Mobile Home Investing: Affordable Housing & Note Strategies with Alden Guajardo

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Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host, CEO of We Close Nodes, Scott Carson.

Good morning, good afternoon and good evening, everybody. Hey, welcome to this episode of the no Closure show. As always, Scott Carson jacked up. Be with you today. Hope you had a great Memorial Day weekend out rocking and rolling along in the sun. Well, I've got a very special guest join us from out in sunny warm Arizona. You guys have heard us talk about affordable housing is a big thing. You know, we've had different community members here in Texas and other folks talk about it. But one thing we're always funny, we've, we've struggled to get is somebody on here to talk about mobile home investing and get to talk about how that is. I really think is that we have such a huge need for that across the country. Now you guys have seen me break down tapes and talk about, hey, sometimes you want to get rid of mobile home stuff off, especially if it's out in rural and trashed out, stuff like that. Not the greatest piece of investment to buy. Especially if you follow the number one rule of no invest. Never buy a note you don't want to end up owning. Right. But today's special guest is not only a huge advocate of affordable housing, he is living and breathing on a day in, day out basis from the sales of mobile homes to structuring creative financing and start financing for mobile homes. But also talking about his education side and stuff like that. We're talking about Alden Guardo Alder. How's it going today, buddy? Thanks for joining us here on the Note Closure show today.

Hey, that was a warm introduction. Thank you so much. Happy to be here. Prolific, you know, out in note investments being on this show. So thanks for the opportunity today.

Yeah, no problem, man. No problem. So let's talk about how do you before we get into more of the nuts and bolts kind of where you're at, what kind of has driven that passion for affordable housing for you?

You know, it's a huge need now more than ever. But about eight years ago when we started in the business, I partnered with my father who's a long time real estate investor, bottom up construction, wholesale fix and flip, you know, you name it. And through the environments of in the communities of like Arizona, real estate investors association and others, we found there to be an opportunity in an adjacent strategy of what people were doing. And a lot of individuals are buying mobile homes and selling them for transport to other states, other institutions that own mobile home parks. And that came with a lot of hardship of, you know, the capital it took to transport it, the permits needed in order to do so. You know, all the above where we saw a modified program of what other people were operating in, but not so much capitalizing on a fix and flip strategy on manufactured housing on leased land in the, in the park, not moving the home and things of that nature. And as we started to explore and cultivate the market, you know, we saw how much of a huge need it was, not only here in Arizona, but as the years have unfolded nationwide. You know, affordable housing is such a huge need. So that's kind of how we fell into the business. You know, we saw other individuals operating, making profit. And, and our, our modification of that strategy created, you know, unique problems and unique opportunities that not a whole lot of people were delving into because of the negative connotation of manufactured housing. So as we started fix and flipping, you know, we didn't have all that much success in exiting with other banks and private institutions. You know, you can't just go down to a Wells Fargo and get a loan on a manufactured home. Unfortunately you would think that were the case, but that's not so much an availability, unfortunately. So as we had hardships, you know, these unique hardships and fix and flip strategy of manufactured housing, we found the creative exit via seller carry finance. And as we started doing that, you know, each plateau of business comes with its unique challenges and things of that nature. So you know, we thought we had it all figured out now seller financing started doing a dumb amount of transactions, you know, getting real velocity at that point, which created the problem of burying money in great cash flowing assets. But you can't go out and do it all over again. So we see just a vast amount of opportunity in front of us at that time. Three, four, five years ago, I had to get nimble in the note investment strategy of how to buy a note properly, sell a note, how to originate a note, why use a mortgage officer, why use underwriting, you know, and cultivate that. So we, we're gaining velocity in the fix and flip seller finance now, cultivating a bank quality note and the rest is kind of history. So over the past eight years we've done about 300 transactions, about $10 million in personal property, manufactured housing. And just to preface that's all here in the Arizona market. You know, you mentioned you don't want to buy a home in the boonies. Right. You know, at the end of the day, you don't want to buy something that you don't want to end up owning. Well, these homes are in institutionally owned communities. We've learned to cultivate those relationships, you know, provide a quality home and a quality community in a desirable area with an underwritten client. You know, so that, that's how we started, kind of started to cultivate throughout the business. And now we raise private money for the notes that we originate because we have so much opportunity in front of us, Scott and here in the Valley that we have to ultimately get nimble, raise money either for a one year term or 20, you know, on the note, either hypothecated or they buy a whole note. And that goes into the whole realm of note education. Because of the vast amount of velocity we're being chefed here in the Arizona market, one of the most dynamic markets in the nation, you know, with not a whole lot of natural disaster risks, not a whole lot of fluctuating insurance needs like a Florida market, potentially. Know, and people are still kind of moving here. So I said before, now is a better time more than ever because of the affordability crisis. You know, average purchase prices, a single family property are $460,000. Average income 60,000. You know, that does it. So much breakout and then with hardships and multifamily, you know, that creates unaffordable rental rate. You know, the, the nump. The.

Well, slow down there, slow down there, horses, slow down there. You're doing a great job. I love you. But let's, you're hitting a here, let's, let's take it back a step here. Let's. Because you're covering a lot of great nuggets and I completely agree with everything you're saying. Okay. But for those that are listening out there, those that may not speak the same language you and I speak all day long. Let's take it down a little bit there. So, yes, I'll give you a little bit of my background. Used to work for Palm Harbor Homes back in the day for a while actually. So.

Right.

Been very, very passionate about affordable housing. You're exactly right. It's very unaffordable for most people to buy. And I think if, especially when you start looking at folks coming out of school and first time homeowners, they're getting priced out of that starter home, you know, and I think a lot of People think when, you know, people are happy to get in a home, affordable housing, but a lot of people come in, oh, I want to buy that dream home because of all everything I see on Tick Tock and Instagram. Well, that's not the way you're supposed to start somewhere out. And it's better to have something you can build equity in, something you can get into versus paying rent that's not going, not going to get. Right now of course in a mobile home complex you're paying a little bit of land rental, but you're also paying for a house to call your home. You may not get a lot of great amenities. Okay. It's like I could compare a lot of the great mobile home parks out here are like living in nice housing complexes, pools and community centers and great neighbors. Right. Just because, just because they can't afford as much doesn't mean they're bad people. You know, in a lot of cases, oftentimes happier people because they don't have more money, more problems. Right.

You, you said it. Great. You know, at the end of the day it's a condominium style living, you know, with some shared amenities. They don't have to worry about a shared wall or a third floor apartment complex. You know, those come with their challenges. If they want a red door, they own the house. You know, they can have a red door, they can make it a home. You know, a lot of these parks have school pickup and drop off where the alternative is an apartment, you know, condominium style solution and to even qualify for like a condo. Condo right now in this Arizona market is pretty tough and the, the options aren't all that plentiful for the affordability that someone's trying to match. So you know, where, where do they go nowadays? It's truly a state of emergency, you know that they literally elected it as a state of emergency. And you see these multi family complexes try to go out and provide for the need for doors, but at that point with labor and material, you know, it's already out of the affordability before they even build the property.

Right. Well but then you also run into what we see happening right now. You have a lot of multifamily complexes have sold the last three to five years that are struggling to get by because people, oh, you know, investors over finance the property, bought them at 90, 95 cents on the dollar and then finance it with private capital. I've got a friend who's in 20 different apartment syndications and he's, he's not getting paid on 19 of them, you know what I mean? It's tough. And that's what I like about what you're doing is that you, it's kind of like, I call it a tripod. Kind of like you could say, you remember those, you know, you've got three, three tripods there. One, the selling of the, these homes in affordability and helping people get financed. Those that can't finance this tradition because it's like you said now Wells Fargo used to be a big financier of mobile homes, but they bowed out of about, I don't know, about 15 years ago. There's a lot limited aspect in getting financed on stuff like that. What is it? What's the biggest one?

Is it, I would say 21st mortgage.

Oh yeah, 21st mortgage. Yeah, exactly. Is one of the bigger, biggest ones out there for sure. And there's a couple other smaller ones out there. But let's talk about what a tr. How does it in, in what are some of the differences you see in somebody financing a mobile home with 21st mortgage versus a, a three bedroom, two bath home? Are we seeing higher interest rates, bigger down payments? What are you kind of seeing? Is that so we can give people an apples to apples kind of comparison?

Great question. Yeah. So not every lender is going to lend on personal property. Chattel mortgages. Right? Chattel manufactured housing, personal property. And those rates are anywhere from like, I've heard as low as 9,9% to like 20% depending on the market and things of that nature. You know, the credit criteria, their ability to repay, the case specific year manufactured on the home, you know, has its implications. Some lenders don't work with some ownerships of communities, you know, as an end user to try and navigate that. When you can just go to Wells Fargo and get a loan for a single family property, you know, it's like virtually a polar opposite environment.

Well, but I, I, I would, I would maybe go against it a little bit because most of the banks, you've got to have great credit to get financing. If you don't have good credit, you know, 660 or greater, you're not getting finance in a lot, a lot of cases. And that's not, that's not the case all the time with mobile homes, is that correct?

You know, they offer some reduced credit environments. You know, it just depends on their overall financial well being. You know, obviously stellar credit and stuff is kind of the assumed environment for residential purchases. You know, these are a little bit less than qualified for a single family purchase, but actually fit Great for manufactured housing, you know, because of price point, you know, and things of that nature. But you know, when someone doesn't qualify for a third party lender, say in manufactured housing, that creates the opportunity and you know, the, the bell rings there.

That's what I'm getting at. There's an opportunity for folks. Not every, not, not every manufactured home company is going to allow that or they necessarily want to do that. When I worked at Palm harbor, they wouldn't carry financing.

Right.

A lot of stuff. But I think this is where you are feeling that you've seen that gap and being able to say, well, if somebody can come in with some down payment, because we all know a lot of cash buyers or people that are struggling are used to having to come with bigger down payments in a lot of cases. And let's, let's talk about that. Besides you selling them, let's talk about kind of that, that aspect. Okay. You see an opportunity in your financing that.

So where hardship comes, presents opportunity. You know, in a highly misunderstood, undervalued and under capitalized environment, it creates a truly institutional play in the paper on manufactured housing. And we originate through seller carry finance. So currently we don't do any third party transactions. It's all homes that we control, but that allows us our availability to where a national lender probably wouldn't finance because of either the ownership of the park or you know, just some case specific documents that the, the buyer needed. They can really afford to pay as they go through our underwriting, you know, and it was just a ding because of a medical bill or whatever it may be. You know, that stuff happens a lot. And there's virtually no other options for an individual coming into a situation where they found a house they've fallen in love with and they just can't get secured financing. So that's where we've stepped in and started originating seller carry programs, you know, where, you know, a lot of individuals that may even be watching here today, it creates a challenge because there's not all that huge resale market for the, the paper itself unless you've cultivated a brand, you know, so it creates, it's a hardship to navigate. But to be able to properly package everything together and know that the house was quality and, and maybe the bank didn't finance it just because of the one specific tax document or whatever it may be, you know, that creates a branded, double underwritten asset at a double digit yield. Well, what were those yields? Those were 9 to 20% iseller finance here in Arizona at 14. You know, and you could buy a note potentially for the face rate and participate in that transaction, you know, being the bank where in the alternative of a single family note, you know, the yields aren't all that much high, you gotta maybe get a discount, you know, in order to get a satisfactory higher yield on your return, you know. So as that's cultivated in the problem when I just really wanted to exit my fix and flip at the end of the day now to create this whole back end strategy and know that we can find either an IRA or investor or, or you know, a non accredited person who wants to buy a note just for personal investment. You know, those are all areas of conversation that have been cultivated from that initial problem. You know, just trying to exit the home in a fix and flip strategy. And now we're participating as the bank, you know, making money outside landlord and tenant complications and Ginnie Mae who bought the house cried at closing. You not only got a feel good investment strategy and out in the market creating an owner in a time when it's needed most, when they couldn't qualify for a single family property and they have kids or whatever it may be, and you're now your cash flowing at say ninety thousand bucks, a thousand bucks a month, you know, that just now starts to open the eyes I think of a lot of individuals that were like hey, you know, mobile homes, you know, you can just pick it up on a flatbed and get it out, you know, out of there. You know, that's a travesty I think for not only the, the capital appetite into the environment, meeting the need, but just the misunderstanding and common misconception. You know, Trailer Park Boys came out on Netflix and that didn't help, you know, the environment by any means. But this is a new, this is a new day and age, you know.

Yeah.

Your opinion is on that?

Well, we, I think, here's the thing. I think modular built is just as good as stick built. You know, the, the ability to build a home in a factory in pieces and have it delivered in pieces and put together faster I think makes more sense than anything else. The, the, the, the cost dollar average to build a, a regular home versus a, a modular built or a, a manufactured home, no comparison because modular is going to beat you, you know, be so much cheaper in a lot of cases. Now the, obviously the biggest expense for a lot of folks is that land and utilities and stuff like that. But if you're going into a, a park, you've got on site management, you already got on site utilities and let's face it, how many times has park managers woken up in a module a mobile home, you've been moving out of the park. It doesn't happen, right? It doesn't happen. The only way we do it if it was like in say like the famous. I remember the famous marketing piece that Palm Harbor Homes used to use with the Hurricane Adam back in Florida, Aaron, or something like that where a hurricane went through a mobile park community, trashed everything except the Palm harbor home. Sitting up there, I'm like, okay, yes, you had a lot of boxes built back in the day, you know, stick boxes. But that's not the way that these things are built now. You know, they're built more and more like a regular home. Good quality, craftsmanship and you know, you've got somebody who's gonna take care of. Pride of ownership is one of the most important things out there too. It's not just a, you know, it's not the little RV in the back of a pickup parked with four flat tires on the side of the road. You know what I mean?

No. 100%, you know, the, these are much, much more structurally sound and more stable, you know, than ever. I think it was after 1978 that they changed a lot of the building codes. You know, lead based paint, asbestos and stuff like that.

You know, getting rid of aluminum wiring which is pretty common back in the day. Yeah.

You know, so the common connotation towards non stable falling apart home, you know, a lot of these times, these homes have been here for 50 years in their current location and never moved once. Probably 99% of the time, depending on what market and stuff like that. Well, those are the homes that we're picking up, you know, because we see the opportunity and see a stable environment. It needs rehab. You know, it's sat there for 50 years. What house is not going to need rehab after 50 years? You know that, that's just, you know, out of the negative connotation is where it creates the opportunity because there hasn't been players in the, in the marketplace to fix and flip these homes. When the parks don't really want anything to do with it, what do they want? They want the park rent at the end of the day and when you're talking to everyone in their mother and single family who's fixing, flipping houses, there's not a scarcity of people to fix and flip houses. But in manufactured housing, you know, just people haven't delved into the market because of their, their hardship in the exit, you know, at the end of the Day and that just creates so many more opportunities here in the valley. 300,000 manufactured homes here in the valley all being financed insurance policies, warranties, you know, from institutional players in the most of the parks here I think in the nation actually I saw the other day were built in the 70s. So when they built the parks they brought in a gang of mobile homes. And what year were those homes? 1975, 1980. You know, they flooded the park with inventory to get their lot rent. And now 50 years later, those 1975s and 1980s units are still sitting in their same condition because no one came in and fixed and flipped a strategy. You know, that's a quarter million manufactured homes that are waiting for an institutional player to come in and facelift or you know f, you know, sell seller, carry finance and all the above. Where the alternative even say for the mobile home parks, what's their replacement cost? You know, by the time they try and buy a unit new here in the valley from a, a brand new manufacturer, they got one hundred and twenty thousand dollar purchase. They still got twenty thousand in transport and setup. That's one hundred fifty thousand plus commission and you know, time on market. It took them a year to do it. That really starts to create all kinds of trickle problems for the institutions that own these mobile home parks that may have bought a 1970s, you know, constructed community. And now they got influx of needing to rehab inventory. You know that just, just goes on to show the massive available opportunities because of the negative connotation towards the environment and the non structured exit strategy. You know, it's a real diamond in the rough, I believe. Opportunity to try and navigate not only the fix and flip and sale of the home, but also build a brand and awareness that this is a bank close quality note. Still the same note and ability to repay as a sfr. You know, maybe sometimes even higher. You know, sometimes between the comparison of the non evictions and non criminal background and things of that nature that some of the communities require upon the underwriting of the note. You know, where we're not just the lender, we're not just fix and flip in the houses. Now we've got an umbrella brand to be able to run a vast amount of deal flow because of the 1970s environment.

Right.

The data points really just start to pick out.

Yeah. So your model. So clarify you're. So you're going around to different parks. If I'm understanding what you're saying. You're going around different parks there in Arizona and finding homes that need to be Remodeled, you know, you're able to pick this up relatively cheap, I imagine, because a lot of homes want parks that take them over. Ownership want to get, you just want to get them off their books a lot of cases. So they're often willing to sell them at a discount price. You're going in and rehabbing them, you know, fresh floors, new appliances. I've always loved the fact that mobile home communities, mobile home builders created the PEC system, you know what I mean? The plumbing system that is now being used in traditional build outs a lot of times. Oh yeah, yeah, yeah. That whole plastic stuff under the sink there, that was started by mobile homes and we're seeing that now in newer built homes all over the world because they realize it's a lot more flexible product versus especially in colder environments where the PVC will crack, that will stretch in a lot of cases. So you're going out, finding these homes, fix them up and then offering owner financing to folks out there looking for homes. That is that correct? Beside, besides you selling your own stuff or is the selling of the homes strictly the ones that you're finding in the parks are held?

Yeah, exactly. So we operate as the largest independent licensed manufactured home dealer in Arizona. Buying and flipping, we have some listings, you know, we operate as a regular dealer and that brings unique deal flow that helps with the relationship with the communities and things of that nature. But yeah, it's based as a fix and flip strategy. You know, we're buying deferred maintenance manufactured housing and, and you know, replacing pecs and you know, checking electrical. We're selling it to Jenny Mae on terms, you know, and properly underwriting the note. And we do that on a grand scale and say like 50 different parks here in the local market of Arizona, Mesa, Tempe, Glendale, Phoenix, Apache Junction, we have about 25 homes in inventory right now that are immediately available and some in rehab. So that's kind of the base, you know, of what, what do you see.

Is kind of the base remodel on a, on a house. Now obviously we know it's all different in a lot of cases, but what do you see on a home that was built in 78, late 70s, early 80s as the biggest upgrade needed A lot of cases, roofing, exterior, you know, plumbing, what, what do you see and how does that, that cost compare kind of to towards a traditional single family home? In a lot of cases, yeah.

So a lot of it's you know, windows, plumbing, electrical, you know, classic stuff just to be in adjacence with residential real estate at the end of the day the benefit is a lot of times you're not needing to pull permits or add additional square footage, you know, or you know, get permits for electrical and stuff like that. So kind of highly unique. It speeds up the process. You're obviously encouraged to, to use licensed and knowledgeable individuals at the end of the day. So you don't have any houses burned down and we're blessed to not ever have had that issue.

I'm knocking on some wood for you there real fast.

You know that those are just common things that we do. We've gone as far as put new siding on homes, you know, new T111 where it looks litter. We almost like remanufacture units sometimes from the roof to the siding, to the windows, to the electrical. You can obviously overpay and overestimate on your rehab for you know, what your exit is at the end of the day. So we're always trying to price that in ultimately because remember we're here for the affordability hedge, right. So we've found once properties kind of start to inch over a hundred, it really needs to be a four bedroom, you know, and 1:25, 1:30 is really kind of the benchmark of our top end price point.

Why is that in your, in your market, specifically to your market out there? Yeah, it'll vary a little bit different other areas but so yeah, that three bedroom, two bath, four bedroom is harder to find though too, right?

Absolutely. You know, definitely few and far between. Their alternative for SFR single family residents, you know, is 450,000 for the same square footage. So you know, just creates the challenge that benchmark, you know, we see homes sell for higher, some newer homes and stuff like that, but really, you know, for the end user's palatability and affordability on the price point it's really like 80 to 125 because that's what either matches or beats market rent. So once they buy that house with lot rent, the home payment, insurance, taxes, if they can match or be market rent, that's really where the win is for the buyer, but also the stability for the note holder, you know, because if they go rent for a 3 2, you know, that's 2200. Here in the valley, in a desirable area, major market, you know, they match or beat that in a 3:2 and they own is where the benchmark is for the interest rate. So average rents here in the valley lot rent in communities is like 800 to a thousand. So you have about a thousand dollar margin monthly for the end user borrower to where they can't go anywhere else for cheaper. Now they own a rehabbed house with electrical and plumbing and new windows and stuff like that. So that's kind of how it's all boiling down to the entry of the acquisition. You know, we buy anywhere from 500 to 80,000 depending on the rehab. Some need more rehab than others. Obviously a 500 purchase is probably going to need, you know, for a lot more.

Right?

Yeah, it's like get this off. But you know, that that's kind of how we look at the model from purchase to rehab, you know, and how that compares to sfr.

Yeah, I know, it makes sense. And then you're kind of sticking that point with lot rent and then Piti, you know, still falling it with that below 50%. 40, 40% of what their monthly, you know, take home pay is roughly give or take.

We normally match like a FHA requirement. And I think it's like, you know, they'll go up to late 50%, something like that, 58%, don't quote me. But you know, that's why we use a third party underwriter, you know, to verify that information. And we're not so much doing that in house. We have some people that don't meet the criteria because the case specific situations, you know, and we'll evaluate that on a case by case basis ultimately to make sure that we're providing a hedge and mitigated risk not only for us but also the capital investor and you know, limiting liability, you know, when we're seller carry financing.

Now the fact that you've owner finance a chunk of these, have you had any defaults on any of the stuff? Yes.

So you do enough business, you're bound to get a default. You know, we've done, we've been extremely blessed because the communities themselves have forced us to kind of increase our requirements. As the institutions now buy these mobile home parks, they increase their requirements of credit criteria, you know, no evictions, no open bankruptcies, verifiable income. And then we go through our secondary underwriting, you know, for debt to income ratios, make sure, you know, they're not on the lam, you know, stuff like that. But the default rate has, has been extremely low over the past eight years. So we've done it a handful of times where we've had to repossess, you know, the buyer, borrower, put their head in the sand and you know, we couldn't communicate with them, didn't we couldn't do a workout for their first payment. You Know, those situations happen, of course. It's like a one and a half, 2% default rate at the top 2%.

Yeah. That's phenomenal. Very phenomenal. Very, very low. Because when somebody's. A lot of times people get into, they're very grateful. They do everything they can to avoid that because they have no place to go really, you know, out there. And then with these loans, if you did have to foreclose or evicted to relatively fast because you're in Arizona there. Incorrect.

Great point. So in comparison of a foreclosure process, you know, here in Arizona it is a trustee deed state. So you know, that could take 90 days and then you got your 60 days of cure. You know, I'm relatively familiar with the SFR foreclosure process. I'm even more, you know, in depth with this, the manufactured housing. Why? Because it's like a repossession. It's considered a repossessed unit because it's personal property and an eviction process. A lot of the times if someone's going behind on their home payment, they're going behind with the park as well. And if that's, you know, in that realm of environment. And it's like a 40 day process, you know, from non payment to, you know, two weeks later they get a notice of non payment. Two weeks after that they get a pay or quit. And then 10 days after that they're having a constable at the house with a writ of restitution. We retitle the property and ultimately I think it's like a week. They have to get their stuff out of the home, they have to schedule it at that point and then we, you know, repaint the house, do a move in, move out, like a landlord and tenant program, you know, and remarket that home for sale and either mitigate loss or earn additional profit, you know, depending on how the deal closed out, how long it took us to repossess the unit, you know, what kind of market we're in right now, pretty hot for affordable housing. But you know, with that mitigation of the 40 day period and non availability for them to keep stewing on losing the house or whatever over six months, you know, they could do a lot of damage over that period of time. Where an alternative, they don't really have all that much time to, to, you know, really stew in the house and stuff like that. Preface here. We're not in the business of taking people's houses back by any means fully aware of this situation, but we have recourse, right? This is an investment. We're making a capital commitment, investing in the terms of the contract. You know, for an individual. If they stop them, if they fail to pay their first payment confidentially, you know, we'll probably throw that on the back of the loan or something of that nature to try and work out the situation. Why? Because we're in it for the, the payment and the performance of the paper at the end of the day. But we have recourse, right? We're not going to let it go by the wayside and lose on a tangible asset. You know, the home's there, we're going to get capital back. It's just what you know to what fashion that is, you know, is speculative to the environment, the market and things of that nature. We've made, we've made more money on repossessions, we've lost some small dollars on you know re exiting but we end up re seller financing and picking it back up on the amortization schedule. You know, which is unique about not just being the lender, we're also the dealer, you know, and have an accredited investment fund. All kind of in the same realm.

Right. Well that's, that's the thing I wanted to bring to for those folks out there listening and you've got some money sitting in an ira. You're looking to put it to work. You know folks, what's kind of your ballpark investment that you're looking for from investors to, to purchase one of your guys notes at, you know, is it 50 grand, is it 100 grand kind of ballpark in there? I mean I think you mentioned, I think you had your deal today was like 90 grand was a note for 98000 this morning I think if I saw correctly.

Right, yeah, yeah. So I went live this morning, tagged you on Facebook. So we did a feature note on there. I'm just going to look at that here real quick. So on average, you know an average purchase price of, of a manufactured homes like 80k we're taking 10 down. So it's about 70,000 on average. You know say 70 to 120 is kind of ballpark of what a note acquisition would look like. Those are 20 year amortization schedules. And just to kind of preface you know on the deal of the day that we have currently here in the mesa market at 98. 9 it sold. The unpaid balance is 93, 9. So they put like 5k down and ultimately got their ability to repay at a,167.67amonth for a 20 year term and for the yield, you know, you can run that on an amortization schedule and on a calculator and figure that out. But that's a great non accredited strategy for an investor to buy a first lien performing asset at a thousand bucks a month for 90k. You know, to try and replicate that in another strategy or in the stock market as an income oriented investment strategy. It's almost non existent. You may be able to find it, but it's really tough. You may have to get a discount on the note or whatever. But that's kind of some averages.

It's about a 15 and a half yield based on 1167amonth without servicing costs figured in there. You know, it's great. Yeah. I mean that's why I love the note business. When you're what they say is in a lot of cases when your risk goes up, your ROI goes down. But when our risk goes down, our ROI goes dramatically up in a lot of cases. That's why it pays to be the bank. You know, we've been buying non performing notes since 2008, you know, and buying stuff at a discount and then rehabbing the borrower, you know, or rehabbing the property, being up, taking the property back and then interning in performing paper or taking the distressed borrowers and getting them back on track again for performing paper. So the yields are definitely possible. That's why I love the note business. Whether you're originating or you're buying them, there's a lot of opportunity out there. Yeah. To beat the heck out of the stock market, you know, and it's a lot more. It's a tangible secure asset that a is this one like this note. Your deal today pays and pay for 20 years. The borrow stops paying, you're going to go through that process to take the property back, evict and then start it all over again. And then the property is going to be worth more with two, three years of appreciation on it, right?

Yeah, it could be. And you know people say mobile homes don't appreciate. Well, I'm here to tell you that that's not the case. Mobile homes have actually appreciated. I was buying and selling homes at 30, 40,000, you know, five years ago, those homes are now 100, 120,000, you know, so mobile homes do appreciate. It's obviously market contingent, you know, at the end of the day. But you know, just that's a great point in itself. And the fact that how notes are so nimble, you know, this is a note investment strategy. It just happens to Become in manufactured housing which is a highly unique, you know, combination. But knowing how to re perform an asset, knowing how to buy a performing and if it goes non performing, how to re perform that, how to buy, you know, non performing and go through all those notes is so nimble. It's, it's amazing, you know, the amount of ways a note can be structured. You could sell a hypothecation for a one year term at 10%. You know, you could sell note partial later on, almost like a cash out refi. You know, you're a note investment educator so I'm sure a lot of your listeners are more attuned to the environment, you know, but not a lot of people even know you can buy a mortgage and what you can do with that, you know, at the end of the day. And I, I'm just blessed to even be here. Blessed to have the education that I do. Blessed to meet contacts at Diversified Mortgage Expo. We were talking about noteworthy note Expo. You know, all the above. It, it's really eye opening now more than ever because of the hardships in single family pricing, interest rates, you know, you see in bloodshed and multifamily syndications. Yeah, we saw a trillion dollars get wiped off the start market and then brought back on the stock market. You know, that could make your hair fall out at the end of the day.

Yeah. So Aldo, I love it and part of the thing that I really like and is I really love folks that embrace the marketing side of their business and you have done a really great job embracing that aspect of it. And honestly, truly it's, it's a rarity in the note space. I think not many people understand how to market their note business. Right. And it's not harder because you have a lot of opportun community. You got deals, you got tapes, you got assets and I love what you're doing. That's when I saw what you were doing with your, the mailbox money. I'm sorry, I'm probably quoting that wrong. Let me pull it up here. Your mobile mailbox money. My apology, that's your media and education side of stuff. I love what you're doing. Can you talk a little bit how the impact of doing that stuff has helped your business grow?

Yeah man. You know, you can't afford to do it, you can't afford not to do it kind of thing. Nobody wants to be on podcasts all the time and posting on social media. You know, it's really kind of a job. But the it pays in spades. I remember we were at Paper Source when it was at the Tuscany in 2022 and the casino that God forgot about. Yeah, it was a great time. But they ended up, you know, didn't end up coming around and doing more conventions. I think they're talking about doing more. Anyway, long story short, I was in the room, you know, young, I think it was three, four years ago, you know, and I was young. I was trying to meet people. Was finding it a challenge because I was young and people didn't so much want to talk to me. How do I touch this whole room, you know, and it's online at the end of the day. So I created mobile mailbox money at the event. I created a Facebook page, you know, started doing videos at the event. And that's really blossomed in that, in that single aspect of at conferences with social media and YouTube presence, with adjacent branding of where I'm at, what conference it is. And, and over the past five years, you know, we've cultivated a podcast. Now we do a mastermind every two weeks, just free, just to keep growing the opportunities. And that's on Zoom at 12:00 Mountain Time on Thursdays. But also, you know, going to these different conferences and bringing cameras and lights, you know, we end up having a booth half the time and trade for credit for service, but you know, getting note people to come by and talk, finally talk to me and understand that I know what I'm talking about, having great conversation and it all look really professional with lights and cameras, action, you know, all the above. So that's really been literally life changing. The amount I get like 50,000 views a month on my Facebook and you know, that number continues to climb. It's not anything crazy. But listen, that's 50,000 people I wasn't talking to before or never ever would have talked to in the very beginning. You know, and even just being here on the Scott Carson no Closers podcast, you know, I take full advantage at any given time of co promotion. You know, we went live this morning and I tagged you. I'm not sure if you saw that. You know, all of that stuff, you know, it's definitely work at the end of the day. But if you're doing notes and you're raising money and you're failing to meet more people or raise more money, this is how it's done nowadays. You know, it's not the yellow pages, it's not having the triple A in front of your business name to be at the top of the book. You know, it's adjacent branding and Letting people get to know like and trust you online and surf the stuff that you have at their leisure. Where before it would have had to be like this. We had to schedule a podcast or schedule a conference call and sometimes that doesn't so much work out. You got conflicting schedules, everybody's busy. But if you're got 590 videos online of walkthrough videos, testimonials, adjacent branding, you know, the proof just starts to stack up.

Well that's the thing too. I mean we've done, we've closed thousands of deals and shared and people love the case studies. We're breaking down tapes of deals and just, just sharing that knowledge is a great thing. I mean and you're so right. There are two kind of thoughts, right? And I had the conversation with somebody who's in been around for 30 years too. He's like, well Scott, I'm from the age that we just don't share. We have to hide everything. Your age group is from share everything. I just don't understand that. I'm like well you can either share it or people are going to go find it from somebody else who is sharing it. You can either adapt and overcome. And that's the thing I always cracked up about some of these older conference stuff like that is like there's that kind of. And we call it in like realtors or the baby blue hairs, you know, the people that are old fashioned, they're used to doing the whole thing. I gotta do it in my HPB10B2 to calculate that, you know, you know, you know I gotta, you know, gotta do it one way. It's not the right way of doing well, it's new, it's the 21st century and either you're going to get on the track or you're going to get run over by the train. As I say, Scotty's given her all she's got captain to bring you the 21st century. And I love it from somebody else who's doing an amazing job out there. And you've got mobile. What's the best website for folks to go out, check your deals, check with the fund and stuff like that for you because you've got a accredited fund 506C that you've put together to help fund the stuff with IRAs and accredited investors too. Right Alden?

Yeah, absolutely. So you know you could buy a note today at mobile mailbox money.com if you're curious about just viewing the homes that are like available and the validity of like what inventory looks like. Stuff like that. You could go to our dealer website, winmobilehomes.com and you or if you find yourself blessed to call yourself an accredited investor. I have a once in a lifetime opportunity for you to earn a 10% return for a one year term in Silvercrest Opportunity Fund performing debt. Okay. That's a bank quality return in a Warren Buffett investment strategy. One year term for 10% net or three year term for 12% net. That's an income oriented investment strategy. If you don't see something that you like on the website or you're looking for more information, you could call us today at 602-888-CASH. And this is the new day and age of business. You know, at the end of the day these podcasts, not, not holding the blue book in your back pocket and not sharing knowledge. You know, I'm here to share. I'm here to provide value and maybe even help you enter into this marketplace. You know, there's a vast amount of opportunity here, not only in Arizona but also nationwide and, and I'm just happy to provide somebody value and even have such a gem filled conversation with someone that's been in manufactured housing far longer than I have, you know, and sees the opportunity for what it is in the the case. Unique combination of notes and manufactured housing. Scott, you've been a pleasure to share with today. A lot of great information bouncing back and forth. So hopefully maybe you can come on my podcast. Would love to trade swap spots if that would be.

I would be honored to be on your podcast for sure. Definitely. It's. I think it's one of the best ways. That's part of the reason we stopped traveling so much, stop going to smaller conferences is because we were getting more traction with our podcasts and YouTube channel, stuff like that as well. So definitely looking forward to that. Definitely looking. We gotta have to meet in person at some point for sure too. Alden. So guys, you heard it there. The best places to reach out to if you want to get rock and roll and you've got some lazy assets sitting in an IRA or if you're crediting, you want to do something more. Check it out. Check out what he's got going on. Some great stuff. Not somebody who's done one or two deals but somebody who's doing hundreds of deals. 100 these mobile home rehabs. Refreshes, who's probably a better way to say refresh rehab and offering people an opportunity. I think if we had more people like Alden out there, we wouldn't have such a hey real estate investors. If you have ever wanted to dive into the sexy side of real estate and become a note investor. And not just somebody that owner finances properties or buys and sells on terms, but somebody who's actually buying debt from lenders, mortgage bankers, hedge funds on distressed real estate on both residential and commercial properties, now is the perfect time. And guess what? We have our upcoming three day workshop here in just a few days on July 25th, 26th and 27th. That's right, that's a Friday, Saturday, Sunday. You can join me live on Zoom on our Note Buying for Dummies workshop. We'll go through the Fs of how to find fund and flip non performing notes at huge discounts without having to use your own money. And we'll show you all the different ways that you can make money being a note investor. Day one's all about how we find these deals from banks, hedge funds and how you can automate the process of connecting with these people and get tapes and listen to you over and over again. Day two is all about raising capital and marketing. We'll show you how to tap into thousands of IRA investors who are looking for deals to fund and how to communicate and how to contact them and get them to fund your deals. And day three is all about the flip the exit strategies putting deals together. We'll mix in due diligence. We'll mix in the marketing side along with the structure side. So much stuff in three days live on Zoom with yours truly, the note guy, Scott Carson. Make sure you get signed up by going to Note buying for dummies.com or click on the three day workshop tab on our Workshop. Get signed up today as we're still running discounts and you too can soon become a no buyer affordable housing crisis in America. So go out, take some action everybody. Alden, it's been great to having you everybody and we'll see you at the top. Bye.

B. Sam.