Posted by Steve-WA on April 11, 2007 at 24:03:00:
it comes across as: (smirk), yeah, bet they sure make a killing selling us books and seminars
snide and with ill will
if i’m wrong, dont get on me, look at what you write, and figger out why I think that
amen.
A skeptic on board… get rich yea right!! - Posted by Cody
Posted by Cody on April 09, 2007 at 01:13:05:
I read the three books on buying and selling mobile
homes. In summary I learned you can make tons of
money, earning 75% to 100% return on your money,
become financial free, quit your job, get a check in
the mailbox every day, you know the routine.
Well based on the numbers this would be excellent
part time income generator. Doing this full time
I have my doubts you will ever go beyond a five figure
income. Decent income yes, very high income doubtfull.
I will run the numbers and prove it to you. Assume
you purchase a mobile home for $5,000 and sell it
for 10,000. You take $1,000 down and finance $9,000.00
for 36 months at 12%. Your return would be $299.00
X 36 = $10,764 minus an estimated overhead of 25%
or $2,691.00 minus your initial $4000.00
= $4,073.00 net.
I estimated overhead at 25%, which would include
liability insurance, evictions, damages and repairs
to mobile home you take back, lot rents you have to
pay the pm, your car expenses, advertising and
the interest 7% on your borrowed $4,000 to fund the
investment.
(If you full time mobile home guys dispute this expense
I would love to see what you put down on your
IRS tax returns)
If you did 18 deals per year you would make
$4,073 X 18 = $73,314. However after the second
year with 36 mobile home contracts or third year
of 54 contracts to maintain the $73,314 year income,
the move outs, evictions, slow pay, and host of
other problems due to the nature of this business
would be more than a full time job and would limit
your ability to increae your earnings.
If you can show figures otherwise I would be
happy to hear about them.
I really doubt this mobile home investing will
make you financial free, good part time business
yes, full time no.
Cody
Run the numbers before you quit college and
become a full time mobile home dealer.
Re: A skeptic on board… get rich yea right!! - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on April 18, 2007 at 19:04:42:
Boy, you stirred the pot. I own a lot of rentals because I actually like owning them, so I don’t care what you think about Lonnie deals. It sounds like you are very interested in how to get rich. I am personally very interested in what other ways that you have found to get rich? I am always open to new ideas.
Best investing, Chris
Mobile Homes - Posted by Tim (NC)
Posted by Tim (NC) on April 12, 2007 at 06:28:33:
Cody,
I agree that investing your money in Mobile Homes will not make you rich and would like to hear an alternate strategy.
I’ve already gotten a traditional education, I have a master’s degree in engineering and I currently work a full time job. I recently discussed my performance with my boss and was delighted to hear that he was impressed with my attention to detail and work ethic however I was less than satisfied to learn that I would receive a 3% increase in pay next year. Last year folks in my group that weren’t laid off got 0%. Each year I work my job, I am convinced that as long as I work for someone else, I will earn less than I’m worth. I recently broke the 6 figure barrier but am just able to keep up with bills.
A few years ago, I was convinced that buying stocks was a good way to build wealth. I reaserched companies, studied balance sheets, calculated ratios, reviewed charts and repeatedly bought just as the price was peaking. Might as well get a monkey to throw poo at the S&P 500 listing.
Real Estate could be a good way to make money but what’s a guy with $5K going to do? Buy & Hold? But its hard to get a stick built to generate a positive cash flow. Might be able to flip but with down payment, closing costs, and rehab I’ll need more money quickly.
I’m considering standing on a busy corner with my cardboard sign that reads
“Two kids in college.
NEED MONEY!
Please Help”
Any other suggestions you can offer would be greatly appreciated.
Tim
THANK YOU ALL!!! - Posted by Ed in Idaho
Posted by Ed in Idaho on April 12, 2007 at 01:30:30:
Now I’m sure I’m in the right place! I was really going to thank Cody for letting me know that my new way of thinking was not the norm and that the sky really is falling, but instead I THANK EVERYONE HERE (including Cody) for their passion, giving, teaching, listening, and criticism. I do need to point out that college grad Cody left out the $1,000 down payment you get that makes your return double in less than three years which is even more phenominal. Unheard of in most circles, unless your “RICH”. His whole statement was about getting rich but didn’t define what rich is. There are infinite degrees of rich. What is your definition of rich Cody? It must be related to money. Could you make $1,000,000 cash doing ‘Lonnie Deals’? Absolutely! $10,000,000? Absolutely! $1,000,000,000? Sure if you had enough time or used enough of other peoples time to do it for you!
Rich people are highly diversified in many areas, and so are and shall be many of the people here. But first you need to become financually independent! Which is what this is really about. Then you will have the time to become “RICH” if you so choose. I think most people’s goals and dreams change when you start taking debt, job, lack of time, two-dimentional thinking, etc etc out of the equation. I’m sure many of you ‘mentors’ here never thought you would be doing what you are doing when you first started doing this thing that blah, blah,blah… I could write a whole book about this c&@p! Hmmm… Nevermind! I just mostly want to thank everyone here (and in this whole web site) for the inspiration, energy and giving that is coming to me. It seems I am having an Epiphany every other day! Oops, is that naughty? It sure feels good! Hope to be around for a while! THANK YOU ALL!!!
Re: A skeptic on board… get rich yea right!! - Posted by John B
Posted by John B on April 11, 2007 at 21:45:56:
I have read several of the post about this subuject matter and just though I would throw in my two cents worth.
Cody
It seems quite clear that you grew up in the lap of luxery compared to me, and I for one am glad to hear that you have conquered if not perhaps cornered the investment world, maybe someday while you are burning some of that massive free time that you have you could take a minute and write a book about HOW TO DO IT that would help hundreds if not thousands of people become more finanially secure than they ever believed possible and offer this book at an affordable price.
I for one find your claims unbelievable and phony, mostly because you have wondered onto this board which tells me you were looking for help, probably financial help.
The good news is you have come to the right place, the people here are very helpful and there is a lot more people in this investment group than you have in yours, many making as much or more money than you.
I for one am happy with my MEAGER monthly income, it comes in the mail every month, I could take a 4 years vacation, and when I returned I would still be getting about the same amount of money that I get now, how about you! The members of this board are a credit to man kind, how about you!
I dont know what is troubling you but if you would just simply tone it down and try to express your problems then maybe someone here WILL help you.
GOOD LUCK
Remember to tell your dad you love him!
You’ve nearly convinced me to leave the business! - Posted by Dan (Michigan)
Posted by Dan (Michigan) on April 10, 2007 at 14:37:44:
My business partner and I own a portfolio containing 54 Lonnie Notes and 3 land/home deals that produce approximately $13,000 in monthly cash flow.
Your predictions of doom and gloom related to mobile home investing terrorizes me to the point that I’m seriously considering selling off the portfolio. But before I do can you give me some advice on where and how I might accomplish the same results while working a full time job?
Regards,
Dan Paton
EZ Homes
Also> - Posted by Jobe
Posted by Jobe on April 10, 2007 at 07:02:05:
You buy a home fix it up and sell it Lonnie style and then you get the home back 6 months form now owing 3 months rent. The house is trashed (holes in walls, broken windows, carpet ripped up, the new appliances you put in are also gone.) Hard to make money this way and it does happen people here just dont want you to know that it has happened to them. The only way to make money with these is if you own the park and have total control over the home and resident.
I will lighten your burden! - Posted by Don-NY
Posted by Don-NY on April 10, 2007 at 06:22:20:
Cody,
I too have read Lonnie’s Books. I do not recall Lonnie ever stating you can “get rich” investing in mobile homes. Financial independence is having the means to live without punching a clock. That is a whole different animal than rich. You mention in your first paragraph that those books said “become financial free” not anything about getting rich quick. I did a quick calculation in my head and my MHs take about 1 hour a month each to manage. So, to lighten your burden I will BUY those books from you full retail! (Even though I already have them) E mail me and lets put this bad investment behind you. Don-NY
You have me convinced. - Posted by wayne-OR
Posted by wayne-OR on April 09, 2007 at 19:09:25:
You have me convinced. I should save my money from manufactured homes…
In fact when I went up and ordered business cards today I took your advice to heart. Instead of getting the 250 deal for 30 dollars I did the 1000 deal for 42 dollars.
Whew just think if I didnt run across your post…I could have potentially paid up to 120 dollars for 1000 business cards…
Thank you for help, It’s much appreciated.
Re: only 4 things needed. - Posted by will(wa)
Posted by will(wa) on April 09, 2007 at 18:03:58:
Hi Cody,
IMHO There are only 4 things that you have to have to become weathly regardless of what business you start or currently do.
They are:
With those 4 you can become as wealthy as you want. It has nothing to do with what the object that you sell.
This is a closed system. If you have a short suppply of any 1 or more of the above 4 items, the others will have to compensate.
All of Lonnie’s books help you to understand number 3. If you prefer there are many other places you can learn this same information, it will just cost more.
For what it’s worth this is just my .02.
Will
Re: A skeptic on board… get rich yea right!! - Posted by mike Barlow
Posted by mike Barlow on April 09, 2007 at 17:56:32:
Cody my friend.
Are you with the IRS? Is this a trick?
You ask others to share their incomes with you how about you sharing
with us what you do now for a living and your current income?
Re: A skeptic on board… get rich yea right!! - Posted by Don(Tn)
Posted by Don(Tn) on April 09, 2007 at 15:50:40:
I bet that Lonnie has made more money selling books than he has from selling trailers.
Re: A skeptic on board… get rich yea right!! - Posted by mike/nc
Posted by mike/nc on April 09, 2007 at 10:39:02:
Cody, The county I live in, Wilson,nc, the average income for a male is about $31,000 and female is about $23,000.So at an income of $73,314 you would already be makeing twice the income of the average person in my county. Not bad for a part time job. And being self employed is ofcourse priceless. I think for most of the folks on here lonnie deals are just a means to an end. Which is to get out of a job. Then most switch to a more passive type income. Such as renting land/homes or stick builts that you dont have to replace constantly.
Re: A skeptic on board… get rich yea right!! - Posted by Michael(KCMO)
Posted by Michael(KCMO) on April 09, 2007 at 09:17:52:
I don’t know if your numbers are right or not. To be honest, I only skimmed through that part of your post. All I know is that I quit my job, am doing mh’s full(part?)-time, have the freedom to schedule my day as I please, and have a clear-cut path in mind for further future financial growth and independence.
It’s almost 9:30 on a Monday morning. After a leisurely morning breakfast with my daughter, I’m spending my time alternatively piddling here on the computer and reading her stories.
I don’t know about your numbers, but I know all I need to know.
Regards,
Michael(KCMO)
Chime In - Posted by Berno
Posted by Berno on April 09, 2007 at 08:48:46:
“I read the three books on buying and selling mobile
homes.”
I’m assuming that you meant Lonnie’s books? If that is not correct, please let us know which ones you are refering to so people know what you have read and can post better responses.
If you need proof of MoHo investing actually working, attend Scott and Tony’s bootcamp in August. You will be able to talk to MANY people that have made it work.
Take care.
-Berno
Nice couch! - Posted by JeffB (MI)
Posted by JeffB (MI) on April 09, 2007 at 07:57:12:
There are so many holes in your argument I don’t know where to begin.
Let’s assume your 25% overhead figure is correct. I can’t dispute that because I haven’t calculated my overhead cost as a percentage of revenue, only in dollar terms. Much of that overhead expense is fixed, not variable, so the more deals you do you should see that percentage fall over time. Because you seem to be highly intelligent, there’s no need for me to explain this part further.
Second, your example of a $5k deal that you sell for $10k is not typical, at least not in my market. I’m buying for $2500 and selling for $10k. I rarely do deals where I don’t have all my money back in the first year. Run your numbers again using these figures and see what you come up with.
Third, 18 deals a year is nothing to sneeze at, but on a full time basis you ought to be able to do MUCH more than this once you get your system down. I think that number can conservatively be doubled, if you’re serious and willing to work at it.
Lastly, if you believe it doesn’t work, you’re right. If you believe that you will never be financially free by doing these deals, you’re right again. Nobody is advocating that people quit college and start doing trailer deals. I really don’t understand the point of your post. Who are you trying to convince that this doesn’t work? Certainly not the people here already DOING IT and making a full time go of it.
Stay on that couch, and enjoy the view watching the rest of us take the path less traveled, that leads to financial freedom. Because with your negative mindset, you’re chances for success are very, very limited.
Jeff
PITIFUL - Posted by TT
Posted by TT on April 12, 2007 at 07:14:39:
Tim,
You are old enough to have college age kids, and you have a 6 figure salary, but only $5,000 saved? That is so sad.
Here is your “alternate strategy”-
The key to your getting rich is LIVING BELOW YOUR MEANS. That is the first step. You would be wasting your time with mobile homes or any other investment strategy unless you change your habits.
After that Mobile home investing can make you rich but not overnight. It is compounding of the profits in any endeavor you chose that will in time set you free.
TT
Re: THANK YOU ALL!!! - Posted by Michael(KCMO)
Posted by Michael(KCMO) on April 12, 2007 at 08:54:03:
“I’m sure many of you ‘mentors’ here never thought you would be doing what you are doing when you first started doing this // It seems I am having an Epiphany every other day!”
There you go, Ed. You’ve hit the nail on the head. This is a great money-making business, but it’s much more than that. I couldn’t begin to tell you all the things I’ve learned or the areas in which I’ve grown by being part of such a great network of people.
As with most things in life, money is only one measuring stick among many.
Regards,
Michael(KCMO)
Re: You’ve nearly convinced me to leave the biz - Posted by rachel
Posted by rachel on April 10, 2007 at 19:35:40:
Hi Dan,
I read your post. I’ve been in the mobile home biz for the past 2
months. Still looking for my first deal. From your experience, what has
been the best source of leads for you?
Thanks for your help!
-Rachel