Four Mobile Home Deals In Three Months!

by Ed Fallon
Indianapolis, IN

I would just like to thank Lonnie Scruggs for the inspiring seminar that I went to several months ago. I met a lot of great people, and I am starting to see what a little bit of education and work can do for your lifestlye. Here are some of the mobile home deals I did in the last 3 months.

1. Purchased MH for $145 which equaled one month lot rent that they were behind. They had owned two manufactured homes in the same park and could not afford lot rents on both. I gave this home to my brother because he does refurbs, and he also has a truck that I might need to use on occasion.

2. Bought a nice MH on contract for $7400. 0 down, 74 payments of $100 plus a little interest. That same week I turned around and resold it on contract for $1000 down, $250 per month, 60 months, 0% interest. Profit = somewhere around $8000, monthly cash flow = $150mo. The great thing about this one is I did not lift a finger except to sign both contracts.

3. The following week I bought another MH on contract for $300 down (water bill) and 12 payments of $100. Total price about $1500. Sold it next week without doing anything to it for $15,000. $500 down, $200/mo payments, about 72 months. The next month they came to me and wanted me to buy out their original $1200 contract for about $300 (Christmas money). So now I own the home free and clear and my monthly cash flow is $200 per month for the next several years.

4. Bought another older MH for the lady's water bill (about $300). She just didn't want to pay for lot rent anymore because she had just bought a house. She wanted out bad and I knew it. The same day, the man across the street who had lived across the street for 10 years, bought the home from me. I sold it for $4200. $150 mo, for 28 mo. 0 % int. After 2 months my cash flow is $150 month for 26 more months.

On these four deals, Total Monthly Cash Flow = about $500. Cash Profit is $1500 (money down). Carried Notes total $25K.

Since I don't have a lot of cash, I buy on contract and resell for more on contract. So far its been working good, as long as I can make $100/mo. on each home then I'm happy. Instead of using $5000 to buy one home, I can use it on 4-5 MH's as down payments for my contracts.

Since I have very little money in these deals, if they default on the payments, I can take the house back and resell it again.

I have a couple other deals working in the bag, and I'll let everyone know how they go. Also, I will be more timely in posting them, so everyone has the benefit of learning. Thanks a million JP for this great web site and the ideas that are worth millions.