Posted by Lori on July 31, 2006 at 09:03:05:
HI Lonnie:
Yes I know there are mobile homes here however…lonnie deals are not!!! YOu could not buy for 2-3k…more like 50-60k and higher…that is why I need to go somewhere else…I also want to move out of CT…so this would be a great way to find a destination… that is why I am looking for advice on how to do this somewhere else…I plan on making my attack in mid-sept and will do some research before then…any suggestions are helpful!!
Thanks.
Lori
Weekly Tip - Posted by Lonnie
Posted by Lonnie on July 26, 2006 at 15:56:30:
Hi Folks,
I was going through some old files and came across some ?Weekly Tips? that I posted long ago. Thought maybe they might be of some benefit to some of you who haven?t seen them.
This weeks tip
By NOT quoting an interest rate when negotiating with your buyer, you can sometimes add several extra payments to your note, and increase your profit considerably. I’ll cover one of my sales to illustrate what I mean.
This home was priced at $11,900. When talking with the potential buyers, I learned they could pay $1,500 down, and ?about? $250 per month. If the note had been structured at the usual 12.75%, (the industry standard) I would be due 55 payments of $250.67, totaling $13,786. But since I had not quoted the buyers an interest rate, or the number of payments, I asked the buyers if 60 payments of $250 per month would work. It did. So I?ll collect $15,000, an extra $1,214. If you run the numbers, you will see that the interest rate works out to be 15.47%, instead of 12.75%. The difference in the interest rate is less than 3%, but it?s added five more payments to my note.
Were the buyers concerned what the interest rate would be? No, they never asked. Were they concerned how many payments there would be? No, they never asked. Their only real concern was being able to buy the home, with affordable payments. So, keep this tip in mind when negotiating your next note. It will put more money in your pocket, with no additional cost.
I?ve found that people who live by the ?How much down, How much a month? mentality like things to be simple and easy. So instead of structuring a note with an odd payment amount, round it off to the next highest even number and adjust the interest rate. It makes it easier for them when they write the check, or get a money order.
Happy investing,
Lonnie
Re: Weekly Tip - Posted by Lori
Posted by Lori on July 27, 2006 at 13:35:39:
Hi Lonnie:
I am just starting to read your books and look foward
to mobile home buying. I do have one question
thought…I live in CT…not a state of mobile homes!
So, what would be my option to look out of state?
How should I go about that? I was thinking SC or
NC…VA I guess is a big state for mobile homese
too???..but I dont know where they are popular? Do
you think the DMV…would be helpful on telling me
where the big parks are?
If you could guide me on this that would be wonderful
I look foward to hearing from you.
Lori
Re: Weekly Tip - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on July 28, 2006 at 11:54:48:
Hi Lori,
After you finish Lonnie’s books, you will develop new eyes that now see all the mobile homes around you. Everyone says their aren’t any parks or mh near them, then they start to see them and are amazed. As for finding parks in your area, contact your state office and ask them what organization monitors the parks in CT. They will give you the name and phone #. Call them and they usually will give you or sell you a list of all of the parks in CT. Start with the ones closest to you and work out. There are less in the big cities and more in the outskirts.
As for Repos, upper state New York has some. In Maine the repo market is small because the banks will lend on older singlewides. However, you can find deals in the Uncle Henrys (Pennysaver, Little Nickel, etc…), from new mh dealers, from mh movers, etc… You can find deals. The key is to look at a lot of them. Take Lonnie’s model, use it in your area, and add onto it where the opportunities arise.
Best investing, Chris
Re: Weekly Tip - Posted by Lonnie
Posted by Lonnie on July 27, 2006 at 15:09:33:
Hi Lori,
Check this site?http://www.mobilehomeparkstore.com/. It has parks for all states listed. I just pulled up 27 for CT.
MH?s are everywhere, over 9 million nationwide. Pick a place you like, learn the market and start doing deals.
Good luck,
Lonnie