Friday, March 27, 2020

Glenn Stromberg Driving Wheel Estate Profits #13

https://carolinahardmoney.com/glenn-stromberg-driving-wheel-estate-profits-13/

Glenn Stromberg, Principal of Stromberg Investment Group, has over 30 years of experience in the real estate and housing market in Texas, North Carolina, and South Carolina. His hard-won experience and battle-tested systems set Stromberg Investment Group apart. 

Today he joins Wendy Sweet and Bill Fairman. 

His book, Private Lender Secrets, explains how private lenders and real estate investors can work together and create mutually beneficial partnerships. 

 Mobile homes are an underutilized market for real estate investing. 

 Double wide manufactured homes are his focus now.  

He buys 10-15 properties a month. He finds them by asking marketers to pass over their mobile home leads. MLS and HubZoo are also sources of leads. 

They use all Private Money investors to finance deals. 

They are 100% passive.

Once acquired, they rehab the properties. 


They get the house to new condition which pushes maintenance years down the road, and give tenants a place they are proud to live in.  

They are competitors with apartments, except they have a yard and other advantages. Normally there is a line up of people who want to their mobile home on land. 

To learn more about Glenn's company: https://www.stromberginvestmentgroup.... 

 Mobile investing info:
https://mobilevested.com/ 

"Don't try to reinvent the wheel. Find someone who has the success you want, and model them" 

~ Glenn Stromberg
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Bill Fairman (00:04):
Hi everyone, thanks for joining us on our show. Once again,
I'm Bill Fairman with Carolina Capital Management. My sister and partner Wendy
sweet is off on a mission trip. I'm sure we're going to hear all about it when
she gets back. Now before I begin, I want to talk about a good friend and
mentor, JC Underwood. He was the past national president of the National REIA.
He also had our local REIA. He was the director and owner of our local REIA
group here in Charlotte for many, many years. He was a serial entrepreneur. He
never met a distressed business that he didn't want to turn around, but he was
not a maintenance man. So, once he turned it around, he got bored and then he,
he'd sell it to somebody else or even give it away because he always liked that
Challenge. And one of the things that he valued the most was helping others be
the best that they could.
Bill Fairman (01:10):
And he would brag more on other people's success than he
ever did on his own. And he unfortunately passed away at 81 on Thanksgiving
day. The fortunate thing was that he was with family when it happened. And
we're going to miss him. So back to the show again. Thank you so much for
joining us. I've got a great special guest, Glenn Stromberg, good friend of
mine. He and I are in a lot of the same mastermind groups and I always say he's
the smartest real estate investor out there because he works in a space where
there's not a lot of competition and he is just killing it. So Glenn, thank you
so much for joining me. How you doing today?
Glenn Stromberg (02:00):
Well, I'm doing great man. Thanks for having me. I really
appreciate it. Great. You guys, always good to see you and I consider you a
great friend. Really. So,
Bill Fairman (02:08):
so Glenn, let's start off with the, your background and I
know we, this is kind of a running nickname for your space, the wheel estate
space. I love it. Tell me how you got started in that.
Glenn Stromberg (02:25):
No, it's a crazy thing. I, when I look back at it, it was
God brought, it was God, you know, I answered an ad out of the paper and they
said that I could make a hundred grand. This was back in the early eighties and
they said I could make a hundred grand a year selling mobile homes and behold,
I could, you know, and it was back in those days, it was more like a car
dealership. Mobile homes were, you know, like a car dealership and you know,
people would come and get the mobile home, you'd deliver them the land and so
forth. And you know I have been in, in the mobile home manufactured housing
space. Those two terms are synonymous, by the way, for your listeners, you
know, for a long time, and, I had mobile home parks, I've done mobile home
subdivisions. At one time I had 13 mobile home sales centers and then I had a,
I had a Clayton homes franchise, which Warren Buffet bought them.
Glenn Stromberg (03:09):
So technically that made me partners with Warren Buffet.
That's my claim to fame there. And then my current model I've been doing since
2006 which is, which is buying primarily double-wide manufactured homes on
land, they're going to be 1200 to 2200 square feet, use on a half an acre to an
acre. They're real estate. I mean they have it, they have a deed of trust for
mortgage depending on the state. We're actually buying in five States now,
Texas, North Carolina, South Carolina, Georgia and Virginia where we have
expansion plans and a couple other States, we're assuming going to be in
Alabama and Florida, and we also started a coaching mentoring program, teaching
people our model also. And so, so that's kind of an overview of what I've done
and what I'm doing now.
Bill Fairman (03:50):
Excellent. So why do you think mobile homes have such a
negative connotation to them?
Glenn Stromberg (03:55):
You know, it's funny, as you know bill, you and I, we
speak in same events a lot of times and I ask this question every time I put a
picture up. Okay. And it's an old ugly metal sided house that you know, has, I
forgot I've got tires on the roof or not, right? And when I ask how many people
think this is what a mobile home looks like, 80% of the room raises their
hands, right? They have no idea how nice they are these days. Then I'll put up
a picture of the stuff we buy, a 1600,1800 square foot house tape and texture
walls, you know, beautiful yard fence, the, you know, fireplaces, every amenity
you could think of. Matter of fact, I tell this story all the time because it's
true and it really kind of opened my eyes up to really what I had.
Glenn Stromberg (04:37):
My dad was a, he's retired now, but he was a Mason
contractor and a builder in Chicago. He came and looked at 15 of my properties
here in Texas and he goes, and these are built better than most of the track
houses in Chicago said, yeah, no, I told you they're really, and so it's a
misconception. People just don't understand how nice they are. They don't understand
the space. When you say the word mobile home, you think of a mobile home park,
and that's not what we do. That's not what we do at all. There's money in
mobile home parks, don't get me wrong, there's people that make a lot of money
in mobile home parks, but ours is a totally different model.
Bill Fairman (05:10):
Speaking with Glenn Stromberg of Stromberg Investments. Is
that right? Stromberg Investment Group. Yeah. Stromberg Investment group is the
name of the company and then you know, our educational mentoring company is
Mobile Vested is, that's the name of our region.
Bill Fairman (05:24):
Well that's good. You got that. If you're watching on
video, he's got it strategically placed. Right behind it.. But then very
strategic though, and he has been to marketing school as well. The thing about
a manufactured home that really people talk about quality. It's put together,
you know, in an environment, in a controlled environment with their, they're
put together in, but they, they put them in these clamps and everything square
and it's not sitting out in the weather and jigs. That's what I'm talking.
That's what I lost the word. But they're, you know, typically on a stick built
home, you're dropping off wood, it's sitting out there, it's going to get
tested by the weather before it gets a roof over it and gets dried in. You
know, woodworks, you're not always going to have straight pieces and if you
able to manufacture these things indoors with the jigs and I'm talking about,
you're going to have square walls. From what I've found, that the manufacturer
homes to try and overcome some of those negativities, they've actually added,
say better construction, but thicker wood instead of your two by fours or doing
two by sixes and they over-engineered them is what I'm trying to say.
Glenn Stromberg (06:41):
Everything you can think of in a site build house, except
they don't do brick cause you can't take them down the road with brick, right?
I mean, you know, really notice two by six sidewalls, all the upgraded
installation packages, thermal pane windows, tape and texture, bullnose,
granite countertops. You can get all that stuff in a manufactured home. You
can, there's manufactured homes that are selling for $300,000, $400,000 these
days. I mean, they're huge, right? So you know that, that's the beauty of it.
And like you said, in a factory, they've got an army of workers that do the
same thing. It goes down the assembly line and they actually do 10 floors a day
in most cases. That's five houses they built in a day because they're so
efficient and so good at it and like you said, there was no weather, there's
no, you know, you don't want to do all that stuff too. So it's, that's why we
say it's the best kept secret in real estate investing. We really do because
people just don't know about it so
Bill Fairman (07:29):
Well, let's talk about your business specifically. My
understanding is, and correct me if I'm wrong, but you do a lot of turn key,
but you also hold the real estate and how do you find your properties? How do
you manage them? So yeah, just start with acquiring them and then we'll, we'll
move into.
Glenn Stromberg (07:46):
Overall, yes. Give you an overall picture. We are currently
buying 10 to 15 properties a month, you know, how do we find them? The beauty
of our business is, you know, like you and I are in a couple of big, big real
estate mastermind groups and you'll hear guys that are spending 50 a hundred
grand on postcards every month. Right? Well for us it's really pretty good
cause we go to those guys and we say, you know, if you guys your throws throw
away mobile home leads, give them to us, we'll pay you $1,000 for everyone we
convert and guess what? They give them to us because they don't know what to do
with them. They don't want it right. Also It's easier because we buy a lot of
our stuff from MLS still HUD bid list, the auctions. We do bandit signs where
we will, you know, try to, you know, basically we put up signs, we buy mobile
homes on land, you know, fast cash, whatever and from homeowners. But the vast
majority of what we buy is still public information. It's very easy. We don't
have all the brain damage that a lot of single family real estate guys do.
That's the good thing.
Bill Fairman (08:45):
So are you doing anything through the HUD Home stores are
you trying to?
Glenn Stromberg (08:49):
We pick off deals there. Hubzu We pick, you know, the
auction sites we do, you know, we're hitting all of it, right? We hit all of
it. Another thing we do that's been very successful for us is we, we let every
real estate agent know that if they send us a, you know, a manufactured home on
land, it meets our numbers and we'll close fast. And guess what, they love that
because they don't want to list a manufactured home and sell for $30,000 and
then don't make any money, right? So, okay. Both sides of the commission and so
yeah, we try to keep about 30% for ourselves and then we 70% we turnkey to our
investors. We use all private money. We haven't used a bank in 15 years. It's
all private investors and, you know, the reason we do it in that percentage is
because our investors like the turnkey better than the lending model. So we
worked here, I would like to keep more of them. But that's you. You always want
to meet your client's demands, right? So that's what we try to do.
Bill Fairman (09:45):
Again, one of the benefits, if you're an investor that
wants to purchase a turnkey is the, the fact that you've already fixed them up.
You've put a tenant in, you're managing the property to talk about what you're
doing to the properties once you acquire them and make it where they typically
don't have to worry about maintenance for awhile.
Glenn Stromberg (10:09):
What we do is this, okay? We tell our investors up front,
there's two things you've got to be able to do for us to do business with.
You've got to be able to wire money to a title company and you've got to be
able to look at your statement every month the money's in there, okay? And so,
we say that of course tongue in cheek, but they are 100% passive, right? Most
of our investors are dentists, doctors. We say, you guys go work on teeth. Go
work on people, we'll take care of the rest of it for you. So we make it very
passive. Now our business model is when we buy the house, we fix it up like
new. New carpet, new paint, skirting, new air conditioning, new appliances and
we do that for two reasons. Number one is for the tenant, right?
Glenn Stromberg (10:50):
We don't ever want a tenant to have an excuse, not to lots
of lease our house, right? We want them to walk. If they liked the area, they
liked the floor plan, you know, variant, right? There's no excuses there. Plus
whether we're keeping it or we're turnkey to our investor, we're pushing
deferred maintenance out five to seven years, you know, we're, we're getting everything
done up front. You know, if it needs a new roof, we put a new roof. If it needs
a new septic tank, we put a new septic tank if it needs, whatever it needs. We
make sure it's like new condition when we're done with the house. So that
pushes the, that pushes the maintenance down the road.
Bill Fairman (11:25):
Well, not only that, it helps get good tenants in place
too. It makes it a home. People are proud to have, you know, guests come and
stay.
Glenn Stromberg (11:35):
What we found out was this, most landlords don't do that.
They try to get by with the minimum, right? And we'll hear that consistently
from our tenants. Wow! You guys, it's amazing way the way you fix this thing
up. And it's amazing that you do, you say what you do, what you say you're
going to do. And so, you know, we hear that repeatedly. So yeah, they
appreciate that.
Glenn Stromberg (11:54):
And you know, I was told that a long time ago that a
woman, whether she's buying the house or running the house, that's her pride,
her nest or you know, she wants to be proud of when people come over. And so
that's what we want to give. We want to give our tenants, you know, something
they could be really proud of and proud to live there.
Bill Fairman (12:11):
And at the same time, you set expectations for lieutenants
when the rent's due, the consequences of not paying.
Glenn Stromberg (12:21):
I'll touch on that for a second. You know, it's a long
story, but you know, I was by fixing and flipping in 2008 and then when the
music stopped, I was doing three a month out of my house making $30,000 a
piece. Life was pretty good, right? And then when 2008 hit, the banks froze. I
couldn't give a house away and I had 18 properties and I said, you know, I'd
rather take a bullet to the head and not pay my investors. And so I went and
just learned everything I could about property management. I had to lease them
out and it turned out to be the biggest blessing in disguise. And so yeah, we
do things like charging the deductible. The first $100 they got to pay for,
take care of the minor things. So we don't get repetitive calls when we do a
lease with the people, we let them know that on the first the money's due, the
third is acceptable.
Glenn Stromberg (13:06):
The fourth, we don't collect, we evict. And then we let
that sink in because you know like I always like to, I say this to him too. If
you went to work all month and your boss didn't at the end of the month said,
man, sorry I ain't got the money. What do you, what are you okay? Well, you see
their eyes and they go, that's exactly how we feel. So I always want to tell
people I'm a nice guy but I promise you if you're not going to pay and pay on
time, I'll throw you out so fast. Your head will spin. Okay. So that's what we
teach them to do. And we do great checks too. We do, you know, of course credit
checks, criminal background checks, sex offender checks. You know we do, we do all
the checks. We make sure we put the odds in our favor. The fortunate thing is
because we have pretty much the most affordable nice house out there. Well you
know we, we consider ourselves in competition with the, with apartments. But
you know, we got an acre, we got a half an acre, an acre, an apartment does it,
right? We got places to play better school districts usually. And so, you know,
so we usually have multiple people lined up for the same house. Good people to
choose from too. So.
Bill Fairman (14:02):
Well, one of the big things you hear about and, Oh by the
way, I'm speaking to Glenn Stromberg of Stromberg investment group as well as
mobilevested.com which is an education and mentoring program that Glenn has.
You know, you hear a lot about affordability and you know, we're in a market
now where it's hard to buy a home because the prices are too high. Rents
continue to go up and, and you're right, you get a lot of square footage for
the money when you're dealing with a mobile home on land. The benefit, again to
a mobile home on land is that you're typically, you're not gonna have a rental
property in a bad neighborhood because they're typically not in a neighborhood.
Glenn Stromberg (14:47):
Well, some are and some aren't. Now, some are in, you know,
in like in the Carolinas where you are, you'll see some next to brick houses.
You'll see there, there's the zoning is more lax out there and it's better.
It's better for us. But yeah, we don't deal in hoods. We don't deal in any of
that stuff. It's usually, you know, good, good, good places, good school
district. And you know, it's interesting because I went with a group called
think realty. We went to Washington to go talk to Congress about, about the
affordability crisis in America and they know, they know what's going on. And
ironically Ben Carson, he actually came out and said, you know, manufactured
homes aren't for trailer parks anymore. I think they can be the solution for
affordable housing. Because what you look on both coasts now, you know, I, half
million dollars doesn't get you a lot in a lot of places.
Glenn Stromberg (15:32):
Right? And so, you know, I look at it this way and I
believe this from the bottom of my heart that I hate to use this term, but
recession proof, I'll call it recession resistant. Okay. Because I believe
there's two things people are always going to do. They're going to eat, Number
one, they're gonna have a roof over their head and number two, and we have the
most affordable roof. And so that's why I, you know, in 2008 we had more people
lined up for our houses than before, so sure. And rents really don't go down in
a crash, sale prices do, not rents because they can't buy so there's more
people in the rental side and rents. Rents will hold their value pretty well.
At least they did here in Texas back then. So
Bill Fairman (16:11):
well that's what I always teach new investors as well is
that there's two things in any economy that you have to have and that's food
and shelter. And if you're going to be investing in stocks, guess what? Invest
in the household goods just like Warren Buffet does and then invest in homes.
Fordable homes just like Warren Buffet does.
Glenn Stromberg (16:34):
Well he does. And you know, he, I think he made a
statement, he buy 25,000 properties if he could manage him. But instead he went
and bought Clayton Homes. The biggest, the biggest and the best, you know,
mobile home dealership manufacturer there. They do it all and they, he bought
the biggest company in America because he understands the affordability
aspects, he sure does.
Bill Fairman (16:57):
Well from an investor perspective, folks aren't going to
be buying the turnkey properties term you the cost of getting into the game is
much lower by going to a manufacturer home and guess what? Their returns are
going to be so much greater too because the, the cost versus the return on that
is much greater than most of your stick-built existing homes or apartment
complexes for that matter.
Glenn Stromberg (17:30):
The reason I know that is the same mastermind groups you
and I are in, they always, you know, people, they drop their jaw when they see
our numbers, you know, it's just like a third to a half of the sale price and
our rents are not as high as their, but they're very comparable. And so yeah,
we always like to say it's less than half the money for almost double the cash
flow and it works out like that for investors. Why they love our, our product
and our model.
Bill Fairman (17:51):
Yeah. And your tenants again are going to be the, the vast
majority of them are going to be happier with the freedom that having a home on
an acre or a half an acre and not a homeowners association type of rules. When
you're in an apartment complex, there are certain rules you have to follow and
get that you have a lot of people on top of one another and you have to have
rules to play by. But you know, if you have toys like a ATV or camper, you
know, you park that. You can't do that in an apartment complex and you've got
place for the kids to play out around the yard. You don't have to be too
concerned with them every time they walk out the door. It's just a better
environment.
Glenn Stromberg (18:37):
You know, another trend that we're seeing is a lot of
times they prefer our houses than versus a single family house that's on a zero
lot line type of deal. Right. Cause there's no yard, there is no place to play
it. There's no place for their kids. And so we will see a lot of people that we're
looking at those two and they prefer ours because of the land and because they
get more dollar for the square footage too. And in some cases are nicer.
Bill Fairman (18:58):
Yeah. And that's different in the demographics. You look
at the majority of millennials and then even younger, they want to be closer to
town. They don't want to have to do yard maintenance. It's, it's more about
being walkable to Restaurants and work, public transportation, they are fine in
those zero lot lines. But once you get a family, you get some kids and, and
generally, you know, babies are being born by people that are older now.
They're waiting longer to have children. So typically your families, the adults
and the families are going to be in their thirties and early forties when they,
they start having that need for more space and they're thinking, you know more
about and the kids being able to get out and do stuff. But that works out,
works out great for you. You have and while you do have some mobile home
subdivisions, you're still going to be mainly in the bedroom communities around
major cities. Correct?
Glenn Stromberg (20:03):
That's actually right. Like using Dallas Fort worth as an
example, all of our properties are 30 to 45 minutes outside of it. Both
downtowns, right? Kind of drawn a circle around Dallas and Fort worth. So it is
definitely commuting distance. A lot of properties we're buying in Georgia are
absolutely the same thing with Atlanta. We'll find him, you know, say the same
thing around, you know, Charlotte and you know in that area there. And so yeah,
a lot of them are by the major cities and that's one of the things of course we
look at is as the job centers that are available, you know, berries that we're
buying. So
Bill Fairman (20:34):
Sure. So now while, and we always have this saying, you
and I have heard this before, the house doesn't care how much it's worth. It's,
it's all about the cashflow. So even if values go down, rents never do. So it's
based on the cashflow you're getting. That said, you have seen quite a bit of
appreciation in certain areas, haven't you?
Glenn Stromberg (20:59):
Oh, amazing. Amazing appreciation. I'm glad you asked that
question because that's the other question. Best thing people always say to me,
well don't mobile homes depreciate? And I say, yeah, the answer is yes and no.
If you're buying a personal property mobile home that does not have land
attached to it, it's just like a car. It absolutely will depreciate. No ifs,
ands or buts. But case in point properties that we bought in Texas in 2011,
2012, 2013 they have more than doubled. Why? They go up and down with the
market? The single family house business here or a starter home used to be 150
here. Now it's 325 right? So everything relative were we bought up for 60 now
for the 120, 150 right? So yes, we've seen tremendous appreciation with our
properties, but you're right, we buy for cashflow. I know appreciation is going
to be there, but that's just the, that's the cherry on the sundae down the
road. That's the way that I look at it.
Bill Fairman (21:51):
And you know, real estate is local. So you know, each
market is a little bit different. You probably don't have the same type of
appreciation in the Carolinas that you do in Texas.
Glenn Stromberg (22:00):
No, good point.
Bill Fairman (22:02):
Same thing with Virginia and some of your other areas.
Glenn Stromberg (22:05):
Here's what I will say, and this is when you look at
charts, right? And I like to use this phrase, milk, eggs, bread, butter and
real estate all go up over time. Okay, look at any 5, 10, 15, 20 year chart.
You know, you're going to have a couple of blips. 2008 was a blip, right? And
then, but, but it goes up. It goes up. It's, you know, we hear it in our, in
our mastermind groups, that real estate is the greatest inflation hedge. And I
believe that, right? I believe it's the greatest because you know, if we get a
lot of inflation and, and you know, a lot of people think there's a lot of
inflation coming down the road. I'm one of them, the real estate will go up
with it. So that's been a wonderful thing. And rents go up with the too. That's
the other thing that I really like too is same thing in Texas. A lot of the properties
we used to rent for 900 a thousand now we're getting 1300 to 1500 for those
properties. So that's nice too. So
Bill Fairman (22:55):
When everything is said and done, as an investor, you're
looking for passive or close to passive income and all you're worried about is
the cashflow, not really the appreciation. If you get appreciation, that's
great. You're still going to get tax benefits from depreciation. A lot of
people don't realize that you depreciate single family residential properties
as well when someone else's living in it because you're having to having to
consider wear and tear over time. And so the government has decided that
they're going to give you that tax break for that wear and tear. Now that being
said, and I'm getting a little off the reservation here, but when you do sell
those properties, if you are taking depreciation, you have to add that back. If
you sell it at a profit, but they, the government also added this 10 31 exchange
so you don't have to pay that depreciation back. You can actually identify
another property and move that capital gain as it were to the next property and
the next property. And then eventually when you pass away and you give it to
your kids, then they have to pay it.
Glenn Stromberg (24:11):
The other thing is, as you know, is that like 30 to 40% of
our investors use IRA money. So there's no consequence. Then you know, there's,
I'm expecting a Roth. There's no consequence. Right? I mean, you're deferring
it in a traditional, but about 30 to 40% of our investors use their IRA money
to buy our properties. So, you know.
Bill Fairman (24:27):
Excellent. So, once again, I'm Bill Fairman with Carolina
Capital Management, I'm talking with my special guest, Glenn Stromberg of
Stromberg Investment Group along with Mobile Vested. So let's talk about your,
your mentoring program. Glenn, you launched it, what about six months ago?
Glenn Stromberg (24:47):
Not even that long. I think it was actually, it was in
August. August was at the quest event was when we launched. Yeah, that was what
launched it. And yeah, just make a long story short. At first I didn't want to
do it. I'll be honest, I didn't want to do it. Well, people would tell me why
or you know, you've got the best capture your why do you want to teach other
people what you're doing, why? I've always believed in the abundance mentality,
but I really felt led to mentor people. And you know, I, mentoring is something
I've always done with younger people, young business people, and I really felt
lad, you know, I've felt led by God to, you know. Hey, it's my turn to give
back and to help people. And I think we're kind of timing this at the right
time because there was a whole lot of single family guys out there who are
smart, who know what they're doing and for lack of a better term, their cheese
has been moved, right?
Glenn Stromberg (25:37):
They just can't, the margins aren't there. And so we've
been able to help those guys, new people, of course. And so, you know, our goal
is we want to change lives, right? We want to change lives. And we believe
there's plenty out there. You know, there's over 10 million mobile homes in
America. People don't realize that there's a bunch, right? And so there's plenty
of, you know, I'm going to get my 10 to 15 every month. I'm not worried about
that. And so we wanted to teach it and we're, we're teaching people basically
to do exactly what we do to buy the 10 to 15 a month. That's what we teach
people. So,
Bill Fairman (26:09):
Well, you know, you say there's 10 million and they will
continue because, you know, Clayton is still in business.
Glenn Stromberg (26:16):
They're building every day, they're building everyday so
Bill Fairman (26:19):
And Buffet's group is actually financing them on the front
end. And then when, you know, there's situations where people have to move,
they can't sell it or whatever, or someone gets sick, they, you know, things
happen. You can still get them on the cheap and the cycle starts all over
again.
Glenn Stromberg (26:39):
I believe in the future you're going to see more and more
manufactured homes by sheer necessity.
Bill Fairman (26:45):
Right.
Glenn Stromberg (26:46):
Cause a lot of people cannot afford a starter home anymore.
They just can't. And, and it's like a starter, you know, like I said, I've been
to Charlotte many times and I've seen the prices there, right? They are just,
you know, five, six, $700,000 and there's a whole bunch of people can't afford
that. And so I think you're going to see, you know, that's why apartment
complex is going up all across America right now, right everywhere. They're
building those because there's a need for it. There's a need for affordable
housing, so I think you'll see more manufactured homes in the future. That's
what I believe.
Bill Fairman (27:16):
Well, there's actually a couple of reasons for that. The
apartment complexes, one of them is the affordability of a single family home.
The other thing is there's, it's not as much the affordability is the supply.
Absolutely. There's a limited supply of existing homes in that particular price
range and then on top of that you have a whole generation of people that are
saddled with education debt that it's really, and I'll get off my soapbox here
in a moment, it's really more than they should be paying for the careers. They
ended up getting out of it, but they're still saddled with this debt and it's
very hard for them to come up with a down payment necessary to get a home. The
more affordable the home, the easier it is for the down payment and let's face
it, you can get an FHA loan for a mobile home, can you not a double wide mobile
home, you can put 3% down and get it on.
Glenn Stromberg (28:15):
If you're the homeowner, you can get a 3% down standard
FHA loan, same as a single family house. That's where,
Bill Fairman (28:21):
and the efficiencies of building those homes make it so
much more affordable than having a site build houses. The land acquisition
costs to build these houses. You don't have enough margin in a track home where
you have to acquire the land, get the permits, do the infrastructure. There's
just not enough margin in it for those people. That's why there's a shortage of
it. And that's why you have a lot of homes that you'd kind of consider the
luxury market in a lot of areas. And you know, unfortunately the luxury market
areas are flat. Now. There's statistics that came out a few months ago about
homes for sale in certain areas of the country and the vacancy rates of those
homes that are listed for sale. So it's, the home is listed for sale, but there
is no one in it. Yeah, Gary Indiana had the highest percentage, which is not a
surprise because the economy is kind of low there.
Bill Fairman (29:24):
But the biggest surprise was Hilton Head. South Carolina
was had the second highest vacancy rate of listed homes at almost 20%. Yeah.
But you know, their market consists of probably 50% of those homes are second
homes and when people start cutting back on expenses in the luxury market,
first thing they do is start cutting those second homes out. So that economy,
we, we do have a, a really good strong economy, but really the focus is on the
affordability side of things. So if somebody wants to learn a bit more about
your Mobile Vested, how do they do that?
Glenn Stromberg (30:13):
just go to mobilevested.com and request some information
and we'll be happy to get with them and see if we can help them out.
Bill Fairman (30:20):
What does that consist of? You have a several levels or
just one level.
Glenn Stromberg (30:23):
We actually have an online course and then there's two
levels of upper, upper level coaching depending on how much you want. And in
the top level, the top level basically is, is teaching you how to do our
business, right? If you, if you've got a business and you've got multiple
employees, and like my company, we have 10 employees and probably 15 pseudo
employees. So we can teach the new person who wants to buy the one first. We've
got an online course for that. Then there's, there's two higher level programs
for, for people that really want to dive in and dive in deep to it. So
Bill Fairman (30:53):
Excellent. If you're an investor and you want to thinking
about buying a turnkey, how do they get in touch with you for that?
Glenn Stromberg (31:01):
Go to StrombergInvestmentGroup.com and you will, you know,
that's the best way. Or I'll be happy they can call me direct. My, I never mind
people calling me. My cell is 817-966-1258. So if they can, either way, they,
either way they prefer. So
Bill Fairman (31:18):
Excellent. And then on the video portion, we'll have that,
at the bottom of the screen. And then for those of you who are just listening,
we'll have it in the show notes on the, on the podcast as well. Anything else
you would like to add before I give you the rest of your day back?
Glenn Stromberg (31:36):
Well, no, first of all, thank you for having me, Bill. You
know, you and Wendy are two of my two great friends and two of my favorite
people on the planet. And by the way, I want to tell your listeners this. The
reason we got into the Carolinas was because Wendy actually said to me in a
mastermind group, have you ever thought about North and South Carolina? There's
a million mobile homes there. And I went upstairs and I started to do some
research and I think I was on a plane a week or two later and we got, she
helped us get the thing rolling and everything. So I owe a lot to you guys too
and I appreciate that. And you know, for listeners out there, I guess, and I
always say this when I'm mentoring people because I believe this from the
bottom of my heart, whether no matter what you want to do in life, you know,
and to me it's just this simple, find someone who's already there and go figure
out how they did it.
Glenn Stromberg (32:20):
Don't try to reinvent the wheel and go figure out how they
did it. And you will cut years off of your, that's the one thing if I had to do
over, I would've done more of that. You know, I, I always tried to do it myself
and shape, you know, figure it out myself instead of copying someone who's
already done it. And I really believe that, that that's a real success
principle. It's in a lot of books and I think you, that's, we're in mastermind
groups, right? Other people. And so yeah, to me that's, that would be the
biggest game changer for anyone out there. That's what I think so
Bill Fairman (32:46):
Well, I mean you're, you're absolutely correct about this.
People that are successful are always educating themselves. The best strategy
for doing well in any business is learning from other people's mistakes.
Because when you are learning from your mistakes, because you are going to have
some, but you need to minimize those by not stepping in the same stuff somebody
else's already stepped in and if they're going to show you the stuff not to
step in, why would you step in it? Just to try it out.
Glenn Stromberg (33:19):
When I was younger, I got it. We don't have time, but I
got a couple of those stories. Boy, I wish I had a redo on those, a couple of
those. So yeah, for sure. So
Bill Fairman (33:25):
yeah, and it's not just about losing money, it's about
losing time because time is something you can't get back. So definitely. Well,
one of the things that I always try to tell people is find a mentor. There are
plenty of people out there that have the same kind of attitude that we do. And
it's the attitude of abundance, not scarcity. And it's really easy to do the
current work as an apprenticed, right? Yeah. I wished we had a trade school
that we could teach real estate investing in. Because that's an awesome
education. They're on it on its own, but you still have to do a lot of this
stuff on your own in order to be successful at it.
Glenn Stromberg (34:11):
And one last thing, Bill, before I forget, you have a, for
the mobile vested we're actually having a bootcamp in the Dallas Fort worth
area and I believe it's March 12th, it will be on our website, but we'd like to
bring people out there, take them on bus tours, show them the stuff and, and
we, we do like a three day bootcamp that, you know, if anyone's interested,
that would be a great thing for them to attend.
Bill Fairman (34:30):
All right. Well excellent. We'll put a link up for that as
well. All right Glenn, thank you so much. I appreciate you stopping by. We will
see you soon because we have several quarterly meetings that we both attend.
Can't wait to see you. Glenn Stromberg, Stromberg Investment Group and Mobile
Vested. I'm bill Fairman, Carolina Capital Management. You can get in touch
with us through our website, CarolinaHardMoney.com. I'm pretty sure we have
some other videos here or here or maybe down here that you can click on to make
sure you share and like and all that other good social media stuff for us as
well. So thanks again. We'll see you on the next show.
Wendy Sweet (35:26):
Hi. If you really liked this show, what you can do is you
can check out some of our other shows that might or might not pertain to it.
You can check up there, you can check over here, you can check down here, check
it out. Don't be afraid to like us, right? Subscribe. Do that. Do subscribe to
our page and hit like, we'd love to have you do that. Thanks.

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