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4 Mobile Home Deals in 3 Months!

by Ed Fallon , Indianapolis, IN   

I would just like to thank Lonnie Scruggs for the inspiring seminar 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 lifestyle. Here are some of the mobile home deals I did in the last three months.

1. I purchased mobile home for $145, which equaled the 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. I bought a nice mobile home on contract for $7,400. 0 down, 74 payments of $100, plus a little interest. That same week, I turned around and resold it on contract for $1,000 down, $250 per month, 60 months, 0% interest. Profit = somewhere around $8,000, monthly cash flow = $150/month. The great thing about this one is I did not lift a finger except to sign both contracts.

3. The next week I bought another mobile home on contract for $300 down (water bill) and 12 payments of $100. Total price about $1,500. Sold it the next week without doing anything to it for $15,000, $500 down, $200/month payments, about 72 months. The next month they came to me and wanted me to buy out their original $1,200 contract for about $300 (Christmas money). So, now I own the mobile home free and clear and my monthly cash flow is $200 per month for the next several years.

4. Bought another older mobile home 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 who had lived across the street for 10 years, bought the home from me. I sold it for $4,200. $150/month for 28 mo. 0 % int. After the first two months, my cash flow is $150/month for 26 more months.

On these four deals: Total monthly cash flow = about $500. Cash profit is $1,500 (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/month on each home, then I'm happy. Instead of using $5,000 to buy one home, I can use it on four or five mobile homes 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.

Thanks a million, JP, for this great website and the ideas that are worth millions.

 
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