Posted by jowns on September 10, 2004 at 20:06:04:
do all i possibly could to get the money. But thats not the important thing. Most important if i could not come up with the money on this deal i would start saving for the next deal.
Attention MH Work Shop Attendees - Posted by Lonnie
Posted by Lonnie on September 09, 2004 at 10:26:28:
Hi Folks,
It?s only a about 3 weeks until the mobile home workshop, and I need some input from some of you who will be attending. In order to make this workshop as beneficial as possible for you, it would help to know your level of experience in the MH biz. So, how about some input.
I normally begin the class with some basic buy/sell examples and proceed from there. I?ll cover as much as time allows, but I want to cover the topics that are most beneficial to you. So let me know what you want.
If you?re not familiar with using a financial calculator, I recommend you buy one and learn the basics. One of the $30 (HP10B, or TI BA 35) will do fine. We probably won?t time have to cover calculator lessons, but if you?re having trouble with the calculator, (or have other questions not covered in class) Terry, Ray & I will be around all weekend, just look us up. We want you to be able go home and DO A DEAL!
In my opinion, one of the most important topics, and my favorite, is notes. So I plan on spending some time going over some of the good things you can do with notes?how to create, buy, sell, trade, discounting, etc. So, even though the basics of this class will be about buying and selling MH?s, I want to point out that it?s really about FINANCING and how to create cash flow by obligating other people to send you checks every month. And these same concepts and techniques will apply to any thing you want to create a note on, and accept as collateral. I?ll show you how to create your own ATM machine and put your mail carrier to work delivering checks.
Did you ever wonder why Sears, J C Penny, and all the other businesses are always trying to get you to put that purchase on their charge card? Because they make more on the financing, than on the product. So why not learn, and start doing, what the big boys are doing? Once you learn and understand how financing and money really works, you will understand why making money can be easy, and doesn?t require a JOB. That?s what Terry, Ray and I will spend 3 days teaching you how to do. There?s an old saying??If you don?t learn how money works, you will spend your life working for people who do?. If you have any doubts, just ask an old person who spent their life working a job, and are now trying to live on a Social Security check, or a small pension.
Here?s a little pre-convention assignment for you to wake up your creative mind. What would you do if you were faced with this situation? Post your thoughts and ideas here so we can all benefit from your answers.
Question?You have the chance to buy a MH for $3,000, and you have a buyer in place who will pay $6,000, with $600 down, and 36 payments of $200. But you have one small problem?you have no money. What would you do? There is no one best way, or one right answer, so don?t be shy about posting, that?s how we learn. So put your thinking hats on and let?s see some answers. And there?s more than one way.
Also, Saturday evening from 7 PM til ??? will be a very informal net-working session that everyone can participate in. So bring your deals, problems, ideas, questions, or whatever you want to talk about, and we?ll all join in and add our two cents worth to see if we can help you reach your financial goals. And you?ll have a room-full of brain power to pick from.
See you in Atlanta,
Lonnie
PS If you do the same thing this year, as you did last year, where will you be next year?
Attend for only one day?? - Posted by roundhouse
Posted by roundhouse on September 14, 2004 at 12:23:38:
I want to attend the MH workshop, but will be leaving for England late Fri nite from the Atl airport.
is it possible to pay for just Fri??
Deal Ideas - Posted by DJ Swett
Posted by DJ Swett on September 12, 2004 at 17:20:12:
Would this deal ever be a challenge and fun to do.
First, I would ask what the seller is going to do with his $3000 cash. My intent would be to offer him another item in exchange. Say a car, ATV, boat. depending on his motivation, maybe we could work a cash plus trade deal.
Since I don’t have $3k cash, I probably do have a big screen TV and other doo-dads. I would be willing to up the price, use the doo-dad for down payment and ask the seller to owner carry financing.
Maybe I would have been smart enough to have developed a line of credit on my existing house or have obtained an overdraft line of credit on my checking account.
I would not be reluctant to use a cash advance from my credit card because after I did the deal, obtained control, polished up the proeprty for good street appeal and sold the place under contract. I would negotiate with drive-by investors with an offer to buy a partial of my contract. That partial sale of the note would pay off my credit card advance.
I would approach my employer to borrow the money and allow the company to debit my wages to pay back the loan. Hopefully, I am a valued employee with some time in grade and the boss would be willing to help me with a leg up.
Since I am so broke that I can’t afford even a $3k deal, I would be working two jobs and saving every penny from that second job to build up a war chest of investment money.
Do I have any free and clear assets that can be offered to a lender to obtain a small cash advance. If I had a nice car, I should be able to get $3k consumer loan.
Good business sense tells us that we should be making acquaintance with other deal makers in the area. I always hand out my business card to other investors when I attend foreclosures. My effort is to get investor names so that I can begin to build a file on a person so that I will be able to talk to them the next time I see them at an auction/foreclosure or even at Home Depot.
Also, when I read the local newspaper, I note the ads that seem to be written by investors and always call them to make acquaintance and try to go visit them and to see their deal. I also try to figure out their business technique.
Just keeping a journal of ads tells you a lot about how fast the market is moving and what benefits the seller is offereing in his ad. also the ads kind of tell me what the retail asking prices and rents are right now. My stuff is average and I figure that the ads are kind of representative of average stuff.
Those personal investor contacts would be real good for possibly flipping the deal. Make a spread on the profit twix the $3k and some higher sales price. Say $500 or $1000. Investors are more apt to understand the wheeling and dealing that capitalism requires.
A better deal would be to do a joint venture with the investor. The deal is 100% ownership to the money person with a side agreement that he would pay me, say, $50 per month for the life of the contract.
With this side agreement, I would try to obtain an option from the investor so that if I became successful in the business, I could purchase back the property after allowing him a fair profit. I have found that these deals just keep bouncing back and you get to do them over and over. The buyers are really tenants who always want to move along at some time in the future.
Definitely, acting with full confidence, I would tie up the $3k deal with a written sales contract with all cash terms as he is demanding by using a well prepared purchase offer and the offer of the standard $100 cash deposit.
Re: Attention MH Work Shop Attendees - Posted by marty
Posted by marty on September 10, 2004 at 17:37:12:
All good answers…mine—
Well Mr. Seller to be honest I think your home is worth a liitle more than the $3000 you want. Wouldn’t you agree with me? How’s about I give you $600 down and $200 a month for the next 15 months (or whatever you want to make it to give him more than his asking price) paying you a total of $3,600 which you know is a little closer to what your home is worth.
Didn’t borrow anything, paid him more than he wanted, put someone in a home for only $600 and collected the remaining 21 payments for myself.
Marty
Re: Attention MH Work Shop Attendees - Posted by Andrew
Posted by Andrew on September 09, 2004 at 13:42:36:
$3,000!!! [Chokes and grasps heart]
Well, I don’t usually pay that much. Hmmm… if I can pay you all cash right away what’s the best you can do?
If I had no cash, I’d first ask the seller if I could make payments. If that didn’t fly, I’d do what Jeanne suggested.
-Andrew
PS - Looking forward to the workshop!
Re: Attention MH Work Shop Attendees - Posted by Jim
Posted by Jim on September 09, 2004 at 13:03:17:
Good answers. You could also sell a partial on the note which is basically what Rich said only you’d have to structure it where you do a simultaneous close to get the cash to pay for the home and they collect some portion of the payments…either half of each payment or maybe the first X # of payments.
Re: Attention MH Work Shop Attendees - Posted by Rich[FL]
Posted by Rich[FL] on September 09, 2004 at 11:25:18:
Get a cash advance from a credit card (10, 15, 20% doesn’t matter) to pay for home. Pay off credit card at $200/mo for approximately next 18 months. Sit back and enjoy collecting the next 18 months of $200/mo from buyer.
Note: I did exactly this about 3 years ago. Bought at $7k; sold at $11k (I know, not a lot of spread, but not bad for not using ‘any of my own money’). Paid off card then collected the remainder. Worked great!
Rich
Re: Attention MH Work Shop Attendees - Posted by Jeanne
Posted by Jeanne on September 09, 2004 at 11:14:42:
Hi Lonnie,
“Question?You have the chance to buy a MH for $3,000, and you have a buyer in place who will pay $6,000, with $600 down, and 36 payments of $200. But you have one small problem?you have no money. What would you do? There is no one best way, or one right answer, so don?t be shy about posting, that?s how we learn. So put your thinking hats on and let?s see some answers. And there?s more than one way.”
I would ask a relative to borrow $3,000 and offer a 25% return on the money, which would be paid in full in 16 months.
After 16 months at $200 per month plus the $600 down payment, my relative would be paid off.
I would then collect the next 20 months of payments and hope that the payor stopped paying. If that happens, I will resell the home to a new buyer at $6,500 with a down payment of $650 and collect 36 payments of more than $200.
Jeanne