How to Create a Mobile Home Money Machine by Lonnie Scruggs

[CashFlowDepot]

My ad read "Mobile Home For Sale--Will Finance" and the phone was ringing
off the hook. Some of the callers didn't even bother to ask what the selling
price was, or the interest rate. Most of them were interested in only two things:
"How much down and how much a month"?

These are the type of people that will make you rich if you understand notes
and seller financing. The financing alone will make you rich. But if you under-
stand how to buy a product for wholesale, then sell that product retail and
finance it, you will get rich much faster and easier. I've been doing this
very thing with mobile homes for 19 years.

Making A Fortune With No Competition

According to the Bureau of Census Report, there are over 9 million mobile homes
in this country. And because the used mobile home business is so unrecognized
by most entrepreneurs and investors, the ones who do understand the business
are making a fortune with little or no competition.

When you can buy a used mobile home for $3,000, sell it for $6,000 - $9,000,
finance it and have the buyer send you a check for 2-3 three years, my calculator
says that's GOOD ENOUGH. Mobile homes are the only affordable housing left for
many people in this country, and the new homes are priced way out of the range
of many who want to buy. High prices and the lack of financing is creating a
tremendous demand for used mobile homes with seller financing. I've discovered
the world is full of people who want to buy things but, since many of them don't
have any financial discipline, the only way they can buy what they want is to find
someone that will offer financing. And this is especially true for housing. Some
people will never save $1,000. But if you set them up on a monthly payment plan,
they can make you a payment for life. Let me illustrate by sharing a case history
on an actual deal I did.


A 96% Yield

This couple owned and lived in a 16 year old, 14 x 64 single-wide mobile home
located in a local park. They were moving out of the area and now needed to sell
their home. After being assured by the park manager that the home could stay
on the lot, I negotiated a purchase price of $3,350 for this home. I spent $132
for advertising, so I now had a total of $3,482 invested. The home sold in 17 days
for $7,900. The buyer paid $790 down and signed a note for $7,110 with 12.75%
interest, payable at $228.39 for 38 months. So I now have a note for $7,110 and I
have $2,692 left in that note. Is my calculator lying to me, or is that a 96% yield!

I received 38 payments ($8,678) plus the $790 down payment (for a grand total
of $9,468). Subtracting my original investment of $3,482 leaves a profit of $5,986.
This all took place within 38 months. And all I had to do was wait for the mail
carrier to bring the checks.

Do A Little Work One Time And Get Paid For 38 Months

Once I sold the home, my work was done. It was then time for the buyer to go to
work to earn money to send me a check. And he gets to do it for 38 months while
I can go fishing. An excellent example of how to make your money work for you,
instead of you working for your money. If you will learn and apply this concept, you
won't ever feel the same about working a "job" again.

This is just one of many notes I've been able to create over the past 19 years with
used mobile homes. There was once a time when I could get excited about buying a
real estate note paying 18%. But no more. My typical "Lonnie Deal" starts at 50%.
And this is real world stuff, not fiction or pipe dreams. There might be something
better, but so far I haven't found it.

Mobile homes are "Money Machines." If you try it, I betcha you will like it.

You can see Lonnie in person and learn more of his creative mobile home money
machine ideas at thehttp://clicks.aweber.com/y/ct/?l=Jisk_&m=1h8clEjkwtyrFX&b=pUyv8qm7KvkzdZ.blPHU8gULTIMATE Mobile Home Bootcamp in Arlington Texas September 11 - 13

Lonnie will be joined by Bobby Redwine, Doug Ottersberg and we just added Steve Flores to the expert line up. See Ultimate Mobile Home Bootcamp for more details.

Happy Investing,
Lonnie Scruggs

P.S. Artlington Texas is half way between Dallas and Fort Worth and just 10-15 minutes south of the DFW International airport. The seminar is at the Hilton who will provide free shuttle service to and from the airport & has multiple restaurants across the street

 

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[Dhappy]

Yep, I love my mobiles. The best kept secret in RE. I guess its not really a secret. Know matter how many times people talk about how great mobiles are or have events on mobiles it never increases my competition. I think most people still think mobiles are beneath them. They are such cashcows, if only people could see past there negative views . To this day people still make fun of me and my mobiles. I have the last laugh as they drive off on there way to the 9-5 grind, while I,m heading to the lake to go fishing.

 

[CashFlowDepot]

Had Your FINANCIAL Check-up Lately?

Seems like there’s always somebody telling us we should get a physical check-up every year or so, but how about a financial check-up? Ever had anybody call wanting to schedule you for a financial check-upâ€. If not, and you haven’t had your financial check-up lately, then it’s time for one. Here’s a simple little test to see if you pass, or if you need a prescription for what ails you. Let’s suppose you finish school, play around for a couple of years, and at age 20, you settle down and get a “real jobâ€. Using the example below, plug in your numbers in place of the ones in the example. First, you need to figure what your present net worth is.(And no cheating, or puffing).

Example:
Present net worth $100,000.
Present age 40
Subtract 20 (age you started working) 20
Answer 20

Divide the answer (20) into your present net worth ($100,000), and we see in our example that you have accumulated an average of $5,000 for each year that you’ve worked. Now, how do your figures rate? Are you satisfied with your answer? If not, what are you doing about it? Maybe now is a good time to ask yourself this question. “If I do the same things this year ,as I did last year, where will I be next year� If you don’t like the answer, then it’s time to make plans to improve your score. So what can you do to improve your financial health? Let’s go over a couple of ideas that have worked very well for me.

Regardless what kind of job you have, how well you like your job, and how much that job pays, you need to have something producing income for you that doesn’t require you to be there. You should have cash flow coming in if you’re sleeping, fishing, on vacation, or too sick to work. If your only source of income is from your next pay-check, and you lose your job, how much cash flow will you have coming in? If you lost your job tomorrow, how long could you support your family on what you have now? These are serious questions you should ask yourself, and if you don’t like the answers, start making plans now for your financial future. So, what to do? “Hire†some “employees†to work for you. And what’s the best kind of employees you can have? DOLLARS!!!

I consider every dollar I invest another employee working for me. With proper management, each employee works 24 hours a day, 7 days a week. They never call in sick, they never go on strike and they never complain about working conditions. And my employees never have to worry about being “downsized†either. But if I get lazy, or don’t do a good job of managing my employees, my income will decrease, and maybe even stop. So you need to develop good financial discipline, and good management skills in order to get the most from your “employeesâ€. Let me share a couple of my investments in order to give you a better understanding of what I mean.

Case #1. I paid $17,000 for a mobile home lot, and the mobile home. (Just the lots alone in this park sell for $17,000-$20,000). I expect to sell the mobile home for $6,000. Most likely the mobile home will be sold on terms with monthly payments for 2-3 years. So even though my mobile home employees are “temporary employeesâ€, they will produce excellent cash flow. If I practice good financial discipline, I’ll use the cash flow they produce and find them another job before their temporary job runs out.

If I sell the mobile home for $6,000, that reduces the cost of the lot to $11,000. The lot will rent for $245.00 monthly, and net $210.00. (And the rent will go up every year with very little, if any, additional cost, and without me having to be there) These 11,000 employees will be long term, cash producing workers. And if I’m a good manager, they won’t ever get a day off. What a slave driver, huh? If I do nothing but bank the monthly cash flow, these 11,000 employees will provide a good yearly shot for my financial health. (Incidentally, we now have 25 lots just like this one, producing cash flow every month. And we don’t have to show up at a job to get paid. Our employees are doing the work, and we get the money. (Use this concept and do the same thing for yourself).

Case #2. Just bought another mobile home for $4,000, sold it for $8,900, $1,000 down, and a note for $7,900, payable $306.11 monthly for 30 months. So I have another 3,000 “employees†working for my financial health. (Just got the first check from this deal, and it made me feel warm all over. What a great bunch of employees).

This was another referral from the park manager. There was no sale sign posted, or any indication the home was for sale. If the manager hadn’t called, I would probably never have known this home was for sale. I can’t tell you how many deals this one manager has thrown my way over the years. And, I can’t stress too much how important it is to build a good relationship with the park managers. You should think of the park manager as the goose that delivers the golden eggs.

Case #3. Different park, same scenario. Again, no sale signs posted and no way of knowing the home was for sale. The park manager not only referred this deal to me, but practically negotiated the $2,500 purchase price with the seller. And then, convinced the seller to credit the security deposit he had on the lot, to me. The end result was that I paid $2,500 for the home, and got the $250 security deposit transferred to me, making my total purchase price $2,250. The home was sold in 10 days for $6,750, $500 down and a note payable $166.90 for 48 months. So I now have another 1,750 “employees†working for my financial health.

These three deals will produce somewhere around $1,000 per month, and I don’t even have to show up. Granted, the mobile home notes will pay out in a short time, but I’ll have plenty of time before they pay out to create more deals and put more “employees†to work. If I worked a “job†how many hours would I have to work to earn $1,000. Even if it was a job I liked, that job would be taking valuable time that I could be spending to create more cash producing deals like I’ve just described. And also, with a job, I might not be able to pass my yearly financial health exam.

I’ll cover one more idea for you to consider which will greatly improve your financial position, especially when you reach retirement age. And this has to do with the power of compounding. If you don’t fully understand the awesome effect of compounding, let me urge you to make every effort to learn and use that power. If you do, you will retire a rich person. If not, you have an excellent chance of winding up like the majority of the people that don’t understand and use this power of compounding...POOR.

Note: My new book, Taking The Mystery out Of Money, has a chapter on the power of compounding of interest. And also a chapter on how to use a financial calculator. Let’s do an example of a self directed IRA. Suppose you open an IRA at age 20, and you put $2,000 into your IRA each year for the next 10 years. Let’s also suppose that during this 10 years, your IRA earns 10% (I know you can learn to do much better, but let’s see what just 10% will do). After 10 years, your IRA will be worth $31,874,and you will be 30 years old. If you never put another dime in that IRA and just left it alone for the next 30 years ,and it averaged earning 10% each year, you would have a nest egg of $556,182 at age 60. So, to make it simple, if you invest $31,874 today, and it earns 10% over the next 30 years, that $31,874 has compounded to over a HALF MILLION BUCKS. Now, look at what it will be if you can make that same $31,874 earn 12%, just 2% more. At the end of 30 years, your $31,874 will compound to $954,942, almost double. At 15%, it will be $2,110,235. And if it’s the new Roth IRA, you won’t owe any taxes when you start spending your money when you retire. (Roth IRA contributions are made with after tax dollars).

Regardless of how you earn your money, you should invest at least $2,000 per year in some type of retirement fund and forget it’s there. That’s only $40 each week, so don’t say you can’t afford it. Face it, if you can’t afford to invest $40 per week now when you’re healthy and working, in order to be rich when you retire, then you had better do all the things you want to do before you retire. You won’t have any money to do anything after you retire. If you develop and practice good habits, have a good investment plan, and good financial discipline during your working years, you will never have to worry about failing your financial health exam. And the sooner you start, the better off you will be when you retire. Every month you wait will cost you many future dollars. Find your niche and get started NOW! The world is full of poor people that waited.

Best wishes for a great financial future,
Lonnie Scruggs

P.S. LEARN HOW TO MAKE MONEY WITH MOBILE HOMES AT LONNIE'S SEMINAR www.UltimateMobileHomeBootcamp.com September 11 - 13 in Arlington Texas

 

[rocksolid]

OK, so this is interesting to me, investing in mobile homes. I live in NY, close to the city. I have done search to find out more about how to start doing this and of course I found so many pages that my head almost exploded. Any suggestions on websites or reading material on how to start?

 

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[kwerner]

OK, so this is interesting to me, investing in mobile homes. I live in NY, close to the city. I have done search to find out more about how to start doing this and of course I found so many pages that my head almost exploded. Any suggestions on websites or reading material on how to start?

Very simple - If you're looking to start out buying and selling "Lonnie Deals" (buying mobile homes cheap and financing the sale of them) - all you need is two books:

1) Deals on Wheels by Lonnie Scruggs

and

2) Making Money With Mobile Homes by Lonnie Scruggs

Both are EXCELLENT reads.

Hope this helps...

 

[kwerner]

Oh, and I should add that you can own both books for $40 or less.
Truly a great investment in my opinion.