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.
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.