Posted by Tim (Atlanta) on November 06, 2000 at 13:12:02:
You need to read the books by Lonnie (not Ronny) Scruggs. He will tell you exactly why.
Here is my abbreviated version. FINANCING. The MH seller does not want to finance the sale of the mobile home. You will be more than happy to. Practically no one who will live in a $5000 mobile home will have the cash to buy it. That is where you come in. These buyers will have a small amount to put down and be able to make the monthly payment to you. That is the whole idea behind Lonnie deals.
I’ve read the actual deals by Ronny Scruggs and others and there is still one thing that puzzles me. A seller is asking $5,000 for his MH and you offer $3,500 and he sells it to you. You then resell it for $6,500 and turn a profit. If the original seller can’t find a buyer to pay $6,500 for the MH how then can the new buyer?
Buy low-sell high, no we’re not kidding! - Posted by Karl (OH)
Posted by Karl (OH) on November 06, 2000 at 15:49:14:
Todd,
Just to add a little to Tim’s answer.
We buy homes at a wholesale price or cheaper by waving cash at motivated sellers. We sell at a retail price by offering financing (a reasonable down pmt, affordable monthly pmts) to buyers. The concept is that simple, we’re not kidding!
In order to facilitate putting these deals together, we build relationships with park managers. We pay referral fees for people that send buyers or sellers our way. We market our business by advertising and getting our faces known out in the parks. We conduct ourselves honestly and fairly. We offer solutions that help solve people’s problems. All these things put us in position to create these deals.
And most of us have very little competition, because it all sounds too good to be true. (Just like you stated in the title of your post.)