The Science of Flipping - Episode 108: Mobile Home Leads – Interview with Brandon Pfannenstiel

Episode Date: September 8, 2017

document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab3083f50", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/post/2773", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab3083fdd", {"title":"Episode 108: Mobile Home Leads - Interview with Brandon Pfannenstiel","subtitle":null,"summary":null,"duration":"","poster":null,"chapters":"","transcripts":"","audio":[{"url":"https://audio.simplecast.com/cbdd606a.mp3","mimeType":"audio/mpeg","title":"AUDIO/MPEG","size":0}]}, "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); Brandon is the mobile home guy. He has done over 150 deals in the past year and has a ton of experience to help advise you what to do with your mobile home leads. To talk with Brandon go to: https://thescienceofflipping.com/mobilehomes Get a Free Coaching Call with TSOF team. CLICK HERE TO FILL THE FORM. JOIN MASTERMIND  — APPLY NOW!!

Welcome to the Science of Flipping podcast. I'm your host, Justin Colby. What is up, everybody? Welcome back to the Science of Flipping. I am your host, Mr. Justin Colby. And as you can see, if you're watching on YouTube, I have another special guest. It seems like I'm doing a whole bunch of interviews recently, but it's because these people, whether it's Mike or Peyton or Brandon, who you see here today, have just something that I absolutely think you have to listen to and follow. So again, this podcast, The Science of Flipping,

was developed and thought of as a place for you to go to get all of your systems, your strategies, your info to become a real estate investor, to become successful, and ultimately to create your life by design. So that is the intention here at The Science of Flipping. If this happens to be the first podcast that you are listening to, you randomly chose this one, well, good for you. Congratulations. Welcome to The Science of Flipping family. I urge you to get over to thescienceofflipping.com. I have a book that I sell on Amazon for $15. And no, I'm not trying to sell you my book because I actually give you the opportunity to download it for free. The exact same book at thescienceofflipping.com. You can download for

absolutely free. Go over there. You're going to find a bunch of stuff at the Science of Flipping. You're going to find past podcast episodes on the Science of Flipping. If you have listened and been a loyal listener and you're interested more about our masterminds, which Brandon is in, you can fill out an application for the masterminds over at the Science of Flipping. Maybe you are looking at needing a coach or a mentor

and you want to work with me or my team. Fill out an application all the way up until the point of finding financing for your rehab flips. You can go to TSOFfunding.com, TSOFfunding.com, and we have that for you. All in all, we're here to help you. We're here to be an asset so that you can create your business the way you want to and the way Brandon has. And so now that I have all the housekeeping out of the way, go to the Science of Flipping, get all of your resources. But I brought Brandon on for a very specific reason because he is the epitome of what I would say an entrepreneur should be, right? Is we became friends years ago.

He wanted something more in his life. And I started to personally mentor him. He's now a part of one of our elite masterminds. And he's created an incredible business that I want to give him some time to tell the story. But dude, what's going on, Brandon? What's up with you? Hey, not much, man.

Just another day hustling and trying to stay on par with getting everything completed for the end of the month. And yeah, man, everything's looking great right now. Right, right. So listen, why don't we tell everyone your story? Because a lot of people out there listening to this podcast are searching for something, right? They're not happy with where they're at. They're not happy with the results they're getting. Maybe they have a full-time job. Maybe they're working part-time. Maybe they're a

full-time student. Maybe they're a full-time real estate investor and have not figured out how to build a business that they can really rely on, right? And so why don't you kind of take us all the way back to when you and I first started talking and becoming friends, what you were doing and kind of that progress and process that took you to where you are today, where you're making a lot of money running a successful business. Why don't you take us back there? Yeah, yeah. So it was awesome connecting with you.

I had heard one of your podcasts, and I'm like, you know what? I have got to meet this guy. It seems like he's got things in order. I like his mindset. I really want to target living that lifestyle. But I knew one of my biggest hurdles was having a job that was slowing me down and actually being able to pursue the lifestyle of entrepreneurship. So one thing led to another. After I got on board with Justin here, the whole goal was to flip homes or to get into wholesaling and understanding the concept behind that. And my prior job kind of elevated me to a level that helped me get ahead of the curve,

which was nice. And that was being a gap lending source for real estate investors. So I used to speak at a number of seminars all across the country on a month-to-month basis, got connected with a number of investors. One thing led to another. I ended up putting two and two together, had a buddy of mine out in Phoenix, Arizona, who was an investor, connected me with you. And, you know, I just decided to kind of dive into this using your guidance as a way to finally get out of my day-to-day job. And I think it was maybe after, oh gosh, maybe four or five months of being on board with you, I recognized that I actually had a system in place prior to even being a part of a boardroom, and REWW. And I just wasn't recognizing that I can leverage

the business model that I kind of organically created with mobile homes, which we'll get into here shortly. And one thing led to another. I ended up quitting my job and business kind of took off overnight. And now I'm here and loving life, having control, feeling like I have every means necessary to be as successful as I choose to and not having someone decide that for me. That's awesome. That's awesome. So listen, now that you're here and you've made a mark in this world, you've done something that a lot of people don't find, and that's a niche. A lot of people get into this business and they go into single family homes, condos, wholesaling, rehabbing. That's the popular mode of investing right now. But you've actually, what I kind of term, you're kind of the mobile home guy. You're my resource, right? So, anytime I'm getting mobile homes from direct

mail or something, I'm going to you. I know you work with a lot of other investors across the country, but you've really created something for yourself that is a niche, but you've basically created this space where, I mean, how many deals are you closing this month alone? This month, we should be closing on 37 deals, 36 to 37. That's awesome. So I want to get into this niche. I want to talk more about this because I think the reason, for sure, the reason why I have you on here is because I think people need to understand there's more than one strategy, right? We talk a lot about wholesaling. I do

talk a decent amount about rehab and flipping, but there's other things you can go do out there to really create a business and a niche that can be profitable. But before we get into your mobile home world, because you are my guy, what I want to do is I want to talk about this concept that you brought up about how you had a job. You were working full time

and you kind of felt it somewhere inside of you that you deserved more, right? Or something was going on that you were like, you know, I make pretty good money, but there's more out there. Tell us a little bit more about that decision making, the feeling, thoughts like that. You know, man, it started off early on. I mean, I remember early into college, I knew that I wanted to be creative in a way to where I had more control. I am a control freak, as a lot of entrepreneurs are themselves. And I just hated the concept of the idea of consistently being metaphorically whipped by your employer. And I just knew that I needed some sort of vehicle, some sort of tool to get me to the point of where I can make a consistent income that makes me satisfied and puts me on a different level financially outside of working that day-to-day 8-to-5 job.

And I knew I didn't want to uh you know celebrate my my my weekends I wanted to be able to celebrate that if I wanted to take off um uh one week two weeks or even a month that I had that control yeah so and in doing so and in where I'm at now and running my own business and and uh and you know seeing placing this like what looks like a big puzzle piece placing it together and just scaling and just bringing on new systems bringing on new partners it's starting to it's starting to just create this this fully functioning business here and and I can tell you I have more control I have more passion and I finally have designed something that I actually

enjoy versus just doing something that an employer tells you to do just so you can, you know, make ends meet. Yeah. You're, you're not necessarily trading your time for hours anymore, right? That's typically what you would call a job, right? Where you just trade your time for money. And sometimes that money can be good and sometimes not. I have friends that make half a million dollars a year, but they're working 80, 90 hours a week. To me, that's not my lifestyle. But for them, they don't really have another avenue

to make that kind of income. And so you were fed up with trading your time for dollars. And so you knew there was something more. And you obviously obviously on a side space, but you're in the real estate space, right? And I think you were, tell us a little bit about what made you kind of make that decision to be like, I want to go into the real estate space and not be on the periphery, right? You were kind of on the periphery of it. What was that decision? You know, how did you make that? Yeah, so I can answer that question in kind of a broad answer, I should say.

But it kind of all – taking a step back on my prior job, I kind of became adapting to them and understanding what the how the concept what the concept was behind wholesaling and the purpose of flipping. And again, at the time, I was completely new, it was foreign language. And then one thing led to another, I was like, wow, that makes a lot of sense how you can puzzle this together to where you can essentially flip contracts to the fix and flippers and make a nice in-between spread there. And I was thinking, man, this is something I can take control of. But it was funny. At the time, I had already done a couple deals, not even thinking that that could be something I can turn into a business. And that's kind of what led me to being a full-time investor in manufactured housing.

Yeah. And so let's jump into this because I think initially when you came into my world, we talked about how to get into wholesaling, right? And I took you kind of on as a personal client to help you get into this world. And I would say within about 30 to 60 days, you started realizing there's some opportunities you've been presented that you started to open up a couple doors for yourself, right? So you started to do what I was guiding you to do and started to send direct mail and go after going and getting a check. And I think together we completed one or two deals kind of out of the gate, right? And that showed you what I was telling you is for sure true. And you can do this and you can make an incredible income. But through that time,

you actually started getting some relationships and opening up your own doors into this space of the mobile home space that has transitioned now where you basically, after about three, four, five months, you were like, listen, I think I'm going to go all into this space because it seems to be less crowded. Right. And tell us a little bit about that, where you started traditional wholesaling and now it's like you're so far eyeball deep in this mobile home game. I mean, I call you my mobile home guy. Right. I mean, you're the guy. Yeah. So I remember doing those couple of deals and, um, and I, I just would, I was seeing so much competition. Um, it was just a constant grind and I, uh, I just recognized there, I recognized the opportunity with the manufactured housing and really how that kind of, um, create, you know, turn into what is now a full-time business for me, um, was that I,

I actually created a strategic relationship with a woman out in Texas to where she was able to kind of handle the operational side of the business, which was to handle our rehabs, moving our homes around in specific parks, because we do invest in homes within the parks, not necessarily on private land. And what I was capable of doing, and a lot to do with my prior job, was that I was able to raise capital. I had connections with investors, done business with them on the lending side, and then presenting another opportunity to cash flow. They saw this as an opportunity to get on board. And right there, my client book was kind of filled organically just because of the reputation I had created with a prior company. And then one thing led to another,

I just wanted to get more and more educated on what else can we do? I mean, there's so many opportunities that you could invest in mobile homes. And I just, I went after it, man. So I'm sure we'll get into that here shortly. Yeah, well, I went after it, man. So, so I'm sure we'll get into that here in a shortly. Yeah. Well, I mean, another, you know, and I don't want to fast forward too much, but you've even, you believe in mentoring and coaching just like I do all the way up into the point that, I mean, you've done like 158 since last March. Awesome, dude. So you're already crushing it. And a lot of people, this is where the funny part comes in is people would probably take their foot off the gas or just remain status quo. Like I'm doing it. I'm making big bucks. Right. Like you're now lending today. You gave me a call. You're like, dude, I'm lending someone 150 grand

because I can. Is that cool or what, right? Like that's rad, right? But there's a lot of people out there that literally would just, they would be happy. They'd be content. And you believe in mentoring and coaching so much. You've actually just hired another mentor

in this space to your point, to continue to open up these avenues in this space. And I know you've wholesaled mobile homes. I know you've rehabbed mobile homes. To your point, you were talking about how investors actually, you've created notes for investors to get cashflow and mailbox money, we call it. And I know you've become very diverse in this space. What are you currently looking to grow and expand to, right? Like what is your mentor kind of teaching you that you're looking to create this model where you're giving people, hey, you know, the way I talked to you yesterday was you have this resource where you could be the mobile home guy for all of us wholesalers who are spending 50 grand a month in direct mail and we're getting in, you know, 30 mobile homes a month. You could be the guy that we all point to, right? Or, um, you know, you're rehabbing these mobile homes. So that is something that you've systemized and have an

ability to do. And so what's going on? Where are you headed now with all these different avenues? Yes. So as of today, uh, we are currently, and when I say we, I say me and my team. I just brought on a new employee. We have affiliates out in the field that will bring me deals. And right now I'm just building up my manufactured home portfolio. And I want to cash flow on these as if maybe you or someone else you or someone else in that may be listening to this podcast right now, maybe investing into single family residential homes and cash flowing on those. Well, I want to, you know, do something along the same lines with manufactured homes. So right now, today, just to give you kind of a quick synopsis, today I contacted, oh gosh,

I've contacted maybe 30 parks looking for homes that are for sale, trying to get these at a reasonable cost where I can go ahead and fix up the home if it need be, and then go ahead and seller finance or rent out that home. So that is right now what the goal is. And we're growing that portfolio as we speak. That's awesome. So let's talk about some tactical shit, right? Let's's talk, let's have someone listen to this and say, you know what, Justin, I'm sick and tired of the competition in residential real estate. What Brandon was talking about is creating that light. My light bulb's going off. I'm getting some excitement going. Let's talk to that person. How would you get into this game or

what modes would you be going after to even just get into the place of finding some mobile homes, right? So the example I'm going to give is in the real estate space, I send a lot of direct mail every single month to get in front of sellers. Now, I might wholesale it. I might hotel it. I might rehab it. I might buy it and hold it. I have four exit strategies.

How do you get in front of those people? And then when you're in front of them, where do you go? How do you know what decision you need to be making? Well, so kind of answering to the, let's say, the investor that is looking to get into the real estate field or the realm of it, but they just don't know where to begin. Maybe they're low on capital. Manufactured housing is the right way to go because, as you can imagine, it's not nearly as expensive as a single family home or the cost for marketing for that. Who knows? There's several parameters. But if you're looking

to target manufactured housing as kind of a start to the investing space, if you will, it's as simple as taking out some credit cards that give you 0% financing and now you have access to lines of credit and what some people are not aware of is that you can actually draw cash off of these cards if you use the balance transfer promotions of cards offer you and guess what now you have capital and that's capital at 0% financing so so that's so what I've done is I've used that tactic now I've had capital now I can go into one of these parks and someone who's, you know, looking to, uh, uh, looking to get rid of

their home because, you know, they're at a financial crisis or, you know, whatever the case may be, which is possibly similar to why someone were to sell off, sell their home off market to, to a residential flipper. Um, you know, we go ahead and offer them a cash value that will get them out of their hole. And then right there, we have a couple of options. We can either quick flip that, make a couple of adjustments to the home, maybe, you know, knock down a wall, throw in some paint, which it's very inexpensive to do on a manufactured home versus, you know, a single family residence, as I'm sure you can imagine. Or perhaps you can go ahead and do a couple of options, either flip that or you wholesale it to an investor such as me. You're not going to make too much. The spread isn't always the largest

because if you're picking up a home for $3,000, $4,000, you can imagine it's not going to be the biggest paycheck if you're wholesaling it. But also lastly, which is the concept of what I am implementing right now in my business plan to grow my own personal portfolio, and that's to create seller finance agreements between me and someone who doesn't necessarily have the credit to go ahead and get a home of their own. So I'll hold onto the note for them, but by chance, you know, they're bringing in two three thousand you know two grand three grand a month they they have a family they want to actually pay for something that's affordable to them but also not breaking the bank and with creating the finance agreements between

me and someone who is looking to purchase one of my homes I typically make those monthly payments to be equivalent to something that they would work to rent. So if you're going to rent out an apartment for $800, might as well put that $800 towards something that you can own. And that is just a great way to kind of get started in this business. There's several options, whether it's actually a wholesale it to an investor. You have to find those people that are willing to buy that from you. I happen to be one of very few. Which is you. Yeah, exactly. Or you flip it yourself. Or you go out there and you find those folks that are looking for affordable housing. And you'd be surprised there are a number of them. They're everywhere. And I just think a lot of people overlook that. So that's why I have targeted

this industry specifically. Yeah. And I think the great thing about your business, truthfully, and I talked to you about this quite a lot. I have four exit strategies, right? I'm going to wholesale a home. I'm going to hotel a home. I'm going to rehab a home or I'm going to rent it. You have a very similar model, slightly different, but you definitely have multiple exit strategies and your cost to get in the game is so much lower. Meaning to your point, you're buying maybe a mobile home for maybe three, four, $5,000, right? Where I'm buying a home for 150, $200,000, right? I mean, just the cost

to get into the game is so much lower, right? And it's really intriguing that you even have the model that I like, that you and I have spent a good amount of time talking about that I'm actually involved in with you, which is you actually have this also an ability for people that might have some money, they would like some cash flow. And instead of buying a rental property, you actually have been able to create secured notes for people that like, have some money they need to put somewhere, and they can go in and actually buy a secured note. Tell people a little bit more about that, because I think that's kind of also a no-brainer. I mean, to the point where I'm actually invested

in it with you. Tell people a little bit more about that model. Yeah, the program's pretty cool. It's a very inexpensive investment if you're one of those that just needs their cash to continue to flow. And I work with a lot of private lenders, business professionals like doctors, attorneys, dentists, and so forth. And basically what happens is, just to kind of give you an explanation, it's a simple investment whether you're using money out of your savings that's maybe earning you a 1% to 2% yield a year if you're lucky. Or perhaps using your IRA that's invested in to the stock market and seeing a lot of volatility, perhaps not giving you as sexy of a return on your money as you'd like.

And essentially, it is unsecured. Something goes downhill. You might be SOL'd. So what we've designed is an investment strategy to where the investor can go ahead and make a minimum investment of $20,000 and we secure that by a property that might be worth $40,000 and 15 to 18% interest. So now the investor has that security. It's a fairly large spread. It could be a double their investment. And that allows the investor to continue to get cash flow on a month-to-month or quarterly basis maybe you're just focusing on residential housing and you never know when there could be a crash. And manufactured housing, in my opinion, is kind of at the bottom of the barrel. And no matter what,

I think someone's always going to need affordable housing. Yeah, there's no doubt. Well, dude, here's the reality. I needed you to be on here because I think people need to realize that there's another game out there. I'm a huge component of building true business, being successful. You're how old again? 26? Next month, 26. Oh boy, 26 next month. Listen, you had a full-time job. You made up your mind. You took action. You made a decision to get into real estate. Within two months, you changed directions. You went directly into a market that I was very unfamiliar with, so I didn't have a lot of guidance for you. You found another mentor.

You started learning your way. Over the last almost year and a half, a little bit more, you've done over 150 deals. I mean, dude, you've been crushing it. And so I'm happy you could get on here because people need to realize there's opportunity like this out there, right? And it's just a matter of opening up your eyes, looking at where your best avenue can be, and taking action. This is, you know, at the end of the day, I have my meetup tonight and I'm going to talk a lot about what it really takes to be successful. And it's not just the X's and O's, but it's the, you know, the action you're taking, the implementation that you're taking.

And if you don't have that, you're not really going to get anywhere. So I give you a lot of credit for taking that action. Yep. Thanks, man. I appreciate it. Yeah. Listen, I think it's something that I want to make sure people have access to you because I'm not going to be able to answer their questions. So a lot of times I get a lot of responses from my podcast, a lot of questions, a lot of emails. Hey, what about this? What about this? Brandon said this, and I'm probably not going to be the best. Now I've actually invested in some of your mobile

homes, but I wouldn't be able to answer some deeper questions. So what I've done is I've actually taken the time to actually create a website for you where my loyal listeners can actually go direct to you. And we talked about this yesterday that we wanted to have a place where they can just contact you directly to understand more about this. So what I did is built a website called thescienceofflipping.com forward slash mobile homes, right? The science of flipping.com forward slash mobile homes. What this is, is simply guys, if you want to talk to Brandon specifically, he offered, I sat him down yesterday. I said, would you be willing to answer questions?

Would you be willing to talk to people? He said, absolutely. People need to know about this industry. They need to know that they have options. They need to know that they don't have to, you know, go find a single family home that they can work in mobile homes. They can even get notes and all of the options that they have. So I appreciate you for allowing me to kind of direct them your way because I'm not going to have the best answers.

But this is something that you're going to get. Brandon said he's going to be reaching out to you guys personally. So go to thescienceofflipping.com forward slash mobile home, and you will see a video, right? And that video will be Brandon being able to, Brandon and myself explaining a little bit further, but also so you can actually get a hold of Brandon himself to answer some questions. So I appreciate you doing that, dude. Of course, man. Appreciate it.

Yeah. Any other things that you want to say to the listeners here at the Science Flipping before we get out of here? Yeah, you know, really, I'm a big advocate of, you know, getting the younger generation into the entrepreneurial mindset. And I think there's just so many, you know,

young bucks out there that are creative in that sense. They just don't know where to go. And I think the biggest advice I can give anybody, and it worked for me, is to surround yourself around people that are doing things better than you. And that's why I wanted to get into your world, Justin. So I think it's important for us to kind of get out of our similar circle that we are consistently in that maybe gives us the same exact results. Maybe try something new, put yourself on a different level, hang out with those that are doing it better than you. And I think right there, it just gives you more of an idea of how to get things moving and going in the direction of entrepreneurship. So that is

something I just wanted to mention. I hope this connects with some people out there. Right on, man. Well, I appreciate you coming on, dude. Guys, again, if you want to talk to Brandon, pick his brain, understand what he does, how he does it, go to thescienceofflipping.com forward slash mobilehomes, and he'll reach out to you. Put in your information. He'll reach out to you. He's happy to answer questions and go over how you can kind of get in the game. Dude, I appreciate it again. We're out get in the game. So, dude, I appreciate

it again. We're out of here. Peace. Awesome, man. Thanks a lot for having me. Appreciate it. Later, dude. Later.