Guest:Brant Phillips

Figuring out how to make passive income is critical for everyone. It’s really the only way to have a real-life today. It’s the only way to stay ahead financially and enjoy some measure of financial security and peace.

This has become even truer and more urgent in the wake of the COVID-19 pandemic which shattered the economy and has sent at least tens of millions of workers to the unemployment office. A catastrophic tragedy, which has also put a massive dent in many individuals’ retirement portfolios.

Listen into this podcast episode to find out how this pro got started in real estate investing, how he flipped his way to the Inc. 5000 list of fastest-growing companies. Then, how he found a highly profitable niche for cash flow and how to make passive income which has generally been reserved for the wealthiest billionaires and biggest funds. 

This is for you whether you are just looking to get started in real estate investing, need to get your money out of the stock market before it dives even further, or your current real estate strategies just aren’t delivering the truly passive income you expected.

WHAT ARE THE ADVANTAGES OF INVESTING IN MOBILE HOMES?

Having done countless single family home deals Brant found there really wasn’t any passive income in it. Whether you are wholesaling, fixing and flipping, or acting as a landlord it is quite active investing. Mobile homes can be far cheaper per unit, have less competition, may be more common in your area and are in high demand as a form of affordable housing.

WHAT IS HAPPENING IN THE MARKET RIGHT NOW?

2020 started off with an incredibly strong real estate market. A bullish space where new records were still being set, billion dollar deals were being done, and though property prices were high, investors and home buyers just couldn’t grab enough deals. Then, the coronavirus arrived… And the game changed. 

WHY DO BILLIONAIRES INVEST IN MOBILE HOME PARKS?

Multi-billionaire investors like Warren Buffett and Sam Zell are also some of the biggest mobile home and mobile home park investors and lenders. As are more ex-Wall Street traders and big hedge funds.

They can produce strong cap rates and lots of cash flow. Park owners also often only own and manage the dirt. It doesn’t get much easier than managing dirt. The tenants frequently own their own mobile homes and take care of their own maintenance and utilities.

HOW TO MAKE PASSIVE INCOME IN REAL ESTATE 

Step 1 – Find easy to manage assets

Passive income relies on easy to manage assets and those you can hold long term, without relying on finding deals every day to make money. Mobile home parks are a great example of this.

Step 2 – Optimize for cash flow 

With mobile home parks you can charge ground rent, finance homes to residents, add laundry services and other features for more income.

Step 3 – Find great managers

Some will still need to manage your properties. Find great local boots on the ground to take care of your out of area assets. Take yourself out of the equation, and use professional third party management, so you can act as a business owner, and work on the business, not in the business.

Summary 

Passive income is incredibly important. While there are many types of real estate and real estate investing strategies, not all really deliver on this. This can be quite common in the single family home sector. Make sure you check out how Brant made the switch to mobile homes to make passive income really happen. 

Action Steps for Finding Mobile Home Park Deals

Use real estate software

Build your network of commercial real estate brokers

Optimize your SEO to get found online