Drive through parks and write down the number of all vacant homes and homes with for sale signs. Go to the managers office or ask a tennant for the managers phone # if the manager is offsite. If any phone # match the managers these are park owned homes. now call the manager and set up an appointment to see them face to face do not do this over the phone. Be honest and tell them you are just starting in this business and are looking for homes to rehab and sell on time. Ask if they have any homes that need rehab. Be positive and dress in jeans, you want to look like you don’t mind getting dirty. Stress to them that you want to work with them to get some homes back on the rent rolls try for one or two months free rent for you only if the home sells the new owner owes rent the day they close! Bring a flashlight and checkbook with you check out the homes before you sign anything. Now this won’t work in 8 out of ten parks but I am doing my third deal in the same park. The first two sold within three weeks so now the park owner wants to do more business with me. Good luck and keep trying its only practice, until someone says yes!
ok, I read the book and am ready to start. I don’t have any money. What I do have is good credit. Lonie had mentioned in his book about selling the note to get money back so you can repeat your efforts, BUT no one wants to secure the note unless its a Mobile on land(secured by land). I can scrape enough money to buy the first 1 or 2 but if I have to hold the note to term it will be a while before I can buy any more… Does any one knwo how to keep get some capital back to keep buying?
Disclaimer: Newbie with two deals about to give advice!
I have seen posts about startup capital posted a few times since coming here in March. I really do not see the problem, if you have good credit as you say. I also have good credit and typically receive 3 offers per week from credit card comapnies offering me incentives that will give me between 6K to 10K for no interest no payments for 6 months or so. Of course interest is accrued so you want to pay it off, but interest is also less than 10%. I just bought a home yesterday with a credit access check (MBNA Platinum VISA) for $2500. I have the no pay or interest thru January, but had to pay $40 finance charge. I am selling the same place for $7500, $800 down, $182.25/48 mo. 13.75%. Actually just showed it to 2 folks this afternoon and both are applying at the park in sort of a race! Anyway, I will have to use some extra funds each month from other notes, but will have this paid off before interest comes due. I decided to go this route as opposed to selling partial or full note (although I know I can do that and may do so down the line). It just seems that if you have good credit then it is not very difficult as people are lining up to give you money because you are a good investment for them.
On the other side I feel that if a person has bad credit he/she has no business doing Lonnie deals or anything else until they learn fiscal responsibility. I had to do so after I had pretty much screwed myself earlier in life (I am 32 now). I understand time value of money and yields, which is one reason Lonnie deals appealed to me. If you think your financial problems will go away by doing some mh notes, you are in for another harsh lesson IMO.
BTW, I signed my paperwork for the park on the home I bought yesterday and the park manager tells me that there is a nice place for sale for $100. Guy is sick in the hospital and just needs to get rid of it. I drive by and peek in the windows. Looks like early 70’s 12X70, but is VERY nice inside. Looks like I onto my next deal! Thanks all here.
Posted by Karl (Oh) on August 04, 2002 at 21:11:24:
No one wants to secure a note unless its on land? Not true. A home doesn’t have to be on land for the note to be marketable. The discount might be drastic, but you can sell a note on a home in a park. In fact there was a note buyer trying to drum up business right here just the other day.
A better solution might be to sell a partial to a friend or family member. Give them 15% or 20% return, get back your initial investment, and do another deal.
Go back and read DOW again. Lonnie describes a number of ways to do deals with other people’s money. I assure you that by the time you’ve done your first 2 deals, opportunities will present themselves.
“On the other side I feel that if a person has bad credit he/she has no business doing Lonnie deals or anything else until they learn fiscal responsibility.”
I really feel like this comment is harsh. Not everyone with bad credit is at fault. There are circumstances in life that happen to even fiscally responsible people.
Didn’t want to start a flame war or anything. Just wanted to speak up for those of us who had things happen to us out of our control and are trying to do the best we can to remedy the situation without making ourselves or our familes suffer any longer than the have to.
Re: Starting Capital$$ HELP - Posted by Vivian Coleman
Posted by Vivian Coleman on August 06, 2002 at 15:43:26:
Thanks, I am new and since coming to this board with all the knowledge here. I am slowly, but surely putting it all together…Thanks everyone, for everything. You all have been very nice and helpful.
Thanks, for the advise regarding selling the notes w/o land to secure. I called quite a few companies and they all said no.
As far as friends and families. There is NO ONE I know who has money(and I don’t want to end up like them), that they put in savings/ CD’S or whatever. I am an adult who is the first in their family to have graduated from High School. No one I know is investment savy, or would even suport what I am about to do. I am self taught in everything I do. How about running ads? who should I approach? where can I find the alternative investor? I am ready to come up with capial and I live in an area where there are homes a plenty. But without a way to get some capital back, I would be stuck after two deals.
Go to every park in your area. Ask the manager if they have any mobiles that they would like to get back on the rent rolls. Tell them to give them to you or sell them real cheap in return for rehabing and geting them back on the rent rolls. Hey it worked for me!