Is Being Bad Good for Business

Is bad behavior good for business?

Unethical entrants into the MHP space have landed spots in publications from Time Magazine to John Oliver's "Last Week Tonight".

Bad behavior resulted in restrictive legislation in New York state and threatens to spread.

But what's being done to curb the spread? And worse, are they getting away with it?

On this episode, I'm going to hit you with some uncomfortable truths. But that's ok. That just means you're one of the good guys.

Together, we can raise awareness to bad behavior and hopefully affect positive change, together.

#MHP_IRL #MHP #Differentiate

The Reason for the Business Model

Why mobile home parks? πŸ€”

The business model and environment are unique.

But, the secret is out!

Competition is intense for these assets.

Because people know a few facts. πŸ§

βœ… Supply constraint - More mobile home parks are destroyed than developed each year. 
βœ… High demand - Given the price point, this is the most affordable housing option.
βœ… Highly fragmented - Large percentage of parks are owned by mom-and-pop investors. 
βœ… Low turnover - When tenants own their home, it is common for them to stay for their entire life.
βœ… Low capital expenditures - With few park-owned units, owners are responsible for infrastructure, trees, and roads.

These characteristics plus several more contribute to the increased attention.

This investment thesis is here to stay.

❀️ What is your favorite form of real estate investment? β€οΈ

How Smart People Outsmart Themselves

Ever wonder how people justify paying high prices for MHPs?

Me too. So over the last 4 years, I asked the largest operators, the newest of the new, and everyone in-between, how they value their deals.

This episode will shed some light as to how folks justify some outrageous assumptions, but more importantly, it'll help you become more self-aware of mistakes you too could fall victim to.

#MHP_IRL #MHP #Differentiate #Monetize

Markets Are Heating Up

Ring ring ring.


I introduce myself.🀝

Many times, the calls are brief.

Other times, the owners open up. πŸ—£

Today, I learned that competition is increasing. πŸ“ˆ

Parks that use to get contacted once a month are now contacted once a week via mailer or cold call.

These are small parks in secondary markets.

The word is out.

❌This industry isn’t a secret. πŸ€«

How do you differentiate?

Cold Call Realization

"We sold last year"

This crushed me. πŸ˜”

I was scrolling through our database during my daily cold calls.

I came across an owner I hadn't called in over a year and a half

What?!? πŸ€¬

I dialed the owner immediately... Voicemail.

I called the park. The manager answered.

The park sold last year to new owners.

No way?!?! πŸ˜°

The owner told me in that it was hard to sell when you are making money.

Well, something changed.

I was reminded of an important lesson in sales.

No today doesn't mean no forever.

Keep calling. πŸ“ž

Follow up.

Lesson learned.

A Path to Riches

How do you get rich in real estate? πŸ€‘

This is one method.

It's no secret. πŸ€

βœ… Buy value-add properties.
βœ… Utilize debt and business partners to stretch your dollar.
βœ… Stabilize the asset.
βœ… Refinance
βœ… Purchase more value-add properties.
βœ… Rinse. Repeat.

This is how you turn $1 βž‘️ $4 βž‘️ $16 βž‘️ $64.

Poor decisions can make this a β€˜get bankrupt quick’ scheme too.

Tread diligently.

The Biggest Thing in Industry Needs

What is the industry missing? πŸ§

Third party managers

Apartment owners have options.

Not the case with mobile home parks.

You must build an in-house operations team. πŸ› 

Too many investors love to purchase and hate to operate.

Trading one job for another one isn’t freedom. πŸ‘¨πŸΌβ€πŸ’Ό

Plan and you can be successful.

#realestate #reinvesting #propertymanagment #multifamilyinvesting#multifamily #business #mobilehomeparks #mobilehomepark #operations#apartments

Business Sacrifice Is Apart of the Process

Every business person has to sacrifice.

It is opportunity cost analysis in action.

When we first started this business, we had to make several sacrifices.

And still do to do to this day.

We pay ourselves 30% of the money we make.

We still 'take home' less than half of the income we made in corporate America.

We prioritize reinvestment into the business.

We both drive 10+ year old Hondas and that likely won't change soon.

Cars have a negative return on investment.

We both live in modest places.

I still have several roommates. Ryan lives 30 mins away from Uptown Charlotte in a modest home.

We don't rent office space and film our content in a garage.

Long term we may have finer things, but today building a business is way more rewarding.

What sacrifices do you make for your business?

#realestate #business #reinvesting #mobilehomes #multifamilyinvesting#mobilehomeparks #mobilehomepark #strategy #success

Seminars Are Sending A Signal

The amount of the educational seminars in the market today is a SIGNAL. πŸ“‘

Did you interpret it?

If you listen carefully, it is somewhat contradictory. πŸ€¨

β€œSign up for my course where I’ll give you the blueprint to make millions in real estate”

Investors who have purchased millions of real estate are now spending their time educating the masses.

In other words, the opportunity cost of chasing for new deals is lower than talking to a large group of new investors for a weekend. πŸ€

The market isn’t yielding enough opportunities.

Therefore, the incentive to teach is more attractive. πŸ‘©β€πŸ«

What do you think?

#realestate #education #business #incentives #multifamilyinvesting#mobilehomeparks #mobilehomepark #multifamily

Finding Good Contractors

Finding good contractors is a common problem.

In Georgia, we hired a HVAC tech that seemed to check all the boxes. πŸ‘¨πŸ»β€πŸ”§

He was young, responsive, and reasonable on price.

He would work on the weekends.

On several occasions, I found him working until 11pm. πŸŒ™

We did a TON of business in short period of time.

Then something changed.

We started receiving the same bill for work already completed.

Shortly, after he finished, tenants would call with complaints. β˜ŽοΈ

Work quality decreased.

We stopped paying him.

He threatened a lawsuit. πŸ‘¨β€βš–️

We hired the previous company that we used, only to find out he improperly installed the wrong systems.

We had to pay for the work to be completed twice.

Ouch. πŸ˜§

It was an expensive learning lesson.

What’s your best ways to vet contractors?

#business #realestate #mobilehomes #multifamilyinvesting #contractors#mobilehomeparks #mobilehomepark

What is MHP_IRL?

I think you SHOULD get into MHPs, but with PROPER expectations. And that's why I'm here.

We have a chance to usher in a new era for MHPs, and to do that, I want to provide you with the tools necessary to get started and to grow. I'll expose raw and uncomfortable realities that'll help you understand what's really going on within the space. 

We’ll talk about deal sourcing, structuring partnerships, property management, negotiation, persuasion, marketing, overcoming your own psychology, and so much more

We can shape the future together. Join me. Welcome, to MHP_IRL.

Time Management

How do you schedule your day?

It could make all the difference...

I try to focus on high dollar activities first thing in my day. πŸ§

In other words, the results of my actions could yield the company thousands or millions of dollars. πŸ’²

Certain activities are better addressed after completing high dollar activities.

Here are a few tips I try to implement

βœ… Schedule phone calls after 12pm.
βœ… Answer emails after your morning focus activity.
βœ… Prospect new deals is the highest value. Do it daily. 
βœ… Batch LinkedIn post writing to Sunday afternoons. 
βœ… Prospect, develop our brand, conduct operations, network, complete administrative tasks in that order.

What are your favorite time management techniques? πŸ•