Posted by CR Smith on March 07, 2006 at 21:34:59:
Right you are Buddy. This IS my family’s future, so I need to invest in a Boot Camp. I’m going to start “pitching” it right now.
We love Asheville anyway. Hope to see you there.
This would be a sweet LH deal - Posted by CR Smith
Posted by CR Smith on March 05, 2006 at 20:56:07:
My Mom’s a realtor, and she usually deals in higher-priced homes. When I first told her about this business, she thought I was crazy. Then she started it looking at it differently. Now, she’s begun listing some land/home deals.
One she got recently from a bankruptcy judge. It’s a SW on about 1.2 acres with a great view of the mountains. It has a 98 3/2 on there. She didn’t know the manufacturer, but said it was in pretty good condition. The lady living there said there was a minor water leak.
The lady living there says she’ll move when it’s sold. And Basically, on the lot there’s room to put down 3 more. It’s in the country, but accessed by two roads.
And the whole package’s asking price is $19,900.
Of course, several investors–one of them a known local construction tycoon–have bids on it.
And she just told me yesterday.
Long story short, I’ve yet to pull my first deal together. It would take me another week to pull the money together (read: Home Equity Line).
If it’s still available in another week, I could offer full asking price. She knows the area and thinks it’s severely under valued.
Here’s the rub: I’ve yet to do Lonnie Deal #1, and this property is about 3 hours drive from home. I’m wondering if that’s wise for my first foray into the biz. I wouldn’t be sticking a toe in, I’d be going for the full-on Baptism By Fire.
I think she would go in on it with me, but I’m not sure how effectively I’d be able to manage things in other state.
Anybody else have any thoughts??
(I know, you don’t Steal in Slow MO…)
the prime directive - Posted by Anne_LLC
Posted by Anne_LLC on March 06, 2006 at 21:02:07:
Read the book, do the deals as Lonnie describes.
Why are you wasting your time thinking about deals that are three hours away? You need to focus.
GOTC
Anne
Re: This would be a sweet LH deal - Posted by Sailor
Posted by Sailor on March 06, 2006 at 19:08:05:
I’m going to semi-disagree w/some very smart folks here. I think we don’t know enough to tell whether or not this is a good deal in general, or if it is something you should/could tackle. I’d like some more facts/figures, demographics, & pics. Your #'s so far are tantalizing, & though this isn’t the usual path folks have taken, I think it is important to understand the whole shebang so you can learn why or why not this is a good deal. One of the best things I learned @ Boot Camp was WHY the deal I presented didn’t work & really never could. Just having others TELL me it wouldn’t work wouldn’t have really taught me anything. I also think your deal could be very good for another, just perhaps not good for you right now. Help us out here, kid, & give us more info so we can all learn from this example.
Remember, I started backward, too, w/a mhp w/out ever having heard of DOW. I’d have done a lot better if I’d had the books & this group, as well as some L/Ds under my belt. Even though I coulda done it sooner, coulda done it better, coulda spent less $$$, & coulda made more $$$, it has worked for me.
Tye
Is your mom in the … - Posted by TeddyB_SC
Posted by TeddyB_SC on March 06, 2006 at 11:53:50:
same town as this property and if she is, what can she list and sell it for in as in condition.
I agree with the others that this is a long distance to travel for rehab and/or management of tenants.
TeddyB_SC
Re: This would be a sweet LH deal - Posted by Tony Colella
Posted by Tony Colella on March 06, 2006 at 09:35:30:
The deal sounds like it has potential but being 3 hours away may make the experience too rough to handle.
Turning properties around, developing lots and managing tenants is a lot like raising kids I guess. Its hard to do a good job when they only see you once in a while and only after you have driven 3 hours to fix a problem.
I do know people who invest in some properties that are scattered around but this is not something I am personally comfortable with. I am a control freak when it comes to my money and my properties. Yes, for some properties you can hire management but you still need to manage the managers.
I would recommend anyone interested in mobile home investing start with 4 Lonnie deals before moving on to other niches. With 4 LD’s under your belt you will know the market, the tenant base and if this investement arena is for you. The money spent on those 4 deals (if you stick to the book) will be very little and at little risk. You will have your money back quickly. Kind of like getting paid for on the job training.
Tony
Re: This would be a sweet LH deal - Posted by Ryan (NC)
Posted by Ryan (NC) on March 06, 2006 at 06:04:55:
CR,
I don’t want to squish any enthusiasm that you have, mobile homes are a great thing to generate cash flow!
With the limited info you’ve provided the deal seems OK with the right terms IF it was in your back yard, but being three hours out this deal might be more than you could handle the first time a tenant does some damage.
I’ll stick by the LD’s as a starting point, the little deals are very cut and dry and have a huge safety margin so long as you buy right. Others may disagree but my advice is to do a couple LD’s and learn your market before you take a trial by fire with bigger properties.
Best wishes,
Ryan Needler
Re: This would be a sweet LH deal - Posted by CR Smith
Posted by CR Smith on March 05, 2006 at 21:25:22:
I should add that the seller is said to be getting $600 a month in rent on the SW.
OT - Never pegged you for a Trekkie, Anne - Posted by Lin (NC)
Posted by Lin (NC) on March 07, 2006 at 08:54:39:
Here’s kind of a fun tangent, if you’re a sci-fi geek like I am! (I miss Deep Space Nine and Babylon 5)
Re: This would be a sweet LH deal - Posted by CR Smith
Posted by CR Smith on March 07, 2006 at 15:49:26:
Tye & All,
Wish I had some more details and pics. I will say I’ve decided I am going to let this one go on by. I just think it’s located too far away (for now, not to say it couldn’t be done with more experience & savvy), and with my wife pregnant (found out last week), I won’t be able to make the drive as much as is needed.
The information I have really is sort of cursory. My Mother listed it, saw the bids piling up within a week, then realized that it had probably been undervalued. The view is spectacular, it’s somewhat in the country, and is accessed by two roads.
I sincerely believe it’s a good deal, if nothing else, as evidenced by the number of bids, but just not the right deal for my first one.
And yes, I’ve been off the couch plenty, and I’ve read DOW, as well as MMWMH, as well as am reading Tony and Scott’s book. I’m just looking around with eyes wide open.
The LH deals appeal more to me right now, so this is not out of my focus, just more outside my geography.
I need to make one of those Boot Camps, but that’s the month before the baby…probably won’t be able to make that. This board has still made an incredible difference in my life.
Re: This would be a sweet LH deal - Posted by CR Smith
Posted by CR Smith on March 06, 2006 at 12:40:38:
Thanks all for replying, and Y’all have brought up things I knew in my gut to be true, but wanted to ignore, because it REALLY IS A GOOD DEAL, but maybe just not the right one for me.
My Stepdad has actually been interested in doing this with me 50/50, but I’m not ready. He just last month had 4 stints put in, and manages his own surgeon’s practice, so neither of us would be able to focus the time to it that it deserves.
Tony, thanks for putting a nice number on this:
“I would recommend anyone interested in mobile home investing start with 4 Lonnie deals before moving on to other niches.”
That’s the kind of precision that helps me.
actually I’m a verbal lint roller - Posted by Anne_LLC
Posted by Anne_LLC on March 07, 2006 at 09:03:29:
In my literary and popular cultural travels I pick up lots of phrases and ideas whose origins are obscure to me (or my failing memory does not allow me to recall), but that doesn’t prevent me from using them. Gets me into quite a bit of trouble sometimes, yessiree.
LOL,
Anne
Re: This would be a sweet LH deal - Posted by Sailor
Posted by Sailor on March 07, 2006 at 20:29:47:
I know Sept sounds like a bad time for you, but from now on anytime is going to be inconvenient. Besides, the 3rd trimester can be kinda boring, so it might be a great time for the two of you to get away together–think of it as an investment in your family’s future. If you really are interested in pursuing this type of endeavor, you really don’t want to miss Boot Camp.
Tye