I agree that the tiny home / park models don't have the same stigma as trailer parks. They say hindsight is 20/20. I hope you are more successful in the future. AND don't give up. There is a great need for small affordable housing.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Somewhere there's a boardroom full of Marketing Executives laughing their ass off at duping Millennials into the idea of tiny homes. Trust me they all go to trailer park status and the same white trash will move right in to your expensive tiny homes
I love how honest you are about your situations and you're not click baiting us. That trailer park business seems very challenging and depressing. I really like the tiny house idea though!
@@InvestmentJoycan I ask you a question would you go into the trailer Parks investments again now knowing what you know and make sure you don't make the same mistakes again because I still hear it's pretty good investment I once heard a woman owns 1,000 trailer Parks all over the Midwest so she's making a fortune heck you probably don't need to own that much probably a good ten to twenty trailer Parks depending on how many mobile homes you have in each trailer Parks like 30 or 40 trailer Parks
@@andrewmorales5485 yeah I'm not opposed to it I've already been asked to participate in another one and I have not turned it down at this juncture I'm not sure if it's going to just going to be an advisory role or more involved
I think it was just really bad timing. Thank you for showing a failure. I like that, your honest Brandon. Your hard work, and showing your viewer's your highs and lows of the process and what it takes to make it is the reason why I watch your channel.
Made 400k in 4 years and trying to frame this as a failure....Love your videos, but this wasn't a failure, it just wasn't the win you had gone into it hoping for.
I got to 200k net napkkin math not 400 listening to this but there was also likely additional costs then shared for the overly simple story telling that YT viewers need. Even if 400k - I am calling this a failure too - murderers and all of the risks and many months of hassle and putting out more than coming in for years is not worth it for ANYBODY. I don’t think ‘framing’ is occurring in this video. Even the investors he used they could have done other deals more in line with the bulk of what he does and has down today and accomplished more & faster.
People dont realize the stress and anxiety that comes with having so much in you can't easily back out without losing so much. I remember the hell i went thru in 21 building my mat... i can only imagine once the govt started eviction moratorium, you must've been losing your mind.
Great video. Never liked older trailer parks because trailers aren't built to last, and the tenants almost always are a major headache: there's a reason for the stigma against trailer parks. Might work for someone else, but not for me. At least you came out of this more or less in the black, and your idea about tiny homes is intriguing. I suspect it'd attract a different quality of tenant and the construction is much better.
Not even sure I would do traditional tiny homes - something like Vessel E7s or Boxabls. Plus you don't want them just back to front, need some greenspace. Trailers CAN last a long time, but usually RENTAL trailers do not. Rather do space rentals than own the units if you are doing trailers. RVs or modulars, same connections.
People like to hate on hipsters and trend-chasers, but those are all the kinds of people that pay their rent and treat things relatively nicely. I'd take them over the kinds of people that get poverty-trapped in trailer parks. They're traps for a reason. They suck in all the low IQs and druggies and that's just how reality is, whether people want to be honest about that or not. It's not "stigma" or "prejudice". It's mechanical fact. Dozens of millions of people that lost the genetic lottery have to land at the bottom somewhere. Trailer parks are one of those somewheres.
I remember back when you first bought this in 2019, and I thought "glad that's not my baby". Some trailer parks can be decent, but this one was a problem child. When a park has gone downhill, it takes a lot of time, money, and patience to revitalize it. A lot of times the numbers are hard to get working favorably, especially with COVID economics coming into play.
I knew a trailer park flipper. He would buy a park, kick people out one by one and replace them with new trailers and tenants. He would go to all the local trailer home dealers and make them a deal to send new owners his way. He then would pave the park, which raised the value. Then he'd sell it. All he did was flip parks. Dude was rich.
Glad things worked out for you. I do remember expressing my concerns over the quality of tenants when you bought it and wondered if you had purchased a nightmare in disguise.
@@jerbear7952 The signs were there, but I think everyone, including Investment Joy thought the signs weren't strong enough. We were all wrong. Personally, I'm very picky about tenants. If I wouldn't live in a duplex with them, I don't want them in one of my 350k - 550k assets. I've always thought the people are everything. Garbage people = garbage income and garbage treatment of the property. But, I wanted to see Investment Joy succeed. Ben Mallah made his fortune off of destructive, mentally broken college students on section 8. I thought maybe Investment Joy could make this work, too. Everyone has their own niche, but I guess this was just too much scum to take on.
I've lived in the trailer park im currently in for 7 years. Never late on rent. Never had a write up. I own my trailer. Even through the pandemic i payed it. The company bought over 60 new trailers. It costs over 1k a month. No amenities. Most of the trailers are vacant, and dont hold tenants longer than a year. 2 at most. If he raises the lot rent again ill move. Trailer parks aren't for middle class people that can afford 1k+ rent lol. They are for low income people. Trailer parks are also wrose than HOAs in a lot of ways.
@@coledude2548 That would be 1K (and more) a month, for nothing but the flat spot the trailer is sitting on. Water, gas/electric, all extra and often as not there will be some monopoly 'you can only get this crappy&expensive internet service because they have a contract' situation.
Wasn't there any recourse against the seller who had "switched" 15 or so trailers? I can't imagine their having taken such a risk to begin with. How could they have been so sure that you hadn't at least taken pictures, and noted the VIN's, after which you would have refused delivery of any that didn't match?
@@dwightsmith5174 Except he's nowhere near a rookie, and how could anyone as a seller think they would get away with such a thing? It's like a used car dealer delivering the wrong car 15 times, hoping nobody will notice.
Theres a 55+ trailer park in my community that has owner-occupied trailers that are well maintained. Other than that, the other parks are section 8 types with the typical drama and crime.
Trailer parks in my area are like the 55+, clean and well cared for, they are just outside my county. There is only one area with trailers left in my county. Now as the trailers age and people move out or die, the trailers are removed and the deal with the county is the trailer lots are sold as new home lots. Profitable for the owner and the county can continue to upgrade the area.
I was really hoping for an underdog story with this trailer park. Nonetheless, I'm glad to see you're at least not taking a massive loss on it. Can't wait to see what the future has in store for you.
This has definitely been the worst performing item in the portfolio. Plenty of wins on other ends that I'm hoping to talk about over the new few months. Thanks!
Brandon, Would you ever entertain the idea of an RV park? I know you mentioned if you had to do this over again you'd just buy land, or a existing trailer park with the intention of bulldozing, but what about a strictly RV(no mobile home) park?
@@bigman55434Depends on the park. If you allow long term RV renters you sure can have similar problems. There are some sketchy, crime ridden RV parks in my area.
I have a RV / Mobile home park. Keep the RVs no older than 10 years old, background check the tenants, stick to your rules, and keep your rents at market rate. You will attract the right folks and keep the problems away. The park owns a couple homes and the rest are tenant owned. We just started adding tiny homes and hope to add more if it works out. When buying a park as a mom and pop you have to play chess...keep the cash flow going while trying to figure out your next move that will increase cash flow without having to put more money into it.
@@marccocke9924 it's good advice, there was a whole segment that we didn't record with Pace morby or at least I don't think that we're able to show it where he was talking about his own trailer park that was in a very similar situation as mine. You're on the right thought process, the problem for for me has been it's been a very expensive learning process
Don't go to tiny. Maybe an old idea would be better? In the 1960s in suburban Maryland they made a whole bunch of 1000 sq/ft homes. Two bedrooms, one dining room, kitchen, living room. They also had a basement. You had to go up about 6 steps to get into the house. The basement was very basic. Washer/dryer and a nice storage area. Recently I looked at that old neighborhood. I was floored. A 1000 sq/ft house just sold for 390K. Trulia lanham/seabrook Maryland. Fowler lane area.
Those will cost you $150K to build today. You can put a modular prefab down for $80K. The main cost is the land you build it on, and if you build it on crap land they are work crap.
@@redwolfexr I just looked at putting some modular homes on some 10K land. It turned out it was cheaper to go with stick construction. A lot cheaper. I had to abandon it because Maryland came up with Urban Developement Rights points. It's 1 point per acre and 5 points for a house. More if it's a larger house. Each point is last I knew, 5 grand - if you can get them. There is no guarantee you can get them.
@@robertthomas5906 Depends on the stick build, Boxable is about 50K for the house and VEssels are $50-70K (includes HVAC, appliance and auto-curtains) Does not include utility/prep/dirt/concrete. I suspect you were looking at much larger modulars than those. Sticks builds are $120K for 1000sq feet. (and that is builder grade materials)
@@redwolfexr You need to check your numbers. 50K for a boxable with roughly 324 sqft of usable space and the Vessel E7s which isn't currently available in the US? These are not viable options. The Vessel E7s starts at 180K if you're able to mange importing, but slap another 30-40k in transport costs and import taxes. I mean f*ck; you're going to need to purchase your own shipping container (the steel vessel not the transport costs at ~5k) just to get it to the US. A Vessel E7s could easily cost you 250k-300k after site set up, transport, and tariff costs. Pricing for a Boxable isn't much better, with roughly 320-350~ of usable space it is equal or more expensive than traditional construction without the zoning and regulation perks. Traditional construction avoids the stringent zoning requirements and regulations which come with mobile home parks. Boxable is a modular solution, but the international code book and zoning regulations consider it in the same category as a mobile home.
I got into real-estate about 30 years ago and 1 of the 1st lessons I learned was from a friend that had bought a trailer park. My friend had nothing but problems with the park because of the class of tenants that lived in the park. His problem made me seek out upper class properties which attracted upper class tenants which keep my properties in better condition, always pay and don't piss off the neighbors.
Yeah , and generally with my 'lower' end places i've done extremely well, even through the pandemic, however since the pandemic they've certainly done less-good.
You cannot compete with the government protecting these people. Covid was completely one-sided with tenants, and absolutely screwed over every landlord out there.
@@marshall1068 that's why you don't "own" the property, you put it into a LLC, you put your home into a property trust, you build a wall around you and everything you own, that way, when some scum bag lawyer does their cost analysis to figure out if it's worth suing you , they tell their client they won't get anything from you
"people decided they weren't going to pay rent anymore"? gee, i wonder why people were having a hard time paying rent during COVID...this guy sounds a tool, but i guess that's par for the course for landlords
This gives me 2008 vibes. An investment that would have been alright or at least break even suddently goes south and fails due to world cirmcumstances. If COVID didn't happen, this trailer park probably would have still failed, but I don't think you would be giving up quite yet.
I think it depends. I visited a college classmate that recently retired. She lives in a trailer park, but I was surprised by what I saw. It was gated, with a front office, and playground for the kids. The trailers were huge with 3 car parking pads, large porches, and security guards driving the property. It felt more like a resort than a trailer park. Another great video, that helps put things in prospective!
Bad tenants have way too much protection. 1 bad tenant can destroy years of profits very quickly. Between not paying rent, court costs to get them out, repairing the damages, finding new tenants. It all ads up VERY quickly. It can be ever worse in a trailer park. Word gets around fast about bad people and you start losing good tenants if you dont deal with it fast.
Bad timing (2020) that would be near impossible to predict. My first thought with an affordable trailer park is excessive baby sitting. The tiny home idea may have been good. Another thought is parking pads for extended stay RV catering towards transient work force. Leave reliable tenants be but expand towards rv parking pads.
That's what I've found in talking with successful operators. This is a struggle with small parks. The larger parks make enough to support on-site management.
A Tiny House park may invite better quality tenants and maybe some of the tenants may already own their Tiny House and just need a place to park it long term
Sometimes our losses are the largest in time and missed opportunities. It looks like you were able to salvage it but I would not be counting on the checks from the new owners. They may face similar problems and default. I hope they don't for your sake, but going forward I would be cautious before spending the money from that park. Might be good to keep it set aside just in case you have to take over the park again if they default.
So it was like dirt when you bought it and you kept it like dirt after you bought it... 0 added value who would live there? Even sex offenders passed on you ahahaha
On reflection, I'd seriously consider buying into a tiny home community that is close knit and safety, and having lots of amenities. Tiny homes done the right way are the future.
Trailers switched???? What?… did you not get the titles did you not have a bill of sale with the VIN number… You rushed over that pretty quickly go into more detail on this, or did you just not check them out properly
I am a real estate investor (rentals is my thing - section8) and I am super surprised that you thought this deal was good, generally when you gather low end tenants (lets be honest - good quality tenants wont live in a trailer) you should know that they will turn the place into trashland together, I mean like, think about it, its logical. Thats why I never buy multi units and put my section8 tenants in the same building.
Interesting, I’ve been able to do well buying small parks in South Carolina. I noticed that due to the pandemic, and the cost of living going up so high that good people will be forced to downsize. Also more and more people are working from home. Doing one or two homes over time has been much more manageable. I’ll bring in a newer used home, do a lease with an option to purchase and then seller finance the homes to my tenants. I’ve been able to create passive income and minimize the headaches.
Trailer parks in general dont seem logical when you go from a critical thinking standpoint from the head of the snake to the tail. First whos likely to rent a trailer home, people who arent of median income, meaning any costly damages incurred wouldnt be getting reimbursed from them, and instead them getting a charge for a couple of months (depending on the matter of distruction). Second, poorer people will tend to go through any possibility for cash, legal or not (mainly not), resulting in well namely drug dealers. Thirdly is poorer people need a coping mechanism to go through their poverty as life gets hard, hence drug usage, both abused and non abused (mainly abused) amounts, also mainly illegal ones. And lastly trailer parks give the stigma that youre at your lowest withs end, while having some source of revenue, compared to a house or apartment, causing people who dont want threfeeling of being "trailer park trash" to rent small homes or dainty apartments.
What did you expect You bought a trailer park and you own the trailers so you're renting your housing to the worst possible tenant you can get, and you think they're going to pay on time seriously? Now if you own the trailer park and they owned their trailer then you're just having a lot rental You can evict somebody quite easily like that because you're not taking their home you're just having to move it off of your property there's where you should have concentrated on. If you ever buy another trailer park again don't own the trailers only on the land, then you'll get a better quality of tenant and people that will take pride in living at your park because then they're home they're just renting the space from you. Go look at other trailer parks that do this in Myrtle Beach and places like that and you'll see that that concept works best.
Well, I feel for you but from the beginning when they trailer swap happened, you needed to communicate to resolve the issue, seek legal action/advise, (no way I would ever let someone get that crap off on me).
@@InvestmentJoy I mean who takes a situation where you were basically in harms way then turned it around to help others? You’re definitely a good example and I’m just letting you know I see you are being there for youself and your family too.
well instead of trailer park. Consider and look into perhaps Tiny Homes? Could have Different Sizes, so alot of them could be Different prices and could even be Cheaper then brand new Mobile Homes
Thank you for sharing your experience! Great to see Pace Morby's point of view also. Was thinking throughout the video, "What would Pace do?" and boom, he shows up in the video haha
This is why we do not rent our homes but sell them on contract instead. There are not many others ways to make easy money but mobile home parks are right up there.
We run trailer parks like these and we always scrape them and start over with new homes that we finance to the tenets so far we have been really successful.
I thought about a trailer park as an investment but then realized the type of tenants I'd be dealing with. Trailer parks have a reputation for a reason. That's not to say there aren't nice trailer park communities, it's just that the majority are not.
The demo and new trailer route would've been way better. Park across the street from me (upstate NY) has some owner occ's but mostly park owned, they put in brand new single wides they rent out for all in about $1100/mo. fully occupied constantly.
If each trailer was renting for $1100/mo here, we would be in a way different spot. This park was small and the area only supported very low rent rates.
The only way I’d buy a trailer park is if I could make it for the 55 and up community. I’m happy you have a buyer and are making a profit, I’m also sorry you had so many problems.
See when the Moratorium Hit and basically said to Renters Oh, you guys can withhold your rental for now. They should have also went ahead and told the banks that No one has to pay any Loans or Mortgages at all either.
For one, if I had bought trailers from someplace else, I'd have the serial numbers of those purchased trailers in a written contract so there would be no switch-a-roo.
Haha, there are plenty of ways to make money. You just have to become great at something specific that people value, whether you're in a large company or your own business.
Well you’re doing a pretty good job thus far. Your honesty and transparency in your journey is really privilege to watch. Getting to shadow an entrepreneur is something very few have the opportunity to do. Pretty cool. Thanks.
It was a flop, but someone is buying it and you are coming out ahead.... so I guess besides the headache you are just out some opportunity cost you lost putting into this turd. Maybe you can end up owning this again for pennies when the new buyer quits.
When buying property, the deal has to be when you take possession, the property is empty. Do not inherit the old tenants. You can always screen them and rent them back their same unit if you want.
I don't think I'd want to own the trailers. My grandparents had a trailer park in the 50's to the 70's, it only got started when a guy came into their ESSO station from the Midwest pulling a trailer and told them he was working on a construction project in Philly and needed a place to stay in his trailer. My grandfather had like 5 acres behind the garage and the guy asked about renting a spot. My grandfather told him there was no water or electric, and the guy said no problem, he'd put it in. One thing led to another and some other guy working construction moved in next to the first one. Ended up with like 20 trailers. The original guy that came bought some land from my grandfather and built a house. They all ended up being close lifetime friends. Different world now. Too much gov regulation, and unfortunately a random person who pulls in to buy gas, is more likely to be a problem than an asset.
The whole idea of just evicting everyone and trashing those old decrepit trailers and starting fresh def seems like the best idea in hindsight. The problem is, you are too nice. The investors who have been buying trailer parks in my area, starting with my moms park all the way back in 2006 have been ruthless. They come in, identify the decrepit tenant owned trailers and make them fix them or evict them. Any park owned trailers get fixed or trashed. Then the whole value add/rent increase happens. Glad to see you were able to find a deal to get rid of this albatross.
Thanks for the feedback. I just hate the idea of taking advantage of people. I'll never be one of those ruthless trailer park guys. I have a history of being too "nice" & not raising rent on existing tenants. It's hurt me in the long run. Fixing this, but also would advise people not to do it. Reasonable annual increases + market alignment on turnover is normal across my portfolio now.
@@InvestmentJoy I try to stay under market value, but there's just things I can't budge on. There will always be increases, because the Fed is printing the dollar into zero, at which point, who knows what they'll replace it with. Obviously, I'm talking over the span of decades. We'll all be old men by the time the USD starts looking completely untenable. If I really like a new tenant, I might use a temporary promotional "lag" that keeps me extra competitively-priced. I'm also very efficient, I have dog-proof floors, all LED lights, etc. I make sure that overhead stays low, and then I pass that down to the tenant by being so underpriced. And... They still whine about rent increases, lol. Idk, it's a psychology thing I guess. I don't control this currency. Go burn the federal reserve down if you're so annoyed by inflation. Don't yap at me about it.
Owning each trailer in a trailer park, rather than having each unit holder own their own trailer seems like a simmilar situation to a Apartment complex.. I like the owner occupied version as each little repair issue isnt the park owners exspense. Glad to see that someone with expirence and maybe a bigger maitience crew can take this over.
If i were to invest in a trailer park it would be a stricly 55 and older park with extensive background and credit checks. Think quality of tenants over quantity. As reputation builds so would your clients. Plus with everyone retired they would all look out for each other so not as much need for security and most drug addicts dont live that long so the problem kinda works itself out at that point
You are renting trailers, how are you expecting trailer tenets to pay. This was a bad business idea to begin with. Always choose the location of the place and make sure it’s a single family home or condo.
My brothers own their small trailer in a park that has been around since all of our ages had a single digit. The owners kept hiking the lot rent and explained it to the tenants why...and told them all they were gonna sell the place. When some big property company came around trying to buy the place my brothers and almost all of the other people who rented lots got together and bought the place and today my brothers own 1/36th of a trasiler park in FL and their rent only went up $80
The fact of the matter is that people who live in trailers are trashy. Some are extremely nice people, some aren’t. But they’re all trashy. Not sure what you expected in that aspect.
Wow! I lived in free America, no shut downs no mandates, during C19. We prayed for the rest of you. So sorry you fell victim to it. I hope you learned to write down every serial number, make, model, and year, on any and every mobile home, you ever buy. See them with your own eyes, and write it down yourself. Have every title in your hands, before you take possession. Have somebody on site to receive and inspect them as they are delivered.
Trailer parks are AMAZINGLY great businesses. YOU just ignored the well known correct way to run the park. Do NOT own the mobiles. Sell the mobile when you acquire one. Only make money on the lot rent which is the gem. That way the people in the park have no tenant rights and often lose the home when they get behind.
The problems you faced could likely be contributed to broken glass theory. A basic theory where 1 broken window, if left unrepaired will lead others to break more because they believe they will not be punished or caught. Trailer parks have a low bar of entry compared to wealthy communities. Even though you attempted to repair the park, the dice were likely cast long ago.
New mobile homes are like $150-200k. That would make the rent prices pretty high. I could see what your vision was going to be. But your biggest issue that I could see that happened is that out of the 29 homes that you bought? You’re saying that half of them got switched out for older homes. When you bought them, they should’ve come with titles and you should’ve made sure that they didn’t get switched out.
You live and you learn. At least you took the risk and now know the pitfalls of this sort of investment. Meanwhile you've still made a profit and can deploy that money better elsewhere. An overall good endeavor if you ask me.
I know for a fact that trailers can be absolutely deadly in 4 minutes flat. Tiny homes vary, but seem better built. I would rather live in my car than a trailer. My brother, in one of the worse moments of his life, worked in a trailer factory. Those trailers were an absolute joke. And you were trying to move people into rotted crack trailers! Wow!
I haven't watched you in a while (Idk why, videos just don't pop up for being subscribed). But, I did watch you a lot when you were first getting this place and man you had problems from day 1. It was like trailer park boys meets cops meets your friendly local drug dealer. It's great you made money. Any time you can get out of a headache/bad situation with a minor loss or better, take it and go to something else! Too many people get caught up in the time and effort they put in it, but that's gone. Good job Brandon. Also, the covid thing screwed over pretty much every landlord. It's hard to evict people by default anyway. I think your idea of buying land and selling smaller houses is a good idea. I'm not a fan of tiny houses at all, but if the market's there....
Glad to have you back! It's definitely gotten better, just not fast enough. Thank you. It's definitely hard to feel like a win when you don't hit lofty goals you set out with. We're getting better at testing. We have to understand what today's consumer wants.
I had a trailer park when you deal with low end people like at your park. you have many problems. your right build a high quality park and your problems are few because you have quality people.
Really great video thanks for the insight investment joy the quality of video and style top notch as always have been following since the first laundry mat lol
"The government" wasn't too bad here on a LOCAL LEVEL, the federal level is what killed me. They sent their requirements to states and so many local entities were scared to death.
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I agree that the tiny home / park models don't have the same stigma as trailer parks. They say hindsight is 20/20. I hope you are more successful in the future. AND don't give up. There is a great need for small affordable housing.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Somewhere there's a boardroom full of Marketing Executives laughing their ass off at duping Millennials into the idea of tiny homes. Trust me they all go to trailer park status and the same white trash will move right in to your expensive tiny homes
It is always these same people screaming for affordable housing who trash the opportunities they get. Then they cry some more.
I love how honest you are about your situations and you're not click baiting us. That trailer park business seems very challenging and depressing. I really like the tiny house idea though!
Thanks! We've already done one tiny home elsewhere (Video on that somewhat soon).
Imagine being happy someone's scamming poor people
He wasn't nearly equipped enough to run a park, therefor it suffered. Plenty of nice parks that are ran well.
@@InvestmentJoycan I ask you a question would you go into the trailer Parks investments again now knowing what you know and make sure you don't make the same mistakes again because I still hear it's pretty good investment I once heard a woman owns 1,000 trailer Parks all over the Midwest so she's making a fortune heck you probably don't need to own that much probably a good ten to twenty trailer Parks depending on how many mobile homes you have in each trailer Parks like 30 or 40 trailer Parks
@@andrewmorales5485 yeah I'm not opposed to it I've already been asked to participate in another one and I have not turned it down at this juncture I'm not sure if it's going to just going to be an advisory role or more involved
I think it was just really bad timing. Thank you for showing a failure. I like that, your honest Brandon. Your hard work, and showing your viewer's your highs and lows of the process and what it takes to make it is the reason why I watch your channel.
Made 400k in 4 years and trying to frame this as a failure....Love your videos, but this wasn't a failure, it just wasn't the win you had gone into it hoping for.
I got to 200k net napkkin math not 400 listening to this but there was also likely additional costs then shared for the overly simple story telling that YT viewers need.
Even if 400k - I am calling this a failure too - murderers and all of the risks and many months of hassle and putting out more than coming in for years is not worth it for ANYBODY. I don’t think ‘framing’ is occurring in this video.
Even the investors he used they could have done other deals more in line with the bulk of what he does and has down today and accomplished more & faster.
Give it a few days and read the negative comments
So little chance to lose money on value add real estate
@InvestmentJoy Read and laugh you mean? Keep on keeping on my man. Love the content.
People dont realize the stress and anxiety that comes with having so much in you can't easily back out without losing so much. I remember the hell i went thru in 21 building my mat... i can only imagine once the govt started eviction moratorium, you must've been losing your mind.
Great video. Never liked older trailer parks because trailers aren't built to last, and the tenants almost always are a major headache: there's a reason for the stigma against trailer parks. Might work for someone else, but not for me. At least you came out of this more or less in the black, and your idea about tiny homes is intriguing. I suspect it'd attract a different quality of tenant and the construction is much better.
Yeah , similar size, just no stigma.
Not even sure I would do traditional tiny homes - something like Vessel E7s or Boxabls. Plus you don't want them just back to front, need some greenspace.
Trailers CAN last a long time, but usually RENTAL trailers do not. Rather do space rentals than own the units if you are doing trailers. RVs or modulars, same connections.
People like to hate on hipsters and trend-chasers, but those are all the kinds of people that pay their rent and treat things relatively nicely.
I'd take them over the kinds of people that get poverty-trapped in trailer parks.
They're traps for a reason. They suck in all the low IQs and druggies and that's just how reality is, whether people want to be honest about that or not. It's not "stigma" or "prejudice". It's mechanical fact. Dozens of millions of people that lost the genetic lottery have to land at the bottom somewhere. Trailer parks are one of those somewheres.
Yup, have the people own the trailers and charge lot rent. Less hassle.@@redwolfexr
That's a lie , it's how you take care of it
I remember back when you first bought this in 2019, and I thought "glad that's not my baby". Some trailer parks can be decent, but this one was a problem child. When a park has gone downhill, it takes a lot of time, money, and patience to revitalize it. A lot of times the numbers are hard to get working favorably, especially with COVID economics coming into play.
I knew a trailer park flipper. He would buy a park, kick people out one by one and replace them with new trailers and tenants. He would go to all the local trailer home dealers and make them a deal to send new owners his way. He then would pave the park, which raised the value. Then he'd sell it. All he did was flip parks. Dude was rich.
and all he had to do was displace low income people... amazing!
Glad things worked out for you. I do remember expressing my concerns over the quality of tenants when you bought it and wondered if you had purchased a nightmare in disguise.
It's come up a lot from where it was when I bought it. I'm confident the new owners will spend the time and money to make it profitable.
How old do you have to be to learn that no one likes "I told you so"? Beyond that why does it matter what some jerk on youtube thinks?
@@jerbear7952 I'm sorry if I hurt your feelings Karen. Google: Safe space ...you'll be fine.
@@jerbear7952
The signs were there, but I think everyone, including Investment Joy thought the signs weren't strong enough. We were all wrong.
Personally, I'm very picky about tenants. If I wouldn't live in a duplex with them, I don't want them in one of my 350k - 550k assets. I've always thought the people are everything. Garbage people = garbage income and garbage treatment of the property. But, I wanted to see Investment Joy succeed.
Ben Mallah made his fortune off of destructive, mentally broken college students on section 8. I thought maybe Investment Joy could make this work, too. Everyone has their own niche, but I guess this was just too much scum to take on.
I've lived in the trailer park im currently in for 7 years. Never late on rent. Never had a write up. I own my trailer. Even through the pandemic i payed it. The company bought over 60 new trailers. It costs over 1k a month. No amenities. Most of the trailers are vacant, and dont hold tenants longer than a year. 2 at most. If he raises the lot rent again ill move. Trailer parks aren't for middle class people that can afford 1k+ rent lol. They are for low income people. Trailer parks are also wrose than HOAs in a lot of ways.
Low income? 1k a month plus food gas and amenities? Get a grip.
@@coledude2548 That would be 1K (and more) a month, for nothing but the flat spot the trailer is sitting on. Water, gas/electric, all extra and often as not there will be some monopoly 'you can only get this crappy&expensive internet service because they have a contract' situation.
He will raise it every year till the end of time. Thats how all trailer parks roll
Wasn't there any recourse against the seller who had "switched" 15 or so trailers? I can't imagine their having taken such a risk to begin with. How could they have been so sure that you hadn't at least taken pictures, and noted the VIN's, after which you would have refused delivery of any that didn't match?
It's called "Due diligence". He didn't.
Rookie mistake.
@@dwightsmith5174 Except he's nowhere near a rookie, and how could anyone as a seller think they would get away with such a thing? It's like a used car dealer delivering the wrong car 15 times, hoping nobody will notice.
he blames everyuone but himself and the people who live there suffer---
@@mtsaz100 I thought there might be more to the story, because I would think no seller could have been so dumb as to try such a thing.
@@Christmas-dg5xc I agree, I have no idea why he did not expand on this issue and tell us what the resolution was
A simple 9 minute video with a million dollars worth of experience! 👍
Glad you liked it!
The first problem....trailer park.
Theres a 55+ trailer park in my community that has owner-occupied trailers that are well maintained. Other than that, the other parks are section 8 types with the typical drama and crime.
It's a struggle in my part of Ohio. Stigma keeps most of the great tenants out.
Trailer parks in my area are like the 55+, clean and well cared for, they are just outside my county. There is only one area with trailers left in my county. Now as the trailers age and people move out or die, the trailers are removed and the deal with the county is the trailer lots are sold as new home lots. Profitable for the owner and the county can continue to upgrade the area.
It's a good idea to think about 55+ type parks as a potential solution. Thanks for sharing.
Young fools sometimes turn into old folks.
I was really hoping for an underdog story with this trailer park. Nonetheless, I'm glad to see you're at least not taking a massive loss on it. Can't wait to see what the future has in store for you.
This has definitely been the worst performing item in the portfolio. Plenty of wins on other ends that I'm hoping to talk about over the new few months. Thanks!
Brandon,
Would you ever entertain the idea of an RV park? I know you mentioned if you had to do this over again you'd just buy land, or a existing trailer park with the intention of bulldozing, but what about a strictly RV(no mobile home) park?
I'm not opposed so long as I understand it better than I did this one
At least with an RV park, you are not dealing with deadbeat Pond scum drug addicts
@@bigman55434Depends on the park. If you allow long term RV renters you sure can have similar problems. There are some sketchy, crime ridden RV parks in my area.
I have a RV / Mobile home park. Keep the RVs no older than 10 years old, background check the tenants, stick to your rules, and keep your rents at market rate. You will attract the right folks and keep the problems away. The park owns a couple homes and the rest are tenant owned. We just started adding tiny homes and hope to add more if it works out. When buying a park as a mom and pop you have to play chess...keep the cash flow going while trying to figure out your next move that will increase cash flow without having to put more money into it.
@@marccocke9924 it's good advice, there was a whole segment that we didn't record with Pace morby or at least I don't think that we're able to show it where he was talking about his own trailer park that was in a very similar situation as mine. You're on the right thought process, the problem for for me has been it's been a very expensive learning process
Don't rent the homes. Sell the homes and rent the lot the trailer sits in. Fixing the trailer after ever renter will put u in the negative real fast.
just put that money in a 5% intrest bud or give it to me and ill do it better
Part of me wonders if you did all of the investment, then walked away before it could actually generate a return.....
Don't go to tiny.
Maybe an old idea would be better? In the 1960s in suburban Maryland they made a whole bunch of 1000 sq/ft homes. Two bedrooms, one dining room, kitchen, living room. They also had a basement. You had to go up about 6 steps to get into the house. The basement was very basic. Washer/dryer and a nice storage area. Recently I looked at that old neighborhood. I was floored. A 1000 sq/ft house just sold for 390K. Trulia lanham/seabrook Maryland. Fowler lane area.
Those will cost you $150K to build today. You can put a modular prefab down for $80K. The main cost is the land you build it on, and if you build it on crap land they are work crap.
@@redwolfexr I just looked at putting some modular homes on some 10K land. It turned out it was cheaper to go with stick construction. A lot cheaper.
I had to abandon it because Maryland came up with Urban Developement Rights points. It's 1 point per acre and 5 points for a house. More if it's a larger house. Each point is last I knew, 5 grand - if you can get them. There is no guarantee you can get them.
@@robertthomas5906 Depends on the stick build, Boxable is about 50K for the house and VEssels are $50-70K (includes HVAC, appliance and auto-curtains) Does not include utility/prep/dirt/concrete.
I suspect you were looking at much larger modulars than those.
Sticks builds are $120K for 1000sq feet. (and that is builder grade materials)
@@redwolfexr You need to check your numbers. 50K for a boxable with roughly 324 sqft of usable space and the Vessel E7s which isn't currently available in the US? These are not viable options.
The Vessel E7s starts at 180K if you're able to mange importing, but slap another 30-40k in transport costs and import taxes. I mean f*ck; you're going to need to purchase your own shipping container (the steel vessel not the transport costs at ~5k) just to get it to the US. A Vessel E7s could easily cost you 250k-300k after site set up, transport, and tariff costs.
Pricing for a Boxable isn't much better, with roughly 320-350~ of usable space it is equal or more expensive than traditional construction without the zoning and regulation perks. Traditional construction avoids the stringent zoning requirements and regulations which come with mobile home parks. Boxable is a modular solution, but the international code book and zoning regulations consider it in the same category as a mobile home.
I got into real-estate about 30 years ago and 1 of the 1st lessons I learned was from a friend that had bought a trailer park. My friend had nothing but problems with the park because of the class of tenants that lived in the park. His problem made me seek out upper class properties which attracted upper class tenants which keep my properties in better condition, always pay and don't piss off the neighbors.
Yeah , and generally with my 'lower' end places i've done extremely well, even through the pandemic, however since the pandemic they've certainly done less-good.
I don't know about upper class tenants. I like having tenants who don't have the money to hire an attorney to sue me.
You cannot compete with the government protecting these people. Covid was completely one-sided with tenants, and absolutely screwed over every landlord out there.
@@marshall1068 that's why you don't "own" the property, you put it into a LLC, you put your home into a property trust, you build a wall around you and everything you own, that way, when some scum bag lawyer does their cost analysis to figure out if it's worth suing you , they tell their client they won't get anything from you
"people decided they weren't going to pay rent anymore"? gee, i wonder why people were having a hard time paying rent during COVID...this guy sounds a tool, but i guess that's par for the course for landlords
I did a lot of work in that park for Justin and really enjoyed it. I think you did get stooped on the trailers from Columbus though
This gives me 2008 vibes. An investment that would have been alright or at least break even suddently goes south and fails due to world cirmcumstances. If COVID didn't happen, this trailer park probably would have still failed, but I don't think you would be giving up quite yet.
Hard to say, my repair/etc costs would have been a fraction. Most of the $ I spent on this was inflated.
I think it depends. I visited a college classmate that recently retired. She lives in a trailer park, but I was surprised by what I saw. It was gated, with a front office, and playground for the kids. The trailers were huge with 3 car parking pads, large porches, and security guards driving the property. It felt more like a resort than a trailer park. Another great video, that helps put things in prospective!
There are some great, well managed locations out there! The bigger the park, the easier it is to afford full time on-site management.
What about a Senior only trailer park..would that work?
What city and state is this?
Bad tenants have way too much protection.
1 bad tenant can destroy years of profits very quickly. Between not paying rent, court costs to get them out, repairing the damages, finding new tenants. It all ads up VERY quickly.
It can be ever worse in a trailer park. Word gets around fast about bad people and you start losing good tenants if you dont deal with it fast.
Bad timing (2020) that would be near impossible to predict. My first thought with an affordable trailer park is excessive baby sitting. The tiny home idea may have been good. Another thought is parking pads for extended stay RV catering towards transient work force. Leave reliable tenants be but expand towards rv parking pads.
That's what I've found in talking with successful operators. This is a struggle with small parks. The larger parks make enough to support on-site management.
A Tiny House park may invite better quality tenants and maybe some of the tenants may already own their Tiny House and just need a place to park it long term
I'm definitely interested in building a tiny development or a place for them to park, but we'll see how the next year goes.
What’s does it cost per unit to do something like that? Seems like a solid idea.
I liked how you dealt with it. Your ability to salvage was great.
Thanks!
He got lucky finding a sucker to buy it.
Bubbles lives there with his kitties.
Sometimes our losses are the largest in time and missed opportunities. It looks like you were able to salvage it but I would not be counting on the checks from the new owners. They may face similar problems and default. I hope they don't for your sake, but going forward I would be cautious before spending the money from that park. Might be good to keep it set aside just in case you have to take over the park again if they default.
Your first mistake is renting trailers, you rent the spot not the trailer if they own the trailer they will not easily walk away from it!
Hey Brandon it's great seeing you posting videos again. It's been awhile I hope everything is going well.
So it was like dirt when you bought it and you kept it like dirt after you bought it... 0 added value who would live there? Even sex offenders passed on you ahahaha
On reflection, I'd seriously consider buying into a tiny home community that is close knit and safety, and having lots of amenities. Tiny homes done the right way are the future.
Trailers switched???? What?… did you not get the titles did you not have a bill of sale with the VIN number…
You rushed over that pretty quickly go into more detail on this, or did you just not check them out properly
People who live in trailer parks don't have a lot of money and can sometimes not be the ideal tentants for many reasons.
If you grew up poor you would know...
*You cant move a single wide trailer*
You can but you end up with kindling and sheet aluminium
GOVERNMENT: Shuts everything down!!! Yet, you are STILL RESPONSIBLE FOR PAYING YOUR BILLS 💸!$!$! Who knew!!! 😮
I am a real estate investor (rentals is my thing - section8) and I am super surprised that you thought this deal was good, generally when you gather low end tenants (lets be honest - good quality tenants wont live in a trailer) you should know that they will turn the place into trashland together, I mean like, think about it, its logical. Thats why I never buy multi units and put my section8 tenants in the same building.
Interesting, I’ve been able to do well buying small parks in South Carolina.
I noticed that due to the pandemic, and the cost of living going up so high that good people will be forced to downsize.
Also more and more people are working from home.
Doing one or two homes over time has been much more manageable.
I’ll bring in a newer used home, do a lease with an option to purchase and then seller finance the homes to my tenants.
I’ve been able to create passive income and minimize the headaches.
Trailer parks in general dont seem logical when you go from a critical thinking standpoint from the head of the snake to the tail. First whos likely to rent a trailer home, people who arent of median income, meaning any costly damages incurred wouldnt be getting reimbursed from them, and instead them getting a charge for a couple of months (depending on the matter of distruction). Second, poorer people will tend to go through any possibility for cash, legal or not (mainly not), resulting in well namely drug dealers. Thirdly is poorer people need a coping mechanism to go through their poverty as life gets hard, hence drug usage, both abused and non abused (mainly abused) amounts, also mainly illegal ones. And lastly trailer parks give the stigma that youre at your lowest withs end, while having some source of revenue, compared to a house or apartment, causing people who dont want threfeeling of being "trailer park trash" to rent small homes or dainty apartments.
What did you expect You bought a trailer park and you own the trailers so you're renting your housing to the worst possible tenant you can get, and you think they're going to pay on time seriously? Now if you own the trailer park and they owned their trailer then you're just having a lot rental You can evict somebody quite easily like that because you're not taking their home you're just having to move it off of your property there's where you should have concentrated on. If you ever buy another trailer park again don't own the trailers only on the land, then you'll get a better quality of tenant and people that will take pride in living at your park because then they're home they're just renting the space from you. Go look at other trailer parks that do this in Myrtle Beach and places like that and you'll see that that concept works best.
After living in Westwoods MHP Amherst Ohio for several years, i walked away and will never recommend anyone buy a trailer.
Well, I feel for you but from the beginning when they trailer swap happened, you needed to communicate to resolve the issue, seek legal action/advise, (no way I would ever let someone get that crap off on me).
I’ve been here watching your process as Meet Kevin introduced you to us! I’m happy to see you’re letting go! You have the biggest heart BTW!❤❤❤
Aw thanks
@@InvestmentJoy I mean who takes a situation where you were basically in harms way then turned it around to help others? You’re definitely a good example and I’m just letting you know I see you are being there for youself and your family too.
well instead of trailer park. Consider and look into perhaps Tiny Homes? Could have Different Sizes, so alot of them could be Different prices and could even be Cheaper then brand new Mobile Homes
Wouldnt a trailer park be a good investment? No repairs as they own the trailer, they just pay you lot rent?
Thank you for sharing your experience! Great to see Pace Morby's point of view also. Was thinking throughout the video, "What would Pace do?" and boom, he shows up in the video haha
Pace is a rockstar. Hoping he comes back for the Pumpkin show next year and I'll find a big project to collaborate on.
Trailers have titles and vin numbers..the units shipped from Columbus werent checked on arrival?
Been a follower and subscriber since 2018!
Much love from a fellow Brandon bro. 💪🙏♥️
This is why we do not rent our homes but sell them on contract instead. There are not many others ways to make easy money but mobile home parks are right up there.
We run trailer parks like these and we always scrape them and start over with new homes that we finance to the tenets so far we have been really successful.
That seems to be the best way to do it.
I thought about a trailer park as an investment but then realized the type of tenants I'd be dealing with. Trailer parks have a reputation for a reason. That's not to say there aren't nice trailer park communities, it's just that the majority are not.
Chillicothe is a lost cause. My garage was broken into three times this year, probably the dudes that try to sleep in your landromat.
I don't feel it's a lost cause, but there's alot that has to happen to turn it around.
(Maybe so on the laundromat guys) Police were there last night.
The demo and new trailer route would've been way better. Park across the street from me (upstate NY) has some owner occ's but mostly park owned, they put in brand new single wides they rent out for all in about $1100/mo. fully occupied constantly.
If each trailer was renting for $1100/mo here, we would be in a way different spot. This park was small and the area only supported very low rent rates.
Idk man people renting trailers don't seem like people who have money or steady income
Pro tip: Don't show this video to the trailer park buyers before you close the sale on the property.
I delayed posting the videos till we had closed
The problem was covid-19 but it was a great investment
The only way I’d buy a trailer park is if I could make it for the 55 and up community. I’m happy you have a buyer and are making a profit, I’m also sorry you had so many problems.
Thanks for watching. I have a few friends who are succeeding with the 55+ parks. Glad to move on to other projects.
@@InvestmentJoy good luck to you!
See when the Moratorium Hit and basically said to Renters Oh, you guys can withhold your rental for now. They should have also went ahead and told the banks that No one has to pay any Loans or Mortgages at all either.
The idea people used that not to pay the rent is sickening. Those people need to pay the higher rents of today , because of what they did to others.
For one, if I had bought trailers from someplace else, I'd have the serial numbers of those purchased trailers in a written contract so there would be no switch-a-roo.
Excellent content. The good, the bad, the ugly, & the outcome... no glossing over or BS... TY
Thx
Low income renters tend to be problems. Not all but the majority.
Occasionally an entrepreneur will discover that the hustle isn’t worth the hassle.
Haha, there are plenty of ways to make money. You just have to become great at something specific that people value, whether you're in a large company or your own business.
Well you’re doing a pretty good job thus far. Your honesty and transparency in your journey is really privilege to watch. Getting to shadow an entrepreneur is something very few have the opportunity to do. Pretty cool. Thanks.
Don't buy a trailer park, unless you live there and can keep on top of things.
Even then...things could be very unpleasant.
Being present definitely helps. The people I know who are really succeeding with them have extremely high quality on-site live-in managers.
He stopped posting?
interesting video joy
Love the transparency... thanks for sharing. A lot to learn here.
Thanks!
It was a flop, but someone is buying it and you are coming out ahead.... so I guess besides the headache you are just out some opportunity cost you lost putting into this turd. Maybe you can end up owning this again for pennies when the new buyer quits.
The new buyer will do well with it. And I think I'm happy to avoid trailer parks for many, many years to focus on what's already succeeding for me.
sometimes breaking even isn't the worst thing in the world.
When buying property, the deal has to be when you take possession, the property is empty. Do not inherit the old tenants. You can always screen them and rent them back their same unit if you want.
I don't think I'd want to own the trailers. My grandparents had a trailer park in the 50's to the 70's, it only got started when a guy came into their ESSO station from the Midwest pulling a trailer and told them he was working on a construction project in Philly and needed a place to stay in his trailer. My grandfather had like 5 acres behind the garage and the guy asked about renting a spot. My grandfather told him there was no water or electric, and the guy said no problem, he'd put it in. One thing led to another and some other guy working construction moved in next to the first one. Ended up with like 20 trailers. The original guy that came bought some land from my grandfather and built a house. They all ended up being close lifetime friends.
Different world now. Too much gov regulation, and unfortunately a random person who pulls in to buy gas, is more likely to be a problem than an asset.
why would anyone want to live there it looks like a slum
Moral of the story:
NEVER
EVER
TRUST
THE GOVERNMENT!
EVERRRRRRRRRR.
The whole idea of just evicting everyone and trashing those old decrepit trailers and starting fresh def seems like the best idea in hindsight. The problem is, you are too nice. The investors who have been buying trailer parks in my area, starting with my moms park all the way back in 2006 have been ruthless. They come in, identify the decrepit tenant owned trailers and make them fix them or evict them. Any park owned trailers get fixed or trashed. Then the whole value add/rent increase happens. Glad to see you were able to find a deal to get rid of this albatross.
Thanks for the feedback. I just hate the idea of taking advantage of people. I'll never be one of those ruthless trailer park guys. I have a history of being too "nice" & not raising rent on existing tenants. It's hurt me in the long run. Fixing this, but also would advise people not to do it. Reasonable annual increases + market alignment on turnover is normal across my portfolio now.
@@InvestmentJoy
I try to stay under market value, but there's just things I can't budge on. There will always be increases, because the Fed is printing the dollar into zero, at which point, who knows what they'll replace it with. Obviously, I'm talking over the span of decades. We'll all be old men by the time the USD starts looking completely untenable.
If I really like a new tenant, I might use a temporary promotional "lag" that keeps me extra competitively-priced. I'm also very efficient, I have dog-proof floors, all LED lights, etc. I make sure that overhead stays low, and then I pass that down to the tenant by being so underpriced.
And... They still whine about rent increases, lol. Idk, it's a psychology thing I guess. I don't control this currency. Go burn the federal reserve down if you're so annoyed by inflation. Don't yap at me about it.
Owning each trailer in a trailer park, rather than having each unit holder own their own trailer seems like a simmilar situation to a Apartment complex.. I like the owner occupied version as each little repair issue isnt the park owners exspense. Glad to see that someone with expirence and maybe a bigger maitience crew can take this over.
If i were to invest in a trailer park it would be a stricly 55 and older park with extensive background and credit checks. Think quality of tenants over quantity. As reputation builds so would your clients. Plus with everyone retired they would all look out for each other so not as much need for security and most drug addicts dont live that long so the problem kinda works itself out at that point
Failure of a trailer park…hmm that’s usually not a great business model unless it is a seniors only retirement community.
That actually looks like a slum.
You are renting trailers, how are you expecting trailer tenets to pay. This was a bad business idea to begin with. Always choose the location of the place and make sure it’s a single family home or condo.
My brothers own their small trailer in a park that has been around since all of our ages had a single digit. The owners kept hiking the lot rent and explained it to the tenants why...and told them all they were gonna sell the place.
When some big property company came around trying to buy the place my brothers and almost all of the other people who rented lots got together and bought the place and today my brothers own 1/36th of a trasiler park in FL and their rent only went up $80
The fact of the matter is that people who live in trailers are trashy. Some are extremely nice people, some aren’t. But they’re all trashy. Not sure what you expected in that aspect.
Wow! I lived in free America, no shut downs no mandates, during C19. We prayed for the rest of you. So sorry you fell victim to it. I hope you learned to write down every serial number, make, model, and year, on any and every mobile home, you ever buy. See them with your own eyes, and write it down yourself. Have every title in your hands, before you take possession. Have somebody on site to receive and inspect them as they are delivered.
Trailer parks are AMAZINGLY great businesses. YOU just ignored the well known correct way to run the park.
Do NOT own the mobiles. Sell the mobile when you acquire one. Only make money on the lot rent which is the gem. That way the people in the park have no tenant rights and often lose the home when they get behind.
Being a landlord is a tough road to go especially in a unfriendly landlord state. Maintenance adds up so get prepared.
I wouldnt want this man as landlord ever. Variation flipping increase rents. Screw him.
The problems you faced could likely be contributed to broken glass theory. A basic theory where 1 broken window, if left unrepaired will lead others to break more because they believe they will not be punished or caught. Trailer parks have a low bar of entry compared to wealthy communities. Even though you attempted to repair the park, the dice were likely cast long ago.
It's a lot of work and headache but you got out a better man. I'm sure not everybody could say the same.
Yeah, Ive met so many that feel they print money so I wanted to show the other side
New mobile homes are like $150-200k. That would make the rent prices pretty high. I could see what your vision was going to be. But your biggest issue that I could see that happened is that out of the 29 homes that you bought? You’re saying that half of them got switched out for older homes. When you bought them, they should’ve come with titles and you should’ve made sure that they didn’t get switched out.
R u in jail???
We should do a joint venture in Spokane, WA
You live and you learn. At least you took the risk and now know the pitfalls of this sort of investment. Meanwhile you've still made a profit and can deploy that money better elsewhere. An overall good endeavor if you ask me.
I know for a fact that trailers can be absolutely deadly in 4 minutes flat. Tiny homes vary, but seem better built. I would rather live in my car than a trailer. My brother, in one of the worse moments of his life, worked in a trailer factory. Those trailers were an absolute joke. And you were trying to move people into rotted crack trailers! Wow!
More insight as to why trailers are no good?
I haven't watched you in a while (Idk why, videos just don't pop up for being subscribed).
But, I did watch you a lot when you were first getting this place and man you had problems from day 1. It was like trailer park boys meets cops meets your friendly local drug dealer.
It's great you made money. Any time you can get out of a headache/bad situation with a minor loss or better, take it and go to something else! Too many people get caught up in the time and effort they put in it, but that's gone. Good job Brandon.
Also, the covid thing screwed over pretty much every landlord. It's hard to evict people by default anyway. I think your idea of buying land and selling smaller houses is a good idea. I'm not a fan of tiny houses at all, but if the market's there....
Glad to have you back!
It's definitely gotten better, just not fast enough.
Thank you. It's definitely hard to feel like a win when you don't hit lofty goals you set out with.
We're getting better at testing. We have to understand what today's consumer wants.
I had a trailer park when you deal with low end people like at your park. you have many problems. your right build a high quality park and your problems are few because you have quality people.
Correct, and I thought it could be a process-over-time, and it really didn't work.
Really great video thanks for the insight investment joy the quality of video and style top notch as always have been following since the first laundry mat lol
Thanks
I think the problem with your model is that it seems you supplied the house instead of letting people bring their own.
Thank you for your honesty--The scariest words you will ever hear: " I am from the government, I am here to help you."
"The government" wasn't too bad here on a LOCAL LEVEL, the federal level is what killed me. They sent their requirements to states and so many local entities were scared to death.
growing it at a slower pace (fix and rent one at a time) or buying a much smaller park shouldn't be as hard
So……where did that $25 million go with that government agency. 🤔.