This is for all of you lurking on this site. This is a “get off the couch” (GOTC) story for you all. Success Stories like this one got me off the couch, and I hope my story will help you.
Forty-five days ago, I talked to an unmotivated seller who told me over the phone that she would never sell her mobile home for less that $13,000.
She had put new tile in the kitchen, new carpet in the rest of her 1982, 14X70 2/1 Skyline. In addition, she had new plumbing put in, has resealed the roof, and had a driveway put in. (The only driveway in the park for a single-wide lot.) I told her that if she sold it on payments, she should get her price and wished her luck.
Fast forward to yesterday. For about a week, I had been playing phone tag with the seller. She had called and left messages saying she wanted to see if I was still “interested” in her home. I agreed to look at her home, since I had an appointment to look at another one anyway. She told me that she was now willing to take $6,000.
When I got there, I was surprised at how nice this mobile home was. I have to say that it was the best looking mobile home I have ever seen. No “smell of money” (cat urine) in this one. We talked for a bit, and when she would only drop her price to $3,000 I started to walk out.
Then I stopped and turned around with the money question: If I could pay all cash and buy this today, what is the best price you can give me? She said $2,000. I told her if she could take $1,500, I would buy it. She did not hesitate. This home will sell for $9,000 to $11,000 on payments with no problem.
[Editor’s note: She dropped the price from $13,000 to $1,500 after 45 days!]
Almost forgot–I purchased the 1989, 20TH, 3/2 I was originally going out to see for $2,000. It needs $1,500 to $2,500 in rehab (depends on what I want to sell it for: $14,000 to $16,000). My handyman brought me this lead, so I have to give him his $100 referral fee in the morning while we go over this project.
He did wonders with the first rehab I gave him. That 1981, 3/1.5 is selling on payments for $11,000. We should finalize the sale next week after the park application is turned in and I get the insurance binder and down payment.
With over 600 units in this mobile home park, I think I can keep busy here for awhile. With these two purchases done, I am working on deals four and five.
Less than a year ago, I was sitting reading stories like this one wondering if I could do what those people were doing. Yes, I can. And you can, too! “Get off the Couch” today! If you have read Deals on Wheels by Lonnie Scruggs at least twice, it is time to get in. Make mistakes. I know I have. Learn and repeat the process.
Deals like the ones above are out there everyday. Hope this helps you out, just as reading these stories has helped me. Thank you, CRE Online, for your site. I know that it has helped me and so many others are just starting out.
Updated!
The 2/1 sold for $11,500 at $300 per month within 45 days. Because I paid so little for it, I took a risk and sold with no down payment. Move-in costs for this park are around $800, and they had that so I took a chance with them.
I had all of my initial cash back as November 2006, and the note doesn’t pay off until September of 2010. If the note runs to term, I will have collected $15,600 on this $1,500 purchase. I was in the home for around $1,800 so my profit would be $13,800.
The 3/2 I bought that same day was rehabbed and sold about 60 days later. I spent too much on the rehab and was in it for approximately $6,500. I sold it for $14,000 with $1,000 down $300 a month.
I will not have my money out of that home until January 25th 2008. That note does not run out until April 2011. If the note runs to term, I will have collected $17,400, so my profit would be $10,900 on a deal that I screwed up by being green to the mobile home “rehab” business.
So, if both notes go to term, I will have collected a total of $33,000 in payments and my cash profit will be $24,700. Those two homes have created a $600 income stream coming in each month that will not run out until the next decade begins.
Thanks for your website. I created almost twice what I earned at my JOB last year. Sometime in the next 12 months, I will be going full time as an investor, and I owe it all to Lonnie’s books and the CRE Online website.