Posted by Chuck (AZ) on June 18, 2001 at 13:53:18:
Asphalt roofs? Who came up with that bright idea? Anyway… you can get the materials to do this at Home Depot, and have your handyman apply it.
If the windows aren’t 3’ off the ground (that’s another winner of an idea), jack the home up to that level. It’d be considerably cheaper than altering the construction.
Firewall around the water heater and stove is overkill, but Home Depot has the material… shouldn’t cost much to impliment it.
It sounds to me like this PM is trying to keep the “players” out of HIS park. Bend the rules to your advantage.
If you can’t afford to have $3k tied up in the home on contract, start buying them cheaper ($2k)and reselling them higher ($5k). It’ll generate some cash flow to support the higher priced deals. In short, your aiming too high for your immediate goals.
If the “home” approach works for you, stay with it.
I hope Lonnie or any of the many successful folks I spoken with can help with this.
Question 1: Ok,…I find a great deal on a mobile. i buy it cash for $5k, I sell it for $2k down and $250 a month for 36 months (all approximate #'s just for the example)I turned it quick and have a nice little note, BUT…its still 12 months before I recoup the other $3k of my original $5k invest ment unless I find a cash buyer. NO ONE around here will touch a note on a used mobile, same reason they dont loan on em to start with : shaky people. So now, Im broke till I get my original investment back! Due to this, Ive been using my limited funds to get houses. I mean, I just got a 2014 ft 4br house, a HUD repo, and it only tied up $3k and Ill turn it in 60 days…for $153K. Ive talked to people on here doing 2-3 deals a week! (hi Jacque) and they are doing great. Im stymied.
Question 2:Im running into nearly all of the parks requiring an asphalt roof. So heres the deal…you find the great deal for $3k, can make $10k out of it and BOOM! the PM sez 'You gotta put an asphalt roof on it, or move it outta the park" well…ashphalt rooofs are only $4K to put on…Ive only found a couple of small parks that are not going to this and…several are making you change the windows so that they are now 3 feet from the ground as well as firewall the oven and water heater. its unreal…It seems like everyone Ive spoken to about this sez “what! i dont have those kinds of problems/restrictions, i just follow Lonnies book and Im good to go” So help!
Re: Questions/frustrations - Posted by Jacque - WA
Posted by Jacque - WA on June 22, 2001 at 11:41:31:
Hi Mike,
I would definatly follow Lonnie’s advice, it works.
Selling partials of your notes is a solution to maintaining your cash flow and again, follow Lonnie’s advice.
As we have already talked about previously, I haven’t heard of the asphalt roof problem within the parks in my area. Get out of that park and move on to the one that needs and wants your business. Your swimming upstream in this park, find another. They are out there - afterall you even have the whole Portland area to make deals in. Keep trying.
If you have $5,000, do two deals instead of one. This will greatly increase your profits/yields and decrease your exposure. If you need to recover your cost, sell just enough payments to do so, rather than selling the entire note.
And who do you sell to? Attend local Investment Clubs, RE Groups etc, and meet the people who have money and want to invest. There’s plenty of money out there, you just have to make the rounds and start networking and locate the investors.
As for the problems with the park requirements, and an unreasonable PM, that’s easy?skip that park and find one that wants your business. Quit trying to swim upstream. Just follow my triple S system?Small deals, Short notes, and keep it Simple.
Review chapter 5 in MMwMM again. There’s several examples of actual deals with little or no money. Use the same techniques and make them work for you.