Just Bought 29 Homes for $58,000

they've gone through and tore out drywall and done a bunch of stuff okay you're making me nervous yeah I got a gun on myself I that's the part that's me my name is meet Kevin and when I first heard that it was possible to buy 29 homes a for just a $2,000 each the first thing I thought is what's the scam and so being that 27 year-old real estate broker who makes money investing in real estate I thought this is something I need to check out to help me understand the math the upsides and the downsides I met up with Brandon from the channel investment joy and my wife she said at home say Brandon why are you getting yourself into your nuts you can't even you're overloaded now with all these rentals I told her I said honey I'm gonna get 15k off this guy and I'm finally going to get us a garage because you know obviously we're in Ohio and there's snow everywhere I've never owned a garage in my life now initially things that seemed a very exciting but things got intense pretty quickly this one's open did you know that this is the evicted all flat screen this is the one the eviction squatter one if you pay attention to Brandon's hip here you could see he has his hand on his hip holster just in case he needs to pull a firearm on vagrants criminals thieves or who knows what could be inside of these homes that have now unexpectedly been getting broken into I've gone through and tore this one up pretty bad this is one I realize owning a mobile home park as a real estate investment in Central Ohio is definitely a different style of real estate investing from what I'm used to okay you're making me nervous yeah I got a gun on myself uh that's the part that's me see it's not actually the gun that was making me nervous who is the need for one that was making me nervous I teach in my real estate investing courses in my finance courses that you should invest in places that you feel comfortable in that you don't need a gun for this is what you have to deal with so they've probably tried to strip some of the wire now and stuff like that and so it ended up being pretty early on in my tour of Brandon's Park that I realized likes you better be prepared to be a full-time real estate investor if you want to get involved in a project like this or have somebody like Brandon to do it for or with you do you remember the trailer that we kick the people out of somebody's got in the doors yet again here and they have stole some wiring and stuff out of it now I'm about to show you some of the other units that we toured and we're also going to break down of the math behind a Brandon's investment into this mobile home park you'll see some of the ROI potential if in the meantime though you are curious about do-it-yourself property management personal finance how to become a better salesperson or how to invest in real estate where you can buy below market value real estate and run a stress-free life by placing longer term tenants check out those links below and use special coupon code Brandon 24 for discount off those courses of 24 percent you all right yeah I'm just angry of that yeah that would be too sorry that happened to you well I mean that's the problem with enforcing rules and things like that on people I mean they've got away with so much crime and so many things for such a long period of time that they just kind of expect that continue to get away with it now I'm coming in and trying to set set set stuff up to be better for the nice tenants you know I was in one of these ladies trailers down here was it last week and she's so nice takes care of her trailer everything she said you know she just doesn't understand why so the stuff happens here the trailers get damaged it's trash and stuff like that and realistically it costs her money out of her pocket every time somebody does this kind of crap to me as the trailer park owner right Cosette runs have to go up burns have to go up every types on this damage so I've got to come in with a plan to keep things efficient now what's this one I see this one's windows it's just it's been trashed we went in that's gonna be salvageable I have a significantly higher budget so we've got 7k on these trailers and then on something like that I've got about 15 to 20 K and if you you've we've talked about the budget to repair things in Ohio after I spend 12 to 15 K on this specific trailer it's going to be really really nice everything new and it essentially we're just keeping the shell in the frame now what happened with this one why is this one so damaged I'm actually both of these here angry tenants these are these are both angry tenants yeah I'm pretty sure it as are they going I mean the doors open passionately welcome to my world but like I said if nobody goes into these situations to try and fix things for the better nothing will happen this is where you can really begin to see a comparison in the lower end you might see some higher cash flow allow but apparently you're dealing with some additional risks and some additional work so you might be wondering are you getting rewarded additional cash flow or is that payment for the work you're putting in I don't think anybody's in here so this one's like some of the others it's just trashed I do believe it's fixable but it's a situate and you know I've got a great budget to strip everything out of here start over again Oh like I said I've got about 15 K maybe 20k for a property like this 15 to 20 you could redo this whole thing are you serious oh yeah I don't know I mean this case scenario we tear it outta here and I've been talking to some of those companies that do the tiny houses yeah and we're trying to figure out with the state of Ohio mobile home park compliance board if we can just bring in a tiny house and set it down on what these trailer Lots so that's kind of an option here if I totally screw up and fail on these individual trailers the goal is you know we've got the money for all these trailers haven't brought it and that's why these are sitting here they're waiting to be installed we wait you're ready this yes you didn't just take this out yes this is are coming in in this one's going in and I've got a budget to fix up the trailers because this one this one here because I'm getting them from another trailer park that's being they've evicted everybody a luxury developer with a local large municipality has gone in and they've evicted about a hundred people out of a trailer park so they can be bulldozed so these trailers they might as well be free Brandon where'd the staircase go it's not been installed yet it's sitting up oh wait did you bring this one in yeah this is one you brought in yes we just brought it in this is what a $2,000 trailer looks like Wow okay it's so what are you gonna do to it I I need to decide like I said the energy efficiency upgrades are the absolute first thing yeah well first things first I'm gonna go through and clean it what's also freezing yeah it's also freezing that it's ugly there's bad trim there's some hole that there's not any holes in the wall which that would be a killer now this is where Brandon talks about his childhood and how he grew up in properties that were in worse condition and and as a result he's come up with a rule like so my thing is I'll never rent a house out that's worse than what I grew up in that's my rule I will not live in any way I mean I will not put a tent in a situation I would not be willing to go into so we've got kind of crummy cabinets cata crime the countertops I'm gonna go through I'm gonna take a look figure out what's the most economically viable thing I mean how much you want to spend on each of these units I've got a budget of it amounts to I think 7 K / 7 k / I mean that's gonna get you what paint flooring I have reviewed countertops and cabinets - and you're gonna do the service though yeah we gotta work the furnace gonna run you Oh holes in the ground like there's no there's a hole right there yeah I don't know what the furnace is I am an insulation I don't get it because like if you do the insulate then no windows yeah there's a window there I promise somebody kicked it out or it fell out when it when they were moving the trailer weight so it's not there it's not there now oh it's sitting right here somewhere but the thing is you can get a discount when you go in and buy 30 furnaces but yeah I mean still like $1,000 to the insulation you have a seven thousand dollar budget now you got six left yeah then you got to do furnace that's gonna run you at least $1,200 and leave no way you're shaking your head oh my god I think I can get installed installed I can get a nice first install to cut and if we do all in one go and get him for probably about 80 bucks oh my gosh okay fine so so call it eight you're in now now you got installation of furnace you're at $1,800 now you got to fix the window or the floor paint the countertop the bathroom appliances 7k I can be outside and that's dirty yeah I can do it no way okay and I mean the whole floor is bouncing yeah but not every trailer is like this though I've got an average of 7 k / so I think I can get it done for seven but I've got some wiggle room I'm just worried because you said this was one of the new ones yeah but the older one that not the older this is a newer age-wise trailer but it's kind of dumpy I've got older ones sitting OH were there that are way nicer than this we go into somebody's um yeah let me see what I have and you know that the worst thing is or the craziest thing is I could I could put skirting on this set it up and I could ask for my five fifty a month I'd have 50 applications on it tomorrow well we we we are you're saying put skirting on this all week code rent it the way it is now in the application guarantee why because no there's no affordable housing in this area because they've run everybody out no one wants to be a landlord now it's common to hate the landlord but if you take a look here at what Brandon is doing and dealing with if anything he's the one providing an ethical service by providing affordable housing what do you mean your comments but people saying how many of them would love to be my tenant and they think my houses are great why don't you start talking about $500 for a two-bed one-bath I mean people put up a lot with a lot for that but I mean isn't this so much more risky than what you're used to doing with just the singles and the duplex oh yes of course but if you don't have any risk there's no reward set but I mean do you really think like your apartment deals are risky I'm told they're risky every day they at this point I've done so many of them I see their risk you I just I don't know people local people I've got some really wonderful investors that I have good relationships with and they say Brandon you should only be dealing with luxury apartments and luxury housing and I I don't really do any of that I've got some nice houses don't get me wrong I've got some gorgeous historic houses we spent tons of money on and they they're right they do not provide me one minute of stress they're great I've got good tenants in them they provide me very little stress but also the ROI Sarlo sure so I'm trying to get a balanced portfolio and a mixed portfolio so that I can get a reasonable return I can make my investors happy I can make myself happy with the cash flow and those kinds of opportunities are everywhere this is where I bring up comparing more expensive markets you know $150,000 us to this area and that's why the play that we'll do in these higher end markets is I'm just looking for deals that I could buy for save for 50 I put in 50 grand which to me is a basic cheap remodel it but then it's worth you know six or 625 so you're building in this 100 125 Kato wipe you know that's what I call buying these wedge deals it doesn't seem like that's the play out here no I mean people do that here it's just on my market yeah you know would you ever want to transition I think at some point that it I'll hand a lot of this stuff off to management once it is where I want it to be yeah and then I could have the ability to go in and you know I think that I might become more passionate about the lower ROI funner deals less stress but this point my life I feel like this is what I need to do more cash flow right yeah now what a lot of people hear ROI they think there is only one type of return on investment a quick primer there are three especially when it comes to real estate but pretty much when it comes to anything one is straight-up cashflow the positive money you're getting from either rent or dividends number two is appreciation like values going up or stock prices going up and three is a special kind of our wine that a lot of people forget about but that can oftentimes be the easiest especially when it comes to real estate buying real estate below market value when you combine these three things you actually get a total ROI I see a couple windows here broken that I'm not used to so I don't know if those were damaged in transport or they are just if they were damaged in transport or somebody came by and decided to break something because they're angry you know come in this is another one that we'll be renovating getting set up here very soon this is a nicer one yes I I think some guys in potential would be nicer yeah yeah no I agree what do you do with the wallpaper wallpaper comes off the dumpy wood paneling gets sealed up just probably painted yeah well I will probably be out here till one o'clock in the morning again don't tell me you're gonna do oil-based paint I might be just just to get it done is this how you keep your costs down yeah I mean I do that stuff once in a while like I said I'm not too proud to do anything at this point so I'm willing to go in there's exposed plumbing in here which that's a no-no so this painting wall paneling will probably all have to come out they did there I mean this the work quality here is terrible so whoever did this did whoever did some of the finishing work the trim work stuff like that they had no clue what they were doing so but from my perspective it's easily fixable I mean what would I use the bathroom you paint it you're gonna put down like a little only employ yeah I probably will even redo the tub in there cuz that just looks like garbage you mean take it out put a new one in or refinish it and probably take it out put any one that Wow yeah cuz I mean that tub the surround that's all it's just it's ugly then tear the paneling out move probably pre drywall I'm sure this one will run a little over the 7k but now maybe not honest I forget my guys in here and see what they'll do cuz they've done miraculous things for minimal cost so yeah the the guys that I got who's off of the trailer company that's being pushed out of town hey oh man are treating everything from bugs and stuff like that sure just in case they just put the cam there to make you feel ya know Brandon tells me the story of how he got some amazing deals from a fire insurance a claim where he got undamaged material for a fraction on the dollar it's amazing some of the things you can do when you buy in bulk I go in and I buy 25,000 square feet of carpet and we're not talking like cheap commercial carpet we're talking like Berbers like stuff they sell at Lowe's and menorahs for 350 a square foot my cost on it was about five cents now what about the rules I mean if you have to like really roof some if we have to reroute for them we were you do it that we just put a new roof on this building out here where the laundromats gonna go oh the larger ones go in this brace it was actually one 20 30 years ago and they're just not maintaining it and you fell apart and now we're trying to bring it back up and I have this will be your fourth laundry I have yeah I have 950 in that roof there 950 yes for all that metal yes it's not bad 350 it's like 350 in the middle and then 600 in labor now it's time to talk numbers one day out of the blue a guy calls me and says Brandon I've got a whole bunch of money to deploy he messages me he says I've got seven figures to spend on an investment and I told him no that was like at 8:00 p.m. at night he sent me those messages the next morning at my office 10 o'clock my buddy Sean that owns this trailer park said Brandon I'm selling the trailer park I said alright how much do you want 40 because here you are struggling trying to figure out how how would I even deploy this guy's money if he gave it because the biggest deal that I've ever done before was like a $60,000 house I mean I've never done anything big and this is in the threes yes well 325 he initially asked for 400 we talked him down to 325 he's carrying back $100,000 your buddy down yes my buddy damn buddy my investors my buddy - he's a really nice guy he's cool you're just buddies with everybody yeah so um okay so what's okay so you bought it for 325 I I got a no though huh you're gonna be benefitting from some of the cash flow from this right so you're you're an investor a partner in this yes now my favorite question how much out of pocket are you to be a part of this deal negative 15 you got wait I told my part I told the partner that I wanted 15k for the opportunity because I could I told him you know potentially I can sharp this deal to other investors so we know that Brandon is partnering with an investor who put up the capital of essentially $750,000 possibly even more if needed well the expectation is that each of these coaches or mobile homes will be able to rent for $500 now there are already 20 coaches here Brennan just bought an additional 29 for $2,000 apiece which means we have a total of 49 trailers 49 times $500 is twenty four thousand five hundred dollars now Brandon's investor put the money up and paid Brandon to find the deal but Brandon didn't put up any money himself however Brandon I believe is a 50% partner on this deal which with twenty four thousand five hundred dollars of gross cash flow we could probably expect a net cash flow of somewhere around $16,000 which divided by two might leave a net cash flow of $8,000 for Brandon even though he puts zero money into the deal just his expertise and his work and efforts and now you might be wondering how does that still make sense for the investor if he's giving away half of his return home watch this return wrath if the investor makes that eight thousand dollars times 12 that's 96 thousand dollars per year divided by the investors $750,000 the investor is yielding over twelve point eight percent on their money for doing virtually nothing because remember Brandon's doing all the work okay so I mean I don't know nervous about this this is this is not something I would do yeah come back in a year and let's see how it's going I think I will happen I mean I I don't doubt your tenacity in your enthusiasm but I also don't know how I feel about you know painting the wood paneling with oil-based paints myself in the middle of the night when when you know windows are getting broken into and you're you know you're walking around with your hand on your hip they day in life I've got yeah I've got good life insurance my ladder I I still cannot believe how simple that was like I feel like we should be sponsors like you platters want to get a hold of us because it was they do a parole lengthy but it's limited to like a thousand dollars in California oh gosh dang it all right so yeah but I've got life insurance I'll probably go up to even bigger policies well and now what's gonna happen is ladders gonna see this and rather than sponsoring you they're going to raise your premium I hope I'm still alive Kevin Kevin will be out here if not add me as a beneficiary place right next to your wife your children [Music] [Applause] you [Music]

Channel: Meet Kevin

Views: 595,872

Keywords: investing, real estate, mobile home park, home, housing, tenants, eviction, rental, money in real estate, return in real estate, making money with real estate

Id: UU9-EUC2y0A

Length: 22min 24sec (1344 seconds)

Published: Mon Nov 18 2019