How a $700 Mobile Home Started Eric Stalter’s Real Estate Investing Career

Eric Stalter (00:00)
I had a great deal with my dad, actually. I just had a standing deal where I just paid him 11% interest. Boom. I’d borrow the money, pay him 11% interest, borrow the money. People say 11%. Yeah, for two months. Big deal, you know? So I would really go back, I would establish it, I would set it in its place, I would automate it, oversee it, and then I would advance. I wouldn’t scrap it and advance. So in hindsight, I would, I would build and stay, build and stay, build and stay.

Scott Bursey (02:02)
Welcome back to the Real Estate Pros podcast powered by Investor Fuel. I’m your host, Scott Bursey. And today we have Eric Stalter with us. Eric is the founder of Seamless Investment Group and FuSeBOx RE. With nearly two decades in the industry since 2007, he’s a pro in the residential sales, property management, and investment properties. Pros, you can expect some serious insight today on how to navigate the current market and build a legacy portfolio. Eric, welcome to the show.

Eric Stalter (02:33)
Hey, how you doing? Thank you for having me.

Scott Bursey (02:34)
It is awesome having you here, my friend. Help our listeners get up to speed. Please give us the ninety-second highlight reel of how your career ignited and where you’re pouring your fuel now.

Eric Stalter (02:46)
Okay, 90 seconds. I— I’ve always been in business for myself. In 2007, I— I decided I wanted my— my real— my real estate license, so I got it. Two years later, I sold the business that I was in— a printing and promotional business— and went full-time into real estate. I started flipping mobile homes, selling on, you know, lease options, lease mobile homes, did a lot of those. Did that for about 10 years— great mailbox money— and thought I needed to go to the next level, right? So I started investing in single-family homes. That’s where I’m at now.

I’ve kept my real estate license, and I’ve since gotten my broker’s license— I did that in 2012, ’13— and have kept that going. So I do buy and sell for my clients, but I keep very active in— in my investing role. And I still will pick up mobile homes every now and then, as I mentioned to you earlier. Probably something I should have stayed in, you know, but I, you know, I wanted to… I wanted to experience other things. So I— I do… every now and then I’ll get a mobile home, but mainly single-family residence. And then as well, I invented a— or invented… I created a— a digital and online tool for sellers, buyers, you know, to list and sell their homes. We— it’s— it’s a great site. It’s an AI assistant site— creates a website for you, it does all kinds of automated communications, and it targets consumers directly. So when you list your home as an agent, as a private seller, whatever, investor, developer, it finds the clients for you and targets them directly for marketing. So that’s the quick, in a nutshell version.

Scott Bursey (04:30)
Thanks for sharing that background with us, Eric. It’s always fascinating to see how far you’ve come since 2007. And what really caught my attention about you was the way you’ve been able to seamlessly integrate property management with high-level investment strategy. You know, how did that transition help you build the long-term wealth?

Eric Stalter (04:53)
From my old career into real estate?

Scott Bursey (04:56)
Yes. Yes.

Eric Stalter (04:57)
Baptism by fire, right? I— I, you know, I sold my business, and— and I’m driving around… I was consulting for the business that I sold, and I was doing that for a couple hours a day, so I had time. So I was driving around and I saw a mobile home, believe it or not, for sale. And I would pass this thing almost every day on the way to the shop. And one day, the sign was gone. And so I had this crazy idea, “Well, why is the sign gone? I’m just gonna go look.” I remembered the space number, and I went in and there was a sign on the window for sale. And so, you know, the park manager comes over and she was just this bitter old lady. She’s just mean old lady. And she comes over and I’m kind of looking at it, and she says, “What are you doing here?” And I said, “Well, I’m just looking at this for sale.” She says, “You’ll never be able to buy that. You won’t get approved to live here.” I said, “Okay.”

So I called the sign, you know, being my sort of anti-authoritarian nature. I called the phone number on the sign, the girl came over and she says, “How much?” I said, “How much do you want?” She said, “$700.” I told her, “Sold. I’ll buy it.” $700. She said, “Well, you need park approval.” I said, “For $700, I’ll take a risk on park approval.” We talked about that— that’s calculated risk. So I said, “For $700, I’ll take the risk.” I bought it, went in, fought for the next two weeks with the park manager about approval. I told her, “Look, I own it. I’m going to rehab it and I’m going to sell it. You do whatever you want to do. Start the eviction process, do what you need to do, but I’m flipping this place.”

Turns out I— I sold several in that park as well as many others. I’ve got parks that I— I sold upwards of twenty-five to thirty percent of their inventory, increasing the owner’s bottom line. So I was able to build really good relationships with park owners, and they started seeing into my way of thinking, which actually supported their way of thinking when it came to tenant removal, you know, evictions and such, because we tied our contracts into theirs. So whenever it came to an eviction, you had two contracts showing proof that they failed. So it was kind of a nice setup. And again, I— I— I completely forget where I was going with that. I get to rambling and— and— and I lose my train of thought.

So that’s how I got into it— was flipping those. And then— and then I graduated to houses. My— my daughter’s in the service, so we had this idea that, “Hey, let’s— let’s buy some houses.” She was in Nebraska at the time and I was out visiting her, and we didn’t have plans for that day. We hadn’t made plans. She said, “Dad, what do you want to do today?” And I said, “Let’s go buy a house.” So her and I went out and we bought our first… that’s a true story, Scott. We went out and we bought our first rental, my daughter and I together. And so from there, we had a— we had a couple in Nebraska. When she was transferred to Georgia, we sold off Nebraska, we bought in Georgia, and we bought and sold, I think, in the— in the three years they were in Georgia, I think we bought and sold about a dozen homes, and we still have four of them today.

Scott Bursey (08:27)
That’s an incredible path. Thank you for sharing that. And Eric, curious to know: regarding your strengths as a broker, what is the biggest asset you leverage when acquiring new investment properties?

Eric Stalter (08:40)
Okay, well, I— I have what— what we’ve dubbed the Conley Method. So we bought a house in— in Georgia several years ago. We had— we had three at the time, two or three, and we bought another one. It was a for-sale-by-owner. Great deal, great seller, bought it at the right price. He knew what he had, we knew what he had. It worked out perfect. I mean, we bought it, we rehabbed it, we put a renter in it. A year later, the market had improved. Now, this is all based on market improvement, so if the market sucks, this isn’t gonna work as good. But based on market improvement, or if you buy it right, right? But based on the market improvement, we sold Conley and then paid off another house, and we still had a little left over to go and purchase another house.

So we sold Conley and replaced it, and then took the— the excess, paid off one of our existing, and purchased another. Sold Conley, replaced it, paid off another. And so that’s how… that’s what I like, because what that does is it keeps inventory in your portfolio. And I understand the conversations about leverage— I get it. But when you’re collecting the difference of, you know, say an eleven-hundred-dollar house payment on a fifteen-hundred-dollar rent, well, minus costs and fees, you’re pulling in, you know, 150 bucks. But when you’re collecting fifteen hundred dollars of rent on that house, you’re pulling in $1,350 every month. So I understand the movement of money and all that stuff— it’s not my strong suit, you know, moving money around, but that’s what it is. And so the Conley Method to me is a great way of building security, especially for somebody like myself at 57 years old who wants to have a nice nest egg when I get older. So that’s really kind of the reason I like the Conley Method, because it— it— it encourages the flipping process, it forces you to look into the deal a lot stricter, and then it allows you to build a— a future nest egg.

Scott Bursey (11:09)
Eric, looking back at your early days, going all the way back to 2007, what was one blind spot in your business model that you had to fix quickly?

Eric Stalter (11:21)
Gosh, blind spots… communication is the largest blind spot, I think, with any transaction. Personalities get in the way, especially when you’re dealing like with partners or, you know, one person wants to do one thing, the other doesn’t think it’s a good idea. You concede to things you— you probably should have stood up for. You know, dealing with agents, understanding what their motivation is— are they working for the buyer and the seller, or are they working just, you know… whatever the case is, communication I think is— is, and I know you probably weren’t expecting that answer. You’re probably expecting something like, you know, turning a one-bedroom into a two-bedroom, or a two-bathroom, you know, one-bathroom into a two-bathroom. But I really think communication through the process— clear and concise communication— is— is really a tool for success.

Scott Bursey (12:16)
What has been the most effective way that you’ve enhanced the communication throughout all your years of doing business?

Eric Stalter (12:23)
Well, I guess that’s a question you’d want to ask other people. They may have a different answer than I do. I personally like to work hard at— at just being very, very direct. And— and I try to… the one thing I do daily and I fail at daily is— is to show grace. You know, when I’m— when I’m working with somebody, regardless of who they are, I have to try to show grace, and I fail at that regularly. So I would say, with regard to communication, yeah, that’s probably— that’s probably the thing I need to work on most, is showing my grace in it, instead of just being so… I’m a very clinical person, I don’t— I don’t get emotionally attached to things, so, you know.

Scott Bursey (13:11)
Well, thank you for expanding on that, Eric. And curious, if you could speak to the opportunities you see right now, where are you currently pouring your fuel within the residential sales space?

Eric Stalter (13:22)
So I’m in a— I’m in a transition right now, and a very exciting one. Currently, as I said, it’s all single family. I went from mobile homes to single family. I’m really looking… I’m really looking into multifamily and commercial. And also I’m looking into RV parks and campgrounds. I’m— I’m not… I haven’t made a decision on that yet, Scott, but that’s something I’ve been looking into. I think it’s an income generator, but my research hasn’t convinced me yet that— that an absentee owner-operator is the best fit for that, I don’t know. But I’m looking into that because it seems like a pretty good model, especially when you can, let’s say, you buy a, you know, an eleven-acre parcel, and only two of it has campgrounds on it. I mean, there’s an opportunity— not many of them. You know, it’s not like there’s 50 million campgrounds across the United States, so there’s a limited opportunity, but I think it’s a good one.

And I think that number’s gonna keep going. We talked earlier about the real estate trends. I think, you know, you’re seeing a lot more younger people not buying, you’re seeing a whole lot more of the tiny home trends— which, who knows how long that’s gonna last— and you’re seeing a lot more traveling. So the traveling industry has skyrocketed, which what used to be, ten years ago, a forty-billion-dollar industry, is now at least doubled, I don’t know what it is. But owning campgrounds and— and RV parks, I think… I don’t know, Scott. Again, I haven’t looked into it, it just interests me.

Scott Bursey (15:36)
What is one external factor in the market today that keeps you up at night, and how are you hedging against it, Eric?

Eric Stalter (15:44)
One external factor: government. Government is the external factor. Government, in my view, is— is the game player in all of what we do. Government can— can make us or break us in, you know, policy, in, you know, authoritarianism, whatever, you know, wherever you are when it comes to government. Government is constantly driving a wedge between us and our success, and we have to constantly be working around that. They also leave in loopholes for us when they do this, because they’re not the brightest bulbs in the box, so they— so they’ll often leave us with— with a way out. But, you know, government is a— is a— is a problem.

Scott Bursey (16:29)
Do you think that there’s a lot of brokers that are overlooking that aspect of things that you highlighted for us?

Eric Stalter (16:35)
I do. I— I think, look, and I’m not here to like say broker bad— I’m not here at all to say that. I think as an industry… I am an agent, I am a broker, so I feel like I have the right to speak on this. I’m not bashing anybody. I feel like we have… you know, my son-in-law, he works with me, and he got out of the Air Force and— and jumped right into this with me. And I tell him all the time, you know, you know now more than 98% of the agents that you’re working with, and that’s the truth. As an agent, we focus on the sales side. And a lot of times, again, it’s an emotional transaction. We’re— we’re seeing, you know, 500,000, that brings us 30,000 in commission, or 25 if you’ve negotiated your commission. Know so I get 12,500 and then I gotta split that with my broker, so I’m gonna get, you know, 9,000.

And so that conversation is going on in our heads all the time, when in fact, we’re— we’re forgetting what is really the case here. We’ve got a fiduciary duty to sell a home and bring that seller the highest amount we can possibly bring them for that home, and the same duty to the buyer to make sure they get the best deal that they can possibly get for that home. So I think we forget a lot about the nature of, number one, what they’re buying the home for. If I’m looking for a home for an investor, I’m not seeking full pop. I’m not… I’m not looking for a home that’s, you know… I’m looking for something they can buy. If I’m seeking it for an end-time young family, I want something that, you know, you know, the husband or— or the wife, you know, they’re not going to work and then coming home and doing a bunch of repairs that they didn’t sign up for.

So I think we have to really educate ourselves on the client that we’re working with, on the nature of the business, as we talked about, you know, the laws that surround this business. I mean, I’ve been in bad deals. I sold a piece of land out in the middle of nowhere that went through three sales previously— three, all on the same terms. On our sale, the lot was actually half what was fenced. The water meter had been put in the wrong spot, title had missed it on three transactions, and then finally caught it in our transaction. I could have had all the experience in the world, and I lost on that deal, even as a… you know, but as an agent, these are the things I have to make sure that I’m trying to do. And I failed at that. But these are the things that I have to make sure to do. When I get a listing, I have to know that property like it’s mine. So I know I kinda ramble.

Scott Bursey (19:16)
Eric, turning to trends, what is one shift you’re seeing in buyer behavior that no one is talking about?

Eric Stalter (19:25)
Man, you got good questions. Buyers are not as available as they used to be. Young buyers, you know, a lot of them are staying home with mom and dad— you’re seeing more multi-generational living arrangements. The buyers themselves… I don’t know that when it comes to the buyers themselves that much has changed in— in buyer behavior. But as far as trends are concerned, you know, it’s— it’s definitely… the trends are changing for sure. And I don’t, you know, I don’t know, Scott. You know, you listen to the pundits, and one guy says, “This is the way the market’s going,” and then you flip the channel, and the other pundit says the exact opposite. So do we really know what’s happening? I mean, we could look back in history and probably get a pretty good guess. But even through the COVID stuff, I mean, we thought— we thought we were gonna have some sort of crash. Never happened. And buyers got crazy during COVID— they bought everything up.

Scott Bursey (20:31)
Good point. Good point, Eric. And Eric, if somebody’s listening and they’re thinking to themselves, “Hey, this is somebody that I really like and would like to potentially do business with,” what would you like them to know first about your operation?

Eric Stalter (20:46)
We are a business-friendly operation. I love working with people. If— if I do, I mean, if we can all get in a room together and— and figure out a way for us all to leave and be happy and rich, that would be the greatest thing ever. I really like to work with people, helping them find, you know, the deal that works for them. First-time investors is fun. I’ve actually been setting up… another great question, Scott. I’ve been working very seriously at sort of shifting my agent-side business, because I love the investing, I love all of… I love real estate, but I’ve been thinking very seriously about shifting my agent-side business, because of exactly the things that you’re talking about, into a consultation-based business as opposed to a fee-for-service commission-structured business when I sell your house or buy you a house.

And the reason I want to do that is because I want to— I want to participate in people’s success. I want to see them learn the business, grow in the business. And with my limited knowledge… I’m no guru, I’m no expert, but I have enough knowledge in the business to where I can— I can help my clients make money. I just sold a house here recently down the street. I sold it to the man 15 years ago for 180,000, we just sold it for 500 and 600,000. So he, you know, he walked away with several hundred thousand dollars, and sent me a nice review and— and sent me a letter that said, “You know, I’ve… everything I know, I’ve learned from you. And so I’m gonna take this and— and do more.” And he is doing more. So for me, that’s a win. I want to be able to work with people and— and work with them through their success journey. And look, buying investments out of state… big, big undertaking, but it’s doable. And you know, it opens the market for all of us, especially with this digital world. And one good relationship from across the country means money for both people that are willing to participate in that.

Scott Bursey (22:50)
Eric, if you could take us down the path, what does your professional network look like right now?

Eric Stalter (22:56)
I have a— a really good one. I have agents… really good, we’re really established well in Georgia. Got some connections in— in that… in the states in that area, but Georgia’s where I really like. I just do. I— not to live, not to live, but I love investing in Georgia. It’s… I— I would actually like to live there, too, but it’s just way too humid for me. But it’s— it’s… now again, again, I s— I scrapped on the question. You asked me my— my circle.

Scott Bursey (23:28)
Your professional network, yes. So—

Eric Stalter (23:30)
So I’ve built really good relationships. We have built really good relationships with agents in that market and other surrounding markets, developers. I— I’m looking into the— the, you know, some areas in Mississippi, Alabama, Arkansas. I’m actually headed out next week to— to go look at some of that, you know, and build more. But we’ve… yeah, we’ve— we’ve got a really good network of people. Hard to find good contractors in areas ’cause the good ones are so busy, you know.

Scott Bursey (24:04)
When it comes to relationships and, you know, building up people like you do, you like to— to see people succeed. What has made the biggest difference for you?

Eric Stalter (24:16)
The biggest difference for me, barring all of its difficulties and family, you know, struggles when you work with family… the biggest reward for me is seeing my son-in-law grow in his knowledge of the business, grow in his ability to manage the business. Because, you know, I— I want to see my daughter have… have a good, you know, and my son-in-law and their children. That’s been— that’s been a big thing for me. Hasn’t been easy— working with family is very, very difficult— but to see that growth, it’s been— it’s been very cool, because I got… I got a— a cheap 30,000-foot view of— of his growth, you know, coming out of the service and— and you know, in your… when you come out of the service and you’re, you know, you’re mid to late 20s or 30s, you know, it’s a different world that we live in. And so he had to completely acclimate, and— and he did well. So that’s been a— that’s been a big thing for me.

Scott Bursey (25:22)
Eric, if you had to start your entire portfolio over today with, let’s say, zero liquid cash, but all your current knowledge that you have, what is the first move you’d make to get back to where you are today?

Eric Stalter (25:36)
That is… man, I love your questions. I would go right back to the mobile home flipping, and I would— I would fill in the gaps as I went. I would make… I— I said before I’m clinical. I— I’m not very emotional, but I— I am subject to making emotional mistakes, and— and I’ve made many of them. But I would go back to the mobile homes, because look, when you’re talking about other people’s money, a mobile home is a really easy sell. You’re not talking about a half-million dollars— you know, you’re talking in today’s market, 60.

And you… I had a great deal with my dad, actually. I just had a standing deal where I just paid him 11% interest. Boom. I’d borrow the money, pay him 11% interest, borrow the money. People say, “11%?” Yeah, for two months. Big deal, you know? So I would really go back, I would establish it, I would set it in its place, I would automate it, oversee it, and then I would advance. I wouldn’t scrap it and advance. So in hindsight, I would… I would build and stay, build and stay, build and stay.

Scott Bursey (26:49)
Eric, thank you for that. And for those of our listeners that would like to keep this conversation moving, stay in your lane, or collaborate with you on future deals, what’s the best way for them to plug into your pipeline and reach you directly?

Eric Stalter (27:03)
They can reach me on my cell phone directly— I don’t care. I’ve run for public office, so everybody has it, so it doesn’t matter. It’s 909-557-6102— that’s my direct cell. And then my email, you can email me at [email protected]— that’s the number one, so 1-P-L-U-S-R-G at gmail dot com.

Scott Bursey (27:34)
Eric, thank you for joining us today on the Real Estate Pros podcast. This has been phenomenal.

Eric Stalter (27:39)
Thank you, Scott. I— I really appreciate you.

Scott Bursey (27:41)
And to our listeners, we appreciate you. If you receive value from today’s episode, please subscribe. We’ll be filling your tanks with a lineup of elite guests, just like Eric Stalter, who are accelerating and setting the pace for the rest of the industry. Until next time, keep your standards high and your vision clear. We’ll see you on the next episode, everyone.