All Forum Posts by: David Oldenburg

@Josh July  Looking forward to meeting you!

David Oldenburg

@James G. I really like Grant Cardone, but he is giving people terrible advice to not buy a home. I will start with my home. I bought my home in 1996 for $200K. I financed it at 7.5% on a 30-year fixed rate, because that's where rates were at the time. My payment was $1,498 PITI. At the time, I could rent the same house for about $1,300 (I realize this varies on area and price). I later did a no-fee refi down to 4.5%, dropping my PITI payment to $1,118. I paid that payment and added to it periodically and paid it off 2 years ago.

Fast-Forward-  I have no rent and no house payment.  The home has appreciated from $200K to $575K and it's owned free and clear.  However, the REAL awesome part of this, is what we did 2 years ago.  Once we paid off the home, we did a line of credit for $200K on the home.  I have been loaning that money to other flippers on low loan-to-value deals, with people I know and trust and putting 1st mortgages on those homes. I charge 10% and 3 points, making me over $20K per year on my home.  So, instead of making a mortgage payment, my home is paying me $20K + per year!  

Let's say that I had taken Grant's advice and 20 years ago I would have decided to rent my home and not buy it.  Today, I would be paying $2,700 per month in rent, and I would have already paid over $300K in rent.  I would have zero equity and would be receiving zero income per month.  I would also deal with yearly increases to my rent, and would have ever-higher debt and payments, as I get older and retire.  

Again, I like Grant, but he is wrong.  I have given this advice to many people over the years, and many of them are well on there way to paying off their homes and being in the same situation I am in.  Even if you buy a home and it never goes up in value, you still pay it off, have no rent, and can use the equity for whatever you want.  Just my opinion...

@Kevin Phu @Benjamin Truitt  I get a lot of people who ask me about how I get my deals.  I do almost no advertising at all. I do a lot of networking with wholesalers, and agents, and I just tell them I am an investor, I am looking for deals, and I pay referral fees.  This mobile home deal came from a wholesaler I know who I have done other deals with as well.  He also got the deal for free, as it was a referral from someone he had helped in the past.  A lot of people spend a lot of money on direct mail and other forms of marketing, but I would rather spend my time talking to people and building relationships.  

@Dave Peterson  Hi, I am not allowed to promote myself on any of the threads, so please send a private message and I will be glad to give you the information!

@Carlos Zapata  I do have some pics, and we are putting in flooring next week, so I will post some at that time!  It's a nice place, considering the pricing, and the profit.  It's also a nice park, well-maintained and managed.  Like most of my deals, the seller needed cash quickly and just wanted out.  She could have sold for a lot more, and I even told her she could get a lot more, but she still wanted the money and a quick sale.  

@Daniel Derrick  California does have higher prices than many other States, but there are some good low-priced deals in certain areas, and also in some mobile home parks.  It's funny that I flip here and spend usually $200K to $300K per house to make $50K, and I only spent $23K to make what I believe will be $50K on this one!  It just goes to show that if you are looking for the deals, you will find them. Congrats on your flip!

@Jacob Wathen  Yes, the Sacramento market is full of opportunity at almost every level of investing, from the mobile homes to higher priced homes.  You also do not need money, or at least a lot of money to participate.  I partnered on 3 of the flips I did in 2017, with brand new flippers who had no money.  They found the deal, I put up all the money and we split the profit 50/50.  I paid out over $100,000 to these people in profits on those flips, and they put little to no money out of their pockets.  I am speaking this Tuesday, January 9th in my local area to my real estate investing group about some of these deals.  It's too bad you are not in the area!

@Aron D.  Congrats on your mobile home success!  I am a broker as well, so I list all my own homes, but I do pay a commission to the other agent who brings the buyer.  In my area, most of the mobile homes sell for cash in a less than 2 weeks.  The park I am flipping in right now has 3 recent sold comps, and they all sold in under 5 days.  Your $26K profit on a $66K investment was really good! 

@Marc Faulkner This mobile home is in Sacramento, CA...  I will be glad to post the actual numbers once it is sold.  

I haven't posted in a while, as I have been busy running my investing group and doing deals, but I wanted to start sharing more.  I am a flipper, wholesaler, and wholetailer, but have never flipped a mobile home.  Why?  I have never thought flipping a mobile home would be worth my time.  That all changed a few weeks ago, when I was asked to evaluate and possibly consider a mobile home.

The seller owned this property free and clear and it is in a park.  The seller was behind a few months on park space payments and the seller also owed the park some other money.  They filed for repossession, and I was called in because the seller wanted to get out quickly and move on.  This is a double-wide 1510 sq ft 4/2 manufactured home built in 2003.  It needs flooring, paint and a few minor repairs.  It comps at about $80K if looking decent.  The seller wanted $50K, but after 2 weeks of back and forth, the seller agreed to $23,500.  

We are almost done with the work after about 10 days and the home is going to be listed at just over $80K, making this a $50K profit, actually about $45K after re commissions and closing costs!  Not a bad deal...a 200% return in just a few weeks.  So, apparently you can make some money flipping mobile homes!  Maybe I need to change my marketing strategy :-).