL hometown heroes edition Chicago town what's going on now shout to the shot shot to the west side to the south side North Side East Side every side we was that itself right now yeah sure what area we at specifically we in Washington Park Washington Park shout the Washington Park those gonna know y'all know yeah so we got we got a very special edition today but before we start we got some housekeeping items we want to make you guys aware of it's not too late to register for our workshop our first ever workshop on 1017 so as we said before every single month we're gonna be having a workshop in person but also livestream for anybody anywhere in the world and that's gonna be a different UI l guess is gonna speak about the area of expertise so the first one is what our god mg the mortgage guy and it's gonna be about financing your first real estate deal real estate financing for your first deal so you go to our website on your intercom on the events tab and you can register as I said you can do in-person in New York City but you can also live free MIT and you can watch it you don't have to have you watch it while it's going on for the live stream like once you have it you can watch it whenever whenever you so if you have work or whatever so make sure you do that so yes alright so now we have very special episode I'm actually interested in do something that I don't know anything about zero I'm an educator myself on this so Byron and Shanice dynamic dual dynamic couple that also our business partners as well so congratulations first and foremost yeah so so you guys alright you're in a mobile home industry right so for anybody that's not familiar with that that is home on wheels pretty much right interesting cuz um I met you at the event our networking event was amazing by the way and I'm gonna come yeah he was telling me about it and you know I was thinking like this is just an interesting thing we talked about real estate a lot but we've never spoken or covered mobile homes and you was actually educating me because a lot of people especially where we're from in the Northeast we have derogatory which I learned what the derogatory we cannot say yeah we used to call the trailer a trailer home or in trailer park but it's not called it shouldn't be called trailer park or eternal home it's a mobile home in a mobile part what long story short you can actually invest in these properties and you it's just like real estate you can make money you can wholesale you can flip you can fix up and it's really interesting it's a lot less as far as how much money you have to put into it a lot of it's a lot kind of easier finance and all that kind of stuff so all right before we even get into the details can you tell your story of how you got into the industry oh yeah sure okay so man so basically I've been trying to do real estate for men four or five years right and when I tell you like capital credit I was having a lot of issues with that and so man March 3rd of 2017 I was the day I was fired from work it's a great day job jobs yeah so I was in the transportation industry I was a driver manager okay and so man for that time I'm like man how am I still get in real estate so when I was actually and I was in a life coaching program at that time to come a life coach so I will say that helped me up for it to be where I'm at now and that somehow hustle hustle doc I'm just trying to get into it out at the time man I was driving live to pay the bills I was always listen to podcast and this particular day I happen to find a podcast was on mobile homes but my ru I'm driving at people like man turn that off man I ain't trying to take a listen to this man I think it's gonna be special send it to her and there yeah so he sent me their podcast and fiks is on mobile homes and I always tell buying the biggest thing that I learned that podcast so happens to be on mobile home investing like he said and the biggest thing that I learned from that podcast was you can literally get started with very minimum capital credit does not have to be good and those are the two things that I feel like at the time because me and Byron were new investors those were the things that were kind of holding us back so once I heard that I was like okay we need to get into this niche of mobile homes so I came home I told Byron like look we bout to get into these mobile homes like I know we trying to get these three flats right now here in Chicago we were trying to get buildings at the time but like I said I capital our credit was not so good so I was like look let's try something different let's go outside the box and let's conquer this and then it's been history ever since oh that's that's amazing I mean especially as a couple doing it we are supporting each other which we don't see it like this is the first couple that we've seen on our podcast what did it take to have a belief in each other did you I'll always trust each other like how did that develop man no question so the biggest thing for myself going through that journey I learned a lot I took a lot of ales went broke crap messed up my credit car repo'd all the worse right and so she had my back she was the one person that I got everything from family friends that had my back so it was like yo what this knowledge like I got I have nothing but trust and I'm having so much patience in this and she trusted me and I was just see her growth and she just dug and became a student literally with no entrepreneur experience at all and I'm just looking like yo she a rock star so all right so--okay so you um you listen to the podcast uh what made you say okay this is something that we put that you both I lost your jobs right yeah so what made you say okay this is something that we're gonna do full-time and what was your first deal like what was the first thing that got you into like buying your first mobile home man so honestly I had none else to lose like I had took so many arrows I'm like yo dis got to work one of these don't work dama Dean so you know we got the scavenging man I leave took out a higher interest loan for 10k all right I mean and listen the interest rate on that was 24% Wow credit card no Lending Club okay and so we got that and then we just dove in we start hitting a row we had their little education we didn't know like we literally learned from the school of hard knocks so we hit the road we went all the way down to Cincinnati looking for homes we didn't know we were trying to see we're gonna move homes and made our first deal she actually found this guy and up in is called Loves Park yeah so I ended up being prospecting via Facebook I found this guy he was a park manager he had a lot of older homes and he was like look we got some homes under 5,000 you should come out and take a look that was definitely our budget because starting out we was like we only want to stay under 5,000 so when out there we looked at a few homes we end up getting to one home we paid 3,700 it was move-in-ready so we'd have to do anything to it no rehab it was beautiful and the second home we purchased for 500 put a little bit of rehab into it about $3,200 we ended up flipping those first because of course we wanted to go ahead and make some profit so we can continue to invest so you know flipping those we made 19,500 in less than 30 days and you said this is the saying like that was already happy tell you right yes so at the time at that time prior to me getting fired I worked at the gas company here in Chicago and my salary gross I was making about like 39 so you thinking about I made about close to 20 thousand in less than 30 days I was like that was eye-opening for me that's powerful because a lot of times people are afraid to leave their job I pulled something other day like don't let well a fear of losing 50 thousand a year could stop me from making fifty thousand a month and you could break that down to anything but like your situation is like let's you you actually was blessed to get fired or lose your job have you lost it because it was like let's say that you might have stayed in that job making thirty thirty nine thousand and it's like a lot of time people were like scared to leave and you would have never even knew that you could possibly make twenty thousand a month yeah and then five years from now you'd be making a hundred thousand a month like you know me so it's crazy but um I like that you guys supported each other and took the leap of faith because that's extremely important especially in a relationship it's like you know you could you tell your partner you lost your job and it's like you better get another one yeah so like what made you have faith in him and even like okay like I'm gonna support you on being an entrepreneur you guys are entrepreneurs I'm gonna support you on being an entrepreneur like with no business backgrounds like you guys were entrepreneurs before that like what made you have faith because you he said you were the only person I really like really had faith so what made you have that faith yeah but sure so I mean prior to you know Byron's entrepreneurial journey like you know we were already I guess put on quote talking and dating before we got serious and at that time like you say he had a good job you know I'm saying so once we got back linked up at that point he was going through his hardships or whatever but by that time we had already built our friendship we was already best friends so it's like as a best friend why would I turn my back on him you know I'm saying like I was I was there for him through all the hard situations that he went through in his life and then I feel like he was also there for me because at the time I had just lost my job I was very stressed out he was there picking me off the floor telling me everyday like char come on like we bout to do this together like I'm thinking about us now our legacy generational wealth like he was feeding that into me every single day it's like I had no choice but to rock with it like you don't get that every day especially from a partner from a relationship like that's powerful good man it's like it's like a lifetime not as beautiful I mean obviously I know I'm a married man so like yeah I can relate to everything that you're saying like having somebody that knows that whatever whatever I do is for us right so like we all want so like the decisions that I make of she makes it's for the betterment of us and our family right that makes you so that's powerful she'll do black love black so all right so I don't think people fully understand like I said especially like we come from New York and but you actually told me that there's a lot of mobile homes in New York but like the New York City area metropolitan area and you know a lot of listeners that may be from like cities they don't fully understand how big of an industry mobile home parks home homes are so I did some research how its 22 million Americans live in mobile homes and so like how lucrative is it like on the ROI standpoint how lucrative is the mobile home industry man listen it's my highest cash-on-cash return of any real estate investing like I didn't believe it at first until I'm an example our average returns are 250 percent ROI on per deal that we do how long does it see our normal turnaround is 60 days we know wow it to the point if we flip a house we flip in less than 15 days okay so all right so since you said that you can't kick you out can you can you break down a deal and like kind of explain like how does that work it's cool so I'm gonna break down with a deal so we had a deal we purchased a home for $3,000 right in Indiana and the home that it didn't need any work from my older lady know in most of situations right most people don't really know the value of their homes and three grand said cool so what we did was we say you know what we're gonna open up for sell a finance we're gonna help somebody get affordable housing in that area to average rent we normally base it off the average rent it was $800 right so we say okay we're gonna be comparable now in a park if you're doing mobile home investing in a park the park has lot rings just like HOA fees okay so you have to pay monthly those this park was that was at 372 so it by a lot fee what it was all a fee like an HOA fee they're paying for the trash they're paying for the safe to stay on actually so that the park owns the land the land so you own that and if you can't just park your your mobile home anywhere no not to be inside of a license like a park that has a permit and it's more like a okay right and so no one like the ones that you drive like the RVs those are different right you know you can go take drive those and go into a park and pay like a fee but normally the ones that you see are kind of just like on actual like land like those right there mhm yeah you can move those but it's not costly normally about two grand or so to move on depending on how many miles okay but in this case so we so we said hey you know we'll take for 28 monthly okay shows 800 bucks so how I did we put them on a 16 month time because remember it's a mobile home is pretty much a motor vehicle in most states it is not actually real estate is real property unless you put it on on land so this particular deal we're gonna 800 a month we're getting cash flowing for 28 we put them on a 60 month term at the end of that 60 month time that three thousand we turned to 25 thousand 20 was it twenty five thousand six twenty seven hundred percent return on investment we created so you the rent that you guys were collecting was four hundred or more for 2028 and you how much did you buy it for three thousand how how do you buy something for three thousand in a charge how much were they they were paying $800 a month in rent yes how is that possible so with that we we so instead of them I'm renting the apartment right good think what they get if they were in the apartment for $100 they got no equity in it so we're providing this equity in that house right the thing is we buy it for solo right we don't necessarily have to say okay we're gonna only sell it for 5,000 right we still operate because if you think about the the number is still a house it's still a home form so a 20 at the end of the day a 25 thousand dollar house were you still gonna get other move-in ready twenty five thousand dollar house so you know that's crazy but I was just like but if why would somebody not just buy it on their own if they like why would you rent but 800 if it only cost three hundred thousand a bar yeah so the thing is for us being investors it's almost like we back off off market probably right the most people don't really know that hey I can go get there and if they do they definitely take advantage right for example we have a house char Nisha so this week we literally we got the house of for 1500 we sold it to him for six thousand he's gonna move to home right we still doing a favor but then at the same time we offer seller finance which is offer I do anywhere from my $18 I look at $18 to $25 per square foot so you could actually with your finance and you could have no money and get a home yes yeah interesting all right so like I go in I have no money I'm like yo I want to get this home that's what you come in yes yeah and that's what I'm offering to see the thing is most banks don't lend to mobile homes like that like Warren Buffett he has to lending companies cuz he understand that Warren Buffett is in this gang don't Clayton Homes more on Buffett Lynne's Mobile's yes he owns Clayton Homes I was acquisition he bought in 1997 Clayton Homes is the largest like manufactured home company in the country so banks don't give the loans because are they looking at it as a no like an automobile no like how are they looking at it they looking at as a depreciating asset wares for us we look at it as value so it's appreciating asset because it has wills and anything that will appreciate correctly yeah so is that true not as we solve an affordable housing crisis right but that's the biggest thing like cities we know what the cost of living is going to all right wages are still standing saying so people are getting pushed out like we see it every day like we're its justific
tion people can't afford so for us it's like hey listen I get it you been living in this apartment for the last five to six years why don't you get your own asset right because it is you can do the same thing most people that we educate that buy houses we even teach them like hey this is how you sell your home to get your money back or make more so we're these mobile parks located in proximity to major cities right so we live in the New York tri-state how many miles typically would on mobile Park be located right a good question so for you guys I know you guys got one in Staten Island we've been in New York our lives like I think I don't they I've ever been Stan oh man we got a few students out in New York and they normally work with parks in Jersey ok so they go over to Jersey yeah and about honestly I would say about 60 miles if you willing to go upstate New York I'm not sure that the exact mileage but I know you guys have a lot central and upstate New York is there like a mandated distance like that the federal government will say like this is the residence you can go before you create a part so here's the thing in modern days so mobile home parks the reason why you don't see a lot of them popping up right now because here's a reality taxes right in America it cost on average is like 12,000 they send a kid to school mm-hmm I'm gonna give you guys a my my to blow you up man real quick our taxes on our mobile homes per year $160 our taxes on our mobile homes in Indiana 37 dollars per day year for a year so you think about if you have a kid living if you got children you got two children and it costs at least 11 $10,000 at senator school that city is not even from that so cities really don't really like mobile home parks because of the taxes wives and most mobile home parks they use in a city water they said they use in a city sewer so and you know in that case is like you know we not eating off that we don't really like this over here that's so much money than that oh all right here's a question you live in a mobile home right well how do you would it plumbing how does that work sound like so everything is above ground everything is above ground so the cool thing is like you know if you need something fixed you they can go under the actual mobile home to repair so but like your actual home like you go to the bathroom it goes underneath the like where did that go is it like a septic tank so normally most parts so here's the thing most parts either have their hooked up to city sewer so it will they'll have the hook up so it can go you know one with the city or they have septic tanks okay okay so like it comes from your truck or your mobile home into like a underground thing yeah so all right so it's so if the taxes is so low right so what's our what's the gate cuz it alright the taxes alone you can buy a home for low you can sell it for high so why a why would anybody what's what's in it for the city or for the town to actually house these places and how come more people aren't doing it the question so I would say per state were the first question I'm gonna answer you said like like why don't why do cities the most mobile home parks our grandfather had a lot of them really popped up in the forties 50 60 70 s became because after the war the government invested in two mobile homes right after they were using actually old warplanes and using the tin that's what most mobile homes are kind of like that that aluminum they end up they had a surplus of aluminum so they like you know how can we use it when we build a house so that's our mobile homes actually really start going so in the 70s one likes a wants hug got involved in the 70s that kind of depreciated write the value of mobile homes didn't want to point mobile homes were the place to be you told me that well it's like look it needs to be luxury yeah and it was kind of like suburbia most mobile homes aren't rules like suburbia right you got a lot of mobile home parks they look like little I guess you can say suburban neighborhood and once when hood got involved unfortunately think about the next generation and people start moving back to the city it they just kind of took the value down so it wasn't it was a need for affordable housing but with cities these places were definitely grandfathered in it's a lot of cities that for example sa our owner actually sells a mobile home park sometimes I'd like yo that's inhabitable like they don't because they don't really want because they don't really benefit from the mobile home park so when did when did mobile homes get the bad name of like trailer parks and chillin like when did that shift because you said at first it was luxury and then it obviously it kind of got tarnished and people have bad ideas when they think about that so like at what point did that even like you to like trailer park trash stuff like that like how did that happen so to my knowledge it was an article I'm not sure the exact year but I think it and I know it was like in the late 60s and somebody had wrote a newspaper article about trailer trash and that just kind of stuck the name just kind of stuck and then of course movies play I think my home movies right aim I'll tell you we offset mobile homes working out those Ozarks and so the ones they show on television or did you pick I look at honestly it's almost like in the hood right they made the pic like you know what they for example Chicago they're going to pick on certain shows that is just the gutter you know the main but at the same time it's very nice mobile home it's a luxury people don't know it in San Francisco they have a mobile home park that literally million dollar mobile homes the same double-wide that I can go purchase for fifteen thousand is going for a million dollars in an area in San Francisco I saw well smooth ahead I'm over home it was close like two million it was like a two-story mobile home travels like to movie sets women okay yeah as dope alright so now we got the back stories in around the second thing we're gonna go into some details and go over terms in key definitions alright so I'm now gonna go with some key terms definitions things I need sure but before I start we talked about pricing but on average since we're in Illinois how much gain does a mobile home cost on average so the average price Illinois I use mobile home is right at 7500 so if you're looking for something new like if you're getting a brand new home they can start it right at about like thirty five forty thousand and what I wanted isn't the negative connotations that go with mobile homes is that they're not safe so what other questions I was like how safe are mobile homes man I love that question so so mobile homes are actually since they built in factories their wind tested they're built to last out Stan tornadoes and earthquakes and things like that right the thing is I'm forcing it you've seen maybe seeing in and so they may show and they may show a mobile home park for like three three tops you know saying going but it's not like you know back I think what's the movie and I think whatever it is but anyway what it houses flying all the way around and things like that no it's not like that they actually feel safe so what's the lifespan right so sometimes like you know a traditional brownstone might be built in 1909 what's the lifespan of a mobile good question so the older ones anything that's built after 1990 up to 30 years the new ones are built to last within 45 to 55 years okay okay so as far as you explaining that um title right and it's a it's different from like when you buy a home like a regular home you have a deed so can you explain that that process is like the title is like it's easy to do it right yeah yeah so as far as a mobile home like the mobile home is considered a motor vehicle so it's kind of like a car so when you are selling the asset you're just going down to the DMV or whatever your motor vehicle department is in your state and you're just transferring that title that's it yeah how long does it take about two weeks to come back so the closing was a typical closing from buying a home and having it up and running like yeah so my honestly it was like a day I mean he said you buying a home you of course we're dealing with the park so we're gonna deal with the park manager our buyer has to sign some paperwork with the park that's about 30 minutes to an hour that's signing the lease for that lot rent that we talked about earlier after that we normally take our buyers we go to the DMV together we do that paperwork transfer the title that's about again a 15-minute process and then they'll send the title back in the mail that normally takes about two weeks and then the new buyer will get the title their own asset now and then we move on to the next deal that was good so one of the things when I was doing some research it was like there's a difference between modular homes and manufactured homes what's the biggest difference so modular homes more times you see concrete base work so they have like they are they are plotted on cement right whereas a manufacturing home is there they're literally sitting on cinder blocks mmm so that's what you see is called skirting so you'll see like all right like some vinyl that it's like right around the bottom of that so that's what covers that up but the house is actually sitting on cinder blocks so all right what about insurance like insurance for a mobile home is it different from insurance to a regular home it's a car insurance this is actually a transportation vehicle like how does that work are we calling Geico we don't yeah you literally can call your are you literally can so when it comes to mobile home insurance is very similar to what you would get for homeowners insurance or renters insurance so you literally can call like Geico stay farm like your normal insurance companies let them know like you would like to get insurance on your mobile home and the typical cost for that is about like fourteen fifteen dollars a month so kind of similar to what you were paid for renters insurance Wow so what's the process because you said like the park owns the land right but you own the actual mobile home what's the actual process to getting your mobile home into a park so so that process you'll be really looking for a mobile home park owner who who's looking for houses and right now it's like a gold rush right like literally now out of the forty four thousand mobile home parts forth sorry a four thousand our institutional I mean it may just corporations that own it but it's really like the Wild West cuz they see the opportunity cap rates are crazy on these things so for them what's happening is you have literally car like like bird dog watches they're going to other people's parks right from another owner so let's say Rashad has this part right now he hires me to come at Roy's part to scout out somewhat Roy's houses to take back to his park what somebody incentives that apart a lot owner would say live in this lot as opposed to live in that lot so the one thing that cool thing in a newer mobile home parks what they're trying to really do is make it a community basically that's one thing about mobile home parks get a bad rap it's a really good community because everybody knows each other right so like for example it may be you know that minute is in a part we got parts they got swimming pools and basketball courts and in the mobile home yeah and so it's really just an amenities like what can this Park provide right like like one park I love it because they give beautification awards for whoever has the best lawn right some parks are pretty much like a concrete jungle our own concrete but a lot of parts are I mean have like huge backyards gated fences and garages and like you'll be surprised at seeing some of the way this stuff is developed so alright so you you have a mobile home you you put it in a lot but not a lot has a backyard and all that so you have to pay for that backyard is that part of just a lot fee like how did that work yeah that's party a lot fee I'm looking I quit late almost like taxes right because I know here in Chicago depending on single-family home you may be paying anywhere from 3 grand and 6 grand on your taxes right I look at it that's the same as taxes if you kind of if you add that number of you paying 375 but you know a month and you look at the yearly it's it's pretty much still in line with taxes and some people pay in their cities so in real estate you know when people have multiple units of multiple assets they have property managers and the mobile home game you have park managers is it similar what's the differences in those two roles so the park managers role is really to oversee the park for example you know make sure they fill in houses you know somebody's not paying their locker and make sure they send them their notices a lot of parts have staff so they have other handy min on the part but the cool thing about it is they're not really most parts don't they do rentals but they're not let's just say like fixing everything in the house should you say that it okay so alright so there's two types of communities right there's age restricted and family community yes can explain that yes so all aged community would be like you know 18 - really all ages the restricted ones is the more they're normally 55 and older so it's more so retirement communities and you normally see those like in South Florida West Coast like Arizona California Las Vegas like you'll see the more restricted communities in those areas okay so how many people like how many homes are in a typical community so it varies it could be anywhere from 30 upwards to 500 just depends on that particular part and you said that they don't the park manager doesn't come around to collect rent right so what's the process when somebody doesn't pay is it the eviction process are the deadlines the same as state regulator was it faster for mobile honestly from what we see parks don't play no games like I'm gonna say this like most parks that we deal with they give you ten days okay do you get a 10 day notice and then after that I mean you can definitely pay but if you're past that 30 days they got paperwork already and they start in that eviction process so all right what's the maintenance on mobile homes is it car maintenance is it house maintenance is the combination of bulb you have to change the oil so I mean like regular house maintenance right the cool thing about a mobile home all the materials are much cheaper than a traditional house right brick-and-mortar because you're dealing with most houses come with you know vinyl floor is it coming with they say wall board instead of drywall so most materials are cheaper so like main is like I tell people if you don't a full rehab and a mobile home I say Oh a full gut 12 grand so speaking of that you say fix fix up so I took some of those vinyls real rock it's a foam installation cinderblock so like all right you're fixing up and you're rebuilding a mobile home right how does that work like you get a contractor to do that and like hey like what's the how do you do that like it's just like a regular home or so you can here's the thing you can get a contractor but there's a lot of people a lot of mobile homes that use special contractors right they just do mobile homes because a lot of that they make well the maintenance a lot of times cheaper and the materials are cheaper if I take somebody who has been doing all single-family houses rehab he comes to my mobile home he's trust me my price gonna be a little bit higher because what he used to write but at the same time we call them handyman we got like a team of literally five guys and when we need a rehab we call them they go ahead and do it and the biggest thing for us I've been shot so my guy packy Hooda stays but just like we keep it clean safe and functional that's how biggest thing and that says we learn actually learn that model from him clean safe for us clean safe and functional and longest that's our biggest thing like we're not coming into trying to do a bogus job because you have people mobile homes don't have inspections really like that mmm you talk you know about that yeah so it's really like again since i
's a motor-vehicle asset it is not as strenuous as a house like you there's no appraisal process exactly exactly and that's why for us is like yo we add in his value because we not gonna let nobody come in and tell us like no way this is only worth 4 grand like no so as far as like getting started right how much money do you need to get started in the mobile home real estate industry I mean really we always tell our students like little to no money it really just depends on your market and really just how you're prospecting um you can literally like for me a buyer we don't really touch anything over 5,000 that's the strategy that we have created and stuck with but even in like the higher markets like we always say like you can wholesale mobile homes like you can still literally go in and still we call it like being that helper in a situation and helping a family to sell their home and then again you're going in with no money down you're just now just marketing the home and then taking a profit on that and then still making sure that they get the amount that they're looking for so so how did the whole selling could I know holster anybody's not familiar whole selling real estate is like you're pretty much like the middleman you never have to own the home but you can make a profit it's like if Troy wants to buy a home and you wanna swim with some home you want to buy a home and then I could come in and be like the middle person and didn't make like 10,000 to 15,000 and I don't like doing work there's no there's no risk it's no money that I put up anything is it the same process for mobile homes yes exact same process you know you can put them on the contract and the reality of it right now in this market this is really no competition that is why I'm like we're in Illinois we only like that we personally we know of 10 other investors but we've only met two and and out of those and the newer ones are our students well so as you as you're talking I'm digging myself right yeah it's cool to get the mobile home right but you said that the person that owns the land is the one who makes the profit how do I go about gifting do I have to buy a lot and then get licensing to have mobile homes on it like what's that process so that's dope so for example let's say we get a lot of people's like yeah I got like 30 acres down Mississippi like I'm home like yes yes you can you know like honestly if it's your land you yeah like I mean the biggest thing is let for example let's say you just got raw land right so yeah now you're gonna have to get septic and you're gonna get the whale system installed on a high end that can run you up to like twenty-two thousand on the low end you get all that install I hope you stay under ten that'd be perfect but let's say twelve five right now moving the house depending on where you're moving it from a lot of a lot of moving companies start off right about that thousand range longus is under a hundred miles depending on what it is let's say on a high end you move this five thousand right you still you look let's say you all in thirty thousand right now you go get a house I'm gonna get a brand new house now you are LAN let's say you got another forty thousand right you're still under $100,000 so you still under a hundred thousand dollars right and think about this now you can become the banker right you can eat at least that land out forever or you can just either package that up and now sell the land in the house okay so for for buying it do you buy it in a LLC or you just buy it like as a regular person like how do you do that so we started with buying in that person but now we purchase all our homes in LLC what why just for protection standpoint yes and then from there we go ahead and roll them in a trust don't why can you talk about that the trust and just really just keeping your name off out we don't want people know how many assets we have and I mean we just learned from a mentor that hey this is just an extra layer of protection for us small businessman you guys I saw your Instagram page you said um one property you can get one property I guess like in the area well somewhere I don't know where in America but you can get one property for forty five thousand dollars and that could generate an income of eight hundred dollars a month let's say well you can get nine mobile homes for forty five thousand and that generates an income of twenty seven hundred dollars a month that's pretty impressive profit margins yeah yeah so I actually made that poll I definitely did that just to kind of show two margins as far as you know when we say like mobile homes is the highest cash-on-cash return on any form of real estate so in that specific example I kind of use the numbers that I got from one of my realtor friends who end up purchasing a property for forty five thousand in that situation she was a landlord they were renting it out for eight thousand so in that case again we always look at long term the 60 month turns because we normally put our tenant buyers on seller financed for 60 months so in that case if she's making in five years she made a little bit over forty five thousand so kind of close to like forty at forty eight thousand mark she made her money back I took that same number and I was like look let me compare that forty five thousand so what you can do in a mobile home game so forty five thousand in a mobile home game again if you're sticking at that five thousand dollar range that myself and Byron stick to then yeah nine houses nine houses for 45,000 right remember we talked a little bit about earlier about that seller finance putting our tenant buyers on payments now if you're putting them on payments for a minimum of three hundred dollars a month mind you we're no landlords in this situation so we have no landlord responsibility we're playing the bank so in that three hundred dollars a month for nine homes you're looking at twenty seven hundred dollars a month again in cash flow so you already tripling your cash flow profit so now let's look at five years how much you looking at making five years over it's like over 160,000 I can't ruin I think it's a hundred sixty two thousand so you've tripled your initial investment investing in mobile home so then it's like when people always ask us like why do y'all stick some mobile homes that's why we talk about education and we're going to go out scaling and a few other things in the last one alright so in the last segment we want to talk about education scaling but before I start I just got a quick question so alright this two different like this different ways like realist vision of real estate value like buy a whole and make money off of cash flow or you can you know flip properties right so I know right now your main focus is flipping but is there is there profit in buying and holding and getting like cash flow from mobile homes as well oh man definitely for example man I got to give a shout outside went our students hero but he's down in Georgia and he purchased a mobile home 1500 put a thousand into it and what he did was he saw opportunity with truckers he'd understand a lot of guys stay extended stays and so he ran out per room five hundred per right thinking about it he got his money back from the length three months now you make an auto profit he just create a thousand dollars cash flow well I'll say this he pay I think his lot runs like 375 right right Internet right right in that range but at the same time he's still bringing in close you know over six hundred bucks a month just cash flow so you get though the lot fee plus the whatever your choice for and that's what gives you the total rent price right okay so which was your vision to scale like what should worship plans on scaling for you know for your personal business brand and so we definitely want mobile home parks so the larger goal with that is to get acquisition well we find somebody has a portfolio 1020 mobile home parks that's looking kind of just to retire right and just pretty much purchased that portfolio and just build from there and really open up the floodgates for more people to invest in mobile home matches is that just something like just being an industry you'll know is there like a database where you can see like these people own this amount of mobile parts alright so we've been doing our homework we got the top 100 companies that that do it literally to be in the top 100 if you own over 15 mobile home parks you run a top 100 of the companies how much does it cost for mobile home park so now the prices went up I was telling an average for 50 pads plus you're looking at about like 1.2 depending on the region 1.2 mil 2 million really depends on the region right I've seen parks before that has a hundred pass that was going for 1.2 mil patterns is the area that's designated for exactly how much revenue can I bring it on the year Wow so man that's a great question so for example um I look at it if you have let's say you have 200 pairs right and then you get anything a beginning a 400 bucks per pad normally most active for Park to be occupy fully occupied you're looking at a good park ninety-five percent right 95 percent of those houses are filled so if you look at your Castle I might pull out the calculator real quick so I heard you dope with numbers man but yeah I mean I'm trying but the cash law I know I had some some parks that pretty much but they like netting per month in the you know in six-figure range and just net after everything so I mean literally a lot of like after yeah you could probably get you million back oh yeah and then a hundred thousand let's stay on the low end a hundred thousand a month you'd be making from that mhm yes it would like maintenance you gotta have like maintenance keeping all that maintenance guys you may if you have a park manager that comes with your cost of course taxes alright but a lot of times if you the thing what I've learned about in the mobile home park if you give your if you give the tenants more responsibility so they're responsible for water they're responsible that's how you cut cost we also let the utilities up to them yes so you guys are teaching people how to get into the industry as well right well how do you how are you doing that I said man we got several products we got a ebook we have a eCourse we do group coaching we do our free live webinar every Wednesday just to kind of get people acclimated because that's the biggest thing like we look at it like we wish some I would have showed us this years ago and then we see the opportunity and it's low competition like literally I don't care if it's ten thousand people that started tomorrow it's not gonna be saturated all right so y'all are selling people the mistakes that y'all me exactly so being that shot in this industry and it was new to y'all what are some of the mistakes that you made during your first year well I would say one mistake we made being new investors we was at a park and the park managers they were actually they had just brought the park as well so it was new for them too and they were showing us a house and you know just talking we actually made them stay well I'm actually wasn't we it was a Byron phooey but no he made the mistake of letting them know how much capital we had right so he ended up telling them like oh yeah we got about ten thousand of course you know they tried to what we say Vanessa he tries to finesse us out of a deal and pretty much was showing us a home that we knew was only worth about maybe a couple of thousand but he was trying to sell it to us for about I think four to five and then saying like we would say had to put another five into it for rehab pretty much taking up all of our capital for our first deal so we quickly learned like yeah you got a hush your mouth when you're going down sir I'm investing you know some other mistakes I know you can bring those time oh man not winterize in the house in the winter like those pipes since they are above ground man that was and it's not bad honestly literally the first time I tried to go a cheap route so I hired a guy he told me he could do it for 250 yeah literally yeah I'm pay for not to pay another five little bit again $750 for plumbing right like when they do that it lack of market retail so that was one of mistakes that a person can make right as far as like not knowing the market no no we get so many diems people that just maybe jump on a webinar or and I get it because it is exciting right but you still it's its terms and and it's just it's not a lot right but if you try to jump in there and not really knowing it can cost you more money because most people here like man have you started with 5,000 and then they'll take that 5,000 and then it says like okay well what about we always tell you to budget for loitering right that's part of your expense if we tell you to go Shay Lara and sometimes park managers you may say hey you know what like let us rehab is we'll give you a month for two free but if you're not you still got to incorporate that into your cost it can take you or not long in six months to sell your house right so you got to just incorporate just the little cost that can add up on the rental side when you're getting people to rent what's the turnover people to turn in six month lease or you said some of the truckers do maybe a monthly is what what's the turnover so um honestly most people we've realized that they will entail willing to stay at five years max in mobile home parks because you I think was just like I look at like this it's just like the hood right in certain parts of the hood that's just a gutter that people know they want to make it out to and any moves to another part of hood that's a little bit better but they still want to move out so it's levels to it right unless you were just in a mobile home park in Miami off the water you probably not you know I mean like you want to stay there for 10 years right but you know so honestly for us we we provide anywhere from 2 upwards to 10 years but normally most of our average is like 3 to 5 years but the turnover we rarely get people that want to leave unless their family like for example we had a family that a couple they were expecting that they're a child so you know they need more space now so in that case but normally they're gonna stay so I saw a page also you said people mistake is buying high and selling low right so all right how do you like how does that happening in a mobile home world yeah so I'm gonna say it is profit is profit okay but we I'm not gonna say we teach you how to be greedy we teach you how to make large returns so yeah for example if I buy a house for ten thousand and what our system which you know you turn around you only make two grand offer you make 12 I'm happy for you that you made money but it's just like you know you left way more money on the table so that's the way we look at especially if you look at a long term right like if when you do sell affiance again if you take a minimum of $300 for 16 months that's 18 grand so what got you into education like what made you want to spread awareness and teach people how to actually do this man be honest for myself like that was already my call and I've been doing lot of mentoring I don't already do a lot of coaching and honestly God's heart I never would have sold myself if God were to show me a picture like yo yeah next year you got to be doing these mobile homes but it's just he had a bigger a bigger picture for us and I mean both of us and man it was just like dope to even see Shanice just like yeah let's go right yeah like I told I'm like once we did our first couple of deals I think we said like right here and I told him like we gotta show this we gotta teach this to our peep because it's so many I know so many other investors who have been trying to wholesale who've been trying to get into traditional real estate but again it's certain factors that have been stopping them like credit capital they can't get started so once I found this I was like come on like this is bigger than us like it's for the people so our dirt I noticed you said you have students so obviously they go through the webinar are you guys coaching them after as well and bringing them to their first
deals yeah so we all say anybody who invest in a program like you family might hit us up like we don't want to we're not that type of like you okay by our program and then go out on your own and do it right if you don't hit us up that's on you you know I mean but we really it's like an open book cuz that's the thing it's just like the more the more sex the more success that they have like that's just I mean that's joy for us but it's just like what we doing is just we hub and create wealth for them that's dope that's dope so alright well thank you we appreciate it education so all right how what's the information for your courses how can people contact you how can they check out all of your programs that you have going yeah so for one man Instagram is really our main page follow us at at in I'm sorry at mobile home elite investors there you can literally click the link in the bio that can get you access to the course we have a private Facebook group ebook you need a payment plan that's what we have private coaching whatever you really need that's what we you know we get our program to help everybody we got something for everybody don't go joy yeah shout to everybody on patreon.com that's all proud too proud to pay program everybody that's been supported on there there's five tiers you can join any chair that you like this bonus footage there's bonus content I just want to give a good shout out quick shout out to our new members Jada and Marquis and Christian and Derek as well they've joined in there some of them are trying to take fives and raw data to anything that you provide is a blessing to us because it allows us to come here come to Chicago go to other cities and highlight some hometown heroes yes this is great and we learned every time that we do an episode we learned something new so thank you to everybody on patreon thank you to everybody on anything komm that's purchased emerged this is the first episode that everybody had the merchant yeah that's been purchasing the merge we got our tour shirts up there as well so feel free to get that yeah man yeah and yeah asses over liabilities that's what we running with so shout to Chicago to good city Chicago's been very hospitable to us and this is actually the first one of our hometown girls we actually gonna be released in another episode with the downing brothers they are Chicago celebrities they got an HD TV show and they they interesting because they're actually firefighters but they're also real estate investors as well and they also television stars as well so they have an intervention story and actually set the merch but don't forget our workshop series as well our workshop is 1017 he's gonna be financing financing for first-time real estate investors how to finance your first real estate deal that's going to be in person in Brooklyn but it's also gonna be livestream for anybody you can go to the events tab on our website on your leisure calm to check that out and also as you guys know I'm a financial advisor so if you want to hit me up for a 30-minute consultation anything from retirement planning estate planning life insurance investing anything like that my calendar is also on Ernie Alicia's calm and as I said that is at 30 it's not to pick my brain please please do not just call me for unrelated random questions I'm being very generous with my time yeah so it's specifically targeted for people that are interested in getting help in those areas but yes that is on Ernie lasercom and the book tip of the week is a step-by-step guide to buy and sell mobile home you know who wrote that book yeah I got I wrote that book exactly his last name is sellers which is actually very intimate very fitting when he told me I'm like is that like a stage name like son at home his last name is sellers so he's got plans so yeah check that it that's the e-book right yes sir yes yes so make sure you check them out this is very very good episode for us and blessings to you you know it's extremely encouraging to see any young entrepreneurs but especially a couple that you know had start it's not always all good times either right like you start you know and it's issue its issues when you first start but to see you guys you know progressing it and I'm interested to see next year five years ten years so I'll be following your journey I'll be rooting for you guys for sure I like the new set oh yeah sure so yes we will see you guys and um peace please [Music] [Applause] [Music] [Applause]
