The following content is taken from a YouTube live session we held in March 2020 for our community members, regarding the impact of the pandemic on our industry.
Everyone has been messaging us about how the corona virus pandemic will be affecting the mobile home industry, our business for the next few months.
We’re not economists or anything like that but we can see the trends. We’ve been doing a ton of research over the past week, and we just wanted to come to you guys and share with you what we think, what the research has been telling us, and how we can take advantage of this time right now to continue to push our businesses forward.
We just have to keep in mind that this pandemic, the quarantine, is temporary and where we believe the most opportunity for mobile home investors is going to be is during the recession.
Where there is fear and anxiety, there is also opportunity. We want to make sure that we’re here to serve. We’re not trying to take advantage of anyone.
But we also want to take advantage of the opportunity that is coming up. So, we don’t want to wait. We don’t want to pause and crumble and fold in fear. We want to continue to move forward and push towards our goals.
- Mobile home investing can survive a recession
- How the recession will affect mobile home sellers
- How the recession will affect mobile home buyers
- How the recession will affect mobile home investors
- Revenue Generating Activities: Control The Controllables
Mobile home investing can survive a recession
We’re headed into a recession. The economists are saying it, you see it all over. It’s just common sense. With the businesses being shut down for weeks, maybe even months at a time, people are gonna lose their jobs. And it’s just, that’s where we’re trending towards.
And to be honest, being completely transparent, this is our first time going through this as far as investing in a recession is concerned. But there is a recipe, we’ve seen, among the most successful businesses that last through a recession.
The business that last through recessions have 2 components. One is that they are low investment. And two is that they provide a necessity.
Mobile homes are low investment as far as real estate is concerned, and housing is a necessity. If you look at Maslow’s hierarchy of needs, shelter is at the very bottom. Affordable housing is only going to go up and demand. People are losing their jobs. Things are happening. They need a place to keep their family and shelter.
The affordable housing crisis has been going on with, or without, a recession. People are going to need food and shelter. If anything, the demand for affordable housing is going to go through the roof because a lot of people still can’t afford single family homes, even without a recession. Or they’re really just looking for a more affordable alternative.
If you guys are already investors and you guys are already learning, pat yourself on the back, because you’re going to be able to make an impact out here in the economy in a huge way. People are going to start to feel this, what’s going on in the economy. In the next couple of months, you’re going to start to see that demand is going to continue to rise.
How the recession will affect mobile home sellers
We always put our clients first. When we say our clients, we’re talking about our sellers and our buyers. Let’s start off with our sellers first and foremost.
There’s going to be a lot of people feeling the effects. Think about the type of individuals that live in mobile homes. A lot of their businesses are being affected or their workplaces are being affected by the pandemic.
So what it’s going to happen is a lot of people are going to say, ‘Man I need some cash right now. I need some type of income coming in.’ Who knows what they have going on in their personal life, whether it’s something involving their health, their finances, needing to make an adjustment on the move, maybe looking for a new opportunity with jobs etc.
They’re going to be looking for cash. And they’re going to be saying, ‘Man, I need to look at what type of assets I do have.’ A lot of people are going to be looking at their home. Some of them aren’t going to necessarily want to do that, but they’re going to have to take a look at their finances. And a lot of them are going to be looking at an opportunity to sell their home in exchange for some cash.
So we want to be there when that situation happens. A lot of them and are going to have to make some tough decisions on how their living situation is going to look to be able to support their family. Some people are going to have to downsize to a more affordable home as well.
This isn’t the time to take advantage of these individuals either. This is the time to help and serve them. Even though people need cash, you can trust and believe there’s going to be a lot of people who also understand the value of their home. Even in the market that we’re in right now.
How the recession will affect mobile home buyers
A lot of people are asking, ‘Are buyers still buying at a time like this?’
We actually just had a student, Lance, a couple of days ago he made $9200 in this pandemic . What he’s doing is he’s buying a home very low, maybe adjusting his profit margins a little bit, but he’s still selling low. And he’s able to create a $9200 profit in this market.
And he’s working on multiple other deals, so there’s still a lot of opportunity.
Get into the buyer’s mindset. Think about the buyers. Think about individuals right now that are looking at affordable housing. There’s going to be a lot of people in need because they’re going to feel the effects of the economy for the next 2 to 3 months.
We want to have homes under contract when that happens that demand goes up. People are going to need this. They’re going to need a place to put their family.
And it’s not a drain on their income. Lot Rent in mobile homes is about half of the amount of a lot of apartments in the area. So you could cut your rent down 50%! That’s huge for a lot of families, it’s going to help a lot of people.
How the recession will affect mobile home investors
We have to think like investors. We can’t ignore that. And we have to make sure we’re using our time wisely.
Start by getting into the investor mindset. This is the first thing we want to do. We have to eliminate the fear and we have to think about progressing. We have to know our ‘Why’ in all of this.
A lot of us have dealt with shortcomings in the past. A lot of us have dealt with obstacles in the past.
Think about where you are right now. And think about where you want to be in the next 12 months. If we’re doing anything that won’t get us closer to those goals, chances are we’re going to be where we at right now in 12 month’s time.
Right now, it’s too easy for the news and the fear of everything to freeze you up. And make you afraid to invest in yourself. The investor mindset is a positive mindset. We have to think about how we can take advantage of this opportunity. This is a chance to step up.
With all of the students that we work with, we always try to ask everyone their ‘Why’. Because this is an opportunity for you to go out there and serve and make a difference. As much as you possibly can. This is the time.
Making money is great. Yes you are absolutely right to keep your financial goals. You still have revenue goals and targets to achieve.
But behind that, it’s got to be something bigger than you. And like we said, this is the time to step up.
We’re still going to continue to progress forward. If you’re one of our students, that’s the expectation. Do not stunt your own growth. We’re going to still prevail.
And while you’re at home don’t be just consuming bad information and things in the media. Control the controllables.
Chances are you’re going to be piling your mind with a whole bunch of head trash. We just want to continue to pump our minds with good, positive things.
Even be associated with networks, specifically real estate investing networks, mobile home investing networks, families and so on. This is the perfect time where you can really come together, even if it’s through Zoom, even if it’s through a phone call.
Especially if you’re somebody who wants to sign JV contracts. We do have those too. A lot of people in our community are partnering on deals as we speak. This is the time to come together as one and not stunt our growth.
Revenue Generating Activities: Control The Controllables
We’re not super focused on just these next few weeks. We’re really looking a little bit further at the recession and how this is going to impact a lot of the families that we try to serve.
A lot of those offices, like the DMV and park manager’s office, are closed right now. So you as an investor need to be thinking about this. You need to be able to articulate what’s going on to the seller. Let them know you’re in a position to handle all this. Put them at ease.
If anything, get homes under contract. Because when everyone starts to go back to work, when things start to shift, you want to have inventory. You want to be able to say, ‘Hey, I’ve got 5 or 6 different opportunities to help these sellers that are still looking to sell.’ Whether they’re looking for $10,000 or looking to basically give the home away for free.
We’ve already seen through our students that motivation is already going through the roof with people in these uncertain times. People want to move closer to family, seniors aren’t feeling safe, so people are making some drastic decisions already.
So that’s why it’s really important to continue to put your message out there, to continue to market. Don’t crumble and fold because of all the fear in the media that’s going on. Continue to push forward.
Because even if they’re not calling you today, when things start to get back to normal you best believe that this market is going to only skyrocket.
We’re telling our students this is the time that you want to be testing. There’s going to be a lot of people out in the market right now that are looking for homes. Some of them might have cash, but there’s going to be a lot more people that want to put down a substantial amount as a down payment.
If you’re in the market right now, and you’re investing, you need to be taking the time to really test. Figure out what your buyers are saying, figure out what your buyers are going through in your market. Doing a lot of testing right now is going to help you analyze and just get a pulse on what the individuals are going through around you.
This is the time to learn. Not even just our program. Any of the programs out there. Go for it. We’re all stuck in the house right now. Anyway, this is the time to learn, don’t stunt your growth.
Obviously, people have new responsibilities now. Like teacher, employee, employer, cleaner, babysitter and all these other things now. Understandable. There’s a lot going on.
But give that time to yourself because even though the times are uncertain now, we can trend where things are headed. This is an investment in yourself that you can really get into and get started with right now. Before the rush starts.
There’s going to be a shift in the way we are showing these homes. We believe that vacant homes are going to be a lot easier to show right now. We need to keep our space. People are not going to be as open to walking through people’s homes.
Take your phone and do a video walk through to at least be able to show them that. It will at least get you a step closer to getting that sale done. Have the seller take a video walk through. If they’re really motivated, you guys can work with them as a team to do whatever it takes to get the job done.
So we can still transition through this time of the quarantine.
Obviously, it’s going to be a little bit harder to leave your house and head out into the field. Continue to do your marketing, do not fall off of that. Just find ways where you can get to people wherever they’re at. Even at their homes. Whether that’s through online marketing or any other strategy.
We’re saying use your 5 hours a week or whatever it is wisely. And to help you guys out one of our students in the Facebook community will be doing a marketing training tonight. And you’re going to be able to learn from the comfort of your home. We’re not letting it stop anything.
If you’re brand new>/b> take this time to learn. A lot of people are at home. A lot of people have extra time on their hands right now, even if it’s an extra 1 hour or 2 hours just from not having to commute to work each day. Take advantage of that time. Don’t blow that time off.
As entrepreneurs, there’s a certain level of fear that we have daily, especially if you’re doing this full-time. You don’t really know when your next check is going to come.
But all you know is, ‘Hey, I’m going to do everything in my power to make sure I’m taking control of all my controllables.’
If you guys are our students, you’ll know we really preach Revenue generating activities. Being able to look at where your time is going.
If some of the areas of the states are not completely locked down, you can still be doing street marketing.
You could still be networking, contacting park managers, contacting realtors, networking with your peers.
If you’re in the group, bring opportunities to the table that you need help on, or you’re possibly looking to just say, ‘Hey, if anybody’s looking to partner, if you need help, need boots on the ground, I’m able to be mobile for you.’
We’ve all learned from this situation that multiple streams of income are so important. If you’re only focused on one stream of income into your house, if that dries up, now you’re in crisis situations.
We want to be able to support our families regardless of what happens either way. That’s one of the big things we also wanted to bring to you.
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