L/O vs Lonnie, fastest way to self employment… - Posted by Kevin(OK)
Posted by Kevin(OK) on April 26, 1999 at 13:41:34:
I recently read Joe K.'s L/O course and Lonnie’s Deals on Wheels. Then I sat down and computed which method would allow me to quit my #!# job the quickest. This is considering one major factor. I must borrow cash on revolving debt(credit card)to fund any deals.
First, I computed the Lonnie deals. Using revolving debt, buying at half price($3,000), selling at double the price($6,000) and funding the deal, it would take me three years before I would have enough $$ to replace my income and have enough to purchase at least one mobile every month. Also, I would have to keep a large debt ($17,000) revolving for those three years, in order to fund the deals. Furthermore, this doesn’t include tax’s, which would be several thousand dollars per year.
Next, I computed Joe’s L/O’s. Using $100,000 as the average priced home, $1000 as the average 1st mos. rent and option consideration, selling at $110,000, $1,100 per month and a $3,500 option consideration, it would take me one deal to replace my monthly income (of course I would want to do a few deals before I would jump in full time). Furthermore, I wouldn’t have that large debt looming over me. If I could do this same thing every month, I could quickly rid myself of my job, and have an extra nice bonus when the buyers exercised their option. Also, the tax’s are a fraction of the Lonnie deals.
My choice is to work on L/O deals.
Now, let me say, that both of these courses/books have great learning tools, and I highly recommend them to anyone. And if I had cash, Lonnie’s would be more attractive, but I do not.
You make the choice for yourself.