Distinguished real estate investor, owner of The Moorhead Team, and the host of the Austin Real Estate Investing Podcast, Jordan Moorhead, shares his extensive knowledge and personal experiences in the field of real estate investment. Starting his journey with a modest duplex through house hacking, Jordan's strategic decisions and keen insight into market opportunities have seen him grow his investments significantly, including ventures into mobile home parks.
His story is not just about financial gain but also about the lessons learned and the wisdom acquired along the way. Whether you're an aspiring investor or an established player in the market, this episode packs a treasure trove of actionable advice and inspirational stories. Tune in to catch all the insights and expand your real estate investing horizons.
Key takeaways to listen to:
About Jordan Moorhead
Jordan is a Realtor and Investor who specializes in helping home buyers and investors build wealth through Real Estate. He believes that real estate is the easiest and fastest way for anyone to build real wealth and have more freedom in their life. He recommends simple strategies like house hacking, Airbnb, live-in flips and buy and hold rentals.
Connect with Jordan Moorhead:
To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!
To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!
Distinguished real estate investor, owner of The Moorhead Team, and the host of the Austin Real Estate Investing Podcast, Jordan Moorhead, shares his extensive knowledge and personal experiences in the field of real estate investment. Starting his journey with a modest duplex through house hacking, Jordan's strategic decisions and keen insight into market opportunities have seen him grow his investments significantly, including ventures into mobile home parks.
His story is not just about financial gain but also about the lessons learned and the wisdom acquired along the way. Whether you're an aspiring investor or an established player in the market, this episode packs a treasure trove of actionable advice and inspirational stories. Tune in to catch all the insights and expand your real estate investing horizons.
Key takeaways to listen to:
About Jordan Moorhead
Jordan is a Realtor and Investor who specializes in helping home buyers and investors build wealth through Real Estate. He believes that real estate is the easiest and fastest way for anyone to build real wealth and have more freedom in their life. He recommends simple strategies like house hacking, Airbnb, live-in flips and buy and hold rentals.
Connect with Jordan Moorhead:
To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!
To connect with Randal and learn more about passive investing, visit www.ridgelineig.com and follow our social media pages below!
[00:00:00] Jordan Moorhead: So I started with a smaller mom and pop because of the same reason everybody else starts with this or it goes to a smaller shop. I said, Hey, they're only going to take 10 percent and thought, Oh, this is great. I'm only going to have to pay 10%. I just didn't, I didn't have the training and support needed to grow as an agent.
[00:00:17] Jordan Moorhead: The broker was great. I'm not saying anything bad about the broker at all. He just wasn't set up for that. He was an investor and had his broker's license because of that. And he said, Hey, if you want to grow. Go somewhere where you can learn and I did and it went really well.
[00:00:31] Intro: If you're a real estate agent earning 200, 000 a year and you want to grow your passive income, this show is for you. Learn secrets other agents use and hear from experts in our field who will guide you on your journey to investing in assets like apartment communities so you can take your commissions and turn them into cash flow. Here's your host, Randall. Let's dive in.
[00:00:53] Randal McLeaird: Hey, welcome back today. I've got an awesome guest named Jordan Morehead.
[00:00:56] Randal McLeaird: He is the Morehead team group of real estate agents in the [00:01:00] Austin market that work with investors specifically or not specifically, but they have the background experience to do so we talk about his journey starting in real estate, how he started investing, how he bought his first property, transitioned into buying six plexes and then buying 39 houses in one market, and then also buying his most recent mobile home park.
[00:01:18] Randal McLeaird: And then how he's grown his brokerage and what they're focused on, what they're working on now. So you're gonna get a ton of that show. Jordan's an awesome guy. He's got a ton of information. He's up in the Austin market, just North of us in San Antonio. So we had some commonalities there. If you're getting some of that show, please go on rate and review wherever you are.
[00:01:32] Randal McLeaird: Give us a star rating. Plus if you drop a word or two in the comment section that helps us out a ton with the reach of the show, get us awesome guests, just like Jordan. So let's jump into the show. Here
[00:01:40] Jordan Moorhead: we
[00:01:40] Randal McLeaird: go.
[00:01:41] Jordan Moorhead: I typically. If I'm not too busy, spend the end of the week on more of investing focused stuff.
[00:01:48] Jordan Moorhead: So today I was pulling lots of owner's information, trying to build a good list for a caller we have working for us right now.
[00:01:55] Randal McLeaird: Nice. Are you, what are you targeting? Single family, [00:02:00] multifamily. Right now
[00:02:01] Jordan Moorhead: we're targeting mobile home parks in the 30 to 80 lot range, either in Texas, the Midwest.
[00:02:06] Jordan Moorhead: Yeah. Over 60 percent occupied ideally city water and city sewer, but we'll look at septic tanks to we've got a lot of single family over the last few years. I started with small multifamily and did that for a while. I still own 2 duplexes myself here in Austin, but sold off most of that at this point.
[00:02:29] Randal McLeaird: Interesting. Let's dive into how you got started. You started investing first before you got your license. And so tell me the evolution, like what'd you start buying first? And then what drew you to real estate in general for investing purposes?
[00:02:41] Jordan Moorhead: So I guess I'll start off with what drew me to real estate in general, cause that started well before I got into real estate investing.
[00:02:48] Jordan Moorhead: I guess is about as far back as I can remember. So a high school, at least I was interested in real estate investing. It's just the concept made sense to me. It's Hey, I didn't know much, but I knew that [00:03:00] you could buy property and somebody else would live in it and pay for it. And there was other ways to make profit.
[00:03:05] Jordan Moorhead: I didn't understand anything about how you made profit. I didn't understand all the ways that you can make money with real estate investing, but I just fundamentally understood that it made sense. So I started investing when I was 27 by house hacking and real estate. I really started learning about it when I was about 24.
[00:03:22] Jordan Moorhead: And just didn't take action. I wasn't real sure where I wanted to be. I would have been able to a year or two before, but just not understanding where I wanted to be living slowed me down a lot, and I didn't realize at the time that it doesn't really matter where I lived. Because I could have bought and then I could have moved and then I could have bought in other areas, but I didn't understand much about it.
[00:03:43] Jordan Moorhead: So I first started house hacking when I was 27. For years up to that, I've been listening to all the BiggerPockets podcasts, going to meetups, meeting people who are successful in real estate. And multifamily really just made sense to me. You know, the whole. Well, two doors are [00:04:00] better than one. And you know, you're still having a, you have a roof.
[00:04:02] Jordan Moorhead: You have to replace, you might as well have four units under it. All that kind of stuff. Just the concepts made more sense to me with multifamily. And this was in 2016 to 2015, 2016 multifamily, of course, for the past decade or so, it's been really popular. And just as far as the scale goes, it's really popular.
[00:04:20] Jordan Moorhead: So I started with the duplex. Halstead that property. I lived in one unit. I rented out the other bedroom in that unit to a friend of mine who actually was a realtor that sold me the place. We had a deal where he was supposed to do my books. My guy had a small business. I was a personal trainer and I had other trainers that worked for me and admin staff.
[00:04:39] Jordan Moorhead: He was supposed to do my books. He was a good buddy. I didn't really hold him accountable to that. I guess I probably knew it wasn't going to happen when we came up with the arrangement. So I gave him a discount to live in this room. So I was making 450 off his room and then I had a big and quotes back porch that I saw and I said I'm not going to use this for [00:05:00] anything.
[00:05:00] Jordan Moorhead: It looks like a full bed would fit here. So I rented that on an Airbnb between the upper unit, the bedroom that he was renting for 450 in the Airbnb unit, which was renting for somewhere in the 5 to 600 bucks a month range because we were mostly monthly stays. It was a small room. It was mostly like students, people traveling for work.
[00:05:19] Jordan Moorhead: Didn't have a lot of money, that kind of stuff. I made around about 500 bucks a month to live in that property. So I was making 500 bucks a month after I paid the mortgage, all the expenses. It was great. I had really taken saving seriously around this time. I barely had enough money to get in that first house hack.
[00:05:38] Jordan Moorhead: I had to cash out. Most of an IRA to get into that first house hack. And most of an IRA was like 4, 000. I didn't have any money at this time. I had no money, had 3, 000 or so in my bank account. I had five or six in an IRA cashed out for came up with the down payment, which was almost [00:06:00] 7, 000 and got the seller to cover all the closing costs.
[00:06:03] Jordan Moorhead: And then borrowed money from my dad to redo the carpet and the paint. Of our unit before we moved in. Cause it was not livable. There were people living in it, but it was trashed. So I got into it by the hair of my teeth. You know, I did not have any money whatsoever, really took saving seriously and continued to grow my business.
[00:06:23] Jordan Moorhead: And this is really similar theme to what's happening right now. I continue to grow my personal training business at the time. Made a bunch of money, socked it away. Within six months, I was able to buy my first six plex property. I was able to do this because I found a seller in Louisville, Kentucky, where my dad's a realtor still, where he would allow me to do 15 percent down owner financing, which was like 55 grand or something.
[00:06:48] Jordan Moorhead: So I saved a considerable amount of money in 6 months. I was saving like 80 percent of what I made. Again, got in by the skin of my teeth. It was not the best investment, but just continuing to [00:07:00] move my portfolio or grow my portfolio. It was one of the best things I've ever done. I don't know that my portfolio today would look like it does if I had not just continued to grow that quickly.
[00:07:11] Jordan Moorhead: So six months in, I had two properties, eight units, another six months later, because I had all this extra money and was living for free. I went overseas. I went to Italy. I had a great time in Italy. I got a real estate license mostly while I was in Italy. 'cause I was traveling alone. Just had some extra time.
[00:07:31] Jordan Moorhead: I bought a motorcycle more on that later. Like I, in Italy it had all these options. No, not in Italy. Okay. I bought a Ducati. Yeah. So it has something to do with Italy, but yeah, exactly. Bought my first house hack six months in, bought a sixplex. Couple of months later, went to Italy, got a real estate license by September of the following year.
[00:07:50] Jordan Moorhead: So it was about 10 months later, I got a real estate license after closing on that first duplex. And I got my real estate license, not only because I thought that it [00:08:00] would be something that would be fun to do and probably make some money doing it. Obviously it seemed my dad do well in it, but also because I saw that there was kind of a, at the time, and I believe there still is a space in the market.
[00:08:12] Jordan Moorhead: It was not being well served. And specifically, that was newer investors or house hackers is people that are trying to get started. They're very reticent to make these decisions and these moves. And a lot of the agents that were out there that I interviewed before I landed on a buddy that had a part time, a real estate license, part time, they were just really trying to sell.
[00:08:34] Jordan Moorhead: They were really pushing hard. They were, it was in the market had been heating up pretty good at this time, 2016. It just didn't feel good to me. And I was like, man, there's gotta be a better way. I understand this stuff. I'm house hacking. I'm investing in real estate. Why not me? You know? So I got started my first full year in real estate sales.
[00:08:54] Jordan Moorhead: I sold 24 houses. Most of those were duplexes and I was rookie of the year in our brokerage at that [00:09:00] time.
[00:09:00] Randal McLeaird: Yeah, is that Keller Williams? You still with him?
[00:09:03] Jordan Moorhead: Yeah, I actually didn't start with Keller Williams. I started with a smaller mom and pop because of the same reason everybody else starts with this or goes to a smaller shop.
[00:09:12] Jordan Moorhead: I said, Hey, they're only going to take 10 percent and thought, Oh, this is great. I'm only going to pay 10%. I just didn't, I didn't have the training and support needed to grow as an agent. The broker was great. I'm not saying anything bad about the broker at all. He just wasn't set up for that. He was an investor and had his broker's license because of that.
[00:09:31] Jordan Moorhead: And he said, Hey, if you want to grow, go somewhere where you can learn. Yeah, I did. And it went really well. That's funny.
[00:09:38] Randal McLeaird: I like, I've had that conversation. I'm a broker. And so I've had that conversation with a lot of agents when they're like, Oh, I want to learn. I want to do this. And it's look, If you want training on the broker side of the business, go to Keller Williams.
[00:09:48] Randal McLeaird: Like they have such a great training program and they put people through the ringer. And so that's funny. Yeah. Same advice from another guy, very similar situation. So let me ask, where was that first house hack? Was that in Austin?
[00:09:59] Jordan Moorhead: [00:10:00] No, actually in Minneapolis, Minnesota. So I was in Austin until May of 2016.
[00:10:06] Jordan Moorhead: I had been living in Minneapolis for the eight years or so before that. And I had a business. It was technically still operational in Minneapolis. I lived there through most of 2015. So I had filed taxes in Minnesota in 2015 and I was still making some income in 2016. So the choice was stay in Austin. I was self employed.
[00:10:29] Jordan Moorhead: It was going to take me two years or so to get back into the space where I could be a real estate investor. And I was kind of running low on money at the time, too, because I came here knowing nobody in 2016, or go back to Minnesota, essentially flip a switch and start making good income again, because all my clients were still there, kind of.
[00:10:49] Jordan Moorhead: Ready to go and start investing in real estate right away. So it wasn't necessarily what I wanted to do, but it was just a smart option for me at the time. Again, I had [00:11:00] multiple years of tax returns to be able to prove income as a self employed person. I went back and I started shopping for real estate almost right away.
[00:11:09] Jordan Moorhead: Yeah. And was able to get pre approved and everything.
[00:11:11] Randal McLeaird: Yeah. That's awesome. That's a very cool story. You got in, you got the deal. So you made 6, 000 in income that year on top of being paid. Like your mortgage is getting paid, taxes and insurance getting paid. So you made six grand and you had seven or something, or you had, you said you had 3, 000 plus in IRA.
[00:11:30] Randal McLeaird: You doubled your.
[00:11:31] Jordan Moorhead: Yeah, he
[00:11:33] Randal McLeaird: doubled your bank account balance.
[00:11:34] Jordan Moorhead: So
[00:11:34] Randal McLeaird: just off the
[00:11:35] Jordan Moorhead: cashflow, which the appreciation of the property was amazing too. So we can touch more on that if you'd like to.
[00:11:42] Randal McLeaird: Yeah. I mean, it's one of those, the reason I was thinking you were in Austin, my buddy did the exact same thing and you're like, I could have invested, I could have started here and just bought and then moved.
[00:11:50] Randal McLeaird: I mean, that's what he did. He had the foresight. He bought a place in new Orleans when he lived there, he's working and then he moved to Austin. He bought a place on the East side. And like the appreciation alone on that thing when he [00:12:00] bought it, it's insane. But he house hacked that and then he went to New York.
[00:12:02] Randal McLeaird: And now he's doing the same thing up there. So yeah, I don't know the market in Minneapolis, so I don't know what kind of appreciation. Do you still own that?
[00:12:09] Jordan Moorhead: I don't. So I sold that before I left Minneapolis. So I bought it in December of 2016 for 187, 000. Which was pretty cheap for a duplex at the time.
[00:12:22] Jordan Moorhead: It was a bad listing. It was hard to show and it had been sitting for a while. So he got to the point where he really wanted to sell it. I think it was listed at 215, and I actually got it for 187, which was a good deal at the time. Immediately it was worth like 235, after just small fixes, you know, 235, 240.
[00:12:42] Jordan Moorhead: By 2018, it was worth 327, 000. And that was, I lucked out. So I moved in, I remodeled the bottom unit with my own cash. Like I said, I borrowed 3, 000 to do the carpet and paint right away. Over the next year or so, I saved up enough money to [00:13:00] remodel the kitchen and bathroom. The contractor ended up going to prison while we were remodeling.
[00:13:05] Jordan Moorhead: So it took a lot longer than it was supposed to, but. It got done. It got done, and I ended up selling it in May of 2018 when I was kind of getting in the mood to come back to Austin for $327,000. Yeah. I left out park. I woke up one morning to hail hit in the side of the house and I said, this is my lucky day.
[00:13:28] Jordan Moorhead: It had old aluminum siding that was in bad shape.
[00:13:31] Jordan Moorhead and Randal McLeaird: Wow.
[00:13:32] Jordan Moorhead: The entire aluminum siding got replaced. All the soffits and fascia and all that for. A 500 deductible. So I really lucked out on that one.
[00:13:41] Randal McLeaird: Nice. Well, very cool deal. So you had that, you bought some time, essentially, you got to go to travel Italy and do that, get your license at the same time.
[00:13:48] Randal McLeaird: So what was the transition like in, in what are you now? 50, 50 brokerage to investing? Is there even a number that you can put to that? Or is it you're just building out your team and you buy deals as they come up? Or what's, what does [00:14:00] that look like now?
[00:14:00] Jordan Moorhead: Yeah, that's a good question. So somehow or another, I've never lived in a market where I've done a lot of investing in.
[00:14:10] Jordan Moorhead: So when I was in Minneapolis, I bought the one duplex there. I didn't do any other investing in Minneapolis, St. Paul. There's a lot of other reasons, but I knew I wasn't going to stay there. So I just wasn't keen on investing there. I started investing in Louisville, Kentucky, where I'm from. While I was living in Minneapolis, I still invest a lot in Louisville.
[00:14:27] Jordan Moorhead: Once I moved to Austin, I was doing the house hack every year or so. And you know, that takes up a little bit of time, but not a ton. I've always invested other places. I've always used agents or brokers, other places to do it. I've always had property managers and I'm doing that too. So really in all honesty, the time split is heavily favored on the real estate brokerage side.
[00:14:49] Jordan Moorhead: I would say. Even now it's more of an 80,
[00:14:53] Jordan Moorhead and Randal McLeaird: 20
[00:14:54] Jordan Moorhead: and my team really gets the bulk of my attention. I'm not ever doing something investing related and I won't drop [00:15:00] everything to go help the team or help deal with one of the properties we have listed that kind of stuff.
[00:15:04] Jordan Moorhead and Randal McLeaird: Yeah,
[00:15:04] Jordan Moorhead: but I've arranged it in that way that it's, it can work.
[00:15:07] Jordan Moorhead: And now all of the investing I do involves partners. That's helped that a lot. So in Louisville, between 2020, December of 2020. And now I have a business partner in Louisville actually went to high school with we bought something like 3839 houses. We have 34 right now. We've sold a few that we did burrs on.
[00:15:30] Jordan Moorhead: We did the burst strategy with, and then we have a mobile home park, 30 lots and has a house on it. Let me ask you about the brokerage
[00:15:38] Randal McLeaird: then, again, we've got a bunch of agents listening to the show, the whole idea, right, is what kind of strategies are you seeing right now? You're in the Austin market. So one, I'm curious about the market how Austin's faring right now.
[00:15:48] Randal McLeaird: And then two, like what strategies are you using on the brokerage front? That's winning you more business. That is helping your buyers and sellers, stuff like that. So we can touch on those two topics. So one right now, can you kind of give me [00:16:00] a backdrop on the Austin market? Like what's happening with pricing, rents, that sort of thing.
[00:16:04] Jordan Moorhead: Absolutely. And if you read the media, they're months, if not half a year behind. So any media, any article you see, just think that they got this information. It's probably six months old. Somebody sent me an article this morning and it said Austin real estate market decimated all this crap. The headline of course was really clickbait.
[00:16:24] Jordan Moorhead: They didn't understand the information they had interpreted and what they had understood essentially was. The Austin market pricing is in freefall and things are going down. They're not wrong about a lot of what they say, but they're typically very behind, like I said. So from May of 2022 till about the end of 2023, we saw prices fall in Austin.
[00:16:46] Jordan Moorhead: And they fell for the same reason. They've had trouble everywhere else. Interest rates were really high and continued to go higher and demand went down. So Austin is a heavy tech city. A lot of people got laid off. There weren't as many [00:17:00] people moving to Austin, interestingly enough. In the Austin Metro, Hayes County and Williamson County, so Williamson is north, Hayes is south, are growing like crazy.
[00:17:11] Jordan Moorhead: Travis County, where Austin is pretty stagnant. But it's not such a binary 1 and 0 type of deal. So, yes, Austin, the prices fell from May 2022 until the end of 2023. And now, they're even slightly up year over year for January versus last year, or February versus last year. So we're starting to see things trend back in the right direction.
[00:17:34] Jordan Moorhead: The best time you could have bought a house here in Austin, of course, was always yesterday. In this case, it was October, November, December of 2023. That's gone. That's not happening anymore, but you can still get some good deals from sellers. There are still are people that are in a position where they need to sell, and you always have to find the people that need and not want.
[00:17:58] Jordan Moorhead: So there are still some people [00:18:00] that need to sell. We actually work with the biggest flipper in Austin. He's one of our clients. And he does all, almost all of his deals come from his own marketing, you know, so he's out there doing his own marketing. He's getting deals. He does buy off the MLS still. So good deals can be had off the MLS.
[00:18:17] Jordan Moorhead: You just have to move quickly and give the seller what they want. So really we're seeing people are still getting good deals on houses. Prices are down 15 to 20 percent from the peak. I don't see them going back down unless we see rates go up again. You know, if rates get back in the eight, 9 percent range.
[00:18:33] Jordan Moorhead: Yeah, all bets are off really, you know, like who knows what happens in, I think we're going to see rates stay where they are for the next couple of months and towards the end of the year, I think we'll start to see a little bit of relief there. But what we saw is second half of January rates came down into the sixes and people went nuts.
[00:18:54] Jordan Moorhead and Randal McLeaird: Yeah.
[00:18:54] Jordan Moorhead: So we got multiple offers on a bunch of listings at that time. We had a bunch of stuff go under contract. I [00:19:00] had an agent that had about double under contract what he normally has at that time. What you really have to do on the brokerage side is you just have to stay in touch with people right now because they're all waiting to see what everybody else is going to do.
[00:19:13] Jordan Moorhead: And it's just, we're we're kind of a herd animal and I'm not saying that to be derogatory in any way, but people, we feel comfortable when we see other people doing something, you know? So when other people are buying houses, we think, oh, we should go buy houses. And it's just, it's so much buyer sentiment right now.
[00:19:31] Jordan Moorhead: So on the brokerage side, I'm telling my guys, Hey, stay in touch. Let's have events. Let's have more meetups. Let's make sure we're in front of our people all the time. Make sure we're doing amazing sphere care, client care, that kind of stuff. And then when people are ready, as long as you're communicating with them, they're going to jump in.
[00:19:49] Jordan Moorhead: I think there's going to be a time in the next six to 12 months where that pent up demand kind of releases because rates get down into the sixes.
[00:19:58] Randal McLeaird: And I would tend to [00:20:00] agree with you on that. Fed met yesterday. They didn't drop, but they signaled three coming up. So yeah, I would agree with that. And when they did drop, I mean, it was very similar.
[00:20:09] Randal McLeaird: San Antonio, we're not too far away. It was just like, okay, rates are down. Bye, bye, bye. All that pent up demand was there. So people started buying stuff. So, okay. So on the broker side of the business, what does it look like now? You have a team. Are you a broker? Are you an agent with a team? Like, how does that, how are you structured and how many people do you have?
[00:20:25] Randal McLeaird: And what does that look like?
[00:20:26] Jordan Moorhead: So I still do broker a little bit of real estate in Minnesota. Not a lot, maybe 10 to 15 a year. I'm a broker in Minnesota. I am a licensed sales agent in Texas. As you know, brokers license in Texas is no short order. It's 900 hours of education. I have the time that you need to be licensed.
[00:20:44] Jordan Moorhead: I have that under my belt, but I'm not. Continuing at every night to try to get to that 900. It just doesn't matter for me. So in Texas, yes. I'm a real estate agent with the team of agents that work for me. I have myself two admin, and then I have [00:21:00] three other agents that work for me. I don't specify what they do.
[00:21:05] Jordan Moorhead: I don't try to control what they do. They do listings. They do buyers. Of course, they're younger. They're newer. The majority of their deals are buyers.
[00:21:13] Randal McLeaird: Yeah. Awesome. Awesome. Yeah, it doesn't matter. It's funny because when I got my license, it was 2012, I want to say. I was an agent before that, obviously, but they were about to change the rules in Texas for the new, like how you have to have that many hours and all this other things.
[00:21:29] Randal McLeaird: And so I didn't have to do anything. It was like, I already had the education, I already had everything there. And so I just went and literally applied and it was like, boom, okay, you rubber stamped it, got your broker license.
[00:21:37] Jordan Moorhead and Randal McLeaird: Yeah.
[00:21:38] Randal McLeaird: And now it's like, yeah, it's a pain. So I understand why you wouldn't do that, but anyway.
[00:21:42] Randal McLeaird: Okay. So let's talk more on the, that's the broker side of the business. I would imagine that is helping, are you buying anything in Austin now? Are you looking at deals as they come up or is it more like, look, I'm going to buy outside. I'm buying RV parks, you mentioned, so we can talk more about that. But are you looking to buy in Austin specifically?[00:22:00]
[00:22:00] Jordan Moorhead: So yeah, we're buying mobile home parks. Absolutely, we would buy in Austin if the numbers work. There's not a ton of them in Austin and the people that own them are pretty savvy. And they know what they've got a lot of times mobile home parks in Austin, the land is worth more than the park is,
[00:22:16] Jordan Moorhead and Randal McLeaird: you
[00:22:17] Jordan Moorhead: know, so, and they know that I've talked to a couple of people who sold them.
[00:22:20] Jordan Moorhead: So, not against buying an Austin at all. I'm trying to stay very focused anymore. So I went through a few years of. Just looking at deals and not being so specific in what I was looking at. And I would say, Oh, you know, I'll buy whatever is a good deal. And I didn't buy a lot during that time, but then when I got to 2020, so I would buy a duplex every year for house hack or whatever else I bought a couple of six plexes, 2020.
[00:22:48] Jordan Moorhead: The partner and I started buying houses in Louisville, and we identified 3 zip codes. We wanted to buy in. We got really specific on what we would buy 3 bedroom, 1 bath or greater houses on a slab [00:23:00] foundation. And we got really specific on the numbers we would buy in. So, at the time. We would say, hey, the most we can pay is 110 or 120 for these houses.
[00:23:08] Jordan Moorhead: Depending on how big they are. So we bought, like I said, 38 or 39 houses, and I should have that number in that time. We bought one in San Antonio that was a great deal to through wholesaler, but we just got really specific and said, we're only buying this type of house in these types of areas. We bought a ton.
[00:23:26] Jordan Moorhead: And I realized at that time, I'd been investing in real estate for about four years. And I'd never been really focused, but when I'd gotten really focused in any area of my life, I'd had a lot of success. So, I had about a year in 2019 where I didn't buy any real estate and I just focused on selling real estate.
[00:23:43] Jordan Moorhead: And I sold a ton of real estate in 2019. Best year I'd ever had. Made a lot of money in 2020 when I realized that I needed to do that on my investing to, of course, we had a lot of success. So now we're just looking for mobile home parks. We're just looking in the 30 to 80 lot [00:24:00] range. Currently, we're just looking for city water, sewer or septic tanks.
[00:24:04] Jordan Moorhead: And we'd like to be at least 60 percent occupied. And there's a lot around that criteria of why we're looking for those certain things. But my life, it's important that I'm able still to focus a lot on the brokerage business because it's a great business. And the better I do in the brokerage business, the more cash I'll have to invest on the real estate investing side too.
[00:24:26] Jordan Moorhead: So I'm still focusing a lot on that is how can I make my investing lend to my time being free to focus on the brokerage business and not be working 24 7 too. That's also very important to me. I want to have I just got engaged. I want to have some sort of work life balance, especially right now. And the investing is.
[00:24:50] Jordan Moorhead: It's a secondary business in a sense to my brokerage business, but it will make me much more money in the long run.
[00:24:56] Randal McLeaird: Yeah. Well, congrats on the engagement. That's nice to hear. [00:25:00] Thanks. Yeah. I got to get back into this into the transition. So you were buying a bunch of duplexes, house hacking, bought some six plexes, and then when did you transition into the RV parks and why?
[00:25:10] Jordan Moorhead: I got interested in mobile home parks in 2019, and this is another thing I didn't have the focus. So I got interested in mobile home parks in 2019. I went to Frank Rolf's MHP bootcamp actually here in Austin in 2019. I learned all about it, had all the information, joined his mastermind at the time, didn't really do anything with it.
[00:25:31] Jordan Moorhead: It was still kind of all over the place on my investing side and I was still doing things, so it was good. But starting in the beginning of 2023, I had been in and out of the mobile home park space, looking at things. You know, seeing people have success. I'm in abundance of mastermind. A lot of people are in here in Austin, and I joined that group when I moved back to Austin in 2020.
[00:25:55] Jordan Moorhead: I heard a guy speak from the stage and he had talked about how he had grown his net [00:26:00] worth significantly and his passive income significantly with mobile home park investing. And I'm like, man, I know this. I know all about this stuff. I've just really never put my head to it. So I decided at that point that was the winter event of 2023.
[00:26:15] Jordan Moorhead: So it had to have been January. This is all I'm going to focus on. It's mobile home park investing, and that's what I'm going to do. It took until end of November, 2023 until we closed on our first one. My business partner and I in Louisville had a property manager in Louisville for our single family houses.
[00:26:33] Jordan Moorhead: And we, he just kept talking about mobile home parks, this guy. His leasing agent knew people that lived in one and connected her with an owner. So oddly enough, we didn't actually find it. Our property manager found it. Now we're partnered on that mobile home park with them. It's been amazing so far. We took the rents.
[00:26:53] Jordan Moorhead: They were at 250 day one. It was actually in the best school district in Kentucky. It was all [00:27:00] tenant owned homes. So we don't own any of the mobile homes. We own one house. On the lot and we've already that's been the biggest pain point since owning it. It's the house
[00:27:10] Randal McLeaird: Why is that? Just because of maintenance?
[00:27:12] Randal McLeaird: Because you have to take care of
[00:27:12] Jordan Moorhead: houses. Yeah. Just
[00:27:13] Randal McLeaird: wondering if that was what it was. Or something else, yeah.
[00:27:16] Jordan Moorhead: Yeah, no, absolutely. Expense ratios are just so much higher when you own the real estate. Obviously When you own the structure.
[00:27:24] Randal McLeaird: Yeah,
[00:27:24] Jordan Moorhead: when you own the real property. Obviously you can't always make out and not own anything.
[00:27:30] Jordan Moorhead: We lucked out on this first park and we didn't own anything except that one house. So, all the tenants on their homes, their rents were super low. They were in a great area. We raised the rent to 400 right away, which I wasn't really interested in doing. I pushed back on that a little bit, but I was outnumbered and nobody left.
[00:27:48] Jordan Moorhead: So, we didn't lose anybody. The income went from 8800. To 13, 000, the gross income, obviously, all their expenses stayed the same. So [00:28:00] that property is doing great so far. And we're just on the hunt for another we're under contract on 1 in San Antonio, actually. And I'm looking at another park in Texas with some other partners.
[00:28:12] Jordan Moorhead: It sounds like we're close on. And also another one in Ohio with some other partners too. So it's just the beginning for me on that side of things, but I needed something that could scale better. So we were buying all these houses and we made significant gains in net worth and we're starting to make good cashflow off these houses.
[00:28:32] Jordan Moorhead: I figured out we were going to need hundreds of these houses to make the cash flow that we wanted hundreds, you know? Yeah, when you sit down and you
[00:28:40] Randal McLeaird: start looking at that and you talk, like every single individual house with tenants, toilets, all the things that go into that. Yeah, it is it's a different, it's a different beast.
[00:28:50] Randal McLeaird: So I love the RV, sorry, I keep calling RV parks. I love the Mulholland parks because you own the dirt. And they're paying you for the dirt and that it's also very sticky because once they put [00:29:00] their home on that lot, it's fairly challenging for them to move that thing. And so you can increase the rents so that it seems like there would be, like you said, you had a hard time doing that.
[00:29:10] Randal McLeaird: Was it because you felt like you were increasing them more than they should have been or just because, yeah, but people stay. And so like, what's the strategy going forward? Do you say, Hey guys, we're going to raise these 5 percent every year or 10 percent or like, is there any kind of. Communication with them in that sense.
[00:29:26] Jordan Moorhead: Not with the tenants, with the partners. Of course, we're talking about it. I think we're going to do 50 per year until we're at or above market. Not going to get above market, of course, but we don't want to. Raise rent without providing values. We already started to do stuff like repainting or replacing the fences and putting new mailboxes in and patching all the potholes and that kind of stuff.
[00:29:47] Jordan Moorhead: And then just providing a better level of service. The last guy that owned it, he kept the rents cheap, but the service reflected that. And it always does.
[00:29:56] Jordan Moorhead and Randal McLeaird: Yeah.
[00:29:57] Jordan Moorhead: So we're just really trying to provide a much better living experience [00:30:00] for these people. We want to provide value for these people. I love mobile home parks, not just because they're good investments, but because a lot of these people are some of the hardest working nicest, most genuine people you'll ever meet.
[00:30:13] Jordan Moorhead: We were walking doing due diligence on this mobile home park. This guy that lived in the 1 of the last trailers on the last homes. On the left side, gave us a bunch of peppers to take home. It's just such a nice guy. You know, they're hardworking people. He was, he salts for us when there's snow in Kentucky, which is very rare, but we pay him to do the salt for us there.
[00:30:35] Jordan Moorhead: You know, like I've walked lots of mobile home communities with American flags everywhere and nice gardening and it's affordable housing, but I've been in the affordable housing space my entire career. It's affordable housing where people have pride of ownership because they own the homes and they take care of the homes and they're still going to work.
[00:30:53] Jordan Moorhead: You know, they're the essential workers that are out there. So they're going and they're working the fast food jobs or they're working the [00:31:00] Walmart and that kind of stuff. Jobs. That people just won't do anymore. And these people, this is 1 of the ways they can own a home, you know, I'm passionate about it for a lot of other different reasons.
[00:31:11] Jordan Moorhead: Other than just the ability to scale on the cash flow, something people don't tell you about mobile home park investing. It's extremely challenging to find a mobile home park to purchase that makes any sense. Most of the stuff that makes it to the loop nets to the correct C's to the mobile home park store sites.
[00:31:30] Jordan Moorhead: It's garbage, you know, the utilities are garbage. The occupancy is garbage. It's usually something more than just the income numbers. Cause of course, if the market rent is 500, the rent of each lot is 250. Eventually you can get it up to market. Don't do it right away, but eventually you can. So you have to pound the pavement.
[00:31:49] Jordan Moorhead: You have to talk to brokers. You have to send out mailers. You have to cold call owners. The people that are successful in this business. It's just not, it's not an [00:32:00] efficient market at all. And that's another reason I like it because it's really challenging.
[00:32:05] Randal McLeaird: So let's talk about the economics of one of these deals and how you underwrite them.
[00:32:10] Randal McLeaird: I imagine, I mean, you're looking at the gross rent and then taking expenses, you get your NOI number. Are they trading on cap rates? Yeah. So what is some cap rates that you've been looking at in San Antonio? What are you, what do you see trade and what is market?
[00:32:24] Jordan Moorhead: Yeah. So that's a great question.
[00:32:27] Jordan Moorhead: And it's kind of all over the map. So everybody wants to buy at a 10 cap. A lot of newer people will listen to old podcasts or read old material and they want to buy at a 12 cap or whatever. Probably not going to happen. I'm still seeing stuff trading at eight to nine cap range. I want to buy with some sort of spread on the interest rate that we're getting.
[00:32:46] Jordan Moorhead: So if we're getting a seven and a half percent interest rate, I at least want to buy at a nine cap or an eight and a half cap. With the opportunity to raise rents and increase that, it's hard to look at the P& L [00:33:00] or the Trillion 12 on these things, because it's same as any real estate, you kind of have to look at how I get to run this compared to how they run it.
[00:33:09] Jordan Moorhead: And I think I, I learned that early on. I'm not quite sure how I understood that. But when I was looking at rental properties, I wasn't saying, Hey, what is the owner going to do? I'd say, Hey, this is a duplex in this area. Here is the regular expenses for this type of property. Here's what I'm going to budget for contingencies.
[00:33:28] Jordan Moorhead: And here's how I'm going to run it. And that's how I always analyze properties. I sort of do the same thing here. You have to pay a little bit more attention because there's, they say, oh, the tenants pay all the utilities. And you see a 7, 000 water bill for the year, you're like, Hey, I know you said that, but where did the 7, 000 water bill come from?
[00:33:47] Jordan Moorhead: And there's always a story. I find more that mobile home park owners, it's not that they don't, or that they're trying to pull the wool over your eyes. A lot of them just don't know this guy. We bought this mobile home park [00:34:00] from Kentucky. He had no profit and loss. He had no rent roll.
[00:34:04] Randal McLeaird: That's kind of what I would expect for some of these things, just having talked to some of the owners.
[00:34:09] Randal McLeaird: He didn't
[00:34:09] Jordan Moorhead: know, he didn't know anything. He had the bills. He said, well, here's the bills I pay every month. So we had to build on our own pro forma when we were doing due diligence. You know, we had to go through, find all his utilities, find all his expenses and estimate what our expenses were going to be.
[00:34:25] Jordan Moorhead: Luckily, we had a good banker who we'd worked with a lot in Louisville. And he just worked with us on it.
[00:34:31] Randal McLeaird: Yeah. I would think on those types of deals, you're going to build that out on your own. You're going to kind of see what you're looking at. And you mentioned something like having a spread between the cap rate and the actual loan.
[00:34:41] Randal McLeaird: So I literally was talking to somebody earlier. He's a debt broker and we're talking about negative leverage on multifamily and how that's just the going concern right now.
[00:34:53] Randal McLeaird: So are you seeing, you mentioned the listed properties, the ones that are listed are typically those that there's [00:35:00] something wrong, it's not something wrong with them necessarily, but they're either overpriced or something's going on with them and I've underwritten some of them and they are still, I would be in a negative leverage situation.
[00:35:10] Randal McLeaird: So you're getting most of your stuff or all the ones that you're looking at now, either under contract and when you bought were pretty much off market. Correct. Correct.
[00:35:16] Jordan Moorhead: No, the one we're under contract on in San Antonio actually is from the MLS, believe it or not. We are under contract more than 30 percent below list price.
[00:35:26] Jordan Moorhead: And it's, we're still probably going to need to get a discount to close on this thing, learning more about it. So,
[00:35:32] Randal McLeaird: because of the debt or what's causing something like that?
[00:35:35] Jordan Moorhead: Well, you know, again, I don't think that anybody misrepresented anything, but I think people misunderstood the current situation.
[00:35:42] Jordan Moorhead: A lot of these owners are older, they've kind of done things handshake by the seat of their pants. They think they know the numbers. They don't really know the numbers. What we were told wasn't quite what actually is. And I'm not blaming anybody for that, but I don't blame the broker for that because he was telling [00:36:00] us what he was told or what was explained to him and maybe wasn't understood.
[00:36:05] Jordan Moorhead: So, the deals we're looking at right now are coming from wholesalers, brokers, or, you know, some of these public listing sites, but. It's very rare. We're making offers anywhere close to what's listed when there's a listed property. So I saw one I was looking at a property. I know the city because some of my family lives there in Illinois I was looking at the city.
[00:36:29] Jordan Moorhead: It's probably worth 600. She's listed at 1. 1 It's just not uncommon to see listed properties that way And i've not heard of many people and i've not had the experience that you're able to get properties for 500 50 percent less than the list price. You know, the seller has come to a conclusion. The property is worth 1.
[00:36:48] Jordan Moorhead: 1 million.
[00:36:48] Randal McLeaird: Sure. They anchored themselves there or the agent did or something.
[00:36:53] Jordan Moorhead: And with mobile home parks to the interesting thing is when you're getting income from the homes and not just renting the lots, which a [00:37:00] lot of these people are, because you get more from renting the homes and just a lot.
[00:37:04] Jordan Moorhead: The bankers won't count that most of the time, because the homes aren't real property. Their personal property, they have a seal, you know, they can be sold, but they're not appreciating real property. So the owner might say, I'm making 20, 000 a month. I don't know what you're talking about. You're like, that's great, but if you applied your lot rent.
[00:37:27] Jordan Moorhead: That you're charging the 3 people that are not renters. You really only make it 000 a month. And that's the income we have to use to underwrite the property. And it's hard to come to that understanding, you know, cause then they'd be selling it actually at an eight cap is like I said, 600, 000 or nine cap might be 600, 000, but they think a nine cap with their income is 1.
[00:37:54] Jordan Moorhead: 1 million because they're using their gross income number where you have to use the gross [00:38:00] income number of the lot rent. Multiplied by the number of occupied and paying lots.
[00:38:05] Randal McLeaird: Is there not a strategy because there's value, they are earning that income. So maybe the bank doesn't see it that way. And so for your underwriting for the bank to get the loan, your loan proceeds are going to be lower, right.
[00:38:16] Randal McLeaird: Based on their numbers, but at the same time that cashflow is coming in, right. It's coming in the door. So I get, you could in negotiations with the seller probably get a discount, but is there value in somehow taking those. owned mobile homes and then either owner financing them or doing something with them on the back end to where you don't have ownership of those any longer and it turns it into cash flow.
[00:38:37] Randal McLeaird: Do you guys do anything like that or have you considered that?
[00:38:40] Jordan Moorhead: We haven't had to, like I said, ours is the one we own. They're all tenant owned homes currently. Yeah. So there's lots of ways to do that. Like you said, there is owner financing. There's a big question mark there of whether or not that's a viable option.
[00:38:53] Jordan Moorhead: Because if you do more than a couple owner finance deals a year, I think you run into some sort of state back [00:39:00] compliance.
[00:39:00] Randal McLeaird: On a personal property, you're almost doing like a bill of sale on a personal loan on most basis for those things.
[00:39:05] Jordan Moorhead: Yeah, you kind of end up being a lender past a certain point, and that's not something I have experience with.
[00:39:10] Jordan Moorhead: It's just essentially hearsay, but there are lenders and there are credit facilities. Out there that will do these loans, you know, so you can get cashed out right away. So if you sell, let's say you sold a home for 10, 000 dollars to somebody and they went and got alone with. Pap is one of them performance enhancement partners.
[00:39:27] Jordan Moorhead: I think is what they're called. Clayton homes has one to 21st mortgage. Yeah. That they partner with like those people will finance these homes and pay you out right away. So that's a great way to make money off these homes. Obviously, you don't want to pay too much for them because you're not really sure what they're worth until you can sell them.
[00:39:48] Randal McLeaird: Yeah.
[00:39:50] Jordan Moorhead: Yeah, there are some value in the homes. It's just not something. I don't want to own the homes because I got into mobile home parks for 1 reason. And 1 of the reasons was that I [00:40:00] wanted to not own as much real property. Because we're always dealing with problems, you know, we had a section 8 inspection today where we've got a section 8 tenant Louisville section 8 inspector came through and said, all these smoke detectors are bad.
[00:40:13] Jordan Moorhead: You're using the wrong batteries. Are you kidding me? So now we have to pay somebody to go in and replace the smoke detectors. Probably a hundred bucks, you know, not much at all, but that's something. Luckily I have a good partner that he has to deal with and he has to have somebody go do that. When you don't own the home, you don't have to deal with any of that crap.
[00:40:30] Jordan Moorhead: And that's a minor one. We had a 15, 000 sewer line repair last year. I had to repair the super line all through the house. You know, some of it that can't be avoided. Obviously you still own the utilities with mobile home parks, even if you own none of the homes. Obviously you still own the roads, there's stuff there, but the expense ratio is much lower because there's not somebody that moves in.
[00:40:53] Jordan Moorhead: It's not paying anything to be in your house, trashes it because they don't care, and then you have to go through and do a [00:41:00] 10, 000 rehab because they just destroyed your nice new house.
[00:41:03] Randal McLeaird: Yeah. A couple of questions before we cut this, but. So one expense ratio you just mentioned, I'm kind of curious what that is.
[00:41:09] Randal McLeaird: Cover the expense ratio real fast on these. What's typical. So give me the high level numbers. So like in multifamily right now, a lot of numbers are, they have been 55%, right? It's like, that's kind of what you're going to get to taxes. Insurance are going up, everything, you know, that's kind of what you're hitting with the vacancy rates and everything.
[00:41:24] Randal McLeaird: So what is it on mobile home parks? Typically, if I were to say, Hey, I need a quick rule of thumb. If I'm looking at a park and want to evaluate it in a back of the napkin type thing,
[00:41:33] Jordan Moorhead: so it depends a lot. If you own the homes or not. And there's a huge differentiator between if you own the homes or not.
[00:41:39] Jordan Moorhead: Let's assume you don't. Yeah, you don't own the homes. I would say 30 to 35%. Again, it depends who pays the utilities. It depends how those utilities are billed to the residents. So if they're direct build from a local municipality, like, let's say, San Antonio runs a sewer lines in your mobile home park, and [00:42:00] they build the residence directly.
[00:42:01] Jordan Moorhead: That's amazing. It's also hard to find, but let's say you are billing the residents and you're able to recapture most of it. You might use a 30 to 35 percent expense ratio. We're lucky. We have figured a 30 percent expense ratio. We have a city water, city sewer, and we have septic tanks on some of the mobile homes where we are.
[00:42:25] Jordan Moorhead: We were able to recapture almost all of the water expense. So we do direct bill them. The city does not build them. So we build them, but we charge, we use a rubs type system. We're able to capture almost everything.
[00:42:41] Randal McLeaird: You 80, 90, 95 percent
[00:42:44] Jordan Moorhead: of the water. I'd say 90 percent of the water, 95 percent of the water.
[00:42:48] Jordan Moorhead: Yeah. Yeah, because we just charge when like a rubs fashion and we charge per house in a rubs fashion. So somebody might pay 15. Some house might pay 45. Yeah, it just depends how many people are in it.
[00:42:59] Jordan Moorhead and Randal McLeaird: [00:43:00] Yeah.
[00:43:00] Jordan Moorhead: Yeah, I would say 30 to 40 percent is kind of the industry standard. But that's a lot gonna depend on how many homes do you own?
[00:43:08] Jordan Moorhead: How old are the homes? What's the source of utilities and who bills it?
[00:43:12] Randal McLeaird: Yeah, that makes sense. Okay, I figured out what I was going to ask you. It was about the homes. How do you get them? So you own this mobile home park. You have three vacant lots or you have expanded and somehow you, you now have access to three pads.
[00:43:26] Randal McLeaird: What's the process of somebody getting in there? Like, how are you marketing those people? Are you putting a home in there? And then you're like, what's the easiest way? Very curious about that.
[00:43:34] Jordan Moorhead: Again, I've not had to do it, but I've learned a lot about it because I know we're going to have to do it.
[00:43:39] Jordan Moorhead and Randal McLeaird: Yeah.
[00:43:39] Jordan Moorhead: So I would say, depending on where you are here in Texas, Texas is a very friendly state to mobile home parks.
[00:43:47] Jordan Moorhead: There's a great mobile home association, mobile home park association. They're very active, they're nice guys, they speak at a lot of events, you know, they're advocating on our behalf. With the Texas [00:44:00] government here, it's pretty easy. They don't require. Wild setups in a lot of state, they will require a certain size concrete pad.
[00:44:09] Jordan Moorhead: They will require, let's say, 200 amp electrical hookups. That require a certain type of sewer hookup. Texas is again, fairly easy. Obviously, it needs to be a sewer hookup needs to be an electrical hookup. Needs to in Texas, like a gravel pad is will go. I'm. To my best understanding, it's. It could just be gravel, cheap.
[00:44:30] Jordan Moorhead: So you can go out and buy a used or new mobile home, bring it in and sell it to somebody. Obviously the setup cost, you have to get it moved in, you have to get it set up, you have to get it secured, you know, maybe five to 10, 000. The mobile homes, it's as cheap as you can get it. New ones are somewhere in the 40 to 80, 000 range right now, depends what it is.
[00:44:53] Jordan Moorhead: Most of the double wides get up into the low hundreds. But they're nice. We went to a mobile home show in [00:45:00] Louisville. I went to Louisville for this and to check on our park. And some of the double wides you would love to have it out on some land, you know Maybe have a cabin out somewhere by the lake or by the by whatever, you know just out in the country Really nice homes.
[00:45:15] Jordan Moorhead: You would never be able to tell it's a mobile home. But yeah, I mean there what's it we'll call it tend 90, 000 to put a single wide home into a park and you're selling that to somebody that needs an affordable place to live and wants a nice home. Oh
[00:45:31] Randal McLeaird: man. Okay. So that's the best strategy. Like I guess what I was driving at, there's not a lot of owners who already own a home that are moving them around.
[00:45:40] Randal McLeaird: Like picking up and moving it and they're like, I don't like this park anymore. I'm going to move to another one.
[00:45:44] Jordan Moorhead: It's expensive.
[00:45:45] Randal McLeaird: I know it's, it's like,
[00:45:47] Jordan Moorhead: there are a strategy. There are people that do that. You can sometimes pay to move other people's homes into your park, but it's not cheap. I mean, it, let's say eight to 10, 000 to move a [00:46:00] home, depending on how far, if you live in a mobile home, you're probably not rolling in it.
[00:46:05] Jordan Moorhead: I'm trying to not to put any stereotypes on anybody, but. It's just not cheap to move these homes, you know, so no, I've not heard of a lot of that. I don't see a lot of that. You talk to owners that say, oh, I've got a waiting list. There's all these RVs looking to come in. There's all these mobile homes looking to come in when you ask them to produce it.
[00:46:24] Jordan Moorhead: If you call that waiting list. 95 percent of them probably wouldn't be interested anymore. But there are credit facilities that will help finance this stuff. I have a buddy that started a fund here in Austin to help facilitate putting homes in lots. So just call it 10, 000 to get a home installed and set up.
[00:46:45] Jordan Moorhead: He has his fund that wins the money for that. And then he has one of these bigger, like Clayton Homes, Century 21 mortgage, bring the home in. He has a certain amount of time to sell the home. And then when he sells the home, he [00:47:00] pays back his fund. He pays back. Century takes over the mortgage or 21st mortgage takes over the mortgage for the tenant and it's done.
[00:47:09] Jordan Moorhead: So,
[00:47:09] Randal McLeaird: yeah, uh, I need to maybe talk to him about that. It's a very similar strategy is what we're doing on a fund. We launched a crowdfund to buy single family owner, finance them in all ideas to keep them in the fund, but there's probably takeout. I imagine there's some takeout.
[00:47:24] Jordan Moorhead: I have an awesome podcast episode.
[00:47:26] Jordan Moorhead: I have the Austin real estate investing podcast. If you look up Samuel Madrid, he did a ton of those in San Antonio. Yeah. He's crushing it with that. I heard that and I said, I messed up, man. I should have been doing what you were doing.
[00:47:38] Randal McLeaird: Him and God, there were two of those guys. When I first started investing, it was 2009 or something in San Antonio.
[00:47:44] Randal McLeaird: And Mitch Stevens, I don't know if you know him, but he's another guy, him and Sam are like good buddies or used to be, and they were just going around buying everything or financing everything. I think he's, the last numbers I heard, he was in the hundreds of thousands of dollars in cashflow on a, yeah, like over 500
[00:47:59] Jordan Moorhead: [00:48:00] homes.
[00:48:00] Jordan Moorhead: Yeah. It's nuts. Yeah. I mean, that's the thing, man, you pay attention to people long enough. You realize there's a lot of people out there on social media just doing everything And then you realize there's a lot of these guys that just keep themselves and do the same thing over and over And are extremely successful by doing it And that's what I realized is i'm gonna run a team that sells a lot of houses And i'm gonna focus on buying real estate Whatever I'm focusing on at that time, it's mobile home parks right now.
[00:48:30] Jordan Moorhead: I don't think that's going to change anytime soon, but if an opportunity popped up where we could buy a lot of houses again, and they made a lot of sense, that's a great way to build equity. And we will redeploy that equity later at some point in time into better cashflow.
[00:48:43] Randal McLeaird: Yeah, that's awesome. Well, Hey Jordan, man, it's been awesome catching up.
[00:48:46] Randal McLeaird: We are a short drive away. We should probably catch up sometime. I don't know if you get into any kind of sports or anything. Playing pickleball these days. Sound like your personal trainer. I don't know. What do you do for kicks?
[00:48:55] Jordan Moorhead: No, I'm training for a sprint triathlon right now. I go to the gym about every [00:49:00] day.
[00:49:00] Jordan Moorhead: A lot of times it's outdoor stuff, you know, so I'll run or we'll hike on the weekends, that kind of stuff around Austin here, anything active that I can do, I enjoy being active. I enjoy working out, being outside. I started working as personal trainer when I was in college, dropped out of college to do that, did that for.
[00:49:17] Jordan Moorhead: A couple of years and I would go to the gym two or three, well, probably three times a week when I was a trainer. I haven't trained anybody since 2017 and now I go seven times a week. It's it's interesting, you know, you get interested in something and you think, oh, I should work in this because I like this.
[00:49:35] Jordan Moorhead: I don't think that's always the case. I'm glad I did that. It was great to build work ethic and build business understanding. It's I just really love being active and I do a lot more of it now.
[00:49:45] Randal McLeaird: Yeah, for sure, man. Yeah I play a lot of pickleball and I think about, there's some guys like launching pickleball businesses and actually turning some real estate into pickleball.
[00:49:54] Randal McLeaird: And an actual buddy of mine told me to come down and look at his warehouse. He's like, can we put pickleball here? And the same thing crossed my [00:50:00] mind. I'm like, is this thing that I enjoy going to turn into a job? You know, then I lose the enjoyment for the thing. So, But hey, again, good catching up. I appreciate you sharing your information.
[00:50:07] Randal McLeaird: I'm going to put your contact information in the show notes. If you're looking for real estate in the Austin market and Jordan can help you out, definitely reach out to him and his team. I'm sure they can help you in various needs. If you're interested in mobile home park investing as well, I'm sure he's going to have a fund set up pretty soon.
[00:50:22] Randal McLeaird: You can invest in, I don't know how you guys are doing your deals or not, but yeah, just keep him in mind. So. We didn't touch on how you guys are actually buying those deals, but maybe we can talk about that another time as well, man. Absolutely.
[00:50:34] Jordan Moorhead: Yeah, absolutely. We would love to talk to anybody right now.
[00:50:37] Jordan Moorhead: It's just us buying them partners buying them, but you know, that can only go so far. So I'm sure we'll have opportunities here in the future.
[00:50:45] Randal McLeaird: Yeah.
[00:50:46] Jordan Moorhead: Hey man, thanks again.
[00:50:47] Outro: Did you know that 80 percent of the agents we speak with got into real estate in order to gain passive income so they could obtain financial freedom and become work optional? If you want to stay up to date, the best way is to make sure you're subscribed. So if you haven't done that, go [00:51:00] ahead and do it now. We'll catch you on the next episode.