Q for Lonnie re: "How Good Can It Get?" - Posted by WindyCityRuss

Posted by Tony-VA on March 29, 2001 at 09:31:40:

Lonnie is holding his pre-convention workshop today in Atlanta.

As for your six homes. Your dad may want to reflect upon the amount of maintenance, repairs etc. these homes have cost him (both in time and cash).

The advantage of selling the homes to these people is that he will no longer be responsible for the upkeep of the homes. He can concentrate upon the park.

He should require the homeowners to have their own insurance that lists your dad (or company) as the loss payee.

I think the decision to sell should be based upon your dad’s goals. Does he want to try and reduce the time he spends fixing the homes?

Lonnie’s books discusss his transition to buying the (condo) lots and selling the homes. Renting the dirt only can be a lot less work (headache) but as the park owner, your dad will still have the park maintenance and collection responsibilities. Read through Lonnie’s books and perhaps even ask Ray Alcorn over at the commercial forum (here at this site). Ray’s family and companies have invested in mobile home parks for many years. (He too is at the convention this weeken).

Q for Lonnie re: “How Good Can It Get?” - Posted by WindyCityRuss

Posted by WindyCityRuss on March 26, 2001 at 12:42:25:

Hello Mr. Scruggs,

My name is Russ and I’m new to this site and even newer to this forum. I was just reading your article “How Good Can It Get?” and while I thoroughly enjoyed it I did have one question.

In the article you didn’t mention the cost of the lot. I was just wondering what the cost was so that I could ascertain the actual amount of profit that the deal made.

I’m new to REI and since discovering this site 3 days ago I’ve been on a marathon reading binge. I’ve printed up so much of the information at this site that I’ve already run thru a brand new toner cartridge in my printer!! ;D

Only since discovering this site have I glimpsed the beauty of mobile homes which is really disconcerting to me since a former client of mine is one of the largest mobile home operaters in IL. Seems I should’ve been talking more to him about what he did rather than about what I did!! (LESSON LEARNED!)

Re: Good Enough - Posted by Lonnie

Posted by Lonnie on March 26, 2001 at 17:57:32:

I paid $13,000 for this particular lot. It rents for $260, nets $220. We now have 27 lots in this park. My purchase prices range from $11,000 to $14,000, except for one at $15,000. (The figures in the story are for the MH only, they don’t include lot rent).

As for profit, it depends on how long Joanne & I live. Then my daughter and granddaughter as long as they live. So whatever it is, it’s “good enough”. If time permits, I’ll cover these lots at the workshop to show how renting dirt can be the best thing since pizza.

Best wishes,


Re: Good Enough - Posted by jim

Posted by jim on March 27, 2001 at 17:04:28:

LONNIE ,my dad has a small mobile home park in pa. well i wanted to know …do you think he should try to sale the mhs or just keep renting them?? there are only 6 homes. he owns the property and wants to add on more mhs i mean. u say its good to sale them and stop renting . it might be good but am thinking of selling them… i am the biz manager. i had told him it seems if he would sale them he would make the same from lot rent as he would renting…cause of paying taxes etc. if they owned them they would have to pay taxes and yearly ins. ok looking forward to ur reply. ty

Re lonnie would u answer ? please. - Posted by jim

Posted by jim on March 28, 2001 at 12:38:09:

lonnie my dad has a small mh site with only 6 lots… do u think he should sell the homes or keep renting them… i told him at 150.00 a month lot rent we would make the same if we rented them …u know with all taxes and ins on all them … ty lonnie, just orederd ur book deals on wheels cant wait to read it