Dave is a musician and Toi homeschools their kids. They had no real estate experience whatsoever prior to joining the Trailer Cash Academy community.
In June 2019 Dave got a little more serious about his interest in real estate, so he started researching and studying. It was around that time that he discovered one of our videos.
He said it was an eye opener because when you think about mobile homes, there’s a certain stigma to it. But then the more he got into our content he realized this is all false. The people who live in mobile home communities are just like other people who live in single-family residence communities.
It took him about a week to binge watch all of our videos and then he pitched the idea to Toi. He ran it by her, they ran the numbers and agreed that it was worth a shot. Especially since the mobile home market where they live is so accessible.
Dave says there was literally no competition in their area at the time. So there was that, plus the fact that you don’t need much money to get started, and you get to serve a people in need. They were all-in.
When we got on a call with them they had just locked down their first deal using creative financing, $6000 with no repair costs, and they were able to get $500 a month in passive income for the next 36 months. So in this blog we’re going to talk a bit more about that deal and what they have in mind for their new business going forward.
Getting ‘this close’ and missing out is still a win for you
A lot of people see our students and getting that first deal and it makes it seem like it was just easy. But starting something new, trying to become more in order to have more, will test your grit and mindset. At the end of the day it’s mindset over everything.
So, like Dave and Toi told us, finding that first deal isn’t always that easy, but does eventually happen.
“It wasn’t that easy. We definitely went through some deals that we thought we had, but for whatever reason they fell through.
We’d always be ‘this close.’ It always was that. So that was an indication that something was working.
If we’re always ‘this close’, then you know eventually it’s going to actually happen. It’s going to come. So we just kept the faith and we were like, ‘It’s going to happen. We’ve just got to keep grinding and keep crushing.’”
“I think the great thing for us is that every time we were ‘this close’ our mindsets told us we’re on the right track. And then we kept evaluating what our goal actually was because success means different things to different people.”
“And even though we wanted to see that sign on the dotted line as the ultimate success, we began to see smaller pieces as success as we moved towards that final ‘We got it.’”
We love that. We love the level headedness that they have about this journey.
It’s about constantly building momentum on the way to actually getting that big check. When we’re just starting out, we want to see those results and that signature on a dotted line, thinking that’s what equals success.
But there are those small wins that’s going to build momentum to keep you going until you actually get that check in.
The happiness really is in serving the client and putting a smile on the client’s face. The check is just a reward for the value you bring to the marketplace.
So the way to do it is to not take it as a failure when you get ‘this close’ and it doesn’t happen. Because the truth is you probably weren’t that close last week.
Why building rapport can save you thousands of dollars
The first deal Dave & Toi secured was a 3 bedroom 2 bath. Double-wide in a mobile home park. The seller wasn’t living in the home at the time because they had already bought another place. But they were still paying the Lot Rent on this home. That’s why they wanted to get it off their hands.
Initially they weren’t very motivated. And the deal took a while to happen. Dave and Toi first met the seller in October that year. And they were asking for $30,000, which was way out of Dave and Toi’s budget. Dve & Toi asked if they could put a down payment and pay the rest but the seller wasn’t interested in that idea.
From October until November Dave and Toi kept in contact with them and were naturally building rapport. The seller reduced the asking price to $18,000 but wasn’t ready to accept down payment. And then towards the middle of November the seller proposed a price of $15,000. The home needed no repairs, just a little bit of clean up and it was move in ready.
“So I asked her again. I said, ‘From our previous conversation, I really don’t have that in cash. But if I could give you a down payment what’s the lowest number that I could give as far as the down payment?’ And she told me $6000.
I said, ‘Okay, I think I can come up with $6000 and we can go ahead on and make this happen within 2 weeks. But in the meantime, would you allow me to please market the home? I want to try to sell it before I purchase it.’
And her and her husband were both very grateful to me.They gave me the key and said, ‘Oh no problem. We understand, do what you want to do.’”
Motivation is when someone needs to sell their home in 30 days or less. Sometimes they might even need a little bit more time. And it’s about not pressuring the seller while building that rapport. So, when the time is right, they at least have a reliable person, a reliable source, they can rely on to get the deal done
The money is in the follow-up. Dave and Toi’s openness and care when it came to listening to the seller’s story and building trust turned the unmotivated seller into a motivated seller in about 30 days.
Meanwhile Dave and Toi had multiple buyers in line waiting for a home. There was one particular buyer who stuck in their minds because of the situation they were going through.
“She had a deadline, a time that she had to leave from her previous residence.
And she was going through a lot of hardship because she almost bought another home from another seller. She was very close to signing the paperwork, but come to find out they were marketing the home to other people and they wound up selling that home to someone else. So she was in a desperate mode.
When I showed her the home she just kept emailing me, kept texting me, ‘Please don’t sell the house. Please don’t sell the house. I really would love to have this house.’ And at the same time we’re getting a whole bunch of other calls from buyers.
But I had her in my mind saying, ‘Please don’t sell this home.’ So she was always there. And that was a real motivation factor for me to just make this happen for her. The rest is history.”
So, November 14th was when they gave the seller $6000 and got the title, with the agreement to pay $15,000 in total. And then November 22nd was when they sold the home to the buyer for $25,800, with $7000 cash down payment and $500 cash flow over 36 months.
There are so many great things we can learn from this deal guys. Being able to help another family get into a home when they’re in need is a huge motivating factor, more than the money really. And then being honest about your business, being transparent about your intention to help, and asking permission are things that go a long way when you’re trying to secure these deals.
So with that deal done and under their belt Dave and Toi tell us that their long term goal is to get at least one house a month. And they’re really happy with how they can help people and improve their lifestyle at the same time.
That mindset of serving others and putting people first is where it’s at guys. We can get caught up with the numbers like $5000, $50,000 and $500,000 but we forget what just $500 extra a month in passive income can do to really impact our lives. And the way we get to this type of cash flow is going out there and seeing who we can help get into one of these mobile homes.
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