Would you rather work a job every day in order to get paid or have someone else work a job and pay you? The answer should be a "no-brainer," but I'm surprised at the number of people I meet that can't understand the logic behind that question and just keep on working a job they don't like, that pays just enough to get by.
Many of us still believe what we were taught in school--get an education, so we can get a good job, so we can live happily ever after and "retire" when we get old. And we certainly want a job with good benefits and a retirement plan and with everything "guaranteed." Sound familiar? If so, then it's time you faced reality and the real world.
Do a few hours work and get paid for three years
Just for now, let's forget what our teacher taught us and put our minds in a different gear. Instead of working that job, suppose you could do a few hours of work and obligate someone to send you $200 each month for three years. How could we do a little work one time and get paid for a long time?
We could do that by creating notes on something that people want to buy but don't have the money to buy. This could be done with a number of things--real estate, houses, apartments, automobiles, appliances, cows, cemetery lots, and a zillion other things.
My favorite vehicle for creating notes is used mobile homes. But if you don't like mobile homes, learn this concept and use whatever vehicle you do like.
This is the way I do it with mobile homes, and I haven't found anything better in all the years I've been investing. Mobile homes are the fasted growing type of housing in the country. There are now over eight million mobile homes in existence. Mobile homes are the only affordable housing left for many people.
But the new ones are too expensive for many who want to buy. That's why there is such a huge demand for inexpensive, used mobile homes with seller financing. If you want to create a "money machine" and make money while you sleep, learn this business.
I look for mobile homes that I can buy for $2,000 to $3,000 and can sell for $4,000 to $6,000. These homes are ten to twenty years old, single wide, already set up in a park and can stay on the lot. I simply buy the home for a cash wholesale price, resell it at a retail price, and offer to finance the sale with a reasonable down payment.
My selling price is at least double what I have in the home. My average monthly payment is $200, and the average term of the note is 36 months. Here's one of my recent deals I'll share with you.
A recent deal
A local bank had acquired a "non-performing asset" which was a mobile home. (I thought anything that didn't perform was a liability, not an asset.) My cost for the home, one month rent for the lot, and advertising was $2,850. The home was sold in less than a month for $7,500.
My buyer paid $1,000 down and signed a note payable at $218.23 per month for 36 months. So, by doing a little work one time, I have obligated someone to send me a check each month for three years. All I have to do now is wait for the mail carrier to bring the check.
Now here's the part I want to emphasize: Once my buyer pays the down payment and signs a note, my work is done. My buyer is the one who has to go work a job to make enough money to send me a check each month. And he gets to do it for three years.
I can be traveling around the world or gone fishing, and the check is still due. If I had a job, I would have to go to work every day in order to get paid.
Suppose you could average just one deal a month like this for two to three years. Just think what kind of monthly income you would have coming in. Regardless of what kind of job you have now or how well you like that job, learn how to make money while you sleep. This is a good example of how to do that by creating notes. When you have 25 to 50 people sending you $200 every month, you won't need a "job."
About the Author:
Lonnie Scruggs owned, rented, and managed his own rental properties for 24 years. He became a burned-out landlord, sold all his rental properties and started investing in discounted notes. He soon developed his own specialty in used mobile home notes, with little competition and earning high yields. Lonnie tells all and shares his inside secrets in his books and home study course: