Investing in Mobile Home Parks with Ryan Narus | The Real Estate Investing Club #43

Investing in Mobile Home Parks with Ryan Narus | The Real Estate Investing Club #43

Unknown Speaker 0:02
Hello and welcome to another episode of The Real Estate Investing club. Place investors go to learn tips, tricks and stories from other investors in the field. For a introduce today’s guests, I have three short housekeeping items to cover. First, if you like our content The best way to support us simply to like, subscribe, comment or share this episode with your friends and family. Second, we are active investors ourselves and are always on the lookout for mobile home RV mixed use commercial and multifamily properties in essays with a population of 100,000 or more. So if you are also an active investor, and have something you think we may be interested in, we would love to take a look. Send us the details of the real estate investing third, if you are a new investor, like to learn how to get started or scale your real estate investing business, go to www dot real estate investing and check out our course. So without further

Unknown Speaker 1:00
ado, let’s dive right in. We have a very special guest with us today. So buckle up, grab your pen and paper and enjoy the ride.

Unknown Speaker 1:13
Oh, right. We are live. Brian, thank you very much for joining us How you doing today? Awesome. Thanks for having me. Absolutely. I always start out every episode I like to hear from the guests. Tell us where you’re from, and how you got started in real estate in the first place. Sure, I’m from Charlotte, North Carolina and I got started in real estate because I absolutely hated being lied to about corporate America.

Unknown Speaker 1:41
Turns out that work hard in school, you go to a good college and then you’ll graduate from a good college and then you’ll have a good job and then you work really hard for that good job and then they promote you and then you retire on the beach somewhere was a lie. Turns out what that is, is dress yourself out during high school.

Unknown Speaker 2:00
And then stress yourself out some more during college and then stress yourself out some more while you’re getting your master’s degree and then stress yourself out at a job that you utterly hate. And then look at your bank account and go, Oh my gosh, I have more student loan debt than cash. Yeah, that was awful. And I long story short, I was like, I’m I need to start my own business. What is it going to be in? And so I looked at over 100 businesses and eventually settled on real estate and more specifically mobile home parks. So that’s what I do. Absolutely. I that is a story that I relate to very well. So yeah, you went through the whole school thing you got you got kind of disenfranchised or disillusioned, I suppose and, and you jumped into real estate after that sound, right? Yeah, I was dumb enough to double down on school. Hey, maybe one round of it wasn’t enough. Let’s go back. The master’s degree. Yes, I did half of that. I went into the master’s program.

Unknown Speaker 3:00
And then and then it bounced after that. I was like, can’t do it. I just can’t do it.

Unknown Speaker 3:05
Awesome. I love it. Well, so awesome. So tell us where, you know, you mentioned, you’re in mobile home parks right now, which is I’m really excited about because this is what me and my partner is focused on as well. So we’re gonna jump into that in a second. But first, tell us a little bit about your group and what you guys do today.

Unknown Speaker 3:22
Yeah, so we have been at it for five years. It’s myself and my business partner, Ian tutor. And we’ve purchased 14 mobile home parks. Over the last five years, it’s roughly 1400 pads, we’ve sold out of a few so we can have our own capital, and not have to rely on raising a fund and worrying about a pref structure or yada, yada, yada. And so we basically have one of our friends. It’s

Unknown Speaker 3:47
been it’s three of us, and that’s it. And it’s wonderful because I literally work from home. And I yeah, I mean, we’ve got 300 contracts right now. We’ve bought two in the middle of

Unknown Speaker 4:00
a pandemic. So Wow, we bought for last year. Yeah, I mean, we’re growing. And again, I think the the most fun part about what I do is I don’t have to worry about investors. And I don’t have that pressure of having to allocate capital. And basically my strategy is, by really rough stuff. I mean, I definitely buy nicer stuff too. But my ideal property is something that I buy for absolute pennies on the dollar that just needs a big major overhaul, and then turnover the bad 10 minutes bringing some good tenants dump capital into it and make it a really nice property and refinance it and move on. And I’ve got to say there is nothing gay, or not many things that make me happier than looking at pictures of properties I buy before and after, because let me tell you something if you weren’t paying attention to the news, there’s an affordable housing crisis in this country.

Unknown Speaker 5:00
And politicians would love to spew the rhetoric about it, and love to also not do anything about it and to roll into a property where you have drugs and crime or just mass vacancy and issues with infrastructure and homes and yada yada yada and to be able to go in and pretty it up, make it safe, make it clean, bring in people who really deserve it. That is a wonderful thing to spend my time doing is to help people find good affordable housing. And not only that we started a partial college scholarship for the kiddos and in our communities. We finally wrote our first check for that this year, which was really exciting. We also partner with pay lease so we can help our residents build their credit while they pay their rent. And we do a ton of other things. Right now. We’re working with

Unknown Speaker 5:55
a lunch program since kids aren’t in school schools right now. I mean,

Unknown Speaker 6:00
I want to help preserve and enhance affordable housing and help my residence at the same time. So it is just an absolute. It just it checks every box. I mean, we make good money, we have a lot of fun and we help people. I just I’m absolutely passionate about what I do. I love it. I love it. I mean, you kind of resonates with me everything you just said. That kind of leads me into the first question that I wanted to ask is

Unknown Speaker 6:27
you’ve touched on it a little bit, but why? I mean, there’s real estate is a huge field. There’s so many different asset classes to jump into. And why did you decide to jump into mobile home parks? Do you guys do RV parks as well? Or is it just mobile home? I have had about 50 plus or minus RV pads out of my 1400 so it’s sprinkled in there. I mean, it’s kind of like park on homes and it’s you’re not gonna you can’t avoid them. Yeah, so we’ve got like a cherry on top RV.

Unknown Speaker 7:00
But for the most part, we’re mobile home park, guys. Gotcha. So So kind of why did you decide on that asset class? What kind of draw drew you to it? Sure. Well, first off, it was literally years of introspection and asking myself some really brutal questions about who I was where I was at what I’m good at what I’m not good at. And that sucked a lot, having to be really honest with with about who I am and what I’m not. And after I allowed my ego to just take that absolute bloodbath of a beating, I had, you know, like, kind of like a come to Jesus moment about who I am and where I could go and what I could do. And through that whole process of self discovery, I realized real estate is something I was really passionate about. And then it was just a question of what in real estate and I just kind of realized because I can’t remember which book it was that I was reading that but they were the author basically argued, you should think back to discover who you are.

Unknown Speaker 8:00
You should think back to what you did as a kid without anybody having to ask you to do it. And for me, that was tutoring underprivileged kids.

Unknown Speaker 8:08
And I found myself doing that in adulthood too. Even again, no one asked me to do that it was just something I was naturally

Unknown Speaker 8:16
inclined to go and do. And so while I was thinking about Okay, I definitely want to do real estate. And I definitely enjoy educating kids that didn’t have the advantages I had growing up. I went it’s got to be affordable housing. So then you zoom in no fordable housing and and then you find mobile home parks and I’m a former car salesmen. And mobile homes are very similar to cars in a lot of regards. They both have titles, you have to have a license to sell them. I mean, it’s there’s so many similarities that if fit my skill set that I had already developed in my 20s. It fit my passions, my skill sets, I mean, it was just a direct bull’s eye hit and I’m proud to say this is what I

Unknown Speaker 9:00
I am meant to do this is who I am supposed to be when I grow up awesome well hey man, I’m glad you found your you found your path. You know, it sounds like you guys are really doing well on it. So I want to jump a little bit further into you know the nuts and bolts of your business how you run it

Unknown Speaker 9:17
so you know real estate that all starts you know, it’s a continuum, you buy it, you flip it, you fix it up, you stabilize it, but it starts with finding the property. So kind of tell us how do you guys go about finding your deals? And what’s the most effective way you found to do that? Yeah, we do. We do it all we’ve done mailers, we do cold calls, we do outreach to brokers, we network, check loop net, we do everything but the truth of the matter is

Unknown Speaker 9:46
I’m able to find deals in front of my face because I can underwrite better and I can underwrite better because I’m on my properties. And it really bugs me when people want to be armchair property owners.

Unknown Speaker 10:00
I taught myself Spanish. I literally can speak Spanish now because I realized that would give me a competitive advantage. So I spend time talking to my residents. I even spent 14 months every other week living in one of my communities so I could consume the product that I was selling to my residents and from being on the front lines from not being afraid to have my life threatened, which I talked about in my podcasts, too. Literally, like two weeks ago, we had a racist stripper stay, she was going to burn her trailer down.

Unknown Speaker 10:34
I could talk for hours about ridiculous things that I’ve seen. But through that process of being my own operator, it’s allowed me to get started with no with literally negative money. I mean, I had more student loan debt than I had cash. So I realized I had to be a property manager to be able to go full time. And through that process, I got very efficient and operating and because I got really efficient

Unknown Speaker 11:00
And operating that made me a really efficient underwriter and there are several deals in my portfolio that I could point to and go Yep, everyone knew about that and talked about that and no one wanted to buy that and I bought it now it’s worth two three times what I paid for it because I now have the skill to like pop the hood so to speak and have a look under the engine and be like oh, this is mostly cosmetic stuff or you know what if I replace the transmission this thing will last you know X amount of time more and and I can now see value where others can’t because I was willing to do what others were willing to do. I love it. I love it. So I’m gonna follow that track a little bit further. Here. You said you guys you bring in the leads, cold calling, mailing, etc, etc. So basically the standard things you kind of assumed you guys use the digital marketing at all or is it just, you know, the funny thing is in this space, everyone likes to talk about how there’s a lot of mom and pops and then very few people I know actually like to pick up the phone and the truth is when

Unknown Speaker 12:00
The phone is probably the best way to get a mom and pop to and and it’s more than just that calling someone up and saying hey are you interested in selling your park? No Okay bye like that No I mean you need to dump years into it I have a property under contract right now in a massive MSA that took me three years to get under contract wow three years. So that is how long it can take to get someone to your price and your terms. And the thing of it is when people are they they’re stuck in their job and they’re using real estate as like a pipe dream escape from because they hate their boss or they want to go you know, rush and get quick, easy money. The truth of the matter is the great deals out there where everybody wins the seller us the tenants, everybody wins are not ones you just jump on mobile home parks store calm and I’ll buy a 10 cap. No, it’s ones that you grind out for years. It’s one that you

Unknown Speaker 13:00
overcome objections you pump someone full of value for years and don’t expect anything in return. It is not a complicated business. It is a long, drawn out, block and tackle type business. Nothing fancy, just you got to go and do what’s not sexy what takes a long time. And a lot of people don’t like to hear that, you know, hey, Ryan’s close two deals so far this year, he’s got 300 contract. Great, right? That took me five years. Okay, my first year I bought nothing.

Unknown Speaker 13:32
My second year, I bought one. So it takes a long time. So, so kind of going, I wanted to go into underwriting but I’m gonna ask one more question on this line here.

Unknown Speaker 13:45
So you just said your first year you didn’t buy anything. And that’s, I mean, that’s often common with people, you know, just getting started in real estate, who want to, you know, they’re really excited but they just can’t pull the trigger or they just don’t know how, or they don’t have the capital. So it sounds like you started from

Unknown Speaker 14:00
A negative negative balance sheet in your own bank account, which is that’s not an advantage to you as an investor for sure. So how did you overcome that negative balance? How did you get your first park? OPM other people’s monies? Yeah, you have to. And basically what I realized is there’s three legs to any deal on credit, my friend Andrew keel for bringing that up to me. Basically, every deal has three aspects, you have to have a willing seller, right? So someone who goes alright, I’ll sign over the deed, it’s yours. But that person is going to want money. So via debt or equity or combination of both. You have to bring this person money. And then the third kind of leg of this three legged table is the operations and like my friend Coleman pubis says, everybody likes making the babies No one likes raising the babies. And what I mean by that is, the operations is really the hardest and most important part of

Unknown Speaker 15:00
Those three because you can brag all you want that you syndicated a bunch of money and closed a deal. But the truth of the matter is, someone’s got to be there to operate it. And it’s not really value add unless you pull off the business plan and successfully operate. And so I see a lot of people on LinkedIn and on there, you know, in the market talking about how many assets they have under management or how they close those big deal. And then you ask like, have you ever been to your property? Have you ever talked to your residence that you know, what contractors do? You know, personally, like when I went to this deal I was talking about that I had under contract for three years. I went and I had three people I hadn’t seen in years, drop everything they were doing to come and see me. Think about that. You know why that is because I put the time face to face in with these people and they all wanted to see pictures of my son and yada yada yada. So it’s like, again, like if I if your listeners get anything out of me, I really hope that it’s it’s there two things. Number one, you go

Unknown Speaker 16:00
Oh my gosh, this is way harder than I ever imagined. And number two, then they get excited. Oh my gosh, it’s way harder. Which means if I really want to kick butt here, there’s not going to be a lot of competition because most people like easy not hard. Absolutely. And yeah, that’s that’s funny because I often thought that when I was first getting into real estate, I was like, man, I mean, why there’s just so much competition out there. Of course, there’s no chance I can’t get a good deal. But yeah, but the truth of the matter is, it’s much harder than people think, to find deals to stabilize deals. And so the competition isn’t as fierce as you perceive it to be. Just because you’re so far as you’re willing to put in more effort than other people are to to really create value in your in the deals that you work so and time No, forget that to effort in time. Absolutely.

Unknown Speaker 16:52
So I want to move on to underwriting. We all know that when you buy any asset you basically

Unknown Speaker 17:00
Make the money when you purchase. To an extent I don’t truly believe in that 100% a lot of a lot of it comes from operating. But it is true that when you when you buy the property, you can’t buy it at a loss or else it’s just not going to be a great asset for your portfolio. So that comes to underwriting.

Unknown Speaker 17:18
underwriting is one of the most important parts of purchasing the property. How do you go about underwriting your mobile home parks? What are the things that you look for that other people don’t?

Unknown Speaker 17:30
Yeah, well, first and foremost, there’s several different directions we could go with this. But first and foremost, the number one thing that I don’t hear enough people talk about is capex because the silent killer of mobile home parks is cap x. I mean, we’ve we made a mistake on our second property that I talked about in my podcast that cost us $150,000. Wow. And we bought that property for 500. So I mean, you’re talking a massive budget.

Unknown Speaker 18:00
Like literally 30% of the purchase price, we had to turn around and dump right back into it in very short order. Because we just didn’t check the water bills. And we didn’t we didn’t think that the gallons per household was anything to be concerned about. And the truth was we were literally losing money to the ground. There’s like over $20,000 a year it’ll leak to the ground that was impossible to find. It took us years to find it and knock on wood. Our water bills for the last nine months have been completely normal. So yeah, I mean, first and foremost, capex. For this property I was mentioning earlier that took me three years to get when Ian and I went to it. I literally went to every single lot and documented septic water lines and electrical because it’s gonna kill you. And another big thing is trees, trees love to fall and they love to fall at times. You don’t want them to fall and they love to fall on things you don’t want them to fall on. And so yeah, I mean

Unknown Speaker 19:00
I, again it the sexy part of this business is talk about how you can buy something for a, you know, a six cap, slap leverage on it and you hit your a prep with a nice margin. And then you raise rents on top of that and you’re hitting, you know, 10 plus cash on cash returns. And where else are you going to do that, which is really exciting, right, they trade for a little bit higher on a basis point percentage, then apartments. And then even better than that, when you’re buying stuff in tertiary markets or smaller hairier stuff, you can get a caps and higher, right so in other words, there’s whereas in apartments, you usually can’t pull that off. So in other words, the more quality mobile home parks, they basically are, they trade and perform very similarly to high end apartments. But then when you get to the lower stuff, you can really start hitting some nice juicy returns. But again, it all comes back to there’s a lot of risk with that. And the biggest risk is cap x because if you buy a little 40 lat Park and you get a 10 cap

Unknown Speaker 20:00
And then you slap leverage on it and there’s seller care or their seller carry and you’re like, Oh my gosh, this is great. And then six months down the road, you’re dumping $150,000 into it, it changes things. So in other words, for me, I know that’s, you know, we can talk, anything you want to talk about, if you want to jump into what I look for IRR is equity multipliers, whatever, yada, yada, yada. That’s important, and we can talk about that. But to me, if you’re really, really interested in mobile, home parks, the number one thing no one is talking about, and no one is really diligent enough around is understanding your infrastructure because it will absolutely crush you if you’re not careful.

Unknown Speaker 20:37
Awesome. I love that you said that because we’re actually buying a park in George Washington right now. And

Unknown Speaker 20:44
there’s a there’s a single family, well, there’s a sizable amount of capex that we’re considering putting into the park. And on paper, if you were to buy this park and not consider capex, it looks just stellar, just better than you can imagine. But after capex, it’s normal. You

Unknown Speaker 21:00
Normal purchase but had we not considered that capex, we wouldn’t be in the position we’re in now.

Unknown Speaker 21:06
So I want to go a little bit further into that. Before I do though I just want you to mention you have mentioned that you’ve you run your own podcast for those listening and who want to who want to learn a little bit more about your podcast and about mobile home parks, which what is the podcast name and how can they find it? MHP IRL, which stands for mobile home parks in real life, and it is I spare no details. I will tell you how to do everything and in very specific detail, I realized that when I started off

Unknown Speaker 21:37
the only podcast out there were hyping up the industry. Oh, wow. Like you don’t have to fix toilets and brews and use a coupon clipper and buy them for 10 caps and then you’re making 20% cash on cash returns. And I realized that it sold me on the industry only for me to get started in the industry and go oh my gosh, this is absolutely not at all what they’re talking about.

Unknown Speaker 22:00
Know what happens when someone when someone gets evicted and they own their own home and they disappear in the middle of night with the title that’s gonna kill you. What about you know, so in other words, how do you evict a tenant own home? You know what about infill? Okay well I have a home that I moved in in February it’s now July and the county will still not approve the even though everything is done. sewer, everything they skirting it is done it is ready to go I have a buyer lined up we’re done. And I think the reason why they’re not approving it is because they don’t like where I put the numbers of the address on the home and then they’re not telling me on purpose. These are things which is ridiculous but that’s that’s dealing with the counties and and then here’s another really important thing that almost no one I have ever heard says this if you are in filling a community, you the like selling point of mobile home parks is you have highlights

Unknown Speaker 23:00
Sticky tenants that are also highly risky tenants because they’re low income, low credit, or no and no credit or basically no income. And you’re going to expect these people to come and mass who have decent credit, decent income, no vicious animals, it’s really hard and to stick and not move and follow your rules. It is really really, really hard. You’re taking in high risk tenants for like 300 bucks a month. What no one is saying this like and it was so enraging to me and I found myself complaining about how basically fundraisers were going out and trying to like you know, influx the market with hype so they could take investment dollars, and just omitting really key details. And if you know anything about me is that I don’t like to complain and then not do something. So I’m not selling anything. I’m not raising any money. I am literally just a dude who’s angry.

Unknown Speaker 24:00
And I’m going to go out and help good people who don’t want to be slumlords have the tools necessary to be successful. So that’s a long sale on my my podcast, I spare no details if you want to buy a mobile home park and you want to know how it really is and how to actually operate it, oh my god, everything I know is right there and it’s all free.

Unknown Speaker 24:23
I love it. Well, I mean, I’m definitely gonna have to check it out myself. So for everybody listening, watching, if you guys want to learn a little bit more about mobile home parks, the operations, the acquisitions, check out on MHP IRL, it’s Ryan’s podcast, you’ll get more of this goodness that he’s sharing right here on our show. Moving on, though, so we were just talking about.

Unknown Speaker 24:46
We were just talking about underwriting. So you mentioned you know, capex is a huge thing when you’re talking about underwriting.

Unknown Speaker 24:54
And you also mentioned sewer, electrical and

Unknown Speaker 24:58
water are the big things to be looking at.

Unknown Speaker 25:00
What else one of the things you look at when you’re when you’re doing your underwriting that really have an effect on the future value of the property. Right? So don’t forget trees, trees are killers to trees. And to me what I’m doing underwriting first and foremost is I like to do a quick back of the napkin math, I like to see what I think best case scenario, it’s gonna be in three to five years and what it is performing today and then I look at that difference, and I go, is that worth it? Yeah. And on that note, do you guys

Unknown Speaker 25:33
do you guys go into it? say there’s maybe you know, a half an acre? That’s empty on the lot Do you go into it looking to add new pads to your park? Or is it always just as is? No, I if it’s not good enough without me dumping a bunch of capital into it, I’m not interested. So to me, it’s just, you know, I know a lot of people are excited to develop out pads and bring in new stuff and

Unknown Speaker 26:01
A gentleman that owns a community literally adjacent to mine, it’s like 18 lots next to my 68 lot community and he’s spent possibly as much as I have on mine for a fraction of his and I think he’s in the spot where he’s probably not ever going to sell it. This is going to need to break even, he’s gonna need to exit for like 40,000 a pad. And you’re not going to get that on 18 lots. I mean, it’s, it’s, I will credit him, he makes my community look great because he’s also made it look pretty like mine. Yep. Which is great. But for 18 lots I mean to spend as you know, close to as much as you bought the thing for, you know, your his basis is out of control now, and so in other words, and that’s all because he had to cut down all sorts of trees and brush and then build out pipes and infrastructure and concrete pads and then he spent way too much on bringing in homes that were used, because I went through it with him and I

Unknown Speaker 27:00
You know, I sat back and I’m like, What are you doing? You know, like, but you know that that’s a strategy and I love that, that I can be wrong and someone can challenge me but to me, I’m not really interested in buying something that then go and dump a bunch of capital into because you got to think about like this. When I move even I used home and so I’ll give you give, for example, the one I was talking about earlier, they’re brought in in February. And yeah, COVID has delayed it. My basis on this about $30,000 I only bought it for five. Think about that. It was in good shape. Early 90s, massive home, we had to replace the roof. We had to do all sorts of stuff on the inside, we had to build out the

Unknown Speaker 27:46
we had to redo the sewer and water connections, and completely redo the electrical connections outside of the home. And yada yada yada. We’re at about a basis of $30,000. We don’t have so much

Unknown Speaker 28:00
One who’s going to come and give us $30,000 cash, and not want to rip the home from the community, right? So in other words, I’m going to need to get that money back slowly and over time. And even if I get it back in an aggressive, say, three years, I would rather have that $30,000 right now, then in three years, because right now I can buy more properties with that $30,000. So to me, and that’s one home, imagine if I’m bringing in 10, that’s 300 grand, if I’m moving in 100, that’s $3 million. Is it worth that to make a decent return or buy multiple properties, and to me, dumping in the capital to do stuff like that is really inefficient. So that’s kind of how I think through that if the homes are there, even if they’re atrocious, and it’s going to be difficult to get the titles and there’s a rough tenant base and it’s all park on home or whatever, whatever, whatever. If the homes are there, and I don’t have to dump money into building out new infrastructure. I’m excited.

Unknown Speaker 29:00
Makes sense, right? Yeah that that it makes a lot more sense and it’s surprising how much how much capex it takes to put a pad in I thought when I first looked into it, I thought it was going to be maybe $5,000 it’s not for those of you who really go quoted so I’m glad you brought that up. You also mentioned something that I want to jump into you mentioned park on homes. So whenever somebody looks at if if people listening watching haven’t gone into mobile home space yet, you generally when you look at a park they’re either going to be majority majority owned by the tenant so apartment or tenant owned homes or they will be owned by the park so park on Tom’s po H to H. So for your park owned homes or sorry, your tenant own homes.

Unknown Speaker 29:49
What do you do when you’re looking at the park? do you how do you go about selling those homes Do you or do you keep them on do you keep the tenant tenant own homes or

Unknown Speaker 30:00
Sorry, Park on Tom’s Sorry, I’m screwing this up here. No your own homes. Do you keep those? Or do you sell them to the tenants? It depends. It’s market dependent. So I’ll give you give, for example, my Asheville community my lot rents at 315. And I can rent my park on homes for over 1001. Yeah, and I have seemingly unlimited demand for it, which is insane. So when you look at Asheville, you’re like, Oh, my gosh, I’m there’s a delta of $700. Can there really be $700 worth of repairs a month? And I’ve had that property for about three and a half years now. And the answer is unequivocally No. You’re just you’re just, it just doesn’t make sense to sell it. And and better than that, most of those tenants are original tenants. So they’re extremely sticky, which is insane to me. So you compare that with for example, Spartanburg, South Carolina, which we’re talking about your Blacksburg commute.

Unknown Speaker 31:00
rents there are just not that high. And my lot rents pretty darn similar. I’m at 295. There, so it’s about a $20 difference. And rents they’re like 600 bucks. Can someone do $300 worth of damage a month? Oh, yeah, I have to replace an hv AC or a roof or something like that. Forget it. And if you have turnover on top of that, and then you’ve dumped several thousand dollars into fixing it, oh my gosh, it’s it’s a big difference. So, in other words, the way you got to look at this is it’s very market dependent. But from a 30,000 foot view, most people don’t like park on homes and I’ll tell you why. Because you have to worry about a roof going out or an HB AC going out. Heavy tenant turnover. But I like them and I like them more than for more than just that most people don’t and that makes me different, which gives me an advantage. I like them because I have control. And because it’s hard, high risk, high reward. That’s exactly what they are. You got to have a license to sell more than a handful a year depending on your state.

Unknown Speaker 32:00
But once you get your license, which we have, it took us like six months, which in South Carolina, which was a disaster, but we got it and we just rented it out, which is, which is awesome. So you know, you got to get licensed. But as soon as you’re licensed, then you have options, you have options, you can keep renting it out, if you have good tenants. So for example, I got rid of all my section eight because I utterly hate section eight. It’s also very market dependent. But I have one gentleman who is just an absolute dream. And so I’m keeping that as barcode, oh, he’s partial section eight, and he pays the rest and he helps the community has been there for like 30 years doesn’t want to own it. Hey, no objections to me, I’m going to keep it then I have the option to rent own it or lease option at depending on your state. And the cool thing about that is you can get those elevated, gross revenues coming in and not have to fix anything and have someone who’s ecstatic because they have no credit or bad credit. And you’re the bank for them. And it’s great because the title is in your name. So if they do

Unknown Speaker 33:00
fault, guess who’s getting that back you you have control. And then what you can do too is if you move in a home and you don’t want to spend $30,000 like I did to fix up this, this home, you can have someone you’ve built a relationship out over the years, literally do all of that for you. I have several people that I know that don’t speak a word of English, they’re Hispanic, they’re full citizens and everything. And because I speak my broken Spanish I’ve developed relationships with folks for years who I’ll buy something for five grand and move it and then they’ll buy it from me for five grand I’ll take 2000 plus or minus dollar loss, but then they’ll start paying me my lot rent immediately then they’ll dump $20,000 into it, keep it as a rental. They win the people who are living there renting from them win and I win because I don’t have to spend $30,000 I get my lot rent now. So there are a bunch of different clever ways you can go about it. But I love park on homes, because I am on my properties being my own property.

Unknown Speaker 34:00
Manager, asset manager, whatever you call it, and now that I have employees now I can really start to scale my business seriously because I have these skills. So to me, I want what’s tough I want what’s high risk, high reward for someone getting into it, I would definitely recommend you go more tenant own home, because it’s less to have to worry about but it’s also less reward. So that’s kind of how I think through that. I like it and that actually kind of piggy

Unknown Speaker 34:26
piggy backs into the next question I was gonna ask, say you do buy a park that has a bunch of

Unknown Speaker 34:32
Park owned homes. I’m getting those screwed up in my mind. Do you repair replace or destroy completely depends on the home. So I

Unknown Speaker 34:45
I’ve sold as his handyman specials. Those are high risk, high reward. You really have to know who you’re selling it to actually talk about this on my YouTube channel and my podcasts like you really if you’re doing a handyman special and you’re selling something for like five

Unknown Speaker 35:00
100 bucks, that’s atrocious. You really need someone who has the experience, the time and the money. And if any of those three are missing, you are toast, you have someone that lacks experience, they’re going to make that home. Even worse, you have someone who doesn’t have the time, you’re going to have a Miami and what I mean by Miami, if you ever go to Miami, it feels like a really nice ghost town because a bunch of foreign money owns all these condos, no one’s in them, right like interesting how I’ve had Ian and I joke about that we’ve had communities before where we sell off a bunch of handyman specials. And we made the mistake of selling it to people who have money, who can invest in them have the experience who know what they’re doing, but they’re really good at what they do. So they don’t have time. And all of a sudden you have all this lot rent coming in and you have these homes that are just vacant. And it’s a really eerie feeling. And so you don’t want you have to be able to find someone who meets those three things. And then obviously follows your rules and yada yada yada. So it’s really really hard to do that, but that’s an option you have. Now the other thing you can do like you

Unknown Speaker 36:00
He mentioned is literally fix it and flip it. And again, the issue is fixing and flipping is most people aren’t going to pay you cash because they have no credit or bad credit or not much income or not much cash. That’s why they’re they need affordable housing because they don’t have money or credit, or both. So use go spend 1015 $20,000 rehabbing something, and then you know you rent, own it, lease option it, seller carrier, whatever, yada yada yada, you don’t get that money back for several years, and some they may move out. And then you got to do the whole process all over again. So that’s also pretty risky, but I’ve done it plenty of times, and it works or just replace it. And I’ve had to do that before too. I’ve got a property I just bought earlier, like literally about 30 days ago, where the homes burned down. So I’m going to have to remove that replace that with something newer, nicer and improve the quality of the community. Hooray. But again, it’s the same spot. I’m gonna have to dump 30,000 plus to get it there, get it fixed up. I mean it

Unknown Speaker 37:00
You know, again, another question of where’s my capital? best bet and I’m a firm believer that your capital is best spent buying properties, not bringing in new homes. I couldn’t agree more. I like that you you ended on that one.

Unknown Speaker 37:16
Ryan, um, unfortunately, you know, you’ve you’ve given us so much awesome wisdom so far. Unfortunately, we are towards the end of the show, I try to try to keep it around 30 minutes. But you know, I’m not I’m less successful, definitely not successful in this period. But you know, there I have a few left, you know, closing questions that I want to ask something that I ask everybody that comes on the show, we all know that real estate’s a roller coaster, you got your ups, you got your downs. And we all get to experience both of them. So take us to one of the down periods. You know, you’re at you’re at the top right now take us to to you know, where the trough of your life of your real estate career and tell us the number one lesson that you took from that experience. I can talk about

Unknown Speaker 38:00
for hours about this, but I already mentioned the $150,000 kick in the face that I got, I was on my second property. And we were doing that with with our third leg of our Archimedes group and I picked the right JV partner because I caught we called him up. We explained the situation. He didn’t flinch. He was like, okay, where do I where the money? Let’s get it done. So that was really scary. Because I had no money. I invested all the money I made on my first deal on my second one pretty much. And I had like no money left over. And I yeah, I was really, really scary. And I had no deals under contract and nothing working. And I felt like I was getting absolutely nowhere, which is debilitating. And on top of that, I have to ask someone for a whole bunch of money. So that was definitely a low point. Gotcha. What was the lesson you learned from that one?

Unknown Speaker 38:50
partner with the right people, because if he was not a total Rockstar, even if he was like an average or even above average investor, I probably would have

Unknown Speaker 39:00
My face chewed off. And so that would have made a bad situation even worse, and there’s I have recourse that on that deal. So if we had gone belly up, all of us would have had to bet could have possibly gone bankrupt. So recourse debt is a real thing. And it’s really scary when things don’t go, right. But if you partner with the right people, you can be adults and get through a really tough situation. So absolutely partner with the right people. Absolutely. Finding, finding good partners is I mean, it’s, it’s gold in this industry, in any industry, to be honest, but um, but you really got you got to make sure that you’re in bed with the right people, because partnerships are almost like a marriage. You’re with each other for the long haul, you’ve got to be able to trust the other person. So I love that you said that. And I love that you did find the right person in that situation.

Unknown Speaker 39:47
So moving on, you know, you’ve been in this for five years. you’ve, you’ve had your ups, you’ve had your downs, but you know, you’re doing really well right now. So congratulations. Thanks. If you were to go back to the ryan who started

Unknown Speaker 40:00
You know, five years ago, no experience didn’t know what you know, didn’t really know what he was getting into. And give that Ryan one piece of advice, what would it be? Don’t stop what you’re doing. I mean, what I did worked out. Let me let me do more of what you’re doing.

Unknown Speaker 40:17
Maybe it’ll go a little bit faster. I mean, honestly, I focus my time on learning, networking, self assessing, understanding who I am and preparing to sacrifice because I quit a lucrative job to literally move into a mobile home. And I lived in that mobile home, like I said, every other week for 14 months, making less than half of what I was making and having no 401k no benefits, was hours away from my family and my friends was really tough, and really scary. And it was always recourse debt over my head. And it was the happiest I’ve ever been in my life. And it that honeymoon phase has not worn off because I found what I meant to be doing. So if I was to talk to myself five years ago, I would say thank you, you’ve you’ve made the right choice. Just keep doing it.

Unknown Speaker 41:00
Do it harder.

Unknown Speaker 41:02
There you go. Ladies and gentlemen do not give up. And I would like to echo that myself. Just don’t give up. If you you know, if, when you jump onto a new path, you always It always feels shaky. It always feels like it’s not, you know, it doesn’t have solid ground under you just keep moving forward. You’re gonna make it if you just keep, you know, keep your eye on the prize and keep focused.

Unknown Speaker 41:25
Awesome. I’m glad you you pulled through that one. So we are at the end of the show here, Ryan. You know if we all need to receive things you’ve given us a lot in this episode. So kind of if somebody were to bring you something, what would you want to receive? So I’m a giver, I don’t want to receive anything. But if I gun to my head, pick something, here’s what I want. I want to help you. I want to help you go out and be more successful. One of the best things that I get in return is when someone calls or texts or emails and says hey, I took your advice and it worked and I’m so thankful like that.

Unknown Speaker 42:00
Gratitude coming back to me, is is worth everything. Like I mentioned earlier, I’m not selling anything, I’m not raising any money. I just really enjoy helping people. And if you are listening to this, and you realize, hey, this dude is raising money on his podcast, so maybe it’s a little biased, I need to I really truly want to start this mobile home business or any real estate business and I just need someone to give me some some real talk. Like, what is it really gonna take? That’s me. And I don’t need anything from you just drop me a line when it works. Like that’s it go out and help people I really want to be an inspiration for others to chase our own dreams to get out of jobs that they’re they feel stuck in and to go out and make the world a better place because they were there. And if and if you don’t give me anything, I don’t care. I’m so happy to help you. I love it. Well, thank you for that. Ryan. If somebody did want to get in contact with you what would be the best way for them to do that? easiest thing to do is LinkedIn. Like my

Unknown Speaker 43:00
favorite rappers Tupac says I in hard to find. Literally I’m the only Ryan neros I believe in the world. It’s na R Us and like Nancy, you Google that and LinkedIn and my LinkedIn is right there. You can drop me a line there. My website should be like the second thing that comes up on Google, you can email me directly from my website right there. Archimedes GRP comm come find me I would love to talk to you and I don’t care if you are worth a billion dollars or worth negative a billion dollars or anywhere in between I don’t care who you are. I would love to help you and I don’t need a thing in return. Awesome. Well there you heard heard it. Ladies and gentlemen, if you want to get in contact with Brian, I’m actually going to put his LinkedIn URL in the show notes. So you can go there click through or you can just google Ryan Norris. Na r us in in, in LinkedIn search and you’ll be able to find him there. So again, Ryan, thank you very much for jumping on the show today. I really appreciated it and I know everybody else did as well. for everybody. Hit that

Unknown Speaker 44:00
It’s here with us today. Thank you guys for joining and we look forward to seeing you guys on the next episode.

Unknown Speaker 44:11
Thank you for joining us on The Real Estate Investment club

Unknown Speaker 44:14
provided value, appreciate it, hit that thumbs up, share friends online, whatever it may be. If you’d like to share or partner with us on an investment deal, we are always looking for quality projects, go to http://www.hp real estate investing club comm get contact with one of our partners. Otherwise, I hope you guys have an absolutely fantastic day and I look forward to seeing you on the next episode.

Transcribed by

Enjoy the show? Subscribe to the channel for all our upcoming real estate investor interviews and episodes.

Join our active Facebook Group for Real Estate Investors.



LEARN — Want to learn the ins and outs of real estate investing? Check out our course at

READ — Want real estate book recommendations? Check out our list of the best books on real estate investing:

PARTNER — Want to partner on a deal or connect in person? Email the host Gabe Petersen at or reach out on LinkedIn at

CONNECT — Want to join one of the most active Facebook Groups for Real Estate Investors? Click here to join:

GROW — Want for us to bring you leads and run your real estate digital marketing? Reach out to our partner agency at

WATCH — Want to watch our YouTube channel? Click here:

LISTEN — Want to listen to our Podcast? Go here:



The Real Estate Investing Club is a podcast and YouTube show where real estate investing professionals share their best advice, greatest stories, and favorite tips in real estate. Join us as we delve into every aspect of real estate investing – from self-storage, to mobile home parks, to single family rentals, to real estate syndication!

If you’re a real estate investor and are looking for tips and motivation to grow your business, this is the show for you. This is an interview-based real estate show where I’ll be hearing from investing pros from every asset class, niche and geographic area in the US.

Join us as we learn about these REI pro’s career peaks and valleys and the lessons they learned along the way!

Topics you’ll learn more about throughout our episodes:

– Using the BRRR strategy to buy income properties

– Flipping houses the right way, building quality housing and taking home a large payday

– Using hard money and bridge loans for real estate investments

– How to bounce back from bankruptcy and build a thriving empire in the wake of failure

– How to use property management companies to help scale your real estate business

– The best online and offline tools out there to take your real estate investing business to the next level

– How to do out of state investing without risking your shirt in the process

– Going from broke to 300+ deals in a month (really!)

– Investing in commercial real estate

– Stories about brand-new investors and the lesson’s they’re learning as they take on their very first flips and rentals

– How to use Google Ads and Facebook Ads to crush it in off market real estate marketing

– How to fill your pipeline with off market deals using direct mail, voiceless mail drops, and text blasting

#realestateinvesting #passiveincome #realestate

%d bloggers like this: