Posted by Philip on September 07, 2003 at 23:19:25:
Really. The schools need to teach it. Then it will be up to the people to have the self-control to use it.
Also, people need to be taught to be ready to be generous. Greed is NOT good. I know Lonnie Scruggs agrees with that notion basically.
Philip
random thoughts… - Posted by Greg Meade
Posted by Greg Meade on September 07, 2003 at 09:07:03:
had lunch with another lonnie dealer ( called an Ernest Dealer in fl) in leesburg, FL on thursday and he’s had all the books for several months and has decided not to do any deals period. Am currently putting my first land home pac together so had some time to think on some of his ideas. He figged only one out of 100 who bought books ever did a deal and he seemed kinda bitter about that fact. He was wealthy and retired and probably one of the most negative people i’ve ever met. Buying Lonnie’s and Ernest’s material was one of the very best things I ever did. I’ve only done two lonnie style deals , but have done many repo flips, rehabs, etc.and i find i use lonnies way of thinking in most everything i do now. Every two years for 18 years i have bought a new F150 XLT pickup for 20-23k. Get 12k or so for trade in and finance remainde for 2 years at low interest rate. Made my last payment on this go around in aug and am going to try something new. Will drive this paid off truck for another year or two and then look for a nice one year old repo and pay cash for it. might not get the exact color i want, or the new car smell, but i can live without ever having a car payment again. It was nothing but a habit (abd an expensive on at that). I resist change like most, but this one decision paid for all of lonnie/ ernest material. I may never get rich off this material, but it has altered my way of thinking forever. My advise to newbies (like me) used to be do a deal or two if you like do more, etc. My advise now is buy the books and read them twice and don’t sweat it if you never do a deal!
Re: a bunch of cheapskates. - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 07, 2003 at 11:38:10:
When it comes to cost control, I think I’ve got y’all beat by a country mile.
For goodness sakes, can’t you folks ever change? Why do you AUTOMATICALLY think that things HAVE TO cost you money.
The best price isn’t a low POSITIVE number, it is a high NEGTIVE one. Why do you assume that you can’t get something for free and automatically expect to pay for everything?
I have NEVATIVE vehicle costs and you could to if you wanted to bad enough to do what I do.
I generally drive a clean, low miles, late 80’s 4 cylinder Japaneese car. I buy and sell such vehicles. I have learned where to buy wholesale and where to sell retail. For my knowlege, I can, and do, drive free cars. I haven’t paid to license a vehicle in over 10 years. I often drive a car 20k-30k miles then sell it for more than I paid for it. Zero depreciation or negative depreciation if you can imagine such a thing.
You can often do the same thing with real estate and mobile homes. I have gotten many older mobile homes free and even have been paid to take a few. I have subdivided small parcels into 4 lots and sold off two and gotten the remaining two free. I have traded $500 tax sale lots for $5k worth of labor and even gotten $500 in boot (boot is where the other party adds some of his money to the labor or what ever else he is giving you) on one deal. If that isn’t close to free land, mobiles, and cars, I don’t know what is.
It is not always necessary to pay for things unless your thinking is so channelized into just looking for deals with positive costs rather than negative ones.
NEGATIVE costs: that is the cutting edge, in my opinion. I was just going to say IMHO, but why lie to you?
Regards, doc
Cheap used cars now - Posted by Bob H (MO)
Posted by Bob H (MO) on September 07, 2003 at 11:05:33:
With all of the new car dealers offering 0% financing, why would anyone want to buy a used car right now? I personally haven’t done much looking for a used car right now as I prefer not to have a car payment but I suggested to my parents that they should look at a 2-3 year old car instead of the new ones they were looking at. They were looking at mid-grade cars around $23k but once they started looking at used cars they were able to get a top of the line 2 yr old cadillac for about $7k cheaper than the new mid-grade! They’re still tickled pink that they’re actually driving a caddy!
With current market conditions, this seems like it would be a perfect time to buy a good used vehicle at a low price because there aren’t as many used buyers as sellers right now-just use some of Lonnies bargaining techniques and get a real low price. Not sure if a Lonnie deal selling on time would work because of many buyers moving to new cars over used though.
Hit the Nail On the head… - Posted by Briton (IN)
Posted by Briton (IN) on September 07, 2003 at 09:25:18:
Greg. Think about this. You lost 10k every 2 years to a truck? I bought my 1995 chevy for 4300$ (nice running truck, just 2x4, and stick, no cd ect.) And i will drive that truck for 6 years, with a total cost of MABYE 8k including repairs ect. Now think in 6 years you lost 30k in a trucks, and i lost 8. I am not being a snob. Do not take it that way. I am glad you are thinking like this now. But that is how i have managed to buy so many property at a young age. If i dont need it, I DONT BUY IT!. I still get where i am going! But anyways, to noobs, greg is right, its a way of life that is a change. Its not just a “deal” or 2. Good point Greg, Briton (IN)
Doc, i have a question - Posted by Briton (IN)
Posted by Briton (IN) on September 07, 2003 at 15:18:42:
I have often thought of trying to do such buying and selling with cars from time to time. I just get scared, because people can lie threw their teeth when it comes to cars. Where do you look for such cars? Whats your secret? Thanks, Briton (IN)
country mile and a half! - Posted by Steve-WA
Posted by Steve-WA on September 07, 2003 at 11:48:20:
all those Big Macs? Every one of them paid for by someone else. And that’s a LOT of BMs! 
Doc, you have the edge on profit for something that’s free to you; you is an original intellectual capital entrepreneur!
Thanks for your refreshing viewpoints!
you’re an interesting guy doc/NT - Posted by Greg Meade
Posted by Greg Meade on September 07, 2003 at 11:44:23:
`
O yea, BTW, think about this… - Posted by Briton (IN)
Posted by Briton (IN) on September 07, 2003 at 09:55:09:
Greg i posted my post above, then went and took a shower, and i was thinking about your situation, and i had to post more. 18 years! that is almost 100k in trucks gone! Try this. save that truck for 10 years total. Every month continue to make that payment into a seperate bank account. After 3 or 4 years, you could have plenty of money for a downpayment on a park,A house, a…whatever! And when that investment is paid off, it will buy you a new truck. I only posted this idea, cause i just got a friend to stop smoking, and do the same thing with his money. He is saving good money off cig money! Just a thought, Briton (IN)
Re: Briton, I have an answer - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 07, 2003 at 17:00:57:
I look the same place for cars as I do for real estate: everywhere.
I look for motivated sellers and fixer uppers, just as with mobile homes and sfrs. I often buy cars that aren’t running. Such sellers are generally highly motivated because there are very few people who will buy a car that doesn’t run. They are all afraid to take a calculated risk. People are funny. Some are firemen or policemen or soldiers or munitions experts or bio/chemical weopens research scientists. They risk their lives every day, but all are afraid to take a $200 risk when buying a $1,000 car that doesn’t run. Go figure.
Just like with buying rehab properties, the sales price of non-running cars is DEEPLY discounted because of the work needed and the risk of unknown problems. When NO buyers show up, the sellers get desperate and will usually accept ANY offer over what the junk yard will pay (which is about $100). You can’t believe how many thousand dollar cars I get for $200 ea.
In time you learn to question the sellers just as you would question prospective tenants. You learn certain things that your experience suggests will probably be true about either people or cars, depending on their answers. You try to figure out who is lying and who isn’t. You learn to be a fairly keen judge of people, and their veracity. You check things out for yourself.
You eventually learn that certain types of repairs are quick and cheap to make and others are just the opposite. Its the same as when analysing a rehab house. You estimate various repair costs. You know how much it costs to replace a roof, carpet, or to repaint. The same is true for cars. Sellers often don’t distinguish between different types of repairs and they all seem to figure it will cost too much to fix unknown problems. The same types of repairs will cost different amounts from one brand of cars to another. It is a knowlege game. I know more about car repairs that the sellers that I buy from. Guess who wins in any knowledge game? I know that it is 10 times harder to replace a head gasket on an 87 Camry than on an 87 Civic. Guess which one I’ll buy and which one I won’t. The sellers don’t know which are harder or easier on to fix. I do. They price them all the same (based on appearance or how much they have ‘invested’ in them). Ever notice how they always call their lost money an investment? Car sellers are just like mobile home sellers. They all want three times what their car or mobile home is worth, at first. I make a dozen low-ball offers (over the phone) for every one I buy, same as with mobile homes.
Fortunately I get paid for what I know, not what I do.
My favorite non-runner is a late 80s Honda or Toyota that still runs but has a blown head gasket. It has water in the oil and when running blows out a huge cloud of white smoke (steam) from the exhause pipe. To a non-mechanic that sure looks like an expensive problem to fix. I get that nice looking 87 Honda Accord, that was just relicensed last month, and has $200 worth of new tires on it, for $200.
$4, and half a bottle of CRC Copper Block Seal poured in the radiator and that $200 car suddenly stops smoking completely and is now worth $1,000. Hummm. The cars make nice trades too, like for work moving and setting up mobile homes, rehabwork etc.
When trading I use the blue book retail value which might be about $1,500 on a typical car.
I am an unlicensed bandit dealer. My costs are low. I work out of my pockets and cell phone, whereever I am. My car lot is down on the corner somewhere. I don’t know who owns it but I sure do appreciate the free use of it, to display my cars on.
Incidentally, I get all of my car repairs done free. But I guess you probably could have figured that for yourself. My mechanic doesn’t have my buying/selling skills so about every 3rd or 4th car or so I buy him one, using his money. After it is fixed I sell it for him and give him all of the money it brings in, in exchange for him repairing my cars. I could make the same deal with my rehab guy.
So much business knowlege is transferable from one business to another. Law, accounting, taxes, advertising, salesmanship, cost control, handling empoyees, negotiation skills etc. What a great way to go through life: having business skills.
It sure beats working for a living.
Regards, doc
Please don’t use the abbreviation BM - Posted by Philip
Posted by Philip on September 07, 2003 at 17:28:22:
In a pharmacy it is Bowel Movement…which people who live in moible homes have just as much as the rest of the world.
Say, Greg, do you know my shrink? - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on September 07, 2003 at 12:23:50:
He says the same thing.
Re: briton… - Posted by Greg Meade
Posted by Greg Meade on September 07, 2003 at 10:34:44:
thanks for pointing out the quantity of my mistake (LOL)what you say is true and most humbling. It is not that Anyone on this post is dumb, it is we are unschooled. There is absolutely nothing we can do 'bout past wrong thinking. But today we can try new things and get out of our self imposed comfort zones. Very cool feeling…good investing all!!!
Motor Millions - Posted by Bart
Posted by Bart on September 08, 2003 at 07:28:22:
Some questions for you Doc…
Have you seen Motor Millions that teaches people to do what you do?
If so, what do you think of it?
Have you ever had the Copper Block Seal stop up the radiator?
Interesting thinking doc, thank you NT - Posted by Briton (IN)
Posted by Briton (IN) on September 07, 2003 at 20:06:45:
nt
double meaning - get it? nt - Posted by Steve-WA
Posted by Steve-WA on September 07, 2003 at 18:36:45:
.
cheap truck, wise money use, and wives - Posted by Philip
Posted by Philip on September 07, 2003 at 10:44:02:
I drove a 1,500.00 dollar s-10 for long enough that my cost was about 9 cents per mile to drive it. That is purchase, maintenance, gas, everything.
I bought my wife a new pickup and we still arent below 99 cents a mile just because of the new sticker price and less miles driven.
Money spent on new cars can be unwise.
BUT, money spent on buying your wife a new vehicle can add years to your life span and happiness to your home!
Your wife stops sweetening your oatmeal and coffee with anti-freeze!
Philip
Yes, lots of both kinds of BM’s nt - Posted by Philip
Posted by Philip on September 07, 2003 at 18:38:59:
n
Re: cheap truck, wise money use, and wives - Posted by Al (Wi)
Posted by Al (Wi) on September 07, 2003 at 20:19:03:
Some seminar guru once said, “don’t spend your money on assets that depreciate in value”. I kept every vehicle we bought for 8-10 years so I could buy rental property. I’m retired now but the wife managed to sneak in a new Tahoe last year. It’s depreciating, but I’m not.
Re: cheap truck, wise money use, and wives - Posted by Philip
Posted by Philip on September 07, 2003 at 22:02:37:
Exactly. I never believed in buying new, but the 2 times I have, it has been to “buy off” my wife! Once, when we were younger, and she wrecked that new Honda twice.
Then, I bought a truck with 1,300 miles on it at 12k instead of 23k like a brand new one, just this last year…again so she would be happy. She hauled a welder for our son and dug grooves in the bed in the second month!
She had nothing as a child and wants a few nice things now and that is ok…but buying new just goes against my grain.
But anti-freeze is not near as nice of sweetener as sugar and it shortens your life span!
Philip