misconceptions about MHP investments with Spencer Davidson

INTRODUCTION:

In this episode of "The MHP Show," host Derek Vickers welcomes Spencer Davidson, his business partner and fellow enthusiast in the mobile home park (MHP) industry. Together, they delve into the intricacies of MHP investing, sharing insights and advice based on their own experiences.

KEY TAKEAWAYS:

1. Dispelling Misconceptions: Vickers and Davidson discuss common misconceptions about MHP investments, emphasizing the importance of understanding deal dynamics and adopting creative financing strategies.

2. Market Assessment: The conversation highlights the necessity of firsthand market experience, as Davidson recounts anecdotes from different regions, underscoring the importance of location and market dynamics in investment decisions.

3. Advice for Newcomers: Offering practical guidance, the hosts discuss various entry strategies for newcomers, including leveraging sweat equity, wholesaling deals, and the importance of commitment and perseverance in pursuing MHP opportunities.

CONCLUSION:

Listeners of "The MHP Show" gain valuable insights from Vickers and Davidson's candid discussion on MHP investing. Their practical advice and firsthand experiences serve as a valuable resource for both seasoned investors and those looking to enter the dynamic world of mobile home park investments.

WATCH IT IN YOUTUBE:

TRANSCRIPTION:

[Music]

hey everyone welcome back to the MHP Show podcast I'm your host Derek Vickers CEO Victory Real Estate Group and we all know on the MHP show we talk about anything and everything that has to do with this crazy freaking business of trailer parks the operations of it the crazy things that you find in due diligence maybe I'll talk about some of the crazy things that I have found here recently due diligence today but I've got someone with me today I've got Mr Spencer Davidson my friend business partner and

00:40

fellow MHP lover I guess you could say welcome yeah man thanks for having me on yeah I guess I'm a new newly uh MHP lover I I I've grown accustomed to the space so um yeah dude thanks for having me on brother appreciate it yeah yeah dude I you know we we you know we should probably record like some of our conversations that we have on a daily basis about deals and [ __ ] and like we should just have the phone and hit record when we're talking because we're like damn dude that would be a good kind

01:17

of the conversations that we get in are always in interesting yeah it's insane man like and sometimes I need to do it just to remember what we talked about because I have so much scratch paper going on but yeah man I mean the stuff that we talk about the in depth stuff we talk about like the way our brains work um you know I think it'd be really valuable for people to see how to actually break down a deal and I think you know doing more of this is what we what what the space needs because I think there's a lot of Mis uh

01:45

understanding of what of mobile home park investment actually looks like and so the I mean just from you know there's so many old methodologies that I see especially in the Facebook group that we have if you're not a part of that Derrick and I have a face Facebook group Mobile Home Park investing Pros uh feel free enjoying that we'll we'll add you um but uh but yeah I just see a lot of comments in there sometimes or some other groups here on Facebook that it's just it's just outdated information

02:10

about the space uh about like underwriting Deals valuing Deals and things like that and so um you know I know we pick fun at that sometimes but then like if people could just see how we look at deals and how we underwrite deals in the in the process and and you know it's like it's insane and I and I'm and I'm I'm glad it's it's fun to be a part of you know doing it but it's I just think people it' be valuable for people to see that and how we go about looking at a deal and all the different

02:35

ways a deal could work yeah exactly because there's not just one way that a deal can work I mean we we literally talk about this all the time because you know I I think I know what you're talking about too like we'll we'll have people post in the group about deals and I'm like okay if you look at that like this then okay it's a it's a decent deal but if you're looking at it that hey you know you have to buy a 15 cap and it's got to be all tenant own homes and it's got to be direct Bild utilities and the

03:04

city sends you the tenants the bill for the property taxes and there's no expenses and you know it's all PVC pipe like and it's in the middle of Tampa like okay well you're never gonna buy anything and and that's why I hate that and some of the people that that go by this old adage is because you're never going to [ __ ] buy anything like you're literally going to look up five years later and if you say I'm never going to buy parkone homes I'm never going to buy private utilities if it's not PVC if

03:37

it's not direct Bild like you're not gonna [ __ ] buy anything you might buy something in Chipley or or oak tree Iowa our favorite middle of nowhere place that doesn't exist right you might bu yeah exactly I mean and that's that's just the reality and dude they probably wouldn't even buy chiple because it's like they would look at it from a it's all Park owned right so they like oh I can't buy Chipley Florida even though it's a it's a it's actually a killer deal it's a double right away if you

04:05

just know how to maneuver it you know and and that's what people don't understand and it's like you know all of these people talking about hey it's got to have pay of roads it's got to have um direct build utilities you know it's got to be City Water City you know city sewer all that you know it's all tened homes it's owned homes it's like yeah that's what you turn the park into you know like you but you don't buy it that way and if you're going to buy it that

04:28

way good luck I mean you're going to pay a premium price for it and good luck finding it like you mentioned so like yeah obviously that's a good goal to turn the park into that but it's going to like as you know it takes a lot of money time effort and energy and uh to do that but um you know if you think you're just going to walk into a 70 spacer with all of those things paying 30 a pad uh in Florida uh you're never going to buy a deal ever again let's get more real let's talk more like 150 a pad

04:55

and and people when I say that are like oh my God that'll never happen like just watch you know multi family is a quarter of a million dollar per unit at like minimum right now in Florida you know for an apartment so you know where are people going to live you know mobile home par I I was talking to a friend of mine in Starbucks um this was I don't know last year I was talking to him and like how it just has so happened I forget the guy's name that was sitting beside me but he like goes around and teaches

05:23

people how to invest in mob home Park's older guy he's kind of an old dog you know he's like oh yeah you can't buy anything now and lot rents are never going to be over 500 bucks a month and I'm like dude we were getting 900 20 minutes this way right it's never going to be over 500 bucks and now people are say it's never going to be over 1500 bucks like dude I know the lot rent in Florida will be 1500 bucks it already is in some places there was a deal that um I got sent yesterday it's granted it's off like the

05:58

it's off one one of those little little Islands or something off of uh Naples and down in that that area um but the lot rents you know 1,500 bucks yeah yeah that doesn't surprise me I mean you look at like you know a good buddy of ours Arman like he I stay at his place downtown Tampa and he's staying in like I think it's like a studio one bed place right and he he told me he paid like 2,600 bucks a month for it downtown and I'm like dude for this little space and it was just m and then I go down the

06:30

street CU we met with a seller and his lot rent's like8 N8 800 bucks and we talk about oh we got to go you know go up to 1,100 you know in the next three years and I'm like yeah this is a two- bed or one bath or three bed two bath house in within 10 minutes of that that condo Tower sure they might have a pool or whatever it's a different person who's going to live there but all of the people all the workers all of the you know P the person that works at the wind Dixie down the road like where are they

06:55

going to live a mobile home park that's what in 1,100 bucks a month for a three bed two bath whether it's lot rent or Park owned rent like it's what people don't understand it's the same thing in my opinion now I could be completely wrong like you could tell me like I'm naive by saying that but it's a place to live that's all it is and whether you're paying for the the you know the lot or whether you're paying for the home I know it sounds weird when I say that but like I've just come to that conclusion

07:22

of like give them the title pay 11100 bucks a month it's yours like you know you control the interior the maintenance we you know we'll do the general maintenance to the park it's kind of like this same thing in my opinion uh now I could be wrong with saying that but you know just kind of coming to that conclusion of like you can charge more for lot renss yeah yeah and I mean you're I agree with you 100% where that rule like so like in in that example Tampa that 100% makes sense but if you're like you know some of

07:51

those parks that we were looking at and like um Louisiana where the park own home rent is like a thousand and the lot rent is like 250 because the perception from that you know from your client there is a little bit different than because I think I mean yeah because buying a house is really cheap there I guess that's why right I guess that's right it's like I could go I could go out and get a mortgage and still be in that if you know for a thousand bucks a month or500 bucks a month in I'll rent

08:27

for a thousand yeah yeah right right right so I I see that argument as well but when we're talking like Prime markets in Florida or any suburb really let's say uh you know even some stuff in Carolina that are like you know Prime suburbs or um you know like Atlanta I'm sure you know you can't find anything you know I'm sure there's some markets there but yeah in bum buuck middle of nowhere you know rural Iowa yeah it's probably hard to justify it however it'd be curious I'd be curious

08:57

to see if I went to those homeowners and was like like look you know for 600 bucks or like if we RTO something right and you RTO it at 1,200 and you allocated lot Ren at 600 bucks like but the Market's 250 do you think they're going to Care really if they're just you know they're paying off their home and then that way you can adjust your financials for the bank because all they want is lot rent and so it makes it look better for your Park I mean am I incorrect with that statement or I'm

09:25

just kind of playing around with these different underwriting tactics because I mean people are just so realistic and naive about some of this stuff and it takes some creativity like what we're talking about to kind of make things work yeah it does it does and we're you know I'm always like I'll you know I'll call you and be like hey you know what what if we do this and do this it's a nine cap then you know we can make it work if we do this and that and blah blah blah and like yeah you have to get

09:50

creative like that because um you know again you're just not going to buy anything if you don't or you're GNA buy something in the middle of nowhere and you know you everyone that listens to the show already knows that I'm you know vly against that um I just don't like that idea yeah dude like I don't know how many like 70 plus spacers we've turned down in the middle of nowhere because it's like what's the exit the only way you can exit there in my opinion is if you have a massive

10:19

portfolio and that's just kind of like added in there and you know if you have a 5,000 lot portfolio or 10,000 pad portfolio and it's like okay yeah we have this 100 spacer bump you know F Iowa uh Live Oak Iowa or oak tree Iowa so I don't know I just don't know how people can justify and then dude like the utility stuff I just don't feel comfortable with when it's the freezing temperatures and things like that in a mobile home like I just there's things there that in my opinion I would like I

10:46

that's why I like the sun Bel but I was curious about this today um I was going to ask you about um actually just in a general phone call so we might as well talk about it here but it'd be curious to see what other markets in the sun Bel because like I said I'm calling Louisiana that's Sun Bel and I'm like getting 25 per pad 30 pads you know deals you know and I'm like okay are we is there an untapped Market here if it's a good suburb Market where it could potentially have some MSA activity or

11:14

it's in an MSA and it's like there could be future growth there should we start looking at 10year Trends and being like dude we should be buying everything at 70 plus pad or 50 plus pad in those markets because 10year Trends show everybody moving down to the sun Bel um you know based on politics or economy or whatever and so I was going to talk to you about that today I'm like dang if we could pick up some of this stuff that was you know Florida 2019 pricing in Louisiana doesn't make sense to maybe

11:40

look at that market yeah I think yeah potentially potentially I mean I think for me at least and and this is me personally but for me to really get comfortable with the market I got to go there you know like remember when we drove all those markets up on the um the GF Co Coast up there yeah there were some like we liked like we looked at that deal in Mobile mobile was you know yeah we remember we stopped at the stoplight and I [ __ ] like locked the car and you started cracking up laughing because I like hit the lock

12:17

button because it was a little you know it was a little Shifty was a little Shifty yeah you had a you had one hand on the Glock one hand on the lock button yeah yeah yeah so I think if we can you know Identify some of these Parks like hey you know there's a couple hundred thousand people here you know it's within you know 30 minutes of that yeah we can go look at that um I I I would say so but I'd like to go hit up the market first and actually see just feeling the activity I like like you can I can look at all the data on best

12:51

places I can do whatever but when I go there and feel the vibe of the you know not just the property but the surrounding area is is there is there like [ __ ] going on there in Mobile where we were n yeah it kind of it was kind of going the other way like yeah you could buy there you know it's gonna be cheap it wasn't like now but when I went to Myrtle Beach this past summer and drove that market I'm like okay there's some there's some movement here I like this right yeah um and so you know I

13:25

know there's other markets like that that we can explore but yeah we just have to go touch on those markets and and yeah no it was just a thought because I was sitting there and I'm like these you know these prices seem decent you know for for what it is but obviously like you said you know and that's that was like the central Florida deal we have under contract it's like I I personally hadn't been there yet and so when we got there I wasn't sure like market-wise and then when I got there I

13:50

was like oh this feels good like you have to be there um you know basically off the the interstate access location what what you know there's a Starbucks not too like when you see those kind of things it's like okay this makes it feel better because there's a Starbucks close by there's a grocery store close by that you know public like it's starting to build out um and so you know what's coming down the road when you own that asset too so and then like the other Market we drove um the smaller Park we

14:16

we were pursuing it's like yeah this is there's a you can feel that energy there it's like okay this is a great this is a great Market um or this is a good solid market and we're buying in the right Space versus yeah driving some of these things that's like holy [ __ ] I've been driving down a dirt road for 20 minutes I need a car wash after this one this is not ideal did he call you yet no he hasn't we need to hop on a phone call with him today um that's actually I'm glad you reminded me

14:44

because he has not given me a call yet yeah okay see if we can snag that one yeah dude for sure that'd be a good one to pick up but uh yeah and I think it's interesting too there's like sorry go ahead go ahead no no no I mean if there's more de related I was curious I was going to go kind of take a left turn on this on this pod because I I was curious to see you know from uh from somebody who's posting a lot of content on MHP stuff and you know starting to get into that space I mean have you seen a lot of people

15:15

receiving you know kind of like that are traditional let's say you know the guy you met Starbucks and he was like dude what are you even talking about like what why are you you know you're not making sense to the that this is not right this isn't accurate have you seen a lot of that like a lot of push back from other like veteran MHP owners or people in like old school style uh with your new because you know you're the young guy or younger guy you coming out here 2,000 pads under in your portfolio

15:42

like crushing it um you know do they do they kind of push back on that at all when you're talking like hey this is like how it actually is no at least not publicly maybe personally they say Derek doesn't know what the [ __ ] he's talking about maybe I don't you know maybe I maybe I don't you know maybe I'm wrong maybe you you know maybe in 10 years I'll be like yeah you know what those parks with Wells yeah you know maybe I will say that but the thing about it is is that if you understand those things if you

16:15

understand how to handle a park own home or anyway if it's vacant if it's a sh it's [ __ ] box if it's a nice there's different ways that you can handle that it's not just oh there's Park own homes there I'm not even going to look at it yeah like that's fine send send that over like even even like a Wastewater facility like yeah I look I would agree it can be a headache right all all the above can be a headache but also like we've got parks that are City water and city sewer that have been headaches

16:49

there's no water pressure so we've had to replace the lines it's $40,000 you know like the lift station blows up you know 20 grand right so there's even been problems with some of that stuff even being City water and city sewer because if your Park was developed in 1950 I mean dude the pipes are made out of every material that's been available to make pipes between 1950 and 2004 it just depends on where you dig the lineup right right right right because Mom and Pop you know Band-Aid it the tenant

17:25

fixed it one day they actually got a plumbing company to do section in the back and then the rest is the old part and then so it's a you know it's a mixture of [ __ ] right yeah absolutely yeah yeah that's the only thing and and you know it's and what's fascinating is is like when I hear and again it's just I I get all this these thoughts because I just see these Facebook groups constantly just going back and forth and I'm like you know those are the things you you become comfortable with or learn

17:54

from owning deals I feel like a lot of these people just don't even own any deals or have haven't bought anything in the last decade so they really aren't in tune with what what's going on you know um you know and to you know and to spin add on to that you know I I do have a few questions specifically on parks that I'm running into on on some of the stuff like how H like how naive are people or Brokers when they're just like oh it's uh there's there's five on site and there's a you're able to add 20 infill

18:24

20 homes like tomorrow like so they look at these info opportunities and I'm like guys not as easy as it looks no like can you speak on that a little bit from experience like what it takes to actually infill a park because I just feel like there's a big misconception right now in that and it's a pain in the ass I remember I was talking to a guy you probably know him like oh yeah you know we're I'm gonna get this park we're gonna end fi I'm like well how much money you bringing oh we're just going

18:51

to bring you know we got to bring this much down for seller financing and you know I'm like how the [  ] you going to infill the park if if you don't have any money what are you going to do like because some of these people legitimately think that they're going to go down to the dealer and people are just gonna move their [  ] homes in we've never had that happen I've never had someone bring their own home without us doing it into one of our Parks I've never had that happen right it just doesn't like it

19:24

just doesn't happen right right like it's just difficult to do because let's just say you get new new uh used homes let's say you're in a market where a used home is 15 grand if you're in a market where a used home is 10 or 15 grand then you're in a market where your lot rent is 400 bucks okay so the Mak sense number varies right if you're in so let's say you're there and you're paying 10,000 bucks we we'll you know we we'll be um not conservative here let's

19:56

say you pay 10,000 for that home you got to move it in and set it up you're in a cheap market so it's maybe five or 10 grand right um you know if you can get 400 bucks lot rent maybe that works probably works right yeah now that's that's assuming the water and sewer is there that was my next question assuming the electric uh panel doesn't need to be brought up to code that's assuming the Mover doesn't break the [ __ ] Plumbing under the house which has happened numerous times um which is another five

20:32

grand to fix four or five grand depending on who your who your plumber is right and so it gets to a point to where if it cost you 40 Grand to do it and you can get 350 bucks in rent I mean I don't know well yeah that's that's and and that's the thing and I'm like looking and and I'm hearing these people talk about info opportunities and the main thing for me was like the utility setup it's like guys it's like just because it said just because there's actual like grass on the property and there's space

21:03

like quote unquote there's enough land there that does not mean you can add just an additional five homes onto the current septic system or the utility setup or you gotta like there's things you have to do and then okay okay let's go file permitting and then you know you know code enforcement or health you know Department comes out and they're like oh hey by the way you have to tap in now uh to the city Seer because you know you can't put in septics we don't allow it anymore like there's so much nuance so

21:28

much depth there that these people that just don't understand that and that's Brokers included like if you're a real estate broker and you're trying to pitch a deal based on uh infill opportunity and that's how you're valuing the deal like shame on you there's a lot more to it you should know that dude I'm telling you I I I actually I got mad at a guy on LinkedIn one day because he maybe he listens to the show I don't know I can't even remember the guy's name but he sent

21:53

me a deal that was I think I sent it to you and we were laughing about it it it was someplace up in North Florida like you know not highly populated not a highly populated area my neck of the woods maybe your neck of the woods but your neck of the woods is at least you know civil to look at this was an uncivilized yeah and it was like a 100 a pad and I'm like dude you're it was like 2.

22:28

4 million like 22 or 24 occupied but you know he could you could infill and add 15 Lots you know and he's like oh well you know blah blah blah per lot because he's counting the vacant lots of the lots that aren't even developed and I'm like dude like it's just called like tell tell me you don't know the business without telling me you don't know the business thinking that there's there's value there because that like hey there's you so like the park we're but we're getting there's a [ __ ] ton of extra land undeveloped land

23:02

I literally put zero value on that like I'm going to go shoot my I'm gonna go shoot my guns back there like I'm not deforesting the place I'm not you know we're probably gonna add some there I think we talked about but we're not like I'm just not going to do it maybe we will eventually but it's icing on the cake value yeah is insane absolutely and you know that's just where I feel you know there's a lot of you know naive you know unfortunately misinformed people in that space you

23:39

know and and and just even like you know talking about going through it with you I haven't personally you know experienced it too much but like just going through some of the stories with like permitting permitting and stuff like utilities and oh you know it's like you're dealing a deal with a mom and pop and it's like oh it's not a big deal blah blah blah or whatever and then next thing you know it's like septic goes out well you can't their place a septic the city is like now you got to tap you're

24:02

forced to tap in and it cost x amount of dollars like people and that's where like the cash reserves about break you know no money down opportunities it's like this just so dumb and it makes me sick to my stomach to hear these guys like oh I want to buy a park and I'm like sweet love to set you up with the deal what are you thinking well no money down what the you talking about no money down I was like even if you got the deal they handed you the keys for no money down you still have to have money aside

24:30

for things like that yeah like oh no closing costs you didn't get a phase one you didn't get a survey you didn't you don't have to pay for Doc stamps like for some reason like you don't yeah you don't have to pay for that out you don't have to pay for that yeah by the way the city won't let you replace it so we got to tap in quarter of a million bucks yeah dude I'm I'm telling you and I I've talked to many people many people that have said hey hey dude I got to put 300 down for this deal

25:03

okay how much what how much Capital you need to bring to the table 300 I'm like oh what about this what about this what about this what about this what about this is the park a dump yes okay what about this what about this what about this yeah and it just continues and and and so I guess like segue you know this segueing this conversation into you know let's say somebody's a newbie and they're listening to this like and they're and they're hearing us talk like because you know you hear a lot of these

25:32

influencers and social media people like oh you can buy a deal you know no money down blah blah blah and the reality is it's like okay I think we are getting into their head that they cannot do that that's just not realistic so if I'm a newbie and I kind of know the answer to this because I'm doing it currently but if uh I'm a newbie what would you recommend how to get their first deal a ie should they invest with somebody that knows what they're doing if they have a little bit of liquidity and maybe don't

25:57

have the time to to do some other you know the management or whatever um and they and they realize like okay hey I'm going out to buy my first solo Park maybe an eight patter and it's I have a 100 Grand right you know should they should they do that or they should they invest into a bigger deal or should they you know be you know what what should they do if they're brand new in the space they they're active they're energetic to get into it and they want to you know be a part of their first

26:21

deal well yeah first I mean like if you really want to get into like you know one thing I'll say before I get into that my last thing I was mentioning on you know the people that don't know those little nuances things is the people that won't even pay you know 300 bucks to come to a master class right where you would learn that little thing they won't even pay 300 bucks to do that they'll email me looking for tons of free information which I'm fine to do right like I'm fine giving out

26:52

information but at some point where is it like do you know how much money I've spent on person development [  ] bro we I dude same I just [  ] in like it's insert like I don't even know like half a million bucks yeah I'm not there I'm probably 50,000 but like you know like I D I just I like it's not even a question anymore I just wrote it I just I just debit card [ __ ] 10x growth Con tickets like boom like if front three rows or whatever it is like the most you know High ticket ticket they have it's like what's the

27:25

most expensive ticket you got like slap it down not even question yeah well and and back to your question what should someone do well there's different options depending on what you are if you're like if you're like I was and if you're like Spencer is and you're just an animal at finding deals well that's a really easy way to get in because you can find a deal you can um you know find the partners that'll help you close that deal you can go that route and be The Sweat Equity like I did um so I did two

27:57

things I found the deal and I was willing to be the Sweat Equity um you know that's what Spencer's doing y right um You could also find the deal and you know wholesale the deal you could assign the deal take the fee in equity um you could I mean I think that like really just like if you were like hey I want to get into this business this is what I did I was like I want to get into this business I'm like boom only thing I know how to do is call I can make contacts so I'm going to just start calling and

28:33

doing that and once you commit to something stuff just starts to fall your way not just hey I might do this for a little bit and see if it works right you're not GNA Get Lucky with that kind of ad it like with that Outlook you won't get lucky but if you're like dude I'm gonna do this I remember when I first met my business partner I I met him in his house and I was going through some deals with him and I was just talking to him about the real estate business and I forget what he asked me he asked me like uh he

29:07

was like oh so you know what what uh you know what asset class are you looking to get into I like I'm getting into mobile home parks no no no I'm getting into this asset class these deals I'm getting into these deals yeah I had already made up my mind and then boom you know stuff just started coming in but most people don't make up their mind that's that's one of no they don't make the decision and they won't are they're afraid to commit which is so fascinating to me because it's

29:33

like you know I've been thinking about this a lot lately in the philosophy of life it's like you like yeah it's it you have this fear and it's and it's to you know I don't understand though it's because it's like you have a fear to commit but then is it you know you have a feel of fa failure or whatever and it's like dude what is Your Life currently like you can you can always revert back to where your current situation you know so it's like you might as well take that

29:59

you know risk and and and uh you know go for it and then make that commitment and so yeah dude like that and that's like for me you know getting into this space it's like okay you know did I think I was going to get into mobile home parks as a real estate investor no I kind of knew I wanted to get into real estate investing I knew that was the endgame and own owning assets and building my net worth right but I didn't know what asset class the only reason I found this asset class is because I came into a

30:23

deal and I knew someone you who was in that space and I was like hey found a deal and you're like sick like I like this deal and we're still trying to buy that deal maybe someday we'll buy that deal if he becomes a seller um mother you know and then yeah yeah dude pisses me off but then moving forward it's like yeah just okay I got this guy who's buying deals so how can I figure out a way to make his life easier I.

30:48

E find him deals underwrite the deals become a soundboard for this guy um you know and then he's doing his thing on the capital end and so there's got to be like if you're going to partner with somebody like you can't both be finding deals right you someone's got to be providing the deal finding somebody's got to be providing that you know the capital somebody's got to be dealing you know the backend operation systems and things like that and so if you're a newbie or if you're just wanting to get into the

31:10

space like the idea that you're going to find a no money deal buy it yourself own it 100% yourself it's just not realistic and so that doesn't mean you can't get a deal but you need to be if you find the deal it has to be a great deal bring somebody else in um you know and and like Derek said take Equity take the assignment fee use that as Equity you know roll it back into the deal um you know and do it that way you know or or if you're or if you have like a whale dude if you have somebody that's like

31:38

you know you know maybe you know somebody who's really wealthy you know and has money and they want to get you know connect them with somebody and then figure out a way to get in that way you know figure out what you have and and and use it you know and that's kind of you know what I did so for sure yeah if and and if you want to get in you can get in like dude like if you want to get in you can get in like I had I have a guy in my uh mentorship program who literally wants to get in and now he's

32:11

in working with us right that's what I'm saying man like he he figured out he showed enough value that now he's he's on our team right so exactly I was just gonna say that I'm like if you really want to get into this game like why would you not join like quit being quit being you know you're being unselfish by you're being no you're being selfish by thinking you could do it on your own you know and the reason I'm saying you're being selfish is not it's it's because you you you know

32:42

you're you're you think you're gonna get 100% ownership of something or whatever in the beginning and and I'm trying to think of why I say it that way it's like you know Cardone always talks about he's like you know you need to be selfish but you're being selfish by not being selfish in the sense of like not provid fighting and going out and you know conquering or whatever but um dude quit thinking you're going to do this on your own come join us come join me come work on my dude you'll have a deal within the

33:07

first couple weeks you'll either have equity in or you'll get a you know assignment fee or wholesale fee for and it'll be more money than you know probably you've made all year or a third or a fourth of what you make in a total year on one deal right and that's like so if you're willing to get the game like there's plenty of people willing to help you and that's what I'm realizing and the bigger I get and the more we do it's like oh this person's willing to help this person's willing to help it's

33:30

like yeah everybody wants to help each other because it benefits us in a way right and so if you can benefit you know if I can make your life easier you're going to let me you know play the game with you just like you know your partners did with you by being the dealfinder and The Sweat Equity guy correct correct yeah dude I you know so you can get I guess the short answer is is that if you really want to get involved in the game you can get involved in the game you can do it yeah if you really want to you can do it um I just think a

34:01

lot of people don't really want to you know at the end of the day if they want it they want it bad enough they'll do it but unfortunately social media is making real estate investing super like sexy right now and there's a lot of bad information out there like it's just you know really really annoying to see it so you know and that's and but you know they they they create these courses and they sell these courses because it you know it sounds good like hey no money down like yeah I could sell you a course on that

34:29

too but you're not g to get anything done yeah you know I me or it might be a single family sub two deal and I do I like Pace morby he seems like a great guy I'm sure i' would make you know he he you know but like come on man like you're not gonna pick up a good asset in Tampa Florida with no money down or sub two like you know you might be able to pick up some dusty old park in Live Oak Iowa or oak tree Iowa that's doesn't exist that no one will ever buy from you down the road that no one will

35:01

ever live in by the way and you still won't be able to do it with no money because of the things we just talked about so like that's just not reality yeah it's not reality at all it's not reality at all it cost me 10 grand to to learn that and take his course on to realize that's not reality where we're giving you this information for free yeah we need to start I'm gonna start charging I I'm [Laughter] done bro I'm making I'm doing I'm making four hours Live code calls every day and

35:30

I'm streaming it to YouTube for free yeah you yeah you're giv you're giving away the gold dude but you know the interesting thing so this is the interesting thing so like most most people that that take the free data and and want like free for free for free it's just fine you know I don't mind free [ __ ] um they're not going to do anything with it anyways that's why I'm not afraid to put it out there you can put it out there but like when it comes to like actually hitting send and and

36:01

doing this like it's not you know I could literally be like hey this is the phone number to this park they want to sell right now here's the deal blah blah blah blah blah and show it all right here and they'd be like oh somebody would call if I saw that I'd call somebody would call somebody would call out there but like you know not as many as you think yeah it's weird though you know and like I'm you know cold calling live I'm showing the doing going through my script of verbatim like what I do my

36:30

processes and it's like yeah I'm so comfortable doing it because I know no one can one I have 10 years of experience on whoever is getting started today so like good luck competing um if you did want to do this and go with you so might as well just join me is kind of the conclusion here like just if you want to get started like just come on board we'll get you rocking and rolling um but in two it's like okay good you know I've been doing it for 10 years and I'm not gonna quit so it's like

36:57

that's why I'm comfortable doing it live so you know whatever um but yeah dude and I want I do want to help people that's kind of the idea behind it and kind of but there's a there's a there's a false sense of reality out there so I'm really trying to get them to understand what it takes to do what we're doing and so uh you know just trying to show it more by by doing it and being like guys you have to commit to this I mean and that doesn't mean you have to quit your job if you have a job

37:22

right now it just means you need to do like you you had an insurance business and you had a thousand pads dude like that's when you finally retired from the insurance industry so it's like if you could speak on that a little bit how would somebody who's working at 9 to5 listening to this or maybe they're a teacher or somebody you know maybe start trying to get into what we're doing so they can also set up some cash flow for them or maybe they want to continue teaching like what would you recommend

37:46

somebody because I think anybody could really do what we're doing for sure for sure and you can so yeah I I had the biggest uh I think it was about about the biggest team in our particular area um we were crushing it I had 100 plus sales people yeah I had a baby on the way I was my office was an hour away from my house so it was an hour there hour back every day um I still worked out every morning I still did a few hours of personal development just about every day um and I still spent time with my wife who was

38:27

pregnant like and needed help and um something had to be sacrificed and you know what it was for me what was it sleep yeah some somebody might say oh well I gotta get my eight hours of sleep [  ] you dude like I gotta get my eight hours of sleep dude when you're like on purpose like I never felt tired because I was like oh my God this is going to be [  ] huge like we're going to like there's just stuff coming like I was energy you get yeah the energy you get from the big purpose and having something to yeah dude it's

39:05

like it gets you through those but you don't even think you're tired yeah yeah and this is the first so I was like okay I'm not gonna sacrifice time with my wife X that off I'm not gonna sacrifice the gym X that off I'm not gonna sacrifice the the insurance business which maybe did s you know falter a little bit but I was like yeah I can't do that um I'm not going to sacrifice my personal development time because this is what got me here I'm not gonna sacrifice so I'm like okay sleep ah you

39:39

know I can give up an hour an hour or two and it wasn't like there were some nights I got like four hours of sleep and I was still up at four going to the gym like whatever I wasn't sacrificing that yeah when the thing is too when people are like oh I got I need my eight hours it's like well you didn't need your eight hours in college when you were B doing Benders all night oh yeah when you knew you were getting up in the morning and day drinking at [  ] burrow Loco [  ] yeah exactly so you

40:06

know it's just like yeah I agree man and that's you know that's kind of like it was for me and like dude if I was a school teacher right now and I was listening to this I I I don't know why maybe I thought I was a school teacher in my second life or something or another life but I'm like dude I would be 8 to four school teacher like from 4 to seven you know grade papers whatever I'd be dialing bro like be dialing I'd be trying to find a deal in my local market trying to figure out because as a

40:31

school teacher you don't have the funds more than likely to make something happen but you know find but however that doesn't mean you can't get into a deal or start buying some deals by finding them right so I would be spending all summer sourcing deals trying to find a deal and then I'd be spending four between 4 pm and 7 P.

40:48

M just making like 50 I can make 50 to 100 dials in three hours like you would find something and then you could School teach during the day and then just like Drive The Parks at night be boots on the ground at night in the weekends dude One Park can change your life like we talked about you know like this guy up here he was a sheriff dude's gonna sell his park for $4 million yeah but Spencer but Spencer my my show comes on every night and I like to watch Netflix with my wife and husband well that well that's fine

41:16

like good like then don't do it right like and that's the thing man it's like and if you want to watch Netflix like I'm okay see I'm I'm a little bit different like I'm okay if you want to watch your Netflix but just make sure all your shit's done first yeah you know so if you want to watch Netflix and you want to you know you want to watch at 10 o'clock at night and you're winding down with your wife or nine o'clock at night or whatever I mean I'm getting into bed

41:36

so I haven't watched TV in a while but like let's just say you did want to watch a show or a football game like that's fine yeah just make sure all your shit's done first you know like and prioritize that it's amazing how much time you have to actually get it done than what you think like like I said you can make a 100 dials in less than three hours like that's just fact and 100 dials will get you at least a deal a day and so so it's like for sure you know what I'm saying and so it's like that's

42:00

only three hours what else are you okay from 4: to 7 great the games on at 7:30 go crack a beer go watch the game whatever yeah yeah I mean now I'm not I don't drink but you know what I'm saying it's like these people that are like oh whatever you know it's like you still can do this St what do you do for fun Derek what do you do for fun you don't drink you don't like what do you do for fun I'm like you know what I do for fun like dude my life is going exactly dude like I have fun all the time like I'm

42:31

underwriting a deal that I might get under market like that's fun with like going after the deal and like solving problems and you know building something like that's fun to me it makes me like feeling productive yeah that's fun absolutely I just absolutely I'm the same way it's like yeah I don't drink anymore I quit drinking um you know I used to uh but I it's just like it I don't see the I don't see the benefit of it anymore now I do smoke cigars I I love you know a nice cigar I

43:01

haven't smoked one in a week though um W because I haven't left my I haven't left my house in like a week calling I'm just calling all day I think the person I think the person that asked you well what do you do for fun is like I think what they're really asking is like I don't know what they're really asking but I think it's something it's code for or something else right even Arman so Arman with me because I've been like the life that I live is different from and and you can

43:37

ask Arman when we went to that thing in in Vegas he stopped me and he's like dude Derek you are completely out of the Matrix you do not do anything that the normal average everyday person does like it's just you don't like you don't do anything and um you know it's just diff difficult for people to like you know think grass well and and and you know there's a reason why you know you have aund you know you could I guess you could question the value but let's say $140 million portfolio you know and and

44:15

you you like and that's that's the reality all those producer all all the people that are billionaires and the people that we aspire to be operate that that like that so it's you know they are different there's so few of them right and so you have to operate like that and that's where I'm learning how to operate like that because that's where I want to go now like the people that ask you it's like oh what do you do for fun in my opinion they're just asking they're they're trying to justify like you know

44:39

they're trying to make you feel uncomfortable or bad for being the way you are because they they they they internally feel guilty about having fun yeah going out and drinking and all that right because they know they're supposed to be doing what you're doing but in reality they're like ah [ __ ] I just got drunk three days in a row like yeah whatever and that's like you know chilling with Arman know the cigar lounge or whatever and I I can enjoy that for a podcast I enjoy a cigar and you know but the whole time I'm

45:05

write writing down notes deals like listening to like that's my personal development time usually is like podcast cigars taking notes or like doing a deal or on the phone with you right um it's just because I have a dependency problem it seems like I always have to be drinking like water coffee or fidgeting or cigar whatever you know I don't know it's like ADHD or something I guess I don't [ __ ] know never been medicated um but yeah dude I mean it's just I think people you know ultimately are

45:32

just insecure uh and then the people that aren't insecure about their life and have purpose it just makes them feel really uncomfortable and me and you are just in our own lane we're like whatever we just don't that's why we're willing to do this right like so why I just don't give a [  ] like people that don't give a [  ] are the most dangerous you know yeah um but dude well the um yeah what we were talking about before if anybody wants to get started you know hit Spencer up hit Spencer up

46:01

we can get you started we can yeah dude if you really want to get in the game like really really want to get in the game I can get you in the game like you know at no at no bar the only barrier is gonna just be following my system there's no money involved like this is a free way to get into the game until I start charging you for a course which you know might be down the road but like I'm not it's like joining my team it's a it's a it's a low barrier to entry I mean there are standards you have to

46:28

have but there's things you have to do and if you don't do that you're not going to be on the team but you know like like the guy who was in your group who connected with you who paid I don't know how much to get into your I think what was the at the time to get into the group 997 maybe more a couple Grand Couple Grand so he paid a couple Grand to get into Derrick's group he's gonna get a very nice check here in about 40 days that is way more than what he paid to get into your group by following my

46:55

process in our process yes so sign if you want to get connected to Derek sign up for his program and then he'll connect you with me because he'll know if you're legit or not and it's worth it because you start learning the lingo I don't think I could take I could probably take anybody it would be a challenge but I think they need to go through some sort of program to understand what they're you know calling about and understanding the nuances of Park details which I think you do a very

47:19

good job of explaining in that program so I think it would probably be good for them to join your program and then yeah shoot them over to me and I'll take them to will take them to a place where they're making some serious money or getting some assets into their belill yeah for sure for sure and what they people don't know is that we have we have the secret over here we've got we've got the expansion Oracle on our team I'm not gonna say but we got the expansion Oracle dude I was I was Arman was like

47:51

talking to me a lot about that in the podcast and I was like I'm not gonna say anything um there like I'm not dropping names or nothing but I'm like this guy could work for blacks though like this guy is next level you know and it and it's like what people don't realize is is how important that is and 99% of businesses don't have it and so like dude like they don't even like we're flinging deals we're shooting we're like gunslinging deals over here like flying by the seat of our PS doing

48:21

what we're doing and now we've Incorporated this guy oh my God woo yeah it's gonna be it's GNA be yeah yeah Unstoppable Unstoppable dude Unstoppable well dude I appreciate you coming on man we'll uh we we'll have to hop on again I love uh you know getting on in chat and we always have a good conversation like I said I'm going to keep my mic with me on some of these phone calls especially when we're like you know talking about how crazy some of these sellers uh are and yeah dude 100%

48:56

we got to start documenting more of this stuff getting some maybe get a videographer on us more uh when we're together um I think it' just be funny entertaining and and educating at the same time and then yeah dude we'll we'll keep doing this I think we I think the people need to see more of us uh doing more shows and things like that consistently so they can continue to learn and you know help help them get to that that first deal or whatever they're trying to Aspire to do so um yeah this

49:20

is a good time to end it I just got a text from our one of the guys we want to do a deal with so um um the one we sent the contract out on so he wants us to hop on a call with him ah ah ah I like that so yeah thank you all for watching the MHP show and listening to the MHP show please like And subscribe on pod on uh iTunes Spotify all the podcast and we will catch you all next week

Linkedin

Facebook

Instagram

Tiktok

Youtube

Twitter

Substack