Sean is a CPA from Dimercurio Associates

Capital Gains Rate is something you should be paying attention to

Depreciation is write offs are over a certain number of years

You cant write off the cost of land

LLC's can be taxed however you want them to be

Cars are good write offs as you can take mileage or cost to write off

Most common way to offset taxes using real estate is through depreciation

Dimercurioadvisors.com/warrior

- Grandparents started in real estate

- StackSource is a commercial financing portal

- Allows lenders to get matched to loans

- There are over 70 criteria that must be met for a lender to be matched

- Browser has been created to help calculate best financing option for you

- key differences between commercial and residential mortgages

-commercial has personal recourse

-residential does not.

- Bank loans take 45-60 days to close,

Tim was able to close one property in 2 weeks

- Underwriting is one of the common reasons people are denied commercial loans

Worked multiple corporate jobs before switching to investing

Mindset is the foundation of success

Business is driven by pushing

You cannot sit and wait and expect the business to grow and run.

Embracing pain and work is key

Investing in Mobile Homes

For Adrian, mobile home are about cash flow

Invests in mobile home WITH land

Bought mobile homes in parks during the building phase but they are more maintenance

Likes to invest in homes that will attract blue collar tenant

Case Study:

-Bought a 1974 mobile home with concrete addition which doubled square footage (and was done correctly. Usually where the roof connects, you get leaks. This one was done correctly with no leaks). Bought it from wholesaler

-Bought for 50k. Wholesaler made

-Needed a roof over the utility room and workshop, electrical work. Put 5-6k into

-Rents it now for $1250

How Adrian finances the mobile homes

-His own cash

-Private money

-Seller financing

Many homeowners of mobile homes know they cannot sell it to someone with bank financing so they are already primed for a seller financing conversation

How Adrian finds mobile homes on land:

-Other investors and realtors

Adrians Exit Strategy

-Keep them forever for cash flow

Things to look out for:

-Older than 1978, not up to code

-Copper wiring

-Particle board floors (bw tub and toilet, check there! Thats usually where water damage is)

-Flat, horizontal ACs (need to be pointing outward so it doesn't cause water damage)

-Grey Pex piping- always leak at some point

- Not energy efficient. Doors and walls are thin

-Parts may need to be purchased from mobile home parts store

-Addition: most likely not permitted

Insurance:

-In FL it depends on what county your in. Closer you are to water, the harder it is to get insurance

-Can get insurance on 1980s and newer and its going to be based on depreciated value. Wont be able to get named storm coverage on older homes.

Tie Downs:

-In 1996, when Andrew came through, they made the requirement stricter. 1998 and newer, straps need to be closer.

-If home is older than 98, good chance that they are not up to code.

-If they are older and rusted away, you need to replace them

-$2,300-$3,000 to replace or modify

Skirting:

-Holes cannot be larger than a quarter

- Keeps animals out

-The guts of the house are under the mobile home. Makes it easier to replace systems however you want to protect it with skirting

Difference between purchasing a mobile home on land vs a SFH on land

-Mobile home = personal property, land = real property

-Contract needs to include the personal property (mobile home)

-DMV takes care of title to mobile home

-Retirement of title: Adrian Always retires the title. Its the process of taking the home and attaching it to the land paperwork wise. Means you are going to pay property taxes on the home and the land.

-Gets a little black sticker that you dont have to renew now

-On PSA, make sure you put the VIN of the mobile home to ID it and include it in the sale (1 for single, 2 for double wide, 1 will have an "A" before it and one will have a "B" before it and thats how you know they are married together)

-If the title on mobile home has been retired, you can find the VIN in the legal description

Lessons Learned along the way

Termites like mobile homes because of the old particle board.May need to tent the home

Alot of AC's will be window units

Replacement of floors will result in different heights of floors

In older homes Water heater may be in a little compartment that you access outside of the home

Mobile homes have rat problems and they chew through the wiring. Spray weed killed around the skirting so you don't have to weed wack around the skirting, which is what usually damages the skirting

Axels will usually not be up to code to allow movability

Importance of title company that understands mobile homes

Knows how to retire title

Always ask for a bill of sale with mobile home

Check liens on land AND mobile home

How to find the value of an older mobile home

Very difficult to evaluate because its usually either cash buyers or inflated owner financing

Can start with value of land

Adrian looks at value based on return and risk

How to reach Adrian:

[email protected]

Facebook: Adrian Smude

Todays a special episode! Today we set aside all of the hype and we get real about this sport of ours with our mentor and good friend, Greg Pinneo Greg has been a real estate entrepreneur for over forty-three years. He has an amazing story that will impact YOUR life. He started teaching acquisition, finance, negotiation, and the philosophy of success at Seattle Pacific University at a very young age. This was the entree that opened the door to many opportunities to teach and speak all over the world. His goal has always been disruption that leads to positive change and impact and believes in living a deliberate life of purpose and passion. Greg focuses on world class education...a no BS look at real estate entrepreneurship. Greg also has amazing bride whose name is Shauna, seven great kids, two incredible parents, and is blessed with many great friends and students to engage with. Pinneoisms: "Consider....questioning everything" "Growth is the grail....sameness is the enemy" "Arrival Before Departure" https://www.thecorco.com/

Jennifer's Book: The Give to Get Principle

The first half tells what everyone's secret sauce is. The second half is a cookbook on how to succeed

Questions to ask yourself:

What makes you special and unique?

Who do you serve?

What is your why?

Know who your target demographic is. Give people something helpful, don't just show them what you do. In real estate, relationships are something that you should focus on the most

Advice

• Every investor should get their license.
• The biggest mistake you could make is not practicing, not role playing, and not knowing your script/dialogue.
• Don't practice on the people that pay you.
• Constantly get new coaching, mentoring, and training for yourself.

System for when a deal doesn't work

• A homeowner calls Chris to see if he would buy their house.
• They figure out that they can't make the deal work, but the house could be listed on the market.
• He refers them over to an agent who lists their property.
• He then collects a referral fee when the house is sold.

Why people want to sell to investors, not list their house

• Investors can close quickly.
• It is more convenient to sell to an investor.
• Sellers don't want to deal with repairs.
• There may be problems with the title, so they wouldn't be able to sell to a retail buyer.
• The seller may be embarrassed and not want anyone to know that they are selling their house.
• Sellers want certainty.

How to find a good agent to partner with

• Have someone you trust get licensed or find someone that is already licensed.
• If you're going with someone that is already licensed, make sure that you go through an extensive interview process.
• Don't look for potential, always look for patterns.
• An agent needs to be happy, hungry, humble, and smart.
• Put their license under your entity with a DBA.

Contact

• Instagram: @craddrock
• Website: ChrisCraddock.com

Walking you through the deal

• Mike found the storage facility when it was a week away from being put through the auction process due to the unpaid mortgage and taxes.
• The closest competitor was 10 miles away.
• He purchased the facility for $465,000.
• He put a $5,000 good faith deposit down.
• Then, he raised $120,000 from private investors in exchange for equity.
• He also raised private debt for the remaining $375,000 at 12% no payments, paid in full within a year.
• The facility needed $35,000 in small repairs and working capital.
• It did not need a full makeover, it just needed an operational improvement
• The deal took around 3 months to close.
• When he bought it, it was at 40% occupancy, but had good rental history.
• After they closed on the deal, he had to make sure that the units that were full, but not being paid for, were auctioned off or emptied.
• He set up automated systems including:
• • A gate that lets customers in if they paid their fees, and doesn't allow access if they didn't pay their fees.
  • An online portal where customers can go to rent their units and pay their fees.
  • A call center to answer calls from people that don't want to do the rental process online.
  • One person with "boots on the ground" working about 2-4 hours a week.
• 4 months after closing the facility was full.
• Mike sold another property and was able to pay off the debt and private investors on this property and now owns it free and clear.
• The facility is now at 94% occupancy.
• Rents are approximately 50% higher than when they took over.
• The facility generates about $170,000 in revenue per year with $50,000 in expenses.
• He has owned this property for 3 years and is now selling it for 1.15 million dollars.

How he finds and qualifies storage facilities to buy

• He looks for properties that are close to where he travels.
• He researches supply and demand in the area.
• To qualify a house, he asks himself two questions:
• • Why is it under performing?
  • Do I have the capacity to fix it?
• He typically does 30-45 days of due diligence and then closes 30 days later.
• He verifies and confirms or denies everything that he thinks he knows about the property (ie. Rent rolls).
• He looks at the rental history and previous tax returns.
• He researches market rent to see if it will be profitable.
• He makes sure that storage is a current permitted use and that they will be able to expand.
• He talks to the city about any proposed or potential storage facilities that can come up in the future.
• He doesn't flip a property that he isn't willing to own long term.

Marketing for storage units

• You can not create demand for storage units, people need storage when they need storage.
• Be the first property they find when they're looking for storage units.
• Get listed on Google My Business and Google/Apple Maps.
• Utilize Facebook Ads.
• He hired a directory management company that manages the social media for him, to make sure that it's consistent.

Advice

• The key to success is helping others succeed.
• Try not to ask yourself "is this a deal?" Instead ask yourself "can I make this a deal?"
• Don't put in all of your own money in to a deal until it is proven that the property makes a decent cash flow.

Contact

• Website: StorageRebels.com
• Facebook: The Storage Rebellion
• YouTube: The Storage Rebellion

Team Member Structure

• Kyle uses a setter-closer structure
• • He has appointment setters who get the lead to come in and they qualify the lead. The appointment setters get 10% of any deals that are closed.
  • He also has acquisition managers who talk on the phone to sellers, negotiate, put together the offer, and do all of the follow up until the property is under contract. Acquisition managers get 10% of any deals that they close.
• There is currently 1 acquisition manager and 5 setters on Kyle's team.

How to market on Facebook

• Kyle uses public and private Facebook groups in various markets around the US to market to sellers, end buyers, virtual assistants, and possible commission based employees.
• If you're looking for sellers, you want to market in community-based groups.
• To find buyers, you should market in investor groups.
• To find virtual assistants, you should market in VA and freelancer groups.
• If you're trying to recruit a commission based sales team, you want to market in newbie wholesaler and investor groups.

The Marketing Message

• Keep the post short and sweet with a bright background.
• Don't sound like a company, sound like a typical house hunter.

How to avoid getting kicked out of Facebook groups

• Build relationships with the group administrators
• Follow the group's rules
• Don't join pages that are specific (ie. photography groups)
• Scan through the group to see if other people are posting things similar to what you want to post.
• Only do 13 actions per day. Actions include joining a group or posting in a group.

How to attract good team members

• Treat them like family.
• Have them be a part of something that's bigger than themselves, like a team.
• Give them a sense of ownership by giving them important roles in the company.

How to run a team virtually

• Kyle and his team have weekly Zoom meetings.
• They use Loom.com to record videos of your screen and your face to send how to videos.
• All of the team members are in a group chat on Facebook Messenger.

Contact

• Facebook Group: Group Marketing Real Estate Investing Leads

Go to DealMachine.app.link/warrior to get your special offer for the Deal Machine app!