Thanks for the congrats from one old salt to another.
In your book “Deals On Wheels” I don’t understand what PV is in your charts. What is
the formula for yield? Actually I’m not sure I want to know. I just figure sale price
minus costs and if it feels good, OK. I really love helping people and in my heart
I don’t want to be a hog. I felt a little piggish with the house that I sold for 16 after paying
1 but the buyer was absolutely thrilled with the price. I guess I could have had it rehabbed
and made an astounding (yield) but I like the mobile homes and their simplicity.
So why be greedy? Give the other guy a chance to make as few bucks too. Right?
I just got “DEALS ON WHEELS” and swallowed it whole in an evening. Placed an ad in the paper. Started looking at parks. Wouldn’t you know the FIRST park manager I spoke with told me they charge a $250 non-refundable deposit for credit and background checks on applicants that are buying homes in their park from someone other
than the park owners. This let quite a bit of air out of my pumped up balloon let me tell you. I could see all my plans dwindling away. But then good ol’ Lonnie came to the rescue. “There are lots of parks that will deal with you fairly, if one won’t forget them and go to the next.”
I did. The next park manager was thrilled to meet me. Someone who would get people into his park WITHOUT going through a bank. He showed me several homes I could buy for a song. I took a lot of notes. Asked a lot of questions and when I was done I had a good business friend and motivated seller all in one. I went home and checked the messages. (6 in all) Two of them were excellent prospects. I sent them both to the park manager. He showed the mobile homes I told him they were interested in WITHOUT discussing price with them at all. The park manager sold both homes for me. What a guy. The best part is that he called last night with a problem…you will love this.
His problem was that he had an old man who was buying a newer home from the park. This man had inherited a house that needed about $5000 or less in clean up and repair. He was too old to do it and really wasn’t interested.
If he could find someone with a $1000.00 in cash he would sell it to them and use the money to put down on his nearly new mobile home. The park manager wasn’t into houses he just wanted to complete his sale. I bought the house and sold it the very same day to an investor for $16,000. The investor thought I was nuts letting it go so cheap. I just told him I was into other things and didn’t want to rehab the place.
I sent the park manager $1000.00 for his part of the deal. Boy was he surprized. But my philosophy is give back big to those who help you to make big money. I’m number one on this guys list and he will go way beyond the norm to get me deals.
Now think back to the manager trying to corner the market on their parks homes. They haven’t sold a home in 4 months. The second park I went to has sold 3 homes in 4 days just because they were open to dealing with me.
MORAL : Don’t give up. For every jerk manager/owner there are 3 that will deal with you and make you money.
Thanks Lonnie…my wife and I love you to death.