Flips, Challenges, and Triumphs

After five years in the industry, Jacob paused at the end of 2021 to address personal challenges, undergoing a transformative journey. Despite the break, he has an impressive track record, having closed 250 deals, with over 150 successful flips. Jacob shares his inspiring journey of overcoming personal hurdles, celebrating two and a half years of sobriety. 

Transcript

Mike: 0:00

Welcome to the Real Estate Game Changers show. I'm your host, Mike McKay, based in the Jacksonville, Florida market. And each and every week we do this show with people who are changing the game of real estate all over the country. And this is a live show. So if you have any questions, please put them in the comments for our guests to answer. Um, also, if anyone is in the Jacksonville area and you're working in sales, and you're thinking about getting into real estate, Uh, we're looking for some new salespeople for our team. So if you want to get into real estate and you're good at sales, send me a DM on Instagram. Uh, this week on the show, we've got Jacob Klein. Jacob, welcome to the show.

Jacob: 0:37

Hey, thanks for having me, man. Um, definitely excited to have, uh, another good conversation with you.

Mike: 0:44

Cool, man. Well, for the people who, who don't know you, um, can you tell us about how you got into the real estate business and how that's led you to where you are today?

Jacob: 0:55

Sure. That's probably about everybody in the world. Um, I'm pretty, pretty low key. Um, but maybe some people here in the local market, but, um, yeah, I, I got into real estate business, um, about five years ago and, um, really before that, what I was doing was, um, I was in the So e cigarettes, um, and that type of thing, we were manufacturing kind of a niche handmade product, um, and did, I mean, did really well in that, that business for like the market share that we could get, you know, it was just really small market, um, for the product. And, um, you know, how I even heard about real estate investing was I was listening to Grant Cardone, like sales training on YouTube. And, um, really got into kind of like listening to his like sales training calls on YouTube and stuff like that. And, uh, you know, the suggested videos on YouTube and, and stuff, um, relating to real estate. I started getting into that. I think I saw some like Max Maxwell stuff, um, you know, like the typical stuff from 2019, 2020. Um, and. I think, uh, what I did was just start cold calling, um, courthouse records and, um, you know, got a deal pretty quickly, like in the first couple of months, I found a place and made a 25, 000 fee. On, um, on, you know, the first deal that I ever locked up and I probably sold it for, you know, less than what I should have. Um, I worked, I kept it looking back now. It was like a crazy steal. Um, but yeah, I mean, on that first deal, I, you know, I remember just like, like now it seems so stupid, but I would literally go drive by that property every day while I had it under contract. And, you know, just for no, no other reason than like, you know, like just being obsessed with it, I'm like, man, I, like, I just, I just want to go drive by it, you know, like I wasn't even buying it and just crazy. And then I, yeah, I did that with a couple other properties, just being a nut. And, um, yeah, that was the first deal. And then after that kind of did more of the same, just cold calling. And I'd done a lot of cold calling, you know, to get my vape product into stores and distributors and stuff like that. So I was like, I was pretty decent on the phone. Um, and you know, probably sounded like an idiot. Um, and I mean, I would bug the crap out of people like double, triple call people that, you know, The property that I really wanted to lock up. And, um, yeah, met, met some friends by doing that also to like here in the local market, which is interesting.

Mike: 3:59

Yeah, and then so you were, you got into it just wholesaling at the beginning or.

Jacob: 4:05

Yeah. Yeah. A hundred percent wholesaling. I mean, um, pretty much, I mean, I, I was like scared to buy anything, uh, I think. And, you know, really looked closely at buying stuff and then would just wholesale it, you know, and kind of like the analysis paralysis, like looking back, if I knew what I knew, no, now, like I would have bought everything I locked up. Um, and probably flipped it, but yeah, definitely just wholesale to everything in the beginning. And I think, you know, the 1st deal that I technically took down was with a partner. Um, you probably heard about that deal of like a 20 house package deal with that I did with Kyle. Um, yeah, so, um, local guy in our market, um, Kyle Paskowitz, who I've looked up to quite a bit, um, he partnered with me on a, on a package of, of 20 houses and. We, you know, worked on getting the tenants out when the leases came up and, you know, renovated and sold them. And, um, yeah, that like really inspired me to want to flip. Um, I saw how like seamless their team was by, you know, them having everything in house. I think, you know, they had all their, everybody that worked on their stuff was in house employees. And, um, you know, I was just really inspired from like seeing how well that worked for them. Um, so yeah

Mike: 5:40

Gotcha. So that was the point when you decided that you wanted to build out the flipping side of the business.

Jacob: 5:47

Yeah, I knew that I knew at that point that that was like the goal, you know for sure like At least to, you know, be able to take down properties and renovate them. So whatever that would be, you know, hold them for rentals too. Um, I was a lot hotter on rentals in the beginning than I am now. You know, after you've been in it for a couple of years, like that couple hundred dollars a month in cashflow is just too attractive for the headaches that come with it. Um, but yeah, um, I actually remember, like, asking at a local networking event, like a Q and A, I asked Kyle, like, kind of in front of a bunch of people, like, there's probably 100 people in the room. And I asked him, I was like, you know, what do you suggest for anybody who's trying to build an in house construction team? Um, and like, pretty much everybody in the room laughed. And at that point, like, I felt so embarrassed, you know, I felt like, you know, everybody's like, you know, that's, that's crazy. You know, what are you even thinking about doing? Um, and his response to that was, you know, basically like gear up or something like that, you know, like basically saying it's, it's really hard to do. And, um, you know, that definitely gave me some motivation to do it. Um, and I mean, that's where, where I am today. That's the way I'm able to flip, you know, what to do. So,

Mike: 7:16

Did you immediately like start building everything in house or were, did you do some projects where you were subbing stuff out or did you just like swing for it right, right away?

Jacob: 7:27

no, it was, it was actually right away that I had like from the beginning, like I've had a, you know, from people that I met from cold calling, actually, like I met a couple of friends from cold calling that were investors. And, you know, we ended up just meeting up and getting coffee. Cause they were like, man, this kid's like on it, you know? And like, they gave me some pointers. And then eventually one of those guys had one of his like handyman people that was looking for work. And I took him on, um, and like had this one, like 60 year old guy, like do an entire renovation for me at one time. And like, yeah, like the first like three flips that I did was like literally one person doing the whole job. Um, you know, and I had no idea how much I was spending. I mean, just doing it. And, um, yeah, I mean, obviously that's the key to anything is just like jump in and do it, you know? I mean, looking back, that's obviously stupid, like what I did, but. I mean, that's like, that's how I got into it. So even if I lost money on those first three, it's, it's worth it all day long. You know, so,

Mike: 8:47

I think you said you had like 20 something construction guys on your team.

Jacob: 8:52

um, well, I mean, if you count kind of everybody that we use, you know, that's, that's it. Um, I would say probably closer to like 15 that are like working every day, you know, you know, consistently just doing different stuff for us, you know, it's not like everybody's W 2, um, but. You know, it's like pretty much we have them, um, as, as our guys. And, you know, when they don't have something to do from the last job, we send them the next one. Um, so a

Mike: 9:28

that came up along the way with building? The operation to that size.

Jacob: 9:35

lot, I mean, like, I would say looking back now, just like the amount of time that I've spent, like, like working on that, me, myself, like my time, um, as opposed to like building out the acquisition side. I mean, Yeah, I mean, it's just clear cut that like, you know, somebody like you and me, our best use of our time is, is like analyzing deals, approving offers and that, that side of things. And like, um, you know, not saying it's wasted time to build the in house construction because it made things to where now it's just plug and play and it's really easy. You know, to just put a flip in the machine. And like, I mean, lately I haven't had to go to any projects. I mean, they're just done, you know? Um, so yeah. Um, in terms of like actual struggles with that, I mean, I've had people like steal a lot from me, um, by, you know, either having a company credit card or having access to like charge on the Home Depot account. You know, um, or having tools that I bought for them. Um, you know, obviously people having drug issues, you know, um, and just not being reliable, obviously people doing terrible quality work and having to redo it, you know, that's, you know, that's a part of a part of the game, but, um, yeah, I mean, I've had to learn. Just about everything, you know,

Mike: 11:16

Yeah.

Jacob: 11:17

from mistakes or stuff coming up on inspection that I thought we did it the right way. And it, I mean, yeah, like the inspection list items have like been, they're annoying, right. But like, it helps so much to know next time that like, we can't, we can't leave this unknown.

Mike: 11:39

Yeah. What, like, you know, what are some things that you put in place? Like, you know, obviously there's, there can be issues that people have access to like company cards or home Depot. Like how do you handle that now to make sure that. You know, materials are actually going to the site.

Jacob: 11:57

Um, I mean, I guess doing audits, I mean, and like, for the most part, I keep a track of like our books every day. So like we have somebody since like, there's so much coming in and going out since we're not, it's not like we're just sending 20 K deposit to a contractor. You know, when 20 K, when it's done, it's like, we're having like tens of thousands of dollars, like sometimes a day going out. Um, so keeping that, like keeping the books like really clean, where I'm able to see like every day, what happened, you know, the previous day. So, and like, does it make sense that our, you know, All in went from this amount to this amount this week. Um, so I'm sure there's things that could happen and you know, you just can't, like, once you get to a certain, a certain point, like you just can't be focused on like the details so much.

Mike: 13:08

Yeah,

Jacob: 13:10

It's kind of scary to think about, but yeah.

Mike: 13:15

Do you have the, do the, do the guys on your team source all the materials, or do you have someone who just their entire job is to do that? Or how does that all

Jacob: 13:22

No, no, like, well, like, I pretty much like have vetted and trust the people who are like running crews now. Um, and, you know, they will charge on accounts and pick up material. So every day they're going to depot or Lowe's like a couple of times. Um, and yeah, they're sourcing the material. And basically they know what the scope is day one. And they'll ask me like a couple of questions about what do we do with this one off thing or this thing? And then, you know, we just, they just roll with it and, you know, update pictures along the way. Yeah.

Mike: 14:07

If you were going to do it, like again, building a construction team from the beginning, what would you change?

Jacob: 14:15

Oh, buddy. Um, I would say,

Mike: 14:19

Just the top two. We don't have 10 hours, but

Jacob: 14:21

no, yeah, exactly. I mean, really, really, I would say like, you know, Probably finding somebody who has their, their own crew and just, you know, working with them and like somebody who has the experience themselves. And then, you know, understand that like, okay, yes, I'm, I'm paying a little bit more, you know, here in the beginning, but this person has the potential to build more crews and then, you know, they are the project manager and whatever, you know, they're making some extra money, but at the same time, they're the project manager. So, you know, I'd find somebody with one or two crews and, and, um, help them build out more. Um, so

Mike: 15:09

Would. Would you keep them as a vendor? Would you bring that person, like, you know, working for your company directly? Or

Jacob: 15:17

I mean, ideally you would have them in house, you know, to give them like the stability and, and at the same time, you know, show them that like we appreciate them and everything. Um, I, I prefer to, you know, basically have anybody in house because you know, the odds of, of anything bad happening is just lower because, you know, I think any, any issues with the contractor is basically like, okay, screw you. I'll go get some other work, you know, um, which as of late, I mean, I can tell that a lot of these guys are hurting, you know, for work. Um, it's, it's definitely interesting. as opposed to, you know, a year or two ago where, I mean, you just couldn't get anybody to do anything.

Mike: 16:07

Yeah. How did you find people during that time? Cause it was tough.

Jacob: 16:13

Um, I mean, most of the time it's from like somebody that I know, you know, yeah. I mean, we hired some from like online job posts and stuff like that, but not great luck from that. Um, it's been more like. Hey, my buddy's been looking, you know, and then we just bring them on for a couple of days, see how they do. And mainly if their attitude's good, we're, we're good.

Mike: 16:43

Yeah. Gotcha.

Jacob: 16:45

Yeah.

Mike: 16:47

Like what, what else are you kind of looking for when you're hiring people onto your construction team?

Jacob: 16:54

Uh, I mean, you know, obviously you got a truck, um, you got like a truck to do whatever we need to do. Like you pick up material occasionally. Um, You know, somebody that has, it depends on what, what exactly is for, um, but some extensive amount of experience. Um, I mean, really like, I'm not betting people like crazy on the front end. It's more just like, I'll throw them on a job with like one of my more experienced guys and just see how they interact and like, You know, worst case scenario, like they show up and my guys can tell within four hours that it's not going to work and you're gone, you know?

Mike: 17:41

Paying for the day.

Jacob: 17:42

yeah, right. I mean, that's, that's happened so many times, you know, um, I'm just trying it out and then you find somebody that, you know, find somebody that's really good. And I mean, it's, it's worth its weight in gold for sure.

Mike: 18:00

what else would you change? Looking back as you were, as you were building it?

Jacob: 18:05

Hmm. Uh, I mean, I probably do, I'd probably get into new construction,

Mike: 18:19

Hmm.

Jacob: 18:20

you know? Um, that's definitely something that's like, it just makes sense to me. But, I mean, obviously we're flipping, so that's, you know, not where we're at right now. But, I mean, I've done some, like, putting some new mobile homes on land. And, you know, that's done alright. Um, But yeah, I would say getting into new construction, like building a relationship with some kind of GC who can at least like full permits, um, to do that type of thing. Or even partnering with somebody who's just going to handle that whole, that whole side of things.

Mike: 19:01

gotcha. We were talking, um, a little bit offline too, before we, before we came on about like some personal struggles too, that you had kind of had along your journey. Do you want to share a little bit about those?

Jacob: 19:13

Yeah, yeah, for sure, man. So, um, kind of going back to like, Yeah. When I started in, in real estate, you know, mentioned that I was in the e cig business before and, you know, kind of rewinding back behind that. So just kind of to give a rough timeline, when I started in real estate, I was about 20, 21, 22. Um, and you know, I started in the e cig stuff when I was probably 18, 19. Um, Rewind even further than that, you know, I, um, grew up playing golf and was pretty good, ended up getting a scholarship at UNF and, um, you know, kind of through my teenage years and stuff, um, experimented with like drugs and alcohol and, uh, kind of in the beginning there, I, I realized that there was something a little different, um, with. How much I like it, you know, as opposed to the people that I was like hanging around, you know, like maybe it would have kind of cut it off and I wouldn't, you know. Um, and basically that just continued from, you know, just starting drinking, like smoking a little weed, you know, and then to like pills and, you know, building a depend dependence on it, you know, to where like, I would be in bad shape if I didn't have it. Um, and all of this was kind of at the same time as like, you know, 16, 17 years old. And I, you know, at this same time was like playing really good golf and, you know, committed to UNF on scholarship and. Kind of after that, um, after I got that scholarship, I like, you know, thought, okay, it's time to celebrate. And that just kind of never ended, you know, um, like that's, I just can't stop when I start. So, um, some really dark, dark places there of, uh, where, where it got to, you know, like my using and everything. And, um, once I went up to UNF, like. It was like the first time being alone and stuff, um, like living in the dorms and, you know, I was just, just going crazy with it, you know, just completely out of control. And, um, next thing I knew I was, you know, getting in trouble. Um, you know, basically what had happened was. Um, I was at a kid's house and saw that, you know, obviously it was hanging around, you know, a pretty rough crowd. Um, and I was hanging around with the kid who was, you know, selling weed. And I saw that, you know, he got a delivery from somebody with like a bunch. And, you know, at that point, you know, my, my mind is kind of just like the only, um, track was like, More drugs, basically, um, like wake up in the morning. Okay. Where is it? You know, two hours later, or is it, um, so, you know, at this point I was definitely hanging around people who would do sketchy things and, um, had a conversation with somebody about, you know, this kid just got a bunch of stuff at his house and, um, You know, we basically came up with the plan that he was going to go get it. Um, and what ended up happening was they like kicked in this guy's garage door with guns and like legitimately just robbed them, you know, and um, long story short, I, I, uh, was got in trouble for that as like, you know, accessory to home invasion. Um, that's like, you know, at 19, that's, that's where I was at. Um, and, you know, kind of saw them one by one getting picked off, you know, and like brought in question arrested, you know, and it was like one, one happened, you know, the first week and then two weeks later, two weeks later, and there were five of us and I was the last one. So it was just like, you know, during that time, I was just like really bad off, um, just kind of like. Like blacked out all the time and, you know, really bad place at that, at that point, I had gotten kicked off the golf team at UNF for failing drug tests. And, um, yeah, I mean, that's, that's where I was. And once I finally got in trouble, that's, that's what happened. I ended up going to, to the treatment center, um, like straight from getting released from jail and, you know, um, Clearly that's what I needed at that point. And I mean, it took me months to get right, like mentally. Um, and you know, nine months after I was released on like bail, you know, there's this whole case going on. I ended up getting sentenced to prison time. Um, you know, at 19, I went to, to, uh, Florida state prison and did a year. Um, for this, this whole thing, um, the accessory to, to home invasion and, um, going from, you know, golf star as a kid to this was just like, man, like, this is just, I mean, I think really more than anything, I was just in survival mode, like it didn't really seem like reality. I was just like kind of pushing through, um, definitely was tough. Um, You know, and I did, I did stay sober through every, and you know, all of that, I stayed sober for about two and a half years. Um, and I mean, that's the root of all of this is like the drug and alcohol addiction, you know? Um, and I guess kind of long story short, like I ended up getting out. I, that's when I started that vape business. Um, I did it a little bit before, like while I was on like, bond before, like I went to, got sentenced and stuff. Um, that's when I started the big thing. And, um, yeah, I mean, that's, and then from there kind of like was in that for probably about a year and a half, um, and then got into real estate after that. Um, so, I mean, and I haven't been sober since, since that, you know, there's been continued struggles, um, Since that first time that I got, got in trouble, um, I've had two more extensive sobriety since then. And today I'm two and a half years sober. Um, and you know, probably, probably in the best place I've been, you know? Um, so yeah, that's, that's probably a lot, but that's, that's kind of how I've gotten to, to where I'm at and you know, it's, it's right for sure.

Mike: 26:44

Was there, I mean, I'm sure there were a lot of them, but like, what, what lessons did you kind of personally take away from that that maybe helped you in other areas of your life?

Jacob: 26:55

Yeah, it's, I mean, there's, it's a good question for sure. Um, I think, you know, being involved in like recovery is probably where I've pulled the most, like most positives. Um, cause that's like a huge, a huge portion of my life and going to like recovery support meetings and stuff like that. Um, I've met like some of the most standup people that I've, I've ever met in my life, you know, that. have similar backgrounds to myself, you know, been jail, prison, a bunch. I mean, just like been homeless. I mean, and now like are doing amazing. Um, in terms of, of lessons that I learned, I mean, the first thing that comes to my mind is like, is, you know, living life one day at a time, you know? Um, that's like one, one of the big, like cliche things that you hear in one of those programs is, you know, one day at a time. And that's really all we can control. And like staying in the present is, is kind of like the thing that I've always tried to work on since like playing golf at a high level, you know, that's what that's all about too, is, you know, being in the present moment, not let anything 10 minutes ago or 10 minutes in the future affect what's going on right now. Um, that's, and it's incredibly difficult to do, you know, Like, so I'd say that's probably the biggest one, you know, that I've pulled away. Um, yeah. And I mean, generally, like, I would say like recovery has, has taught me, you know, to do things that make me uncomfortable, you know? Um, and generally that's like going to lead to some kind of positive result, you know, like some, some sort of like short term discomfort is going to lead to like some kind of long term gain. Um, yeah,

Mike: 28:58

What, uh, what are some tactics or techniques you use to stay in the present? I mean, I think that's something I, I personally struggle with all the time. My mind's always in, you know, la la land. Yeah. Hmm.

Jacob: 29:10

I, I think I, I, I'm right there with you, for sure. Um, I think the only thing that I've found that really works is trying to just redirect, like, thoughts, you know? Um, because when you talk about being the present, that's what it is, it's like thoughts. You know, like where's my, where's my mind at? Um, so, you know, try to redirect and, and just handle what's like right in front of me, maybe just change what I'm doing possibly. Um, yeah, just generally kind of redirect. I mean, I wish I could say, you know, like I go into my meditation room and, you know, get on the soothing sounds, but that's just not reality. You know, I'd love to, to be there or have the time to do it, you know?

Mike: 30:02

Yeah. So when you say redirecting, is that just like, you mean taking your focus off that thought and just bringing it to something in front of you? Is that what you mean by that? Or a little

Jacob: 30:12

Yeah. I think that's, that's probably, that's what I'm talking about. You know, like what I think of when, when I think of like staying present is just like, Having that thought, like, you know, you can apply that like one day at a time thing to like one minute at a time, or like one second at a time. Um, you know, that's what people say when it's like really tough in recovery is like, you know, you just take it one minute at a time, you know, like, I know I can make it through this minute, you know, um, and then do the next one and the next one, and you're going to forget about it, you know, eventually. It's going to pass, like it's going to get better. Um, so yeah,

Mike: 31:00

At what point, um, did you decide, cause I know like you started like the construction side of the business, but for the people who know you locally, at least know that, you know, you're pretty big into doing mobile homes at what point did you decide to jump in that? And why did you make that decision?

Jacob: 31:18

I didn't really make it make like a decision to do it. It's just kind of like what was coming in. I mean, I don't think I really realized like the actual volume of mohams that I was doing until, you know, like a year or two, like down the line. Um, It's interesting. I mean, I was doing a lot of marketing, like in St. John's County. And I mean, I think it's just, you know, known that, that St. John's is tough. Um, and what naturally kind of came was, was mobile homes. Um, I guess that's just what, you know, ended up coming in or what, you know, had these motivation factors. Um, but, When I think about it, I think, you know, probably my first like three or four flips were mobile homes, you know, and before that I was wholesaling a bunch of them, you know, more than half for sure. And like in my total amount of flips, I would say 80 percent have been mobile homes, you know. Um, yep. So definitely the trailer king, as some say.

Mike: 32:33

So were you just like kind of pulling like the, the, the court list and the distress list? And that's just what happened to come back in when you sent out your marketing. You weren't like narrowing it down. It was just like, that's who called. And maybe I guess that's on that list or a lot of it was maybe.

Jacob: 32:49

yeah. I mean, in the beginning, that's really what it was. I mean, that's all I knew to do, really, was, you know, like, you know, official record stuff and, um, that's, that's what ended up coming in. I mean, of course you get to get leads of, of stuff. That's like everything else in like stuff that's close to being a deal, that's the other stuff. Um, But I mean, I think I'm, I'm pretty conservative too. Like on under underwriting, like I'm not, I'm never going to buy a flip. That's like 80 percent minus repairs, you know, um, which, yeah, I mean, I don't know what's normal or if I'm crazy or what, but like I'm pretty much at 70 percent minus repairs, like, or less on everything. Um, You know, and that's with conservative ARV. So I think naturally, like I'm going to get beat out, like on a lot of offers just because of that, like there's, I'm sure a lot of people that would take an 80 percent deal, you know, because whatever, they look at that, that number you can make, like, Oh, I can make 20, 000 on this deal, but it's like, you know, what's wrapped up in that, like, what's the value of like our whole business here.

Mike: 34:09

Yeah. Yeah. How has your, how has your marketing shifted over the years? Because I mean, a lot of people enter the market, things have changed.

Jacob: 34:19

Yeah. Yeah, man. It's, I mean, I've done like a lot of mail, you know, really, um, really forever. A lot of mail. Um, and

Mike: 34:33

got out of the cold calling pretty quickly

Jacob: 34:36

yeah, the only cold calling that I've really done was like when I cold called myself, you know,

Mike: 34:42

okay. Yeah.

Jacob: 34:44

In like the real beginning. And then, you know, I got into like a coaching group with Ryan Dossie. I don't know if you know who he is. Um, you know, he owns, uh, Ballpoint Marketing and, you know, started using those, like, machine handwritten letters, um, in the beginning. And I mean, they're really expensive, but, um, yeah, I've used a lot of that, that type of stuff. And, Now, um, using some less and less expensive pieces. Um, but yeah, a lot of mail. I mean, recently I've been trying to figure out what other stuff we can do to, to generate deals. Um, you know, TV, pay per leave, um, like some PPC SEO. I mean, You tried a bunch of stuff and it's, you know, as you know, like when you try a marketing channel, like you really got to give it like six months, not three, like six, because I mean, if you give mail a try the first three months, you're going to be like, what am I doing? You know, this was terrible, you know? And then like six months, you're probably like, oh, okay, I mean, this is like borderline worth it. And then 12 months, it's like, Ooh, yeah, this is, this is pretty sweet. You know, just because of the life cycle is so long. Like I've just recently started tracking those kinds of KPIs and it's like, Holy crap, man. Like, you know, such a small percentage of our deals come from like the first two weeks of having the lead, you know, or even the first month, it's like, it's like all follow up deals.

Mike: 36:34

Even with, even with your mail leads.

Jacob: 36:37

Yeah.

Mike: 36:38

Wow. Okay.

Jacob: 36:40

And I think that has to do with like our underwriting, you know, we get a lot of deal we get, well, you know, if other investors are talking to them, they're probably going to beat us, you know, but you know, when they get the typical, you know, wholesaler shakedown, um, and, you know, get reduced and dropped and, you know, spit out, they probably remember that, you know, we're an actual buyer. Right. So,

Mike: 37:11

What do you guys do to separate yourselves? Like so that people know that you're an actual buyer so you can hopefully.

Jacob: 37:19

um, I mean, for the people that understand, we'll give a zero day due diligence, you know, um, not many of these people do understand that. I wish they did, you know, because it's, it's pretty serious, you know, commitment. Um, you know, Occasionally, like we'll, we'll be talking to somebody and then they go under contract with the wholesaler and we've been telling them, you know, like, Hey, whoever you're talking to is probably going to bring it to us and try to sell it to us, you know, just so you know, and then like that happened and then we're like, Hey, here it is. They're trying to sell it to us, you know. Like for a lot more, so we're not going to, we're not going to pay this. So let me know when, you know, they don't execute. Um, so yeah, I mean, I'd never go around some, I'd never go around somebody who like on a lead that like we didn't have before, but on a lead we have had and have been working, you know, you just got to do it.

Mike: 38:27

it's fair game.

Jacob: 38:29

Yeah. It's very, it's very game for sure. Um, especially when I'm paying your memorandums off all the time.

Mike: 38:39

Fair enough.

Jacob: 38:40

I actually just remembered that you had one. I'm not, that was definitely not pointed at you.

Mike: 38:46

No, that's fine. No, I didn't think it was pointing to me. I was going to close. I was going to close on that house. That's why there was a memorandum on there.

Jacob: 38:52

Oh my gosh,

Mike: 38:53

was buying it, but

Jacob: 38:55

Yeah, I know. That's really funny. I totally didn't even think about it.

Mike: 39:00

it was a stab.

Jacob: 39:02

Yeah, No, Oh my god, that's funny. Yeah,

Mike: 39:07

um, so you do like, I know we were talking, you know, Like, at lunch that time, I mean, you do Saint John's county and I think you do Putnam and then, like, a couple couple others. Right. Or.

Jacob: 39:20

Clay, Duvall. I mean, yeah, we were talking about how like, Our marketing and Duval has just, I mean, this is, I mean, for the people listening outside of the area of Duval, you probably know what Duval is. I mean, it's, it's huge. It's there's just tons of investors there. I mean, people from across the country. Are just all over it. Um, haven't done done well there really at all. Um, so, yeah, I mean, and there's not a whole lot of mobile homes there really either. Um, there's some and we've done, you know, a dozen probably, um, but yeah, like, generally kind of the more rural areas, yeah, started branching out like, even further actually to,

Mike: 40:08

Really? How far are you guys going now?

Jacob: 40:11

I mean, we, like, closed on 1 today, like, in, uh, Fort white. Yeah. Which is like out there, out there. Like, yeah, you may never even heard of it. Yeah. It's, it's probably like three hours, you know? Yeah. So we'll, we'll send a crew over there to like, stay there until it's done.

Mike: 40:34

Okay. That's what I was going to ask is how do you

Jacob: 40:36

Yeah.

Mike: 40:37

Yeah.

Jacob: 40:38

Yeah. I mean, you could probably pay a contractor to do that, but you're really going to pay, you know? Um, and like having our people in house, like we'll find somebody that's willing to do it.

Mike: 40:51

Yeah. And then you just get a place where they can stay or whatever and

Jacob: 40:55

Yeah, we're gonna stay, like, I think the house is in good shape, so they might even be able to stay there.

Mike: 41:00

Oh, okay. There you go.

Jacob: 41:01

Yeah,

Mike: 41:02

It's got windows.

Jacob: 41:04

yeah, well, I mean, we'll see. I don't even, I haven't been to it, so

Mike: 41:11

Gotcha.

Jacob: 41:11

a lot of stuff like Sight Unseen lately.

Mike: 41:14

Really? Huh. So you, are you just making offers on it on the phone or you're just,

Jacob: 41:19

well, I mean, Sight Unseen for myself, you know, like my, yeah, yeah, I mean, typically I would go to something in the past, but now, I mean, it would be too much, you know, to do it, so we're, I mean, going off of pictures from our, our guys. Um, which I mean, in essence is the same thing as like a wholesaler's pictures, you know? Um, it is, I mean, like my guys are probably not able to like, uh, give me like super great insight on what exactly the property needs, you know? Um, so

Mike: 41:59

It's all about the price though. Right. To a degree.

Jacob: 42:02

yeah, yeah, for sure. I mean, it's definitely interesting to think about like doing, um, You know, strictly over the phone, um, sales, you know, I mean, we picked up some really good deals that we really never go to, you know, because the price is good enough that like, we don't really need to go there, you know? Um, so definitely something I've like contemplated because you're, you know, you're good. Salespeople are out there, like, you know, on the road, like, that's just a lot of waste of time.

Mike: 42:41

Yeah. I know we were talking like a month or so ago about, you know, you were thinking about building out your sales team more, how has that been coming along?

Jacob: 42:53

Um, it's it's not bad. You know, um, I'm like kind of a perfectionist, so I don't think I'll ever be like super satisfied with it. Um, but it's good. You know, we've got a new am and, um, the am that I've had is training him. Um, And I mean, that's amazing for me. Right. Um, and to see that, I mean, I think the, the kid got his first deal today, um, like a week in, you know, I think he just started making offers this week and he got a deal. So, um, I mean, who knows how much of it has to do with, you know, actually his sales skills, you know what I mean?

Mike: 43:40

one.

Jacob: 43:41

Yeah. I mean, like that's another thing that's tough. Like with this is like, you know, You know, it, it could be a deal even if you're like speaking a different language sometimes

Mike: 43:51

Yeah. I mean, everyone gets a lucky one once in a while. Sometimes those are the best.

Jacob: 43:58

Yeah. Yeah.

Mike: 44:01

Or they just say, if you give

Jacob: 44:01

What is, what's your, I mean, what's your opinion on that? I mean, do you think like, like when you're in front of the person, like if it's gonna be a deal, like it seems like so many times it's like as long as we're there, like it's gonna be a deal no matter what you say.

Mike: 44:23

I think when you get, I think 90 percent of your salespeople could get, if they were in person, could get the layups. Right. The problem is if you don't, first of all, if you don't have someone good, great on the phone, you won't go to half the appointments that you should have gone to. But a person who is like a top 5 percent salesperson will get 40 percent more deals across the finish line at better numbers.

Jacob: 44:49

Yeah. And add better numbers is definitely. Yeah. Yeah. That's where, that's where I see that like in person being like super beneficial is like, you know, it may have been a deal, but you know, we probably got it for a lot better of a deal by being there.

Mike: 45:07

Well, I think too, like people just, it doesn't make sense to a lot of, and this is my perspective and I've bought houses on the phone, but I just think there's a lot less resistance to going to see the house in person for someone who actually wants to sell. Because in their mind, how can you buy a house without seeing it? In most people's mind, you're, that seems kind of like you're already having to overcome a hurdle. It's not like a good salesperson can't overcome that, but you're starting at a disadvantage. Also, I can rule, I can get them to rule out any phone offer in about three seconds when I'm there. That offer doesn't, isn't real. I'm like, Oh, cool. Like over the phone, how does that work?

Jacob: 45:50

Yeah,

Mike: 45:51

And there's like, I don't know. I'm like, I don't know either. That's really weird. And they're like, yeah, okay, well, what can you do? You're here. I mean, let's, you know, you seem serious. I'm like, yeah, I'm like, I like to see properties because I'm serious, you know? And they're like, oh, okay. Like, this is like, you know, if the guy is serious, just tell him to come over.

Jacob: 46:11

Yeah. For sure.

Mike: 46:13

So I don't know. That's how I look at it. And there's a lot of people. They just, they want to work with someone like, That they can trust. And there's a lot of trust by meeting someone in person, shaking their hand, even if you're not the best salesperson.

Jacob: 46:25

Right.

Mike: 46:26

So, I don't know. That's, that's my, that's my take on it. You know, I'm crazy passionate about the sales stuff, so I could go on at this all day long, but your podcast, not mine.

Jacob: 46:35

Yeah, no, I think like, it's definitely a very interesting answer because I mean, I know that like, yeah, like somebody like you or me with the experience, like could be out there just absolutely crushing it,

Mike: 46:48

Yeah.

Jacob: 46:49

Um,

Mike: 46:52

guy?

Jacob: 46:59

Oh, you know what? This is an interesting, this is an interesting one. He cold called me from another job. So he was work.

Mike: 47:07

Yeah.

Jacob: 47:09

Yeah, exactly. Right. You know, like he called, he called, called me, he was working for a lender. Um, you know, and like, basically like Kiabi competitor, you know, like lending to flippers and like, he was good on the phone, you know? And I was like, we, at first I was like, kind of just like dismissive, like regretting picking up the phone. Like, yeah, yeah. Okay. So tell me what, like, what's different here. You know, I'm, I'm interested and like he did well with the, like the objections and stuff. And then, then like, I could tell he was doing, doing well. So I threw a couple more at him and then, you know, into the call we were actually talking and I was like, Hey man, um, you know, I don't know if this is a recorded line or not, but, you know, um, and then he ended up hitting me up and. We went to an in person interview and here he is.

Mike: 48:11

And he was, he actually was a, he was local guy. He happened to be local.

Jacob: 48:14

Yep. Yeah.

Mike: 48:16

great.

Jacob: 48:17

Yeah. He worked at a restaurant that me and my girlfriend met at.

Mike: 48:21

Huh?

Jacob: 48:22

Yeah, definitely some interesting connections.

Mike: 48:26

Well, that's a good way to buy it though, man. If they could sell, you know, if they could sell you and you could throw it at them and they take it right, man, it's already passed the first round. That's great.

Jacob: 48:34

mean, yeah, exactly. You know, yeah,

Mike: 48:40

Um, for the people listening who like, maybe don't know as much about like, you know, mobile homes, um, anything different about flipping a mobile home versus single family?

Jacob: 48:51

you don't have to permit anything.

Mike: 48:55

I can edit that out later.

Jacob: 48:58

What's up?

Mike: 48:59

You want me to edit that out later? Oh,

Jacob: 49:05

No, you really don't. I mean, you really don't have to permit anything.

Mike: 49:08

you don't? It's actually like a,

Jacob: 49:10

Yeah. I'm serious.

Mike: 49:12

Oh, like, like you're allowed to not because why? Cause it's, it's not a

Jacob: 49:18

Yeah. I

Mike: 49:18

structure.

Jacob: 49:19

a vehicle.

Mike: 49:22

Oh, okay.

Jacob: 49:23

Yeah. I mean, even if the title, even if the title is retired, like, I mean, there is an option to pull a roof permit, for example, or like there is an option to pull a permit for an AC unit. But the only thing that, that like, it really is not required whatsoever. Um,

Mike: 49:44

realize that.

Jacob: 49:46

yeah, I mean, the only thing that you're really required to pull a permit for is like a well, you know, um, an electric panel, you know, like septic. I mean the really major things, but like in terms of actually on a house, like a normal permitting stuff, there's nothing. Um, yeah.

Mike: 50:12

What, um, what else should people know if they want to flip a mobile home?

Jacob: 50:16

Oh man, it's a lot more expensive than you would think. I mean, you know, as opposed to like a normal house on the slab, like, you know, if you're used to flipping houses, if you're used to flipping stuff that like is not above grade, you know, there's going to be issues that you've never seen before, for sure. You know, um, Naturally, they're less expensive to fix. I mean, because you can get up under there. Um, mobile home tie downs are like always something that's that comes up, you know, and that's it. It's pretty expensive, you know, to be a repair list. I don't, you know, it could be four or five grand. Um, and most mobile homes are on on septic, which. is a major issue too. I mean, like I would suggest to people, you know, to find somebody you actually trust. That's ideally a plumbing company. That's not a septic company to do your septic inspection ahead of time and give it to the buyer. Because if you have, if you're in the process of a sale and a septic company comes out to inspect, They, they just see money signs, you know, to say it failed for this reason. And then if you want the sale to go through, you got to replace it. Um, and they're going to rip you with a, you know, 15 K plus bill probably.

Mike: 51:48

Yeah. So you guys get a plumbing company to go out and inspect it

Jacob: 51:55

Yeah.

Mike: 51:55

time. Every time. Yeah.

Jacob: 51:59

Yeah. I mean, and it's not, it's not even like doing anything like, like shady on the side, like it's legitimately like, I don't trust anybody that's a septic company. And like, In our inspection period, we don't have control over who They use for the inspection. So at least even if they don't take our Inspection we have something to say like hey, this is like it's fine Like it really is, you know, this guy's trying to sell you a new system And like that's saved that's end up ended up saving to where like We didn't have to replace it or we didn't have to get a, give a credit for the full amount, you know? So we only had to give a credit for 5k, you know, just, just kind of like settling the debate as opposed to, you know, 15 to like just replace the whole thing. Um, so there's a lot of stuff that has come up, just like, you know, flipping that, um, you know, you learned from

Mike: 53:09

Yeah. Any other big points people should know that are maybe a little unique

Jacob: 53:14

mobile home. Yeah. I mean, I feel like that stuff. I guess the tie ons, I mean, nothing, nothing really jumping out. I mean, yeah.

Mike: 53:33

How do you guys handle like, cause insurance is difficult in mobile homes. This is an issue we weren't into before cause we've done, you know, do quite a few mobile home flips. Curious how you guys handle that.

Jacob: 53:44

Like insuring on our side.

Mike: 53:46

Yeah. Like, you know, builder's risk policy. Okay.

Jacob: 53:49

I just recently found a guy that's like, um, like a bulk policy, you know, like a master blanket policy, which you may be interested in this if, if, you know, it's pretty sweet. Um, No kickbacks on my end. I promise.

Mike: 54:07

You can have a kickback off. I'll pay for that.

Jacob: 54:10

Yeah, no, yeah. Like for the, like the blanket policy for, um, builders risk it's, it's sweet. You know, like there was an issue with it before where, you know, I'd have like our lenders basically like our private lenders agree to, you know, no insurance. Like, Hey, we're self insuring this because. I'll show you the numbers on paper, what we have to pay in insurance. I can pay for two total losses at the end of the year, you know, or like, I mean, really? And with what we've got now, I mean, it, it ends up being like cheap, cheap, like a thousand bucks or less, you know, for per flip. Um,

Mike: 54:55

blanket

Jacob: 54:55

yeah, yeah. I mean, it's like a, it's like a, Perfect. It's like a per square foot price where like, typically you're going to be paying three, four grand probably for every flip and mobile home insurance. And like, you know, we're, we're under a thousand probably now. Um, it's interesting how, how the policy works. Um, it doesn't include liabilities. Do you guys have a separate liability policy? But, um, yeah, this is something that my, my girlfriend's definitely helped with. All right. She, she was in insurance before. And, um, yeah, has helped cover my ass type of thing as we've grown a little bit, it's, it's scary to think about the liability you got, you know, like having all this stuff going on. Um, so we've definitely been working on that, uh, lately to just in the event that something does happen.

Mike: 55:52

Yeah. I had, uh, no woman that we bought a while ago. It's like a year and a half ago and they gave me an insurance policy on it at closing. Luckily I owned a cache and then a

Jacob: 56:03

answer that right away.

Mike: 56:04

month later, just canceled it. And I was like, Oh, what do you need me to fix? So you don't cancel it. They're like, Oh, we're just canceling. I was like, Oh, thanks.

Jacob: 56:12

Yeah. Yeah. I mean, that's, that'd be great for if you have a hard money lender, you know?

Mike: 56:20

Yeah.

Jacob: 56:20

Yeah. Like, yeah. Um, uh, yeah, I've recently had one, had like a lender try to put me on their master policy and it was, it was legit seven grand for the year, you know? I'm like, wow, like these guys are cleaning up. I need to be in that business,

Mike: 56:44

Yeah, how many, how many of these end up being losses? Right? This is like insurance for what? Like,

Jacob: 56:49

Yeah, for sure. So

Mike: 56:57

taking the business over the next 3 years?

Jacob: 57:01

it's a, it's a great question, man. Um, I'm more new, like new construction is definitely the goal. Um, you know, my goal is definitely to start like at least a couple before the end of the year of those and just see how they go. Um,

Mike: 57:17

Like a single families or more mobile on.

Jacob: 57:20

yeah. Because, you know, build to rent is just so good. Also, um, like I definitely would like to have more rentals. It's just like having the quality of house that I want to have. Um, like everything that I've got is, is 2000 or newer currently. Um, and really I wouldn't want to go outside of that. Um, so yeah, I mean, build to sell, build to rent, you know, Um, maybe end up doing some, some development stuff. I mean, definitely been looking at land, but you know, for the flipping business, just continue like a healthy rate of growth. I mean, um, As long as it doesn't grow like too fast, it's, it's relatively comfortable to do it that, um, Yeah, I mean, we're definitely, it's definitely growing fast, like right now. Um, On track to be probably double revenues last year.

Mike: 58:21

Wow,

Jacob: 58:22

Yeah.

Mike: 58:22

what, what do you, what do you attribute that to?

Jacob: 58:27

Just increased marketing and put some effort into trying to find more money. Yeah. Um, like at this point we've got it down to a pretty good science of like finding more crews and like our crew continually gotten better and faster. So we're able to just naturally handle handle more stuff now. All right. You know, one crew that I've got can, can probably do, you know, 15 full rehabs in a year. Um, yeah, it's, it's definitely a lot. They're like freaking beasts. Um, so, and as time goes on, I think, you know, more of them will be able to do that type of, type of numbers, type of speed. Uh, we've pretty much got two crews like that that are at that level of production now. Um, And then three more that are pretty good. They could probably do about 10 a year.

Mike: 59:23

Yeah, so what is your business look like now, in terms of, I know the construction side you've talked about a lot, but, like, other people who work for you.

Jacob: 59:34

Yeah. Um, so two lead managers to acquisition managers, which has recently changed, just brought on each, uh, lead manager and acquisition manager new. We talked about this before and like, I really appreciate, you know, what we talked about, um, at lunch that, that one day. Um, so yeah, I mean, hopefully get some accountability here, like get some, some more consistency and just be able to rip marketing. Um, you know, I'm not afraid to, to spend it on marketing and just, you know, kind of see where we can go with it. Um, yeah.

Mike: 1:00:16

you still sticking to, um, only the, uh, like niche niche type lists or court court lists? Or have you expanded out?

Jacob: 1:00:27

I mean, you have to expand more. I mean, there's only so many that you can hit, you know, even if you're sequencing it out, like there's, it's just not that much. So yeah, having heard some of that, like more broad spectrum stuff, um, and really haven't got that clicking super well yet trying to figure out what, you know, works there. Um, it's, it worked in the past, but I don't know. I mean, I just, you know, I've kind of done the same thing for a long time now. Every couple of months, like throw in something more broad. And other than that, just kind of hit and itch stuff. Um, but yeah, I mean, it's always kind of like how, how well can you dial in like that high value data? Um, yeah.

Mike: 1:01:23

Um, just so people aren't left, like, uh, wondering what this mysterious thing that we talked about at lunch is you want to just tell everyone? Cause you kind of like dropped the cliffhanger right there. It

Jacob: 1:01:37

Did somebody comment about them?

Mike: 1:01:39

but go ahead.

Jacob: 1:01:41

Yeah. I mean, really, we just talked about, um, like if you have one, one of each role, There's no accountability. There's no like basis. It's just kind of like, you know, we're going off of that one person's like historical data and numbers and, you know, no competition and really they get everything like, you know, like as in, like the nature of the business is, you know, there's going to be a decent bit of lay downs and, you know, they can eat and do very well just off of the lay downs and not have to work stuff hard. So, um, by having more people, you know, those are split up and you're forced to actually grind it out,

Mike: 1:02:28

Yeah, for sure.

Jacob: 1:02:30

which

Mike: 1:02:30

this? good. Sorry.

Jacob: 1:02:32

no, I mean, which is like kind of embarrassing that that's how it was. I mean, like with that team, with that team, we're still just like cranking really good numbers, um, with just one and one. Um, but at the same time, kind of like, damn, like we're at this, this point and like still have this fundamental of an issue, um, Yeah. So where did I find him? Um, the AM was, you know, what we were, what we were talking about off your phone call, the other person was a referral from our, uh, from the LM that I've had,

Mike: 1:03:11

Dude, you are all about the referrals, man, like the construction or everything. I mean, that seems like you've built your business on the back of referrals, which is awesome. I mean,

Jacob: 1:03:20

I never even really thought about that, but yeah, pretty much. Um, like the first AM, the first, actually the lead manager that I've had came from the yellow bird group. Um, It came from actually yellow bird when they kind of, you know, let everybody go. She came, you know, on with me. Um, and, uh, you know, the only person that I really hired from one of those like job boards is, is the, um, AM that we've got right now.

Mike: 1:03:49

Yeah, oh, the other day, original or

Jacob: 1:03:51

Yeah. The first, yeah. I mean, definitely not the first, but

Mike: 1:03:55

Okay.

Jacob: 1:03:56

yeah,

Mike: 1:03:58

First, it worked out.

Jacob: 1:03:59

before that, um,

Mike: 1:04:01

Yeah.

Jacob: 1:04:02

unfortunately.

Mike: 1:04:03

Yeah.

Jacob: 1:04:04

Like thinking about historically, I mean, I've had one girl that was with me for a while. It was really good. I think I found her from the job board. Um, and then obviously we've got VAs. I mean, like I've got one that's my assistant and she's like really good. She's doing TC stuff, which was another thing that you helped me realize is it's absolutely ridiculous for me to be doing TC stuff. Um, yeah. I mean, that's just nuts. So I've been training her on that and it's helping a lot.

Mike: 1:04:36

yeah, and yeah, that's, that's that stuff. People never realize how hard that gig is like, there's so many things that go on.

Jacob: 1:04:46

Oh yeah. I mean, it's like, I don't know. Like, do you, do you come across like what percentage of your deals have like some kind of title issue?

Mike: 1:04:55

Mm, 40, maybe 30 40 a good amount, like, and maybe not something major, but something's still got to be called, gone after whatever, right?

Jacob: 1:05:10

just gotten smashed lately with issues, you know, like, I mean, I can show you my board right now and it's like bad, like 70, 80 percent of what we've got right now. Yeah. And it's like really hung stuff up. Yeah, definitely a struggle there. I never had, never had any like significant issues like that in the past. And then we just got slammed with,

Mike: 1:05:37

You're hitting some different weird lists or people who are super stacked. People can sometimes be the title issues. You know, there's a reason why on seven lists.

Jacob: 1:05:50

The mistake there for sure. You know, code violations and

Mike: 1:05:56

Yeah.

Jacob: 1:05:57

gosh, like one of them is like a, we have a purchase price of 7, 500 for, for a trailer that like basically the whole back half of it's burnt off. Um, And code violations, 195, 000. And it's like, okay, we'll probably get that released to like, or reduce to like 1200,

Mike: 1:06:22

Yeah. Yeah. would you say like your unique ability is in the business?

Jacob: 1:06:32

probably like, probably underwriting. Um, yeah, I mean, that's like really important because like where that, like, you may be wondering, like, where does that come from? I've lost money on one deal, you know, period. Um, so, you know, Making sure that our average spreads like really good. Um, not really something we've talked about here, but like, I'm definitely go by the principle that like, if we're doing a deal, it needs to really be worth it, you know? Um, so like, I don't know what the, what the average flippers, you know, um, profit is, but you know, we're up there.

Mike: 1:07:21

Yeah. I heard someone, um, Hmm. It was Alex Rose, actually a long time ago. I think you probably met him. He told me, He said, he told me one time I, this thing stuck with me. He says, I try not to make deals work.

Jacob: 1:07:32

Yes,

Mike: 1:07:33

to think about it. That is a great

Jacob: 1:07:35

exactly. Yep. They need to, they need to sell themself. Um, yeah, for sure. And I know like anytime, anytime, like an AM or like somebody is trying to tell me something about like, Oh, it's a great neighborhood. Get out of here, man. I don't want to hear anything about that.

Mike: 1:07:58

Well, that's lots nicer than the house next door. Oh, not that much nicer though. And maybe the house next door sold on a

Jacob: 1:08:03

really? Yeah. Oh

Mike: 1:08:06

VA loan. So that number is not real that it's sold for. Right.

Jacob: 1:08:12

man. We've been on our flips, man. So many VA offers recently. I think I told you this before, but it's continued, you know, um, like the VA three, 4 percent credit, it's like, yeah. Oh yeah, I know. And it's like, you're really getting like 4 percent back. Like they're seriously going to have 0 out of pocket to close this deal. Um, like. It's literally the money they have into this is their inspections, and we may even get credited back for that at close.

Mike: 1:08:50

You, you ever, do you ever do any single wide flips or do you run into issues on that in the backside with financing.

Jacob: 1:08:56

No, I mean, actually done pretty well on a couple of those.

Mike: 1:09:00

Oh, okay.

Jacob: 1:09:01

Yeah. Surprisingly, we've had some like this year. We've had. You know, some cash offers on on mobile homes to sell. Um, that's always nice.

Mike: 1:09:13

Is the financing the same on the backend for a single Y as long as it's like, you know, not super crazy old.

Jacob: 1:09:20

Yeah, pretty similar. Um, I think it's harder for them to find something. I don't know what, I don't know if it's harder to qualify. I mean, I haven't seen like a, really, we haven't done enough to see like a proportion of like how many of them fall out, fall out, you know, compared to like double wides. Um, yeah, I mean, I can't really answer that.

Mike: 1:09:48

Yeah. Fair enough. Well, um, we're getting close to the end and there's always two questions I like to ask at the end and the first is kind of fun. So what is the craziest or most uncomfortable situation that you have ever experienced in a real estate deal?

Jacob: 1:10:05

Okay. In real estate. Yeah, especially there. Right. Um, Um, Oh man, the craziest. I mean, I would say probably this, this one property that like. Probably, it was probably one of the first properties that my girlfriend came to with me when we were, Um, you know, like for an acquisition appointment. You know, we were just hanging out and it was like, okay, I'm going to go check this out. Um, an area that we, you know, very familiar with and plenty of flips out there, you know, whatever. Um, we show up to the house and that, I mean, this lady had mentioned something about like, uh, she's got dogs, you know, and. Like whatever, you know, like I'm not scared by dogs or anything like that. Um, and so we show up and knock on the front door. It takes her probably five, 10 minutes to come to the door, you know, hurt or yell from the inside, like, Hey, I'll come and just hang on. And then, you know, she comes, opens the door. She's like, Hey, I'm sorry. I'm, I'm just getting the dogs together. I'm like, you know, like, okay, yeah, no problem. I mean, we're, and she's like, oh, I'm so sorry. I'm so sorry about the dogs. Okay. You know, we're here. We like dogs, you know, and she, she's talking about the smell and like, you know, that's like their, her only focus. So we go in, you know, come in the front door and like, first thing to the left, we look at it, it's probably like. Like in a, in a double wide, literally like a big double wide, like the whole front room there is full of like baby Yorkies, you know, probably like 50 to 75 baby Yorkie. And so, you know, that was stunning enough. Right. And, you know, from there, she was like, yeah, we can't, we can't go in these rooms, you know, over here, cause they're just too full of Yorkies And Yeah. Yeah. And we.

Mike: 1:12:12

all of them

Jacob: 1:12:13

Yes, all of them. And Like this,

Mike: 1:12:16

in your keys.

Jacob: 1:12:18

the smell was insane, dude, like so strong. And long story short, every room we go into, there's probably another 30 or 50 Yorkies. So this, this lady's literally got like hundreds of Yorkies in this double wide. And I definitely understood why she was concerned about the dogs. You know, um,

Mike: 1:12:42

Did she say the

Jacob: 1:12:42

so I, oh yeah, I, I bought it and it, it came, it came with the lot next door. And I mean, it ended up being a, a six figure deal overall. Um, but the house, like we planned on rehabbing it, but the smell was seriously too bad. Like we would've had to rip out all the subfloor, all the drywall to get it out, you know? So we ended up cleaning it out and like trying to paint it and literally like rolling bleach on the floor and the walls and like nothing, you know? And so we ended up selling it like as is, cause like we're not going to go this far with it. Um, Yeah. I mean, made money on the house and then basically got the lock for free next door and put a new trailer on it. Yeah. It was great.

Mike: 1:13:31

There you go.

Jacob: 1:13:33

So yeah. yeah.

Mike: 1:13:37

That's interesting. That's been interesting, particularly because they were all Yorkies. That, that, that makes it more insane for some reason to me. Yeah. Uh,

Jacob: 1:13:45

I mean, just, just what you would think. Little baby five pound Yorkies probably,

Mike: 1:13:54

so the last question I always ask is, um, if you could go back in time and give yourself one piece of advice when you were looking for your first deal, knowing what, you know, now, what would you tell yourself?

Jacob: 1:14:12

you know, I probably would, I don't know. I mean, I don't really know what I would change about it. I mean, I guess the only thing that I probably would change is like buy stuff sooner. You know, um,

Mike: 1:14:26

good.

Jacob: 1:14:28

yeah, probably buy stuff sooner. I mean, yeah, I mean, and just keep at it. I mean, don't get discouraged. I didn't really get discouraged. So, Yeah. Yeah.

Mike: 1:14:43

Well, um, Jacob, if people want to reach out to you after the show, if they have questions or, you know, maybe they have a mobile home they want to sell you, how can they go about reaching out?

Jacob: 1:14:53

Um, I mean, I'm on, I'm on Facebook, Jacob Klein, K L I N E, probably be spelled out somewhere here. And, um, also on Instagram, Jay Klein, something, R E I, I think it's underscore. I don't know. I don't know this stuff, man. I'm not an, Oh, there it is. Yeah.

Mike: 1:15:13

I just put on the screen.

Jacob: 1:15:14

I'm not an influencer, man. I'm sorry, but yeah. Bring me, bring me your trading. Yeah. If you don't bring them to Mike, bring them to me, but you probably shouldn't bring them to Mike if you listen to this.

Mike: 1:15:30

Jacob, we don't do Putnam County, so send the Putnam ones to him.

Jacob: 1:15:33

Okay. Okay. Fine. Yeah.

Mike: 1:15:38

Cool, man,

Jacob: 1:15:38

this is great. Um, really good conversation for sure.

Mike: 1:15:43

Thanks for being on the show, man. It was awesome.

Jacob: 1:15:45

Absolutely.