Posted by Tony-VA on November 12, 2000 at 04:31:47:
Deals like these happen every day. Lonnie dealers are able to buy at wholesale prices because we have CASH in hand and have been able to locate MOTIVATED SELLERS. We are able to sell for $10,000 because we are selling on terms that the buyer can afford. We are selling homes to people who do not have the $2500 cash to buy a home but have the ability to make reasonable monthly payments. They may have poor credit so banks won’t finance them. We are able to take the risk on them because we believe they can make reasonable payments and we only have $2500- their down payment left in the deal.
It does seem hard to conceive that we can buy so low for cash and sell so high on terms but that is how business is done. Buy wholesale, sell for retail. The retail price would certaily be lower if someone came up with all cash. But since they are not paying all cash, we are able to negotiate a higher price.
The beauty of this is that everyone still wins. The seller who could not sell their home got cash and could finally move without fear of judgments for back lot rent. Our buyers are happy because they are able to BUY a home for less than they could RENT. They will own this home in 3 to 4 years. We Win by solving the problem and making our money on the spread and interest.
Remember, CASH and MOTIVATED SELLERS are the key to business.
Lonnie’s book “Deals On Wheels” explains exactly how to do this. The book runs about $30 here at this site. With deals like the one above, do you think a $30 investment might be worth it?