In January 2008, I purchased a 1996 mobile home for $5,500. It was a bank repo that needed interior work. I sold it “as is” within two weeks for $12,500 cash.
In February 2008, I purchased another 1997 mobile home for $6,500. Again, a bank repo that needed interior work. I sold this one “as is” within one week for $13,500 cash.
At the time I made these purchases I was unemployed. However, I knew there was an opportunity there; I knew I could purchase each mobile home at a bargain price; and I knew I could sell each one for a nice profit.
I had to decide: Do I want to take the risk or do I want to just play it safe. After all, I didn’t have a job–no income at all; I’d be in more debt; both mobile homes had to be moved; and it was dead of winter.
When I bought the mobile homes, I did not use my own money. I used a credit card instead. I simply went to the bank, took out a cash advance and then wired the money to the banks that owned them.
Paid in full. I was charged a 3% cash advance fee for each purchase (a total of $360). The transactions were fast. I sold each home before my credit card bills even arrived.
Some may ask, Why didn’t you use the profits from the first deal to buy the second one? I would rather risk the credit card companies’ funds and pay a small fee than risk my own money.
If you’re starting out in this business like me, you got to take risks. I did, and it paid off–twice!