A couple of months ago, we introduced a new topic to our Mogul community: Mobile Homes. We started it off with a killer lesson from Mr. Sean Brooks who addressed this quiet gold mine of REI.
So if you haven’t already, go back and check out that awesome lesson, Mobile Home Investing: Why You’re Missing the Boat. (More on that later…)
Sean’s been involved in wholesaling, creative finance, seller finance, lease options, straight options and raising private money. He’s closed more than 130 transactions with mobile homes, single-family homes and town homes, and he specializes in the manufactured housing niche where he creates notes.
As Sean will tell you, mMobile homes actually present a terrific opportunity for investors, but few capitalize on them because, well, mobile homes are simply misunderstood.
So, Sean is gonna clear it up for us…
From Faculty Advisor Sean Brooks…
In this lesson, I am going to introduce to you the powerful 2-step cash flow creation model that makes investing in mobile homes so powerful. Whether you are a seasoned investor, or brand new to real estate and barely have 2 nickels to rub together, this model is something that anyone can plug into.
But first, let’s recap what we discussed in our previous lesson…
Mobile home investing is a very powerful niche that you may have overlooked until now.
Because this incredible money-making niche has been overlooked by the masses, it’s created the “perfect storm” of opportunity and those who capitalize on it will be rewarded quite handsomely.
The Main Advantages
1. Ridiculously high ROIs.
2. One of the fastest ways to make money in real estate.
3. They are super cheap, which helps reduce your risk.
4. Supply is high and so is demand.
5. Less competition (because most investors don’t fully understand the potential).
I’m betting you’re now thinking that mobiles homes may be worth taking a closer look at…
The 2-Step Cash Flow Creation Model
Onto the juicy stuff – the nuts and bolts.
This beautiful model will continue to prove the point that investing in mobile homes makes a ton of sense.
This model is perfect for:
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New investors who haven’t done their first deal yet.
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New investors who have only done a couple deals.
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Very successful wholesalers who want to start turning transactional income into passive income.
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Seasoned investors who are looking to build more passive cash flow.
So What Is the model?
Quick Cash + Cash Flow = Financial Freedom
Boom! There is the simple yet extremely profound equation.
The goal here is to create quick cash, in the form of a flip or wholesale deal, and simply take those profits and invest them into buying a mobile home free and clear to hold for cash flow.
In other words – taking cash profits from our quick flip deals (wholesaling or fix & flip) and re-investing that money into something that will yield us cash flow.
Until now you may not have had a place to park that money to produce cash flow…
What Options Do You Really Have?
Okay, so let’s pretend for a minute that you are a wholesaler who just closed a quick flip and received an assignment fee of $5,000.
That’s great! But, what do we do with it now?
Pay some bills that have been piling up, put new tires on the car, buy some toys for the kids, and maybe even take the spouse out to a nice dinner…
So what do we have left? Well, that really will depend on income vs. expenses, but that’s a whole other lesson that we’ll cover another time.
So, back to the money – we could spend it, we could put it in the bank where we are, in actuality, probably losing money after inflation is accounted for, or reinvest it back into our business… But how?
Ah-ha!
Could we potentially take these quick cash chunks and turn them into cash flow by investing in a mobile home?
Ding Ding Ding! Bingo.
This model simply allows you to put your money into a low-cost, low-risk investment with insanely high yields.
Where else can you stick $5,000 and turn it into a $300 a month passive cash flow?
If you know somewhere else that can match or beat this, let me know, because I’m in.
Imagine for a Moment…
You started reinvesting the majority of your quick cash profits into mobile homes for cash flow.
You start stacking these up like houses on a monopoly board – each time increasing your cash flow by roughly $300 per home.
How many mobile homes would it take to get you out of your day job so you can pursue investing full time?
How many mobile homes would it take to get your cash flow to meet your expenses so every time you cash out a fix and flip deal, none of your profits are eaten by multiple months’ worth of expenses?
Do you think it will be absolutely crucial to not only your survival in the business, but finally breaking through so you can truly experience the life we desire?
What’s the reason we got into this business in the first place?
Time and Financial Freedom
That’s what it’s all about. And that’s what investing in mobile homes can help you achieve, especially by following the 2-step cash flow creation model.
This important 2-step equation solves a big challenge many people face in the business... A challenge that holds most back from ever truly experiencing time and financial freedom.
That challenge? Cash Flow.
So, using this mobile homes model, you’ll be able to create immediate cash chunks, then reinvest that small cash chunk into a super high-yielding cash flow investment.
In my next lesson, we are going to dive a bit deeper into Step 1 of the 2-Step Cash Flow Creation Model. Stay tuned…
Analyze your personal finances.
Analyze your business finances. What is your net annual income? How much of that is passive income?
Calculate how many mobile homes you’d have to buy to generate enough cash flow to cover your personal expenses? (Assume each mobile generates $300/month.)
Calculate how many mobile homes you’d have to buy to generate enough cash flow to cover your operating expenses in your business? (Again, $300/month cash flow each.)
Reinvest any profits from other deals into mobile homes.