Posted by Jay on April 19, 2006 at 18:30:06:
Thanks everyone. It is very encouraging to get so much feedback, and excellent ideas.
Too Much Competition? - Posted by Jay
Posted by Jay on April 19, 2006 at 10:16:45:
First, I want to say I searched the archives, but still have some questions. I just read, Deals On Wheels, and am researching the local market. I live in a city with approximately 1 million people. The local paper has on avg 15 mobile home ads at a time. Some are high priced late models, a few are under $10k, and approximately half of the ads seem to be Lonnie style investors, as the ads open with “Will Finance, low down”, etc. They each have different phone numbers. I realize I have to do alot of looking beyond the local paper for good deals, but is it possible that my area has too many folks doing Lonnie-deals? The success stories seem to come from folks who are almost the only ones offerring Lonnie type deals in their areas. Again, I realize I need to do more local research, but I would appreciete some input before I get started doing mobile home deals.
Be different - Posted by Anne_ND
Posted by Anne_ND on April 20, 2006 at 09:35:03:
Jay,
Actually having “competition” is a good thing. I have one other Lonnie dealer near me in ND and I wish there were more. He actually got me into this biz as I had been buying his partials and he came to me and said he had an low accepted offer on two MHs from Conseco, but he didn’t have the cash to close. I paid for the two MHs and he gave me the nicer one.
We differ in some of our biz goals, so often I’ll have a buyer more appropriate for his homes and vice versa, we often give out each others numbers to buyers. Right now I’m trying to give him a MH for free because I’m tired of dealing with it and he has the man-power to finish the rehab.
I suggest you call those numbers on the Lonnie ads in your paper and take a few of them out for coffee. You might get some good info.
good luck,
Anne
Re: Too Much Competition? - Posted by Tony Colella
Posted by Tony Colella on April 19, 2006 at 18:02:36:
How many of ads did you read that said, “I buy ugly houses” or “I buy houses” or “Fast Cash for your House” etc.
How many of those type of signs did you see on the side of the road on your way to work today?
How many billboards etc. did you see with something similar?
Now, how many of them read “I buy ugly mobile homes.”
Tony
Re: Too Much Competition? - Posted by Karl (Oh)
Posted by Karl (Oh) on April 19, 2006 at 15:42:27:
Jay,
I live in Cincinnati, a pretty big city. We also have a lot of mobile homes listed for sale, just like what you describe. Today there are 12 homes for sale, seven of which say “will finance”. So to look at our local paper you would think that there was a lot of competition, too. But I’m still managing to eek out a living full time doing Lonnie Deals without those other guys stepping on my toes.
I have very little competition in the several parks where I do most of my deals. I have a strong relationship with the PM’s, and that makes all the difference. So even though there are other guys selling homes in other parks, it doesn’t effect the buyers who want to live in my parks.
I know most of the Lonnie Dealers in town. As far as I know, they all have day jobs, and are doing Lonnie Deals on the side. So there’s no one or two or three guys controlling the whole market.
I do a lot of my deals in one 450 unit park that I have all to myself. I also work in a couple other big parks where several other Lonnie Dealers have homes for sale. And I’m currently being courted by a couple of other parks that are friendly to Lonnie Dealers that don’t have anyone working them. There are an awful lot of mobile homes out there, 7 or 8 guys can’t begin to handle all of the business in my area.
When my sales slow down (which everything goes up and down), I don’t blame it on competition, I blame it on getting slack with my marketing. March was kind of slow, so I just reworded a new ad last week, and the phone started ringing like crazy. I’ve had a very good April so far.
Do this. Run a test ad. Find one nice park with a friendly PM where you want to do deals. Start with the basics, like Lonnie explains in DOW’s, and see what happens.
Karl Kleiner
Re: Too Much Competition? - Posted by Barry (GA)
Posted by Barry (GA) on April 19, 2006 at 15:22:30:
With 1 mill. people I doubt that there is too much competition. You could always do something to make your ad stand out. “Free TV” would probably draw some attention. Catch a big screen on sell and include it with the mobile. How about free washer and dryer? It could be another profit source for you. Or, stage the place with some inexpensive furniture and knick-knacks and offer to include it, that is what the new dealers do.
Good investing,
Barry
Re: Too Much Competition? - Posted by JeffB (MI)
Posted by JeffB (MI) on April 19, 2006 at 11:01:20:
I could be wrong, but I don’t think you will get too many responses on this considering you have not even ventured into the field yet or tried to do a deal.
If you believe that there is too much competition out there, you are right. If you believe that this business does not work, you are right again! Your perception of this biz has MUCH more to do with your success than the number of competitors in your market. You did not mention what city you are in, there may be others here who can give you some guidance to get started.
Re: Too Much Competition? - Posted by Jay
Posted by Jay on April 19, 2006 at 12:44:20:
I just finished reading the book. I think it is prudent to then ask questions of people who have used techniques in the book. I do not have a negative attitude about anything Lonnie wrote. You are right…I did not mention a city. I am not looking for personal coaching, a mentor, etc. I was just writing to query people using Lonnie’s techniques if the local paper ads have much meaning about what is going on in the local market.
Read the book again - Posted by osupsycho (OK)
Posted by osupsycho (OK) on April 19, 2006 at 12:56:03:
Jay,
Lonnie mentions this very thing in the book. Don’t be scared because there are a bunch of ads talking about easy financing, low down etc. These are usually just ads from dealers and they are only trying to get the better buyers off of them. I would not be real concerned about any ads as far as Lonnie dealers go because most I know don’t even use newspaper ads. I have only done it once and that was for only two weeks. I get most of my business (both homes and buyers) from referals.
As Jeff said you are going to make this business be whatever you see. Believe me when I say that it won’t take long to see many more opportunities than you have time or money for. Furthermore, this business is nice but it is not easy so even if you are seeing Lonnie dealers in the paper there is no guarantee that they will be competition or will have the staying power.
Just my thoughts,
Jad
Re: Read the book again - Posted by Jay
Posted by Jay on April 19, 2006 at 14:36:49:
Thanks. That thought had crossed my mind that they may be dealers selling high priced mobiles, and therefore are not competition to me. I appreciete yours, and Jeff’s comments. I agree that attitude is very important. There is much to learn on this board.