What if You Could Invest $100k Once, Make $20k/Year Forever? EP 251: Jefferson Lilly
Explicit content warning
06/02/16 • 31 min
Jefferson Lilly, a millionaire who left his Silicon Valley job to become an expert in Mobile Home Park Investment. Listen as Nathan goes over the nuts and bolts of Mobile Home Park Investing with one of the industry’s leaders.
Famous 5 Favorite Book? – The Snowball What CEO do you follow? — Sam Zell What is your favorite online tool? — Search Tempest Do you get 8 hours of sleep?— Yes If you could let your 20 year old self know one thing, what would it be? — How good this niche of real estate is...I would have started raising outside capital sooner.
Time Stamped Show Notes: 01:20 – Nathan’s introduction 02:01 – Welcoming Jefferson to the show 02:15 – Why Jefferson left Silicon Valley to enter mobile home investing 02:40 – “Warren Buffett was right” - Jefferson looked for value investments 03:10 – Mobile home parks yield 300-400 basis points more than apartments 03:30 – Jefferson was 39 with a $100k salary when he got involved with property investing 04:30 – First deal was $450k, with an 80% loan from the bank - put down about $86k 05:17 – Jefferson had almost $1 million saved at this point 06:00 – First property earned about $45k each year 07:00 – 40 filled lots; lot rents $110 per month. 24 vacant lots 08:08 – Jefferson invested in buying and fixing used mobile homes to fill his vacant lots 09:10 – The $20k investment in each used home was repaid by tenants at $600 a month 10:00 – Rental income is about... 12:00 – “If I’ve got $30k, what are the first steps I should take to find a deal?” 12:30 – Get educated: resources at Park Street Partners 13:00 – For $30k, look to buy a 5-space property, say $100k 14:20 – “If you’re not earning 20% on your money, you’re doing something wrong.” 14:50 – Any state that borders the ocean is a good bet 15:30 – Look at places like LoopNet for starting deals 16:30 – How do I value a mobile home park? Jefferson’s advice. 18:00 – Going it alone vs. joining a fund 20:00 – Park Street Partners runs an investment fund 21:40 – They don’t charge management fees - they only make money if the fund does 22:40 – Last year the business made around $5 million
3 Key Points: Do your research. If you’re moving into a new investing field, take at least 100 hours to really learn what you’re doing. Mobile homes have some of the best returns on investment of any property type Consider how much time you want to spend managing a property investment. If you’ve got the time and want more profits, go it alone; otherwise it’s worth looking into funds
Resources Mentioned: Freshbooks - The site Nathan uses to manage his invoices and accounts. Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible. Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+ Audible – Nathan uses Audible when he's driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
Show Notes provided by Mallard Creatives
The Top is FOR YOU if you are:
A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4)
STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7)
An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1)
The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).
Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.
Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop
Jefferson Lilly, a millionaire who left his Silicon Valley job to become an expert in Mobile Home Park Investment. Listen as Nathan goes over the nuts and bolts of Mobile Home Park Investing with one of the industry’s leaders.
Famous 5 Favorite Book? – The Snowball What CEO do you follow? — Sam Zell What is your favorite online tool? — Search Tempest Do you get 8 hours of sleep?— Yes If you could let your 20 year old self know one thing, what would it be? — How good this niche of real estate is...I would have started raising outside capital sooner.
Time Stamped Show Notes: 01:20 – Nathan’s introduction 02:01 – Welcoming Jefferson to the show 02:15 – Why Jefferson left Silicon Valley to enter mobile home investing 02:40 – “Warren Buffett was right” - Jefferson looked for value investments 03:10 – Mobile home parks yield 300-400 basis points more than apartments 03:30 – Jefferson was 39 with a $100k salary when he got involved with property investing 04:30 – First deal was $450k, with an 80% loan from the bank - put down about $86k 05:17 – Jefferson had almost $1 million saved at this point 06:00 – First property earned about $45k each year 07:00 – 40 filled lots; lot rents $110 per month. 24 vacant lots 08:08 – Jefferson invested in buying and fixing used mobile homes to fill his vacant lots 09:10 – The $20k investment in each used home was repaid by tenants at $600 a month 10:00 – Rental income is about... 12:00 – “If I’ve got $30k, what are the first steps I should take to find a deal?” 12:30 – Get educated: resources at Park Street Partners 13:00 – For $30k, look to buy a 5-space property, say $100k 14:20 – “If you’re not earning 20% on your money, you’re doing something wrong.” 14:50 – Any state that borders the ocean is a good bet 15:30 – Look at places like LoopNet for starting deals 16:30 – How do I value a mobile home park? Jefferson’s advice. 18:00 – Going it alone vs. joining a fund 20:00 – Park Street Partners runs an investment fund 21:40 – They don’t charge management fees - they only make money if the fund does 22:40 – Last year the business made around $5 million
3 Key Points: Do your research. If you’re moving into a new investing field, take at least 100 hours to really learn what you’re doing. Mobile homes have some of the best returns on investment of any property type Consider how much time you want to spend managing a property investment. If you’ve got the time and want more profits, go it alone; otherwise it’s worth looking into funds
Resources Mentioned: Freshbooks - The site Nathan uses to manage his invoices and accounts. Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible. Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+ Audible – Nathan uses Audible when he's driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
Show Notes provided by Mallard Creatives
The Top is FOR YOU if you are:
A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4)
STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7)
An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1)
The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).
Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.
Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop
Previous Episode
Why Most Podcasters Lie with Rob Walch of Libsyn, EP 249: Rob Walsh
Rob Walsh, the VP for Podcaster relationships for Libsyn, and recently named as the 5th most influential person in podcasting. Rob was in podcasting before iTunes was: listen as he and Nathan talk through the ins and outs of business podcasting, how to make a successful show, and what to look for when sponsoring a podcast.
Famous 5 Favorite Book? – The Art of SEO What CEO do you follow? — Jack Welch What is your favorite online tool?— Evernote Do you get 8 hours of sleep?— I have never had 8 hours of sleep If you could let your 20 year old self know one thing, what would it be?— The powerball numbers for December 1, 1989
Time Stamped Show Notes: 01:23 – Nathan’s introduction 02:15 – Welcoming Nova to the show 02:45 – What are the trends in business podcasting? 02:50 – Concentrating on ‘new and noteworthy’ is a waste of time 04:02 – The podcast Top 200 list is calculated only by new subscribers 05:10 – New subscribers doesn’t translate to downloads 05:33 – Best resource for investors is the episode list in iTunes 07:20 – Top 5 business podcasts sit at 100s of 1000s of downloads per episode 09:20 – The Top has 250 to 300k downloads per month - how does that compare? 09:58 – Don’t look at figures per month - look at per episode 10:21 – The Top averages around 3000 downloads 30 days after an episode 10:50 – The median number is about 150 11:50 – Most business podcasts don’t reach the median mark 12:20 – An adjusted average is about 2000 12:40 – A show with 5000 downloads per episode is in the top 8% 13:40 – “Everything comes down to word-of-mouth marketing” 14:30 – The best advice on podcasting is free 14:53 – Advice on sponsoring a podcast 16:40 – Starting a new show: put together your own email list and blast your links out 17:46 – Is anyone putting together something like Wistia for podcasts? 18:40 – Apple is committed to keeping podcast traffic on iTunes 19:30 – Overcast is the most promising new podcast player 20:50 – The ‘discoverability issue’ in podcasting is a myth 22:05 – Libsyn’s business model 23:01 – Libsyn has around 30,000 paying customers 21:45 – Famous Five
3 Key Points: The absolute best way to succeed in podcasting is to create fantastic content. Don’t waste your time looking for shortcuts. The quality of advice is usually inversely proportional to how much you pay for it. Podcasting is down to word-of-mouth marketing: if you’re making a great product, then help people to talk about it
Resources Mentioned: Freshbooks - The site Nathan uses to manage his invoices and accounts. Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible. Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+ Audible – Nathan uses Audible when he's driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
Show Notes provided by Mallard Creatives
The Top is FOR YOU if you are:
A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4)
STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7)
An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1)
The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).
Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.
Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop
Next Episode
He’s Taken No Funding, Doing $2,600,000 Per Year With SaaS Business Webinar Ninja, EP 252: Omar Zenhom
Omar Zenhom, co-founder of Webinar Ninja. Omar and his partner Nicole used their years of education experience to develop software and training resources for webinars. Omar also hosts the $100 MBA show, a top-ranked podcast with over 50,000 downloads per day. Listen as Nathan and Omar talk through the process of building up Webinar Ninja - as always, with an eye on the numbers.
Famous 5 Favorite Book? – Anyone Can Do It What CEO do you follow? — Myself What is your favorite online tool? — Slack Do you get 8 hours of sleep?— No If you could let your 20 year old self know one thing, what would it be? — You’ll do better if you rely on your own strengths and skills - don’t look for a path through other people.
Time Stamped Show Notes: 01:10 – Nathan’s introduction 02:20 – Welcoming Omar to the show 02:30 – “Education is a performance” 03:00 – Of Omar’s projects, Webinar Ninja is currently generating the most revenue 03:30 – Over 500 episodes of the $100 MBA show since 2014 04:10 – What you really need to know about getting sponsorship for your podcast 05:05 – Currently use an agent, Midroll, to negotiate sponsorship deals 06:15 – Making around $15-16k in sponsorship per month 07:20 – Discussion of sponsorship models 08:10 – Webinar Ninja: “I was scratching my own itch” 08:50 – Omar and Nicole launched Webinar Ninja in April 2014 09:15 – From $65, $115, or $165 per month 09:40 – “We’re still testing prices and collecting data” 10:20 – Moved away from Google Hangouts to Web RTC 11:00 – Currently working with 2500 customers, 1900 of whom are monthly customers 11:30 – Average customer pays $115 per month 12:20 – MRR $200,000 from Webinar Ninja 12:30 – “We’re really into making everything we release completely stable” 13:15 – Churn rate of around 7% - that means 93% of customers stay on month-to-month 14:20 – Advertise through Facebook ads, public speaking, event sponsorship 15:00 – Paid $15,000 to sponsor Heroic Public Speaking 16:00 – Advertising spend of around $3.20 per customer 17:20 – 8 full-time team members on Webinar Ninja, all remote 18:00 – Total salary cost per month around $9500; all costs around $20,000 a month 19:15 – “I’m happy growing slow - I don’t really want to blow up” 19:30 – Omar says he wouldn’t sell Webinar Ninja right now 20:30 – Right now Omar’s investing profits back into his business 21:15 – How the affiliate program works 22:30 – Other major costs include security and server infrastructure
3 Key Points: Forge your own path. Success comes from relying on your own strengths and skills, not by following other people. It’s okay to grow slowly. You get to decide what you want from your business: stable, slow growth is no better or worse than being explosive. Some of the best business ideas come from solving your own problems.
Resources Mentioned: Freshbooks - The site Nathan uses to manage his invoices and accounts. Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible. Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+ Audible – Nathan uses Audible when he's driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
Show Notes provided by Mallard Creatives
The Top is FOR YOU if you are:
A STUDENT who wants to become the CEO of a $10m company in under 24 months (episode #4)
STUCK in the CORPORATE grind and looking to create a $10k/mo side business so you can quit (episode #7)
An influencer or BLOGGER who wants to make $27k/mo in monthly RECURRING revenue to have the life you want and full CONTROL (episode #1)
The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).
Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.
Oprah gets 60 minutes or more to make her guests comfortable to then ask tough questions. Nathan does it all in less than 15 minutes in this daily podcast that's like an audio version of Pat Flynn's monthly income report. Join the Top Tribe at http://NathanLatka.com/TheTop
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