For years, mobile homes have been the butt of jokes—and definitely under the radar of most real estate investors. Yet for a small but growing group of savvy investors, they have become a tremendous asset. Written by one of the top professionals in the business, Mobile Home Wealth is an easy-to-understand book that can guide you to one of the most lucrative investments in real estate.
The author begins by presenting the basic principles and practices of real estate investing. He then applies these principles to mobile homes, covering every step of the investment process from choosing a home to financing the purchase, negotiating the price, improving the property, and selling or renting for maximum gains. Whether you are looking for a smart addition to your portfolio or searching for a new and different business, this book will forever change the way you view mobile homes.
Zalman Velvel has been a fulltime real estate investor since 1981. His family owns and operates five mobile home parks, as well as warehouses, offices, duplexes, mini-warehouses, and motels. Zalman holds the coveted CCIM designation, as well as being licensed as a real estate broker, mortgage broker, auctioneer, mobile home dealer, and former real estate appraiser. Zalman is also licensed as a real estate trainer, and has trained more than 5,000 people in real estate investing.
The Four Basic Profit Strategies
1. Flippers--Fast Cash
2. Keepers--Creating Your Own ATM Machine
3. L/Os--Fast Cash and Cash Flow
4. BBs--Being the Bank
Get the Deal Right--The Five Green Fs
5. Finding Deals--Find It
6. What’s It Worth?--Figure It
7. Writing Offers--Flag It
8. Check It Out--Fix It
9. Financing and No Money Down--Finance It
Reap Profits and Long-Term Wealth
10. Closing the Deal
11. Selling Like a Pro
12. Managing Your ATM and Building a Power Team
13. Protecting Your Assets
14. The Three Basic Principles of Long-Term Wealth
Conclusion--Your Roadmap to $100,000 Extra per Year
Shalom for Now
Appendix--Real Estate Forms
If you are seeking financial independence, you are holding it in your hands. If you are tired of living paycheck-to-paycheck, read on. If you are worried that the company you work for may “downsize” you onto the unemployment line, or you’re worried that your job may not even exist in the future, then you’ve come to the right place for a better alternative in the real estate field.
This book is written for people with little or no experience in real estate, or for those with a lifetime of experience but none with mobile homes. So if you never owned a piece of property, or if you are already a real estate investor and you want to add more strategies and another stream of income, you’ve found the right book. Mobile homes are an overlooked part of the real estate market and are usually hidden from the average investor. This book will take you by the hand and show you how to make a good, secure living--or a fortune (your choice)--by using proven success formulas.
Formulas for Success
Throughout this book you will find simple formulas that we will call formulas for success. When you follow them, you are practically guaranteed positive results. Formulas are the foundation of almost every profession. The problem is, many successful people don’t like to share their success formulas. Here, the formulas will be shared with you--and the good news is that they involve only simple math. The good news continues. These formulas can be applied to just about all forms of real estate. After you understand them, you can apply them to investing in single-family homes, duplexes, apartment buildings, warehouses, shopping centers, offices, retail stores, etc., as well as mobile homes.
Roadmap to $100,000 in Extra Money
You will receive, along with your formulas for success, a plan and a roadmap. After all, you don’t just want to read and learn--you want to go out and use what you have learned to improve your life and those of your loved ones, don’t you? You will be presented with a plan where you can earn an additional $100,000 per year, part-time, while you continue to work at your present career. Most people need to keep their current job while they create a new real estate investing career, so we are going to assume the same need for you. When you work the plan, and the plan works for you, and you feel secure, then you can decide whether you want to remain a part-time investor or quit your job and go full-time into affordable housing.
You will receive many real-life examples to follow and train on. There will be no “smoke and mirrors,” or “motivational rah rah” where you are told repeatedly, “If you think it, or imagine it, it will happen.” Yes, it helps to have a positive attitude, and you will be encouraged to have one because it will energize you for the success you want. However, along with a good attitude you must have focused actions and a plan. Without effort on your part, all the motivation in the world isn’t going to deliver the concrete results you want--more money in your pocket and more quality time for the important people in your life.
So What Exactly Is a Mobile Home?
Mobile homes are built in a factory and then transported and set in place for people to live in. The fancy term for them is manufactured housing. The beautiful home pictured here is a mobile home--it was built in a factory in two sections, and then each section was towed down the highway and fit together on site. (The garage that you see was added later.) However you refer to them, they are the most affordable form of housing. There is a huge demand for affordable housing, and there always will be. You are entering a field where you won’t have to worry about the Internet or a computer eliminating your career. You also don’t have to worry about a new single-family home or townhouse subdivision opening up down the street and under-selling you. They will not have more affordable housing than you.
To understand just how affordable mobile homes are, think about this: Recently the median-priced home sold in the United States was worth $225,000. That means there were just as many homes sold above $225,000 as there were below that number. In simple terms, the number is similar to the average price. The median price for a new mobile home (without land) was around $50,000. That is less than a quarter of the price! If you are impressed by that number, then you should be even more impressed when I show you how to buy good used mobile homes for $10,000 or less.
How Much Money Will You Need to Get Started?
Speaking of money, it would be nice if you could start out with some savings to invest, and good credit, but if you don’t, you won’t be left out. If you have no money to get started with and no credit, or even bad credit, don’t worry. Several tried-and-true “no money down” strategies have also been included to get you started, each of which I have personally used, so you don’t have to have any money or any credit to get started. That’s totally different from buying a franchise like McDonald’s or Burger King.
Mobile Homes Are a Proven Franchise, but Without the Fees
Investing in mobile homes has all the positive elements of a franchise. There are millions of customers out there who need affordable housing as much as or more than they need a Big Mac or a Whopper. This book will give you proven management and marketing techniques to ensure your success in finding your customers, meeting their needs, and getting paid a healthy profit for doing so. However, unlike if you were running a franchise, you won’t be paying huge upfront fees and no one will be siphoning off 10 percent or more of your income each month. Instead, you will be acquiring assets--land and buildings--that produce income, and you get to keep all of the profit. You also get to own the land and buildings, which appreciate in value--unlike tables and chairs and grills and fryers, which depreciate in value.
Let’s Get to Know Each Other
Perhaps, at this point, you are wondering about this author’s credibility? If you are, then good for you! Any time someone promises you important changes in your life, and wants money beforehand, you should ask about his qualifications. So let’s get to know one another.
I have been actively investing in real estate for more than twenty-five years, and in mobile homes in particular for more than fifteen years. I’ve made millions doing it, and I’m going to unlock the secrets so you can, too. I’m also going to be upfront and honest about some of the pitfalls with a view to protecting you from making mistakes that might take some of the wind out of your sails.
Another benefit to you is my more than ten years of experience working as a real estate trainer. Along the path of my investing career, I met the owner of one of the largest real estate seminar companies in the world, which was located in the same county where I live. We clicked immediately. As a result, I taught two courses for his company as an independent contractor. This book is based upon my years of experience teaching the curriculum of those two courses, which each cost $3,500 for three days of live training.
I have trained literally thousands of people, from just about every walk of life and every age group, from all around our great country, to invest in real estate, so you can be sure the strategies and techniques you’re going to receive actually work. Some strategies may work better than others in your area, so in that case you will just have to choose which are the most profitable and most interesting to you.
I have also acquired a CCIM designation, which is billed as the PhD of commercial real estate. Along with that designation, I have a real estate brokerage license, a mortgage broker license, and an auctioneer’s license. For many years, I also had a real estate appraisal license. My auctioneer’s license will prove to be very useful to you because I sold hundreds of properties at auction, which put me in contact with thousands of investors. During negotiations I learned the strategies of the most successful investors. These strategies are also included in this book.
OK. At this point, I have completed our introduction and we have gotten to know one another. I hope you’re not thinking, This Zalman is special, and I can never do what he does. It would not be accurate to believe that. Instead, you should think, If Zalman can do it, then so can I. Now, let’s talk briefly about the three basic ways people like to learn, because this book is geared toward all three.
The Three Ways People Learn
The most common way people learn is by watching an expertdo something, and then copying the expert, performing on their own and building confidence along the way. I have included lots of case histories with pictures to train you this way.
The second most common way to learn is to watch the expert and then study lots of facts and figures and manuals. This is for people who need to believe they must know every possible thing about a subject, so that if anything ever goes wrong in the future, they will know how to fix it. Please keep in mind that while it is a healthy goal to have as much information as possible before you start something new, many people who learn like this unfortunately develop “paralysis of analysis,” their minds so cluttered with facts that they lose sight of basic strategies. In other words, they wind up doing nothing because the goal of knowing everything that can possibly go wrong is not achievable. You will learn a different way of looking at problems here--that they are just another part of your investing process. You shouldn’t be afraid of them--when unexpected problems happen . . . it’s OK. When you learn how to overcome problems--and you will from this book--those problems will actually point the way to more strategies for making money. Then you will go out and try to find the same problems and create a good deal for yourself. You become a part of the solution and get paid handsomely for your effort!
The last type of student is nothing short of thrilling. I refer to them as Type 3s. Type 3s are people who just want a brief outline of what they need to do before jumping in and doing it. They learn while they are doing, and they don’t want to be bogged down with facts and figures. In other words, they like combining learning and making money with adrenaline. They’re the kind of people who like to jump into the deep end of the pool to learn how to swim. As a trainer, I enjoy these students, because I know they are going to use my training. But I also have to warn you that many times these students have entered my training carrying the mistakes they made before--when they jumped in without checking first to see if it was the right swimming pool for them to be in.
This book is going to help all three kinds of learners. You’re going to learn as I hold your hand and show you by example. Those of you who need to know as much as possible before getting involved are going to get formulas and facts but not so much data that you get bogged down and don’t do anything at all. And for those who like the adrenaline rush, you are going to get roadmaps to follow so you don’t jump into a pool that has no water in it and waste your time and energy trying to climb out.
You will get homework. What’s that? I can almost hear you groaning from here, Oh no, not homework!” Yes, homework. And you will be expected to do it because the homework you will be given here will make you real money. Plus, you’ll be encouraged to have fun while you’re doing it. Your grade will be what you add to your wallet and your balance sheet.
How the Book Is Set Up--A Logical Learning Process
There are five parts to this book, each of which builds on the previous one, filling in new skills that are vital yet simple. We will begin with a funny story called “The Adventure,” which describes the opportunity that led to my entry into the mobile home investment field.
Then, in Part One of the book, you will be introduced to the Four Basic Profit Strategies and each strategy’s Formula for Success. You will learn how to think and act like a successful mobile home investor, determining your profit before you even own a property.
In Part Two, you will learn how to Get The Deal Right using the Five Green Fs. You will be shown where to find your deals, how to figure out what they’re worth, how flag the property with an offer that fully protects you and negotiate the best deal for yourself, how to inspect the property fully so you will know what you have to fix--and then, if the deal is a go, where to find the financing to buy it.
In Part Three, you will learn how to Reap Your Profits and Long-Term Wealth. You will be shown how to close the deal, manage your mobile home ATM, and build a Power Team of professionals that will enable you to do it over and over again. You will be shown how to protect your assets and save on taxes. And you will also learn the Three Secrets of Long-Term Wealth so that you can provide for yourself and your loved ones for generations to come; this part is amusing but at the same time very powerful, and for many of you, it may be a whole new way of thinking.
In the Conclusion, you will be given your roadmap. This is a plan whereby you can earn an additional $100,000 per year, part-time, while you continue to work at your present career. After you follow the plan, you can decide whether to remain a part-time mobile home investor or to go full-time. The choice is yours.
I hope you are excited to begin, because I sure am.