Posted by Terry (Houston on August 16, 2001 at 19:24:07:
This is great. Everyone should read it. Stop the excuses and start working!
This doesn’t work in my city… - Posted by Jeanne
Posted by Jeanne on August 16, 2001 at 18:51:43:
I hope Lonnie Scruggs doesn’t mind if I repost what he has said on the Mobile Home forum. I think
it is as applicable to any type of real estate investing.
Thank you, Lonnie
Hi Folks,
Thanks to all of you for your ideas & info on my “What’s Going On In TX” question about
Buying/Selling/Financing MH’s. Now, let me add a couple of thoughts.
I can’t tell you how many times I’ve seen someone give up and never get started , simply because
they focused on all the reasons why “It won’t work where I live” mentality. And usually the reason it
“won’t work where they live” is because they allow themselves to be convinced by somebody
(usually somebody who doesn’t know beans about it) that it won’t work.
I’ve talked to many people over the years who have been very successful doing “Lonnie deals” all
over the country, including TX. Since my main focus and interest is, and always has been, on doing
deals and making money, I’ve never spent a lot of time on all the various and confusing
rules/regs/laws etc. to decide if I should do something. I would much rather spend the time making
money. Then if, and when I should run into a problem, I can afford to hire somebody to take care of
that problem. But so far, all my “problems” have been solved with very little money. Did you ever
stop and realize just how few problems there are that can’t be solved with money? So what does
that tell you? Make money instead of excuses!
Chuck (AZ), I checked that web site you gave. I got 37 pages of the typical boring, confusing and
repetitive reading that only a government employee could come up with. I only made it through the
first 3-4 pages, but thanks for the info. Trying to understand all that stuff was about as exciting as
reading a phone book. I think I could do a MH deal by the time I covered it all. And even then, I
doubt that I would understand what those TX bureaucrats were trying to say. I’ve never been too
keen on following rules and advice from people who are the least qualified to give advice. A wise
man (or was it a wise woman?) once said “Better to ask forgiveness, than to ask for permission”.
And reading all the confusing and conflicting responses to this question (and some by the officials
who are supposed to know) is another good example of why I think maybe Slick Willie’s “Don’t ask,
Don’t Tell” system could be used. And if we get in trouble, we can use another of Slick Willie’s
techniques? defining the definition of that certain rule, or what that word really means. It worked for
old Willie, so why wouldn’t it work for us?
Folks, I realize you need to be familiar with what’s required, and make an effort to follow the rules.
And I’m not suggesting, or implying that you violate any rules, especially if it keeps you awake at
night. But let’s face it, sometimes the effects of the medicine is worse than the pain. For instance,
where do we pay the biggest price?doing deals and making money, or believing what “they say”
and doing nothing? Would you rather be “dumb” and rich, or smart and broke?
I’m convinced that you will find what you’re looking for. If you’re looking for a problem?you’ll find
a problem. If you’re looking for excuses?you’ll find excuses. If you’re looking for
opportunities?you’ll find opportunities. So you need to determine just what you’re looking for,
because that’s what you will find?
Now, let’s all develop a positive attitude and direct our focus and energy on solving problems and
making deals, rather than all the reasons why “It won’t work where I live”. As my good friend Terry
Vaughan says?“There’s always a way”. Now, let’s do some deals.
Here’s a little story that I post from time to time. And this seems like the appropriate time to post it
again.
The enemy is… “They”
For one reason or another, it seems there’s always a number of folks that won’t take that first step
and get started making money. You wouldn’t believe all the excuses I’ve heard over the
years…“Can’t do it where I live.” “Can’t find any cheap MH’s where I live, the prices are too high.”.
“Lot rent is too high.” The paper is full of MH ads with small payments." Too much competition".
“Must have a dealer license” “Can’t get a dealer license”. (Dealer license seems to be the number one
hang-up.) " And the reasons go on and on.
Once Upon A Time
Once upon a time there were two men named John and Charlie. Both men had finished school after
getting a “good education” and was now working a “job”. The problem was, they both worked a job
they didn’t like, that paid just enough to live on. But that “job” provided “security and good benefits”.
At least that’s what "they: said.
These two men kept hearing about how you could make a lot of money buying and selling mobile
homes, so they decided they wanted to give it a try. So they both bought a book that explained
exactly how to do this.
John was the type of man that was more concerned about details and paper work and making sure
everything was exactly proper and right, rather than just doing a deal and making money. And John
also listened a lot to what “they said”.
When “they” told him that this mobile home business couldn’t be done where he lives, John believed
it. When “they” told him he couldn’t buy cheap mobile homes where he lived, he believed it. When
"they’ told him that he would have all kinds of problems with licenses, paper work contracts, John
believed everything “they” said. “They” even told John that people go to jail, and get fined big bucks
if you didn’t have a dealers license. Then “they” told John of cases where the buyers stopped paying
and just skipped out leaving a trashed home. John was just terrified.
Then John checked with a lawyer who charged him $500 to review his contracts and advise him
what to do. (His lawyer knew nothing about mobile homes, but he was willing to do all the research
necessary for only $150 an hour, so John wouldn’t get in trouble). Finally John decided this mobile
home business was much too risky and expensive. So he decided to keep working his job. After all,
he was now making $8.00 an hour and was due for another 50 cents an hour raise next year if his
company was still in business. So John kept doing the same things he had been doing, and kept
getting the same results he had always gotten. (A small pay check.)
Charlie, on the other hand, wasn’t as smart as John and didn’t even know he couldn’t do these
mobile home deals. “They” didn’t tell him it couldn’t be done where he lives, or that he needed a
lawyer, or that his buyer wouldn’t pay, or that he could go to jail, and all the other war stories that
“they” like to tell. So being a little dense, Charlie just started doing it. After 3 years, Charlie had
bought and sold a lot of mobile homes, had created $300,000 of mobile home notes and was getting
checks dropped in his mail box almost every day.
Then Charlie decided to do something totally unthinkable…he quit his job!! All his friends and family
tried to tell him what a horrible mistake he was making. How could he give up a steady paying job
with good “benefits” and even a “retirement” plan when he reached 65? But Charlie was just plain
bull headed, and stubborn as a mule and refused to listen to what “they” said. So he quit that job that
he hated and was now full time in the mobile home business. Charlie was a now a man without a job.
What kind of a future could he expect with no job, no guaranteed benefits and not even a retirement
plan.
Everything was bopping along just fine for Charlie. Then one day a terrible thing happened…a man
from DMV called and told Charlie he couldn’t buy and sell mobile homes without a license. Charlie
said, “A license!! I need a license? I didn’t know that, nobody told me I needed a license. My
goodness, what do I have to do to get a license”? The DMV man said, “You have to come in, fill out
an application and pay $1,000.” Charlie said, “OK, I’ll be right down, after all I sure don’t want to
get in trouble for not having a license.” So Charlie got a license and now he can buy and sell all the
mobile homes he wants without worrying about getting in trouble with that bad DMV man.
Now Charlie spends half his time just hanging around the house, going fishing, or waiting for the mail
carrier to deliver mobile home checks. And regardless how hard his wife tries to persuade him to get
a “real job”, he still refuses to even look for one. What will the neighbors think, Charlie?
Happy investing to all,
Lonnie
PS I never heard anymore about John. He’s probably still working that “good job”… unless he’s been
“downsized”.
The perennial story, and it’s a great one! nt - Posted by Doug (ON)
Posted by Doug (ON) on August 16, 2001 at 19:38:38:
.