Best Lender In Town: Creative RE
Loanwizard sparked a thought in me that has not left for the past five minutes upon reading one of his posts.
Scenerio:
Purchase 12 MHs:
$5000.00 a piece (est.)
Total = $60,000 spent
All in good condition
Resell for:
$9000.00 (on average)
$375.00 per mo. for 2 years
w/ 0% interest on each
(superb deal)
I would make $48,000 (minus expenses) by the end of two years, right?
Check this uncanny Einsteinal process out:
Imagine....
I take the $108,000... ok... $100,000 ($8000.00 for my wife's wal-mart trips) to purchase 20 more MHs (about $5000.00 a piece) and repeat the same simpleton formula as above. Let's do the math ladies and gents....
Resell 20 MHs for:
$9000.00 a piece
$375.00 per mo. for 2 years
w/ 0% interest on each
(once again... superb deal)
I would make $80,000 dollars profit by the end of two years. Can you see the exponential gain? Four years with a net worth doubled... and that's without adding interest!!!
Think I'm a day late and a dollar short on the idea?
Well, I strongly believe I could do this process on anything considered an investment or necessity, such as a car, to be specific. The question is do I need some type of licensing for this?
Gimme some feedback, please.
Did I also mention the 11% down payments? Oops. Further, lot rent is also applied seperately.
[ Edited by jugg2000 on Date 11/10/2004 ]
Ok, and yes, this is the formula for lots of sales businesses.
Used cars, etc. have been bought and sold this way for generations, and you can do it too.
I think I'd advise you to just start, and buy ONE MH, not 8, and then sell that one...then repeat and repeat.
And buy a MH in a MHP, and one that does NOT have to be moved...no movers when you're starting, as that's a whole 'nother deal for which a newbie is not prepared.
>Four years with a net worth doubled...
Any investment at a simple 8.5% will double in a little over 8 years.
5000 dollars for good condition mhs? I have never seen a mh in good condition for 5k, maybe were you live is different. plus I wouldnt count on that 375 a month from people who can only afford a 5k mh that needs to be financed by you. your plan looks awesome on paper....on paper. I would like to hear back from you when you have actually done it, good luck.
I buy mobile homes every day of the week for 5k, place them on 2-acre lots and owner finance for $19,900 with $2,000 down at 12 3/4% interest for 10 years.
Mobile home deals are all over the market especially the repos and lenders are letting them go cheep.
The mobile home market at this point and time is simply a buyers market.
You need to read Lonnie Scruggs "Deals on Wheels", if you haven't already. You can usually find a copy on ebay.
so you put them on 2 acre lots and sell for 20k? and you make money? we must be from very different places because where I am from it would cost 5-10k just to move the mobile, then if you put it on a lot there would be all kinds of developmental costs, sewer or septic, clearing the land, water hook up etc etc. all of those costs are easily over 20k. whats your secret? oops wait, I just saw where you are from. I have heard of good deals and a big market for mobile homes in your part of the world. but up in my part of the world mobile homes are not 5k and they are not everywhere. dont get me wrong, there are mobiles and mhs, but not even close to the amount in your neck of the woods. higher cost of living up here = not as many poorly made mobiles= not that many mobile repos. good to see you all are doing so well with what you have, work it. [ Edited by dlitedan on Date 11/13/2004 ]
Quote:
On 2004-11-13 01:17, dlitedan wrote:
so you put them on 2 acre lots and sell for 20k? and you make money? we must be from very different places because where I am from it would cost 5-10k just to move the mobile, then if you put it on a lot there would be all kinds of developmental costs, sewer or septic, clearing the land, water hook up etc etc. all of those costs are easily over 20k. whats your secret? oops wait, I just saw where you are from. I have heard of good deals and a big market for mobile homes in your part of the world. but up in my part of the world mobile homes are not 5k and they are not everywhere. dont get me wrong, there are mobiles and mhs, but not even close to the amount in your neck of the woods. higher cost of living up here = not as many poorly made mobiles= not that many mobile repos. good to see you all are doing so well with what you have, work it.
<font size=-1>[ Edited by dlitedan on Date 11/13/2004 ]</font>
Well I have never purchased a manufactured home in Silverdale, WA, but I have purchased them in California, Nevada, Missouri, Iowa, Illinois, and Michigan and continue to do so with great success and all under $5,000 even in Chicago Illinois.
You are correct $10,000 to move a mobile home, looks like Silverdale is the only city in the nation that charges such an amount. Wow! if you just move to Bremerton it will only cost you $2,800 to move a
manufactured home anywhere in the state but Silverdale of course.
I am so sorry you can't find any property where the development has been completed in Silverdale but there is good news on the horizon, because Bremerton does have developed land to place a manufactured home on.
We are just a little slow in Missouri about investing as compared to folks in Silverdale we still use negotiation in the back woods but we always brush our tooth and put on our Sunday best before we jump in our horse and buggy to purchase a manufactured home. I sure do hope some day we can all get up to the level of folks in Silverdale so that us country folks can pay $10,000 to move a manufactured home.
We still use no money down purchases, trust purchases, short sales and the list goes on in the back woods of Missouri, but I am sure we will get to the level of folks in Silverdale and start paying retail.
But for now we will just have to continue paying wholesale vs retail till us folks in the country learn the Silverdale method of investing.
Shoot son we just learned how to get pluming in our part of the country.
Looks like we can surely learn from your part of the country along with the rest of the country as or northern built homes are poorly built but please do not tell the folks this in Canada, Michigan and Alaska about our northern built homes we kind of tell them that northern built homes are built good. We don't want them to think any different.
Well think you son, I will let grandma know about this as well and yes she is my sister too.
I think we have a new investing method coming out of Silverdale "How to loose your shirt in 90 days".
Just a good old boy from the back woods of Missouri.
[addsig]
This is a priceless. One of the best responses I've ever seen on here.
Who needs all those bristles on a toothbrush when you only have one tooth?
He's right, John
I wuz a talkin wit a mobeel home lendr de otter dey that had to 4close on a $20k note and that dey could only git $1500 dullars fer it at de auction. Dey said that if'n it wuz up in Silverdel an not down here in Redneckville that dey could've gotten $50K dullars fer it, but us poor hick folk don't know dat u spposed to pay big bucks for dem quality built mobeels, at least the few good built ones that we have down 'ere.
Keep straight over there, John,
Roger
Johnmichael, that was very funny, I enjoyed it. I went to college in virginia and so I have actually met people that are really like that. I am really sorry though that you were so offended by my comments. I didnt mean it in the way you responded, but you obviously have some real self-Image issues or you would not have gotten so defensive. all I was saying is that there are different areas and different markets for those areas. you bought in california? I can gurantee it wasnt in the LA area or san fran or sand diego. probably out in barstow or some dessert area. because there is not a good market for mobiles in those areas, it doesnt make those areas any better, its just a fact if there isnt a high demand or need for something, then you wont do well selling it. sell any ice to eskimos lately? thought so.honestly, If selling and living in porta pottys was a good money maker I would do it, so please dont be so mad at me for thinking I was insulting your way of life. you might want to take some of your profits with mobiles and use it for some clinical help. might be time to get in touch with little john michael and tell him hes good enough, smart enough, and people really like him. oh and as far as bremerton goes, send me the name of the person who moves mobiles for that much
Oh boy I just keep reading parts of your response I missed and just have to reply. there are developed lots in bremerton to put mhs on? listen, dont take this the wrong way, but you are lying. Silverdale borders bremerton and I have lived there most my life. I also have put stick built homes on lots and sold them for a good profit. I currently am in the market for another lot and there are NONE that are fully developed( unless in a mh park and they sure arent 2 acres). and if they are in the city limits there are some many ccrs that prohibit cheap mobiles (or any mobiles for that matter) to be put there. you would have to go farther out to find lots in bremerton that you can put mhs on. and if you go farther out then the property becomes even more undeveloped. they need wells, septics, clearing, and even in some cases, power. I dont mind you lying about where you live and making claims that are probably not true, because I am not going to fly to the backwoods of missouri just to see if your telling the truth. but please dont come into my city and make claims that are out right lies. stick with what you know trailor trash. and tell your wife, I meen cousin, I said hello.
Dlitedan
Some of the best and cheapest MH deals I"ve seen are in Kitsap County (Dan's home, folks), so if you'll just get out and start getting acquainted with the MHPs in your area you'll find lots of cheapies that are OK and livable just as-is.
A good friend of mine in Bremerton has probably done 100 or so Lonnie deals in Bremerton, KC area, and is still doing them hot and heavy there.
The first one I did was about a mile from KC line, in Pierce County MHP and I bought for $3000 cash and sold a couple of months later for $1000 down and note for $6500 @ 12%...and I"m still doing them for these same numbers, except now I know I can do them for less upfront cost.
Quote:
On 2004-11-13 16:18, dlitedan wrote:
I dont mind you lying about where you live and making claims that are probably not true.
Well, Well, Well ..... Seems you make judgments without researching the facts. I indeed can confirm the deals John Michael has completed. I have some pretty little bobbles to prove it :-D
Quote:
On 2004-11-13 16:18, dlitedan wrote:
because I am not going to fly to the backwoods of missouri just to see if your telling the truth.
Thank Goodness, I am afraid it would be to tough for you here in the backwoods... might damage your delicate skin. You just let us hicks make deals our way. I prefer to stay backwards paying wholesale instead of retail!
Quote:
On 2004-11-13 16:18, dlitedan wrote:
but please dont come into my city and make claims that are out right lies.
Perhaps if you got out in the neighborhood a bit you could convince other investors to teach you to pull that foot out of your mouth.
Quote:
On 2004-11-13 16:18, dlitedan wrote:
stick with what you know trailor trash.
NOW I am offended. You obviously are one of THOSE people that look down on others. With that statement alone, you show your ignorance !!!!! Does that foot taste good in your mouth?
Let me share with you. There are million dollar MH that people wait for years on a list to get in CA !
A couple may start out in a mobile home on 2 acres because it is theirs... and that is what is important to them. John is helping the family reach a starting goal. Perhaps they work in the factory for $6.00 an hr and work overtime like crazy, just so they can make the payments. Mama is home schooling the kids so they have the education that the family feels is right.
They then relax with their family, in the country, riding dirt bikes and sledding down the hill in the winter. Family and quality time in their own place mean something to some people. John can help them reach that goal, make some money, and we all walk away happy.
Stop looking down your nose and think about the family you could help. Then count the $ in your pocket!
Quote:
On 2004-11-13 16:18, dlitedan wrote:
and tell your wife, I meen cousin, I said hello.
Please get it correct... John's grandma is also his sister. His wife is his 3rd sister. jeeshhh.. Can't you follow the family tree?
Now, let me introduce myself: I am John's wife ! Lest you think that I only ride on John's coat tails.... I make my own deals. I was taught by the master JOHN MICHAEL.
Just bought for NO money down, a rehab property. I then sold it to another investor within 24 hrs. Pocketing a tiny check for $7000 ... I bet I can afford to have runnin water in the house now ! Maybe I can have the outhouse moved indoors!
Alesia
-This is Funny, I wonder how much will be left after The Man edits it.
I am seeing success in these "mh" and "mhp" business, but a simple man in Sac, Ca has no idea what is going on.
Can i buy a home for 3000?
or this that even the **Please See My Profile** houses in Sacramento go for 250,000? I mean I pay 950 for rent in a 900 sq ft house in "THE GHETTO"
If this could be explained here or on another post, it whould be welcomed.
An open mind makes money, and you need it it on these forums. I can verify those #s for you, John.
mojojojo_1
In your area sales are just a little nuts.
You can get some great deals in your area but you will have to work a little harder. The key to mobile home investing and placing on lots or developing land with mobile homes is to try and work in a least restrictive county.
Let me give you an example of what I am talking about in my home county it would take an act of congress to develop a property and place a mobile home on the lot because of the restrictive nature of the county and city, but just one hour away in another county I purchased a 60 acre plot of land on a lease option to purchase and the owner gave me all timber rights as well, I sold off the timber and received enough to have the property subdivided, cut my roads in and run electricity. Property was parceled off in 2acre lots and I purchase mobile homes from a wholesaler out of Texas in lots of 5 at a time, and the wholesaler delivers them with set up and no out of pocket money on my end. Upon the sale of the subject property and mobile home he receives his part. All mobiles come in fully repaired and under $5,000. I do owner finance on all the deals with low down and easy qualify. Why would the wholesaler do this I give him a lien on the property for $25,000 and he titles all homes to me. In the purchase agreement the homeowners must cut in their own driveway, install septic, well and electrical lines.
In this process by the owner cutting in their own driveway, install septic, well and electrical lines they cause my lot values to jump in value with no out of pocket from me but the purchase of the land.
Now let's take it to a level of my last project in California in LA County. I purchased a mobile home park with 28 units of mobile homes with spaces and 18 spaces with no trailers on an owner finance with no money down. Now do understand this is LA County and the 5k mobile homes are a little hard to come by but I have purchased several in LA County and local counties.
This owner finance was for $2,200,000 this was one of the most scariest deals I have ever done and the payments made me kind of nervous $12,300 a month. All spaces were rented and all mobile homes with spaces where rented
My space rents produced 498 each = 8,964 and the mobile homes with spaces produced 793 each = 22,204
My gross cash flow was 31,168 less my payment of 12,300 and the park operating expenses of 16,978
Netted only 1,890 per month after it was all said and done. Not a big money maker but a lot of pains.
I ran an add in Germany as there are many who love to invest in large property complexes and commercial property when it was all said and done and in 8months time I sold the property netting the following:
$72,897 from the sale
$15,120 from the rents
For a total of $88,017
The key to success in this area is to simply know your market area, the value of what you plan to sell and above all to ride along the cliff of life. I call this the danger zone.
None of these deals cost me a dime but did take a lot of time, investigation and creative thinking.
Learn all you can about the business! Make deals that provide a return as fast as possible! An invest with no fear!
I love creative investing and get 100's of no's till I get a yes!
The process is simple, the California deal cost me over 900 hours in time and I did no other deals in the process as this was a major project but the hourly wage was great.
Most tell me it is impossible to do deals like this and I agree with them! It is impossible if you believe it is!
THAT one would keep me up nites. I like the german angle tho. How would one go about that? i.e. what method and avenue?
wow, sounds great, especially with no out of cost. But don't you carry A LOT of risks with all the payments? Does your credit and income come into play, or just your record. and how easy is it to do and sell notes "owner financed".
Do mobile homes work best where there is mobile homes? Would you think underdeveloped land in mendocino county do the same with owner fix septic and so on.
What type of people/cleints are you advertise to underdeveloped land. thanks
[addsig]
thanks to all for the verbal beating, I rather enjoyed it. The angle I am coming from is this, I get tired of people on this website telling every and anybody that they can do any type of rei anywhere. Is rei simple and anybody with a pulse can do it? No. is it easier than some might think ,Yes. they really should start a website for those that were told by gurus and talkers that they could invest in anything anywhere and lost all there money. I know you will probably say that it was something they did wrong and maybe it was, but there are lots of people who have believed the hype and gotten burned in rei. So when I start hearing about mobiles bought for 5k in a area I have grown up in, I get a little suspicious, ok I call them liars..ha ha. anyways, I will research like crazy, maybe there is something I am missing, and if there is then you can have a big "Im sorry you were right" post. now to address the I look down on mobile home people comments here is one for you. I met my wife in highscool and dated for 6 years before getting married. the whole time we dated she lived in a mobile home park with her parents. I never cared. she spent 11 years living in a mobile home and she graduated with the highest honors from a division one university while recieving a full ride scholarship for basketball. she is smarter and prettier than I will ever be, and she lived in a mobile home. so I am pretty sure I dont look down on people who live or invest in www.mobiles.thanks again.
Having participated in a few "Flaming Threads" on discussion boards over the years the one thing everyone must remember. Defend your position from a business stand point. Never make it personal.
Now you really don't want me to explain the difference between keeping it business and not getting personal, because if I have to then anyone who does not understand will not be posting on this board.
Let's remember this in the future keep it business.
John $Cash$ Locke
[addsig]
Quote:
On 2004-11-12 23:18, dlitedan wrote:
5000 dollars for good condition mhs? I have never seen a mh in good condition for 5k, maybe were you live is different. plus I wouldnt count on that 375 a month from people who can only afford a 5k mh that needs to be financed by you. your plan looks awesome on paper....on paper. I would like to hear back from you when you have actually done it, good luck.
Actually, Newport News is a hot bed right now. I ran a ghost ad in the trading post to test the waters and found Atlantis, my friend.
There are so many people renting, it is barely funny... renting mobile homes! Why on this green Earth would a person pass up an opportunity to own... anything at that? If I were to create 5-year notes, the buyers price range would automatically be met even if they recycle cans for a living. The only cramp in my style I foresee is lot owners and lot rent. Will I be liable for lot rent for the life of the loans? Probably; then again, probably not.
Let's see... on a 5-year note:
$9000.00 per mobile
$182.49 per mo. for 5 years
w/ 8% interest on each
This will earn me an extra $2000.00 on each home. This deal alone along with lot rent is cheaper than the going rent rate right now in my area. Believe me, MHs are selling everyday in NN, VA.
You have spoken with out investigating. I purchase Mobile Homes for five thousand or less here in the Tacoma - Bremerton area. Just last week I was looking at one for $2500 an older double wide. There are all kinds of deals out there, if you just look. I rent them out for $600- $800 mo. in a small park.
Robert
Quote:
On 2004-11-16 12:56, roberth wrote:
You have spoken with out investigating. I purchase Mobile Homes for five thousand or less here in the Tacoma - Bremerton area. Just last week I was looking at one for $2500 an older double wide. There are all kinds of deals out there, if you just look. I rent them out for $600- $800 mo. in a small park.
Robert
Come on, robert... get on the subject guy. Focus man.
This side bar conversation about Bremerton is off the hinges and broken down. I need to focus on improving my ideas here.
CREs SHARE, WITH ME, YOUR CREATIVITY ON THE MATTER... THANX
Quote:
On 2004-11-14 10:35, rvrnorth wrote:
THAT one would keep me up nites. I like the german angle tho. How would one go about that? i.e. what method and avenue?
When I deal in larger investments (commercial type property), I have found that foreign investors are a great source of salability.
In simplicity, I get the subject investment under contract normally for 90 days or so, dependant on market time of course and I normally make the purchase subject to inspection and partners approval.
You should also learn all you can about a countries customs before jumping into this arena as it simply adds to your negating ability.
I also make sure the contract is and or assigns.
I then run an add in a foreign country in a major newspaper. I have also found the wall street journal to me a great place to advertise as well.
I then sell the contract not necessarily the property. I prefer to deal with a large equity position type property in this case and charge based upon the equity.
This is truly the basic process and I would highly suggest learning all you can on commercial property investing as the process is a great deal more involved than investing in residential property.
[addsig]
Quote:
On 2004-11-14 18:16, mojojojo_1 wrote:
wow, sounds great, especially with no out of cost. But don't you carry A LOT of risks with all the payments? Does your credit and income come into play, or just your record. and how easy is it to do and sell notes "owner financed".
Do mobile homes work best where there is mobile homes? Would you think underdeveloped land in mendocino county do the same with owner fix septic and so on.
What type of people/cleints are you advertise to underdeveloped land. thanks
Yes there are always at greater risk when dealing with larger investments but on the other side the profits are normally much larger.
In this case credit and income did not play a part in the LA purchase as the owner was motivated and the owner was the one doing the financing.
Selling owner finance notes are not difficult, just time consuming! Go to www.google.com and do a search on selling mortgage notes or mortgage note buying as well as taking a look at TCI's note investing/buying forum.
When investing in mobile homes it is best to deal in a strong market. Let me give you an example of an area that has been vary successful. The area is located in Missouri in Howell county namely the town of west plains. In this community the county is considered a least restrictive county (outside of city limits) and the majority of its population lives in mobile homes. Even in their local paper called the Daily Quill when an announcement of engagement or wedding a couple will usually list a goal to get into a double wide and this simply let's one know how strong the market is.
The art for me in mobile home investing has been in buying vary low, selling high and doing the financing for by customer by carrying the note.
I have no ideal of how successful your county will be with this form of investing. I would suggest you research the marketability of mobile home in the county you wish to invest in. Determine your county rules and regulations as to mobile homes on land so that you will comply with their rules and regulations.
As for what type of people or clients I advertise to are poor, middle class and wealthy alike.
[addsig]
Thanks, John. Got my hands full, but makes for great reading!
Thanks for reading some of what I have written. I didn't know any of my stuff was still around. A couple of points. Yes you can find deals on MH's. Mostly relative to the area, I would have to imagine, but in most rural areas, it can be done easily. Will you find them advertised? Probably not at the prices we are talking about. But, in any market where you have a surplus of product and a shortage of $$$ there are deals to be had. In other words, more folks that live in manufatctured housing, have credit issues. Lenders are having problems selling these after default. You can make a flat fortune. To the original poster. Think of this. You need to raise your prices. $5,000.00 in it sell for $10,000.00 to $10,999.00 $1500 to $2,000.00 Down net investment of $3000.00- $3500.00 add 12% interest (industry standard) now recalculate. Much better
Now to the fella that thought 8.5% was a good rate. 60 k at 8.5% after 2 years compounded daily = $71,117.00
60k invested in wobbly boxes = 131,988.00 sold inventory less $18,000.00 downpayment money = $113988.00 @12% = $144,901 + $18,000.00 down payment money= $162901.00 - $60,000.00 initial investment = $102901.00 after 2 years or Oh well, you do the math oops called my banker friend and it's about 64.77308 percent on 60k so actually it would be more on the 42k actually invested (60k-18k) Whew am I rambling or what.
Why I actually replied was because you said could this be done on a vehicle and the answer is a resounding yes. I currently have 130 cars on my program. Yes it take a dealers license information which is available from your states bureau of motor vehicles (Who'd a thunk?) BTW, anyone with a chunk of change and a conservative mind, I am offering 10% annual return. OOPs I guess that's an ad. Anyway, the reason I haven't been here much is that I haven't had the time. it takes a lot of time to manage that many receivables. BTW John Locke, what software do you use for your lot? Also what accounting software? Anyhow, Good Luck and God bless to you all, evnn you republicans.
Shawn(OH)