EYL #180 Make a Fortune with Mobile Home Parks

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If I have the title and Sharnie says, hey, I can help you, I'll sell you. I mean I'll buy a home from you, right cool, And she's the highest bidder. Now she can go buy the home. She's a title owner, and she can go to RASHAA like, yo, I'm the title owner. So unless you're gonna give me thirty K for this house, I'm moving in. And Sean can be like, either I will pay you that or no? All right cool. Now she's taking that home Detroit. She own asset.

My graduates from my school being forced.

Bad and drop bag drop Mike, drop back drop drop.

All right, guys, Welcome back, e y L. This is a reunion episode.

Yeah, so.

Sharnese and Byron.

This is an interesting situation because the first episode actually happened like we didn't plan it. So I'll give you the backstory. About two and a half years ago, we did a networking event in Chicago and I think at the Bureau Bar Ye shot shot. So that was our

Should do this.

They're like when you want to do it, like tomorrow, Like all right, well, sure, let's do it.

So I think we spoke after that too. Yeah, they said we're gonna do what, we're gonna do it.

So we actually did it and we didn't have like a studio, so we did it in their home.

Mourn actually actually what we want to do, the Downing brothers, and we saw them like, yo, we we're gonna do this. We're gonna do it here to the house, all right, we don't know what like that.

Yeah, yeah, so we went to the South Side. We got it done, and it actually turned out for a long time, it was the number one episode on YouTube definitely for a while. I'm still in the top ten. So it's one of these episodes that just caught wildfire number forty one for those not it's not playing, stop playing, right So but since then, you know, a lot has changed. So since then they got engaged.

Congratulations on that.

Number one.

They moved on up from the south from the south Side to downtown. There's got a whole vibe downtown, driving range rovers, living, clipping the dream. But what also happened during that period of time, and this is the interesting part.

And so we definitely want mobile home parks. So the larger goal with that is to get an acquisition where we find somebody who has a portfolio ten twenty mobile home parks just looking kind of just to retire, right, and then pretty much purchased that portfolio and just build from there and really open up the floodgates for more people to invest in mobile homes.

And throughout that, you know, they have education, they've been teaching people on social media.

So this is a dope before you go in, right.

I remember like after that episode, yeah, I did like a free webinar and I was like, i'mna sign up for this, and I forgot that day and then I couldn't sign up for a free for the next.

Three months of packed us out.

It was crazy.

Nothing was to say, nothing was to say that's the album.

Nothing was the same.

That was the original fact one. It was damn Alex trapped that a lot of people those two months. So, yes, this episode, I'm looking forward to it because it's the transition and now we're going to have the conversation of Mobile Home Park Invested.

So first and foremost, welcome.

Back, man, Thank you all for having us.

Yeah, I'm like, you know what the bath.

We're in the Mecca right now, see.

Each other so many times.

Yeah, yeah, this this is the where it all started for us.

Up now we so all right, so let's get into this conversation.

So how you said you was going to do it, but how did you actually get into Mobile Home Park Investing?

Yeah?

Man, so it was dope to declare, you know, on the episode, but you know, after that, it was a huge influx, right, We had a lot of people hitting us up and actually our partner had reached out to us like, yo, you know I saw the episode. You know, you guys knew what you were talking about. I have some communities in Indiana if you want some houses, you know, come out and take a look. One took a look. The deal didn't really work. He's gonna get me nineteen

Man.

So you come across a deal like, man, we you know, we game because I was looking, but I kind of needed that guidance as well. And so sure enough that email came across, like y'all got this fifty one unit. You know, I'm looking for a few partners fifty thousand buying, Like say, let's like, let's go ahead and get in and jump right onto this. And man, shout out our partner Charlie. Man end up quarterbacking that deal, and we got a first hand to see how everything was done

So you got fifty thousand dollars for fifty one homes.

So he originally initially raised three fifty The park. We got that that part sorry, the purchase price for one point one so we had to raise thirty percent of that put up the three hundred and fifty k. So we was parked, you know, partially investors on that and yeah, man, we ended up locking it down. We went that's the video we actually have on YouTube. We went to go see the park and man, it was it was just

So that's that's the video when you're walking through and people don't know.

Like y'all do.

Yeah, yeah, crazy, yeah, yeah gotcha?

Yeah So what all right?

So walk me through that process and fine, mobile home Like, how much did it cost?

Again? Mobile park?

So that's mobile home park was one point one million?

So how'd you get the financing?

So we used a small community bank. So that park is actually in Greensburg, PA. And that's one thing if you look at for mobile home parks, you either want to go to a credit union or a credit union or a small local bank because they're more they're more willing to finance a smaller deal, right, and also there's more lenders that come out now so we end up

So the Indiana deal didn't work because you didn't have anybody to I guess refurbish the properties, correct, yea. So like when y'all got this one, it was like, all right, number one, was there a lot of work that had to be done? And if so, like did you have a team on the ground or do the partner's going to get how that work?

Yeah?

So the beautiful thing about buying a mobile home park were always looking for It's like buying a business. So it had intricate pieces, it had already a team of repair and on site. They had a park managing in place, so they had equipment. So for us going in, we just add value. So the biggest thing we had to do is feel the empty homes, right, feel or feel the empty pads which are empty lots with no homes on it. So that was part of part of when

So that the property actually has space for you to add to it.

Yeah.

Perfect. Now you said that there's a couple of roles that you need to have in the park. Can we run down again, So like a property manager, I assume what other roles that we need to have With buying an entire park, for.

Sure, I would say with buying a park, you definitely so you definitely want to have your park managing place. But to take a step back, before going through the process of actually purchasing a mobile home park, you definitely want to have a great CPA. You want to have a great attorney who understands commercial real estate but really excusing an attorney who has done mobile home parks and who have has worked with investors who have purchased land.

You want to make sure that there's no cold violations. Same thing.

You want to contact your county health department to come out and assess the water. You want to make sure that the water has no cold violations as well. So that's just kind of like the back end of the due diligence that's needed before you even looking to purchase in a mobile home community.

All the things we're not thinking.

Of, right, right, right?

So then did you sell that?

Yes, so we end up selling that park. We got it in July of twenty twenty, We ended up selling that one. In November of twenty twenty one, we end up selling it. So we end up selling it for two point three million.

So you purchased it for one one million, you sold it foot two point three yep, so you you made a one point three dollar profit.

Yes, So how did that happen? Why did it appreciate so much?

So after the pandemic. What happened was the mobile home park space was one of the best asset classes in real estate is far collecting full rent roll because it's affordable housing. So people were still paying their you know, paying their rent and so it made it very attractive, very attractive. So now you saw larger players, the Blackstones, the Northwestern Mutuals, these large institutions I started to come into the play like whoa hold on? Like these cash

That's crazy.

Is there Section eight tennis? Then?

So not in our particular park. So there's very rare that you're gonna find Section eight tennis. And the reason why is because more so there Section eight is more geared to for apartments. All right, so when it comes to mobile homes, you have some very some but we really the only affordable housing sector that you don't necessarily need Section eight that you can afford. So we don't really get too much help from the government and things

So when y'all bought the mobile homes, we talked about insurance obviously because it was not really like a house, right, right, A do the same rules apply when we're talking about a park? Are we like, how do we ensure that? What's like, what's the taxes on?

As?

Is it the similar situation if we're buying individual mobile homes?

No, So the taxes. What I love about the taxes especially depends that most parks are in rural America, right, So the taxes are cheap. I think on our particular park, our taxes less than seventy thousand dollars right on that asset for the year. And so the people pay personal property taxes, so if whoever owns, they don't necessarily have to pay the land tax. We pay the land tax. But again you're talking about less than seven thousand dollars for over five acres, right, So, so again it's a

So as a mobile home park owner, do you own every home?

So for us, the goal is not to right, you have some mobile home park owners that do. But the reason for us we want to have our tenants to own their homes because what it helps us to do we just own the land. We're leasing the dirt.

So okay, that's interesting. So the one point one was just for land.

With homes included. Yeah, so you did own the home, so we did, and then what we know. So what we do from there is that's when we go in and we pretty much create seller finance and so we can come and say, hey, listen, you know what we see. You've been renting from us. Let us let us help you own your own asset now. Right, So now we can help them, you know again, they'll have it, can

So how many homes was on that fifty You owned all fifty one homes at the beginning.

Of it, no Ah Man, So I think the one I don't know how to accurate number, but I think it was less than fifteen homes. I know that was actually yeah, we.

Want and then you sold them back to the owner to people that was ranm yep. And when you so when you sold it, they didn't get any homes with the person that brought it for.

You do it all without breaking the sweat, like being a boss. Exec to Tuesday tennis, to homework and why did they give the kids so much homework? Family dinners, lunches, brunches, trips to the vet, and a weekend getaway that's anything but a getaway, and you do it all in style, even when you have back to back conference calls on top of the kids, AAU games, and not to mention

You technically do so. When you buy a mobile home community, right like, the guarantee is, hey, I'm binding with these homes. That's gonna pay us this land fee nine times out ten with the community, the good people not trying to move their mobile home out of there. You don't want I don't want to. I don't like saying, because they can't afford to move their home out of there. Because sometimes that is the case. But if the community is good,

So that was the deal. That was one deal, but it is the team situation going on. So while you're closing that deal, I know you had a couple more parks in twenty twenty, right, so like what was that process, like the search process? How are we getting financing to get all these? Right? Because I think it was how many we got in twenty twenty.

Four it was fo Yeah.

So the cool thing is that our one partner, he Quarterback, that those deal as well. So the first park that barn has been talking about that was one park. And then he hit us back up a few months later and was like, hey, I have a three park deal. You know, same situation. He's going to quarterback. He has a team involved as well. He hit us like, hey, you know same buy in fifty k he hit us, So we had the money.

That's just kind of how that happened.

And then you sold one of those though, right, yeah, so that I love that deal. So that deal. So those three parks we got for one point eight, all three of them, all three for one point eight Greensburg, PA. So right around the Pittsburgh area, all three. So one of the parks we just actually sold again after we sold via Vista View. We sold it for three point five, so that one park paid for all. So now we just own two other parks free clear and it's just we just building up equity on those.

How many units in ease runs? We said, visit you, I'm thinking of white man can't jump, So Sydney Dean lived for those none now, but how many? How many? How many lots in this and the other two? Was it like fifty another fifty or seventy forty eight?

And then what was the other?

It was forty eight, and say it was fifty and fifty because we had one seventy two left calculated with my phone over there.

Since they, I mean you invested in a similar area, does that obviously make it easier for you now to just check on everything. Some people might hear an episode, they probably hurt your episode, Like, yo, there's something that happened in Virginia. There's mobile hole parks in Virginia and I live in Chicago, right, I mean I don't know if that may be the best investment, right because I mean I gotta get to this place just it is an issue.

Yeah. So the cool thing our partner Charlie actually moved out too. He was in the back and he moved out to Pittsburgh. Like, Yo, you know what, I could be closer, I could be hands on. So that's the cool thing about it. And like to your point, the best thing is to we tell people starting that should be become a passive investor. That's what we did. We became a passive investors because the owner operator you do have more responsibility, you are more hands on, and if

The homes so okay, so but after that you went on like a dry spell for a little bit, right, trying to buy parks.

So what happened with that?

Yeah, So for myself, I'm like, you know what, this is, dope, we got him this year. I went on Sham's podcast like I'm getting ten this year, declared it. And when I tell you, every offer I was outbid or it just didn't work. You know that I were doing conducting due diligence and it just didn't line up. And it was a top of year, you know. Prior wise, I'm like, man, I said I was gonna get ten, and each month, each quarter, I'm saying, I'm just like yo, like one and I'm just like, man, this is.

Just flying out a lot.

I remember back and forth down to Atlanta, different parts of Georgia looking at parks. We looked at a few in North Carolina. But the thing too, is that some of the parks that we would see via online when we got in person.

Were like, whoa, it's way more maintenance.

It's going to be needed, you know, done on this land versus what the pictures look like. So that was another reason that I felt like it kind of held us back a little bit.

Yeah. So I mean That's good that you said that, because when you see the properties and you're like, damn, all right, it's gonna be more than I thought. How much reserves do you need? Like when you're getting a park, right, because people say like, oh we can get in the deal, yeah, fifty to get into it, but like, yeah, we might need some money for these renovations and we might have to need money to pay salaries for the blocky man's all these people that are that be part of this

So the key thing, you know, like you said, leading those reserves, you know, depends on what type of funding you need they do. That's why the due diligence is so important, right, we want to see what's all every worst case scenario that can happen. Right, A lot of times it comes to you know, you see a lot of older, older sower systems, or they may be on a septic or well water, and so you definitely want to budget, you know, for those problems. So again, when

I feel like the property manager becomes like.

The LRA pretty much. Yeah, you look for free chiefs a psychologists.

So talk about the land fee, so you'll talk about that.

Yeah, So you know the average lot rent in America is three seventy five.

Right, and yep, the lot rent is that's how much they're paying just to mark their their hoble home.

Yep.

Yeah, so similar to hoa right, just like a condo townhome. And so the cool thing about ours and PA, all of ours were four twenty five and up and it's all about location, right. It's you can have for example, like in New York, we've had students that we've seen that their lot rents are like seven twenty five, you know, seven fifth, I mean just up and high where it's California, San Diego, maybe twelve hundred dollars. Illinois we see around

It's like the yo, it's under new management. Yeah. Fact, so you said by state, right, Like depending on the state, that fee can go up. So if I'm starting right obviously, if I've done the mobile homes and I've done that and I'm a passive investor, if I'm looking to raise much, do I start in the state that is known for starting in California with the prices a lot higher, or I start in New York where you said it could be like seven twenty five, Or do I say, you

So for me, if I was looking to get into a park, and if I do live in a market that I know is a little bit higher, I would start in like a Georgia or North Carolina kind of like the southern states you'll see like that cheaper libry or like you said, Indiana, or even like some parts of Illinois. But like southern Illinois you'll see like the three seventy five and the four hundred.

But again you got to go out.

To rural America in order to see those prices.

So let's talk about like some issues that you might have as far as owning a park, repairs and maintenance, what's the what's the deal with that?

Has that work?

So roads?

Right?

Depending on how old something you come on some of these parks is you know just gravel, uh even some not even just no pave, no nothing right, just just dirt, So you can have issues with that definitely. You know, plumbing, if you if you're buying a park with that has you know, septic or well water, you know, you always have to make sure that water is tested and make sure you know, because again you would hate to your water is tamper. Now your tenants without water.

Talk about that the test the water being tested.

Yeah, so with uh, with well water, it has to meet definitely for the county, it has to meet a certain grade. Right, And so you know, again if you if you're not if you're not maintenance and that you know, when it's supposed to be maintenance and things like that, that water can get tamper and you know, that's that's one of the worst that's the one of the worst case scenarios.

You know.

Imagine you have a community and they out of water, right, and so you know that's the issue. Same thing with septic that can get backed up. So that we so we always try to look for right, that's a bad thing, right, and so we try to look for parks that come with city water and city water and city sewer because now we know the city has our back. So some comes out that's the city's responsibility versus us as owners.

I think what happens to is a lot of you know, investors, They purchase these large communities where you may have a seventy five pad and fifty of the lots or field, but now you have twenty five homes that need renovations. And if you don't understand how to renovate the home and just the process of buying and selling the individual mobile home, that's a maintenance within itself as well. So that's why we see a lot of park owners like shy away from investors where us being you know, started

Rent I had like two questions in it. That was a lot. Topography is something that you know I've done before, very expensive, right for those none you know, it's like when you have to test the soil, which for you it means everything. Yes, if your land is sinking, that's an interesting that have you encountered that? Is that something that you guys do when you're doing a duels.

Well, yes, so that is something we do now we haven't encounter it. And and now most states what they require is you have to have a certain amount of cement. So most so cooling my mobile homes again since their mobile when they're when they are you know, I'm wanna say bus, but when they are transported, but they transported in right. Normally, each each unit has a concrete slab and that concrete slab is just you know for stability for the home. So again, so you won't have the sinking.

Donna play around the second part of it was like, as far as having tenants that might cause issues in it, what is the eviction process like in the mobile hole setting? Like we know different states having for apartments and you know condos, but what is it like for the mobile home parks?

So very similar, very similar, you know when it comes to eviction. You know, I will say, we've seen, we've now. The difference is they can file earlier. It states like Louisiana where they can file if you're behind ten days, they can get the process started. And there's a lot of states like that. When we first came, it was like man, who regulating this?

Right?

Like how does this allowed? But you see it as almost you know, anywhere from ten to thirty days where they can get that process started.

So, like, what's the cash flow that you're looking for? Like on average, I know it depends, but is it a play for appreciation or is it a play for cash flow?

Both? So cash flow you coming in for us, you know, we like anything that's at least eight thousand dollars cash flow because we know we can go add value if it's empty houses. We know we can get that cash flow up to anywhere from ten to twelve. For example, our our first one that we sold, that cash flow we had when we purchased it. That cash flow it was right at eleven. We getting up getting up to seventeen thousand a month.

That's for the park. For the park, yep, so seven seventeen thousand net.

Yeah, seventeen thousand net.

Okay, And you said, what was it before?

It was eleven?

So what made you How did that increase the seventeen thousand?

So for we did increase the lot rent. We were able to feel the empty paths that we had as well as he had. No, that was actually that was the first two because I'm thinking about the other park where it ended up adding value, like the Vendom machines and stuff.

Once you feel the empty houses and you get either attended buyer, you get somebody else in there that kind of makes up for the missing lot rent that you're originally not getting in by having those paths empty.

You said something about Vendam machines. What's going on? Earnest? Look at twenty six, I made one of the most important decisions of my life. That's right. I didn't have family at the time, but I did have a life insurance policy. A wise man told me life insurance isn't about the people who die, It's about the people who live.

Right now, that's a play watching yl you can put that as a value add again, I'm you know, a game, so we got to get so you know, honestly, you can do a lot of value adds right like I said, you can add in the machines.

One thing that we incorporate food truck. Yeah, incorporating is buying you know, older food truck. Now you can have food truck. And now you can actually have you know, one of the tenants who's one of the best cooks to come and now serve that. So it's a lot of different value ads even I'm I'm gonna give them a play. So now instead of having an actual convenience store, you can purchase an older r V a camper and

Yeah, that's a good idea for sure, because it's like people got to instead of going to the store, you can just have everything you need.

So in these mobile home communities.

What is the vibe? It's just like five how big is it? Eight acres? Five acres? Five So five acres of just land with seventy mobile homes.

That's it.

There's nothing like it's what are they doing?

So one thing I will say what I love about mobile they're more it's a more tight knit family, right because again sometimes they are stereotyped. Right you live in them, you live in a trailer or things like that, right, But down south you see it more often. But in the community, the community is more tight knit than a lot of times that we think of. Like you said, they may you know, go to work activities depending on where that's.

That's kind of a jaded question.

It's like I'm thinking, like a restaurant, you got to you got to be able to go to the gym, like you know what I'm saying, Like everything is in walking distance or at driving distance. But I guess most people, if you're in Middle America, a lot of stuff is not.

In the city anything exactly. What if you live in a house. You don't know what I'm saying.

What if we can turn one of those, like like those fast food franchises into them mobile unit to the property. Well like what so let's say you had like like McDonald Donald's and we had a mobile truck that came the same way that they cook, like the fast truck does. Now you bring that to the property. I was really thinking entertainment wise too, like maybe once a month, you know, like they have those mobile screens.

It's a lot of places and depends so especially down South, like those down South, so it's their community. So you have all age communities and then you have to earners.

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Security five plus communities fifty five plus Again, anybody who's fifty five plus retired. They like living amongst each other. So in a lot of those communities you have different you know, start your five star communities, you know one star communities. One stars, they're like, yo, I don't think I'm driving enough. And then you get the five star you're like, yo, these a mobile homes because the new

Or I was gonna say, even the one, our first part that we did business in in Illinois, they had a pool or swimming pool for the kids, like a basketball court. Like it seems small to us, but like you said, like individuals who live in like rural America, like that is their entertainment.

I got a bunch of ideas.

I'm crazy mobile homes. I was always thinking the whole point is to be able to drive.

Yeah, but I'm hearing that most people don't leave, So why do you have a mobile home if you're not going to be driving.

So the difference. So so the ones you talk about the driving those are the r vs. Yeah, and so the mobile like more so manufacturing home. But the reason we still call them mobile because again they be moved to a spot. But those are the double wise. The single wise that you see, those are more so that. So they're just okay, they're.

Called mobile because they can be moved exactly. They're not actually like driving.

They are like the tiny home, right, and they are similar in the factory so against just like for example, like Clayton Holmes that's Born Buffets company. They cranking out some factories can crank out thirty homes a day. So they're cranking them out just like you know, just like a like a car, and then they move them to the location.

We you know, it's one of these things that we're in a housing crisis right now and inflation is at all time high and the housing market is that all time high. Is also so a lot of people can't afford to lift places. So it's like, you know, because how much do these things cost now? Like how much mobile homes costs now on average?

So average I was gonna say, use average. So when we first started, you can really find a use mobile home for less than five thousand dollars.

So I would say that we.

Definitely run the market up a little bit, so I would say, shout out to y'all.

But so now it's right.

But now I would definitely say you can still find a mobile home, a use mobile home for a less than ten thousand dollars. Now a newer mobile were home, like a twenty twenty two. That really depends on the making model, but I would say average.

The lowest we've seen.

Is like thirty thousand upwards to like fifty thousand.

How many squiff feet, so anywhere from seven hundred seven hundred scud feet to a double wide on a high end almost two thousand square feet.

So that could be like two to three bedrooms.

You can get four bedrooms out of those.

They come with launder units inside of it too.

Yeah, yep, everything you have laundry units. Yeah. So what I love about it imagine launch, right, So the beautiful thing about it, right, like most so after definitely after the eighties, everything was made just like a like an apartment, right, So imagine just a longer apartment with no upstairs downstairs

So Okay, So I was reading and they said the mobile home parks is low risk and high demand. Yeah, low risk, high demand, So I'm assuming it's low risk because there's not a lot going on and you said people don't usually leave, Yeah, and high demand because we just talked about a housing crisis.

Yeah, and it's a.

Very affordable way to lift yes, So it's actually like something that is it's getting bigger.

Yeah, oh yeah, for sure. It's so it's especially what's happening right now. Right like I said, we're seeing prices are going up inflation. People still need to you know, affordable place to live, and so it is becoming more attractive because it's like apartment ren's not going down. And now I can make twenty dollars an hour, fifteen dollars an hour, and I can go live in a community.

And it's a low turnover. Right, yes, what about competition, Like is it a competitive market right now.

Yes, it definitely is. I think on all aspects. It's competitive as far as you know, people come into the space want to buy mobile home communities. Now it's still when the last time we spoke institutionally. What I mean by that like like you know, company like private companies or large institutions only had on ten percent of the market ship. The rest we call mom and pop parks, meaning it just you know, they've been in a family, they're privately owned. Now that's probably up to about right

No, I was going to hop in and say, because I know viewers for the individual home aspect, I would say that it's not competitive. It's still a very low competition market if you do. If someone's watching this and they're like, hey, I just still want to get into even the individual space and then transition to the mobile home community space, it's still a great market to get in as far as that low risk and involvement in real estate.

Yeah, I'm thinking from the stand point and I'm glad you said it was like they're cranking out thirty homes a day, right, you have parks. At some point, do you think, hey, maybe I should design it or create the actual homes to actually sell the people we have.

We definitely have. I got a list of all the manufacturers, and you know, I honestly look at it like twenty twenty three. I want to go into get an acquisition where I buy an actual manufactured company so we can have Because what happened with the pandemic did it slowed down the production. So it's a lot of park owners who are on still waiting for new homes to come in because right now, like you said, it's it's a demand. So people are now trying to fill up their parks.

The person that actually he's just gonna how's that work? He's gonna take it from the lot.

So here's the thing. Yeah, So here's the thing. When you own, for example, mobile homes inside of mobile home communities except in Texas, New Hampshire, Vermont, they are titled just like cars. Right, so I own an asset. Once I have that title, I don't necessarily have to have this in the community. So as for us, we try, you know, you want to get tenants on leases in agreement saying hey, I want to stay in this spot for at least a year. Some people have two three

All right?

Cool. Now she's taking that home to Troy because because she on the asset.

So it's like the title like the deed for the house. Yeah, gotcha.

People find mobile home parks, so I know she got the resource. Mobile home parkstore dot.

Com, loopnet dot com is another one. Facebook groups. It's a lot of like mobile home park Mastermind Facebook groups.

You can find park.

Owners or agents that's listing parks driving for dollars like you can still drive around to different communities and if the current owner is there, you can get out and have a conversation with them and just ask like, hey, you know you have a thought about selling or you're thinking about selling.

Is there like like an auction? They do auctions for homes.

If it's like more, there are some you can definitely, yeah, you can find homes. But even for parks that they have some, especially if it's like like a tax duh, you can get those every now and then. They have a few I've seen like Arizona they have auctions. I also tell them give them the Google Google Map play.

Oh yeah, Google Map.

You can put in your Google Maps and mobile home parks near me in your area and then it literally would show you all of the mobile home parks is off any highways it's in your area. So that's another way to see the mobile home parks in your area.

So it's good information.

So as far as like buying a mobile home park, you have like an inspector come in and they do an inspection, like if you're buying a home, but they got an inspection for every home, or they just do an inspection for the land.

More they don't expect the individual.

Home, so more so for the land. But I would tell you know, I would encourage if you definitely get inspection over the houses as well.

They don't you can do that, yeah, like you have somebody do it each individual house, just to make sure the maintenance of the houses.

That could affect you too, right.

Yeah. And then so for example, what if it's tenant owned, if the home is you know again the tenant owns. Uh, more so just the exterior.

How's appraisals work?

So they are mobile home park appraisals? The process, I don't know, but I will say I like appraisals because every time the park we had, we always get equity within this.

Yeah.

Do you think that, like, like for real estate investor, is is this something that you would consider people to chick consider instead of buying homes, buying mobile home parks or like in addition to their real estate portfolio.

Look, the CFOs that get it get it. The CFOs that don't don't. Let's talk about the CFO. The chief financial officer. Today's CFO is critical to the strategy and success of the business and in growing companies, there are two kinds of CFOs. One who's struggling to keep up spreadsheets everywhere, manual processes, errors and lack of visibility into the numbers. It takes weeks to close the books. The

I mean, we will providing a competition now. But now you know what though, I would say this if you want to buy more units for a more affordable price. For example, if you buy an apartment building nowadays, the average apartment building per unit, you're looking at anywhere from like sixty nine thousand up or still like eighty nine thousand

Yeah, now every time you get to own the land.

Yeah, park every time. And the beautiful part of extra strategy, it depends on where your land is. Let's say God forbid all the homes or now I can sell it to home depots, so it's so my land to them.

So but those two parts that you sold, why did it appreciate so much though, because that was like a big appreciation for both of them.

Yeah. Was it a reason did you like refurbish it.

Or or it's just good timing both right, just definitely adding the value to it. Turning the tenants. Like I said, people are more likely to get a loan from the fact that if it's tenant owned homes, right, because they look at it, it's more it's a riskier if I have I if I'm going to own all the homes. And then, like you said, perfect time after the pandemic, people saw the results, right, rent rolls, I mean it

Okay, okay, I got that. I got that. So it so we got these lands. You said, twenty twenty one was a tough year. At some point we had to readjust the planssess what we're doing. What was that like for both of y'all, Like, you know that that could lead to some tension and now we're still having this wedding. Man, we got to hit.

These you know what, I will say, she helped me. I was kind of stressing and as always, it's always stressing, and she kept you know, she she definitely kept me level headed. You know, just look at the bigger picture. Look what we have, you know, look what we've been able to create, and that did help me.

And then don't want to say, look what we've done.

Right, So at that point we were like, oh, we want to get so many mobile home parks. But then I think we didn't realize what we created in the educational space. As far as you know, we got over ten thousand students enrolled in our program. So that's another stressor. And you know, within itself on building the top mobile home investment educational program in the country, that comes with

Yeah, ye're building two different entities, but one educational and it's still practicing in the space.

Yes, it's tough, yeah, love.

Do you have a park manager?

Yes, so every community has a park manager and they mostly we offer but they can live whatever. I think one of them does not live on the community. And they're like the super kind of basically yep, just like a super. The difference that they don't fix anything. They'll mostly call the shots, you know, they make sure, you know, they report everything out, just a.

Check on everything. What do you think the future for mobile homes in America is? So?

Honestly, so this is the mobile home park space. Manufactured home space technically kind of threatens the housing sector. Why because they're cranked out in a factory. So if America really regulated this and said okay, cool, free, will you guys everybody can create factories. Now you're talking about what you're gonna do to contractors and builders, right, because now if we just popping up all these homes, you know, factories,

The same all you're watching those likes and saying, all right, is this competition right because you know, we know some people that have home communities and nah, so it's completely.

Different, completely because for us owning the land, come on, tiny home, come on container home, like we got we can replace those.

Yeah you could do that.

That no, well, she had she loves me.

I'm like, I have, I love tiny homes.

So that's originally what I wanted to get into before we even got to the mobile home space. What attracted

So this is a this is a land play.

Yeah, yeah, this all land play, land play.

E've been watching the McDonald's documentary.

Yeah, that's like the primary focus on the land.

But you so all right, you buy the land, but you can't do anything you want with the land though, right, Like you can't kick the people off technically.

You can technically, but you know again, I mean for myself, living integrity now our person, Yeah, but you can. Yeah. So for example, we just come to a parking North Carolina and he they hadn't know, maybe twenty plus homes and the developed well he's a developer, and he's just like, yo, like I think they got everybody out of the homes and now sell the rest of these mobile homes and they're going to develop apartments so.

Like, when you go for financing for this, since you're buying land but you're also buying houses, what kind of loan is it?

Yeah, so it is a They do have matter of fact, sure, manufactured home community loans specifically for just for this Yep and Fanny May. They actually have a certain amount that they have just for manufactured home communities that they you know, that they actually allow. I don't. I don't remember the actual number. So you know, you you are. Well, we're seeing since we first started, we're seeing more and more lenders now that are are lending for mobile home parks and.

Like, what's the requirements like saying, like you like tax returns?

Yeah, pretty much like a commercial real right, you know, the same thing real estate. We was in this space twenty five thirty percent, so we're hoping to go down to twenty.

Was it always that you've seen it change?

We haven't seen.

Well, So I go ahead, and I was gonna say, just from when we just first started doing this, I would say it's always.

Been kind of thirty thirty percent.

Now, going back to that that landplay that you said from let's say like you wanted to turn it into apartments, so you want to call commercial real estate or something like that. Do you have to now go back to the zoning laws and go to the county and figure out.

If we can yes, yet on the same process.

Yeah, then you can refine.

Yeah, And so that's really the play honestly, like for example, you know again just see why, Yeah, get played here, you know you gotta get plays. But you know, again, if I find, if I find a community, I add value to it, I want to refinance, right because now I can go take that with the equity and I can go put the down payment on another community. And so that's what most are doing, just like the you know,

What so, I know ten was the goal last year. We set a goal. I mean it's still early. In twenty twenty two, we set a goal for this year. Yeah, we're gonna hold you to.

I got bad luck from man.

There's that.

There's a number that we that we're like, you know what, realistically we can hit this number.

Yes, yes, because why because we we're rolling out a mobile home park fund and so that allows us each quarter to buy multiple and so the goal is to get three to four communities a quarter and now allow opportunity for more people to come as passive investors, to get to learn how to do it. And again we always talk about we can always talk about group economics, but a lot of people don't look like us that do this. So now it's like, oh, we open up

So the fund, we can actually invest in it. How does this work? Told me?

Yeah, So the fund, we'll have general partners, limited partners the fund for us. I don't know if I could say that numbers I got hot the eighth, but okay, I'll get hypothetical. Right, So let's say the fund we say, hey, you know what, our general partners, we want to put sixty thousand a piece.

Right.

The goal is we going to say we want to raise a million dollars, and that million the goal is to take that million to become down payments for each community. So that's how we get more instead of just buying these parks our cash. Now right though within a million, we can find as many parks as we can. Let allow that be the down payment. We go get go, get outside finance. And so now what we're able to do is, hey, we own Let's say we own five million dollars in assets. The goal is to get a

What's some of the biggest issues with the part, Like, is it environmental issues?

Is it tenants?

Like, what's some some of the downsides that can be hurtful?

Yeah?

Yeah, I would say definitely tenants, maintenance issues, I think just across the board, and even traditional real estate and mobile homes. Finding a reliable handyman and contractor and even just a handyman team has been like the biggest issues I would say we have saw.

Yeah, and then the worst what happens is if you don't do your due diligence. Well we've seen people actually go in and buy a community and not consult with the county, not get the okay. And so if you you definitely want to be on the you know, the good side of with the with the city and the county, because we've seen people get a lot of trouble, right because what happens is they'll buy something, is the city is like, yo, that's already like ugly, we want that

So talk about you also scaled the education a lot, right from the last time that we spoke, So talk about that. You talked about your your students having like I think ten thousand students nature, So how has that been as far as scaling that and talk about some of the maybe it's the success stories.

Yeah, and so we actually brought on a head coach, so I got a shout out in Nicole Brisco mobile home mommy. But so the beautiful thing what I love about nicole story is that she was one of our first students that his six figures in less than six months. So Nicole had netted one hundred and eighty one thousand and six months from wholesaling individual mobile homes and then doing some on seller finance through payments.

So she reached out to us.

I think she hopped on the IG Live with us, and I loved her energy, and I told Byron, I said, you know, we got to think about scaling our educational program because kind of like you talked about Troy, it's hard to you know, have our hats fully in the investing side and try to, you know, have the number.

One program in the world as well.

So I told him, like, I think we should bring somebody on, and she was my first choice. So we ended up bringing her on and now she has our mentorship program, which is a twelve month program that we do, and that program is really to scale an individual to a six figure earner like herself and then then get them to the seventh figure earner like us and scale them.

To buying you know, mobile home communities as well.

Yeah, and it's been a blessing, you know. I think that I remember I had some queens pray over me one time, and I remember they was just like, you're a teacher, like a teacher all things. I'm a teacher, you know. But it was fun, right, you know, just being with the people, you know, being online, you know, being able just to share game and just you know, you seeing the impact and then definitely need to be able to do it with her.

You know.

It's just it's super dope that you know, we get a chance to share our knowledge, you know, see people change their lives and you know, even like you said, scale our team, my best friend growing up, right, my best friend is even on our team. And I got that from you all, right, seeing what y'all been able to do, and you know it's just like yo, like you know, halfing my goshot out, my guy Jarill even on the squad, and it's just like, uh, the impact

So it's kind of like.

Mentorship type program, yes, where you say you you start off and you teach them the basics of like buying mobile homes, individual mobile homes, and then scaling it to the point where they could potentially.

Buy mobile home parks yep.

And it's like a step by step process, yes, with like zoom calls things.

That so yep, zoom calls. And then we actually we created a bus tour. We actually take them out to a community, so we'll be you know, a city that that we have a relationship with a community. We ain't took them into ours yet because it's been cold, so you know, we'll take them out there and we even give them opportunities. We've had students buy homes at the at the you know where we you know, the parks that we take them too, and it's just giving that

So do y'all y'all what So that was pretty keen. You said that a lot of some of the students actually get to purchase from your properties. Yes, but do you also make sure and go out to secure their first property as well?

That's the goal, Like that's the really goal. Like it's so it's it's an intense program. Like Nicole, I love about it. Man, she a real coach, so she is OneD ay ass and because we care though, right, like, and that's the thing, like I would tell people like don't don't invest. Don't invest in this if you don't really see yourself doing it. If you want the information, cool, just watch all of YouTube, watch everything for free, right, but if you serious, that's why I want you to invest.

Yeah, it's one of these things where it's like like I said, there's no college for it.

There's no.

Education that you can go to university. So you know, the online space has become universities, especially for these type of niche learning like trucking facts, mobile home investing, mobile home park buying, and like you said, I mean it's always free information as far as on YouTube and google things in nature. But when you're talking about mentorship and like more of a hands on situation, that's a lot different.

Off right, it's appreciate that.

And then the more advanced, more the mentorship that's the hands on that's where you actually get the zoom calls and actually go on the bus ride and get you know, be part of the can munity and actually like you know, actually go from the steps of buying your first home to you know, potentially buying your first mobile park and for that you're gonna do two thousand dollars off. Sure,

That's what really gets my attention, Like.

The land, Like you literally in a position where you can actually purchase land, and that's that's everything. We're in the race for land in this world. Whoever owns the land owns owns everything.

Very true.

Yeah, so what's next? What's what's next for you guys? Yeah?

Man, so you know, concentrating on the fund and you know, I think for us, continuing to cultivate our students. You know, I think that that's the biggest thing. Like we said that far as the brand. Charnice and I realize, you know, getting married July second of this year, right, so thank you, thank you.

Right, you know, hopefully after that comes to families change. We can't be at the forefront all the time. So, like you said, that's why we're trying to build our students up.

You know, started with the cold. We want to.

Eventually have a full team of coaches across the country that are teach in mobile home investment in each market.

So that's our biggest goal with that.

It's gonna be fun, super fun.

Man.

Man.

I always appreciate y'all. Man, it's always dope linking with you guys. Man, truly appreciate y'all.

Our first event too.

Sum when you were shot the sky in Wall Street traffic.

Yeah, yeah, that was his first time speaking to like a group of people.

That was crazy.

A lot of firsts, a lot has changed since. Definitely proud of.

You guys, for sure, Thank you so much.

How can people staying in such like, what's the website, what's the social media handles?

All that stuff?

Yeah for sure, so definitely Instagram is one of our heavy sites at Mobile Home Elite Investors, same thing that's our Facebook at Mobile Home Elead Investors, the watches on YouTube. We got so much just free stuff out there. If you type in mobile home lead Investors or mh Elite Investors website, Mobile Home Elite Investors dot com. Man, that's everything, yep, anything you want to say, niece.

Man, I just want to say thank y'all again for having us come back. Definitely appreciate y'all and for everybody watching. I to see y'all in the mobile home space, join us in the mobile home space.

Yeah. Man, I just want to say personally, how proud of am y'all. Growth from bureau in twenty nineteen to ten thousand students is remarkable and it was one of those first success stories. Like you said, it was the biggest episode that we put out at the time. And we always like to say like the like the match was lit, but the y was poor. And y'all have

Two times time.

You know how this thing works. So shout first and foremost, and shout out to all the earners out there, all of y'all man across the world, not even just the United States. I want to say, all our global earned Shout out to all of y'all. Y'all have just been spreading the word of the euy L and the word of financial literacy. So thank you and thank you for all your support. Shout to all our patrons on Patreon, and shout out to everybody in the merged team. Shout

Thank you guys for rocking with us. We'll see you next week.

Peace my graduates from my school being forced bags drop drop bag, drop bag drops.

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