If you found CREOnline because of Lonnie’s books, then that’s another thing we have to thank Lonnie for.
I hear you on the one message board woman thing. Right now the MH newsgroup seems to be pretty slow, but the archives there are really good. I learned something about carpets from those archives the other day that is going to save me some money in a rental (non-MH) that I’ve decided to sell.
But the main newsgroup will always be my first love…
let us know if you end up buying some wobbly boxes.
How many of you have been able to become a full time investor and quit your previous job? Im strongly considering doing this, but am allowing myself time to learn the business and get some steady money coming in first. If you did achieve this, what kind of time frame did it take to become a full time investor to the point you could make a good living. I currently make good money doing what I do but am extremely burned out. thanks
I agree with anne,How much money do you need to live on.I live a simple life,I don’t have a new sports car or a great big house or loads of credit card debt.It took me two years before I quit my job and that was 4 years ago.
Your circumstances will be a big determinant in how long it will take you to leave your present job. Whether you have dependents, how much ‘fat’ there is in your budget, and your debt load will all be important factors.
One thing that will speed the transition is to reduce your outflow NOW and use the extra money to either pay down debt or save to invest. And I don’t mean just give up the latte every morning. Do you need a late model car? Do you need magazine subscriptions? Do you need to eat out once a week? Can you bring a lunch instead of buying? Can you get by with a smaller house or apt? Do you need a TV? Only you can determine how best to simplify your existance, but the leaner your budget, the easier it will be to go independent.
I do suggest you buy Cashflow 101 (the board game) and read ‘Rich Dad, Poor Dad’ if you have not already done so.
I didn’t want to do flips (now I ask myself WHY?), so I got into rehabs and rentals about 4 years ago. But it is mobile homes that will enable me to leave my job. I will be going full time in 8 weeks. Rentals are good for long term financial security, flips and mobile homes are good for generating some cash and cashflow NOW.
get educated and good luck!
Anne
PS- the best thing that happened to my RE career was when my TV was stolen a few years ago. I didn’t replace it and now I wonder what I did with the time. I watch DVDs on my computer when I need some R&R.
right now between the wife and I we bring in low 6 figures. I dont want to have to live poor in order to make the switch, so I will continue to work indefinately if I can’t atleast match my current income. I dont think I would be comfortable changing careers if I dont have a steady cash flow coming in. I dont want to be stressed to the point where If I dont find a deal within 2 weeks, I wont be able to pay my mortgage. The good thing is I only work 20 hrs. a week and my wife only works about 34 so I have the time to do both, just burned out in current situation. I would want to be bringing in 8-10k monthly before stepping away. my goal was to try and achieve this in 2-3 years. any thoughts?
Posted by Kristine-CA on April 02, 2003 at 16:08:08:
Anne: Glad to hear Lonnie deals are happening for you. I remember you suggesting to me that I get into them as well. I gave it quite a bit of time a couple of years ago and got lots interested/qualified buyers but no sellers. The cheapest things I could find in parks were an hour away and required between 25-50K in cash. However, the potential to make money on the money was great. No problem finding buyers with cash and who can afford the payments.
What price range are you working in? And how much clean-up rehab do you find yourself doing. Maybe I should consider Lonnie deals while I’m working in Bakersfield.
Sounds like business must be treating you quite well, with plans to go full time soon. Too bad I missed out on the Conv, and a progress report on yourself and many other hard working investors.
Glad the MH thing is working out so well for you. The Lonnie Deals are almost a license to print money…
You are in a great position to build true wealth. You have staying power, which many people lack.
My suggestion.
In your mind quit your job today. Think and plan your future using real estate to provide financial peace. Use your income and borrowing power to buy quality rental properties. Use your credit to get 10% down low intererst loans. We yield 25% plus on our cash. Hold them and 1031 up to larger projects. Couple of years your worth a million dollars (only 5% of this country can make that claim)
Good Luck
Bob
With your experience you should have no problem with these things.
Here’s my plan: buy some old MHs, fix up to learn about the guts of a trailer, then sell on a note, and then sell the note. I keep the down payment. The first few deals I did will net me a little money (besides the down payment), but now I know what it takes to get these things fixed, and I’ve built some good will with the local MH fixers (basically, I spent my profit learning what it takes to make them habitable).
Having done that, I’m now doing classic Lonnie deals: buy for under $3000, sell on a note for about twice that with minimal fixup. Sell a portion of the note so I get down payment and a little cashflow. Eventually I’ll be able to keep the cashflow myself.
The second MH I bought I paid $4950, put another few thousand into cleaning and fixing, and will be able to sell it for $14K. I thought I had a cash buyer (that would have been GREAT), but it looks like I’ll be financing them- I’ll come out a little ahead, which is all I needed since this was a “learning experience”.
I had some knowledge of my local market before I started because I’d been buying some local MH notes. Nice yield and a strong market. Some investors routinely travel 60 minutes to their preferred parks- spend some time in the archives on the MH newsgroup and you’ll get some solid advice, including folks from CA.
these are great deals, I suggest you buy Lonnie’s books (very cheap) if you have any interest in the subject.
We missed you at the convention! I hope you’ll be there next year.
Yes, Lonnie deals are a great way to go. Just got a buyer to agree to sell me her rent-ready 3/1 singlewide for $2750 today. I think I can sell it for $8K no problem with financing.
Posted by Kristine-CA on April 03, 2003 at 13:03:08:
Believe it or not, it was Lonnie’s books and the MH message board that got me into this investing path in the first place. Three years ago I was researching manufactured housing for a possible home somewhere in Santa Barbara county for myself. I found creonline and was instantly hooked. Read Lonnies books and was truly amazed at all the different ways there are to make money in RE. Never had heard of a note before. Someone wrote me off the board and suggested I try tax sales in CA. Which I did. And that was great. And then I found the main message board… and the rest is history.
Maybe I’m just a one message board woman. But it couldn’t hurt to find a few parks to work in.
Yes, I missed being there too, and will definitely attend next year…
From the sound of your progress on these “Lonnie Deals”… (and you know Lonnie is no spring chicken), you may be teaching this concept next year at the Conv… Not LOL either… Serious!
It sounds like you are “on-fire”… and I will continue to look on for future successes being reported. Very pleased to read about all your new-found knowledge, income and wealth… Keep on keeping on…
