Posted by Chuck (AZ) on January 25, 2002 at 21:46:51:
Unfortunately, I have to keep the specifics in confidence… as I agreed to do so.
What I can say, is that I just brokered a deal that paid me $32,500 in commission money.
I think even Lonnie would say it’s “good enough”.
How many Lonnie Deal = JOB? - Posted by Jody KS
Posted by Jody KS on January 25, 2002 at 11:09:38:
I read an article today about a Lonnie deal where he received $200 for the next 40 months, great deal, right? Then he asked how many of those deals would it take to replace your monthly income… The typical wage for factory work in Kansas where I live is about $20 K so I figured all it would take is approx. 8 deal to … FREEDOM! Now my husband and I already own enough rentals not to punch a time clock… but we could sure use another $20 K for just 8 deals… WOW! What a great way to start setting your goals. How many deals for YOU to have financial freedom? I’d like to know if that wakes up someone like it did me!
Re: How many Lonnie Deal = JOB? - Posted by ScottS(NC)
Posted by ScottS(NC) on January 25, 2002 at 13:24:01:
Jody,
I like where your going with this post, however I feel the need to set the record straight. Their are several things that need to be understood about the 8 deal = 20k theory 1. AT $2500 each, my average purchase price for a lonnie deal you must come out of pocket with 20k just for start-up costs. If this is all your money you must return 50% as seed money to keep investing. This leaves $100 per month profit probably more like $75 after capital gains and other taxes and expenses and this is conservative.
2. Most people don’t have 20k just laying around so if the seed money is borrowed your take home is even less. I am currently selling deal #17 and I am still not close to retiring into full time “Lonnie status.”
3. In order to have 20k spendable cash per year you must have enough income to replace your seed money and pay any unexpected expenses,advertising,and all the misc. expenses in business. This would be many more than 8 depending on your area. Thank you for the motivation and the reminder to all of us the importance of financial freedom. Take Care ScottS(NC)
Re: Scott… a little advice? - Posted by JodyKS
Posted by JodyKS on January 25, 2002 at 23:51:38:
Scott, it sounds like you have a little experience with mh investing so, let me ask your opinion.
My Husband and I have about 30,000K we can tap in a 4-plex, what we were thinking about doing is getting that 30K and re-investing in several lonnie deals… at approx. $2000-3000k per deal. Also have you ever taken your notes to the bank to hold as collateral for a line of credit? I haven’t ran all the numbers yet… just starting to think and plan. Now We usually we invest in SFH rentals but the thought of not having the worries that you do with rentals sounds appealing, so we can hike the Applachain trail etc. Just a little nervous in changing investing strategies. I know I’ve over simplified things, but I would like to hear your advice… if ya don’t mind?
Jody
Re: How many Lonnie Deal = JOB? - Posted by Chuck (AZ)
Posted by Chuck (AZ) on January 25, 2002 at 17:02:23:
My rule of thumb here goes like this…
When you CLEAR in a MONTH, as much as you used to MAKE in a YEAR, you can RETIRE.
Which is basically what I did… it just took me 5 years to get there.
Then I got SMARTER, and started doing it differently… I made 150% of what I used to make in a YEAR on one deal last week.
One of these days, I’ll share how I did it.
No, it’s not a typo.
Re: Scott… a little advice? - Posted by ScottS(NC)
Posted by ScottS(NC) on January 26, 2002 at 21:01:33:
Jody,
Hi, Excellent idea by my way of thinking. I started out using my home equity loans to do deals. As the cash flow increases we are slowly doing deals out of cash flow, and loans. I am gathering my portfolio to apply for a business line of credit as we speak. I dont know how the bank will feel about lonnie notes as collateral but we will see. The 30k from your four plex is perfect lonnie dealing money. Be sure to read both of lonnies books before jumping in(in case you haven’t). Compared to SFH renting this is NOTHING to worry about. This forum is great and anytime you have a problem they will all jump in and help. HTH Take Care ScottS(NC)
Re: How many Lonnie Deal = JOB? - Posted by David a. Saucer
Posted by David a. Saucer on January 25, 2002 at 17:39:15:
That comment about someday telling us how you made 150% on one day last week is too juicy not to ask you to tell us now…
Thanks,
David