Posted by Chuck (AZ) on July 30, 2001 at 18:21:36:
Point made and taken Charles.
Consider tho if you will, that I used to be a blue-collar factory worker, who put in 10 hour days, and 6 day weeks… earning about $28k a YEAR.
Now I make over $30k a MONTH in PASSIVE income, from my RE investments.
Normal be dammed.
Life through the eyes of a PM - Posted by Trent P (IL)
Posted by Trent P (IL) on July 30, 2001 at 24:52:17:
Hi all,
I’m getting prepared to begin my search for my first Lonnie deal. The forms are ready… the tools are ready for repairs (if necessary)… the cash is in my account. So I begin the search. As Lonnie suggests, I’m thinking about running ads, driving through parks, getting to meet park managers, and posting on bulletin boards. I’m curious about the park managers though… Why would a park manager want to work with someone who does Lonnie deals instead of doing it himself? It seems to me it could be quite lucrative for him/her.
Regardless, I plan on meeting a few next weekend and explaining this business and the associated referral fees, as is suggested in Deals on Wheels. Lonnie also mentions that he usually says that he tells the PM that he is trying to help a young couple find a place to live. Is this recommended? I wasn’t planning on trying to find a buyer until I purchased a home, so I have no real way of knowing who will buy the place. Is it acceptable to just tell the PM that you desire his approval before selling the mobile home to a buyer?
On another note, thank you all for the inspiration - this board is extremely helpful. It’s a little scary doing something like this for the first time, and this group helps provide the confidence to make the first leap.
Trent P
Re: Life through the eyes of a PM - Posted by Karl (Oh)
Posted by Karl (Oh) on July 30, 2001 at 02:50:41:
The PM?s I?ve met in my area don?t do Lonnie Deals for several reasons. They have their hands full just trying to run their own parks. Or they just don?t recognize the opportunity in front of them. A couple other parks have their own realtor service, but only want to play with the newer homes and buyers with bank financing. The owner of one small park where I?ve done 3 terrific cheapo deals thinks I?m crazy for financing the homes myself. He owns a couple of newer homes in his park, and is waiting for buyers that can get their own bank financing. Another PM I work with inherited about 10 mobile home notes when his company took over the park, and he thinks they?re a thorn in his side. He?s not about to create more notes. So there?s a number of reasons why the average PM isn?t doing deals in their own parks. But of course, as evidenced by Chuck, some do.
I wouldn?t expect to find any park managers in their office during the weekend. All the PM?s I?ve ever met keep 9-5 business hours during the week. The nice part about the ?helping a young couple find a home? approach is that it lets you introduce your business to the PM gradually. (You could always say later that the young couple fell through, and start looking for another buyer). Until you get a feel for the PM?s receptiveness, I would suggest NOT hitting them over the head with your whole business plan right away. Don’t count on all PM?s being logical businessmen who are going to recognize right off the bat all the wonderful benefits of letting you work in their park. To get started, you just need their approval to buy one used home, and resell it with financing. Spoonfeed them more info about your business as you get to know them better. Deals on Wheels covers this thoroughly, I would stick with Lonnie?s suggestions. They?ve served us all well. Your relationship with the park manager with be the most important factor in your business. Become the park manager?s ?problem solver?, and he?ll recognize the value of having you around.
When you get some possible deals in your sights, run them by the group.
Good luck!
Karl Kleiner
Re: Life through the eyes of a PM - by a PM - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 30, 2001 at 01:07:36:
First of all, not only do I do “Lonnie-deals” but I do them in my own park… the down payment for which came from doing those deals.
In fact, I own 2 of them (parks that is), and I recently branched out into NNN-leased commercial properties.
Having said all that (to inform, not to gloat), Lonnie’s books are like gold for their value… I’d follow them like a religion if I were you.
My only advise is to be straight-up with any PM you talk to… your an investor who buys and re-sells home for a profit… and working with you helps the PM meet his goals… keeping the lot rent flowing.
Now go read every post I’ve made to this forum… it’s worth your time and effort.
Straight-up.
Chuck (AZ) Re: The down payment for which… - Posted by Kevin (OK)
Posted by Kevin (OK) on July 30, 2001 at 07:18:57:
Chuck, did I read your post right? The cash for the downpayment on your MH pak came from doing Lonnie deals? If so, I find that HIGHLY motiviating.
Kevin (OK)
Re: Chuck (AZ) Re: The down payment for which… - Posted by Chuck (AZ
Posted by Chuck (AZ on July 30, 2001 at 10:03:00:
Not totally, but yea… a nice chunk of it did.
Re: Chuck (AZ) Re: The down payment for which… - Posted by Christine Smith
Posted by Christine Smith on July 30, 2001 at 10:56:23:
Can a normal working person with a $1000.00 in the bank get started in this business. Thanks
Re: I’d rather be abnormal anyway - Chuck - Posted by Doris - Va.
Posted by Doris - Va. on July 31, 2001 at 15:33:23:
I’ve been abnormal all my life!! Ask any of my relatives and friends. LOL
Anyone who babysits gold mines or lives in a tent (my husband’s Fire Dept. buddies asked why he didn’t move us into a real house?) and keeps looking to strike it rich and make the real money.
Heck Yes!!!
We are all abnormal but at least we know it takes more than buying a lottery ticket to strike it rich!
It takes education, determination and turning a deaf ear to all those regular job holders you are surrounded with who know you are not only abnormal but downright crazy as well.
It also takes the help of others who have been where you are and are willing to share there wealth of knowledge with you. They are the ones you listen to and they know we may be abnormal but far from crazy.
As I said, I have been abnormal all my life and I don’t think I will change now. This is too much fun! LOL
Doris
Re: Chuck (AZ) Re: The down payment for which… - Posted by Robert (NC)
Posted by Robert (NC) on July 30, 2001 at 13:20:36:
Christine,
As with everything else… It depends. We are going for our first deal in the 2k to 3k range. But to make my wife feel better about this, we have put together the outline of a business plan (most of which is shared below).
Here is what me and my wife agreed too:
In the short term, I have started reading the Sunday classfieds, and startd to scouting out the local MHP’s. In August, I will start meeting MHP managers to see which ones I an do business with, I will also start attending the Real Estate Investment club in a near by town.
I have found several MH’s in our area for the 1k, you have to start, but they all had to be moved. If you have patience I’m sure you will be able to find a deal in your price range…
Robert.
Re: Chuck (AZ) Re: The down payment for which… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 30, 2001 at 13:14:36:
IF you mean buying a mobile home park… no, that takes considerable more cash/credit.
IF you mean doing “Lonnie-deals”… yes.
I’m in the pre-release stage of a new method, that will allow those who want to do these types of deals, to get started with very little money out of their pocket… gain invaluable experience that can applied to future deals, and provide the cash to do those deals with.
If you’d like to be added to “the list” of interested parties, send me an e-mail to that effect.
Business plan - Posted by Karl (Oh)
Posted by Karl (Oh) on July 30, 2001 at 16:53:25:
Robert,
If I may I’d like to share a few thoughts about your business plan. It sounds like you and your wife are very cautious about getting started. You obviously have a low tolerance for risk right now. No doubt that eliminating bad personal credit card debt and building up your savings requires sacrifice and financial discipline, and is a smart move.
The downside to this plan is the long delay before doing your first deal. Sounds like it might not be until early next year. That’s a lot of valuable time that you’re letting pass by. There’s a certain amount of faith required when starting this business that this concept will work and that it will be profitable. The level of risk you’re willing to accept will determine how aggressively you’re able to tackle this business. If you’re going to build a portfolio of mobile home notes (assuming that’s your goal), you’ll probably have to incur some good business debt to get there. And its likely to be a lot more than $5k.
You have the knowledge right now to start doing these deals. And you know where to go when you have questions. Without giving up the personal financial goals that are important to you, I’d recommend you consider exploring some ways to start doing deals now. Possibly bring in an investor or a partner? How about finding buyers for bank repos for a commission to generate some cash? You don’t need to have a lot of money to start doing deals. Just more creativity.
I’m making the assumption that you’re serious about mobile home investing. Its going to take a lot of Lonnie Deals to get you to your mobile home park. There’s no time to waste!
As always, no absolutes, just my opinion.
Karl Kleiner
Re: Can a normal working person - Posted by Charles K. Clarkson (TX)
Posted by Charles K. Clarkson (TX) on July 30, 2001 at 17:47:06:
Christine Smith:
“Can a normal working person with a
$1000.00 in the bank get started in this business?”
Chuck:
IF you mean doing “Lonnie-deals”… yes.
I have to disagree with Chuck here.
A normal person wouldn’t post here.
A normal person wears blinders throughout life.
A normal person thinks a job is the best security.
A normal person doesn’t take chances.
A normal person can’t conquer fears.
A normal person won’t step out of line.
A normal person listens to normal people.
A normal person just complains.
A normal person can’t do this business.
A normal person will not read these posts.
Christine, you are NOT a normal person.
No one here is!