Posted by Rev. Jimmy Mack (NC) on June 22, 1999 at 03:29:47:
I can tell that you haven’t even read Lonnie Scrugg’s first book. BUY IT AND READ IT BEFORE YOU TRY TO DO A DEAL!
I am going to quote something from Lonnie’s first book, DEALS ON WHEELS, page 121: “How could we get started if we didn’t have any money at all? … Suppose you’ve located that mobile home that you can buy for $2,500 and you feel sure you can sell it for $5,000 but you don’t have any money to buy it with. Find a family member or friend that has money in T-bills, stocks, CD’s or maybe sitting in the bank and earning maybe 5 or 6% interest. See if they would be willing to invest with you and earn 18%.”
Now, here is what my wife and I did. We had met a man who was fairly well off - had a big house etc. He is retired. We made an appointment to go for a visit with him - said we needed his opinion about something. We told him we had an opportunity to buy used mobile homes for quite a bit below wholesale. We told him that if we could pay $3,500 cash for a certain one that we could sell it for $6,900 - $500 down and $199 for 48 months at 12.75% interest. We told him that if he would be willing to loan us the $3,500 we needed to buy the mobile home we would pay him back at 18% interest over 48 months - he thought that was a pretty good deal because he wasn’t getting anywhere near 18% where he had his money invested. HE WENT FOR IT! We are now getting a payment every month for approximately $199 and out of that we are paying our investor approximately $99.00 a month for 48 months. That means that we have a positive cash flow of about $100 per month on that one trailer. (Incidentally, these aren’t the absolutely exact figures but they are close.) Since that first one we have bought (using his money) three more mobile homes which means that we are making about a hundred dollars on each one each month - that’s $400 extra for us each month plus all the down payment money we got. Our investor told us that he thought he could handle all of these 18% deals we could make him!
This isn’t the best way to do it but if you don’t have any money of your own it can still be done - just find someone who wants to make 18% on their money.
By the way, go to WalMart and get a financial calculator for about $23.00 so you can figure exactly how much the payments are. It isn’t too hard to learn how to use one.
Don’t forget, buy Lonnie’s books - you can order them right here on this site - you can get both of his books for about $60.00 - it’s a bargain!
May God bless you and help you to get started!
Rev. Jimmy Mack (NC)