Posted by Kristine on May 31, 2000 at 19:33:31:
Oh boy. The link above is exactly the reason I have been avoiding message boards until this one. Trekkies, man, they are everywhere. Is there a more concise version of the Ferengi Rules of Acquisition? I am willing to give you the benefit of the doubt about these, but that site is a little unwieldy.
Thanks for your time and attention to this matter.
Yours in reality checking,
Kristine
the ad worked - Posted by art in wv
Posted by art in wv on May 30, 2000 at 21:09:04:
This is a great forum. I read it for awhile before I bought Lonnie’s books. Read the books, posted a couple of questions and got good answers. I’ve toured some of the MH parks in my area and discovered 16 for sale signs. Another 16 MH’s were advertised in local papers. I ran this test ad on Sunday “WILL FINANCE $4500, $200 down, 36 payments of $144.37” I now have a list of 9 buyers that want to own their own home. Next step is to contact the sellers and match up my buyers. Stay tuned.
Just a question… - Posted by Dirk Roach
Posted by Dirk Roach on May 31, 2000 at 14:50:11:
Dear Art,
I’m not trying to be smart. However I was wondering…Why did you limit yourself?
Also have you established any relationships with any of the Park managers?
Dirk
Just a caution, Art… - Posted by soapymac
Posted by soapymac on May 31, 2000 at 08:15:49:
in that if you put the terms in your ad, a bureaucrat may spot it and ask you for your dealer and loan company paperwork.
I know that is not your intent from the previous posts. However, you could run afoul(sp?) of state banking laws and not even realize it.
I would also ask you why you are limiting yourself to these figures? Those nine buyers…would they have been willing to pay MORE?
I’m not taking you to task here; you did something, and the results will be “good enough,” I am sure. It just seems like you sorta boxed yourself in to a fixed amount of profit, which violates the Ferengi Rules of Acquisition.
Cordially,
Roy MacLean
“soapymac”
What would you suggest that is less limiting? Thanks. (nt) - Posted by RobertR CO
Posted by RobertR CO on June 02, 2000 at 12:51:30:
nt
Art’s reply - Posted by Art in WV
Posted by Art in WV on June 01, 2000 at 22:21:10:
Dirk–Not sure what you mean by limiting myself. I’m testing the water before I leap in and expose some money. After some market research–checking out whats for sale and good response to my test ad–I am convinced the Deals on Wheels concept will really work. (Thank you Lonnie for sharing) I have not yet spoken to a PM but I am sold on the value of building a relationship with them–high priority on my to do list.
Art
Art’s reply - Posted by Art in WV
Posted by Art in WV on June 01, 2000 at 22:37:26:
Soapymac–Thanks for the advice on attracting the attention of a regulator. Ironically, I am one in my other life (don’t tell anyone, lol) Any advice on how not to violate, by way of advertising, any of the truth in lending laws would be greatly appreciated. I thought ferengi was a beatnik poet from the 50’s. I’ll check the url and find out.
Art
Re: Just a caution, Art… - Posted by Kristine
Posted by Kristine on May 31, 2000 at 13:45:47:
Just dying of curiousity here. What are the "Ferengi Rules of Acquisition? Don’t want to be left out on this one.
Thanks.
Sincerely,
Kristine
Re: Just a caution, Art… - Posted by Jason Jeffries
Posted by Jason Jeffries on May 31, 2000 at 12:49:34:
I am going to start financing mobile homes in Texas. Does anyone know if you need a license in order to do this? If so, where do I go to get one?
I was just wondering… - Posted by Dirk Roach
Posted by Dirk Roach on June 02, 2000 at 13:59:49:
what prompted him to box himself in by naming numbers and terms and such?
See now he has limited himself in on the buy price, the sell price, the amount down, the term, and the monthly payment.
Of course one could bait and switch, potential buyers with something like :
“Oh, I’m sorry Mr./Mrs. Jones, that one just sold, however if you tell me what you’re looking for, what area and what you have to work with I may be able to do something, as I do have these deals all the time…etc”
However the problem with using a “teaser ad” like the one he has ran is that it sets up a “tainted” perspective on the part of the potential buyer. Meaning that the potential buyer is going to name down payments and what not similar to what he/she has read in the original ad.
It’s a psychological thing. He limited himself in a negotiating standpoint, by throwing TOO much information out there.
Or as my grandfather used to say, if you use too much bait on your hook, the fish can’t get it.
Of course all is not lost at all. he simply has a few tainted buyers now, and as we all know buyers lists wilt pretty quickly anyhow.
My advice would be to simply reword the ad, omitting all this price, and terms stuff and let it fly.
Because frankly, lets say someone does call on the ad and has only $4500.00 to put down as a down payment on his deal. Should he simply sell it for cash, or use it as a down payment and then create a note on top of that? Getting a big down payment and creating a monthly cashflow, which he could either hold or utilize later?
The thing is, with a proper advertising machine in place big downski’s do happen. Maybe not on every deal, but I have been surprised at the number of times that they have come up.
Anyhow that’s all I was trying to say.
Dirk
Soapy’s reply to Art’s reply… - Posted by soapymac
Posted by soapymac on June 02, 2000 at 07:35:55:
Art,
When advertising a payment like you suggested in your original post, the state division of banking is not the only agency that could look at you. I know this may sound strange, but you could…and I emphasize, COULD…run into problems with the SEC.
That maybe sounds like a stretch, but I remember a thread of comments about this situation that was on the main board last year. As I remember it, the SEC does have some oversight as to the advertising of notes. I’m not an authority on this subject by any means. If you wanted to carry this on, you might want to pose the question on the main board.
Cordially,
Roy MacLean
“soapymac”
Re: Just a caution, Art… - Posted by Allan-OR
Posted by Allan-OR on May 31, 2000 at 14:15:27:
Here’s a link to a pretty good version of them:
http://www.psiphi.org/DS9/rules.html#Rules
Words of Wisdom, whatever the source :).
Re: Just a caution, Art… - Posted by Earl
Posted by Earl on May 31, 2000 at 15:52:09:
I think you need a license if you sell more than one home in a year. What part of Texas are you located?
Thanks… different perspective–practical advice! (nt) - Posted by RobertR CO
Posted by RobertR CO on June 03, 2000 at 10:41:45:
nt
Re: Soapy’s reply to Art’s reply… - Posted by bwhite-tn
Posted by bwhite-tn on June 02, 2000 at 18:59:08:
Roy,
I don’t mean to rain on your parade, but you are a little confused here.
The SEC only comes into the picture when some type of security is involved or publicly advertising for investors.
You can advertise to sell any property you own an interest in naming terms,price, down, or anything you feel will help.
Art’s ad is the same as any FSBO ad you can compare it to.
This is fresh in my mind as I have researched getting investors for the past 30 days.
Marc’s corollary to Soapy’s reply to Art’s reply… - Posted by MDonovan
Posted by MDonovan on June 02, 2000 at 12:30:43:
You can get in trouble with the SEC if you publicly solicit for investors. This is deemed to be engaging in the sale of securities and is a violation of the Securities Act of 1933: http://www.law.uc.edu/CCL/33Act/
It is intended to protect the uninformed investor from stock swindles – at the expense of everyone else. It was voted intto law shortly after the crash of 1929, so it was hastily conceived without due regard to its suffocating effects to small businesses and individual investors. We also got the SEC and the Fed at the same time.
Generally though, you can steer clear of the SEC by not soliciting investors in “public.”
As far as limiting lending practices, they are all statutory, so look up your own laws for your state, but in general they all exempt purchase money loans originating from the seller. Since you own the MH in a Lonnie deal, you should not have a problem.
Thank you, Allan… - Posted by soapymac
Posted by soapymac on June 01, 2000 at 08:47:59:
for the site reference to the Rules of Acquisition.
Saves me a great deal of typing!
Cordially,
Roy MacLean
“soapymac”