Mike H.

Lets update this again to show that as an investor its sometimes good to pivot when we see the shiny new things out there. But once you do, I believe its important that you stick with the new business model or models that you've chosen. I'm a firm believer that success in investing is about taking your lumps as you learn the model. Fighting through the adversity that inevitably occurs. And than come up with your own path to success in that model. So again, I started out as a traditional SFH buy and hold investor. I never sold a thing from the time I started til right around covid hitting. I had built up a nice portfolio of just over 80 sfh's in decent areas with good schools but still smaller towns. I quit my full time job in IT back in 2018 or so and found the landacademy group in 2019 or so. I wanted something new to add some revenue stream other than doing the buy and hold stuff and I liked the idea of flipping land since there would be no rehab or villages or renters to deal with. It was slow going at first but now I'd say I'm making between 400k to 600k a year in land flipping. When I was just doing land I was up there in that 600k to 700k a year. But in the midst of doing land deals, I've found a couple of other revenue streams that I liked as well. I'm now doing cabin builds in tennessee as buy and hold and to flip. The land business is what enabled to find this niche and it helps that I can get deals on my lots any time I want. But the numbers are just really solid - both as selling after the construction is complete and holding. I'm building 1,000 to 2,000 sq ft cabins where i'm all in at about 230 to 250 sq ft. I'm paying 30k or so for lots worth double that. And once construction is complete, they're appraising out at about 425/sq ft for the bigger ones and 475/sq ft for the smaller ones. Now, again, i've been into this for two years and its taken a ton of time to find the right builders and get the lots permitted, etc. But now I've got 8 builds going at once there plus one fix and flip. Numbers: Build was 2,000 sq ft. Lot was 25k. Build is coming in at 465k. Finance costs about 40k. Realtor fee 55k. Under contract to sell three months before finishing for 855k minus 30k in credits. So 825k minus 585k = 240k net profit. It wasn't as easy as it sounds but it goes right along with my belief that in any business you have to take your lumps and be willing to struggle learning the ropes. But if you can stick with it and never quit, you will eventually find your way through it and can really get ahead in life. Just find something where the numbers are there and keep at it and you'll get there. And now this year, i've found mobile home deals in florida where the numbers really work nicely as well. These are not in mobile home parks though. The owners own their own land and unit. The numbers are Buy for 70k or 80k, fix up for 40k, sell for 200k to 220k or more. I can also get deals on mh lots for cheap and then put a new unit on the lot for 100k and get 240k to 260k depending on area. My sfh rentals here in illinois are still being sold as I'm trying to get down to 40 total. Should be there by next year. But now I'm no longer equity rich and cash poor. And I can replenish my equity that I'm losing in selling the local rentals by building these cabins. Example of one of the holds I'm doing. 25k for the lot. 2,560 sq ft cabin with a build cost of 560k. Finance cost of 45k or so. All in around 630k. Cabin appraised at 975k. I'm doing two holds right now that are almost done. I'm using the profit from the sale of the first one to pay down the other two. The other is a bit smaller but just about the same equity. Gaining about 700k in equity with the addition of two cabins plus another 200k or so total equity by using my profit to pay down each loan - plus about 15k to 30k in net income per cabin. My goal is to get to 20 cabins in the next five years. Use at least one sale to fund every two I hold so that I gain that 450k or so in equity per cabin. And basically I will have done in cabins in 5 or 6 years what it took me about 15 years to do in houses.