I know next to nothing about mobile home investing methods, but am reading the material here as I try and figure out what I want to do in RE.
I attended a RE seminar today, where the focus was on individual houses and seller financing. Mobile Homes were not even mentioned, and it seems to be an area that most investors shun for some reason.
I keep seeing the term “Lonnie deals”. What are those things?
Finally, I have quite a bit of cash but little experience and even less time. I’d like to start out in RE, and am wondering if Mobile Homes is a better place to start than more traditional properties (like houses or duplexes).
Lately Iv’e bene trying to decide the direction I want to head with my RE career. I see people invest in several areas of Mobile Homes;
-lonnie deals
-land/home packages
-owning parks big and small
-developing lots for sale
-etc.
Do all you guys out there concentrate on one area such as just lonnie deals, or do you guys also mix in a few lot rentals and some land/home package deals? Also, does anybody use MH as a way to introduce yourself to RE and then move into larger areas of RE such as commercial?
Just curious to see what direction people are taking in MH’s.
Ryan,
IMHO the best way to get started in real estate investing (in the broad sense) is doing standard Lonnie deals and then branching out. Lonnie deals (when you stay focused and do it “according to the book”) let you make mistakes and learn without the huge exposure you have using other investing niches. They let you build a financial foundation that will support your other investing activities (so it’s not a catastrophe when you stub your toe on a bad deal, and you will). They help you build the network of professionals that you need to be successful. You’ll build relationships with lots of people outside the mobile home investing arena: bankers, attorneys, realtors, accountants. Lonnie’s books are the primers that will teach you basic concepts and skills that will serve you in all areas of investing.
Moving into land / home deals, parks etc is just this type of expansion. Call it a natural progression if you will. It could include houses, multi’s, commercial properties, developing… You’ll find that you run across opportunities just because you’re out there in the market, talking to people in the business.
For you novices, the big question is “Where do I begin?” Lonnie has drawn a BIG arrow pointing to the starting line. Don’t get distracted. Start with, and stick to, Lonnie deals for a year or so, then start looking into other areas of REI that interest you. In a relatively short time, you’ll look back and be amazed at what you’ve accomplished.
All the best, Lyal
Re: Mobile Home Investing Methods - Posted by ScottS(NC)
Posted by ScottS(NC) on August 15, 2003 at 07:59:46:
Ryan,
I am what I like to call an opportunist in other words I go where the market is selling and try to buy and when everyone wants a certain thing mobile,land,park ect… I sell. Here in my area of NC right now for example Doublewides on land are selling cheaply the market is flooded with people trying to sell. I am in the process of closing on a repo DW on one third of an acre that I am very excited about. As you watch your market you will notice the lemming effect. It seems everyone runs in one direction. Mobiles in my park for example, this month when I ran an add to rent, it recieved 20-30 calls. I actually had 3 diffrent people lined up physically waiting with $700 in hand when I arrived to show my oldest junkiest rental in my park. I thought there was going to be a brawl over it. Six months ago when I ran an add I got a bunch of lookers but it took two weeks to fill it.
This is no diffrent then Warren Buffet playing the stock market, watch whats being dumped in your market and buy it cheap. I have months where in the papers there are NO deals whatsoever than the next month there will be several. Each time the type of deal varies, could be Lonnie deals or land home’s but they alway seem to come in waves. I have a partner to throw my excess to. He does the same for me, we have other investors we give leads and get leads from.
Remember to think in the way of abundance, give up what you can’t do. Don’t try to make money on deals that you can’t close just give them to another for a small fee $500 or so if you have time in them. They will see you can “share the ball” and will give it back when they have excess, you will get more deals overall this way trust me. To many folks out there think they must hoard every deal. That’s ashame because you will never recieve if you don’t give first.
Ryan, start with Lonnie deals these are cheap easy and a great starter program. After 4-5 of these pick-up a land home deal, play around with renting the whole package for awhile. Then go on to doublewides and parks/commercial. This way you learn each segment of the industry. But be like the Crocodile lying in wait for opportunity then striking with speed and well practiced efficiency. Croc’s don’t go out looking for a certain type of dinner. They lay under the surface waiting for whatever opportunity brings them. Then they deal with it, thats how you should be striking where opportunity knocks whatever that may be. We must go against the crowd to reap rewards that are better than average. Take Care ScottS(NC)