They are not typical Lonnie deals. For example, you buy a MH for $4000 with fix up costs of $2000 for a total of $6000 in the deal. The buyer puts down $1000 and agrees to pay you x number of dollars for the next 36 months. You still have $5000 in the deal. In a typical Lonnie deal, you would take the $6000 dollars, buy 2-3 homes and you monthly cash flow would go up 2-3 times the original deal. In other words, instead of collecting $250 per month for one MH, you would collect $500-$750 you created with the same amount of money. Of course, these are only estimates but they are fairly close. Good Luck. Dewey
Hello folks, my name is Ruben and I just started in the MH business as an investor. I have access to GreenPoint Repos ranging in price from $4000 to $8000 on 16X80 single wides and between $6000 and $10,000 on double wides, and most of these are fairly new but do require at least $2000 to repair. My question is: Are these good candidates for Lonnie deals?
Ruben;
By any chance are you located in New York, specifically Long Island. If so perhaps we could correspond so I can pick your brain. I just received
Deals On Wheels and wanted to get started, but I would like to talk to someone in my area who has done this before. Thanks.
Posted by David S on January 21, 2001 at 20:01:05:
Hi Ruben,
Keep in mind that your market will dictate to you what you can do. In some areas, 1500-2500 mh’s are available on a regular basis.
I also buy from GreenPoint on occasion. I made 7 offers today for tonights 12pm deadline. These offers range from 4,100-12,500, BUT I have my exit plan already figured out. If you are planning on buying some dirt and doing land/home pkg deals, or planning on getting a park to allow you to place the homes, you’re ahead of the game.
A word of caution here. If you have plenty of cash or a good finance source, it’s fine to do some of these deals. But if not, you will run out of money before you even get a good start. This is the logic for the “Lonnie deal”. Cheap mobile homes. Easy in, easy out.