Brant Phillips interviewed by Ross Hamilton from Connected Investors
You can also view it here:
I was recently invited onto the Connected Investors podcast by Ross Hamilton to talk about Real estate and my investing career.
The conversation quickly turned to how to make passive income with single-family homes and we also discussed mobile home park investing as well.
Here are some of the show notes:
Figuring out how to make passive income is critical for everyone. It’s really the only way to have a real-life today. It’s the only way to stay ahead financially and enjoy some measure of financial security and peace.
This has become even truer and more urgent in the wake of the COVID-19 pandemic which shattered the economy and has sent at least tens of millions of workers to the unemployment office. A catastrophic tragedy, which has also put a massive dent in many individuals’ retirement portfolios.
Listen into this podcast episode to find out how this pro got started in real estate investing, how he flipped his way to the Inc. 5000 list of fastest-growing companies. Then, how he found a highly profitable niche for cash flow and how to make passive income which has generally been reserved for the wealthiest billionaires and biggest funds.
This is for you whether you are just looking to get started in real estate investing, need to get your money out of the stock market before it dives even further, or your current real estate strategies just aren’t delivering the truly passive income you expected. Gifts & Recommendations:
On this episode Brant Phillips recommended reading Shoe Dog: A Memoir by the Creator of Nike https://www.amazon.com/gp/product/1501135929/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=connectedin09-20&creative=9325&linkCode=as2&creativeASIN=1501135929&linkId=7a12545a78c0bc66bb8e81a8786629a9, Phil Knight.
Be sure to check out Brant’s own books too. Including Conversations with a Millionaire Real Estate Investor http://conversationwithamillionaire.com.
We also gave away access to the PiN Pre-MLS Software http://wrgo.io/ConnectedInvestors/17258, and digital copies of The Insider’s Guide To Funding Real Estate Investments.
SHOULD I INVEST IN SINGLE FAMILY HOMES?
Single family home investing can be highly profitable. It is easy for most people to understand. You can flip them, rent them, or wholesale them. There are far more end buyers and they can seem simpler to finance than apartment buildings and other commercial properties. Many investors start out with single family homes.
WHAT ARE THE ADVANTAGES OF INVESTING IN MOBILE HOMES?
Having done countless single family home deals Brant found there really wasn’t any passive income in it. Whether you are wholesaling, fixing and flipping, or acting as a landlord it is quite active investing. Mobile homes can be far cheaper per unit, have less competition, may be more common in your area and are in high demand as a form of affordable housing.
WHY DO BILLIONAIRES INVEST IN MOBILE HOME PARKS?
Multi-billionaire investors like Warren Buffett and Sam Zell are also some of the biggest mobile home and mobile home park investors and lenders. As are more ex-Wall Street traders and big hedge funds.
They can produce strong cap rates and lots of cash flow. Park owners also often only own and manage the dirt. It doesn’t get much easier than managing dirt. The tenants frequently own their own mobile homes and take care of their own maintenance and utilities.
HOW TO MAKE PASSIVE INCOME IN REAL ESTATE
Step 1 – Find easy to manage assets
Passive income relies on easy to manage assets and those you can hold long term, without relying on finding deals every day to make money. Mobile home parks are a great example of this.
Step 2 – Optimize for cash flow
With mobile home parks you can charge ground rent, finance homes to residents, add laundry services and other features for more income.
Step 3 – Find great managers
Some will still need to manage your properties. Find great local boots on the ground to take care of your out of area assets. Take yourself out of the equation, and use professional third party management, so you can act as a business owner, and work on the business, not in the business.
Summary
Passive income is incredibly important. While there are many types of real estate and real estate investing strategies, not all really deliver on this. This can be quite common in the single family home sector. Make sure you check out how Brant made the switch to mobile homes to make passive income really happen. Action Steps for Finding Mobile Home Park Deals
Use PiN Pre-MLS real estate software https://event.webinarjam.com/register/24/rm2xvhvk
Build your network of commercial real estate brokers
Optimize your SEO to get found onlineAbout Brant Phillips
Before getting into real estate Brant Phillips was in law enforcement and worked as a corporate soap salesman. He had seen his father work hard but get laid off several times. He saw his family go through bankruptcy and foreclosure. Recognizing he was on the same path, he found it depressing and grew to dislike that world. He decided to burn his boats, and went all in one investing. Through his fix and flip strategy he made it onto the Inc. 5000 list. Now he has discovered how to make passive income through mobile home park investing.