Posted by JeffB (MI) on May 04, 2005 at 15:12:33:
I’m a newbie too, just done my first deal. Personally I would keep an open mind focus on any deal which meets your profit requirements. Some of more seasoned veterans might give you some better advice though.
getting started - Posted by LSA
Posted by LSA on May 04, 2005 at 14:02:08:
I’ve purchased both of Lonnie’s books and am about 1/2 way thru the first one…and I have my first question. I understand the concepts…they are pretty simple…but one thing is unclear. How much money do you all recoomend that is needed to get started. From what I can see…these deals are cash purchases…in the current market…what do u think is a good dollar amount to start with? Any and all help is appreciated.
Re: getting started - Posted by Ray (MO)
Posted by Ray (MO) on May 04, 2005 at 17:06:30:
$5,000. Why? Because it is a good round figure. Again, depending on your market, You can buy a decent home for $3000-$4000 and have extra for lot rents. Or you can buy a couple $2000 homes…you get the idea.
Re: getting started - Posted by JeffB (MI)
Posted by JeffB (MI) on May 04, 2005 at 14:54:23:
It depends on your market. Where I live I can buy mobiles for $100 pretty easily that need some work. But the buyers for these 2 bedroom homes are hard to come by.
I would think you don’t need much money to get started. Of course the more money you have, the more flexible you can be when buying the homes and structuring the note when you sell it. Before you buy one, I would be prepared to have a couple month’s worth of lot rent in reserve which you may have to pay while you try to sell it – unless you can strike up a deal on that with the PM.
The one thing I don’t like about Lonnie deals is the amount of time it can take just to recover your investment. But when you look at the yield over the life of the note, it’s hard to argue with the returns you can generate!
Re: getting started - Posted by Mat
Posted by Mat on May 08, 2005 at 13:51:07:
Where are there mobile homes that cheap? I am in southern
California; where will I have to go to get a mobile home for $5K.
Re: getting started - Posted by LSA
Posted by LSA on May 04, 2005 at 15:09:26:
i’m a newbie that has also been trying to wholesale…since it takes time to recoup your investment in a lonnie deal…should i just focus on wholesaling and wait to do the lonnie deals?
Re: getting started - Posted by Ray (MO)
Posted by Ray (MO) on May 09, 2005 at 13:17:18:
Missouri has mobiles for $5,000. But then again we don’t have your weather, ocean, beach etc.