Lonnie Deals in Santa Cruz? - Posted by Kathy Kritikos

Real Estate Investing Mobile Homes & Mobile Home Parks
1

Posted by John (OR) on October 26, 2004 at 09:03:34:

Kathy,

Two views.

  1. It is always hard to get started. Most of the time harder then it
    sounds in any course or book. Mostly that is from the learning curve.

Profitable deals are not as common as the unprofitable ones. Hence
you will research a lot more deals then you ever do.

  1. Some areas are a lot more difficult then some other areas. I stated
    my RE investing (SFR deals then) in the Bay Area (San Jose). The Bay
    Area is always difficult in that the numbers are large and there are
    folks with cash who compete with you.

In my case it just meant I had to think out of the box and look harder.
A friend took a different approach and only invested out of state. Many
would say he was taking more risk (investing at distance). He did better
then I did as his deals were more profitable. We both did just fine.

John

2

Lonnie Deals in Santa Cruz? - Posted by Kathy Kritikos

Posted by Kathy Kritikos on October 25, 2004 at 20:04:41:

I’m considering purchasing Lonnies courses to do his strategy in my area. The Manufactured Home - Upgrade people offered my friends $50,000.00 for a 1972 single wide appraised at 59,000.00 to do a “Pull-out” so they could get the space to put a new MH in which would sell for 150-200k. With this kind of competition canvasing every park each week, how could I compete to do Lonnie deals here? Thanks for any comments…Kathy/CA

3

Do what works… - Posted by Eli

Posted by Eli on October 26, 2004 at 21:39:08:

Ok so there are PROFESIONAL investors buying 59,000 homes , pulling them out and putting another one in (lets say at a cost of $30,000) and making about a 100% return.

All right we need to analyse this a bit, why are you trying to do what Lonnie does back east. If there are prfessionals IN YOUR AREA doing one thing watch what they are doing and LEARN!!! THere is a reason they are not buying these homes at $50,000 and selling them for 75,000 or whatever. There is more in it ANOTHER WAY!!!

Lonnie’s model is great in many many places, but in some areas it needs to be tweeked a bit to make it work . What if you did what the profesionals are doing in YOUR area. It is still essentially a Lonnie Deal, it just has another 0 on the end of it. (instead of 5,000 it is 50,000). If you can get a typical lonnie deal return of lets say 100% would you rather have a 100% return on 5,000 or 100% return on 50,000.

I do know what you are dealing with, I am in San Diego and it is the same here, this “problem” of homes being TOO expensive is really an oportunity if you look at it that way. Is the glass half empty or is it half full.

Here in San Diego I think the market has started to turn. I see 4 times as many 4 sale signs on the side of the road as I did 6 weeks ago. I am getting out of here and going elsewhere for a couple years, but I will be back. I love it here, once prices correct I will be back.

As for your situation, if the home prices fall in your area because people with ARM morgges cant afford their payments, MH’s might be a good bet because they still provide a roof over the head, but they are cheaper.