Posted by DC (IL) on July 03, 2003 at 16:07:38:
I wanna be like you when I grow up!
Posted by DC (IL) on July 03, 2003 at 16:07:38:
I wanna be like you when I grow up!
Leap of faith (LONG) - Posted by Randy
Posted by Randy on July 01, 2003 at 10:40:28:
Well this may not sound like a problem to some and may be I just need the encouragement to get started? But I have always bought into one of the biggest misconceptions ever. Go to school get a good job and live happily ever after. Now I also have heard one of the biggest lies in recent history “job security”.
I feel that I’m ready to make a change in my life and would like some opinions from people who are actually living the life that I want. I have been visiting this site for 2 years and learning everything I can. I have read both of Lonnie’s books and feel this is what I want to do to get started in real estate investing. I’ve had the light bulb suddenly click on. I bought a house 5 years ago and it was a real fixer upper. I have just now completed all of the work (bathroom,kitchen,carpet,paint,furnace,)…I bought the house for $60,000.00 and just had it reappraised for $115,000.00 my intention was to fix it up and continue on my career while having a nice house to live in. Now I’m facing a layoff and uncertainty in my career and would like to change my path. My initial plan is to sell my house to cash out the equity that I have built up and then begin my new career in mobile homes. Since I’m a single man with no family I think that I can make this leap of faith and have enough cash reserves.
Any input or opinions would be greatly appreciated…
Re: Leap of faith (LONG) - Posted by Ron_KS
Posted by Ron_KS on July 03, 2003 at 17:00:23:
First, welcome to the world of wobble boxes!! Second, read and reread what Anne-ND said - she hit the nail on the head as did KenS(WV).
I was forced to retire due to health reasons and believe me this business is a God send!! I have my SS, my disability and my checks from my MH’s. I also have a partner, one, my wife, second, a very close and person friend who came into the business with us. I did not have all the money I needed to expand but with his help we are now reaping some very rewarding profits.
Do EVERYTHING Anne-ND stated, ask question on this form when you run into a problem and read Lonnie’s books and also Ernest Tews.
Best of luck,
Re: Leap of faith (LONG) - Posted by KenS(WV)
Posted by KenS(WV) on July 03, 2003 at 06:47:19:
I have to agree with the advice Anne_ND gives. I was in your situation about 6-8 months ago. I had six-figure job and a wife and 2 kids. I found this site last year and followed continuously.
I took a slightly different route. This probably depends on your area but mine was perfect for this. To do Lonnie deals takes cash. I borrowed about $40K and bought four repoed homes sold them all for cash (or found financing for my buyers, same difference to me) and turned around and bought 4 more homes, this time including several doublewides.
In my area I make about $6-8K cash on each single wide and $10-14K on each double. One note, in the next 30 or so days I will sell 2 double wides and make about $30K on EACH one of them CASH! This a great business to be in now.
Follow Anne_NDs advice. Get your insurance straigtened out now. You can extend your health benefits through your work for 18 months do to COBRA. Maybe not sell your home but get a home equity loan to get you started. With no family, budget what all of your expenses are and determine what you really have to have. Negotiate a severance package with your employer.
Get your dealer license(s) now, get your bond now. Get all of this done while you are employed. Buy doing this while you are part time, a couple of mistakes won’t be fatal. Also, contacts for financing are important if you take the path I took. The internet is a tremendous resource if you know how to use Google.
Randy, this can be done and I am doing it. I love the work, I love the money. If all continues to move as it is now I will sell between 30-50 home this year. This is growing beyond what I could have expected.
I got my indications that I would either have to move or take a severance package at the end of last year. I started this business in January and am now doing it full time as of June 4th!
Good luck and keep us posted!
Re: Leap of faith (LONG) - Posted by Karl (Oh)
Posted by Karl (Oh) on July 01, 2003 at 22:21:28:
Here’s what I bought into. Go to college, get a good job, work in a cubicle for 16 years, go back to college some more, come to the conclusion that working in a cubicle sucks and is draining the life force from my body (that was the motivation), discover Creonline and mobile homes, start doing deals on the side, realize that finally after 16 years I had discovered a business that rocks, go full time, and live happily forever? I’m still working on that last part!
Can you start doing Lonnie Deal full time right out of the gate? That would be impressive. I did deals evenings and weekends for three years before going full time six months ago. So I don’t know if you could do it or not. Jumping in full time from the start would have certainly been rough.
I suggest doing a couple deals right now while you’re still employed. Find out if you even like this business, and more importantly, if you’re any good at it. Then decide. I don’t think its a question of logistics. The numbers certaily work out. But you need to know if this business is for you. Maybe you’ll realize that getting another job or rehabbing homes is a better opportunity.
Mr. Conservative says… - Posted by Philip
Posted by Philip on July 01, 2003 at 16:20:56:
Yes, you can make it at this. Would it hurt to have at least a part time job for a few years…maybe not.
Cash reserves can disappear in a hurry. Like Anne said, be ready to cut your living expenses NOW. Find out what you can tolerate, and MR. Conservative’s biggest concern:
It will take time before this supports you, if you are like most people who post here, or most I have met in my daily life.
I wouldn’t put ALL my eggs in one basket ALL at once.
Mr. Conservative could be wrong though.
Re: Leap of faith (LONG) - Posted by Phil Pelletier
Posted by Phil Pelletier on July 01, 2003 at 12:55:13:
If you invest that equity right, you can do very well in mobile home investing. They say experience is the thing you get just after you really need it, and that is very true in mobile home investing. In order to make it work, you must have the cooperation of the park management. This is less a business of homes and more a business of solving multiple problems in one transaction. A park needs the rent payment to survive. A guy with a decent job needs a place to live, but he has to pay it in installments. A bank has a home they were stiffed on 12 months ago and they are paying ground rent on a place that has no value to them. You have $3,000 to put to work for your future. If the bank stops paying the ground rent, the park accumulates the rent against the home, so the home is LESS likely to actually change hands because it becomes priced out of the market. If the home does not change hands, the park does not get it’s rent. The guy who needs a home goes and rents a crappy little apartment and pays down someone elses mortgage and lives on top of his neighbors for the next 2 years. EVERYONE has problems they need to solve
You waddle into the park and, if you learn to play it right, you become the answer to everyone’s problem.
Banks needs OUT, so you offer small cash payment for the home- Bank is off the ground rent hook- Problem solved
Park now has YOU to pay cash rent- Problem solved
Now YOU have a problem (ground rent payment due every month)- You sell the home to our working guy and collect $250/month for 3 years- Problem solved because he pays ground rent and pays you back for the “loan” you gave him for the home.
Oh, yes, the $1,000 down payment put your investment at $2,000 (plus fix up costs that are ALWAYS there with these homes), so your yield in the investment is very high.
EVERYONE is happy and you are collecting $9,000 for every $2500 you invest.
You nedd to just jump in and start researching the home prices in your area. If you want to talk, please feel free to call me.
Re: Leap of faith (LONG) - Posted by Anne_ND
Posted by Anne_ND on July 01, 2003 at 12:15:52:
I’m in a similar position. I retired on May 15th with the idea that doing Lonnie deals would cover my expenses and eventually make me wealthy. I started looking to buy in January, have bought and sold seven houses since February. This can be done, but it requires preparation and planning.
I suggest the following:
-reduce your living expenses now
-buy yourself a disability insurance policy now and find out about extending your health insurance. Take care of dental and other health needs before you lose your job (i.e., get your teeth cleaned)
-if you need a bond for your dealer’s license, get it now while you’re employed
-get all of the credit you can get now, before you lose your job, whether that be an equity line against your house or just increaase your credit card limits
-expect to put a few thousand into your MH buying machine before you get any out. Costs include: set up LLC, renting mailbox, advertising, business cards, liability insurance, gas for your car, cell phone expenses, stamps, MH Park security deposits, holding costs such as lawn care, utilities, insurance and lot rent. Those are all of the expenses I can think of right now, but having a few thousand to start with REALLY helps. In my case I totalled my car a few weeks before I started. Although I didn’t get what my car was worth (it was very well maintained and would have run for many more years), the $2000 from the insurance company is what I used to get started.
-Go talk to local park managers NOW
-if you can line up a few note buyers now that will also be helpful.