Lonnie deals in Los Angeles County - Posted by Rob (CA)


#1

Posted by Dave (CA) on December 28, 1998 at 16:27:42:

Hey Dirk,

Have you done any Lonnie deals yet? Are you planning to get licensed? I received the info from HCD but haven’t had a chance to get through it yet.

Dave


#2

Lonnie deals in Los Angeles County - Posted by Rob (CA)

Posted by Rob (CA) on December 27, 1998 at 21:17:06:

I have placed an order for Lonnie Scruggs’ “Deals on Wheels” , but I have heard that any legal advice inside refers to the state of Virginia and I live in California. This may not seem like a big deal, however if you like to modify your cars you know how strict this state is about everything! That is why I have a few questions if any other Californians can help me out?

  1. Can you rent mobile homes in LA county?
  2. Is it a good idea to control a mobile home through a lease option?
  3. I am not even a beginner in this business, I have not one transaction under my belt! Where should I begin with very limited capital?
  4. I have been thinking of sandwich leasing, trying to flip notes, anything to get my foot in the door. Soon I will be working along with college should I wait until I can build some capital?

Thank you ahead of time
Rob


#3

Re: Lonnie deals in Los Angeles County - Posted by raelynn mitchell

Posted by raelynn mitchell on December 28, 1998 at 23:53:24:

Great questions. When I first took a look at MH investing (a few months ago), it seemed the ultimate way to go, and that lease optioning would be a terrific way 2 go. I asked some of the same questions. One thing that JP impressed upon me is this:

If you can find a park that is willing to allow renters, when you need to occasionally (we hope) evict someone, it will take mucho time and expense, as they are a tenant just like any other. California is considered a tenants’ rights state (as opposed laws in other states), meaning the laws heavily favor the renter, not the landlord. JP informed me that it is much easier to repossess a MH than it is to evict a tenant, and takes less time before you get possession again. A MH is personal property, not real estate, and therefore faster and easier to get physical possession when you sell on contract than if you rent to a tenant.

I’m not saying lease options don’t or won’t work, but before you give serious consideration to L/O-ing, make sure you understand the legal requirements and entire process of evictions. It can take up to 4 months or longer to obtain possession–IF the tenant doesn’t file bankrupcy. Repo-ing, on the other hand, takes somewhere near half that. And another factor to consider: while you’ve got a deadbeat tenant, lot rent is probably not getting paid, either, and since you are the owner, you get to pay that while they live rent-free for as long as they can. And then when you finally get possession, there may be damages to the MH that need to be fixed, which means even more $$$ out of pocket.

Just food for thought.

Good luck with your new venture, whatever you decide :-}


#4

Re: Another Viewpoint - Posted by Jim Simons SATX

Posted by Jim Simons SATX on December 28, 1998 at 16:49:35:

Hi Rob,

Dirk has some good advice, Lonnie’s material contains a great amount of very useful information.

However, BEFORE you buy any Books, Courses or Insturctional Material, I would highly suggest you find out all you can about the Rules, Regulation, Legalities, etc. that apply for the State in which you live.

Why spend money and time on How To Do Something, just to find out that later that the way you are required to do it, isn’t worth the Time, Effort or Expense as compared to the profit you stand to make.

Don’t get me wrong. Lonnie has a Dealers License in Virginia. It may be worth getting one here where I live in Texas. (I’m still trying to find out). And it may be worth it where you live. However, I think it’s better knowing before you get too much invested.

  • Just my opinion -

#5

Re: Lonnie deals in Los Angeles County - Posted by Dirk Roach

Posted by Dirk Roach on December 27, 1998 at 22:02:36:

Hi Rob,
I’m in El Cajon, just outside of San Diego.
When you recieve Lonnie’s books (and absorb them) the majority of your questions shall be answered. Just be patient for a day or two. In the meanwhile, I would read all the posts concerning Mobile Homes, and all of the success and how-to articles on this site. Also the Chat room, is a super resorce.
After you read Lonnie’s books your next question will probably be in reguards to licenses and whatnot. THEN you will need to check out your local HCD (Housing and Community development) office, they are the state branch (here in CA) whom you will need to get your licenses and title transfer forms (etc.) through.
Also try a BigBook.com search to see how many parks are in your area (I would try a 20 mile radius). Then your next step (after reading the books) will be to drive the parks, and start negotiations with Mobile Home For Sale by Owners. There are a lot out there, but you have to talk to them, that is the key. The main point it seems that everyone misses is that they don’t get out in the parks. If your negotiating skills are not that great, start reading a lot about that. Personally I think that Roger Dawson’s books are about the best (that I have come across).
You should be excited and I imagine that in a week or so we will be seeing you post again in regards to your first deal.
Good Luck,
Dirk