MAKING MONEY WITH MOBILE HOMES
MORE ON HOW TO BUY, SELL AND FINANCE ALMOST ANYTHING (he uses mobile homes as his personal examples)
FOR BIG PROFITS AND CASH FLOW
by Lonnie Scruggs
Because Of The Tremendous Response To Deals On Wheels, Lonnie Scruggs just had to share more of his money-making ideas.
Picking up where the first book left off, this 231-page book shows you how to make good deals even better.
“If you haven’t read Lonnie’s books you’re doing yourself a HUGE dis-service. His books should be on the must-have “classics” list for real estate investing. You won’t find a better value for the money anywhere. I’m buying a set for every member of my family for the holidays. They’re that good.” — Paul Horn, North Carolina
“Lonnie is no-nonsense and can teach you how to make amazing returns on small deals. The books are all written in short essay style on a single subject each, and may be the best introduction you will ever find on how to use a financial calculator and understand what you get out of it. Truly the most bang for the buck in real estate books. He introduces you to so many fundamentally sound principles in negotiation, cash flow, investment analysis, and just good sense that you can’t go wrong with them even if you don’t care anything about mobile homes.” — NR, Mississippi
If earning a 50% to 100% to 150% yield isn’t enough to excite you, now you can discover how Lonnie makes 200% yields on some deals and a 451% yield on one very simple transaction. He tells you exactly how to find these same kinds of special opportunities for yourself. Also learn how to recover your entire investment in 12 to 15 months! And much, much more.
This book covers everything you need to get started earning awesome yields with minimum hassle, including:
* The best kinds of mobile homes to buy
* Eight ways to find low-priced mobile homes
* How to negotiate an even lower purchase price
* How to determine necessary repairs
* How to make your phone ring off the hook with buyers when you resell
* How to get started with $3,500
* How to start with no money
* And much more…
Regardless of what kind of job you have, how well you like your job, and how much that job pays, you need to have something producing income for you that doesn’t require you to be there. You should have cash flow coming in if you’re sleeping, fishing, on vacation, or too sick to work. If your only source of income is from your next pay-check, and you lose your job, how much cash flow will you have coming in?
If you lost your job tomorrow, how long could you support your family on what you have now? These are serious questions you should ask yourself. And if you don’t like the answers, start making plans now for your financial future. So, what to do? “Hire” some “employees” to work for you. And what’s the best kind of employees you can have? DOLLARS!!!
I consider every dollar I invest, another employee working for me. With proper management, each employee works 24 hours a day, 7 days a week. They never call in sick, they never go on strike and they never complain about working conditions. And my employees never have to worry about being “downsized” either.
But if I get lazy, or don’t do a good job of managing my employees, my income will decrease, and maybe even stop. So you need to develop good financial discipline, and good management skills in order to get the most from your “employees”. Let me share a couple of my latest investments in order to give you a better understanding of what I mean.
I paid $17,000 for a mobile home lot, and the mobile home. (Just the lots alone in this park sell for $17,000-$20,000). I sold the home for $5,900, $600 down and a note for $5,300, payable $209.10 for 32 months. So even though my mobile home employees are “temporary employees”, they will produce excellent cash flow. If I practice good financial discipline, I’ll use the cash flow they produce from the mobile home payments, and find them another job before their temporary job runs out.
Since I was able to sell the home for $5,900, that means I now have only $11,100 invested in a lot that’s worth $17,000-$20,000. The couple who bought the mobile home, also pay $250 monthly lot rent. And most likely, the lot rent will increase each year with very little, if any, additional cost to me. And I won’t need to be there to make it happen, just a rent increase notice, and a postage stamp. (Up-date. Lot rent is now $275.)
So these 11,100 employees will be long term, cash producing workers. And if I’m a good manager, they won’t ever get a day off. What a slave driver, huh? If I do nothing but bank the monthly cash flow, these 11,100 employees will provide a good yearly shot for my financial health. (Incidentally, we now have 29 lots just like this one, all paid for from the cash flow that our “temporary employees” earned for us. These 29 lots are producing steady and reliable cash flow every month. And I don’t have to show up to get paid. Our employees are doing the work, and we get the money. Why not use this concept and do the same thing for yourself?
Someone said, “If you don’t understand money, you’ll spend your life working for people that do.” How true, how true. Yet, the schools teach very little, if anything about money.
The majority of students graduate from high school with no knowledge of how money really works. Most graduate without knowing anything about investments, compounding of interest, how dangerous credit cards can be, or even how to balance a check-book. The schools teach them how to be an employee, and work for a pay-check, but nothing about the financial world. So the majority of those young folks enter the real world totally unprepared
The six o’clock news ran a story recently about a woman who had just won $100,000 from one of the junk mailers. When she opened her door, and they presented the check to her, the camera’s were rolling. The excitement of that lucky woman receiving her check was all captured in living color. When she finally finished squealing, hollering, and jumping up and down, she was asked what she planned to do with her winnings. This was her answer.
First, she was going to buy herself a new Lexus, because she had always wanted one. Then she was taking her son to the store and buy him those $150 sneakers so he could be like the other kids in his class. Then she would put a down payment on a house. Then she would have her brother invest part of her winnings. And finally, she would start a savings account with the rest.
This women was in fantasy-world, big time. She had no idea, and it never even occurred to her, that about 75% of her $100,000 would be gobbled up by good old Uncle Sam, and that new Lexus. She not only didn’t understand anything about money, she couldn’t even do simple math. And sad to say, her financial ignorance is shared with the majority of the people in this country. But it doesn’t have to be that way. With a little financial intelligence, and self discipline, you can create your own financial security, and financial independence. You don’t have to settle for a pay-check, or have someone else dictate how much you earn.
I can say that now, but it wasn’t always that way. You see, I once suffered from the same financial illiteracy as that woman who won $100,000. There was a time when I thought working two jobs was the answer to your financial dreams, and your financial goals. When it finally become apparent that working two jobs, and long hours, wasn’t the answer, I decided to make the effort, and the sacrifices, and learn how money works. I couldn’t understand how some people seemed to have plenty of money, yet others, who worked much harder, and longer, had so little. But I made up my mind to learn. So I made the effort, and the sacrifices, and learned how to become financially literate, and financially secure.
It’s my sincere hope that this book will help get you started on the road to your own financial security, and financial freedom. In this book, I’ll be sharing many of the same techniques and strategies that played such an important role in my own road to financial success. This may come as a shock, but making money is one of the easiest things you can do…if you take the time to learn how. If you don’t learn, then making money can be the hardest thing you will ever do. But, it’s not that difficult to learn if you’re willing to change your thinking, and forget what you’ve been taught about money.
If you work a week for one pay-check, you’re somebody’s employee. If you work a week, and get checks for years, then you’re somebody’s employer. Which would you rather be? People who choose (and it’s your choice) to work for others all their life, have very little chance of ever becoming financially independent. If you’re making payments on a car, a loan, a credit card, a vacation, and etc., you’re an employee of the person you’re making the payments to. And you’ll be their employee until that debt is paid off. On the other hand, if you create a note, and obligate somebody to send you a check each month, that person will be your employee for the term of your note.
In this book, I’ve shared a number of ways which you can use to create your own “employee.” I urge you to read and study, then read and study some more, until you fully understand the techniques, and strategies. Then pick one you like, and start your business. There’s no magic, or secrets. It’s simply having the desire, determination, a positive attitude, and the wiliness to do what most people are unwilling to do. The opportunities are everywhere, but you must train yourself not only to recognize opportunity, but to take action when you see an opportunity. If you will do that, you will achieve your financial goals, and dreams.
As you travel your road to success, please don’t get so busy, or too successful, that you fail to find time to lend a helping hand, or give a word of encouragement to that person in need. One of the best feelings you can have, is to be able to help someone in need, without any expectations of anything in return. I think Zig Zigglar said it best. “You can have everything in life you want, if you will just help enough other people get what they want.” Now, let’s learn how to make money.
According to figures put out by the IRS and the Bureau of Statistics, 12% of Americans over 65 are living, or trying to live, on incomes of less than $5,000. Only 4% of people over 65 have annual incomes of $30,000 or more, and only 3% have incomes over $50,000.
The average annual salary of a full time worker, with a high school education, is $24,180 ($11.63 hr). For a full time worker, without a high school education, it’s $16,848 ($8.10 hr.) (These are last years statistics, which may be somewhat different by now, but probably not a significant change.)
These reports go on to say that 58% of the working people have taxable incomes of less than $25,000, and only 2% have taxable incomes of $100,000, or more. How could only 2% be making over $100,000, while the vast majority are making only $24,000?
The only logical explanation I can see is knowledge & education, (or maybe I should say the lack of knowledge & education), and the choices we make as we go through life. If you choose to be “average” (and it’s your choice), then you will get average results. If average is your comfort zone, and you’re happy living in that zone, good luck.
If you’re happy working a job, and you’re earning all the money you need, congratulations. If your job will provide you with the kind of retirement and security you want when you get old, congratulations again. If not, then you obviously have to get out of your comfort zone, make the necessary effort, and commitment, and do something the average person doesn’t do.
Approximately one million workers are being “downsized” (that’s a polite way of saying, “You’re Fired!”) each year. For years, many of these people were happy in their comfort zone and thought they had a “good secure job.” Many worked a job they didn’t like, that paid just enough to live on. And most of them failed to learn how to do anymore than what their jobs required. Since it was easier to stay in their comfort zone and continue doing the same thing every day, they never made any real effort to do any better.
Recently, on the evening news, there was a story about a woman being downsized after 27 years on the same job. Her job was inspecting TV’s coming off the assembly line. For 27 years she was in her comfort zone and made no effort to improve her knowledge, education, or learn how to do anything different. Then when her time came to be downsized, she wasn’t qualified to do anything except inspect TV’s.
Is there a lesson to be learned here? As the saying goes, “If you continue doing the same thing you’ve always done, you will continue getting the same thing you’ve always gotten.” (Unless you’re downsized.) Somebody said that the definition of insanity is “Doing the same thing over and over, and expecting to get different results.”
Be Willing To Pay For Your Education
Over the years, Joanne and I have spent many thousands of dollars going to many seminars, and conventions. Not that we could always afford to go, but rather because we couldn’t afford not to go. We had a choice to make. And our choice was to spend the money back then to get an education, so we could enjoy a future of financial security. Education doesn’t get “downsized”, and once you have it, nobody can take it away from you.
I’ve heard it said many times that you WILL pay for your education at some point in your life. And you get to make the choice when you will pay. You can pay your dues when you’re young, healthy, and able to work. Or, you can pay when you are old, sick, broke and unable to work. The choice is yours. When will you pay?
Take Time To Learn
I gave a seminar several years ago, and whenever I think of that seminar, two men instantly come to mind. One was a plumber that called saying he wouldn’t be able to attend the seminar, but would like to stop by and get my books, which he did. He said he sure would like to sit in on the class, but he had a plumbing job he just had to do that day. I never heard from him again.
The other man was about ready to retire from the Marines after 28 years service, and he wanted to learn something he could use after he retired. He called me about two months after the seminar saying he had done two mobile home deals. He “thought” he did O.K., but he wasn’t sure because he didn’t know how to use a calculator. So he asked me to give him a crash course in using one.
After 30 minutes or so on the phone, he got the hang of it and punched in the numbers on one of his deals. In fact, he punched the numbers in several times, because he didn’t believe the answer he kept getting. After I agreed with his numbers, there was a long pause. Finally he said, “My God, this stuff is scary.”
It cost the marine $295 to attend that seminar, but how much did it cost that plumber by not attending? There’s really no way of knowing, of course, but let’s suppose the plumber made $500 on that job that he just had to do that day. How much has he lost by not learning what the marine learned? The plumber did one job, and got one check. The marine did one deal, and got many checks. Plus, he now has the knowledge to do the same thing over, and over.
Pick A Bracket
The records show that 95% of the people that reach retirement age will need some kind of help, or a part time job, in order to live a decent life. Yet, those people had the same opportunities, and the same choices to make as we did. They just made the wrong choices. They chose to be average all their life. And, most “average” people wind up in the 95% bracket.
So which bracket will you choose? When will you pay for your education? Will it be now, or later? Do you choose to be “average?” These are all choices that you get to make. Choose wisely, because your financial future will be determined by the choices you make today. I hope this book will help you make the right choices.
About The Author
Lonnie Scruggs was born and raised in Virginia. He has been in some type of business most of his adult life. For nearly 30 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. When it became more and more difficult to find good notes, he found a way to make his own. He discovered how to create his own “Mobile Home Money Machine” by buying, selling and financing used mobile homes.
His two books, Deals On Wheels and Making Money With Mobile Homes, explain in complete detail his simple, unique, and proven system of how you too can create your own money machine. Lonnie shows you how to put your money to work for you, instead of you working for your money. Lonnie says you should “Never Let The Mail Carrier Pass Your House Without Leaving A Check.”
What Are The Differences Between Making Money With Mobile Homes And Deals On Wheels?
The author of both books, Lonnie Scruggs, explains:
“Deals On Wheels covers the basics of how to find, sell and create cash flow with used mobile homes. It explains how to run the numbers and make big returns, etc. In essence, it’s “How to create your own ATM machine.”
“Making Money With Mobile Homes picks up where Deals On Wheels leaves off. It’s a continuation with more advanced mobile home deals, strategies and techniques: How to co-venture with others and split the profits. Selling all, or part of your note to recover your initial investment. It also has a chapter about a park my daughter bought (what a little gold mine that’s turned out to be.) So just a lot of ways to make money with mobile homes, mobile home paper, and parks.
“If someone wants only one book, I recommend they get Deals On Wheels. But the majority wind up ordering the other book later.”
Over 70 percent of our customers order both books in their initial order.
Table Of Contents
Had Your FINANCIAL Check-up Lately? 22
How Do You Rate? 22
Make Money While You Sleep 23
Case #1 24
Case #2 25
Case #3 25
$1,000 Monthly & I Don’t have To Show Up 26
Compounding Power 26
Which Plan Is Best? 30
What’s Best For You? 31
Financing Is The Game 33
Cash vs Notes 36
The Story Of Louie & Lonnie 36
One Deal-One Check 37
One Deal-Many Checks 38
Instant Gratification, or Long Term Security? 40
Creating Passive Cash Flow 41
Think Big 41
Pretty Deals From Ugly Properties 43
A Quick Flip Equals A Long Note 44
Back To Back Closing 44
The Value Of A Good Customer 46
Then I Won’t Owe Anybody 46
Spread The Word 48
Let’s Get Creative 50
$3,000 Profit With No Money 50
Harry Finds A Buyer 51
Harry Sells A Note 52
IRA Money 53
From Good, To Better 54
What Happens If The Note Pays Off Early? 55
Competitor, Or Partner? 56
Results Of Working Together 57
A Word Of Caution 57
A Quick Flip Pays Off 58
What Does The Other Party Need? 59
Who Says Mobile Homes Don’t Appreciate? 62
Case #1 63
Brokers Create Motivated Sellers 63
Let The Seller Name The Price 65
Sell Before You Buy 66
Case #2 67
Handyman Special 68
A Total Rehab 69
One Question…$800 71
Follow The Rules 72
How To Get Five Extra Payments 74
Case #3 75
Trade For New Double-wide 76
Adult/Senior Parks 78
Throw Away The Snow Shovel, Mabel 80
It’s Just Not Home 80
Determine The Sellers Motivation 82
What To Check First 83
Ways To Sell 83
Try A Test Ad 85
Other Ideas 86
Ask For A Lease/Option 88
Just Do It! 87
Fear Is Expensive 90
The Monster That Cripples 92
It Took Seven Years 93
Deal #1 94
Deal #2 94
Deal #3 95
Deal #4 95
Turn Short Term Profits Into Long Term Income 96
Rent The Dirt, Sell The Home 97
Payee, Or Lessee 98
A Lifetime Of Income 99
Dealing In Doubles 100
Give Them A Choice 101
How Much Down, How Much A Month? 103
Now, For The “Rest Of The Story” 104
It Turned Into A Money Machine 106
Fortune In Fix-Ups 110
Should You Fix-up, Or Sell “As Is?” 110
Two Types Of People 112
Learn To See Dollar$, Instead Of Debri$ 113
Creating Profits 114
TV Could Be Costing You $125 An Hour 116
How Can You Lose? 116
Financing Is The Key 117
Hire Some One To Do The Work 118
Learn About Repair Work 119
Spend Your Time Where It’s Most Efficient 121
Partners Means Profit$ 124
Find A Partner Who Thinks It’s Fun 124
Seller Owes $7,300. We Buy For $1,800 127
No Time For Repairs 130
How Do you Spell Doozey? 131
Hey Jack, Have I Got A Deal For You 134
Recover Your Investment Within 12-15 Months 136
$795 Monthly On $8,000 Investment 136
Low Price–Low Risk 138
If You Snooze You Loose 140
What Sign? 140
$60,000 Price Reduction 143
Time For A Counter Offer 144
Janet Has A Contract 145
How To Get A Pay Raise 146
How About A Discount? 148
You Can Do It Too 150
Develop PMA 151
From “Yours” to “Ours” 151
Up-Date On The Park 153
Auto Pilot 153
My Challenge To You 154
Late Payments Are Great 156
I Love Late Payments 156
I Have Been De-Bugged 157
Why Grown People Cry 158
They Never Learn 159
Late Again? Thank You 160
The Real Difference 162
Can’t Buy For $2,500? Then Pay $5,000 164
A Sunday Drive Pays Off 165
Learn Your Market 167
Sell Before You Buy 168
Paying $5,000 Is Still Good 169
Estate Sales 172
It Pays To Advertise 172
$7,300 Cash Profit 173
How To Create 10 Years Of Payments 176
A Change Of Plans 177
Establish A Line Of Credit 181
Partner Up With An Investor 181
Cash Is King 182
We Sold The Lot 182
Right Place–Right Time 186
I Could Smell Blood 187
Two Questions–$2,500 188
The Value Of A Good Lawyer 189
Purchase Price Determines Taxes 192
$20,000 Lot For $5,600 195
The Cold, Hard, Facts Of Life 198
Don’t Wait Until It’s Too Late 200
Start Your Memory Bank 202
Shut The Doors And GO! 203
Purchase Agreement 208
Sales Agreement 210
Credit Application 212
Promissory Note 214
Lot Rental Agreement 216-218
Buy/Sell Info Sheet 220
Smoke Detector Verification 222
Power Of Attorney 224
Mobile Home Web Sites 226
Manufactured Housing Associations 228-230
About The Author 232