While attending the Creative Real Estate Online Convention in Las Vegas this past March, I had the luck of running into a friend I hadn’t seen in many years. Ben Moye and I were introduced approximately ten years ago in middle Georgia. Ben is in the commercial sign business. I contacted his firm to build a sign for one of my business locations.
After our business association, we seemed to part ways, and I hadn’t seen or heard from Ben in at least six or seven years. At the convention, Ben walks up and taps me on the shoulder. I was amazed to see him there as I had no idea he had any interest in real estate investing. He had also made some “for sale” signs for me in the past, but no mention of his interest in real estate.
After a few minutes of conversation, we decided to keep in touch and share the info offered at the convention. As the first day ended, Ben and I decided to have dinner and continued our conversation about our real estate interests. He was primarily in the single family rental market, and I was into the mobile homes and mobile home parks arena.
We shared a few “war stories” about bad business decisions, terrible tenants, investments, etc. By the end of the second day, we were both so excited about everything we were learning, we decided to consider doing a few things as partners.
After returning to Georgia, I called Ben and we decided to meet and look at some paper ads, make a few calls to our “network,” etc. Through our network, we suddenly found that everything was for sale.
After some serious conversations, I talked Ben into looking into mobile home parks. A few days later, Ben called me and wanted to look at a mobile home park in a nearby town. There was an ad in the classified section of the local paper.
We didn’t buy the home, but looked at several the park owner and others had for sale. Ben went back a few weeks later and decided to buy three mobile homes. He was so excited, he had to call me to see if I thought he got a good deal.
I took the next day off and went with him to see his new “investment vehicle.” Not bad at all. We went back by the park office, and fortunately, the owner was there. I was introduced and the “big fun” really started. Within five minutes, Ben and the owner were talking about what would be best for the homes, park, etc. I slipped into the conversation and asked a few questions.
Then the fatal question: “Do you have any more mobile homes for sale?” I asked. For a few seconds, there was dead silence. Ben’s mouth was hanging open with amazement when the seller said, “Sure! about forty more.” I almost laughed out loud.
Over the next week, Ben and I had agreed to buy twenty-six mobile homes in this park, all rented. When the dust settled, we had bought the twenty-six mobile homes without using one dime of our own money.
I suggested to Ben we take ten of the titles to the local bank, instruct (that means tell him exactly what to do) the loan officer to prepare the paperwork, and tell him we will be back in a few days to pick up the check.
We decided to invite the guy to lunch. By the end of the conversation, the loan officer (who picked up the tab) knew he wouldn’t get our business if he asked us to do anything but approve the paperwork. With the ten mobile home titles, we were able to finance 100% of all twenty-six units. PLUS over $12,000 cash went into “Hip National.”
That is sixteen mobile homes free and clear (approximately $6,000 each), and $12,000 in cash with a positive cash flow of over $6,000 per month! This is just some of what Terry Vaughan and I talked about in Orlando last year. I can hardly wait for the three-day seminar with Terry and Ed Garcia [How to Get Lenders Fighting to Give You Money]. Thanks guys!
Ben and I have looked at five or six parks and decided to make offers on several. Within a few weeks, we had a contract on ten acres with nine mobile homes in place. Great potential for new expansion of at least twelve additional lots. Not only did we get approved for 100% financing, we also secured a loan (with above lender) for all of the additional improvements. Our only investment–time!
This should show everyone the power of networking used with creative financing. I have been to many seminars in my life, but the constant talk of “networking” here at CRE Online has been tried and tested. It works!