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Welcome to the Ask Good Questions podcast, broadcasting live every Wednesday,
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6 p.m. Eastern Time on W4CY Radio at W4CY. com. This
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week and every week, we will reach for a higher
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purpose in money and life, as well as a focus
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on health and wellness. Now, let's join your host, Benita
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Bell Anderson, as together we start with Asking Good Questions.
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Welcome to the Ask Good Questions podcast. I am your host,
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Benita Bell Anderson. And today we have a very practical
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topic that really applies to everyone. Everyone is going to
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be thinking about this at some point in some way.
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And so we are going to talk about land home packages.
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And then as soon as we kind of go through that,
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we're going to be talking about whether or not it's
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something that you want to consider for downsizing as you
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go through getting ready to do another retirement-type lifestyle from work.
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So anyway, with that, I would like to invite Chris
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Gavra to the podcast stage. Chris, did I say your
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last name right?
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It's Gavri, but I hear all kinds of things.
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Gavri, yeah.
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It doesn't bother me.
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So welcome, Chris.
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Thank you for having me.
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Let me tell you, Chris is actually in Charlotte, South Carolina.
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Let me tell you a little bit about him. He's
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not like super old anyway, but he's a very impressive
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young man that had an unusual start to his real
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estate journey. He had a pressure washing business when he
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was 20 years old. And he was washing houses for
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a guy who became his mentor in real estate. So
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he got his license, his real estate license, two years later.
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And he decided the retail of real estate, you know,
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really didn't end up being for him. Tried wholesaling. And
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he began to slowly buy rental properties. So here he is.
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I think you told me you're 28 now.
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That's correct, yes.
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To me, he's just a baby, but he's on his way,
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and he's formed a partnership with his current partner, Robert,
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and they began options besides doing flipping houses, which is
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something that I did way back in the day. They
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found land home packages. But we're going to be that
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is what we are going to be talking about today.
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They began buying land, putting brand new mobile homes on it.
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And we're going to talk about what a mobile home is, too,
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because you may be thinking, oh, one of those crappy things.
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And then they were selling the product on the market
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and they fell in love with this concept. And so
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they continue to do 50 or so land home packages
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per year. And they also have a coaching program that
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teaches other how to effectively do this model. So we're
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going to cover both sides, the whole thing with doing
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the model or being the recipient of something like this
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or doing this on your own. So welcome, Chris. So
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happy to have you here.
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Absolutely. I really appreciate you having me on.
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So anything you want to add to that little intro?
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That was quite the intro. I've never had one, uh,
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that good before. I don't think there's much I can
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add to that.
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Well, let's go back a long time ago to when
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you were 20 years old and you started that pressure
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washing business. How in the world did that turn into
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a real estate career?
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Yeah.
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So I was washing houses for people and, uh, I
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had like this, this coach at the time. I don't
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know if you'd call him a life coach or what
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I was trying to figure my life out. And, uh,
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he took me to one of these chamber of commerce
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meetings and there's this guy there that was a realtor,
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but also invested in real estate. And my coach's name
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was Tim. Tim was like, Hey, you really need to
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come meet. This guy's name was Jim. Uh, you need
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to come meet Jim. He's a realtor in the area.
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He flips houses. He's probably someone that you could wash
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houses for him. So I met Jim, we kind of
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hit it off. And, uh, Started washing houses for Jim
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that either were listings of his or houses that he
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had flipped and was about to list. And one day,
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I don't know how many houses I'd washed for him
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at this point, maybe 10.
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And one day, he sat me down in his office.
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He said, man, what's your goal? You're a young guy.
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What are you trying to do with your life?
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And at the time, like every entrepreneur, my first goal
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was I want to make $ 100, 000 a year. And he said, man,
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that's a lot of houses to wash. You're going to
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be a tired boy. And he was like, you should
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think about getting into real estate. And so he actually
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nudged me to go get my real estate license. And
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while I was in the process of doing that, you know,
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I'd ride around with him and look at his flips
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and he'd show me the numbers on it and just
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kind of planted the seed more than anything.
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What was it about the retail side being that little intro?
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It was like the retail of real estate really wasn't
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for you. What was it that didn't quite float your boat?
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Yeah, I think it was because a lot of people,
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you're showing them a house, see if they want to
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buy it, and you go through 30 houses with them.
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They're like, oh, I don't really like any of these.
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And then maybe I'll just continue to rent for three years.
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So I found that I was wasting a lot of
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my time just going around with people that either weren't
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really that serious about buying a house. And on top
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of that, to get the client, I mean, everyone and
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their mom knows a realtor. There's so many of them.
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And so it's really hard to separate yourself. And you
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kind of have to sit there and basically sell yourself
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to them. Where on the investment side, it's not so
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much about that. It's, hey, you've got a property you
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want to sell, and I'm willing to pay what you
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want for it. So do you want to do a
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deal or not? It's just a different conversation, and I
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prefer this conversation more.
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Yeah, kind of. Realtors are almost like a commodity. I mean,
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if this one didn't work out, you could go find
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another one.
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Yeah, it's like buses. Another one comes along every 15 minutes.
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Right. So then wholesaling, what does that mean? I mean, I,
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I was like, what is wholesaling real estate really mean? Yeah.
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So essentially what it is, let's say you have a
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property you want to sell and you want a hundred
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thousand dollars for it. And I say, okay, but you know,
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I'll give you a hundred grand for it. We sign
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a contract. And then let's say we have one over here,
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who's an investor and he would be willing to buy
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that house for $ 110, 000. So I say, okay, Juan, I've
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got this property under contract for $ 100, 000. I'll sell you
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the contract for $ 110, 000.
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So I make the $ 10, 000 difference.
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I never bought the property. I never closed on it.
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I'm basically selling Juan the right to buy the property.
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That makes sense.
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Awesome.
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So that really, you know, it's almost like I think
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you were searching for like some purpose. or finding something
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that was going to really resonate with you. And neither
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one of those really did that.
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Absolutely.
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And then you start, I mean, I don't know very
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many people that had 150 rental units by age 25.
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I mean, that's just like, how did that, what did
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that growth actually look like from day to day?
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Well, I've got a bald spot up here that I
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can show you that's the proof of that. But really
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what it was is just every day I was looking
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for the next deal. And that's the key of when
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I was wholesaling properties. I need to find more Benitas
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to go get their property under contract and then go
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find more ones to sell them to. And so when
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I was doing that, a lot of it was cold calling.
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So I would pick up the phone and call someone
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and say, hey, I saw your property. I wonder if
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you'd be interested in possibly selling it. And, you know,
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in that process, I would pick out the ones I
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wanted to buy or sell the ones I didn't to
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the wands of the world or buy them and flip them.
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So it was really just a constant conveyor belt of
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looking for the next deal and then figuring out what
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I wanted to do with it.
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It was, it's, I, you know, again, it was very transactional.
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Absolutely. Yes.
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Yeah, absolutely. So, so then you meet Robert and, And
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you form a partnership with him. So what led you
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into that? Was it you that discovered land home packages
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or was it Robert that introduced that to you?
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Kind of a joint effort.
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So basically I had this mobile home park under contract
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that I was trying to wholesale to Robert. And I
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was marketing it up by like $ 70, 000. And he was like,
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you know, I don't want to pay that much for it.
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But If you waive.
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The $ 70, 000 fee, I'll buy the park, I'll put up
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the money, and you'll just be my partner in the deal.
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I said, okay, I'll do that. So we bought this
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mobile home park together, or rather Robert bought it and
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I was a part of it. And we had some
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empty lots in this mobile home park that we needed
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to fill up. And at this time, we had started
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flipping houses together and such too. So we were kind
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of doing a little bit more than just that mobile
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home park together.
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But anyways.
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We had some empty lots, and he had what was
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called a mobile home dealer's license. And so basically what
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that is is it allows you to go directly to
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the manufacturer, like Clayton, for example, and get these brand-new
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houses at wholesale prices, very cheap prices.
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Well, let's stop right there because when we first talked,
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and it was you know my first thinking is oh
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trailers they're just stupid so tell me about mobile homes
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today and what and how how you know they're not
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such a bad product anymore Yeah.
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Everyone, when they think of a mobile home, they think
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of the 1970s one that smells like 20 packs of
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cigarettes are smoked in there every day and there's two
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holes in every wall.
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And it's not like that.
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I mean, the houses today, I mean, if you're standing
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inside of one of them, you don't even know you're
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in a mobile home. I mean, the quality of them
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is nice. They feel solid. Some of them are drywall
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with stainless steel appliances and range hoods. And it really
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does feel like a nice house and you don't think
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you're inside of a mobile home. And that's what we
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love about it. And quite frankly, what I love the
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most about this space is your reaction that you just had.
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Most people don't like it. It has a negative stigma
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to it. And so a lot of people don't want
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to get into this space, which means there's a lot
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of opportunity in it.
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Right, exactly. So what makes this model more predictable than flipping?
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Yeah.
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So when we were flipping houses, we were doing maybe
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30 or 40 of those per year. And the problem
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with it was every house that you get into, as
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you know, because you've done it, it's a completely different project.
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You open up a wall and you're like, oh crap,
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I didn't know I had to rewire the whole house
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or all the sub floors rotted out or termites ate up.
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You never knew what you were walking into. And so
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it was really hard to scale that because every project
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was just drastically different.
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Where with this model, it's the same thing every single time.
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We're using the same exact house, And the process of
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prepping the land and getting it ready is the same
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thing pretty much every single time.
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So the predictability. So you knew really. So what you
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were doing was you were creating something that you would
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kind of be able to put some numbers on, put
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some expectations on that you knew were likely to be fulfilled.
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That's right.
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So, I mean, basically all the costs in this are fixed.
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I mean, what it costs for a house is the
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same every single time. What it costs for a septic
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tank is pretty much the same every single time. The
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real variation is just in the land itself. How much
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is it going to cost to clear and grade it?
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And then what utilities are available? Is it public water,
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public sewer, all that? But all of that's very easy
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to find out on the front end, where with the houses,
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that was very hard to find out on the front end,