Close

How I Purchased 6 Mobile Homes in Less Than a Week

by Frank Prince, Charlotte, NC   

My name is Frank, and I am from Charlotte, NC. I just had to drop you all a note and tell you about the events of the last seven days in my life. First let me say I have no real estate investing experience, whatsoever.

I came across Creative Real Estate Online by accident in 1997. I was intrigued by all of the Success Stories I read. I decided to try the mobile home deal due to the fact that, as a rookie, I would have limited financial risk.

Like many of you, I watch all the infomercials and do not have faith in any of them. I called Lonnie Scruggs and introduced myself and asked him point blank if he was making his living buying and selling mobile homes or from selling information through direct mail.

To make a long story short, this man, without ever knowing me or making a penny from me, took about 30 minutes of his time and explained the book to me. I immediately ordered the book, Deals on Wheels, which I am waiting to receive.

With nothing more than the free information Lonnie gave me, I looked in the newspaper and started to call mobile home parks. On the first day, I saw an ad in the paper for a used 1980 14x70 mobile home, $3,500 cash. I called the fellow up and went to look at the home and gave him $2,000 cash on the spot.

Next I needed a buyer, so I just asked everyone in my office if they knew anyone in need. I was so excited, I was prepared to break even just to do the deal. There was a lady who works with me that has a babysitter who was dreaming of owning her own home. I called the young couple up and took them to see the home. Bear in mind this is all the first day.

I advised them I would take $6,250 for the home and no lot rent due until the first of the month. They were elated! Because of their young age, they had been turned down all over town.

They gave me $625 down, and I financed the balance for 36 months. Hell, I had to find a friend to calculate the monthly payments for me and loan me a generic purchase agreement. To this day, I don't know exactly what my yield is on the deal, but I know it is good enough. It made me feel great to help this young couple out.

The next day, I went by a old park and saw a home for sale. The owner of the home was behind about three months on the lot rent and wanted to move back to West Virginia. I paid the lot rent, and gave them $1,000 walking money and sold the home to the first couple's sister and her husband. I sold the home to them under the exact same terms.

Then, I went to a mobile home dealer who just happened to have four more manufactured homes on his lot that they had taken in trade. He was asking for $18,000 for all four. I know this sounds like a lot of nerve, but I told him i would give him $9,000 for all of them. We agreed at $11,000. I called Lonnie back, and he said to pull the trigger on the deal but to ask the dealer to hold them until they sold.

I went back to the dealer and paid him in full. He agreed to hold the homes for me. Here is the best part: We went inside and he started going over his turndowns. We immediately called a young couple, and they came by. They picked one of the homes and even agreed to have the home moved to an old, run-down park across the border in South Carolina. I split the moving cost and let them have it for $5,500 with $550 down. Again--they were overjoyed.

You must be wondering why the dealer didn't just make the deal on his own. He said he didn't have the money, and mobile home financing was too much of a pain. (As if working on the lot 15 hours a day at $6.25 per hour isn't?) By this time, everyone who knows me is getting very curious.

Even though I live in an upscale neighborhood, it seems everyone I meet knows a young couple trying to break out of the rentals. It makes sense to me to. Why should they pay $450 a month to rent a home when they can buy one for less? I will be closing on the sale of two more this weekend.

A side note to this whole story is the fact that in my day-to-day business I come into contact with lawyers, doctors, real estate millionaires, and just plain mill workers. Without exception, they all tell me it can't be done. I know a fellow who is a multi-millionaire buying and selling commercial real estate, and he told me that there was no such thing as a $2,000 mobile home or a market for them in Charlotte. Now this is a man who is in the field every day and has made millions.

Everyone you come in contact with will tell you it can't be done.

If you are like me and have a burning desire to make above average income, I can tell you--it can be done. The reason most people will always be broke is because they have no desire. Like my grandpa always said, "Some folks want to be on top of the mountain, but they aren't willing to climb the hill." That comes from a 86-year-old hillbilly with a 8th grade education.

In case you are wondering, as of last week I was flat broke. I went to my bank and got a line of credit to do business. I can tell you this: Within one year, I will be a major player in the mobile home business here in Charlotte.

I will always be in debt to Lonnie. And to show you what type of a man he is, he would not accept anything except the sale of a $30 book. Let's see the TV gurus with the high-dollar kits show you a student like me. I am buying and selling at the same time!

 
Loading subscribe form...