We just bought our 3rd mobile home to flip. It was so ridiculously easy, I couldn't believe it.
I had been talking with the owner for a few months, and she had it listed for $19,000. She was very motivated to sell, and we negotiated buying it for $8000 cash.
We will be able to do some repairs and resell it for $25,000-$35,000. Woo hoo! After realtor fees and capital gains tax, we will make $10-$15,000 profit.
And voila, there is an affordable home for someone.
We love using 100% cash for these side projects, and seeing that cash grow.
It's called building wealth organically.
We started small, buying our first mobile for cash and then rolling the profit from the sale into our savings and then the next mobile, and then the next.
Using cash to grow cash is very liberating!
For years I was in the debt cycle. I would accrue large amounts of consumer debt that would outweigh the value of my assets, then pay it all off, only to watch it all grow back!
7 years ago when I lost my clients due to a move to a new town, I felt the pain of debt. Even though I had experienced a downturn, my high consumer debt payments kept marching along.
Until I paid them off, I was not able to get ahead.
My mistakes back then:
*Relying on debt to fund lifestyle & my business rather than real cash.
*Overspending each month because I had no plan.
*Not saving at all for emergencies or investments because debt payments ate up all my income
*Constantly chasing my tail to make money just to make the debt payments
When the cycle became too painful, I finally woke up.
I decided "NO MORE!"
And then I learned practical tools to build wealth organically, and started using them with myself and my clients:
To Grow Wealth Organically:
*Completely eliminate consumer debt!
*Use a written plan for your money each month
*Live on less than you make
*Work on upping income
*Save a percentage of your money each month
*Invest, and watch your money make more money!
I paid off $40,000 in debt, saved a fully-funded emergency fund, and saved another $100,000 in 3 years. We bought a home, and then started piling up cash for investing.
The power of cash is amazing! Do you know when you pay cash, you are secure? If the economy tanks, or the real estate market goes sour, or you lose your job, you actually have real assets!
Investing in a home and/or rental properties is the only kind of debt I recommend, because with those you have a real asset.
Just don't do it until you are out of consumer debt and have an emergency fund!(I've seen too many people buy a house without savings and have thousands of dollars in unexpected repairs!)
We know our investments will just keep growing and growing, as we leverage our cash to build wealth.
Whether you invest in the stock market, a business, or real estate, cash helps you grow wealth without risk.
And who knows....
Maybe you will become a mobile home mogul too?
Kathy Kali is a Certified Financial Coach and Business Advisor. She specializes in helping entrepreneurs and working families to build wealth using practical steps. Kathy has a passion to help heart-centered entrepreneurs(healers, coaches, teachers & leaders) build wealth so they can change the world!
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Coach. Teacher. Author. Speaker.