Attention MH Workshop Attendees - Posted by Lonnie

Posted by Jeff B. (TN) on February 17, 2002 at 16:03:41:

OOOPS! I was also supposed to answer the question… Here goes!

Assuming the party trying to do the deal is “confident” enough to pull it off, I would have them go see “Uncle Joe” or “Gramma Sally”, and borrow the money from them. Giving them a great interest rate, or even part of the action…

If JOE or SALLY won’t or can’t… ask a different relative… ask a friend… ask a neighbor… ask a co-worker… ask a stranger!

Let’s face it, SOMEONE there would probably like to get a little better than 1.5%-4.0% on their money these days??

I got a hundred more…

Jeff B. (TN)

Attention MH Workshop Attendees - Posted by Lonnie

Posted by Lonnie on February 17, 2002 at 12:47:48:

Hi Folks,

It?s only about a month before the Atlanta MH workshop, and I need some input from some of you who will be attending. In order to make this workshop as beneficial as possible for you, it would help to know your level of experience in the MH biz. So, how about some input.

I normally begin the class with a basic buy/sell example and proceed from there. I?ll cover as much as time allows, but I want to cover the topics that are most beneficial to you. So let me know what you want.

If you?re not familiar with using a financial calculator, I recommend you buy one and learn the basics. One of the $30 (HP10B, or TI BA 35) will do fine. We probably won?t time have to cover calculator lessons, but if you?re having trouble with the calculator, (or have other questions not covered in class) I?ll be around all weekend, just look me up. I want you to be able go home and DO A DEAL!

In my opinion, one of the most important topics, and my favorite, is notes. So I hope to spend considerable time going over some of the good things you can do with notes?how to create, buy, sell, trade, discounting, etc. So, even though the basics of this class will be about buying and selling MH?s, I want to point out that it?s really about FINANCING?how to create cash flow, and how to obligate other people to send you checks every month. And the same techniques will apply to any thing you want to create a note on, and accept as collateral. Did you ever wonder why Sears, and all the other businesses wants you to charge that purchase? Because they make more on the financing, than on the product. Once you learn and understand how financing and money really works, you will understand why making money can be easy, and doesn?t require a JOB.

Our mind is like a muscle? if it?s not used, it turns to mush. So here?s a little assignment to wake up your creativity. What would you do if you were faced with this situation?

You have the chance to buy a MH for $3,000, and you have a buyer who will pay $6,000, with $600 down, and 36 payments of $200. But you have one small problem?you have no money. What would you do? O.K. folks, put your thinking hats on and let?s see some answers. There is no one best way, or one right answer, so don?t be shy about posting, that?s how we learn.

Happy investing,


Re: Attention MH Workshop Attendees - Posted by Ben

Posted by Ben on February 19, 2002 at 06:39:57:

I would ask the seller to take a note for the balance of the purchase price less the $600 down payment. I might even increase the purchase price if the seller balked at the note idea.

Or, if the seller insisted on all cash up front there is the option of cash against credit card.

If I have no credit available to me I could advertise for an investor–“Need $3000. Will pay 12% per year.” The rate and term could be negotiated to allow me a positive cash flow on the back end. If note buyer didn’t like the collateral then could offer to cross collateralize on personal belongings.

Offer the seller of the home $600 down with payments of $200 month until paid in full. Sweeten the pot by offering two additional months of payments, for example. Or, any variation of this. Say, $150 per month, leaving me with a $50/mo. income.

Ben Spofford

All good, let’s have more - Posted by Lonnie

Posted by Lonnie on February 18, 2002 at 20:21:23:

Thanks for the feed-back and the good ideas. How about the rest of you, let?s see some more solutions.

The more we think, the more creative we get. The more creative we get, the more deals we do. The more deals we do, the quicker we can give up that JOB.

Best to all,


Re: Attention MH Workshop Attendees - Posted by Lee Norman

Posted by Lee Norman on February 18, 2002 at 18:24:33:

My 1st post on this site. I will be at the convention & your 1/2 day workshop on Thrusday. I want to know about how to set up & develop passive income. I will retire in a couple of years (or sooner). As a type A person I can not quit ---- I MUST be doing something!
Accounting & number management is my personal achillies heel. As a “nuts & bolts” guy I have I like to see & touch things. While I understand what you are teaching (read, & reread, both books) I still need a better understanding of the very basic accounting "stuff."
It will be my honor to meet you, Lee Norman.

Re: Attention MH Workshop Attendees - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on February 18, 2002 at 08:04:41:

I probably won’t make your MH session, but I can contribute my solution to your problem. After the sale you would have a note for $5400 face value, 36 payments of $200 per month for an interest rate of $19.75%. But you don’t have that $3000 to invest. You can count on that $600 as a down payment, so you need to come up with $2400. You can sell a partial on the newly created note. At the terribly high rate of 35% you could sell the first 15 payments to the partial buyer and keep the last 21 payments for yourself. The partial buyer got 35% yield, your yield is infinity. You get 22 payments of $200 each or $4400 for your efforts. If you keep doing that there will come a time when you will have cash from current cash flow to do the deals and won’t need the partial note buyer. One other good point is that if you perform as you promised to the partial buyer, do you think that they would buy another partial the next time? Of course they would. Maybe they wouldn’t charge you that horrible 35% rate. After some time of doing business you could work that rate down to 15% or less.

Believe me, this happens all of the time. I know people who will buy these partials every day if they could find them.

Re: Attention MH Workshop Attendees - Posted by RickW (VA)

Posted by RickW (VA) on February 17, 2002 at 19:57:05:

My wife and I are looking forward to meeting you in Atlanta. We have not done a deal yet. We have looked at quite a few mh but havent talked to any park managers yet. Your books have been very helpful. It is time for us to take action.

The problem that you gave us. I would either borrow the money or get it from my credit card, and then sell the front end of the note.


Re: Attention MH Workshop Attendees - Posted by wayne-pa

Posted by wayne-pa on February 17, 2002 at 18:31:23:

Answer: I just got a $4500.00 tax refund, what a way to invest it.

I and my father are going to atlanta, can’t wait to meet you. I have listened to your tapes, read the books, and now we will be there live. We are just starting to market for MH’s so we are new to this market.

Re: Attention MH Workshop Attendees - Posted by Glenn Dixon

Posted by Glenn Dixon on February 17, 2002 at 18:10:18:

I haven’t signed up for the conference yet, but based upon what I have been reading here is how I would handle your assignment example:

You will end up creating a $7200 note when all is said and done, so find someone willing to pay you around $3000 for this note. Take their $3000, buy the home, sign up the note, deliver the note to the note-buyer, pocket the $600 down as your profit on the deal.

Am I close?

Re: Attention MH Workshop Attendees - Posted by Kevin (MI)

Posted by Kevin (MI) on February 17, 2002 at 17:20:13:

I could almost guarantee we all have a lot of “junk” around our houses. Probably more than what most of us would like to admit. What a great way to clean some of this stuff out, make our lives a little simpler, and make some money to help fund our investing - have a garage sale.

You will be surprised at how happy you will be (or at least your spouses will be) to sell off some those once highly valued “treasures” floating around your homes. As I sit at my desk looking down at that old computer acting as a footrest or that old printer that just does not work as well as it used to, I would love to get a couple of bucks for both of them and get them out of my life. Same thing with some of those items I just had to have and then never used…

This way might not get you all the way there, but it could get you some of the way while cleaning up around the house a little…

Another money raising idea, that I have just done recently myself, is get rid of that new and expensive car and buy a nice preowned car. Good condition and I drive it with pride knowing I am saving thousands on payments and insurance. I drive it like a badge of honor with the knowledge I can use the extra money to invest. I joke with my friends at how incredibly poor I am, while making 60-75% and up on my investments…

Just getting started in this biz, but how awesome is that!!! Sorry Lonnie, no trip to Atlanta this year, prior commitments during that week, but will sure to catch up with ya at the next one. BTW, great books and having done our first deal, went back to read them again. Chapters 8 and 9 in DOW should be minted and placed in the Smithsonian. They will surely be recognized for future generations as wisdom unparalleled. Keep contributing on this site and if you are really “retired” then you should have more time for us Lonnie students… :slight_smile:


Re: Attention MH Workshop Attendees - Posted by Jeff B. (TN)

Posted by Jeff B. (TN) on February 17, 2002 at 15:53:55:

Hi Lonnie,

Personally, I’d like to see and hear more about information that is “BEYOND THE BOOKS”!

Fortunatly for all of us, your books and course are incredibly easy reading & understanding. So, personally, I really don’t want you to ‘rehash’ the same information / material… I’d like to hear about WHAT YOU’VE LEARNED SINCE WRITTING THE BOOKS!

That’s what’s worth traveling to Atlanta to hear! Which of course I am… Already signed up!

See ya on Thursday 3/21.

Jeff B. (TN)

Re: Attention MH Workshop Attendees - Posted by k greene

Posted by k greene on February 17, 2002 at 15:07:05:

Just received one of those high rate interest checks in the mail. What a great way to make money. Do a deal cash the check and then return the funds without prepayment penalty.