Sign Hawaii Banking Living Will Mobile

Industry sign banking hawaii living will mobile

i've got jonathan tuttle and he is on the fired up podcast uh with revenue ascend so i don't know about you but if you're ready to be fired up and learn about how you can invest in mobile homes or mobile home parks which right now is a super hot topic given what's happening in our economy are you wanting a kickstart on your business and you want to learn how to be the go-to professional in your industry well guess what i've got a challenge for you it's five days of coaching it's brand new just go to christamayshore.com client conversion that's christamayshore.com clientconversion and you'll get a training with me for five straight days that's gonna help kickstart you as the go-to professional in your industry so sign up and i'll see you there jonathan how are you good good thanks for having me i'm excited to be here great so tell me a little bit about what you do exactly so well i have a couple companies as you alluded to revenue science my digital agency i have another partner in that right it's pretty hands off and then the topic today is obviously mobile home parks i have a uh it's called midwest park capital it's a mobile home park fund we're raising 10 million dollars right now to acquire parks and then i also have for the everyday investor teaches its online course how to flip mobile homes uh make a profit so mobile homes so you were saying that based on what's happening in the economy right now at the downturn that mobile home parks you know are they fill up they're much busier because more people can afford it for them and the average price of america is kind of priced out of the market so therefore mobile home park mobile homes are you know an affordable option so talk to us a little bit about that sure yeah so if you look at a lot of the data mobile home parks it really fills the void because uh if you look at since the last recession fifty percent of all new jobs been created been ten dollars or less and so if you make ten dollars less and that's your full-time income the only place you can really live is a mobile home park uh the average mobile home lot rent is about a third of the house same price of a house in the same town or half the same equivalent class c apartment so if the class c the average apartment across america is about 1300 1250 a month the average mobile home lot rent besides obviously like california which is another world california equation uh most it's about 400 350 400 so you could really you know what the government usually wants is a one-third of your income goes to housing and the only way to get you know to accomplish that and fill that void is the mobile home parks yeah that makes sense so so talk to us a little bit how do you how so how would you first of all flip a mobile home before that how can people invest in talk to me about your your investment that you have to invest in the mobile home parks sure so we're working on two things because it to make it easy for people uh the mobile home parks it's uh it's called if everyone's if your audience is feeling like grant cardone it's a very similar thing it's called a private placement memorandum basically what it is if you're a credit investor if you make 200 000 plus a year or have a million dollars liquid you could invest in funds and the fund basically does is basically allows you to be passive get quarterly updates all trans uh transparent you can see what's going on but we do all the work we do all the management we find the deal source of deals uh make sure it's a good investment and you just collect checks quarterly and you also get the benefit of the taxation uh just fun fact with mobile home parks traditional commercial real estate is uh land appreciate or the uh the depreciation of commerciality is 39 years apartments like you know grant cardone's type stuff is 27.5 and then for the land improvements most mobile home parks like it does the concrete and cement that's on you can write that off at 15 years so you've probably heard with the whole not get political but with what happened with trump's tax return they saw these different tax benefits these are all written the laws but commercial real estate's the one that get takes advantage of the most and the one that takes advantage of the most of all commercial real estate is mobile home parks so you can get off about 65 to 75 percent initial when you acquire a park so you get the tax benefits you get the stability uh and then you get the equity multiple which means you're leveraging a bank or financing and then over the course of you know eight ten years you wanna get two and a half three x multiple besides the cash flow so you get all these like advantages of owning something that's passive we do the work and then they just collect the track and then they also help affordable housing people have affordable housing because if it gets torn down they have no place to go so you're saying that it's a two and a half to three times x investment yeah over the course ten years yeah in ten years so somebody puts in a million dollars in ten years they're getting back 10 million so two and a half to three i wish it was ten minutes oh i'm sorry sorry i'm sorry yeah i mean that would be oh that's so great we did i mean i'd be in ten years they're gonna get two point five to three minutes that's really good yeah that's usually yeah and uh the beauty about two is the taxation like i said so you have the 15 years serious your k-1 just basically when you get your taxes every year the k-1s will be lower so you tax the lower amount and then also you get the quarterly payouts and it's just a really stable investment uh warehouses and mobile home parks the only two investments have gone up in value this year and you could google like any articles and it's literally everything from forbes wall street journal this real estate this uni class real even realtor.com for it said wall street journal just mentioned this has been the hottest performing real estate for a decade straight and actually been 50 years straight but it comes down to supply and demand more you know people are making less and less money because of inflation jobs are getting outsourced we've seen it right now every time there's a downturn you can't even go to work well if you only have a little bit of savings or if you only get a small check where you're going to live so and that's mobile home parks yeah so talk to you a little bit about how it works so they just invest and then i mean what percentage so they're making um what's their average percentage that they make on on a quarterly basis it's called a by 80 a preferred rate of return so they get paid adverse investors get the paid first it's uh our split if you look at our private placement it's 70 30 so the investors get a bulk of it we're all aligned with their goals first but we do always do all the habit lifting we have to source the deals the biggest thing with our niche it's very hard to find deals right now because everyone's trying to get into it just give you a little example wall street has been huge in our niche last few years uh all the big players have been buying billions and billions of dollars or trying to buy billions of dollars of parks because they know uh overlook you know over the last 10 years and last recession and they already know they see the numbers they see the trends that we're we fill that void so like all the big private equity are really buying billions of dollars in our niche so we're competing against them but we don't go after those type of assets they usually go for for example there was a park that just recently sold about a year ago in uh right outside silicon valley for 238 million dollars one park so it's kind of crazy there's different levels of parks and there's also the park in malibu paradise cove and matthew mcconaughey used to live in uh pamela anderson a lot of the hollywood you know because they have mobile homes they're like two three four five million dollars but you know across the street they're 50 million dollar you know oceanfront villas you know in malibu but they're only paying 39 recreational vehicle tax the neighbors get you know pissed because sorry to say the word but they're paying three hundred thousand dollars in real estate taxes next door so yeah that advantages it does definitely has advantages and there's different they have two or three million dollar mobile homes you can buy yeah oh yeah california is another world like i said wow it must be a pretty nice mobile home oh yeah you wouldn't be able to tell if you went to they have a trade show every year it's got cancelled obviously coming in january there's one in louisville but the homes are actually like you know i'm in chicago but if you go to like river north and they're like the luxury that's our our miami that's our new york you know manhattan like luxury apartments or three four five thousand a month you know for one bedroom and the same interior if you went to like a new mobile home like an eight thousand hundred thousand mobile home it's the same interior like it's you couldn't really tell the difference and it's funny because i have friends go to the trade show and they're like this is crazy this is like a luxury apartment you know fourth is it like a mo is it really considered a modular home or your the title is kind of it originally came out because it's people to kind of clarify it there's also the rv component they both kind of they've actually kind of started the same way um there's actually a mobile home in rv hall of fame in indiana they do like uh you know hall of fame apparently but the history started like in late 40s and actually the first really big uh was j paul getty if you guys remember that movie a couple years ago i think matt damon was in it he was america's first billionaire he was a big oil type tycoon but he was also built to sparta mobile homes like those airline streamers they're all silver anyway he was the one if anybody remember the big thing hbo did a special on him he was the one where his grandson got kidnapped and he wouldn't pay the millions of dollars they made like tv show and a movie on it oh my god but he was also the one the first big manufacturer of mobile homes small little story but it's kind of weird however wow yeah yeah so okay so i didn't i didn't realize that and then with the taxes so basically you're only paying taxes based upon the cost of the mobile home correct yeah yeah and that's the beauty of it too so if you're a resident and you're you know if you're making 10 15 an hour the beauty about it is that for example in illinois if if you lived across street i'm always notorious for having really high real estate taxes like that one highest in the country percentage-wise and you have get the same school same fire same police all the same benefits of paying taxes but across the street you're you're 150 000 house you're paying three four five thousand dollars a year in taxes mo home you're paying 10 bucks a month you're paying you know crazy low 120 bucks a year 150 bucks a year so you're saving that's kind of like your equity compared to like a regular person buying a house where you know they pay over the course of time but you're getting that instant money back because you're not paying all that taxes and that's why cities don't want new parks because of the taxation because they make they lose money and that's the whole big thing about it so it's difficult to get a mobile home park accepted yeah it's almost impossible there's been the number of data's it's not clear exactly the exact amount but most are saying about 10 in the last 20 years have been developed and usually there's a couple others that are using rv conversions or some kind of conversion where in a soft storage or something that was kind of similar but a full just to get develop a new part from scratch is almost impossible and the cost of doing it you're really you're just basically developing a subdivision because new mobile homes are 80 thousand hundred thousand at least fifty thousand brand new and then you have to bet you know fifty thousand times a hundred units times building the infrastructure the roads you know all the everything you need you know all that and how big can these be like take it take a 2500 square foot you know mobile home what's the cost typically ish that'd be a big one that'd be i think like a triple white at that point okay uh that would probably be like 120 if it was brand new like uh warren buffett everyone knows he is 120 000 for that's it huh for doing it yeah it's complete for what are you getting yeah exactly uh warren buffett but it goes outside of affordable housing so the original premise actually mobile homes they first came out a little side story uh was actually like the most it was like in the 50s uh was like the luxury it was like you know like you have your second home kind of like rv is now rv is perceived to be like you you know you have your second home you travel and it's your second home is the rv and that's how mobile homes were back in the day like all this had him get his own little in graceland he had his own little rv park with like eight or ten homes for his friends his little memphis mafia crew whatever they call them uh so it was like kind of like a big hollywood thing back in the 50s 60s 4 30 you know past four 30 forty years it kind of you think of eight mile uh eminem's movie and the stigma that comes with it but there's also like i said there's a you know wide range from like really nice to affordable housing and so the older parks are usually developed and by the original owners they've had it for the families for 30 40 50 years uh and so that's that's the beauty about it with the affordable component but then there's also like the you know 250 million parks which is like luxury uber luxury retirement resorts for senior citizens it's very very top of the line so but going back to your thing 130 000 will get you a really nice mobile home really now isn't it isn't it difficult to so i guess i'm thinking of modular so modular and mobile are different yeah there's that and there's also which is a new thing i'm not too versed on it but it's called the auds i think they're in california where they in california are allowing it like even if you have a big backyard you could bring in these little five or six hundred square foot homes called the auds auxiliary something i forgot the name i've never seen one in person but that's like a big thing coming out now too in california it's called they're like called tiny homes right basically the exact same premise of a tiny one but they're made for like in the backyard exactly yep and how many can you have do you know i'm not too versed on it because like it's not in my nature yeah it's a really new thing laws are changing with it and the titan home movements actually bring a lot of recognition to them alone park face because that's basically what the smaller ones are in they're actually new subdivisions like in austin and uh oregon somebody's like in portland some of these trendy or cities they're bringing these tiny homes they see on like hdtv and it's not becoming trendier for the millennials generation yeah before going back to like the roots of mobile homes they can actually afford it yes it's it's a trip okay wow so talk about your course first of all people can flip i mean i've i've been selling real estate it's always been difficult to sell mobile homes like it's first of all you can't get a loan on them in most cases they need to be cash but it's difficult to uh they've never been where i'm at it's never been easy to sell a mobile home yeah where are you at by the country you're just curious i'm in california i'm in northern california i'm an hour from san francisco yeah yeah so yes you're right by the park then yeah um and it was actually chicago group that sold it uh to private equity but um yeah there's so warren buffet like i was alluded to before he's got uh he does sent uh it's called century 21st financing and he has a program for use mo like for mobile homes and then it if you have a park you could bring in like the qualifications are i think 10 you have to have at least 100 new homes and they'll actually they'll actually do the financing for the park for your ten nts and i think they actually have a program for used homes in the 80s i'm just finding out about this now so if you have like an 80s like 80s homes on about anything from 1976 to newer is pre after hud which is you know the global standard but uh they will finance certain homes like and also like local credit unions credit unions if you're you know your area if they have a lot of those but those are usually do that and then facebook marketplace is actually one of the best places and the biggest thing you have to worry about is how you can't disguise it as a mortgage like it can't be like because i know some courses out there tom people you could you know do like four years but you got to do it like you basically finance it for four years and charge a little bit more you're kind of becoming you have to you can't disguise it as a mortgage because after the last housing crash they had like this rules and regulations um you know dot frank you can't disguise lending as a uh mobile homes is like you're a bank basically so but the best way to market on mobile home is facebook craigslist facebook marketplace works incredibly well i've had even though you can't really hyper target like because of the you know all the laws now yeah but it works really really well uh that also really doing don't use you know realtors don't put in the mls because it's hard to you're basically it's like arbitrage it's like if you had a drop ship store and you have the same price you have the same product drop shipped from china you just have to market it better and the way you market better is finding the audience like facebook and so really knowing what the prices is and then like we always tell people to uh get a feel of what the market is do a test ad first and then before you buy it and then see if there's demand because if you have like 20 30 people message you which a good listing will get two or three of those will be able to close on it gotcha okay okay so a little testing so talk to us about flipping mobile homes yeah so one of the easiest way it's just like if you're a realtor it's the same thing as like a fsbo when you drive around you see those little signs in the window you probably have like you know a baby boomer that just wants to get rid of it just ask them what they want a lot of times they don't want to deal with realtors they don't want to like have people doing a bunch of showings and say okay you could do like a contract like you just i'll market it for you just you have to use your real estate license or if you know it's a really good deal sometimes you can get these like they just want to move because they remember that remember going back to the fact that they didn't pay all the uh they got all that money back from not paying the real estate taxes or i mean comparatively you know they pay what 10 20 30 bucks a month instead of 300 a month they're not looking to maximize the sale of it so a lot of time to say you gotta try a low ball because like what do you want you'll get a lot of time just go up to them and you're friendly with them you'll get a house for five ten thousand below what they should be selling for it's a really it's it's basically like arbitrage at that point yeah yeah gotcha wow that's and you have a course right you have a course that teaches people how to do that yeah mobilehomewealthacademy.com mobile home wealth academy it's still over finish up the last touches on it i have two funnels coming out but uh that's just a basic login page but you could you know get email capture there so mobilehomewealthacademy.com okay okay awesome that's that yeah i've learned a lot today i mean i love when i do these things and i'm learning a lot because i've totally just i've learned a ton you know i don't know if you're i'm okay sorry i actually we're thinking about um possibly purchasing a mobile home modular home and putting it on some property do you have any ideas of great good places to buy modulars that are more affordable than others because i mean like one place is like 360 dollars a square foot which i thought was outrageous yeah in california you're in the i mean california is a whole other world for mobile parks like when i talk to people from the trade shows i'm like you guys are getting and you guys have uh with also the rent control laws and it's like a whole whole thing out there um i'm trying to think of like you think you know we can get a mobile home for like 200 grand but that's not the case you know what i mean yeah the best i mean well in california too that's another thing you could like if you find the fsbos and drive around i have a friend has some of these out there and uh he said you'll get them for 150 and then put 50 and then you know flip them for 300. so you could do that like california is like it's just like the same as flipping a regular house the main thing you want to look forward to uh obviously the roofing skirting the interiors you want to make sure there's nothing you're not going to really see this on like a probably expensive home but like if it's like a 70s or 80s or something to know what they're doing you want to make sure the exterior the walls have been haven't been touched because if the outside of the wall doesn't touch it's just like a box basically that's the structural engineer of the outside so you don't want to mess with any like making windows but bigger on the outside or changing the door on the outside because that'll totally mess up the structure of the inside especially on the single wide you know you know 8 10 12 feet you could do move the walls around things of that nature anything from the 80s on the newer they're going to have a better floor plan it's going to be easier to work with uh check you know most of the stuff is cosmetics obviously check the plumbing the flooring the electrical electrical spine a big thing make sure there's not any water damage is one of the worst things for park for mobile homes so make sure there's not you know any water damage but a lot of this is eye check and then it's asking the person then make sure you have the title then all that stuff that could be the biggest they should never buy anything that you don't have you could verify because then each state and every state has different laws it could be a process of like two to six months or it could be a year or two and also making sure those back taxes if there's back taxes if it's a you know midwest one you're looking really cheap in california taxes are a whole nother world too and a 300 000 house compared to a 5 000 mobile home so make sure the back taxes confirm you know that's up to date or very minuscule and if there's a little bit of balance be like he's as part of negotiation power too how did you get involved in this yeah great question so my dad was a developer contractor so when i grew up uh he built about 82 83 custom homes and had three real estate brokerage offices and then he had some commercial real estate properties and then later on right before he retired he got his first mobile home park and then that's when i really saw that he's like this is the best investment this is like 2005 and it wasn't it was kind of like taboo kind of like what is this at that time and then obviously now it's becoming really well especially the last year year and a half it's like now mainstream it's the popular real estate group but being back then it was like i tell my friends are like home parks what are you talking about especially i'm like early 20s at that point they're like okay that's so weird yeah yeah but well good for you so your next investment you're you're doing you're looking for 10 million dollars you said yeah we're doing 10 million credit yep and then we're gonna do about three farms the biggest issue we're gonna run into is running out of enough available products and i have a lot of industry relationships being i was supposed to actually speak on stage with uh uh warner buffett's ceo of clayton homes at the national congress which is like the biggest expo for mobile manufacturers in the industry basically vegas obviously cleveland cancelled that uh that would have been a really good place to like announce it but what if people what if they give you your money you guys can't find a park what happens no we we have parks in the pipeline so we that's a great question we have we have about a five year run before it's going to be really diminished amount of available parks like right now the cap rates are compressed obviously with there's two things that go into that though we have the best financing that's ever been available for mobile home parks and basically in general for all real estate right now basically uh we're seeing high twos low threes and fannie freddie government financing and 10 years ago they didn't even like really lend in their space so if you have a three point spread so if you get your you know three percent rate and ten year non recourse and we buy the property into six cap you're getting cash in cash and teens from day one so that means you're already making a nice return but five years ago if you had to traditional bank financing bank financing on a commercial is well it's come down a little bit but like you're low low fives high fours so if you're in your cap rate to six you're not getting that spread so you're not getting that nice cushion neck and a nice return if you have a nice you know spreads basically you know what percentage from your loan to action with the cap rate you acquire the property at the height you know the bigger spread the more cash and cash you get so and you guys take a 30 fee your fee for running it is 30 you give 70 back correct yes yes got it and then after our fifth and then if we do after we hit 15 uh irr we it's 50 50. so we're encouraged to incentivize to get it in high teams and typically that's what we see but we're also seeing it's the compression and everyone's trying to get into space we're seeing a lot of people from retail property a lot of people from hotels a lot of people from other niches have been really hurt from the downturn this year and they're like you guys are getting right now we're institutional data showing that 94 collection rates nobody's even lost any real estate 94 and we're not like not even like a single family because we have most of our clientele is essential workers you know like 10 an hour you know the mcdonald's type workers and or their retirees and so you know their social security and they have their savings so they're fine so we don't really get affected by and plus we're one-third the price of a local apartment so we're seeing all these new all this new interest trying to get in our space obviously california rents are probably eight hundred thousand twelve hundred but like in midwest you know most markets four five hundred so they're all trying to get a space which means people are starting to over bid the good thing about what we do is that we have been in the space for so long we have a lot of industry relationships a lot of deals are getting off markets you know i know you could you know know like can trust like in business you have to know like and trust somebody so we could access deals that would never hit the public and by the time the ones in public are usually ones have been overlooked or not that great you know if they go online it's like okay 500 people already said no to this basically well and plus they know too that i mean they know that that you guys um know what you're doing and know how to see the deal which is huge especially i'm sure the mobile home park there's got to be a lot of red tape exactly because if a deal doesn't go through that owner gets committed mentally committed just like in any real estate like and then they you don't want somebody to back out like oh i didn't get the financing this is my first perk and then you just run your reputation so exactly 100 right well great okay so jonathan so we're going to wrap up now this is super informative i really enjoyed it absolutely so tell them again any of your course sure it's uh mobile home wealth academy mobilehomewealthacademy.com that's just the that's gonna be the login page i'll make a little fancy on my designer fancy but that's just the login there's a little accent pop-up you could put your uh your email in there and we'll notify you when it first comes out we also have like two funnels com they're done i just have to get the content so i can put that live and then if they're a credit investor and they're looking to see our ppm find a little bit more about the fund it's midwestparkcapital.com midwestparkcapital.com or midwestparkcapitalfun.com we have two sites for that one okay awesome well i appreciate it so i always tell everyone to well if you can give one word of advice to our audience regardless of what it is business or personal what would that be i think just continuously self-educate and continue to find mentors like life is there's always gonna be challenges but always getting people on your you could rely on to give you some good advice when you have tough times and i'll listen to podcasts like this always keep educating because the world's moving so much faster with technology things are popping up like coveted and we never thought would happen but if you have the right knowledge and execute on it you're going to stay ahead of the curve i totally agree i couldn't agree with you more okay jonathan thank you so much for your time that was great i really appreciate it thanks for being here thank you thank you for having me i'm excited i think we're i think i'm going to be on your podcast pretty soon so that'll be pretty cool so um everyone i hope you were just as fired up as i am jonathan was amazing uh go check out his stuff and remember it's great to learn but implementation is key and as always thank you so much for a little bit of your time i really appreciate it and have a super great day bye-bye hey there i have a brand new podcast called fired up with krista mayshore where i bring my high energy right to your ears this podcast is available on all your favorite podcast platforms so do me a favor go subscribe and leave a review all this information is free and i cannot teach you everything i know thanks so much for watching my video you can learn more about how to be a successful real estate professional by watching other videos that i have and be sure to subscribe to my channel and as always make it a great home selling and buying day