Re: Question for Lonnie & Ernest - Posted by Lonnie
Posted by Lonnie on October 07, 2000 at 07:10:00:
You’re in mobile home heaven. Not sure about the past year or so, but before that, approximately 50% of building permits in NC & SC were for MH’s. That should give you some idea of the tremendous amount of opportunities in this biz.
If you’re just starting out and looking to create cash flow, I recommend the cheapo homes that are already in a park, and can stay in the park. The homes I specialize in are usually single wide, 10-20 years old, in family parks. Buy it wholesale, sell it retail, and create a note. Then do the same thing again and again. Since you’re not buying the dirt, your money will generate much more cash flow with just the homes.
Stay away from moving the homes, at least until you get considerable experience. You can buy another home for the cost of the move. Not to mention the aggravation and time involved in the move and reset. To get started, find a couple of parks with a cooperative manager, and do just one deal. Then go from there, one deal at a time.
I don’t usually do a commercial for my books, but in your case, I am suggesting you get a copy of Deals On Wheels (borrow a copy if you have to). I think you will find the answers to all your questions there. And if you’re serious about making it in the MH biz, you need to be at the workshop in Atlanta. You will learn all you need to know about MH’s, parks and notes/financing. And I can assure you, one mistake can cost much more than the workshop.