Posted by Jeff on August 20, 2003 at 19:54:02:
James,
I am also a newbie and looking to get started, I am in Greensboro. Are you close? Jeff
Tarheel-T Proves Lonnie Right - Posted by Tony-VA/NC
Posted by Tony-VA/NC on June 30, 2003 at 23:02:30:
Lonnie has written and spoken that he does not believe in competitors. Heck, he did mobile home seminars in his back yard (well at a local hotel and then everyone went back to Lonnie?s house) for years. He often speaks about one Virginia investor who read his book and does a great number of ?Lonnie Deals? in Lonnie’s area and has done so for years. By not viewing this man as a competitor, Lonnie and he have both been able to do more business than had they simply horded their own deals and viewed one another as competitors.
The mobile home niche is quite unique and our expertise in this field flows quite easily into the land/home package deals. There are simply very few people who do these kinds of deals on a regular basis. When was the last time you say a late night infomercial about buying mobile homes on land?
Even with other investors working in your back yard, no one entity can do every deal. A recent experience I had may help prove this point.
I had been bidding on foreclosed land/home package that the bank had for sale via a realtor. The home was located in an area just outside of my focus but was within reason. I had gone back and forth a couple of times with the bank but they kept holding out for a higher price. I finally decided to let the home sit on the market for 60 days or so before making another offer.
During the negotiations, it became apparent to me that another investor was bidding (the listing on this property virtually eliminated a homeowner from buying). I learned long ago to buy only when I was the only solution.
A couple of weeks into that 60 days, I ran into Tarheel T. I quickly realized that he was the other investor bidding on this property. The bank had a day or so left to decide upon his final offer. Tarheel T won the bid. (Congrats Tarheel T!)
I referred Tarheel T to the rehab guys that I use and understand they have already saved him money compared to the other bids he received. These guys are proven and reliable.
I spoke with Tarheel T a few weeks later and he referred me to a property in my area that he thought might work for me. I called the seller that night and contracted to buy the property the next day. I closed on that property today.
My point is this. By not viewing one another as competitors, we both did better than he we attempted to invest in a void.
Tarheel not only won the property he wanted, he received a strong referral to make the necessary repairs (for less). And you can rest assured that I am taking Tarheel T to lunch (to slide him a referral thank you fee) for the property I bought.
As competitors, Tarheel and I would have cost each other money by unknowingly bidding on the same properties. Now I realize that for society?s sake, a competitive market is preferred, but in this case, we both would have likely reached our limits and walked away. The bank would still be holding that property. No one would be living there and the property would continue to deteriorate to the detriment of the neighborhood.
By association (and communication), we both bought properties we wanted and provided solutions to problem properties for the sellers and the communities.
Not all investors need be viewed as competitors. No one can do all the deals. But through mutual referrals, we can certainly try.
Thanks Tarheel,
I will give you a call when I get back from vacation next week.
Tony
Co-ompetition, is what one person calls it - Posted by Philip
Posted by Philip on July 02, 2003 at 09:25:10:
when people in the same field are competitors, but also co-operate to everyones advantage.
As new as I am this has allready happened once to me.
Good post, tony
Stay out of my parks! - Posted by Karl (Oh)
Posted by Karl (Oh) on July 01, 2003 at 22:34:46:
Good post, Tony.
Karl
Re: Tarheel-T Proves Lonnie Right - Posted by Tarheel T
Posted by Tarheel T on July 01, 2003 at 05:37:29:
Tony,
Congrats on the closing!!
I look forward to seeing how your deal turns out.
Sometimes it is best to pass on a deal that you don’t have the knowledge of how to approach, even though you know that it has the potential to be a nice one. And that is what I did on this occasion.
Competitors? No…I feel fortunate to have such proven experts as you and ScottS in my neighborhood to learn from, and bounce ideas off of. And lets not let it stop. We have helped each other on 2 deals. There are many more ahead!!
Tracy
Re: Tarheel-T Proves Lonnie Right - Posted by james_nc
Posted by james_nc on July 04, 2003 at 01:40:45:
Hello Tarheel T, what part of NC are you located. I am looking for someone to talk to about MH. Just getting started.
Thanks,
James