John Fedro 7 Comments. When I first got started investing in individual mobile homes on private land and inside parks I had no idea who Lonnie was. It may surprise you to learn that Lonnie and I have never formal met face to face. If you are actively investing in inexpensive mobile homes and reselling them to good-hard-working folks you are changing lives one-by-one. To date I have helped countless families acquire temporary or permanent used mobile home housing that these families would have not been able to afford otherwise.
- Lonnie Scruggs’ Deals on Wheels: Are Mobile Home Flips Good For You?
- Deals on Wheels How to Buy Sell and Finance Used Mobile Homes for Big Profits by Lonnie Scruggs
- Deals on Wheels by Lonnie Scruggs
- Deals on Wheels by Lonnie Scruggs
- Similar authors to follow
- Lonnie Deals in Action
- Deals on Wheels: How to Buy, Sell & Finance Used Mobile Homes for Big Profits and Cash Flow
- Lonnie Scruggs - Deals on Wheels
Lonnie Scruggs’ Deals on Wheels: Are Mobile Home Flips Good For You?
Sign up for this week s free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives. This book combines real-world experience and the science of negotiation to cover all aspects of the real estate negotiation process. View all Local Real Estate forums. I am reading the book now and it is lots of fun. I have no experience in mobile homes whatsoever and really wonder: Are these deals realistic now?
What would you do with them? Where would you put them? In answer to your other question re: You re absolutely right Dodd Frank would slap your knuckles pretty hard for that unless it was a one time deal and it was your own home and you agreed to take a down payment and let the buyer pay you over a period of time.
But even that can be sticky. As one holding the paper you could also end up being the one holding the bag should the buyer just simply decide that they didn t want to make anymore payments to you. Personally after 3 decades in this biz doing just about everything there is to do in it I see very little value spending any money on old beaters. Besides they blight the landscape and are ready for the boneyard. Think new my friend and I d be thinking multi wides not singlewides.
I did two "Lonnie" deals last year here in Idaho. They made their final payment four months after we signed. Payments going good so far. The deals are out there but take a little searching and buddying up with some park managers. John Arendsen brings up an interesting preference for multi-section mobile homes versus singlewides. There are more singlewides to be found and can get them for a lower initial price point, but doublewides on their own land are considered very desirable.
I would start with a singlewide in good condition year or newer just to get comfortable with the process. Then you can take that and decide if you want to make an incremental financial commitment with a doublewide. Probably because in SoCal there just isn t that much of a market for them unless they re going into a MHP with very small spaces.
Now if you purchase an old beater and completely re do it from the ground up that might work. But for the most part MHC s are really trying to gentrify in MHP d that are in the path of progress so there is a value added there. However, if the park is blighted or not in the path of progress then the values diminish considerably thereby dissipating the desirability and incentive to want to invest there.
Demjan Van Der Kach yes, it is possible to find newer and older mobile home for up to k. We did it for 3 years and flipped around 32 properties. John Arendsen , Jeffrey H. There are many Lonnie Dealers now doing deals legally through a modified process. I did some of those deals. Made some cash flow for some years. I am still looking for 5k to even 20k mobiles that I can sell for 2x, 3x or even 4x the purchase price because they are owner financed to the buyer.
I clean them up some and make sure everything is working. Everybody needs to live somewhere and if you can give them a modestly priced home that is in decent shape, why not?? Believe it or not, some people can not get financing but they also want to own a home. There is a void that needs filling, step in the real estate investor. If you take the same concept to site built homes, you purchase something that maybe needs a little work but at a significant discount, owner finance it for 20k or 30k more you can have a decent return on your money.
This works best with properties under k. Everybody wants to say why you CANT do something. I like to find out how I CAN do it. I agreed with everything you wrote until your last statement that you can do owner financing without government regulations. Every major community operation in the country would like to know how you believe you can do that legally. On your profile page you state you are looking for money to do deals with. If you have figured out what hundreds of highly paid attorneys don t believe possible, and that I don t believe possible, I believe I can help you with the money issue.
I agree that there are many people writing about why you can t do seller finance utilizing the methods of the past and still be legal. It is easier for those who know to simple say, "You can t do it that way, so go hire the help you need to set up a legal operation. That doesn t mean it can t be done but it does mean paying someone to help which many people who read and post here often can t afford, or believe they can t afford. I should not have said it quite that way.
You always want to be ethical and legal. Follow the laws of your city, state and all federal guidelines. Make sure that the person CAN pay the mortgage. Escrow the taxes and insurance for the buyer of your property. You want to make sure that the property is affordable for the buyer. You dont want to create a business model that you foreclose on your buyers every couple of years and get a new buyer in there only to foreclose on him down the road.
Everything I do is through a title company and they will also help make sure that you follow every guideline that you should. When you do more than 1 owner finance to an owner occupant it is NOT illegal, you just have to follow more and stricter regulations and guidelines. I am in Florida and need to do it right and legal. How can I reach out to you?
Gustavo Ouvina it s a big difference selling a mobile home by itself and selling one with land, especially if the buyer is living in the MH. Another investor told me he does lease to own two contracts - one lease and one option to buy and then he could evict them if they got behind and kept the option payment.
The buyer has to find his own financing at the end of the option period or buy another option,. Marelyn Valdes thank you!! Great advice!! One of the things every poster of advice must consider and remember is that we are all from different parts of the country, and the second issue is that we all have different circumstances.
Some of the things that work in many states, do not work well in others. California is a world unto itself with all of its regulations and attitudes as well as its much higher costs. Even within a state, things change. What works in the Rio Grande Valley of Texas does not work in Dallas, and the same is true in most other states. Try that in Peoria, Illinois and watch the community fail.
Just read carefully and post carefully with all of that in mind. Original posters looking for advice should take the time to post carefully and in detail if they want good advice. I m probably the biggest nay sayer on BP when it comes to financing, the "just don t do it" but I always I believe have said without professional assistance, usually. It s not that seller financing can t be accomplished, but that it can t be done in compliance following the most popular deal structures of the past, "Lonnie Deals" were specifically mentioned in the original Dodd-Frank Act in the context of predatory dealing.
While the original path of buy, fix, lease and or sell and finance may be accomplished, how things are done must be modified, some cases requires drastic modification. I ve been working a bit on the old contract for deed, it was the very popular in the Midwest but now has so many flaws from financing, foreclosure and title matters that even if they are allowed, it s not worth the effort, cost or profit wise.
The concept of the installment sale is still a good one, we just need to overcome the newly created flaws to be compliant. Defining the type of loan made can be more complicated than most investor types believe. A financing contract, even if made for a business purpose, may be classified as a residential loan by the nature of the collateral, the intended outcome or initial intent, and in some questions it comes down to is this more like a donkey or a zebra, it may go either way.
These types of assessments really should not be attempted by untrained or inexperienced finance types, "investors" are often influenced by misinformation, folklore by those doing something and as Ken pointed out, all real estate is local and that holds true, to some extent, in financing. Holding any license as a lender, mortgage broker or originator doesn t mean they have financial examination or compliance experience much less experience in administrative law and oversight.
So, is seller financing really dead? Investors doing deals need to go much further than ensuring their buyer can fog a mirror. Another issue is the intent, Lonnie was well known for capitalizing on the failure of the buyer, take a big down, finance something that cannot be easily financed, take it back, rinse and repeat. This attitude today is predatory dealing and financing, just because some nit wit has a chunk of money doesn t mean they are qualified to own real estate.
I suspect Ken has cured this issue with the new arrangements. The ability of a lender to terminate an installment contract and not release title goes to circumventing foreclosure laws, any equitable interest as set by state law needs to be foreclosed upon, not simply terminated and deeded back the the seller. Another requirement for financing is the collateral, the security interest held in the property, if the lender has the ability to terminate a financing contract and not convey title, that is considered a security interest.
Know too, that now we have attorneys advertising to rent to own type buyers, buyers who got seller financing. There can be more money in crushing an illegal seller than in a car accident! As mentioned above, screw up and you can lose the property, be fined and have court costs Next point, getting creative beyond what is acceptable locally or nationally can be a mine field for an investor.
Financing options with maintenance requirements is an absolute "no go" in any state, for a residential property. Again, this is where a financial compliance team comes in, not really your local real estate attorney. As Ken mentioned, every deal is different, every loan is different, the collateral and contract will be different and local attitudes will play on how deals are done. And, with seller financing don t forget you re lending equity based on a sale price, not cash, it s an installment deal even with a note and deed of trust.
Not all borrowers must be able to qualify as if they were going with Fannie Mae, but it s certainly best if they can some actually can , but the trick is to access the ability to meet future loan requirements. How is your crystal ball?
Deals on Wheels How to Buy Sell and Finance Used Mobile Homes for Big Profits by Lonnie Scruggs
Your State: If so, you must include your valid email address here. By entering your email address here, you agree to receive notification from Mrlandlord. You will receive response notifications for up to one week following the original post.
Seller Rating: About this Item:
Lonnie Scruggs was born and raised in Virginia. He s been in some type of business most of his adult life. For 35 years he owned, rented, managed, and maintained his own rental properties. After becoming a burned out landlord, he began selling off his properties and started buying discounted notes and mortgages.
Deals on Wheels by Lonnie Scruggs
This ebook is included with a premium membership. The Version includes 2 new chapters. This book covers everything you need to get started earning awesome yields with minimum hassle, including:. Lonnie shares his many years of experience and shows you how to make fantastic profits in the least recognized, yet best money-making business in the country. Here are just a few of the many written letters and testimonials Lonnie has received from folks around the country:. On March 20th we purchased your book and on April 28th purchased our first mobile home. As of today, we have bought 14 mobile homes and sold 12 and made money on all of them.
Deals on Wheels by Lonnie Scruggs
Similar authors to follow
Lonnie Scruggs made a fortune in mobile homes. In fact, his yield on mobile home deals has consistently been much better than any single family house deals. Read Lonnie s BIO below: I bought my first rental property in at the age of 41 and sold my last rental property in During this same time frame I was in the used mobile home business for 19 years - And while all of these businesses have been very successful and profitable, the mobile home business was the most fun, the simplest, and dollar for dollar the most profitable. If I could do it all over again, I would focus mainly on mobile homes and mobile home parks. It s a great business and a great way to become financially independent.
Lonnie Deals in Action
The lowest-priced brand-new, unused, unopened, undamaged item in its original packaging where packaging is applicable. Packaging should be the same as what is found in a retail store, unless the item is handmade or was packaged by the manufacturer in non-retail packaging, such as an unprinted box or plastic bag. See details for additional description. Skip to main content. Lonnie s Ultimate Mobile Home Bootcamp: Deals on Wheels: About this product. Brand new: I bought my first rental property in at the age of 41 and sold my last rental property in
Deals on Wheels: How to Buy, Sell & Finance Used Mobile Homes for Big Profits and Cash Flow
Goodreads helps you keep track of books you want to read. Want to Read saving…. Want to Read Currently Reading Read. Other editions. Enlarge cover. Error rating book. Refresh and try again. Open Preview See a Problem? Details if other: Thanks for telling us about the problem.
Today is a bittersweet day.
Lonnie Scruggs - Deals on Wheels
Sign up for this week s free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives. This book combines real-world experience and the science of negotiation to cover all aspects of the real estate negotiation process. View all Local Real Estate forums. I am reading the book now and it is lots of fun. I have no experience in mobile homes whatsoever and really wonder: Are these deals realistic now? What would you do with them? Where would you put them? In answer to your other question re: You re absolutely right Dodd Frank would slap your knuckles pretty hard for that unless it was a one time deal and it was your own home and you agreed to take a down payment and let the buyer pay you over a period of time. But even that can be sticky.
Hey there. When it came to doing deals on mobile homes, this guy knew what he was doing. He rocked his gig for a long time, and news of the Lonnie Scruggs death was a hit to the real estate investment community. Since he was an investor who made his mark and produced materials that are still in demand, I figured he was definitely worth a review. I got on the real estate investment train and rode it down Success Line. Collected houses and properties, made a bunch of cash, then lost it all when the economy crash hit me like a midnight express coming from the opposite direction. All of my cars blew off the tracks and I was sitting there looking at a locomotive graveyard. While I sat my lonely ass on the rail, looking at the wreckage and wondering how the heck to get back on the line, it made me wonder what I needed to do to win in being an entrepreneur. I found my answer. The biggest enemy I had lived between my ears.
Click here for details. Check the boxes for the articles you want and click the "Place Order" button scroll down to the bottom of the page. Use your major credit card. This is a totally secure process. Your credit card information is protected with state-of-the-art encryption technology. All of your credit card information is encrypted before it is sent over the Internet. No one except us will be able to decode your information. Here are all of the reading assignments for the course. Then click on the order button: Now Click Here: You may still order them one-by-one as you take each lesson. To sign up for the FREE 7-part e-course, click here. My experience has shown me that there are many marketing techniques that can only be described as myths, because I have never found them to work. Note brokers and investors need high-quality, focused marketing plans, including the tools and training to execute these plans. Simultaneous closings also make it easier to find paper.VIDEO ON THEME: Lonnie Deal Used Mobile Home Investing Pros And Cons