19 Years old: First RE Deal done

[Cat Man Du]

bravo ................ For taking action!

let's put this in perspective:

Do you have the policy for the above? Doesn't matter what is in the note. Do you have the policy and it lists you as the one who receives the payoff?

yes, i am listed as the beneficiary and i have a copy. Common sense! GREAT - YOUR HEAD IS SCREWED ON RIGHT!

you are out-of-pocket $2,000 when all is said and done. How many of these deals can you do.......how many $2,000 do you have to invest?

i have about $30,000 pooled with friends right now for an apartment building i am going to be purchasing. WHO WILL QUALIFY FOR THE MTG.?

I am currently evaluating several properties on my campus. I know i could take their cash and make some good money by doing several more of these deals, but i am not planning on being in the mobile home business in the long run. AMEN!

read jscott's account ... Doing the same as you have. You will see that he has done lonnie deals......... No money out-of-pocket. He can do these 50 times a day.

In regular home investments ...... The investor pulls all of his money out so that he can do it ....over & over again.

refinance is one of my favorite words, my portfolio will never cease to expand exponentially! YOU'VE GOT IT!


let's hope that when you look back on this ...... It will be your worst deal!

 

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[SweetJones]

For those of you reading this who are scared to get out there and take a chance JUST DO IT! It was so worth it. I gained a lot of experience on this deal and I loved the feeling I got doing it, it just reassures the line of work I am going into (investment properties).

The worst that could have happened was I would have lost $3500 and gained experience.

This is exactly what I love to hear, and preach to my fellow young bucks out there. Just do it-- take action!! Great to see you hop on the fastlane and get some momentum going. Keep on taking those goals off your list 1 by 1. If only people realized the barrier to their dreams was execution.

 

[G_Alexander]

bravo ................ For taking action!

i have about $30,000 pooled with friends right now for an apartment building i am going to be purchasing. WHO WILL QUALIFY FOR THE MTG.?

This is where the creativity in financing will need to come into play. I am going to be talking to smaller banks and presenting them with a full business plan on a property with a good amount of instant equity, if I put together a convincing enough business plan then hopefully I can get the financing.

With credit tighter than a new inmates a$$ in prison on his first day blush::smxD::3some, I would say I probably won't get financing. I have a few very good options for co-signers though.

///G. Alexander///

 

[Brootal]

Is it possible to put a section 8 tenant into a MH and get your monthly payment from the government?

 

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[dbaker89]

Let me be the first to say CONGRATULATIONS!

I too bought the book from lonnie and was avidly trying to close a deal before I turned 20.. I didnt quite make it, but I'm only 1 month in!

This is the motivation I need. Just a little more capital.

 

[G_Alexander]

Let me be the first to say CONGRATULATIONS!

I too bought the book from lonnie and was avidly trying to close a deal before I turned 20.. I didnt quite make it, but I'm only 1 month in!

This is the motivation I need. Just a little more capital.

If you have any friends with a little cash lying around, go find yourself a buyer first and see how much they have to put down. If you can find a buyer with a $1000 to put down and you ask your friend for a $1000 for the deal you can have your cash easily. Just tell your friend you will pay him back in one day, get the cash from him, get the title, sign the note, and pay him back!

If your friend doesn't want to do it, tell him there is $50 coming his way for lending you the cash for a day :groove:

G. Alexander

 

[lightweight99]

I completely understand the concept of lonnie deals,but do you G Alexander recommend buying the lonnies deals book and disk with forms on it before making offers?

Thanx and congrats!

 

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[hatterasguy]

I'd buy his book if its cheap, but why spend money on the other stuff? What forms do you need to make offers? Have your attorney write up some forms or you can probably use boiler plate ones.

These deals are simple, this forum outlines whats involved in them. Jscott has info on his blog to.

Don't overthink these, just take a couple grand and go do one.

 

[lightweight99]

In the note there are strict guidelines, one of the ways the note can be considered in default is if the occupant fails to hold proper fire and extended insurance coverage in the amount owed of the lien. This protects me should anything happen to the home.

Property taxes were paid through this year when I purchased the home, and I also made it clear in the note that the buyer is responsible for all property taxes (which only come out to $140 a year anyways).

As stated above, it seems Alexander added in some important information in the documents. Didn't know if he had the forms on a disk as the site specifies or if he used his own attorney.

 

[G_Alexander]

I completely understand the concept of lonnie deals,but do you G Alexander recommend buying the lonnies deals book and disk with forms on it before making offers?

Thanx and congrats!

In the note there are strict guidelines, one of the ways the note can be considered in default is if the occupant fails to hold proper fire and extended insurance coverage in the amount owed of the lien. This protects me should anything happen to the home.

Property taxes were paid through this year when I purchased the home, and I also made it clear in the note that the buyer is responsible for all property taxes (which only come out to $140 a year anyways).

As stated above, it seems Alexander added in some important information in the documents. Didn't know if he had the forms on a disk as the site specifies or if he used his own attorney.

Hey Lightweight,

Yes, I would recommend buying Lonnie's eBook titled: Deals on Wheels

It will give you all the information you are seeking and the promissory notes, buyers agreements, and other forms are in the back for you to look at. They protect you well and if you see something in a note that might be left out I would recommend talking to your own lawyer to get the correct verbage/jargon added....but you won't need to do that.

The deals are very straightforward and the forms Lonnie provides will definitely get the deal done smoothly for you.

Just make sure you read everything and go over so you know what you are having your customers sign!

G. Alexander

 

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[Runum]

Hey Lightweight,

Yes, I would recommend buying Lonnie's eBook titled: Deals on Wheels

It will give you all the information you are seeking and the promissory notes, buyers agreements, and other forms are in the back for you to look at. They protect you well and if you see something in a note that might be left out I would recommend talking to your own lawyer to get the correct verbage/jargon added....but you won't need to do that.

The deals are very straightforward and the forms Lonnie provides will definitely get the deal done smoothly for you.

Just make sure you read everything and go over so you know what you are having your customers sign!

G. Alexander

I agree. I bought the ebooks and my brother and I are using them to make deals. It is a pretty good way to build cashflow. Good luck.:cheers:

 

[Chitown]

G,

Congratulations. That's fantastic news. Balls to the wall, my friend.

 

[Strategy]

hi do you know where I can purchase this e-book?

 

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[kwerner]

hi do you know where I can purchase this e-book?

Here.

 

[Rawr]

Wow, you will go far. Nice DETAIL write up. Speed!

 

[Strategy]

Hey there. Since seeing your post I have been looking deeply into getting this into action as it seems like a good opportunity. My question is there a way to do a deal without the money personally. I have a buyer trying to move cross state that has 15k cash and replied to one of my ads to build my list up to see if I had anything else available. I am going to be actively looking but without the money is there anything I could do such as work an agreement with the actual owner.

I know I've seen about loans from friends/family, and bank loans, etc. but what if I buy it then he backs out and no one else is interested?

 

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[BigEasy25]

I love these stories. How can you not be motivated after reading this. Congratulations on your first deal!

 

[J P D]

Not sure how the SAFE ACT will effect your operations in IA, but you might want to look into it. Word is that this piece of legislation will be the death of lonnie deals by requiring anyone holding note on a residential property to be a licensed MTG. lender.

Congrats btw.

 

[kwerner]

Not sure how the SAFE ACT will effect your operations in IA, but you might want to look into it. Word is that this piece of legislation will be the death of lonnie deals by requiring anyone holding note on a residential property to be a licensed MTG. lender.

Congrats btw.

I'm not quite sure this will affect lonnie deals that involve mobile homes set up in parks.

I haven't read the entire SAFE act, but from what I skimmed through it appears that it only affects residential MORTGAGE lenders - and most lonnie deals don't require a mortgage because they're not classified as real estate (unless they're on their own foundation).

 

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[delerben]

My first deal was done in my early 20s and it was small rehab project in Illinois. I wound up making $10,000 but the most important part was the lessons learned from that project. It really took off from there ... those were the days.

 

[Kontent]

I have nothing to really add except CONGRATULATIONS, that is so awesome!!! Good luck on replicating your success.. over, and over, and over, and over.

 

[Elvin90]

wow!


As a 19 year old interested in the real estate market i find this truly inspirational and motivational, its good to see guys my age taking action

I am going to keep doing my research and hopefully i will be posting my Success story soon!

 

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[cronical]

great work cant wait to hear how well your next deal goes !

 

[Excalibur]

Great thread. Any more updates on how things are going?

 

[G_Alexander]

Thanks for asking Excalibur. I had an amazing idea about how I could reduce my risk and streamline this operation.

I had a large buyers list built up because there is a huge demand for seller financing in my area since the banks and now the credit unions both no longer lend on mobile homes. The shitty economy and tight credit markets open up great opportunities for private lending on just about anything you can think of.

I figured I could take my buyers list to a local mobile home park owner (owns about 2000 lots) and work out a deal to help him get his homes/lots filled if he would take back notes payable on them. My fee would be the down payment for facilitating the contract (which is meager because the monthly lot rent would be $300 and payment would be around $200-300 for a total of about $500-600 a month. If a buyer put $500 down (which is typical), my fee would be that first $500. Then the owner is in the double money for the rest of the contract.

The owner of the park thought my price was a little too high and turned down a list that could potentially fill 20 of his empty lots.

I am going to negotiate with him one more time and give him my bear minimum per successful tenant transaction charge (roughly $350) which is VERY low in my opinion. Hopefully he will accept the win-win situation.
--------

Otherwise, with the credit markets so tight and the fact that I have about $3500 in liquidity again, I am avidly looking for another mobile home deal.

Hopefully I can post deal 2 updates for you all soon!

Thanks for the kind remarks.

G. Alexander

 

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[Rickson9]

Great thread! Thanks for sharing G!

 

[saigon]

Just signed up recently, congrats on the great deal. A year later, where do you stand in terms of deals, experience learned, etc.? Keep up the good work!

 

[G_Alexander]

Well, nice day today. My first customer sold his vehicle and decided to retire his mobile home loan with me.

He paid me a $1,270 lump sum. Never missed a payment in the last 2 and 1/2 years. Great tenant.



Customer #2 is still going strong.

Total earned from mobile homes since December, 2009: $4,073.74 + $5,537.34 (deal 2) = $9,611.08

Keep in mind, I spent about 10 hours total on these two deals combined. No management was involved. The checks just roll in every month while I work on finishing my BA in Finance and Entrepreneurship at school. The deals netted me just about $1,000/hr.

Just got approved for $500,000 financing for multi-family investment at age 22 using my own credit.

Good to be in the Fastlane :cheers:.

 

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[kwerner]

Awesome man, congrats!!
:cheers:

 

[Pete799p]

I was wondering if anybody with knowledge of Illinois might chime in. It seems that in illinois to sell a mobile home as a non owner occupant you need to posses a dealers license.

Congrats on your success I wish I had known about these when I was in college the area would have been perfect for these kinds of deals.