In today’s video we’re talking about three of the top deals we scored in April 2020. This valuable talk includes everything from the unique opportunities that the COVID-19 pandemic has brought to the mobile home market to what our strategies have been over the past few months.
If you don’t have time to watch the video, here’s a summary of what we covered today.
The EZ Homes way
At EZ Homes, we often flip our homes within 48 hours. Think of it as a wholesale business. Buying mobile homes in bulk and making smaller investments is what we do. Of course, that also means getting a smaller ROI, but since we’re doing so much bulk buying and selling in such a short amount of time, that’s completely worth it to us.
If you’re taking the time to remodel and you lose a customer because they don’t like the brown walls and carpet that you picked out, then you’re hanging onto that home longer than you need to. Plus you’ll often be paying lot rent at the same time. Think of it this way – the house will be remodeled, just not by you. The new homeowner is buying it from you at a low enough price that he will have money left over in his budget to do his own updates.
Three tactics we use to get leads
The three mobile home deals that we’re going to be talking about today started out as leads. EZ University trains with a unique model for mobile home buying. Getting leads is the most expensive part of the process. If you were to remodel a home and resell it, that would be the biggest part of your investment. That would turn into your marketing scheme. Since we show you a model that does not require that kind of investment, you have more money and time to devote to other things. Like getting leads, for instance.
Our number-one tactic is SEO, or search engine optimization. This includes writing content for our blog and directing traffic to our website. This is how we get the majority of our leads. About half, in fact. SEO can be very expensive, but there are a few ways to ease into it. The most important thing is to set up your website and start writing content. You can also use things like pay-per-click, so you only pay for the traffic you get to your site.
The other two tactics, which are slower but no less effective, are direct mail and referrals. Emailing or sending out physical postcards are good ways to put yourself in front of potential sellers and let them know you’re just a phone call or an email away.
Location: Macomb, Michigan
Size: 16 x 60, two bed, two bath
We’re asking: $7,500
The owner of this home called us up because she had a postcard we had sent out. She told Dan Leighton that she was selling for two or three thousand dollars, so Dan ran right out to look at it. We have a good relationship with the park that it’s in, so there were no issues there. As Dan walked through, he found a leak in the roof and several soft spots on the ceiling and walls.
He ended up buying the home for $300. How’s that for a profit margin? We love to find sellers who are highly motivated. This homeowner had just bought a new home, and she wanted the old one off her hands, which made it a perfect situation for us.
Location: Ypsilanti, Michigan
Size: 28 x 40, two bed, two bath
We’re asking: $12,900
This lead also came from direct mail, and the owner was very forthright about all the issues. He even took $500 off the asking price for something he forgot to mention. We got the home for $5,000 even. For this home, we’re making sure we honor the park’s “right of refusal.” That means, if the park looks at the house and wants to buy it back, they can. If they don’t want it, it’ll go straight to a buyer who is already interested in it.
Location: Many, Louisiana
Size: 16 x 76, three bed, two bath
We’re asking: $10,900
This home is in another state. We actually partnered with one of our students to buy this one, and it worked out great for him and us. This was an SEO find. After getting the lead, we contacted our student and he got right on the job. He looked at it, impressed the sellers with his knowledge, and promptly closed the deal.
From a lead to a deal
One little lead can go a long way. In our business, we make sure we aren’t missing out on important leads because we’re stressing about lot rent or finishing a remodel. We milk those leads for everything they’ve got, and usually, they turn out to be some pretty sweet deals like the ones we overviewed today.
03:18 EZ Home’s strategies for buying mobile homes
04:56 Three ways we get leads
06:55 Which tactic should I choose?
10:12 Deal #1
17:28 Deal #2
20:51 Deal #3
29:23 Why the EZ Home model works