Posted by Dirk Roach on December 29, 2000 at 12:01:22:
Hey Karl out here in the land of micro chips and sunshine (sorry folks I had to rub it in, it’s like 72 degrees today) RTFM is quite a a common statement, esp. in programing lingo, must be an engineer thing too.
Dirk’
1st Deal Good or Bad? Help? - Posted by Todd
Posted by Todd on December 28, 2000 at 19:12:40:
I don’t have enough money to buy a MH for cash but I can get a loan and afford the downpayment. Then I would raise the price 25% and sell land contract or owner financing. Will the bank let me do this? Is this a good deal or can it be better?
Re: 1st Deal Good or Bad? Help? - Posted by David Alexander
Posted by David Alexander on December 29, 2000 at 21:32:03:
My advice is a little different than Karl’s… although I agree you need to get Lonnies books worth every penny and will help change your life.
First off when you buy an el cheapo MH buy one that you can mark up a minimum of double and if you can triple.
One way to do a deal is to get a loan secured by one Mh and use the cash to buy 2 or 3.
Example:
Find say 3 deals for around 3k cash and then put a loan on one of them. Sell the the MH’s for say 11k or so with a grand down. Borrow 9k against the first one and then create a cashflow of around 600-700 a month, if your really savy and the money doesnt dissapear use the remaining 3k to buy another, and you’ll have somewhere around 800-900 month coming in.
You should have created about 40k in Notes… the next step is too either direct the cashflow at the loan to pay it off quickly, a little less than a year at which time you will ahve free and clear cashflow… or sell your notes discounted probably in the 50% range… and gain out to 20k, use the 20k to start all over.
David Alexander
RTFM - Posted by Karl (OH)
Posted by Karl (OH) on December 29, 2000 at 11:50:50:
This deal you describe stinks. Stop trying to re-invent the wheel. You’ve been given the advice several times now in previous posts to buy Deals on Wheels. You need to take this first step in order to have any idea what you’re doing. Most of your questions will be answered in detail in this one little book, including how to buy mobile homes when you have no money.
Most of us here got started in this business by listening to the advice of other investors. You’ve already been given the advice you need. Order the book, read it a couple times, start to apply what you’ve learned, then ask questions here. We’ll be happy to help you after you’ve properly educated yourself.
Karl Kleiner
MBH notes - Posted by george from raleigh
Posted by george from raleigh on January 13, 2001 at 20:08:41:
David-
As a newly fired up reader of Lonnie’s “Deals on wheels” I have a ton of questions. One of them is, what kind of discount do you have to give on a note to sell it to the typical MH note purchaser? Is it a function of the interest yielded, the term, or what? Say you created a note at the sale of your MH for $3000, term 36 months, that you wrote at $105 per mo @ 15.68%. To turn around and sell the note, what would an investor want? If he demands a discount to 55% ($1,650.00)that would yield almost 65%. As Lonnie would say, good enough! (For the note buyer!) But is that good enough for me, to pay my taxes, make a dollar or two for my time and expenses and then have the money to go do it again? I’m just wondering.
george