Posted by Lazaro - NC on February 02, 2007 at 15:24:58:
I think $9500 would have been more appropriate, but the young man I sold it to is a friend of a friend. I decided to give him a good price.
The down payment comes from the tax refund. I don?t know about down payments in my area, since this is my first trailer deal.
Thanks,
Lazaro - NC
My First Success Story…! - Posted by Lazaro - NC
Posted by Lazaro - NC on February 02, 2007 at 15:11:13:
My first deal?
I read all three books from Lonnie then set out to find my first trailer. With advice with some investors from this message board, I cautiously looked for trailers. I made a deal with an investor in the area. He buys trailers from companies like Vanderbilt Remarketing and other places, and reseals them. He had just won a bid for a 14x70 1994 trailer in a convenient location. He flipped it over to me, and we made a deal for $3250.
MY FIRST MISTAKE
I did not read WOD twice. Someone on this message board told me to go back and read the book again, and I didn?t. There is too much info in the book to be absolved with one time read, it is important to go back and read it again.
MY SECOND MISTAKE
It was to pay half of the money ($1625) as a deposit when he did not have the title from Vanderbilt yet and there were three months of back rent owed on the lot. He promised to pay the lot rent, and to give me the title by January 15th. He did as he told, he paid the back rent and gave me the title before the end of January.
Two days after I gave the deposit and singed the purchase contract, I had the trailer sold for $8500, with $3000 dollars down payment. I had to spend about $1500 in carpet linoleum, fixing walls, paint, refinish kitchen counters and a couple of faucets.
So the deal looks like this:
Paid $3250
Fix up cost $1500
Sold for $8500 with $3000 down and $200 per month at 18.5% interest
My calculator tells me that my yield from an investment of $1725 with $200 per month for 36 months is 134%
God bless Lonnie Scruggs and everyone in this message board that helped me.
I am now looking for my second Lonnie deal!
Lazaro ? NC
Re: My First Success Story…! - Posted by Tony Colella
Posted by Tony Colella on February 05, 2007 at 09:44:07:
Congrats Lazaro!
The first deal is always the hardest. There is so much to prove to yourself that this really does work and works in your area. We have to overcome not only our own concerns but also those of any friend or family member who knows we are trying to invest in trailers (of all things).
Any time you can make mistakes, learn from them and still make a 134% return, you are doing alright (and you are doing a lonnie deal). I never found a stock pick I could make a mistake and do that well on!
Keep reading and applying Lonnie’s material and as you have already discovered, it will lead you to the money.
Tony
Re: My First Success Story…! - Posted by Berno
Posted by Berno on February 05, 2007 at 09:22:40:
Great job, Lazaro! Keep at it…and don’t forget to read those books again!
-Berno
Re: My First Success Story…! - Posted by Ryan (NC)
Posted by Ryan (NC) on February 02, 2007 at 19:58:19:
Not to shabby for your first deal, Great Job! Have fun and make some real money, hope to hear more from you in the coming months.
Best Wishes,
Ryan Needler
Re: My First Success Story…! - Posted by JeffB (MI)
Posted by JeffB (MI) on February 02, 2007 at 15:17:14:
Congrats, Lazaro! That’s a darn nice deal for your first, I wish I had done that well getting started.
Just a question, but $8500 sounds awefully cheap for a 1994 fully rehabbed home in any area. Either way, if I had a buyer with $3000 cash down I would sell to them at whatever price it took to get the deal done. Was this somebody’s tax refund money or are those kinds of down payments customary in your market?
Jeff
Re: My First Success Story…! - Posted by Lazaro - NC
Posted by Lazaro - NC on February 05, 2007 at 09:48:41:
You are so right… My wife did not believe that investing in trailers was a good business. When I came home with the $3000, she told me she is a believer. She wants me to go get more trailers now.
Thanks for your help.
Lazaro
Re: My First Success Story…! - Posted by Sailor
Posted by Sailor on February 03, 2007 at 10:25:13:
Because of the earned income tax credit, folks in my area are now
walking around (though not for long) w/4.5k from refunds. Get it
while you can for something of benefit to the buyer, because once
it is in hand, it doesn’t last a week.
Lazaro, congrats! Next time charge retail, but through in a bonus
like a FREE fireplace, tv or BBQ. Often something like that is
appreciated more.
Tye (who has Target rainchecks for 3 $89 flatscreen 20" tvs @
$89)