All Forum Posts by: Jerry Lucker

Quote from @Koree Sargent:

Hi All, 

I'm new to BP and new to real estate investing. I'm want to build a rental portfolio of SFR & 2-4 Multifamily units by using BRRRR and/or buy and hold in the central Florida area, for now. Hoping to have my first property by the end of the year!

I'm looking to connect/network with others, to continue learning, and build working relationships to lead to a brighter future for my family and I. 

I look forward to connecting!

You may want to consider how I started over 20 years ago and am still doing today. I now own a nice portfolio of income producing real estate – virtually all of it purchased with cash by flipping mobile homes in mobile home parks. Why this unusual business model?

High profit margins! Consistently between 50% and 200%. Examples: 1) $8,000 total investment, sold for $24,000. 2) $20,000 total investment, sold for $40,000. 3) $60,000 total investment, sold for $95,000. 4) $100,000 total investment, sold for $160,000.

Most investors have no understanding of how or why this unique housing niche works the way it does. There are several unusual factors that make this possible. Mobile homes are considered personal property, not real estate. They are bought and sold quickly and easily - just like a car. Misconceptions and myths keep competition almost non-existent. The business model works the same way in 49 states (no mobiles in Hawaii).

I’m a big fan of real estate and BiggerPockets. I’m also a big fan of having a method to accumulate nice chunks of cash, rapidly, without borrowing (especially hard money).

May you have Great Fortune in your Endeavors!

One reply mentioned buying a mobile home in a park and renting it out. I can add a little to that. Most parks require the occupant to own the home. Buying a mobile home in a park can still be a great investment though. Because they're considered personal property, not real estate, they can offer investors some unique opportunities; the purchase prices are significantly lower than real estate investments, the profit margins can be much greater than most real estate deals, buying and selling is quick and easy (like a car), the comps/numbers are simple to figure accurately, most investors overlook mobile homes, you deal with the house only - not the land or infrastructure.

You just flip the mobile home. Because the occupants are leasing the land, they have to qualify to live in the park. They have to meet employment and credit standards as well as a background check. They can easily obtain financing so you can walk away with cash from the sale. Unlike renting, you don't have to worry about the rent every month, evictions, trashed units, maintenance, etc.

After more than two decades in the business, I now own a nice portfolio of income producing real estate - all of it purchased with the profits made from flipping mobile homes in parks :) 

Quote from @Fabian Alvarez:

Hey everyone! Joined the BP community recently. In general I’m working on build financial freedom, I’m currently listening to the podcast and reading HOLD. Also putting together a general plan, what I’m trying to achieve. Would love to connect with anyone in my area or anyone who thinks they could offer some insights to a newbie. Appreciate anyone’s time. Have a great day!

For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.



For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.

Quote from @Jon R.:

Hi all,

TLDR:  I'm 50 and want to scale quickly and be FI in five years. For my first MF, should I start small with a duplex or jump straight to large MF since I want to eventually get there anyway?  I.e., is there value of learning how duplexes work before going big?  Seem like completely different beasts.

Long version:
My wife and I have had a primary residence for many years, 401ks, the traditional plan. W2 employees, stumbled on BP, listened to podcasts, got my wife onboard, got a heloc, analysis paralysis. The usual. That said, I'll be 50 next year so time to get moving.

Goals:

1) FI in five years / ability to leave W2-life if we choose

2) Greatly reduce tax burden (mostly traditional 401k/IRA $ vs Roth)

3) Have a SCALABLE / manageable business. I don't want to build a haphazard, time-sucking, disjointed business.

4) Teach / show / prove to my teens the power of REI

5) Bonus goal: Have one or more properties appreciate significantly over the next 4-5 years. I say bonus because I know I can't control this.

Strategy:

I can't say I'm passionate about MF but it seems like the most logical way for me to scale up quickly given my age. 

Next major step for me is BPCon so any feedback/guidance before then is tremendously appreciated. 

Kindly,

Jon

For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.



For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.

Quote from @Matthew DeMichele:

Hi everyone,

I'm just starting out in my real estate journey and beginning to save up money for an initial down payment on my first rental property. Because I have one more year left in my undergraduate education, I'm not planning on buying the property this year. My goal is to continue saving for the next 1-2 years until I'm done with my degree and am fully ready. 

My question, then, is where is the best place to park my down payment savings for the next 1-2 years? 

Currently, I have about $5,000 sitting in a high-yield savings account at an interest rate of 2.55%. Ideally, I'd like this money to be working a little bit more for me during the next 1-2 years, while still having the ability to access it when I'm ready to buy a rental. I've considered moving this money into I Bonds, but am wondering if there are other places I should keep this money. 

Would love any and all suggestions. Thanks!

For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche. As an example for you, I turned a profit of $16,000 on a total initial investment of $8,000 in 6 weeks on a typical mobile home flip. I believe you need to put the money you have to work. Trying to save up from a regular income source and relying on a little interest to grow that is way too slow from my experience.



For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.

For more than 20 years I specialized in flipping mobile homes in parks. The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate. The vast majority of investors don't understand and are quick to dismiss the potential. The result is very little competition and unusually good numbers experienced in this unique niche.

@Mark Hudson

I’ve purchased and moved a lot of mobile homes. You have to know where it’s going, how much it will cost to move, reset, add new steps and skirting, what additionally it will take to make it salable, and what it will sell for (comps).

Start with the ARV, subtract cost of moving, fixing, and holding. Subtract a reasonable amount for your profit. What's left is what you can pay for the house.

I’ve made a good deal of money on movers. You might want to consider a straight flip instead of wholesaling. Just a thought. Do make sure the house has not been title eliminated. You can put a title back on but that takes time and money. It needs to be titled to be moved. Homes that are not on their own land probably haven’t been title eliminated.

@Amit Desai

If quick cash and above average profit margins attract your interest you might want to do what I’ve done for 20 years.

Buy a mobile home in a park, pretty it up, and flip it. I’ve done this many times with $50K or less. Profit margins anywhere from 50% to 200%. This just can’t be done with real estate. Mobiles in parks are not real estate, they’re personal property.

Don’t get me wrong, I love real estate. I’ve been able to buy a nice portfolio with the cash I’ve made flipping mobile homes :)

@Jasper Zimmerman

With the info you’ve provided, I would guess the total should be closer to half of what they’re telling you.

I rehab properties in an area that's very pricey. I don't know how bad the walls are damaged but the bid for paint is $1300.00 too much compared to what I pay.