Howdy folks, Sean Brooks here again to talk to you about the wild and wonderful world of mobile home investing.
In today’s lesson, I am going to be focusing on something that I hold very dear to my heart… quick cash!
Yea, I know it’s hard to believe right? (Hopefully you are picking up on my sarcasm by now.)
Creating quick cash is Part 1 of my 2-Step Cash Flow Creation Model. In Case you missed my 2-Step Cash Flow Creation System introduction in my last lesson, let’s do a quick recap before we move forward.
It’s a simple, yet brilliant model that I, and others who have followed the model, have used to create financial freedom in record speeds.
I’m not kidding. So here’s the model:
Quick Cash + Cash Flow = Financial Freedom
The moral of the story is to create as much quick cash as possible, then take that cash and reinvest it into cash flow.
The beauty of it all? It can all be done inside of mobile home investing. And that my friend is what we call a “self-liquidating business model.”
The quick cash part of your business fuels the passive cash flow part, which will continue to grow and grow over time.
And in today’s lesson, we are going to be focusing on the first part of the equation above.
It doesn’t matter if you are brand new to the game or have a portfolio of 20 rental units. In my experience, almost every business needs influxes of cash to not only operate but to grow.
In fact, it’s about the only way to grow your business at lighting fast speeds to help get you out of the rat race.
Notice I said “help” in the sentence above. Thanks because quick influxes of cash is only HALF the equation! Don’t forget, we cannot neglect part 2, which is cash flow, but we will get to that part of the equation in our next lesson.
So What Are the Quick Cash Strategies?
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Wholesaling
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Co-Wholesaling
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Double Closing
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Buy & Flip
There are some more creative more advanced techniques we can utilize to create some quick cash, but again, I want you to understand the entire model on a broad spectrum before we really start getting very technical.
Don’t worry, I’ll be explaining all of this stuff in great detail in the lessons to come. (So make sure you stay tuned.)
Wholesaling
Chances are you have heard about this technique a thousand times. Maybe you have even tried and not had much success. Maybe you are currently very successful wholesaling single-family houses.
But the real question is:
Have you thought about wholesaling mobile homes?
Hummm…. “Very interesting Mr. Brooks…” you may be thinking to yourself.
Exactly!
You may be the only person in your market utilizing this technique in the niche of mobile homes. Would you rather be fighting tooth and nail all the other investors in town?
Or would you prefer to be the master wholesaler (and only wholesaler, possibly) dominating your market with mobile homes?
The choice is yours.
Co-Wholesaling
I believe this is the quickest and simplest way to make your first penny as a wholesaler there is. You only have to be on one side of the transaction.
Let me back up here for a minute and explain what co-wholesaling is… it’s when you are involved in a transaction with another wholesaler, but you only bring a buyer or a seller.
Example: Let’s say Jimmy has a wholesale deal that he is trying to sell but can’t find a buyer. Time is running out. Jimmy’s contract is about to expire because like many new investors, Jimmy didn’t build a buyers list first…Doh! So this is where you come along to save the day. Because you were the smart investor who focused on building a very solid buyers list, you knew exactly who in your list could buy Jimmy’s deal and you both split profits 50/50.
Talk about leverage.
Heck you could train a bunch of Jimmy’s to do all the work and bring you all the deals, while you send out emails to your buyers list and make quick cash. Just an idea… ;-)
Double Close
A.K.A. my favorite technique. A little more advanced, but so dang powerful and profitable.
Double closes are great for those deals that you hit homeruns on and are making so much cash, you don’t necessarily want your buyer or your seller to find out about it!
And trust me, it’s gonna happen if you explore this niche, so you will certainly need this weapon in your arsenal.
Basically, a double close is when you contract to buy a property for let’s say $10,000 and you turn around (before you close) and immediately sell to someone on your buyers list for $20,000.
That’s a 10K spread! Not too shabby for a crappy mobile home that 99% of investors overlooked.
By utilizing this technique, you can make sure your buyer and seller don’t know you just made a killer profit.
Buy and Flip
So up to this point, the 3 strategies above have not required money out of pocket except maybe some marketing materials and earnest money.
But for those of you who do already have some capital lying around, this may be the best technique for you to create even more of it.
Why do I say that?
Well, it’s just a little bit easier and you don’t have to hustle as hard (you wholesalers know what I mean).
Notice I said “Buy & Flip” not “Fix & Flip.” Well I did that very strategically because the fact is, I sell more trailers EXACTLY the way I bought them, than you could imagine.
Seriously. I won’t even pick up a broom to sweep most of the time. I prefer my quick cash, as quick as possible, with as little work and headache as possible.
It’s all about marketing, negotiating and buying right. And if you have the capital already, you have some good buying power to do this.
Buy it super low. Jack up the price. Resell as-is for massive cash windfall.
Don’t get me wrong, when the right deal calls for a “Fix & Flip” we go that route, but for me, it’s all about speed, baby!
“If you ain’t first, you’re last”
~ Ricky Bobby
Step 1 to Freedom
Friends, you just learned step 1 of becoming financially free.
I hope now you truly understand the importance of creating quick cash in your business.
Whether you are a little more strapped for cash and use strategies 1-3: Wholesaling, Co-Wholesaling, Double Close..
Or you have some capital saved up and want to find freedom even quicker by focusing on strategy #4: Buy & Flip (and sometimes Fix & Flip)…
The point is, our business needs cash to survive and to grow. And it’s the first step to creating a better life for you and your family.
Coming Up Next…
In the next lesson, I am going to introduce you to Step 2 of the 2-Step Cash Flow Creation System where things are going to get really interesting. After next lesson, you will really be able to see the big picture, and that financial freedom may actually be closer than you think.
Put together a marketing plan to start bringing in some motivated seller leads.
Make some low offers and negotiate plenty of time to close (wholesale to another buyer)
Network with other investors in the industry so you can look for co-wholesale opportunities. Think of your competition as your co-wholesalers.
Make a list of some possible friends or family who might be interested in funding one of these cheapo deals so you can Buy & Flip and share in the profits.