You buy an individual lot, then you go buy a double wide directly from the the manufacturer or from a dealer, and then you drop it, you set it, you tie an electrical sewer, and then you turn around and sell it. Basically, it is the lowest form of development and the safest form of development that you could do. He's making, you know, $50 $60,000 profit net after realtor fees, closing costs, and everything. Guys, I'm really excited about today's video. I have a special guest, Chris RDE. You know, it's been great to get to know you a little bit, Chris. We met a couple years ago in Phoenix, and since I met you, I was really drawn to you quite a bit because you talk quite a bit about your family, about parenting, homeschooling, marriage, and sharing in all of this together. And the world needs more of that. So, thank you for that. Yeah, I appreciate that. And I'm now a southern boy like you. You're in Louisiana. I moved to Tennessee recently. And Chris, I learned something new. I learned some new vocabulary. I did not know this, but I've learned since being in Tennessee that y'all is singular and all y'all is plural. That's right. Is that right? That's right. Yep. You picking up on the vernacular. Um Chris, I don't know if you know this, but I do a lot of development spec flipping where I'll buy a lot, build it ground up with no buyer in mind, and then sell it on the open market. So, I'll build to sell, right? I I'll try to match what the market looks for, match price point, finishes, design, furnish it sometimes, and it's a model that I've done real well with. But you're doing something that I think is succeeding very well down south, and maybe this will be somewhere everywhere, but you're really doing affordable housing. You're doing a strategy that involves uh manufactured homes or modular homes. I'd love for you to spend some time here on this video and really break down this model and maybe share some numbers like it can be high level but what can someone expect and can people get into this and what's the opportunity here? Let's just maybe start from the beginning and break it down. First and foremost, entrepreneurship, real estate investing is a moving target. You're always having to recalculate, recalibrate, and refocus your attention on what's not working anymore over to trying to figure out what's working, right? And as you know, uh, real estate had a shift here in 2022 when interest rates increased. Uh, we we had insurance double and triple. We had cost of material and labor double. Everything just went up. So, this really affected the real estate market. And by default, I was already in the affordable space. I own 19 mobile home parks. I do a lot of affordable stuff, but I also, you know, do a ton of wholesaling, flipping single family homes. we saw a huge pullback on the single family brick on slab houses. So, you know, we had to make some adjustments and I started looking around and trying to figure out what's my next target to where I can, you know, make some money on on my, you know, medium money, which I call, you know, flipping. Fast money is, you know, be your W2, your small business, wholesaling. Uh, medium money is going to be your flips, right? Because, you know, single family home flips just are, you know, days on market are going up and you, you know, you're having to find way below the average price range and it used to be 250 and below where I live and now even 250 is sitting on the market. We almost have to find 200 and below, you know, which is tough. Yeah. So, I had a student of mine, he um he came and he spent a day with me because he wanted to know more about the mobile home park space and he had a dealer's license and he was talking about how he had flipped over a hundred double wides uh doing what's called the trailer land home package and he was telling me how fast they sell. They sell within a week, two weeks max. And you know, you can you can sell them for 200 and below, 225 and below, and he's making, you know, 50 $60,000 on a bad one, $40,000 profit net after realtor fees, closing costs, and everything. And and it doesn't sit longer than 30 days max. So I was like, well, this is probably about a year, year and a half ago. Chris, you said land and the unit package, meaning these aren't a park thing. This is buy a lot, put the baby on there, and sell the package. sell it as a land and a mobile home, right? It's called a a land home package. I like to call it trailer land home package because then people don't understand like it's a mobile it's a modular home. So the technical term is land home package. That's what it's called in the in the manufactured industry where you you buy an individual lot and then you go buy a double wide directly from the the manufacturer or from a dealer and then you drop it, you set it, you tie it electrical, sewer, all that stuff, water, y water, all that stuff. and then you turn around and sell it. Basically, it is the lowest form of development and the safest form of development that you could do. Now, Chris, uh just make sure everybody understands this, you know, the the manufactured home, it it's on a chassis and it's on a trailer, but once you affix it to a foundation, it now becomes real estate. Correct. It becomes real property. You uh you you do what's called quieting quieting the title. Every state has different things you can call it's called real property. It's in the north it's in the south we call or in Louisiana we call it um immobilization or demobilization where you you make it where you get rid of the title. Yeah. And it becomes real property with the foundation. Yeah. Because before then like on in trailer parks or mobile home parks you know you can pick it up and move it. So it's sort of like a t it's on a title like a car would be. But once you attach it and it's permanent now to the foundation, now it's real property. And that's significant because you're you're flipping these to a buyer who's going to be owning the land and the trailer as one thing now, not two separate things anymore. That's right. And the benefits are you can get brand new product, you can get a lot of square footage, and it's affordable. What's the square footage on these double wides? Typically, 1500 to 2,000 square feet. threebedroom, two bath four most of the time it's four twos we four twos 42 yeah overall uh we've been doing that now for about a year and man we we um we we're seeing great success you know we we're not we haven't had anything sit longer than 30 days not not even 30 I think the longest we've had sit was 21 days a lot of stuff selling cash within seven days of hitting the market hey just a quick thanks to one of our sponsors and we'll get right back to the video this video is brought to you by Propwire wire. Now, I get asked all the time how to find motivated seller leads. And Propwire is simply the best software for finding leads and downloading lists. And the best part is it's 100% free and there are no limit to how many leads you can download. Proper has vacant houses, pre-foreclosures, absentee owners, reos, auctions, high equity properties, probate, tired landlords, and more. Plus custom filters and stack lists so that you can laser target the most motivated sellers in your area. Plus, they have cash buyers and private lenders nationwide, so you can quickly wholesale houses and fund your rehab projects. Oh, and one more thing. This is not some 7-day free trial that requires a credit card. Anyone can create a free account with just their email address and start building lists and downloading leads for free right away. Check it out at joinpropwire.com. Now, there are a few nuances to this that you got to be aware of. You can't do this anywhere. You got to make sure the land is zoned for mobile homes. Mhm. You got to look out for septic, you know, because septic will kill your numbers. You got meaning you it leeches and you you don't need an engineered septic or something like that. Right. Right. It might be it might be some type of engineered septic that cost you $20,000 versus a regular septic that might only run 3500 to six grand. Yeah. So, you can't be no dummy and do this. There are some protocols. You got to call the city and get, you know, approvals and and and make sure that you can actually do all this. Same with well. Can you get water without Correct. A well, they're going to charge you 20 grand to drill it. Whether they find water or not, you still got to pay the well driller, you know. So, you got to know, you got to do your homework still on what you're doing. Yep. I mean, city sewer and city water is obviously ideal. Easier. Yeah. Yeah. If you can get that. But I can tell you this model does really well in the outskirts of a major city in the rural areas on an acre to two acre land. You're usually going to have a country boy that a brand new double wide. And you got to get out of your mindset right now that it's a manufactured home. It's a double wide. They're going to want it because it's it's brand new and it's affordable. It's brand new. It's affordable. And and I'm just going to shoot you straight. I mean, that country boy his whole life in his mind if he bought an acre of land or two acres of land with his brand new double wide. He made it. He's arrived. Yeah. That's it, man. And that and because a lot of people like, man, why would people want to live in that? They can go to a house for maybe they can get a 1,500 foot house for the same price or a little bit more, but you got to think that they're going to be on probably a quarter acre of land or less. They're going to have neighbors. They can't go and piss on the backyard. You know, that's that's huge. Shoot guns off their back porch. Yep. They they can shoot a possum or a raccoon or squirrel off the back porch. They can dig themselves a pond. They can build a pole barn. There's so many benefits and and I think a lot of with the craziness of the world, I think more people gravitating away from the city, they want space. I mean, you've done it. You've done it. I'm the perfect example. Now, I'm a I'm on the luxury side of that. But I see the movement is huge. If you look at down south, Chris, there is mass movement into Tennessee, North and South Carolina, uh Kentucky, Louisiana, all of it, because people want out of the HOA and they want some land. They want to do a garden. they want to have some animals. Uh, and that's all the way from affordable, what you're talking about, all the way up to luxury, but that movement is huge. And I think we're going to see more and more of that in the next five or 10 years. I mean, it's freedom, right? And with the the crunch on freedom, as we saw with the last, you know, administration and all the, you know, in CO and all that stuff that went on, I mean, people just want they want their freedom. They want space. And talk to me about some numbers. You want to stay there's a certain price point that you try to stay under on the sale. What can we sell these for? Do you have some basic parameters on where you want to be? Yeah, you want to stay in the southeast. The southeast is going to, you know, people love their their mobile homes in the southeast and you want to stay in affordable areas. So, let's go over some price points. We'll start with Panama City because, you know, that's that's going to be different than the Tampa area. We're trying to we're trying to buy land acquisition for about 20 an acre for about 20,000. that appraises for around 40 to 45. So you're gra you're capturing equity on the buy side. You're capturing you're buying at 50 cents on the dollar in the land because you can't pay 45,000 for the and pay full retail. So you're making money when you buy back to the fundamentals. So over there we're paying about 20,000 an acre in the Lakeland area. All those other areas in Tampa, we're paying we can pay about 40 to 45, but the but the property an acre appraises for 70 75 80. So just 50 cents on the dollar is where you want to be. And then in the South Georgia, we're we're paying roughly the same thing, 20,000 or 15,000 an acre. Okay? So, that's your first perimeter. You you get that under contract. Second thing you're going to do is you're going to call the city and and see what it's zoned for. Is it zoned for for mobile homes? If it's not, then obviously you can't do anything with it. You maybe want to wholesale that to a, you know, maybe a builder. If you got it for 50 cents on a dollar, don't let it go. Call a contractor that's building stick and brick houses and wholesale it to them. they'll buy it from you for, you know, 30 grand, make you 10 grand. But if it checks off, you got you you can do a mobile home. From there, what you want to do is pull comps in the area. That's that's going to be your next thing. After you find out it's zoned, you got under contract, then you find out zoning, then you're going to pull comps of double wides and single wides in the area. What sold, there's typically going to be somebody that bought a a double wide or or a manufacturer that dropped one and they sold. So, you want to be around that 215 to 225 range if you're paying 20,000 an acre. If you're paying 40,000 an acre, like where we're at in the Lakeland area, we're retailing for around 285 over there, but we're retailing for two. Our numbers are way better. We're like, for instance, we have a we have one we're going to be closing on. We're making 85,000, which is not normal. I love the Florida Tampa Bay area market. We the numbers are just inflated. you can make way we almost make a third more profit than we do in Georgia and in the Panama City area. So we we pull the comps. We you know if I'm paying 20,000 an acre, I'm probably going to want to be around that 250 to 225 comp. If you can find a comp that's somewhere in that area, then you're golden, right? So my next step would be you're going to want to start getting prices on, you know, if it if you have to put a septic what that's going to cost. Hopefully, it's city sewer and city water, but if it's not, you know, a good a good amount of times this is being done in a rural area, so you're having to, you know, get a septic or dig a well. Get a price on that. Make sure it doesn't exceed, you know, five, six grand for a septic, you know, because there's some areas, I know, I had a couple students trying to do this in Ohio and and they got prices on septic was like $20,000. It killed the deal. Then once you have all that lined up, you want to call a manufacturer. You want to go to the dealership or you can come to me if you're in the south. I can sell you at wholesale prices. I have my dealer's license for that point. So, I can buy direct to seller. And then if you want to be a real real estate gangster, then you go get your own dealer's license, right, in your area. So, you can buy direct to manufacture. You got to stack up all these profit margins, right? You want to take out the middleman and vertically integrate. That's what I've done. Is it hard to get a dealer license? It It's a state-by-state basis, Jerry. Some states are really hard. Louisiana was super hard to get a license. is the only reason I was able to get a license cuz I partnered up with a guy that already had a license. Georgia was super super easy to get one. Florida is uh not too too bad, but there's some red tape. Is the license where you're transacting or selling or just where you're registered as a business owner? You you have to like be registered as a business owner. So, you're going to have to have a you know a building piece of property, a building, a telephone number. But I but I could do it in Tennessee but then do deals in Florida, right? Like that's okay. That's another great point. We're a Clayton manufacturer dealer. Okay. So, Clayton has dealer manufacturers all over the south. You have to call the manufacturer and see if they're willing to sell to you in a different state because it's the good old boy system here in the south. Some of these dealers will make deals with Clayton say, "Hey, I'll make sure I'll buy everything from you, but you can't let Bill down the road or Billy Bob down the road go and and buy from you direct." Also, there's a lot of nuances to this this politics. What are you saving being a direct dealer versus buying from a dealer? You're going to save 10 20 grand. Okay. If you're doing one, maybe not. But if you're going to do five, it might be worth looking into. Well, it really makes sense if you own mobile home parks and you're doing the trailer land package like me. That's why it made sense because I'm buying brand units to stack an infield on my parks and I'm buying. So, it made sense for me. It may not make sense for everybody, but yeah, if you have a dealer's license, you know, our markup when we wholesale, like I I sell just to investors. So, I'm marking up like if you buy from me a double wide, I'm going to make 10 grand off of you. If you go buy from the dealership, they're going to probably make 25 grand off. Okay. So, it's still a deal to buy through you if you don't have a license. Correct. Because we don't sell retail. We only sell to investors at wholesale and you're trying to build clients with investors. So, you're going to give them a deal, you know, like that's awesome. By the way, guys, we'll put a link in the description if this is something you want to do where you can reach out to Chris and buy direct from Chris. You're going to save money right there. Yeah, you're going to save 10 15 grand coming to me. And then on the single wides, we're charging you five grand above sticker. So five grand on the single, 10 double. Um, then you want to, you know, you want to pick out your unit for, in our experience, the best, you don't want to go with that most highend, right? Because there's no margin. You don't want to go with the low end. We're going, you know, you want to go with that middle ground double wide and se single wide. If you're going to flip a single wide, the Mariner, the Clayton Mariners is going to be the the best one. What square footage is that one? The Mariner is 1150 square foot. Okay. Threebedroom. 32. Yep. I can say the Mariner for 65 grand. Brand new. 32. And it it's a good medium ground uh Mariner that you could you'd want to sell or even live in. But if you're going to buy one for a rental, you don't want to buy the Mariner. You want to buy the Elation. It's a It's a little bit downgrade. That's what we put in our parks. It's 950 square feet. Uh 32. We're selling those for around 52 to 55. That's awesome. Yep. And then the double wides the we have all the way from 1500 feet all the way to to 2,000 square feet. I need to talk to you later. I've got a little development project I'm doing in Sweetwater right here in the Smoky Mountains. And it's it it was 56 acres, Chris. We split them up into nine lots. And I really think there might be a Clayton model now. I want to sell these things for more like the 500. Do you have like a high ceiling cabin looking? I have one right now that I dropped on two acres in uh Lakeland on on a lake over there on two acres. Beautiful property, 100 year old oak trees that we just dropped. Matter of fact, I just showed it on my Instagram stories last week. It's a high-end model. I paid a lot more for it. It's got two fireplaces in it, two living rooms. That's what you would want to put where you're at on a high. You got to know where you're at, right? If you're more of a high-end area, you want to put a little bit more higher in. But if it's a country country boy setting, you know, rural, you want to go with that 1,500 ft² 42 middle of the road brand. You don't want to go too high. And that's why you got to know your numbers, guys. Know your numbers. Pull the comps. You got your exit price, your your resale price, you got your cost of the unit, you got your land. What are you factoring in for soft cost? Your typical setup moving and setup cost on a double wides is roughly 30 grand. That's half the cost of the unit. That's to move it, drop it, set it, anchor it down, put it together, and and trim it out. You trim out septic, water, skirting, steps, tie into electrical. That's everything out the door, though, Jerry. That that's okay. That's with all your service providers, too. The just the moving cost is is roughly 10 to 12 grand because you have the shipping and you have the crane set, which is both those are expensive. Yeah. Now, Chris, why aren't you doing this in your backyard in Louisiana or anywhere out this way? Like Kentucky, Louisiana, Tennessee. Why aren't you doing it there? Or or maybe you are soon. I I'm trying to get into Tennessee. Hell, maybe that's something me and you could do together. Let's talk about it. Louisiana, we are looking to do it. It's a little bit tougher here in Louisiana because of values. You know, Louisiana is one of the poor states in the union behind Mississippi. So, you have to be careful where you do this at. It's like anything, Chris. It's the fundamentals. You know, you can get you can get into anything cheap, but can you exit? You know, like I did this deal, Chris, where I bought like all these prop I reached out to you. I don't know if you remember a couple years ago, I was buying these properties rural, super rural at the auction for like 20 cents on the dollar. I took a couple to you and you're like, Jerry, where this is like way middle of nowhere, you know, and so it doesn't matter how cheap you buy something, there's no if there's no buyers, then your model's killed. So what you're saying is guys, you still want to be in a market where there's demand where you're going to sell these things quickly. If you're out in the middle of nowhere Louisiana, it might sit forever looking for a buyer, you know, even though you got a deal on the land. Yeah, that's right. Even though you got a deal on land, you have to look at the comps. And now here's the thing. You can create the comp. I've seen that, too. I one of my students that we just sold a unit to in North Alabama, he didn't even have a comp and he sold this deal in three days all cash. created a comp at 265. Look at the economy, right? Look at the jobs. Look at the growth of it. If there's no jobs, there ain't going to be no money. The safe way would be invest where you have comps. It's proven. It's a proven model because you see sold comps. But what would you say, Chris, from end to end? Is it similar to a four to six month flip like a like a normal rehab or is it faster, slower? It's what I like about it is faster and it's very scalable because it's the same steps every single time. It's typically about a three-month process uh from from end to end. Three months from end to end. It's actually faster than a traditional flip. A really valuable skill as an entrepreneur is predictability as as an entrepreneur. If you can't predict, then you're going to get yourself in a lot of trouble. You need to be able to predict. And that's what new bill construction does. Now, you know, if you work the gradient scale of, you know, where you start, where you should finish as an investor, I don't recommend you trying to get into development like what Jerry's doing or what I'm doing right away. You want to learn how to find deals. Then you want to flip some single family homes and cut your teeth on learn the construction process. There's Yes. And that's another thing that people ask me all the time. Where you getting the money to buy all these trailers and drop them? I raise private money. Now, can you go through a bank? Yes. Uh but it's a slower process. And um I I if listen, if you can if you can raise private capital, that's a superpower. If you can find offmarket deals, that's a superpower. If you can partner up with the right people and leverage skill sets, that's a superpower. Will the manufacturers um finance and then you bring in private money for everything not covered? Now, as far as the the land home package, trail land home package, I don't think they have any in-house financing. The best thing to do is just do private money and let your investor hold the first position or go to a small community bank. So, this is great. Man, I'm really excited about this strategy. I think this is fantastic, Chris. Uh I want to talk more about doing this. I think this would fit really well with what I like to do because I love land. I love development. I love speeding up the whole process. If I can flip in three months instead of six months, that means you're doing in the same thing you're already doing, you can transact two or three more deals a year and be able to stay below the household medium in uh income of uh homes at the same time. You're always going to win there. You're always going to win there. Yeah. I always made note, Jerry, back when I got into real estate a while back, I remember looking studying 2008 and uh 2008 crash. You're old enough to remember how nasty it was. It was real nasty. And I I never forgot that I read an article by Warren Buffett. He said the only stock that didn't go down during the 2008 crash was mobile home stocks. Why? Because people went from single family homes. They came back then you could buy a brand new single Y for 30 grand, a nice one. It was so much more affordable than they are now. But affordable housing ain't going nowhere. It's the wave of the future. They got to figure this out. They can't get I I you know, they keep saying they got to try to get a hold on inflation. I just don't see it coming down enough to be make a big enough impact to where single family homes just crush it again like they 21. And let's be real right now as of this recording, inflation is still outpacing appreciation, you know, generally speaking. So, you're you're not getting ahead. You you've got to create it. Awesome. Well, guys, Chris also I want to share with you guys uh does some highlevel mentoring. He calls it allies. It's a mastermind that he does. I'm excited, Chris, to get a little more involved with you on that. You've invited me to participate some. We're line we're trying to line up schedules and stuff. I love that you do that. You teach how to do these different strategies, this one and others. And let's put a link in the description, guys, if you want to work more closely with Chris in his mentorship program. We'll put that in there. And we'll put the link to to to get get in touch with you about the trailer, you know, dealer package because uh it's really cool what you're doing, Chris. And thank you for sharing all your wisdom here on this on this video. Let's do more cuz there's a lot of other things I'd love to talk with you about and share, you know, with my channel and community. So, yeah, let's I I like that. Sounds good. Thank you, Chris. Thank you, everybody. We'll talk soon.