Posted by Steve-WA on May 12, 2006 at 10:50:00:
thats why the RV sits . . .
grrr
How did you fund your first Lonnie? - Posted by MB
Posted by MB on May 11, 2006 at 08:02:57:
I have decided after several years of research (and procrastination) that I will begin my REI business with Lonnie’s and L/H. Since I have no experience I want to begin with Lonnie’s and have my first deal by June. However, I have no savings or disposable income to support the purchase. How did people in a similar financial situation as myself fund their first few deals?
Re: How did you fund your first Lonnie? - Posted by Gary
Posted by Gary on May 12, 2006 at 07:25:29:
I bought a 12x60 yesterday for $56.00. Six was for owner getting a duplicate title. I also paid $80.07 back taxes,$3.50 conveyance fee,and $10.00 title transfer for a total of $149.57. Yes it looks rough right now but 40 or50 garbage bags and a trip to the burning pile will change alot. I know it has busted plumbing and a hole in the bathroom floor for starters but I collect and store usable items that I know will be needed eventually. Much of this is obtained for the hauling. How about starting with cash is my point. If you need to borrow to do a deal on a mobile home are you then actually a Lonnie buyer and not a Lonnie seller.
Re: How did you fund your first Lonnie? - Posted by osupsycho (OK)
Posted by osupsycho (OK) on May 11, 2006 at 19:37:16:
I used some money left to me from my grandmother (after I bought a life insurance policy) for my first deal. My second deal was funded off of the down and first payment from my first deal. My third I had to put on a credit card but it was worth it. Since then I have used the money from those deals to do more and have used investor money on one deal. The key is to scrimp, save, beg or borrow to do your first deal (within reason of course). Once you do one you should see if the biz is something you want to continue and will start to have some credentials to attract money from investors.
Jad
sold my Harley - Posted by Steve-WA
Posted by Steve-WA on May 11, 2006 at 18:23:24:
and that gave me seed money; the first two deals I did were cash sales for 6300 and 6800 profit respectively. And so on - - - and so on - - - and so on - - -and so on . . .
Re: How did you fund your first Lonnie? - Posted by Todd (AZ)
Posted by Todd (AZ) on May 11, 2006 at 12:02:17:
Some good ideas were already given. I’d also throw out there, to expand on Anne’s suggestion, maybe working part time for a mobile home mover, mobile home dealer, mobile home park (maintenance?), etc. Anything to get you some more money AND learn the business at the same time. Todd (AZ)
Re: How did you fund your first Lonnie? - Posted by Corey
Posted by Corey on May 11, 2006 at 09:18:04:
I went to a family member that had the money. I did the deal, he paid for the deal, we make money on the deal. Another way is via credit (last resort only), either with a HELOC, credit card, or a small unsecured line through a lender like CitiFinancial. All you have to do is get your first deal done, then you can sell all or part of the note, and move on to the next one. It looks like you are off to a great start by setting goals! Keep us posted.
Re: How did you fund your first Lonnie? - Posted by Anne_ND
Posted by Anne_ND on May 11, 2006 at 09:17:41:
I totalled my car and used the money to buy my first MH.
I don’t recommend this, for a couple of reasons. One- painful and scary; two- having cash made me less careful that I would have been about rehab expenses; three- anything you do to get the creative juices flowing is good, including brainstorming about how to find money.
Another good thing would be to get a second job that places you in contact with MH sellers and buyers. What about a weekend gig at McDonalds? You’ll get a few extra bucks to put aside and will probably meet lots of potential buyers. I’ve had three buyers who are managers at fast food restaurants- they all had crappy credit and one even had a long-ago drug possession conviction, but fast-food places do a great job of screening their managers and all three have been excellent payors.
good luck, it’s a great business.
Anne
Re: How did you fund your first Lonnie? - Posted by JeffB (MI)
Posted by JeffB (MI) on May 11, 2006 at 08:45:23:
Depends on your level of risk tolerance. If you feel comfortable, you could use a CC advance to fund the purchase. BUT, you should be careful because costs can add up quick especially if you’re paying lot rent. Personally, I’d use this approach but only because I believe in this business and know it works.
More conservatively, you could get options on homes and try to line up buyers without actually paying the seller until you’ve got it sold. Or, get the seller to sell on payments and do the same to your buyer. Or, ask your friendly PM if the park has any homes they will give you for free. You may be surprised by the answer. You could even partner up with someone who does have cash, and use their money and your labor to get deals done. There are a myriad of ways to do this without cash… money is nice to have when starting out but don’t let the lack of it stop you from trying.
Jeff
Being a Lonnie seller? $150 MH in ATL S Metro?? - Posted by MB
Posted by MB on May 12, 2006 at 09:08:45:
WOW! Gary that is awesome. I understand what you are saying.
I suppose my focus was wrong in that I was searching for Lonnie’s I couldn’t afford rather than seek a mobile that I could afford, right?
Is it wrong to assume that $150 Lonnie’s are far and few in between. ATL metro is my region (S of 285). Well, then there is the $200 dealer fee in GA and the umbrella policy I would need to purchase. Then I planned to get a Corp, too; that could wait til after my first 3 deals or so.
Thank all for the different perspectives…
Re: sold my Harley - Posted by gman
Posted by gman on May 11, 2006 at 22:40:50:
Have you replaced the Harley? 
CC’s and Loans for Lonnie - Posted by MB
Posted by MB on May 12, 2006 at 09:16:32:
Well, that is something I have pondered on doing. I have been in the process of rebuilding my personal credit after several years of issues. I would loathe to use a credit card because of the utlization issues.
My main concern is having back up dollars if I were to ever get stuck in a project. I think I may have to seek a installment loan; it does not weigh as heavily than CC utilization.
Thanks for the positive feedback; I want to share my first success story soon.
Re: How did you fund your first Lonnie? - Posted by osupsycho (OK)
Posted by osupsycho (OK) on May 11, 2006 at 19:31:53:
Anne,
That is a great idea on the fast food managers. I never thought of it that way. Great advice!
Jad
Understanding MH Creative Financing… Q’s? - Posted by MB
Posted by MB on May 12, 2006 at 09:48:24:
-
Options
I pretty much understand the principles of options, when I was looking at investing in brick built homes. In regards to times, what is generally an accepted time to exercise an option on a MH? The shorter the better, but is a 45 day turn around good from the point of receiving the option, assigning a buyer, and having both parties moved? -
Sell on Payments
Now, I am not as familiar with this term. Is the idea to pay the seller minimum payments and then a balloon payment at some agreed upon time?? -
Partners
For me, this will likely be the toughest part. I just moved to the ATL area 15 mos ago. Since, I work "over"time, I have had very little time to understand the different areas of the city. I am in the process now of looking of MHP’s within hour driving distance. -
HML / Partners
I guess you are referring to HML’s in this case. I would assume finding HML’s for MH’s are more scarce in the industry. I still have interest in stick-built homes, maybe I could get leverage by getting HML for both processes???
Thanks Jeff you have opened up a few ideas for me to explore…
how’s that couch feel? - Posted by Steve-WA
Posted by Steve-WA on May 12, 2006 at 10:41:42:
MB, it sounds like you are seeking excuses NOT to do this. And that’s OK, but the excuses you use are just hiding the fact that you aren’t motivated.
Perhaps.
My first deal was free, but for the cost of a couple of FedEx envelopes,and title + tax. And cleanup of course, but that could have been done a LOT cheaper - by selling some of the good stuff I gave away, I could have paid for the dump fees for the crap.
You don’t need a license to try a deal or two, you don’t need an umbrella policy, you don’t need a corp - you need to GOTC.
Re: sold my Harley - Posted by Lin (NC)
Posted by Lin (NC) on May 12, 2006 at 06:51:59:
He’s so busy putting deals together these days he wouldn’t have time to ride it anyway.
Re: how’s that couch feel? TERRIBLY BROKE - Posted by MB(GA)
Posted by MB(GA) on May 17, 2006 at 16:21:19:
(pun intended)
That is exactly what I needed to read. Thank You.
Re: how’s that couch feel? - Posted by Gary
Posted by Gary on May 12, 2006 at 23:35:22:
Steve, you do have a way with words. Very well said. The deals are plentiful, it’s TIME that’s in short supply.