Today I had the pleasure of speaking with the Director of Multifamily Education & Executive Partner at Active Duty Passive Income, Tim Kelly. Tim is an active duty Chief Petty Officer in the United States Navy and has been serving his country for 14 years. He is also a Real Estate Investor & Educator, Best-Selling Author, and a great speaker.

Let’s jump right into Tim’s story on how he pursued his dream of owning and operating multi-family real estate and helping others realize their financial freedom goals!

[00:01 - 05:14] Advantages and Disadvantages of Mobile Home Parks

• Tim talks about the importance of getting to know the right people in the city hall
• • The approval to rezone their property area
• Tim talks about the advantages and disadvantages of Mobile Park Homes
• • Be conservatives and know the rule of thumbs
• Tim talks about Mobile Home Parks in natural-disaster zone areas (flood, tornado zones)
• • The importance of insurance

[05:15 - 16:49] The Keys to Profitable and Successful Investing

• Make sure you understand your market
• • Make sure you know the demand and population growth, etc
• Make sure you do the adequate market due diligence
• • Private utilities vs municipal utilities
  • Understand the condition in the area
• Analyze the arbitrage
• • The interest rate and a cap rate
  • 2.5% to 3% spread between your interest rate on your debt and your cap rate is a really good rule of thumb
• The higher the cap rate, the more management intensive it is going to take
• Get to know the right people in the city hall
• Tim shares the strategies to be a park owner or tenant owner
• • Bring your lot rent up to market
  • Get to fix a unit
• Tim talks about the RMLO (Residential Mortgage Loan Originator)
• Make sure you understand your local laws

[16:50 - 24:17] Mindset is Everything

• Tim shares the importance of mindset mindfulness
• How you talk to yourself will determine what is coming back at you
• Remove the word “Can, Hope and Try” from your vocabulary
• Tim talks about ‘How you feed your brain’
• • Be aware of the information you take
  • Be aware of the people that you choose to be around

Tweetable Quotes:

“Even if you have the most knowledge about real estate investing but you don't have the mindset to go with it, it’s not going to mean anything at all.” - Tim Kelly

“if you have a positive mindset like if you consider what you're saying to yourself in your self-talk, that's going to translate into the attitude that you pretty much convey to other people and that is what you will receive back at you.” - Tim Kelly

“It is not about what happened to you, because 10% of it is about what happens to you and 90% of it is how you react to what happens.” - Tim Kelly

“People with small minds talk about other people, but people with large minds talk about how to add more value to this world and how to create ideas to help other people.” - Tim Kelly

Resources Mentioned:

• RMLO

You can connect with Tim Kelly on LinkedIn and