Posted by Natalie on February 01, 2000 at 11:26:54:
Annick,
I was reading somewhere once that if you can find a seller who’s really motivated - and wants to get rid of a mh for good…sometimes all they want is for you to take over payments…If you can find one like that…then resell it…you can make enough money on that first deal to help you in your second deal.
Hey all you experts out there…especially Lonnie - am I right here? I got this from a course I read, but of course it’s subject to argument…
I bought Lonnie’s book and I can see the potential in mobile homes. The problem is I do not have the 2 or 3k necessary to buy the first mobile home. I am a foreigner, meaning that I dont’ have family nearby to lend me money (they could not even afford it). How do you convince the seller (most of the time they want fast cash) to give you option consideration; in the meanwhile you can advertise the home and sell it for a profit. Is it realistic? If I could do one or two deals this way, I would build enough cash to pay for other mh.
And on a last note, my credit is blemished and does not allow me to use credit cards
Dirk had an idea about a week ago. He says you can tie up the MH (by putting a small deposit); then even before you buy go out and start marketing the MH. Your downpayment can then go to the seller and you will have the monthly payments.
Or, you can offer to pay the seller payments which are less than the payments you’re receiving from your new owner.
Posted by Tony-VA on February 01, 2000 at 14:55:51:
You may want to find a partner for the first deal. Find someone who wants to get huge yields on $4000. (That gives you some cushion for holding costs). You do the work, they put up the money and you split the proceeds 50/50.
On future deals you can simply borrow the $4000 from them say at 15-20% and you do all the work, but keep more of the profit. Before long you will have enough to do your own deals.
As for taking over the payments. I would caution you on this. I would encourage you to stick to the typical lonnie deal for now. With a lonnie deal you already have the manuscript on what to do and what not to do. When you start taking over payments, you are taking on a lot of debt, and typically the home is not worth what is owed on it. Too much room for error on these deals, especially on the first deal. Yes, I am sure someone has made money on these deals somehow, but for now, err on the side of caution and stick with Lonnie.
Your best bet to find an investor such as I have mentioned is by attending the Convention (it can’t be to far from you). You will hear lonnie speak in person and get to ask him these questions in person. You will also hear other speakers explain their different means of investing. These ideas may very well spark an idea for you. Other investors that attend these conventions would be happy to make 20% yield without any management headaches. You never know until you ask! I can testify that the information you receive at this convention will pay for the convention in the very first deal. It did for me last year.