Should I... or shouldn't I? - Posted by Jeff

Posted by Karl (Oh) on January 28, 2002 at 01:06:26:


I just did a deal like this the other week. I sold a home to a woman and created a note, she turned around and sold my note and made a very nice profit. (Just kidding).

If this guy sells you the home and carries back a note, its not your note to sell. Plus he already has a mortgage on the home, so any kind of note doesn?t make sense, unless there?s a ton of equity. Perhaps a lease/option if the numbers work out, but I wouldn?t recommend it for your first deal.

When this guy said $10k, and you said no way, I?ll give you $8k, what was that based on? Do you know what your market will let you sell the home for? You left that out of your post. Without that info, we can?t evaluate your deal.

By the way, I checked out your website. Those are some amazing things you?re going to do for the sellers that call you. What sort of critique of your website are you looking for? If you’ve never done a deal, and you’ve only read DOW, I have to assume that you have no idea how you’re going to do all the things you say you can do. You certainly don’t have a program that can do all of that. And you don’t need to list all the reasons why someone may want to get rid of their home. If they’re motivated to sell, they don’t need you to tell them why. They already know. And the pictures of brand new modulars homes probably won’t attract the kind of sellers that you’ll really be working with if you’re going to do Lonnie Deals. You want the cheapos, not the newer homes. It sounds like you?re going to be using a lot of different strategies. And you haven?t done your first deal yet? I’m not trying to come down on you, I just would suggest backing off a bit, and just getting a few regular Lonnie Deals under your belt, believe me, you?ll have your hands full just doing that. This is a simple concept, don’t make it too complicated. You find motivated sellers, buy cheap for cash, sell high with owner financing. It will be more difficult to buy cheap for cash if you’re also promising to pay close to full value to your sellers. Forget the bells and whistles, especially when you’re starting out. After you figure out what works and what doesn?t, then branch out to other strategies, if you think you need to. Your website pitch covers way more than you’re able to handle right now if you?re just starting out.

By the way, I sold two trailer this weekend, one for $7500, the other for $10,500. And I bought one for $1000. All three were right out of the pages of DOW. Stick with whats in the book.

But as always, thats just my opinion.

Karl Kleiner

Should I… or shouldn’t I? - Posted by Jeff

Posted by Jeff on January 27, 2002 at 22:00:26:

I am working on doing my first deal. I have read Lonnie’s book and it doesn’t qualify as a Lonnie deal but I am honestly seeking opinions from those of you that are more qualified than me.

I have found an immaculate 14 X 70 2BR, 2BA the guy wanted 10,000 and I told him no way could I do that. Anyways… I have talked the guy down to 8,000. He owes 9800 on it, he showed me the paperwork. Anyways, he wants 8000, I pay about 2500 down and he gives me a note for the rest… payable around 390 a month. He told me that he had someone that wanted to buy it but the bank would only do it at some outrageous rate becasue she just got divorced. The lot rent is $125 a month.

I really think that I could make some money on the deal. It wouldn’t be an immediate thing, but maybe over a 24 month deal since I would have to be paying the note and the person financing me the 2500 down payment. What I’m thinking is that I may be able to sell the note and make a decent return… I wouldnt get rich… but it would be a start. How hard is it to sell a note? How do paper traders like to have notes written? I know about but are there other outlets to sell such paper?

I told this guy that I would let him know something in a couple of days and my source for the 2500 down payment says that it will be no problem for the cash.

So… advice… comments… please :slight_smile:


Re: Should I… or shouldn’t I? - Posted by Chuck (AZ)

Posted by Chuck (AZ) on January 28, 2002 at 01:31:53:

You got part of it right… the part.

I’d concure with Karl’s assessment… 100%.

Enough said.