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Speaker 6: So I don't think people fully understand, like I said,
Speaker 6: especially like we come from New York and but you
Speaker 6: actually told me that there's a lot of mobile homes
Speaker 6: in New York. But like the New York City area
Speaker 6: metropolitan area, and you know a lot of listeners that
Speaker 6: may be from like cities. They don't fully understand how
Speaker 6: big of an industry mobile parks homes are. So I
Speaker 6: did some research. So it's twenty two million Americans live
Speaker 6: in mobile homes, and so like, how lucrative is it?
Speaker 6: Like on the ROI standpoint, how lucrative is the mobile
Speaker 6: home industry?
Speaker 5: Man, Listen, it's the highest cash on cash return of
Speaker 5: any real estate investing. Like I didn't believe it at
Speaker 5: first until I'm gonna give example, our average returns are
Speaker 5: two hundred and fifty ROI on per deal that we do,
Speaker 5: how long does it does our normal turnaround in sixty days.
Speaker 5: Now we're to the point that we flip a house.
Speaker 5: We flip in less than fifteen days.
Speaker 2: Wow.
Speaker 6: Okay, so all right, so since you said that you can,
Speaker 6: you can you break down a deal and like kind
Speaker 6: of explain, like how does that work?
Speaker 5: Cool? So I'm gonna break down with a deal. So
Speaker 5: we had a deal. We purchased a home for three
Speaker 5: thousand dollars right in Indiana, and the home that it
Speaker 5: didn't need any work from an older lady. In most
Speaker 5: of the situations, right, most people don't really know the
Speaker 5: value of their homes. And three grand said cool. So
Speaker 5: what we did was we say, you know what, we're
Speaker 5: going to open up for sellar finance. We're going to
Speaker 5: help somebody get affordable housing in that area. The average rent,
Speaker 5: we normally based it off the average rent it was
Speaker 5: eight hundred dollars, right, So we say, okay, we're going
Speaker 5: to be comparable now in a park. If you're doing
Speaker 5: mobile home investing in a park, the park has lot
Speaker 5: rents just like HOA fees. Okay, so you have to
Speaker 5: pay monthly those This park was it was at three
Speaker 5: seventy two.
Speaker 6: So all right, a lot fee? What's the lot fee?
Speaker 5: So it's like an hoa fees they're paying for the trash.
Speaker 5: They're paying for.
Speaker 6: Just to stay on the actual so that the park
Speaker 6: owns the land. Tell you own that. If you can't
Speaker 6: just park your mobile home anywhere, no, now have to
Speaker 6: be inside of a license, like a park that has
Speaker 6: a permit. And it's it's like a okay.
Speaker 5: Right, And so normally the ones that you drive, like
Speaker 5: the RVs, those are different, right, you go, you can
Speaker 5: go take drive those and go into a park and
Speaker 5: pay like a fee. But normally the ones that you
Speaker 5: see are kind of just like on actual like land,
Speaker 5: like those right there. Yeah, you can move those, but
Speaker 5: it's not costly normally about two grand or so to
Speaker 5: move them, depending on how many miles. But in this case,
Speaker 5: so we so we say, hey, you know, we'll take
Speaker 5: four twenty eight monthly. Okay, so it was eight hundred bucks.
Speaker 5: So how it did we put them on a sixty
Speaker 5: month term because remember it's a mobile home is pretty
Speaker 5: much a motor vehicle on most states. It is not
Speaker 5: actually real estate. It's real property unless you put in
Speaker 5: on on land. So this particular deal, we're getting eight
Speaker 5: hundred a month, we're getting cash flowing four to twenty eight.
Speaker 5: We put them on a sixty month term. At the
Speaker 5: end of that sixty month term, that three thousand we
Speaker 5: turned to twenty five thousand. Was it twenty five six twenty?
Speaker 5: That's seven hundred percent return on investment we created.
Speaker 6: So the rent that you were guys were collecting was
Speaker 6: four hundred a month for twenty twenty eight. Yeah, and
Speaker 6: how much did you buy it for three thousand? How
Speaker 6: how do you buy something for three thousand in the charge?
Speaker 6: How much were they they were paying eight hundred dollars
Speaker 6: a month in rent? Yes? Because how is that? How
Speaker 6: is that possible?
Speaker 5: So with that, so instead of them renting an apartment,
Speaker 5: right because they get it. If they rent apartment for
Speaker 5: eight hundred dollars, they got no equity in it. So
Speaker 5: we're providing it's just equity in that house.
Speaker 6: Right.
Speaker 5: The thing is, we buy it for so low, Right,
Speaker 5: we don't necessarily have to say, Okay, we're gonna only
Speaker 5: sell it for five thousand. Right, we still operate because
Speaker 5: if you think about the number, is still a house,
Speaker 5: it's still a home for them. So a twenty at
Speaker 5: the end of the day, a twenty five thousand dollars
Speaker 5: house where you still gonna get other moving ready, twenty
Speaker 5: five thousand dollars.
Speaker 6: House, So no, that's crazy. But I was just like,
Speaker 6: but if why would somebody not just buy it on
Speaker 6: their own? If they like, why would you rent for
Speaker 6: eight hundred if it only cost three hundred three thousand
Speaker 6: to buy?
Speaker 5: So the thing is for us being investors, it's almost
Speaker 5: like we buying off off market property.
Speaker 2: Right.
Speaker 5: The most people don't really know that, hey, I can
Speaker 5: go get there, and if they do, they definitely take advantage.
Speaker 6: Right.
Speaker 5: For example, we have a house Chinese just sold this week.
Speaker 5: We literally we got the house of four fifteen hundred.
Speaker 5: We sold him him for six thousand. He's going to
Speaker 5: move the home. Right, We're still doing a favor. But
Speaker 5: then at the same time we offer seller finance, we
Speaker 5: is offered I usually I usually do anywhere from like
Speaker 5: eighteen dollars. I look at eighteen dollars to twenty five
Speaker 5: dollars per square foot.
Speaker 3: So you could actually with your finance and you could
Speaker 3: have no money and get a home. Yes, yeah, interesting,
Speaker 3: so I can, right, So like I go in, I
Speaker 3: have no money.
Speaker 2: I'm like, yo, I want to get this home. That's
Speaker 2: where you come in.
Speaker 5: Yeah, yeah, And that's what I'm offering. Because see the
Speaker 5: thing is most banks don't lend to mobile homes. They
Speaker 5: like Warren Buffett, he has two lending companies because you
Speaker 5: understand that Warren Buffet is in this game on Clayton Homes.
Speaker 6: Warren Buffett Lenk's mobile Homes.
Speaker 5: Yeah, yea, he owns Clayton Homes. That was acquisition he
Speaker 5: brought in nineteen ninety seven. Clayton Homes is the largest
Speaker 5: like manufactured home company in the country.
Speaker 3: So banks don't give the loans because are they looking
Speaker 3: at it as like an ornamobile loan?
Speaker 2: Like how are they looking at it?
Speaker 5: They looking at as a depreciating asset. Words for us,
Speaker 5: we look at it as value.
Speaker 6: So it's an appreciating asset because it has wills and
Speaker 6: anything that wills appreciates correct, So is that true?
Speaker 1: Not nine?
Speaker 5: At the end of the day, for us, we look
Speaker 5: at it we solve an affordable housing crisis, right, Like
Speaker 5: that's the biggest thing. Like cities, we know what the
Speaker 5: cost of living is going up, all right, Wages are
Speaker 5: still staying the same so people are getting pushed out
Speaker 5: like we see it every day, like where it's gentrification
Speaker 5: people can't afford. So for us, it's like, hey, listen,
Speaker 5: I get it. You've been living in this apartment for
Speaker 5: the last five to six years. Why don't you get
Speaker 5: your own asset? Right, Because at the end of it
Speaker 5: is you can do the same thing. Most people that
Speaker 5: we educate that buy house rooms, we even teach them like, hey,
Speaker 5: this is how you sell your home to get your
Speaker 5: money back or make more on your home.
Speaker 3: So where these mobile parks located in proximity to major cities?
Speaker 2: Right, So we live in the New York tried state.
Speaker 3: How many miles typically would a mobile park be located?
Speaker 2: Right?
Speaker 5: Good question. So for you guys, I know you guys
Speaker 5: got one in Staten Island.
Speaker 2: I've been.
Speaker 3: We've been in New York our whole lives, Like I think,
Speaker 3: I don't think I've ever been stand now.
Speaker 7: And then we got a few students out in New
Speaker 7: York and they normally work with parks in Jersey, so
Speaker 7: they go over to Jersey.
Speaker 5: Yeah, and about honestly, I will say about sixty miles
Speaker 5: if you're willing to go upstate New York I'm not
Speaker 5: sure that the exact knowledge, but I know you guys
Speaker 5: have a lot central and upstate new Is there like.
Speaker 3: A mandated distance like that the federal government will say
Speaker 3: like this is a further dents you can go before
Speaker 3: you create a park.
Speaker 5: So here's the thing in modern days, So mobile home parks.
Speaker 5: The reason why you don't see a lot of them
Speaker 5: popping up right now because here's the reality. Taxes right
Speaker 5: in America that calls on the average is like twelve thousand.
Speaker 5: It's in a kid to school. I'm gonna give you
Speaker 5: guys exam. I'm aout to blow your mind real quick.
Speaker 5: Our taxes on our mobile homes per year one hundred
Speaker 5: and sixty dollars. Our taxes on our mobile homes in
Speaker 5: Indiana thirty seven dollars for the year. So you got
Speaker 5: to think about it. If you have a kid living, if
Speaker 5: you got children, you got two children, and it costs
Speaker 5: at least eleven ten thousand dollars a cent them to school,
Speaker 5: that city is not eating from that. So cities really
Speaker 5: don't really like mobile home parks because of the taxes. Wise,
Speaker 5: and most mobile home parks they use in the city water,
Speaker 5: they sit, they're using the city sewer. So and you
Speaker 5: know in that case, it's like, yeah, we're not eating
Speaker 5: off that. We don't really like this.
Speaker 6: Over here, Sony more on lunch money than I always.
Speaker 6: All right, here's a question. You live in a mobile home, right,
Speaker 6: how do you what do plumbing? How does that work?
Speaker 2: So?
Speaker 5: I like so everything is above ground. Everything is above ground.
Speaker 5: So the cool thing is like you know, if you
Speaker 5: need something fixed, they can go under the actual mobile
Speaker 5: home to repair.
Speaker 6: So but like your actual like you go in the
Speaker 6: bathroom and goes underneath the like where did that go?
Speaker 2: Is it like a septic tank down there?
Speaker 5: So normally most parts so here's the thing. Most parts
Speaker 5: either have they're hooked up to city sewer, so it
Speaker 5: will they will have the hook up so it can
Speaker 5: go you know, along with the city, or they have
Speaker 5: septic tanks.
Speaker 6: Okay, So like if it comes from your truck, your
Speaker 6: your mobile home into like a underground thing. Yeah, so
Speaker 6: all right, So if the taxes is so low, right,
Speaker 6: so what's the what's the gig? Because it has to right,
Speaker 6: like what's going on? So all right, the taxes a loan,
Speaker 6: you can buy a home for low you can sell
Speaker 6: it for high. So why a why would any why
Speaker 6: why did? What's why? What's in it for the city
Speaker 6: or for the town to actually house these places? And
Speaker 6: how come more people aren't doing it?
Speaker 5: Good question? So I would say, person, well, the first
Speaker 5: question I'm gonna answer. You said, like, like, why why
Speaker 5: do city? So most mobile home parks our grandfather in.
Speaker 5: A lot of them really popped up in the forties, fifties, sixties,
Speaker 5: seventies begin because after the war, the government invested into
Speaker 5: mobile homes. Right after they were using actually old war
Speaker 5: planes and using the ten That's why most mobile homes
Speaker 5: are kind of like that that aluminum they ended up had,
Speaker 5: They had a certain plus of aluminum, so they're like, yo,
Speaker 5: how can we use this boom we build a house.
Speaker 5: So that's why mobile homes actually really start going. So
Speaker 5: in the seventies one, like I said, once hug got
Speaker 5: involved in the seventies, that kind of depreciated, right, the
Speaker 5: value of mobile homes because they want to point mobile
Speaker 5: homes were the place to be, like.
Speaker 6: You told me, Yeah, it's like it used to be luxury.
Speaker 5: Yeah, and it was kind of like suburbia. Most mobile
Speaker 5: homes are in rules like suburbia, right, when you go
Speaker 5: to a lot of mobile home parks, they look like
Speaker 5: little I guess you can say suburban neighborhoods. And once
Speaker 5: when hug got involved, unfortunately I think about the next
Speaker 5: generation and people start moving back to the city, it
Speaker 5: just kind of took the value down. So it was
Speaker 5: it was a need for affordable housing. But with cities,
Speaker 5: these places were definitely grandfathered in. It's a lot of
Speaker 5: cities that for example, let's say an owner actually sells
Speaker 5: a mobile home park, sometimes they're like, yo, that's inhabitable,
Speaker 5: Like they don't because they don't really want because they
Speaker 5: don't really benefit from the mobile home park.
Speaker 6: So when did when did mobile homes get the bad
Speaker 6: name of like trailer parks and trailer home Like when
Speaker 6: did that shift? Because you said that at first it
Speaker 6: was luxury and then it kind of got tarnished and
Speaker 6: people have bad ideas when they think about that. So like,
Speaker 6: at what point did that even like you said, like
Speaker 6: trailer park trash stuff like that, How did that happen?
Speaker 5: So to my knowledge, it was an article. I'm not
Speaker 5: sure the exact year, but I think I know it
Speaker 5: was like in the late sixties and somebody had wrote
Speaker 5: a newspaper article about trailer trash, and that just kind
Speaker 5: of stuck. The name just kind of stuck. And then,
Speaker 5: of course movies play. I think about horror movies, right,
Speaker 5: eight mile right.
Speaker 3: I tell you, when y'all said mobile home, the first
Speaker 3: thing I thought was ozarks Yo.
Speaker 2: Okay, must be similar to that.
Speaker 5: And so the ones they show on television or they depict,
Speaker 5: I look at it. Honestly, it's almost like in the hood, right,
Speaker 5: they depict like you know what they for example, Chicago,
Speaker 5: they're going to depict on certain shows that is just
Speaker 5: the gutter, you know what I mean. But at the
Speaker 5: same time, it's very nice mobile home. It's a luxury
Speaker 5: people don't know. In San Francisco they have a mobile
Speaker 5: home park that literally million dollar mobile homes. The same
Speaker 5: double wide that I can go purchase for fifteen thousand,
Speaker 5: it's going for eight million dollars in the area. In
Speaker 5: San Francisco.
Speaker 3: I saw will Smith that had a mobile home. It
Speaker 3: was cost like two million. It was like a two
Speaker 3: story mobile home. It travels like to movie sets with them.
Speaker 6: Okay, yeah, that's dope, all right, So now we got
Speaker 6: the backstory sitting down the second segment we're going to
Speaker 6: go into some details and go over terms and key definitions.
Speaker 6: All right, So now we're going to go with some
Speaker 6: key terms, definitions, things that nature. But before I start,
Speaker 6: we talked about pricing. But on average, since we're in Illinois,
Speaker 6: how much can does a mobile home cost? On average?
Speaker 5: So the average price in Illinois use mobile homes right
Speaker 5: at seventy five hundred. So if you're looking for something new,
Speaker 5: like if you get in a brand new home, they
Speaker 5: can start it rite about like thirty five forty thousand,
Speaker 5: all right.
Speaker 3: And one of the things in the negative connotations that
Speaker 3: go with mobile homes is that they're not safe. So
Speaker 3: one of the questions I ad was like how safe
Speaker 3: are mobile homes?
Speaker 2: Man?
Speaker 5: I love that question. So so mobile homes are actually
Speaker 5: since they're built in factories, they're wind tested, they're built
Speaker 5: to last outstand tornadoes and earthquakes and things like that.
Speaker 2: Right.
Speaker 5: The thing is unforcing that you've seen maybe seeing in
Speaker 5: or so they may show they may show a mobile
Speaker 5: home park with like three three tops. You know what
Speaker 5: I'm saying, gone, But it's not like you know, back,
Speaker 5: I think, what's the movie and whatever it is? But anyway,
Speaker 5: with the houses flying all the way around and things
Speaker 5: like that. No, it's not like that they actually built safe.
Speaker 2: So what's the lifespan? Right?
Speaker 3: So sometimes, like you know, a tritional brownstone might be
Speaker 3: built in nineteen oh nine.
Speaker 2: What's the lifespan of a mobile home?
Speaker 5: Good question. So the older ones, anything that's built after
Speaker 5: nineteen ninety up to thirty years. The new ones are
Speaker 5: built to last within forty five to fifty five years.
Speaker 6: Okay, okay, So as far as you was explaining that title, right,
Speaker 6: and it's different from like when you buy a home,
Speaker 6: like a regular home and you have a deed, So
Speaker 6: can you explain that the process as far as like
Speaker 6: the title, it's like it's just it's easy to do it, right. Yeah.
Speaker 7: Yeah, So as far as a mobile home, like, the
Speaker 7: mobile home is considered a motor vehicle, so it's kind
Speaker 7: of like a car. So when you are selling the asset,
Speaker 7: you're just going down to the DMV or whatever your
Speaker 7: motor vehicle department is in your state and you're just
Speaker 7: transferring that title.
Speaker 6: That's it.
Speaker 5: Yeah, how long does it take about two weeks to
Speaker 5: come back?
Speaker 6: So the closing, what's the typical closing from buying a
Speaker 6: home and having it up and running late.
Speaker 7: Yeah, so buy Honestly, it's like a day. I mean,
Speaker 7: so you buying a home. You of course we're dealing
Speaker 7: with the park, so we're gonna deal with the park manager.
Speaker 7: Our buyer has to sign some paperwork with the park.
Speaker 7: That's about thirty minutes to an hour. That's signing a
Speaker 7: lease for that lot rent that we talked about earlier.
Speaker 7: After that, we normally take our buyers, we go to
Speaker 7: the DMV together, we do that paperwork, transfer the title
Speaker 7: that's about again a fifteen minute process, and then they'll
Speaker 7: send a title back in the mail. That normally takes
Speaker 7: about two weeks, and then the new buyer will get
Speaker 7: the title, they'll own the asset now, and then we
Speaker 7: move on to the next deal.
Speaker 6: What yah.
Speaker 3: One of the things we were doing some research, it
Speaker 3: was like, there's a difference between modular homes and manufactured homes.
Speaker 2: What's the biggest difference.
Speaker 5: So, modular homes more times you see concrete base where
Speaker 5: so they have like there are they are more applotted
Speaker 5: on cement right, whereas a manufacturing home is they're they're
Speaker 5: literally sitting on cinder blocks. So that's why you see
Speaker 5: it's called skirting. So you'll see like like uh, some
Speaker 5: vinyl that's like right around the bottom of that, So
Speaker 5: that's what covers that. But the house is actually sitting
Speaker 5: on cinder blocks.
Speaker 6: So all right, what about insurance, like insurance for a
Speaker 6: mobile home? Is it different from insurance to a regular home?
Speaker 6: Is it car insurance? Is it's actually transportation vehicle? Like
Speaker 6: how does that work?
Speaker 5: Yeah? You literally can call, you literally can.
Speaker 7: So when it comes to mobile home insurance is very
Speaker 7: similar to what you would get for homeowners insurance or
Speaker 7: renters insurance. So you literally can call like IO Stay
Speaker 7: Farmed like your normal insurance companies, and you let them
Speaker 7: know like you would like to get insurance on your
Speaker 7: mobile home.
Speaker 5: And the typical cost.
Speaker 7: For that is about like fourteen fifteen dollars a month,
Speaker 7: so kind of similar to what you would pay for
Speaker 7: renters insurance.
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Speaker 3: So what's the process, Because you said, like the park
Speaker 3: owns the land, right, but you own the actual mobile home.
Speaker 3: What's the actual process to getting your mobile home into
Speaker 3: a park.
Speaker 5: So that process you'll be really looking for a mobile
Speaker 5: home park owner who's looking for houses, and right now
Speaker 5: it's like a gold rush, right, like literally now, out
Speaker 5: of the forty four thousand mobile home parks, four well sorry,
Speaker 5: four thousand are institutionally owned, meaning like just corporation to
Speaker 5: own it. But it's really like the wild always because
Speaker 5: they see the opportunity. Cap rates are crazy on these things.
Speaker 5: So for them, what's happening is you have literally called
Speaker 5: like like bird dog watches. They're going to other people's
Speaker 5: parks right from another owner. So let's say Rashad has
Speaker 5: this park right now, he hires me to come in
Speaker 5: Troy's park to scout out some Atroy's houses to take
Speaker 5: back to his park.
Speaker 6: Trust me, bro. So like, what's some of the incentives
Speaker 6: that a park a lot owner would say, live in
Speaker 6: this lot as opposed to living that lot.
Speaker 5: So the one thing, the cooler thing in the newer
Speaker 5: mobile home parks, what they're trying to really do is
Speaker 5: make it a community base because that's one thing about
Speaker 5: mobile home parks get a bad rap. It's a really
Speaker 5: good community because everybody knows each other, right, So like
Speaker 5: for example, it may be you know that minitis in
Speaker 5: the park where you got parts. They got swimming pools
Speaker 5: and basketball.
Speaker 6: Courts in the mobile home park, and yeah, yeah.
Speaker 5: It's like a whole exactly exactly, yeah, and so it's
Speaker 5: really just the amenities, like what can this park provide?
Speaker 2: Right?
Speaker 5: Like like one park, I love it because they give
Speaker 5: beautification awards for whoever has the best line.
Speaker 6: Right.
Speaker 5: Some parks are pretty much like a concrete jungle, are
Speaker 5: on concrete. But a lot of parks are I mean,
Speaker 5: have like huge backyards, gated fences and garages and like
Speaker 5: you'll be surprised at seeing some of the way this
Speaker 5: stuff is developed.
Speaker 6: So all right, so you have a mobile home, you
Speaker 6: put it in a lot, but that a lot has
Speaker 6: a backyard and all that, so you have to pay
Speaker 6: for that backyard. Is that part of just the lot fee?
Speaker 6: Like how does that work?
Speaker 5: Yep, that's part of your lot fee. I look I
Speaker 5: equivalent to almost like taxes, right because I know here
Speaker 5: in Chicago, depending on single family home, you may be
Speaker 5: paying anywhere from three grand and six grand on your taxes. Right,
Speaker 5: I look at it, that's the same as taxes if
Speaker 5: you kind of if you add that number, if you're
Speaker 5: paying three seventy five, you know a month, when you
Speaker 5: look at the yearly, it's pretty much still in line
Speaker 5: with taxes. And some people pay in their cities.
Speaker 3: So in real estate, you know, when people have multiple
Speaker 3: and it's multiple assets, they have property managers. In the
Speaker 3: mobile home game, you'll have park managers. Is it similar
Speaker 3: to what's the differences in those two roles?
Speaker 5: So the park manager's role is really to oversee the
Speaker 5: park for example, you know, make sure they's filling houses,
Speaker 5: you know somebody's not paying their lock rent, making sure
Speaker 5: they send them their notices. A lot of parks have staff,
Speaker 5: so they have other handymen on the park. But the
Speaker 5: cool thing about it is they're not really most parks don't.
Speaker 5: They do rentals, but they're not let's just say, like
Speaker 5: fixing everything in the house.
Speaker 2: Should you say that? Okay?
Speaker 6: So all right, So there's two types of communities, right,
Speaker 6: there's age restricted in family communities. Yes, can you explain that?
Speaker 1: Yeah?
Speaker 7: So all age community would be like you know, eighteen
Speaker 7: to really all ages. The restricted ones is the more
Speaker 7: they're normally fifty five and older. So it's more so
Speaker 7: retirement communities. And you normally see those like down south
Speaker 7: Florida West Coast, like Arizona, California, Las Vegas, like you'll
Speaker 7: see the more restricted communities in those areas Okay.
Speaker 6: So how many people, like how many homes are in
Speaker 6: a typical community.
Speaker 5: So it varies. It could be anywhere from thirty upwards
Speaker 5: to five hundred homes. It really just depends on that
Speaker 5: particular part.
Speaker 3: And you said that they don't depart, manager doesn't come
Speaker 3: around to collect rent, right, So what's the process when
Speaker 3: somebody doesn't pay?
Speaker 2: Is it the eviction process?
Speaker 3: Are the deadlines the same as state regulator or is
Speaker 3: it faster for mobile homes?
Speaker 5: Honestly, from what we see, parks don't play no games.
Speaker 5: Like I'm gonna say this, Like most parks that we
Speaker 5: deal with, they give you ten days if you get
Speaker 5: a ten day notice, and then after that, I mean,
Speaker 5: you can definitely pay. But if you're past that thirty days,
Speaker 5: they got paperwork already and they're starting that eviction process.
Speaker 2: Wow.
Speaker 6: So all right, what's the maintenance on mobile homes? Is
Speaker 6: it car maintenance?
Speaker 2: Is it?
Speaker 6: House maintenance? Is the combination of bob? You have to
Speaker 6: change the oil? Like, what's the deal with that?
Speaker 2: My time in bow Bro?
Speaker 5: So, I mean literally like regular house maintenance.
Speaker 6: Right.
Speaker 5: The cool thing about a mobile home all the materials
Speaker 5: are much cheaper than a traditional house, right, breaking mortar
Speaker 5: because you're dealing with most houses come with you know,
Speaker 5: vinyl floors. They're coming with they say wall board instead
Speaker 5: of dry wall. So most of your materials are cheaper.
Speaker 5: So like mainess, like I tell people, if you're doing
Speaker 5: a full rehab and a mobile, let's say a full
Speaker 5: gut twelve grand.
Speaker 6: So speaking of that, so yeah, you said fix fix out,
Speaker 6: So I took some notes. Vinyl, it's real rock, it's
Speaker 6: foam installated cinder block. So like, all right, you're you're
Speaker 6: fixing up and your your rebuilding a mobile home? Right,
Speaker 6: how does that work? Like you get a contractor to
Speaker 6: do that, and like how like what's the how do
Speaker 6: you do that? Like is it just like a regular.
Speaker 5: Home or so you can here's the thing. You can
Speaker 5: get a contractor. But it's a lot of people, a
Speaker 5: lot of mobile homes that use special contractors. Right, they
Speaker 5: just do mobile homes because a lot of the main well,
Speaker 5: the maintenance a lot of times cheaper, and the materials
Speaker 5: are cheaper. If I take somebody who has been doing
Speaker 5: all single family houses rehab, he comes to my mobile home,
Speaker 5: he trust me, my price is gonna be a little
Speaker 5: bit highercause what he used to right. But at the
Speaker 5: same time we call him handyman. We got like a
Speaker 5: team of literally five guys, and when we need a
Speaker 5: rehab we call them. They go ahead and do it
Speaker 5: in the court. And the biggest thing for it's like, man,
Speaker 5: shout out to my guy packet Hood of States. But
Speaker 5: just like we keep it clean, safe and functional. That's
Speaker 5: our biggest thing, and that's his. We actually learned that
Speaker 5: model from him. Clean safe, clean, safe and functional and
Speaker 5: longest that's our biggest thing. Like we're not coming in
Speaker 5: there trying to do a bogus job because you have
Speaker 5: people mobile homes don't have inspections really like that.
Speaker 6: Can you talk about that?
Speaker 5: Yeah, So it's really like again, since it's a it's
Speaker 5: a motor vehicle, asset is not as strenuous as a
Speaker 5: house like appraisal process exactly exactly. And that's why for us,
Speaker 5: it's like, yo, we add in his value because you're
Speaker 5: not gonna let nobody come in and tell us like, nah, wait,
Speaker 5: this is only worth four grant Like no.
Speaker 6: So as far as like getting started, how much money
Speaker 6: do you need to get started in the mobile home
Speaker 6: real estate industry?
Speaker 7: I mean really, we always tell our students like little
Speaker 7: to no money. It really just depends on your market
Speaker 7: and really just how you're prospecting. You can literally like
Speaker 7: for me and Buyron. We don't really touch anything over
Speaker 7: five thousand. That's the strategy that we have created and
Speaker 7: stuck with. But even in like the higher markets, like
Speaker 7: we always say, like you can wholesale mobile homes, like
Speaker 7: you can still literally go in and still we call
Speaker 7: it like being that helper in the situation and helping
Speaker 7: a family to sell their home. And then again you're
Speaker 7: going in with no money down. You're just now just
Speaker 7: marketing the home and then taking the profit off that
Speaker 7: and then still making sure that they get the amount
Speaker 7: that they're looking for.
Speaker 6: So how does the whole sealing Because I know anybody's
Speaker 6: not familiar with whole selling real estate. It's like you're
Speaker 6: pretty much like the middle man. You never actually own
Speaker 6: the home, right, but you can make a profit. It's
Speaker 6: like if Troy wants to buy a home and you
Speaker 6: want to swim aself home, you want to buy a home,
Speaker 6: and then I can come in and be like the
Speaker 6: middle person and then make like ten thousand and fifteen thousand,
Speaker 6: and I don't wait any work there's no risk, it's
Speaker 6: no money that I put up anything. Is it the
Speaker 6: same process for mobile homes?
Speaker 5: Yes, the exact same process. You know, you can put
Speaker 5: them on the contract. And the reality of it right
Speaker 5: now in this market is really no competition that it's wide.
Speaker 5: Like we're in Illinois. We only like that. We personally
Speaker 5: we know of ten other investors, but we've only met
Speaker 5: two and out of those and the newer ones are
Speaker 5: our students.
Speaker 6: Wow.
Speaker 3: So as you're talking, I'm thinking to myself, right, yeah,
Speaker 3: it's cool to get the mobile home, right, but you
Speaker 3: said that the person that owns the land is the
Speaker 3: one who makes the profit. How do I go about
Speaker 3: getting the land? Do I have to buy a lot
Speaker 3: and then get licensed to have mobile homes on it?
Speaker 8: Like?
Speaker 2: What's that process?
Speaker 5: So that's dope. So for example, let's say we get
Speaker 5: a lot of people like Yo, I got like thirty
Speaker 5: acres down in Mississippi, Like, can I put homes on it?
Speaker 5: It's like, yes, yes you can. You know, like honestly,
Speaker 5: if it's your land. Yeah, I mean the biggest thing
Speaker 5: is like, for example, let's say you just got raw land, right,
Speaker 5: so yeah, now you're gonna have to get septic, and
Speaker 5: you're gonna have to get the whale system installed. On
Speaker 5: the high end, that can run you up to like
Speaker 5: twenty two thousand. On the low end, you get all
Speaker 5: that installed. I hope you stay under ten. That'll be perfect.
Speaker 5: But let's say twelve five right now, moving the house.
Speaker 5: Depending on where you're moving it from, a lot of
Speaker 5: moving companies start off right about that thousand range. Longest
Speaker 5: it's under one hundred miles, depending on what it is.
Speaker 5: Let's say on a high end, your move is five thousand. Right,
Speaker 5: you still look, let's say you all in thirty thousand, right,
Speaker 5: Now you go get a house. You wanna get a
Speaker 5: brand new house. Now you all in. Let's say you
Speaker 5: got another forty thousand, right, you're still under one hundred
Speaker 5: thousand dollars. So you still under one hundred thousand dollars, right,
Speaker 5: and think about this. Now you can become the bank.
Speaker 6: Right.
Speaker 5: You can either lease that land out forever or you
Speaker 5: can just either package that up and now sell the
Speaker 5: land in the house.
Speaker 6: Okay, So for by do you buy it in an
Speaker 6: LLC or you just buy it like as a regular person, Like,
Speaker 6: how do you do that?
Speaker 5: So when we started with buying our person. But now
Speaker 5: we purchase all our homes in LLC.
Speaker 6: Well just from protection standpoint.
Speaker 5: Yes, and then from there we go ahead roll them
Speaker 5: in a trusty. Can you talk about that the trust Yeah,
Speaker 5: it's really just keeping your name off. We don't want
Speaker 5: people know how many assets we have. I mean, we
Speaker 5: just learned from a mentor that hey, this is just
Speaker 5: an extra layer of.
Speaker 2: Protection for us small businessman.
Speaker 6: You I saw on your Instagram page you said one proper.
Speaker 6: You can get one proper I guess like in the area,
Speaker 6: well somewhere I don't know where in America, but you
Speaker 6: can get one property for forty five thousand dollars and
Speaker 6: that could generate an income of eight hundred dollars a month.
Speaker 6: Let's say, well, you can get nine mobile homes for
Speaker 6: forty five thousand and that generates an income of twenty
Speaker 6: seven hundred dollars a month. That's pretty impressive. Yeah, profit margins.
Speaker 7: Yeah, yeah, so I actually made that post right first,
Speaker 7: lady at mobile homes, But I definitely did that just
Speaker 7: to kind of show the margins as far as you know.
Speaker 7: When we say like mobile homes is the highest cash
Speaker 7: on cash return on any form of real estate. So
Speaker 7: in that specific example, I kind of used the numbers
Speaker 7: that I got from one of my relative friends who
Speaker 7: end up purchasing a property for forty five thousand. In
Speaker 7: that situation, she was a landlord. They were renting it
Speaker 7: out for eight thousand. So in that case, again we
Speaker 7: always look at long term, the sixty month terms, because
Speaker 7: we normally put our tenant buyers on seller finance for
Speaker 7: sixty months. So in that case, if she's making in
Speaker 7: five years, she made a little bit over forty five thousand,
Speaker 7: so kind of close to like forty forty eight thousand mark,
Speaker 7: So she made her money back. But I took that
Speaker 7: same number and I was like, look, let me compare
Speaker 7: that forty five thousand to what you can do in
Speaker 7: a mobile home game. So with forty five thousand in
Speaker 7: the mobile home game, again, if you're sticking at that
Speaker 7: five thousand dollars range that myself and Byron stick to,
Speaker 7: then yeah, nine houses, nine houses for forty five thousand.
Speaker 2: Right.
Speaker 7: Remember we talked a little bit about earlier about that
Speaker 7: seller finance putting our attendant buyers on payments. Now, if
Speaker 7: you're putting them on payments for a minimum of three
Speaker 7: hundred dollars a month. Mind you, we're no landlords in
Speaker 7: this situation, so we have no landlord responsibility.
Speaker 5: We're playing the bank.
Speaker 7: So in that three hundred dollars a month or nine homes,
Speaker 7: you're looking at twenty seven hundred dollars a month again
Speaker 7: in cash flow, so you already tripling your cash flow profit.
Speaker 7: So now let's look at five years. How much you're
Speaker 7: looking at make in five years over it's like over
Speaker 7: one hundred and sixty thousand.
Speaker 5: I can't remember.
Speaker 7: I think it's one hundred and sixty two thousand. So
Speaker 7: you've tripled your initial investment investing in mobile homes. So
Speaker 7: then it's like when people always ask us, like why
Speaker 7: do y'all stick to mobile homes?
Speaker 5: That's why?
Speaker 2: Right shemer That was impressible.
Speaker 6: Yeah, in the next segment, we're going to talk about education,
Speaker 6: and we're going to talk about scaling and a few
Speaker 6: other things in the last one. All right, So in
Speaker 6: the last segment, we're going to talk about education scaling.
Speaker 6: But before I start, I want I had a quick question.
Speaker 6: So all right, there's three different like there's different ways
Speaker 6: like real suspicional real estate, you like buying whole and
Speaker 6: make money off of cash flow, or you can you know,
Speaker 6: flip properties, right. So I know right now your main
Speaker 6: focus is flipping. But is there is there profit in
Speaker 6: buying and holding and getting like cash flow from mobile
Speaker 6: homes as well? Oh?
Speaker 5: Man, definitely. For example, Man, I got to give a
Speaker 5: shout out to one of our students, Herald, but he's
Speaker 5: down in Georgia and he purchased a mobile home for
Speaker 5: fifteen hundred, put a thousand into it. And what he
Speaker 5: did was he's an opportunity with truckers. He understand a
Speaker 5: lot of guys say extended stays. So he running out
Speaker 5: per room five hundred dollars per room of his mobile home. Right,
Speaker 5: So think about it. He got his money back in
Speaker 5: like three months. Now he's making all profit. He just
Speaker 5: created one thousand dollars cash flow. Well I would say
Speaker 5: this he paid I think his lot runs like three
Speaker 5: seventy five right right in that right around that range.
Speaker 5: But at the same time you still bring it in clo.
Speaker 5: You know, over six hundred bucks a month just cash flow.
Speaker 3: So the lot feed plus whatever your charge for rent,
Speaker 3: that's what gives you the total rent price.
Speaker 6: Right, Okay, So what's your what's what's your vision to scale,
Speaker 6: like what's your what's your plans on scaling for your
Speaker 6: for your personal business brand?
Speaker 5: And so we definitely want mobile home parks. So the
Speaker 5: larger goal with that is to get an acquisition where
Speaker 5: we find somebody who has a portfolio ten twenty mobile
Speaker 5: home parks just looking kind of just to retire, right,
Speaker 5: and just pretty much purchase that portfolio and just build
Speaker 5: from there and really open up the floodgates for more
Speaker 5: people to invest in mobile homes.
Speaker 3: Is that just something like just being in an industry,
Speaker 3: you'll know, is there like a database where you can see,
Speaker 3: like these people own this amount of mobile parks?
Speaker 5: Right, So we've been doing our homework. We got the
Speaker 5: top one hundred companies that do it. Literally to be
Speaker 5: in the top one hundred, if you own over fifteen
Speaker 5: mobile home parks, you are in the top one hundred
Speaker 5: of the companies.
Speaker 6: How much does it cost for mobile home park?
Speaker 5: So now the prices went up. I would say on
Speaker 5: an average for fifty paths plus, you're looking at it
Speaker 5: about like one point two depending on the region, one
Speaker 5: point two mill two million, really depends on the region.
Speaker 8: Right.
Speaker 5: I've seen parks for that has one hundred pass that
Speaker 5: was going for one point two mil.
Speaker 6: The area that's designated for this exactly how much revenue
Speaker 6: can that bring it on a year?
Speaker 2: Wow?
Speaker 5: So man, that's a great question. So for example, I
Speaker 5: look at it. If you have let's say you have
Speaker 5: two hundred pass right, and then you're getting a you're
Speaker 5: getting four hundred bucks per path. Normally most for a
Speaker 5: park to be occupied, fully occupied, you're looking at a
Speaker 5: good park. Ninety five percent, right, ninety five percent of
Speaker 5: those houses are field. So if you look at your castle,
Speaker 5: I might pull out the calculated real quick.
Speaker 6: I heard you do, but.
Speaker 2: I'll run in my head.
Speaker 5: But yeah, I mean I'm trying to think. But the
Speaker 5: cast law.
Speaker 2: I know.
Speaker 5: I had some some parks that pretty much, but they're
Speaker 5: like netting per month in the you know, in six
Speaker 5: figure range and just net after everything.
Speaker 6: So I mean literally a lot of like after a year,
Speaker 6: you can probably get you a million back. Oh yeah,
Speaker 6: and then one hundred thousand and let's say on the
Speaker 6: low end, one hundred thousand a month you'd be making
Speaker 6: from that. Yes, but like maintenance, you gotta have like
Speaker 6: maintenance up keeping all that maintenance.
Speaker 5: Guys, you may if you have a park manager that
Speaker 5: comes with your costs. Of course taxes, right, But a
Speaker 5: lot of times if you the thing what I've learned
Speaker 5: about in the mobile home park, if you give your uh,
Speaker 5: if you give the tenants more responsibility, so they're responsible
Speaker 5: for water, they're responsible, that's how you cut costs.
Speaker 2: Also, like the utilities up to them.
Speaker 5: Yes, right, okay, yes, dope.
Speaker 4: My graduates from my school being forced back drop drop, Mike,
Speaker 4: drop back drop drop.
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