{"id":46604,"date":"2013-08-04T06:33:09","date_gmt":"2013-08-04T12:33:09","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=46604"},"modified":"2024-06-18T05:09:53","modified_gmt":"2024-06-18T11:09:53","slug":"2013-08-04-flipped-modular-home-no-money-12-minutes","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2013-08-04-flipped-modular-home-no-money-12-minutes","title":{"rendered":"How I Flipped a Modular Home With No Money In 12 Minutes"},"content":{"rendered":"

To make progress, sometimes you just gotta do things that make you uncomfortable.<\/em><\/p>\n

\u201cStep outside your comfort zone\u201d<\/p>\n

\u201cYou can\u2019t steal second with your foot on first\u201d<\/p>\n

\u201cIt\u2019s better to try and fail than to never try at all\u201d<\/p><\/blockquote>\n

We\u2019ve all heard all these expressions.<\/p>\n

But when was the last time you did anything that you were really<\/em> <\/strong>scared of doing \u2013 knowing that when you succeeded, you’d not only make money but would give you a real<\/i> sense of satisfaction?<\/p>\n

Quite honestly, I talk a lot about fear here on BiggerPockets<\/a>. But it\u2019s been a while since I felt really uncomfortable fear<\/em> <\/strong>doing something far outside of my personal comfort zone. That is until about two months ago when I got into the modular home house flipping business.<\/p>\n

Experience or Knowledge: Which Comes First?<\/h2>\n

When you\u2019re fearful, it\u2019s usually due to one of two things: lack of knowledge or lack of experience. If your fear comes from lack of experience, then how do you get the experience?<\/p>\n

To get over the fear, you have to do the thing you fear<\/em> – to get the experience so you no longer have the fear. Follow me on that?<\/p>\n

So you have to go do the thing you fear to no longer fear doing that thing you fear (is it just me or am I starting to sound like Casey Stengel<\/a>?)<\/em><\/p>\n

Regardless – with me and my team, we have an expression: NO EXCUSES.<\/strong><\/em> Don\u2019t make excuses, just get stuff done. Just take action and do it. Don\u2019t whine, don\u2019t complain, get it done.<\/em><\/p>\n

The funny thing is that with this modular house flip, I didn\u2019t even set out to do it \u2013 it just happened that way<\/em>. Right now, I\u2019m very focused on expanding my business and this was a logical step for me to do it \u2013 by learning something new \u2013 and at the same time, working towards my business goals.<\/p>\n

The Modular Flip Deal in 12 Minutes<\/h2>\n

Truth be told, I had always wanted to do a modular home at some point, I just never had the opportunity to do it. As I\u2019ve talked about many times<\/a>, I usually I’m buying distressed properties, fixing them up and then selling them\u2026but not on this one.<\/p>\n

There was a house at the town of Bourne town tax auction I was interested in buying \u2013 a house that was in my comfort zone \u2013 distressed and perfect for a rehab.<\/p>\n

But the bidding on that property quickly got out of hand and out of my price range, so I dropped out of the bidding.<\/p>\n

Next up was a piece of land \u2013 a buildable lot in the village of Sagamore Beach – not too far from my office in Bourne. I had never seen the land before but from the documents I had looked at for a minute or two at the auction, I realized it was a good potential deal in a really good location.<\/p>\n

Minutes before the land came up for auction, I saw my builder Billy and we started chatting \u2013 it was then that we realized that we were both about to bid on the same piece of land. So instead of bidding against each other and driving the price up, I suggested we partner up.<\/p>\n

So on a handshake, we figured it would be a good idea to just go fifty-fifty on the deal.<\/p>\n

In the back of my mind, I knew my best hard money lender <\/a>would fund this 100% \u00a0in a heartbeat. It had all the hallmarks of what he loved: good neighborhood, good builder, and good numbers. I didn\u2019t even bother to call him because I knew he\u2019d fund it no problem.<\/p>\n

A few minutes later, the bidding started. Billy and I ended up getting the lot for $55,000.<\/p>\n

Total time from partnership to acquisition: 12 minutes<\/em><\/strong><\/p>\n

Who Does What In a Partnership?<\/h2>\n

When we decided to buy the land on the day of the auction, we had absolutely nothing in writing \u2013 but I\u2019ve known Billy for ten years and even though he drives me crazy<\/a>, I trust him. Regardless, I would NOT recommend doing this just with anyone.<\/p>\n

So as we were leaving, Billy suggested that to maximize our profits and get the home built as soon as possible, we do it as a modular home. Without thinking twice, I agreed.<\/p>\n

It was then that I became a modular home house flipping guy<\/a>\u2026<\/p>\n

Every partnership has its own unique roles and responsibilities. Because Billy and I knew each other so well, we quickly mapped out who was going to do what to make this thing happen.<\/p>\n

So if you ever do this kind of deal with a contractor, you can divvy up the responsibilities any way you\u2019d like. But for Billy and I, here\u2019s how we decided on responsibilities:<\/p>\n

Me:<\/strong><\/h3>\n