Posted by Steve W (WA) on November 09, 2002 at 09:35:04:
“When people ask me what I do for a living, I tell them I sign checks.”
OK, a little cleanup now & then - I like THAT part of digging in - but I try to minimize the rehab - pass it on to the buyer in the way of saving . . . . . . up to $2000!
In true Lonnie style . . .
Becoming A Little Frustrated - Posted by Bill (SC)
Posted by Bill (SC) on November 08, 2002 at 13:43:47:
I’m from Greenville, South Carolina and new to the mobile home business. I have read both books written by Lonnie Scruggs and I’m having a bit of a frustrating experience. I have found twelve Lonnie Deals (10-20 years old and can sell for $4000-$6000)in the past 9 weeks. However, everytime our negotiating price starts favoring me, somebody comes along and is willing to pay the originally asking price, which is usually about $4000-$6000. Only the very old or poor condition MH’s seem to be obtainable at a price to make a profit here in the south. Any comments would be appreciated.
Buy the lesser - Posted by Tim (GA)
Posted by Tim (GA) on November 11, 2002 at 11:09:44:
I am in GA and run into the same situations in some parks. Buy the ones in poorer condition for $1500 or leass, rehab them for less than $1000 Then sell those to the people that are scamming up the better ones. My ROI on the 12 homes that I bought since August 2002 has been no less than 96%. Keep in mind that # does not include my time rehabbing the home.
You must be able to see beneath the garbage - Posted by Marc Donovan
Posted by Marc Donovan on November 08, 2002 at 20:10:40:
Its really hard to look at the worst pile of junk that a park owns and be able to see the finished home beneath. But once you have cleaned out the piles of trash, painted, carpeted, new faucets, pressure washed, fixed AC, for a few thousand, and sold for 11000, you will see it. The reason these sell for such low prices is that no one else can see it. You can get free lot rent, free home, low cost labor, and more if you just have the ability to see the finished product. Its amazing the difference. The neighbors often are flabbergasted. When you add the owner finance to the mix, you can sell for 10K with a 2K investment. I do this at least once a week. Plus its really fun to do. Its really satisfying to take a pile of junk and turn it into something that your buyers are proud of. Plus the value of taking a family who is living in a shelter and giving them a real home, cannot be measured with a financial calculator.
Re: Becoming A Little Frustrated - Posted by ScottS(NC)
Posted by ScottS(NC) on November 08, 2002 at 14:23:48:
I’m just up the road from you here in Asheville NC. This happens, it’s pretty common, how are you locating these potential deals? I get most of mine from the Iwanna paper if thats how you are finding yours you got to get there first. As Lonnie says you can’t steal in slow motion. I also have a good relationship with a bunch of PM’s this is also critical. I purchase all mine for between 1 and 5k. The one I bought for 5k was my biggest brain fart. I ended up holding it for several months then getting it moved then breaking even. So try to stay on the low side around $2500-3k is my bread and butter. Let me know if I can help. Take Care ScottS(NC)
Re: You must be able to see beneath the garbage - Posted by Lori W (WA)
Posted by Lori W (WA) on November 09, 2002 at 09:31:49:
This is true, you must be able to see beneath the garbage. Beneath the adult diapers, beneath the cat crap, beneath the ripped up carpet, beneath the rotted food, beneath possible dead animals, beneath the mold. That is the weekend project for us. Deals on Wheels works, keep trying. If the mess is too horrible, hire in a work crew for $10 an hour cash per person. Just make sure you have a dumpster HUGE enough because they will fill it.
My husband and I have done many deals this year. Never in my right mind would I have thought uninhabitable mobile homes would be profitable. But THEY ARE!
This system works WIN-WIN-WIN. 1) For me, the greatest satisfaction is knowing that we have created a livable environment for someone in a low-price range. 2) We make a remarkable profit because we are dealing with junk that no one else will. 3) We have helped someone out by taking their junk and responsibility from them… lot rent, hauling the piece of junk away.
Look at the stuff no one else wants. Make an offer immediately and move on if they don’t take it. When we first got started my husband would call me after lunch and say, “Guess what I bought at lunch!” He made the offer, had the paperwork available for them to sign immediately.