Daniel and Amber are a couple of rockstar students from Southern California, and they’ve been doing some amazing things. Daniel is a firefighter and Amber is a teacher. Daniel works 70 hour weeks, while Amber works around 40 to 60 hours a week. They’ve got one son and another baby on the way.
They have no previous real estate experience, but they had looked into it before and got discouraged because the barrier for entry was huge. In California, to get a single family home you’re looking at around $300,000. So the low barrier for entry and high rate of return on mobile home investing is what attracted them to this niche.
When we asked them what their big ‘Why’ was Amber said it was their son. They want him to go to school without taking on all that student debt. It was also important to Amber that if they were to be making money off of people that it should be in some way that’s actually helping.
She said where they live they can see a lot of gentrification going on, so she can see that the affordable housing issue is going to be something that plays out for years. So mobile homes make sense in that way, and she hopes it will inspire their son who says he wants to go to school and learn how to build affordable green housing.
At the time that we met them they were sitting on 3 potential deals in the pipeline while working their day jobs. Then we followed up with them later on to get the breakdown of how they closed those 3 deals.
So, in this blog you’re going to learn about the details of those deals and how joining our Trailer Cash Academy accelerator program helped them out of a tight situation.
Deal #1 $20,000 to $30,000 profit potential
This was a 2003 model home in a really beautiful park. The seller was evicted, removed, and locked out of the house. The seller managed to get in contact with Daniel and wanted to sell the home for quite a high price. Daniel was hesitant as well because he initially couldn’t even tell if the seller had control of the home.
They finally agreed to $10,000 for the home with $1000 down payment. The seller transferred the title to Daniel so he could go ahead and do the paperwork. Then he had to have meeting with the park.
”This one was a challenge because the park’s attorney had said that it had already sold on a Lien sale and that the title would be transferred to the new buyer. And I was like, ‘I had the title transferred into my name 2 weeks ago.’ He said, ‘Oh, you did?’ So then they did have to deal with me.
And after negotiating with them basically we agreed to pay the back Lot Rent and attorney fees. So once that was done they gave me the keys and it was mine.”
Now this home sold 2 years ago for about $79,000, or somewhere around there. So at the most, even after fix up and everything, Daniel thinks the top he could sell it for would be about $30,000. And then if he wanted to do the whole entire fix up, clean it up, and then wholesale it, he could try and get an even higher price.
And also, anyone looking to buy a home in this particular mobile park is going to be happy even if he prices it somewhere closer to $50,000 because the brand-new homes in the park are selling from anywhere between $70,000 to $90,000.
So at that price the buyer can fix it up however they want because there’s enough of a discount in it for them.
Deal #2 $8000 wholesale fee in 20 days
This was Daniel and Amber’s first ever deal. In this deal again the seller was being evicted. The park wanted her out and she needed a fresh start. She was behind on taxes, behind on Lot Rent and they basically presented her with an offer.
“So we ended up selling it to somebody who wanted to move the property. They put it on private land and I think they’re going to sell them the house and the land together. So they got a great deal for the house. We got, basically, the split in between. And the seller, she was really happy.
All that debt that she had built up, which was quite a few thousand dollars, was now wiped out. And she still had a few thousand to start her life again. So she was happy.
Matter of fact, that Thanksgiving, I sent her a happy Thanksgiving thing and she said one back. So I try to keep in touch.”
On this deal Daniel and Amber got a buyer for the home for $20,000 while they had negotiated with the seller for $12,000. That amount was enough to cover the back Lot Rent and taxes. So they profited $8000 on their first wholesale deal.
“I remember when I had the deal, we had like an open house type thing and people were coming through. And I had my dad with me cause my Spanish is horrible and I knew I was going to need some translation.
And it happened right then. And we got in the car and I was like, ‘I can’t believe that just happened. I just sold a mobile home. This is weird.’ It’s like I was nervous, excited and almost didn’t know how to react. ‘Cause I was like, it can’t be this easy. This is unbelievable.”
Deal #3 $8000 wholesale fee in 30 days for a
triple wide home
On this particular deal Daniel and Amber ran into an issue timewise where they thought they had an entire month to move the home. And then all of a sudden, the seller tells them they’ve got less than 7 days. But they were still able to pull the deal off by being creative.
“With this triple wide, I got it for $12,000. And again, I asked her what she wanted and that’s what she said. And I was like, man, that sounds good to me. Went and looked at the house. It was in really good shape, had a brand-new AC furnace, and a water heater.
And yeah, there was some title issues. That’s what I was mostly having to deal with, getting that squared away. And I thought I had at least till the end of December to sell it. She was looking to put a site-built home where this house is sitting and I told her, ‘Yeah, I think I can get everything taken care of by Christmas.’
And this was just the last week she goes, ‘Christmas? that’s too late!’
So, I did have it on the market and I got a lot of interest in it, but what was holding it up was not having the title situation squared away.”
That’s when Daniel and Amber gave us a call saying, ‘Hey, this is what’s going on. I don’t know how to fix this. I’ve done everything I can with county. I’m waiting on them.’
And so we guided them on how to create an understanding between everyone involved that the buyers are willing to put a down payment, but they won’t be paying the rest until Dave got the title in his hands.
How Dave and Amber benefitted from the
When Dave and Amber first started with us, they were in it for the DIY program that we have. They were doing it themselves, but they decided to upgrade into the accelerator program.
We asked them why they decided to do that and what difference they noticed since joining the accelerator program.
“I knew I was going to hit roadblocks and needed somebody, a mentor, to bounce things off of and get some advice. And I knew that was going to be a key for me to succeed.
I was watching you guys’ videos and I really like the way you guys presented information. You guys come off really just like I can talk to you type of thing. So that’s why I did that. And it’s been fantastic.
I have been contacting you guys often. Whenever I hit a roadblock I give you guys a call and there’s been ideas that you’ve given me where I was like, ‘Oh man, I wouldn’t have ever thought of trying to solve this problem, that route.’ And it works.
So that’s been great because otherwise I think, if it was by myself, I’m not sure if I would have been able to get over that hurdle.
What’s exciting Daniel and Amber about this
journey so far
Daniel says the best part about this journey is having those interactions with buyers and sellers where you get to build rapport and just be a people person for a change. He says the toughest part has been the county bureaucracy to get some of the stuff that needs to be done in order to close the deal. That can be frustrating because you have little or no control over that.
Before we left them we asked them what their goals were for the rest of 2020.
”Well, we said two deals in 90 days but we’re looking at probably surpassing that by much more.
And so, we’re looking to build some capital then really getting into some fix and flips and basically having that passive income coming in each month. So that’s the ultimate goal.
And in 2020, we got another one coming. We got a baby coming too!”
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