Posted by Philip on December 13, 2004 at 06:07:46:
I didn’t think you meant to take big risks.
Thanks for your advice.
Philip
If I have the deal, the funds can be found? - Posted by Philip
Posted by Philip on December 11, 2004 at 12:31:42:
I want to do another repo, but I don’t want to touch my cash.
The park owner would be interested in funding it if the unit was under 3k, which it is not. Nor are any nicer ones in my area right now… or at least very few.
I can borrow from the bank, but I want someone else to put the money upfront for their half of the deal instead of borrowing more myself or touching my cash.
Should I just try the same old sources like, local folks with good incomes, who trust me?
Am I missing an angle, or just wishful thinking?
I have always sold before buying, not been as protective of my cash, used my folks money, or borrowed from the bank.
Anything creative that I am missing?
Philip
There are millions laying idle… - Posted by Greg Meade
Posted by Greg Meade on December 11, 2004 at 20:52:27:
that investors are frantic to lay on you for your use. Had an investor from this board come to FL last week and offer up 150K in funds for jv’s on l/h pacs…i declined the generous offer, his money my time, profits split 50/50 after sales. in october declined 5 million…I can’t keep these funds busy. it is all i can do to keep 300k semi-busy and i don’t want to hire folks , have payroll, own lots, etc. etc. as these things are a lot like a job.
I see lenders seeking experienced investors to keep funds busy all the time…why not e-mail folks advertising they have funds available?? I have folks come down here all the time seeing if i am real or an internet figment of someone’s imagination…they soon see i am who ui say and i do all the dumb stuff i post. you seem like the real deal too Philip, so post and ask for funds or e-mail me and i will ask these lender’s if i can give you their numbers!
Regards,
Greg
Re: If I have the deal, the funds can be found? - Posted by Sam Chevel
Posted by Sam Chevel on December 11, 2004 at 17:33:49:
A easy way to attract investors is to find a lot, develop it and move the mobile to your lot, sell the mobile as usuall on owner financing and then sell the lot for cash to an investor. Most can relate to owning the real estate and unlike trying to sell the paper on a mobile and taking a big hit to your profits, when you sell the lot you will put a big profit in your pocket. The profit will cover most of what you have in the mobile home. The last lot I sold I had $11,000 in it sold to a investor for $18,000. I had $12,000 in the mobile sold it for $24,500 with $2,000 down and a 10 year note @12.75%. End result 100% of money back in just over a year and Close to 9 years of free money each month. I still controll the real estate via a long term lease.
You already have the financing… - Posted by Dr./Craig Whisler CA
Posted by Dr./Craig Whisler CA on December 11, 2004 at 17:13:55:
…now just find a deal under 3k and save the unit you were looking at for another time.
Actually Philip, you might be able to use your profits off the first deal to help do your second deal.
Also remember that you already have an investor for deals under 3k. Why not try to find him MORE such deals and use all of them to pay cash for your more desirable repo?
Regards, doc
Re: If I have the deal, the funds can be found? - Posted by Tom (GA)
Posted by Tom (GA) on December 11, 2004 at 16:24:29:
Retirees
Just the other day I approached the neighbor of the home I’m selling now that’s in a park. When I first started rehabbing, he mentioned he was retired and wondered how this investing stuff worked.
I didn’t say anything about it for a month. Then I asked if he’d like to invest some of his money in these deals. He said sure. He has a couple thousand now and will have access to about $20k more in 5 months.
Tom
I am not there either… - Posted by Greg Meade
Posted by Greg Meade on December 12, 2004 at 06:22:38:
that’s why I declined the dough. I don’t really aspire to get there if truth be known. the point I am trying to illustrate is that it seems to be easier to borrow 150K than 3 0r 4K. Investors I’ve talkedto want t okeep large sums invested at superior returns and like stroking a single check one time to one person.
Maybe it is time to take that leap and step up to the next level Philip. the fellow with 5M to invest started with one Macdonalds restaurant and ended up with more than 12. sold all to a single person and retired phat. I really don’t see a lot of difference between what he did and what I (and you) do. With 150K I can do 4 cash or ??? leveraged deals.You can prolly do more cheaper. Just a thought for today from one guy to another.
Have e-mailed you a link to one investor from this Board that might be interested in a j/v on a single l/h. Whatchewgottolose? LOL
Regards,
Greg
Re: There are millions laying idle… - Posted by Philip
Posted by Philip on December 11, 2004 at 23:21:39:
I would decline any amount or investor that pressured me.
It is just not something I want, nor am I ready for…yet.
Outside of family and very close friends.
I will just look amongst these folks and look for small deals.
I would never attract the kind of money you are dealing with Greg, but thanks.
I am not to that point yet.
Philip
So you lease it from the investor? - Posted by Philip
Posted by Philip on December 11, 2004 at 17:46:42:
Even though you sold it, you control it with a lease that is as long as your mobile buyers note?
Is that correct?
Philip
Large Sums - Posted by Philip
Posted by Philip on December 12, 2004 at 07:17:20:
Thanks.
I am sure it is easier to find large sums.
I don’t have time to invest large sums!
Large sums scare me!
I saw a large sum once and couldn’t speak for several minutes!
Plus you gotta understand…to me…$20.00 is almost a large sum!
I do appreciate your advice.
Philip
Re: So you lease it from the investor? - Posted by Sam Chevel
Posted by Sam Chevel on December 11, 2004 at 18:08:47:
Yes, I lease the lot back. The attraction to the investor is that he gets the deed, owns the lot, and gets the monthly rent check along with the appreciation. Thay can relate to owning incoming production real estate much better than mobile home notes. It is something that they understand and feel comfortable with.
if you gotta think you might as well think BIG - Posted by Eli
Posted by Eli on December 12, 2004 at 20:13:52:
if you gotta think you might as well think BIG! I dont know who said it first, but I read it in one of Donald Trumps books and I have seen it somewhere else as well. So $20 is a lot what is a few more zeros on the end? Look at them as zeros and it is not near as scary.
2,000,000 to me is $20 bucks with five zeros behind it, now that is not so scary is it?
I once saw over $600 Million in Cash in one room, it is somewhat mind boggling to think about it, but at the end of the day it is just paper.
I have never met a wealthy person that is intimidated by large sums of money. Just a thought.
Rolling the dice is a sure way to lose your roll. - Posted by Dr. Craig Whisler CA
Posted by Dr. Craig Whisler CA on December 12, 2004 at 13:51:45:
A common cause of successful investors suddenly going broke is for them to take on new deals that are 10 or more times as large as any of their past 20 or so deals. Their former successes give them the self-confidence to think big. If your newest deal goes bust could you repay the money from your earnings off your other deals, that may be 1/20 as big? Generally not.
While this is not a hard and fast rule I would generally feel safest to limit those occasional big deals to no more than about 1/10th of my net worth. Even at that I might not sleep so well.
Gamblers who double-up on each successive bet when they are winning, ALWAYS go broke. The simple logic behind this seems to excape many folks. If you bet everything you have on each roll of the dice when you are winning, your bankroll will, of course, grow exponentially but when you loose, even one out of a thousand bets you will lose EVERYTHING you have and end up TOTALLY broke.
Its kind of like putting all your eggs in one basket and then placing it on the water and setting it on fire to light the way, hoping that when the flames reach the water-line they will automatically extinguish themselves. They just might, but I wouldn’t want all of MY money in that basket when the next big wave comes by. Would you?
Its not a wise to take on new deals that are larger than your entire net worth, regardless of how much money you think you might earn if all goes as planned. The same goes for borrowing sums of money that are fairly large in relation to what you presently have.
I’ve said it many times before and I’ll say it again:
There is many a slip between the cup and the lip. Plan for it. That is where reality is. The question is, is that where you are?
The Swami has spoken. :~)
Re: if you gotta think you might as well think BIG - Posted by Philip
Posted by Philip on December 13, 2004 at 06:12:21:
Even though I agree with that premise; I am not very casual with taking on big projects. Even the very safe ones. Here is the reason. I work too slow.
Part of the reason is my job. Part is my personality with investing. Part is a need for more confidence with experience. And maybe most importantly is I have only built a network of support for small projects…so far.
Thanks Eli. Hey, where are you from. One of our sons is named Eli and the name is not common. How old are you?
Philip
you know eli, I haven’t either… - Posted by Greg Meade
Posted by Greg Meade on December 12, 2004 at 21:18:04:
but i have met a few who are scared of leveraged debt. I guess it is all about tolerance to risk. I invest and purchase and borrow in an LLC or Sub S corp i control. I control options in a community trust, i own nothing but a laptop, tape measure, digital camera and my roth IRA has beneficiary interests in trusts.
someone wants to loan my LLC enough money to do 4-5 l/h deals when i am struggling and asking for ideas to fund deals and is willing to split net profits 50/50 i will take the chance and do it if i need the funds. Worse case scenario i am out some time and effort and “break even” with all my assets intact. Worst case scenario for investor is he puts up some money and it takes 6 months to recover his funds instead of 60 days. Unless no DD was done there should still be profit or at least some large write-offs.
best case scenario i net 60k (or more) and can do the next few with my own money. A little DD, a little leverage ,a little luck, a little risk…isn’t that mobile home investing? Fear can be a great motivator…it can also lead to self- limiting ideas and actions. there is a very fine line between fear and caution…a lot of savvy investors on this Board are cautious, i haven’t met many fearful ones…but it is still early and i’m still young.
Met a really cool 65 year old retired artist two months ago and he keeps 20-22 LD’s going all the time to supplement his Social security checks (average note payment 300!!). This is all the income he wants or needs and all the effort he is willing to expend…i really like this guy. He gets exactly what he wants from his investments…will this work for me?? no…too much like work. so i don’t do ld’s… i get a 200 referral fee to hook a buddy up that loves LD’s. i feel good kicking it with this investor cuz he is no competition…his interests are different from mine. Read a book on Thomas Edison…wow…he actually failed 2000 times before finding a filament element that worked for his light…two thousand failure before success, amazing!
You recently posted you bought a new Park in TX…is this working out for you? coming to MOMIII?
hope to see you there and would like to see your Park in TX…You know I am a Texan!(living in FL)LOL
Greg
Thanks Swami, I am risk adverse - Posted by Philip
Posted by Philip on December 12, 2004 at 18:27:01:
Even though I will look at new things and sources of money…I will not turn a business, or life, into a crapshoot. I totally agree with you.
Large sums scare me.
Ever since my wife started letting me carry up to $20.00 cash I have been nervous.
All kidding aside; I had an Uncle who owned a produce business and ‘grew’ it to death. He did well and expanded beyond his ability to manage it. He really did carry large sums of cash around with him also.
(He thought he was showing off!)
I am just not that way.
Large sums of other people’s money would scare me even worse!
Thanks Swami,
Philip
Re: if you gotta think you might as well think BIG - Posted by Eli
Posted by Eli on December 13, 2004 at 09:33:44:
That is the beuty of investing… There are SO many opportunities out there that there is always one just the right size Everyone is looking for. Happy investing
Where am I from that is a whole new story. Though I currently reside in San Antonio, home is where the heart is and I would have to say that is in New Zealand and San Diego. Within a few years I will have a home in both places and I will then tell you which I would consider MOST home.
I hope to be there - Posted by Eli
Posted by Eli on December 12, 2004 at 22:22:28:
The park is coming together beautifully so far. I will post on it before too long As for MOMIII it is in my calendar, but time will tell when we get a little closer to the day.
Anytime you want to come back to Texas for a trip, mi casa es su casa, really and I hope you take me up on it.
As for Edison, wasnt it him that said, “all you have to do is be right 51% of the time?”
Thanks for everything Gregg, you are a wealth of knowledge.
let me clarify - Posted by Eli
Posted by Eli on December 12, 2004 at 20:22:32:
Well after reading you and Doc’s two last posts it probably makes me look like a fool throwing LARGE sums of money at the wind. DONT EVER GAMBLE, with your own money and especially not with other peoples money. I dont Gamble but I do bet on a sure thing. There is a BIG difference in the two. Now lets suppose that a deal comes along that you know will be able to sell for $500,000 and you can buy it for $250,000. Is that gambling, I say no. Is it betting, yes you are betting and any risk you take in business is betting essentially, but you CAN stack the deck in your favor, by entering correctly AND with the right knowledge to help you through it all.
San Antone is good by me! - Posted by Philip
Posted by Philip on December 14, 2004 at 13:53:41:
We travel in Texas a lot and I like San Antonio.
It doesn’t smell like Amarillo ‘by morning’ and has some nice country nearby.
(I spent the night in Amarillo only once, it may not smell everyday"
Philip