Lonnie deal- questions - Posted by Jason

Posted by Philip on October 29, 2003 at 08:10:09:

After you have read the book twice, then come to this website and use the archive feature to answer more questions.
After you find a potential first deal come here and let the experienced people help you. Like Tony, Steve, Doc Whisler, etc.

Lonnie deal- questions - Posted by Jason

Posted by Jason on August 21, 2003 at 12:00:19:

I haven’t yet bought any course but have read so much on Lonnie on this website that in my heart of hearts, I am positive that this will work for me. To begin with , it requires low investment (under 10k) for the first deal. I have a few questions though.

  1. If I sell a used mobile home to some guy, and get him to sign up for 12 or 13% interest on the loan I will give him for buying the MH, then in the 5th month he defaults ? I would end up trying to evict him, right? So how exactly do I do that. Does any of Lonnie?s books explain that? I don?t want to screw up and end up having the borrower coming and suing me and therefore losing the little bit I have. Boy, talk about fear…

  2. Obviously, several people must read this website and have bought some of Lonnie?s books. If even some of them were successful, wouldn?t there be competition? Can anyone give me feel of how difficult it is to find a seller of used MH, then a buyer who is creditworthy and trustworthy enough to give a MH to with a small down and not have to go thru the headache / heartache of evicting him / her.

In a way, Lonnie answers some of these in the articles he;s written on tis website. But I would like to know what happens when you need to evict someone or repossess the MH. How does that work. And perhaps Lonnie has a huge advertising budget or is just plain well known for him evict someone on Friday and find another guy on Tuesday. But have anyone else found it to be that easy?

Re: Lonnie deal- questions - Posted by Philip

Posted by Philip on August 21, 2003 at 17:55:47:

There will be others doing this Jason. But they don’t have to be competitors…and there is still plenty to go around…mobiles that is…
Buy the books from Lonnie and read them, meanwhile build up your confidence and comfort level talking to sellers and PM’s.

No heartache getting rid of deadbeats - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on August 21, 2003 at 13:22:10:

If you sell the mobile home you would not evict a non-payer because they would not be a tenant. You would go through a foreclosure or reposession process. This process will vary from state to state and sometimes even within a state.

The Fastest, bestest, and cheapest way to find out what your states’s laws are on this subject is to just pay a visit to the managers of a good sized mobile home park and a lender who does mobile home loans. Bring donuts. You can get free and up to date information this way and save a bundle on Atty fees.

Finding a person who is credit worthy and trustworthy is a dificult and time comsuming exercise in futility. You will need a little practice to do it well. Other than Big Macs, there is no free lunch, you will have to pay your dues by making a few mistakes. Thats OK, as long as you learn from them and don’t give up. Even veteran investors have to take back a mobile from time to time. If you have gotten a decent downpayment and a few months payments before they go bad, then you should have most of your expenses covered anyway. If you learn to do it all well, you may even come out ahead from time to time when you repo and resell the mobile. What can be better than getting 3-4 downpayments on a single mobile?

Getting rid of non-payers may be a headache but its certainly not a heartache. Does my heart good to get rid of the buggers.

Just develop a healthy landlord mentality and kick’em while they are down. Are we having fun yet? :~)

Regards, doc

What is a lonnie deal? - Posted by Rob

Posted by Rob on October 28, 2003 at 22:30:20:

Hi, What is a lonnie deal?

Thanks, Rob

I don’t mind lending to people with… - Posted by Michael

Posted by Michael on August 21, 2003 at 13:33:04:

…less than perfect credit, but the PM’s are sometimes hard to convince to allow a buyer’s entry into their sanctuary with B-credit.

Sometimes you have to find a new park altogether.

Re: What is a lonnie deal? - Posted by Philip

Posted by Philip on October 28, 2003 at 22:40:26:

It is where you buy a mobile home at a low wholesale price and sell it at a little above market value, and carry the note.

mobile is worth = 6k
you buy for = 3k, because they need to sell and you negotiate them down in price
you sell for 8k because someone needs you to finance their mobile because they only have 1k for a down, and all the banks would turn them down.
You get 1k down, so now you only have 2k invested, but you take back a note payable to you for 7k, over say…36 months.
It is all described in Lonnie Scruggs book “Deals on Wheels”, which is available on this website for $30.00. It will teach $10,000.00 worth of know-how.

Re: What is a lonnie deal? - Posted by Rob Y

Posted by Rob Y on October 28, 2003 at 22:48:45:

Thanks a ton! I just ordered the book, I can’t wait to get it. I’m wanting to start in REI, but I’m so nervous. Maybe with mobile homes I’ll be less nervous because of the lower risk.

Thanks again!