You might not know this but we got scammed out of $30,000 on our first mobile home transaction. And then on our second deal we had $60,000 invested in our fix and flip and it actually took us over 15 months to make a return on that money.
So when we first started we were very cash strapped. It’s a very common mistake beginners make.
We had focused so much on creating passive income to get out of our jobs that we weren’t really focused on creating revenue and cash flow in our business so that it can really run on its own. And we had to then think of alternative ways to get our business off the ground.
What we’ve discovered from that is that you have to focus on revenue first. You have to focus on getting cash into your business first.
Chances are you’ve already taken some time to invest in yourself in a course or through YouTube university, and used a bunch of your own money on one deal.
What we’re saying is that you’ve got to focus on driving as much revenue in your business as possible before focusing so much on passive income deals and fix & flip opportunities. Let the business build enough revenue so you can take all of that stress away from yourself.
So what do you do when you are cash strapped and need a sure shot way to get some cash? In this blog post we want to introduce you to 4 awesome ways you guys can earn some money without investing a dime from your own pockets. These are strategies that you can use to build up cash in your business first, so that you can focus on those passive income investment opportunities after.
These are lower risk strategies for you so you don’t have that worry of having all your money tied up in one project and that creates a situation where you don’t have money to keep the business floating or invest in the next project.
And we are not perfect by any means. These are just our recommendations.
Strategy #1 Brokering
Brokering allows us as investors to simply broker the deal on behalf of the seller and make sure they walk away with as much as possible, regardless of if they’re trying to stay in the retail space or even the wholesale space.
When you’re dealing with free homes or homes under $5000 it can get really exhausting because you’re getting low-ball offer after low-ball offer. You’re really not getting anywhere fast with that. This allows you to open up that pool of sellers that you can work with a whole lot faster.
What we love about brokering is that you’re able to build up your pipeline, your inventory, and have a lot of consistent income coming in. To be honest, this business strategy alone can generate 6 figures a year if you focus on it.
And you’re going to be able to serve more people. We love being able to just serve people regardless of what they need. We want to be able to help them walk away with a smile.
This also allows you to position yourself as an expert. When buyers come to you looking for properties, you have a whole list, and it makes you look a lot more professional.
Strategy #2 Other people’s money (O.P.M)
At the beginning when we lost all that money we had to figure something out fast. So, what we did was we leveraged our credit RESPONSIBLY. We don’t advise you to use this strategy if you’re not responsible with money.
What we did is we were able to connect with a company that allowed us to leverage our credit by taking out 0% interest credit cards for either 12 to 18 months. And we were able to cash those out and use that money in our business.
We needed the money. We were finding all these opportunities, but because we had so much of our own money that we lost, we had to use this strategy in order to fund these deals, fund our operations and run our business.
If not, I don’t think we’d be where we’re at right now.
And when we’re talking about other people’s money you can also include joint ventures (JV) with other mobile home investors. The easiest way to do this is become part of a network, especially a community like the Trailer Cash Academy group that we’ve put together.
We have several students who’ve met in the community. They didn’t know each other before, but they saw each other’s engagement and they were able to build trust. They each saw that the other had knowledge and were committed to taking action. And they were able to do deals together by leveraging each other’s knowledge, expertise, and money.
So look for opportunities to work with other people and join networks to get past that hurdle of being cash strapped.
Strategy #3 Wholesaling
In this strategy you’re agreeing to a price with the seller and then you’re marketing it at a higher price, and once you sell it you take your fee.
We’re not going to go into too much detail about wholesaling. We’ve actually written a blog post which you can read about how we wholesale mobile homes and it includes 3 real case studies.
This is one of our favorite strategies as well. You’ll be able to do these deals with less than $500 bucks in your pocket. Do not sleep on it.
It’s a 6 figure standalone strategy in itself. In many of the student testimonials you guys see on our channel you’ll find that they’ve used this strategy to get their first few deals.
To add the cherry on top, you don’t have to make any repairs to these properties. We’ve had students sell properties even with it needing a lot of major repairs. They’re still able to wholesale it and make great deals.
Strategy #4 Creative financing
From time to time you will run into sellers where getting cashed out for their home just simply isn’t the priority for them.
They understand that they can sell it for cash at a discount, but they can get the full market price if they’re open to accepting payments – creative financing. They understand that they can also sell the home faster on payments versus waiting around for that for cash price.
There’s a lot of ways to be creative with financing. It really just depends on what the seller needs and how flexible they are with payments for the full price of their property.
You can either collect the cash flow in between, meaning that you collect cash flow from the buyer based on the price you quoted them and then pay the seller the cash flow they need based on the price they quoted you. Or you can even get paid out with the buyer’s deposit and just take a lump sum fee.
This is a great strategy to have in your back pocket. It’s not necessarily one of our most popular strategies, but we’ve used it. Our students are using it. And it’s just great to be able to help the seller without using your own money.
Want To Become a Successful Mobile Home Investor?
If this video and post have you interested in becoming a successful mobile home investor, you might want to check out our free case study.
It’s about a student of ours who made a $10,000 profit in 48 hours selling a used mobile home.
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