Startup Costs for Newbie?

How much does advertising typically cost per month to find workable deals? I know there a seller financing deals but realistically how much cash do you have to have to do a typical type deal? What if you do not have great credit how does work with these types of deals since I assume most sellers will not do 100%?

Thanks

Jon

PS: I am considering getting training here but I want to know that it is realistic for me.

I think your question will be problematic for most to answer as I’m not sure there is a “Typical” deal.

You may wish to quantify your ambitions a little.
How large of a park are you looking for?
What price range are you looking at?
Where are you looking to make your purchase (Large city? Rural community?)

Are you planning to do a proper due diligence before purchase?

If you are just looking for how much you need to get a seller’s attention it has been my experience that most want 20% down or more. I know Frank and Dave have had deals with no money down, but I’ve yet to see any such opportunity for myself.

I would recommend at least buying the course binder and the due diligence manual. I was unsure about the purchase when I made it as even that investment seemed significant to me, but I found those resources to be quite complete and, I think, invaluable once I do get my own park.

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Great points.

I’m not sure what would be considered a small deal for a first time MHP investor. Do people generally do a 20-30 pad range?

For the location possibly rural. Price range unknown. If that was to workout then much larger properties.

If you are determined to overcome the obstacles you will face, order the course and listen to the audio a few times. Ask questions and start looking and evaluation deals.

This is realestate. Anything is possible but you will likely need access to 25-50k available to take down even a smallish 15 pad park.

Ken

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Thank you it was the funding I was wondering about

How much are you spending in advertising to get deal flow monthly?

Putting together a good database will cost you in the neighborhood of $500-$1,500 depending on if you hire a VA. This will get you about 500 good leads that are properly skip traced and include accurate mailing addresses and phone numbers (to include cells).

From there, 500 letters will cost around $400-$600 depending on your mailer (post cards are cheaper but they have very low response rates). Currently, we handwrite our envelopes but print our letter. We like invitation style envelopes because they usually get opened. You’ll hit that list 3-4 times within a 2-3 month period of time.

If you do that and spend ~$3,000, you will almost certainly find a deal worth buying.

Here’s how the ROI works on that, we spent ~$20,000 on marketing last year and bought 6 parks. The conservative equity in those parks at the moment is roughly $3,000,000. So, it could be said that our marketing returned $150 for every dollar spent. For this reason, we’re hoping to exceed $50,000 in marketing this year.

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Aside from the costs initially it is going to be very difficult to move forward with investing if you do not have superb credit. Money makes money but the reality is that any investor must prove first that they are competent enough to manage money to it’s maximum potential.
Poor or bad credit is a indication to business that a individual does not have the discipline to succeed in investing.

It is essential that a investor have access to “other peoples money” to move forward. To do that requires a great deal of trust on the part of banks and investors. This means you must bring proof to the table that you have what it takes to succeed.
Your first priority must be to clear all your personal bad debt and raise your credit score to it’s maximum. Without that you will be seriously lacking in credibility.

Poor credit dos not make success impossible it does however make it 100 X more difficult in a field that has a very high failure rate to begin with.

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