Posted by Michael(KCMO) on October 04, 2007 at 06:19:32:
I have been repaid many times over for any help I may have provided others. I have made invaluable friends, been given much encouragement & motivation, seen many new perspectives, gained much knowledge & wisdom and, of course, been given a swift kick in the rump when I needed it!
Rodney, Ruben is right. If there is someone posting from your area then get in touch with them. Offer to buy them lunch to sit down and pick their brain. Participate in your local REI group. Etc, etc.
And to all my friends, mentors and colleagues . . . THANK YOU!
Posted by Rodney Walker on October 02, 2007 at 18:38:47:
Hi guys, Ive decided to go ahead and purchase Lonnies book, although I have
not yet, I will get it tonight. I take it its a download right? Now, my question is
this, before I purchase the book, do I need money to do this? I am flat freakin
broke. Im willing to educate myself, but I really need to know do I need money
to make it in this business. The idea I have about the business, is buy, fix up,
and resale. Who is usually the buyer that I would resale to an investor looking to
rent out, or a family, or single person looking for a place to stay?
Posted by Anne_ND on October 03, 2007 at 07:41:40:
Rodney,
Some good points have been made. You can do this with little money if you have expertise and connections in notes or sales or some form of RE. With no expertise, you will need money as a parachute/worst case scenario type thing. Depending on your market, you should have at least $4K emergency money for the first few deals when you end up with 3-4 months of carrying costs and some repairs that you never knew to expect, and the nice PM who turns uncooperative when they find out how much money you might make.
The last few questions you ask in your post can only be answered by someone in your market. You’ll have to do that homework. How well you make out on your first few deals will depend on how diligent you are about learning your market, how patient you are, and how good your people skills are. The people skills are a pretty important part of the equation.
Much will be revealed when you get your DOW.
Anne
BTW, I “retired” from my full-time job after 4 months of doing Lonnie deals (although I came from 3 years experience rehabbing and renting SFHs). Good luck.
Posted by John Merchant on October 03, 2007 at 04:08:37:
I agree with Steve here, and if I were you I’d dig up a money partner to do the first deal or so.*
Even if you find an older tin can for $1000, you’re going to need to pay the MHP rent for a month or two or until you find your buyer.
Also you’ll need a little fix-up money to get the trailer ready for your “Lonnie” buyer.
But go ahead and get the book and absorb it.
Then start looking for deals and partners, and remember that to a money guy, you could be a Godsend…as he might not have time or opportunity to go dig up the deals where you might do so.
*on structuring a p’ship deal I’d sit down with the money person and just do a little conceptualizing about what he wants and needs and then ask him what he’d consider a fair deal between you.
Once you do have an agreement with such a partner/investor, I’d then make haste to get it in writing so you both clearly understand who’s to do what, get what, etc.
Nothing more frustrating than for you to do a bunch of work then have your deal drizzle down the drain because you and the money partner can’t agree on what you agreed on!
Posted by rise2it (VA) on October 03, 2007 at 03:22:46:
How bad do you want ‘it’?
What are you willing to do for ‘it’?
If success had no price, everyone would be successful.
Get a 2nd job - Get a 3rd job, or whatever it takes to get yourself ‘ahead’, along with the discipline to invest in your future instead of things you may want ‘now’.
you’re not going to like this - Posted by Steve-WA
Posted by Steve-WA on October 02, 2007 at 18:56:23:
Time and again, people have simple questions, that lead to more and more simple questions. And time and again, they are advised to drop $30, buy DOW, READ IT TWICE, and then do a little windshield research, and market research, THEN come ask questions. 99.999% of the most common questions are either a) answered in the book, or b) answered by asking the right person, i.e., tax question? Ask the treasurer/assessor. License question? Ask Licensing. Title transfer question? Ask the titling authority.
Yes it can be done without money, but that takes a lot of finesse, which usually the beginning investor does not have.
Fact is, there just ain’t ANY businesses that one can start without SOME kind of startup capital. Heck, even a lemonade stand takes lemons and sugar!
That’s awesome, Anne, about you retiring 4 months after doing Lonnie
deals!
I’m kind of on the same boat as I’ve got 5 years experience wholesaling
and landlording SFHs. It took me 2 months to find my 1st Lonnie deal. I
had to go out and learn my market. Now, the opportunities are coming
b/c I can recognize a deal.
Out of all the investment vehicles out there I’ve tried so far, I like
“Lonnie deals” - the returns are great but it’s so much more fun!
Re: you’re not going to like this - Posted by Ryan B (KS)
Posted by Ryan B (KS) on October 03, 2007 at 08:08:12:
I’ve never invested any of my own money into any of the three deals that I’ve done so far. I went to www.prosper.com and got a loan, then went out and did some deals (after reading DOW). I currently have an investor and I’m talking to a few others about some sort of partnership. It helps a lot that I’ve already done a few deals when talking to those investors. They have all the same questions that anybody has when first presented with this business.
I am lucky to have Ruben Flores and Michael (KCMO) in my area and they were and are invaluable mentors, even though I don’t always love what they have to tell me :). If you can find someone in your area that can guide you a bit, that would be pretty valuable.
Re: you’re not going to like this - Posted by Ruben (KCKS)
Posted by Ruben (KCKS) on October 03, 2007 at 10:31:28:
Rodney,
A mentor does not have to cost you money at all. The mobile home community is very giving as was taught to us by reading, meeting in person and meeting people who were influenced by Lonnie Scruggs and Ernest Tew. Those mentors to the mobile home industry taught many of us to pay it back and we take that to heart.
Michael Stilfield helped me when I first started out doing Lonnie Deals and even referred my first deal to me. Both Michael and I now help local investors who want to get started in Lonnie deals without thought of repayment or compensation because that is what we were taught by others here on this board.
Look for a local investor doing deals. Buy him or her dinner and go look at their playground. If you can attend a mobile home event such as the MOM and network.
Good luck and let us know what you think after you read the books.