I read Lonnie- need real life answers!!! - Posted by george from raleigh

Posted by george from raleigh on January 14, 2001 at 19:05:24:

I just got done reading Lonnie (Deals on Wheels), and boy am I excited! But here is my problem: I can’t figure out how to get in the door, and how to keep the deals coming in without finding a way to get funding on a consistant basis in the form of investors for notes.

Let’s use a theoretical scenario:

Buy home at $2,500.

Sell for $5,000, $1,000 down, note for $4,000 @12.75%, payment $134.29, payable for 36 months. Now, I want my $1,500 out ASAP to go do another one. Is either of the following scenarios credible in the real world:

Sell entire note, discounted to $3,600, to yield 20.27%. Get back my $1,500, put a few dollars in my pocket for my trouble. Or, sell 13 payments of $134.29. to give the investor the same 20% I would sell those payments for $1,583.97.

Simple question: am I blowing smoke, or are either of these scenarios feasible in the real world?

Thanks in advance for the info.

george from raleigh