Episode Summary: REAL DEAL: Intentional Investing with Emily

Podcast Information:

• Title: Real Estate Investing School Podcast
• Host: Brody Fawcett
• Episode: 222. REAL DEAL: Intentional Investing with Emily
• Release Date: December 26, 2024
• Description: A deep dive into real estate investing strategies with expert coach Emily Fackler, exploring her journey, a successful mobile home park deal, and actionable insights for aspiring investors.

1. Introduction to Emily Fackler

Brody Fawcett welcomes listeners to a focused episode featuring Emily Fackler, the head coach at Real Estate Investing School. Emily is lauded for her impactful coaching and the positive feedback from her students.

Key Points:

• Role at Real Estate Investing School: Emily manages and coaches a group of 14 dedicated students.
• Personal Journey: Emily transitioned from a successful corporate career to real estate investing driven by the desire to spend more time with her family.

Notable Quote:

“What is this all for? Right. Why am I not around my family all the time? And they're the most important thing.”
– Emily Fackler [02:48]

2. The Pivotal Decision to Invest

Emily shares her realization that despite professional success, her demanding job kept her away from her children, prompting her to seek a path that offered both financial stability and family time.

Key Points:

• Sacrifices Made: Relocating cities, pulling kids out of private schools, and setting strict budgets were necessary steps.
• Motivation: Building a future through real estate investing while reducing expenses and maintaining family priorities.

Notable Quote:

“We moved cities, pulled our kids out of schools that were, you know, private schools, took a big look at our budget and had to set really strict rules on that. So absolutely huge sacrifices, but totally worth it.”
– Emily Fackler [03:27]

3. Introduction to the Featured Real Estate Deal

Emily introduces a mobile home park deal in Kentucky, emphasizing her goal to acquire the property with no personal capital by leveraging seller financing and personal investments.

Key Points:

• Property Details: 72-lot mobile home park located in Kentucky, found through Facebook Marketplace.
• Initial Challenge: Seller’s asking price was $600,000, significantly higher than Emily's target.

Notable Quote:

“My goal for this property was to use zero of my own money. And I'll be honest with everyone, I didn't even have any money to use.”
– Emily Fackler [05:21]

4. Acquisition Strategy and Negotiation

Emily details her proactive approach in reaching out to sellers directly rather than relying on traditional platforms like LoopNet, emphasizing the importance of persistence and relationship-building.

Key Points:

• Lead Generation: Utilized Facebook Marketplace with specific keywords to identify potential deals.
• Seller Engagement: Initiated conversation with the property manager, leading to negotiations on seller financing.

Notable Quote:

“I love when I go in. So I'm in, like, a small town, I go into, like, local places, and they'll say, hey, did you just buy, you know, blank, blank, blank property? And I'm like, yeah. And they'll go, well, I didn't think it was for sale. And I said it wasn't. I love it, but you gotta ask for the sale.”
– Emily Fackler [06:09]

5. Structuring the Deal Through Seller Financing

Emily explains how she negotiated the purchase price down to $375,000 by offering seller financing terms that were mutually beneficial, demonstrating flexibility and understanding of the seller’s needs.

Key Points:

• Negotiated Terms: Reduced purchase price from $600,000 to $375,000 with 10% down.
• Seller Financing Details: 6% interest rate over 20 years, amortized over 30 years, with a 5-year balloon payment.
• Funding Strategy: Secured the down payment from a family friend’s investment, avoiding the use of personal funds.

Notable Quotes:

“So we ended up going with purchase price of 375. ... Seller finance, 10% down, 6% interest rate for 20 years.”
– Emily Fackler [15:24]

“I know, baked into my business plan that we were going to raise, raise rents on the lot, upgrade, fix up some of the units and put new people in, which we've already done that.”
– Emily Fackler [20:12]

6. Financial Performance and Cash Flow Management

Emily discusses the initial and ongoing cash flow from the mobile home park, highlighting strategic reinvestment to enhance property value and income.

Key Points:

• Initial Cash Flow: $3,500 per month starting day one, reinvested into property upgrades.
• Increase in Cash Flow: Additional $3,300 per month achieved through property improvements and adjusting rents to market rates.
• Long-Term Strategy: Gradual rent increases aligned with lease renewals to maintain affordability and community support.

Notable Quote:

“We put a lot of money in, and that's cash flow. So I, I can't remember my exact expenses, our mortgage that we pay to the seller. Oh, gosh, I, I, I can't remember off the top of my head.”
– Emily Fackler [22:30]

“Over the past year, we have increased the cash flow by around 3,300.”
– Emily Fackler [22:25]

7. Lessons Learned and Advice for Aspiring Investors

Emily shares valuable insights from her experience, including the importance of having reserve funds and the benefits of mentorship and community support.

Key Points:

• Mistakes Made: Initially lacked sufficient reserves, leading to challenges with unexpected plumbing issues.
• Advice: Always secure reserve funds or alternative financing options to handle unforeseen expenses.
• Value of Mentorship: Encourages seeking coaching and being part of a supportive community to navigate the complexities of real estate investing.

Notable Quote:

“One thing I did wrong about this deal and I want to explain that is I did not have enough reserves in my account.”
– Emily Fackler [26:04]

“It's just so much easier when you have somebody to do it with you. So even if you're, you know, I highly recommend getting a coach and being involved in something like the real estate investing school.”
– Emily Fackler [27:05]

8. Final Thoughts and Resources

Brody concludes the episode by highlighting the availability of coaching services and resources for listeners interested in pursuing real estate investing.

Key Points:

• Real Estate Investing School: Offers a range of coaching services with expertise across various real estate asset classes.
• Call to Action: Listeners are encouraged to book a free call via the show notes to explore how the school can assist in their investment journey.

Notable Quote:

“If you're sitting here listening to this, being like, hey, I would love someone to help me go through the process so I don't make some of those mistakes and I can scale a lot quicker. That's what we do. That's what we're here to do.”
– Brody Fawcett [29:13]

Conclusion

This episode of the Real Estate Investing School Podcast provides an in-depth look at Emily Fackler's strategic approach to acquiring and managing a mobile home park. From leveraging seller financing and personal networks to reinvesting cash flow for long-term growth, Emily offers practical insights and actionable advice for aspiring real estate investors. Her emphasis on family priorities, strategic financial management, and the importance of community support underscores the intentional investing philosophy that drives her success.

Listeners are encouraged to engage with Real Estate Investing School for further guidance and to replicate Emily's successful strategies in their own investment endeavors.