Posted by Ryan B (KS) on May 29, 2007 at 07:59:45:
Maybe you could order at a B&M store though, I don’t know.
Deal #1 recap (long) - Posted by Ryan B (KS)
Posted by Ryan B (KS) on May 23, 2007 at 09:08:14:
I wrapped up my first deal on Monday and I wanted to post on what happened and what I learned my first time out.
I bought the home about 10 days ago from a lady that had tried unsuccessfully to lease/option the home twice. The home is a 1994 3/2 16x80, in ok condition overall, but needing a few minor repairs. I paid $3500 for the home. I listed it in the paper for $10,500 on 5/11, showed it to my buyer on 5/12, and got a signed purchase agreement on 5/14 (they haggled me down to $9500). They were moving in from out of state, so they couldn?t close until 5/21. So easy I thought I was dreaming.
When I originally talked to the PM, he said that everything is fine, no problem, sure thing, make some deals, everything is great. That sounded pretty good to me, so I went ahead. Here is the first mistake I made. When my buyers looked at the home on 5/12, and knowing that they lived out of state and were just moving to the area, I should?ve made sure to tell them to go meet the park manager and fill out an application. Honestly, they didn?t seem too interested in the home. But then they called me on 5/14 asking when they could move in. I told them that as far as I was concerned, they could move in as soon as they were approved by the PM. Well, they took that to mean that they should pack up the truck and haul it down from Minnesota.
When I told my PM the situation, he was none too happy. He had told me to make sure and get my buyers approved before selling the home, etc, etc. I had to explain to him that I didn?t create the situation ? the buyers did by jumping the gun on coming down here, and that the home wasn’t sold yet. So we made friends again. I got my buyers to fill out Lonnie?s lot rent application and credit history, passed them along to the PM to get the ball rolling on the paperwork side of it, and then spent the next few days worrying about whether this nice family would end up on the street with all their belongings. They were due to arrive on Friday 5/18, and the PM reserved the right to refuse the application at this discretion (despite that they had passed credit history requirements). I said ?no problem, fine, I understand completely, of course you?ve got to protect your business and the community. I appreciate all your hard work, Mr. Manager, and I?ll be sure to take care of you once we get this situation worked out.? That part about my taking care of him made him smile. But underneath I was really stressed out, thinking about this poor family arriving with no place to go.
So my buyers show up on Friday, low and behold, the park owner is out of town and they can?t get in until Monday. So they called me up frantic. I tell them that there is nothing to be done, but I called the PM and confirmed that they are approved by him (who has 95% say on who get into the park anyway). I tell them that they?re just going to have to wait it out.
On Monday my PM calls me and my buyers are approved. They receive keys and we meet up Monday evening to close the deal. Nice. I delivered a copy of the title to the PM with a crisp $50 bill for him. I figured it would be to my benefit to grease the wheels for the future.
So I learned several things.
- Be sure to have my buyers meet my PM and fill out an application ASAP, especially if they?re just moving into the area. It seems like for this park meeting the PM carries a lot of weight.
- Be sure to explain that buyers need to allow about 5 days to get through the park?s application process.
- I need to be clearer with my PMs exactly what I?m doing. For some reason my PM got it into his head that I was going to somehow sublease the home. If my man wasn?t so reasonable, I may have had a major problem.
- DO NOT get stressed out on behalf of buyers. Neither I nor the PM created the rushed situation, the buyers did by hopping into the moving truck and coming down. I got real stressed out for a while. Then I realized that the situation wasn?t really my problem. My problem is creating a good relationship with the PM and the park owners. Once I started focusing on how I could protect that relationship first, things started going a bit smoother for me.
- I surely learned several other things, but these are all I can think of at the moment.
Congrats Ryan. - Posted by Dr B. (OH)
Posted by Dr B. (OH) on May 23, 2007 at 18:14:02:
As everyone says, the first is the hardest. Keep it up.
Happy Trail(er)s,
Steve
Re: Deal #1 recap (long) - Posted by Ruben (KCKS)
Posted by Ruben (KCKS) on May 23, 2007 at 11:32:57:
Ryan,
Congrats on getting your hardest deal done (The first one is always the hardest). Now you see how little work it takes to create that mailbox money. I already know you have deal number 2 puchased and are looking at other homes in your area. Keep that momentum going.
I am looking forward to meeting you in person at our Cashflow game on June 1st. I forgot to ask you if you had a finacial calculator. If you do not buy one prior to our Cashflow game. The financial calculator is a very valuable tool when investing in general and especially when creating notes. Michael and I will show you how to use it if you need us to. Prior to investing in mobile homes I did not know how to use one but now with Michael’s and Lonnies help I have learned. Make sure to call if you have a question. Having sources to bounce ideas off of have saved me a ton of mistakes which could have cost money. Once again well done and congrats on a very good deal.
Ruben D. Flores
816 918-9041
Re: Deal #1 recap (long) - Posted by Ryan B (KS)
Posted by Ryan B (KS) on May 23, 2007 at 13:38:20:
I’ll be at Cashflow with bells on, financial calculator in hand.
Re: Deal #1 recap (long) - Posted by FH
Posted by FH on May 24, 2007 at 19:15:48:
What book(s) did you read to prepare for this. I want to start investing without spending a ton of money on materials.
Re: Deal #1 recap (long) - Posted by Ruben (KCKS)
Posted by Ruben (KCKS) on May 25, 2007 at 24:18:21:
Pretty much everyone on this site starting with Lonnie’s first two books:
Deals on Wheels and Making Money with Mobile Homes.
Both can be purchased on this site for about $35.00 each. It will be the best $70.00 you ever spend if you use the knowledge in those books. When you get them read them twice and then GOTC (Get Off The Couch) and go do a deal. Post about your first deal like Ryan did and then go do another deal.
If you are serious about doing deals there are a ton of folks out there who will help you via posting or even on the phone but first BUY AND READ LONNIE"S BOOKS. That was shouted on purpose. There are too many new people who want answers but will not spend under $100.00 to educate themselves and to be honest many of us get tired of the questions that Lonnie has already answered if you just read what he wrote.
Good luck and we look forward to your posting your first deal as Ryan has.
Ruben D. Flores
816 918-9041
Re: Deal #1 recap (long) - Posted by Ryan B (KS)
Posted by Ryan B (KS) on May 25, 2007 at 07:52:05:
Ruben is right - buy Lonnie’s books. I’d only add that you can get a set of Lonnie’s three books plus all his forms on cd for only $89. Its easy money to spend, and since my first deal has made me $7243, I guess it was money well spent.
Re: Deal #1 recap (long) - Posted by FH
Posted by FH on May 25, 2007 at 17:54:08:
Thanks for the information and for posting about your deal Ryan. I definitely plan on reading the books and being a DOER. Are they available in any brick and mortar stores?