Posted by swwa on April 02, 2003 at 19:22:32:
Do what others won’t for five years, and then you can do what others can’t for the rest of your life.
First Deal!!! - Posted by Jamie
Posted by Jamie on March 31, 2003 at 23:09:38:
I found this site 5 months ago and I was torn between mobile homes and lease options. I tried lease options first but mobile homes just seemed to make more sense. I went ahead and obtained my dealer’s license and tried doing both. I ran out of money quickly and could not even afford to run any ads for my lease option business. I kept running my mobile home ad. I eventually recieved a call about a doublewide that was a bank repo about 20 minutes from my house.
It took me two months but I will summarize:
Bank wanted $5800, I offered $4500 and they accepted
I spent $80 in repairs to fix a gutter leak, install a thermostat and fix the furnace.
I spent $485 in lot rent and $60 in advertising and sold the home on Saturday for 14K, $1000 down, 13K at 10%, $300 a month for 54 months.
Did I mention I had no money, I charged the trailer on a credit card at 6% interest until paid off. People thought I was nuts for doing it but now they tease me about needing loans.
The simple truth is that I was stressing over debt for the past 5 years. I have never been disciplined with money and I could never get ahead. Since finding this site I went a little deeper but now the diference is someone else is paying off all of it for me. I even have enough to pay for my 3 week long rafting trip to Alaska this June. I am excited to find my next deal and I partnered up with a friend so they can scout for me while I am slaving away at my day job. Thanks Lonnie.
Re: First Deal!!! - Posted by Maurice
Posted by Maurice on April 01, 2003 at 14:33:48:
Congratulations on that “First Deal”. Being a newbie myself – now the next one should come a little easier. I have to agree with Tony, you might want to re-think that rafting trip and get a few more employees working for you before you go to Alaska. Anyway, great job and I hope the next one is right around the corner for you.
Happy Investing and God Bless
Maurice
Re: First Deal!!! - Posted by psears
Posted by psears on April 01, 2003 at 11:59:52:
Hello,
Congrats on yur windfall. Sounds like you’re on your way!
Perhaps you could answer a couple of questions & share with us your wisdom?:
-
You said you were running an ad in the paper. Was this a “Wanted-We Buy Mobile Homes” type ad?
-
$4500 is pretty cheap for a double-wide MH. What year was it? How big?
-
Was the home already set up in a park? On private land? Or did you have to move it?
Thanks!
psears
New Success But Old Habits Return - Posted by Tony-VA
Posted by Tony-VA on April 01, 2003 at 09:03:14:
First let me congratulate you on your first deal. I have no doubt that many fears were conquered during this deal. Nerves were settled, confidence was built and money was made.
Your post mentioned that in the past, you have had trouble being disciplined with money and I am afraid you may be falling into old habits. Allow me to explain.
An example has been used in which we learn that the $1,000 down payment you received is in effect, One Thousand new employees that just came to work for you. They are ready to go out and make money for you. But by spending that money on a rafting trip, you drown them and they can no longer go to work for you.
Now I do believe a reward is in order, however I would suggest one that does not kill many of your employees.
You see, that $1,000 may have been all you needed for you next deal (perhaps after receiving the buyer’s down payment) and all those monthly payments would have been yours (no underlying credit card debt).
You have begun a new way of thinking. One in which money is employed to work for us, not to sacrifice itself for our pleasure (at least not all of the dollars). By employing a greater volume of income to work for you now, future trips will not make a dent in your income and you will not be reliant upon a job to pay your bills or the government to pay you social security in your senior years. Waiting on checks like these now, sure beats waiting on a social security check later.
The next best $7 you can spend would be to buy a copy of “The Richest Man in Babylon.” You can find it in any bookstore.
Best Wishes Jamie,
Tony
Re: First Deal!!! - Posted by Philip
Posted by Philip on April 01, 2003 at 04:53:40:
Congratulations!
Re: First Deal!!! - Posted by Jamie
Posted by Jamie on April 01, 2003 at 20:45:35:
I did not want to make my post too long but here is some more information.
My ad reads, “I buy and sell used mobile homes with financing”. I had to change it from I buy, sell and finance used mobile homes because I received way too many calls from people who thought I was a bank and just wanted financing. It was frustrating.
The home was a 1977 Shelby DW, 24x52 in a family park. The managers also buy and sell in the park but they did not contact the bank to find out how cheap they could get it. I have a feeling they will in the future but at least I made 1 deal. I realize it was a good find and I hope I can find some more. The market in Oregon is very high but it will just take some time. Jamie
Re: New Success But Old Habits Return - Posted by Jamie
Posted by Jamie on April 01, 2003 at 20:36:02:
Thanks Tony. I appreciate your advice and I understand what you are telling me. I should have gone into more detail about my situation but I have a good paying job and I just started with real estate. I know that sacrifices now will help me gain financial indepedence but these trips are what I live for. I was going on the trip regardless of my investment status and I have sacrificed plenty to get to go. Life is too short not to experience life and this trip is one of those experiences that should not be passed up. I realize that it might take me a little longer to gain my freedom from the job but I am okay with that.
I am learning from reading other posts and books. I am also taking steps everyday to achieve my goals in real estate and I will get there but I have to go on these trips to stay focused on what is important to me. Thanks again and hopefully I will have another deal to share with the group soon. Jamie
And the 1,000 new employees … - Posted by Diane (TX)
Posted by Diane (TX) on April 01, 2003 at 20:19:53:
never take vacations, never ask for a raise (in fact, they don’t even ask for pay!), never have attitude problems or personal crises … What a deal!
Hey, Jamie, good job. Now keep it up with your new very low-maintenance employees!
Re: New Success But Old Habits Return - Posted by KenS (WV)
Posted by KenS (WV) on April 01, 2003 at 14:51:35:
I second the book reading recommendation. I just finished reading the book this weekend. I wish someone would have given it to me 15 years ago. It is a short read but contains within it the secrets of wealth.
I have given it to my 10 year old son to read. He is halfway through it already. I think I might be doing him a bigger favor than he can imagine at this point in his life!
Good luck,
Ken
EXCELLENT POST!!! - Posted by ClaudeCA
Posted by ClaudeCA on April 01, 2003 at 12:17:59:
One of the most significant posts I have seen on this board. Thanks Tony.
Re: First Deal!!! - Posted by Shawn C
Posted by Shawn C on April 01, 2003 at 21:25:55:
If I may ask, where in Oregon do you live?
there’s an old story . . . - Posted by Steve-WA
Posted by Steve-WA on April 02, 2003 at 19:20:26:
. . . that goes something like this:
A businessman was driving down a country road one day, when he espied a young man lazily sitting against a tree, a fishing pole nearby with the line in yonder pond.
“Why, it’s midday, and on a Tuesday!” the businessman exclaimed to himself. “What is the notion in that young man’s head to be so lazy!?”
So incensed was the businessman, that he pulled over, tucked in his tie, got out of his car, and strode purposefully up the the young man.
“See here, what is the meaning of this?”
“Of what?” came the reply.
“Middle of the week, and during working hours, and here you are, lazing about! You should be in school!”
“I graduated already.”
“Then you ought to be at your job!”
“Don’t have one.”
This enraged the businessman. “What? Great Caesar’s ghost, I have never heard such a thing! You’ve got to have a job!”
“Why?”
“So you can make money!”
“Why?”
So you can save, and take care of yourself!"
“Why?”
“Young man, are you insane? You need to prepare!”
“For what?”
“Why, for when you retire, of course!”
“Retire? What’s that?”
“Oh my goodness!” The businessman was incredulous. “That’s when you no longer have to work, and you can spend your days doing whatever you like, without any cares!”
The young man looked up at the businessman, whose face was pretty flushed by now, looked down again, and then up again, directly into the businessman’s eyes, and asked, “Doing what kinds of things?”
“Well, like I said, whatever you like!”
“Like fishing?”