Temporary Insanity, Part 2 - Posted by Lonnie

Posted by Steve W (WA) on February 27, 2002 at 07:46:50:

Got a call from a RE agent one day about a bank repo in this park - called PM and introduced myself, told her I would be coming in the park to look at the repo, and then got into the “here’s what I do” banter, which always includes asking about other homes for sale or that may soon be, including those with no signs. That produced a lead, and a “well, this guy wants to do some remodeling, and then sell later. It’s empty now.” I took a walkaround tour of that one, in the dark, and took cursory notes; who knows when “in the future” might be?
Also checked in with the PM upon arrival, gave her some business cards.

About 3 wks later, PM calls: "That guy? he hasn’t been around for months, and the out-of-state owners are owed a year of payments. They called me and just want O-U-T! I gave them your number and strongly recommended that they call you (What’s that juicy red smell? Oh, yeah . . . BLOOD!). They did call - about 20 minutes later.

I did the phone work and the leg work to get the proper paperwork, and should receive back it via FedEx tomorrow, signed sealed and delivered, only needing a trip to the courthouse to see the Treasurer (pay back property tax) and the DOL (title transfer). The signed papers are my proof of ownership - courthouse just the necessary formality. Only blind luck on the bigscreen . . . but what luck!

Putting the horn away (my own, that I seem to be blowing . . . !), you will notice a theme here common to a multitude of threads on this board:

Form a relationship with the Park Manager!(Get it? In the stars!)

Sometimes I feel like I am being a pain in the neck, but by calling the PM every time progress is made, checking in every time I come to their park, every time I have a solid, non-nuisance question, I am in their minds as a PROBLEM SOLVER!

BTW, I am this close [teeny-tiny finger pinch] to getting March rent free for this place, since I am relieving the debt owed for 2 months back rent, in return for minor rehab (ceiling work + paint + cleaning) and returning it to the rental pool. How am I doing this? It’s in the stars. . .

BTW, . . . the bank repo? They want 12.5K for a 1976 DW, I offered 4K (still high), they countered 10K. Mr. Banker says: “Yum, yum! I must sure like the tast of paying rent on this empty, non-performing asset, because I’M EATING IT!” [snicker snicker]

Temporary Insanity, Part 2 - Posted by Lonnie

Posted by Lonnie on February 26, 2002 at 07:48:24:

Hi Folks,

I first posted this article about a year and half ago, and based on the present conditions in the stock market, and the ?recession? etc, I think the message I?m trying to get across in this article is even more appropriate today than it was then.

When I first posted this, (?Temporary Insanity?) you wouldn?t believe the blasting I got from some of the stock market players. One person said that I was implying that he?s stupid. Another felt that I?m simply trying to sell books and seminars. Another says ?Don?t act like everyone is stupid out here in the ?real world?. Then goes on to say, ?You may want to sell more books and tapes, but don?t make a stupid comment like investing in the stock market is like playing casinos?. And some agreed with my viewpoint.

I?ve always felt the stock market was the world?s biggest gambling casino, and I?m even more convinced today that?s true. So, anyone care to share your thoughts on this? Go ahead, I?m giving you equal time to convince me I?m wrong.

Original Post ?Temporary Insanity?

We?ve had several loans pay off within the past couple of months, and not having an immediate place to invest the money, we just parked it in our local bank until we could find something better to do with it. Needless to say, if you do that long enough, you?ll starve to death. But talk about a trip to depression land…Joanne and I just had one.

I got the bright(??) idea of asking my banker what she could recommend that would give us a better return than the saving account we had the money in. But also, the liquidity of pulling it out at a moment?s notice without penalty, if we should find an investment to put the money into.

We spent about 30 minutes listening to the bankers suggestions. After leaving her office, I told Joanne I felt we?d be better off to keep our money in a paper sack. At least we wouldn?t be giving up control and depending on someone who thinks 4%-6% is a good return. But this was another good lesson on why many people stay broke. If you don?t learn how to do smart things with your money, someone else will…

The banker we talked to today is also a licensed stockbroker. A very nice lady and I suppose she spent a good deal of time learning her trade. And I got the feeling that she really knew her business. But during the whole time she was talking, the thought kept going through my mind that I probably pay more in taxes each year than she makes. And I?m not saying this to brag, but to illustrate how our income is directly related to what we are willing to learn and apply in the free market place.

This lady showed us how we could open up a Limited Term Mutual Fund, leave the money in for 3 years and earn 4.24% tax free. If we leave it in for 5 years, it goes to a whopping 4.53%. She explained since we would pay no taxes, this would actually equate to about a 6-6.5% return. And there would only be a 1% fee to open the account. Wow! I could hardly contain myself. Or, we could open a Limited Term Fund for 5 years and earn 5.99%. But with this type of account, we would pay taxes on our earnings. (Isn’t that exciting?)

And then we get home and guess what?s waiting for us?..Mobile home checks! Maybe that trip to the bank was just what I needed to jolt me out of my coma and re-charge my batteries. We?ve been making obscene returns on mobile home deals for years. In fact, I?m closing on a MH deal tomorrow that?s yielding 216%, will close on another one Monday yielding 92%. And here I am asking a banker for financial advice. Must be this blasted heat; I?ve got to start wearing a hat when I go outside. For a minute there I forgot the two rules I?ve tried to live by…Rule #1.If you want to stay healthy, stay away from doctors. Rule #2. If you want to make money, don?t take financial advice from bankers, or lawyers.

Now that I?ve had a good cup of coffee, opened up the mail (checks), and regained consciousness, I feel much better. Think I?ll go do another MH deal before it gets too hot.

Best to all.


PS I?m looking forward to seeing all of you at the MH workshop, and spending the weekend with you at the convention. If you haven?t signed up yet, better get on the stick. I just talked to JP over the weekend and she says registrations are running way ahead of last year and it will be a full house. And, there?s not many hotel rooms left now. But if you can?t make it, good luck on your stocks.

Re: Temporary Insanity, Part 2 - Posted by ScottC (NV)

Posted by ScottC (NV) on February 26, 2002 at 16:03:46:

As if you didn’t make the point well enough, excite.com dramatized your point.

I was on excite.com doing some stock research. I went into the stock screening area, and there was a single ad on the page. It was for an online casino!

I wonder . . . are they trying to send us a message? :wink:

Well put . . . - Posted by Steve W (WA)

Posted by Steve W (WA) on February 26, 2002 at 08:01:23:

Back 3 years ago when there was the big boom in the market, knowing no better, we thought we would command our own destiny, opened an online brokerage account, did the research and bought. Now, we are down a little, but we hold all kinds of shares that cannot be sold! Liquidity? Solidity!

Percentages rock outside of the real world, and I find that the most difficult part of doing the Lonnie biz is containing myself! I get so worked up, and want to tell everybody! but:
(a) there are those naysayers who know no better, and
(b) Lonnie is right when he says they will think you are “inhaling wacky weeds!”

PS talk about your fringe benefits: for the cost of taxes and back lot rent (~$1300), this week I am picking up a 18 yr old DW with contents, including a new BIG screen TV, that easily costs twice what I’m paying!

[ssshhhh . . . this business would never work . . .ssshhh . . .!!!]

How did you find that deal? (nt) - Posted by Jerry Freeman

Posted by Jerry Freeman on February 26, 2002 at 18:04:39: