After reading Lonnie’s two books three times [Deals on Wheels and Making Money with Mobile Homes], I was really anxious to try my first “Lonnie Deal.” I traveled around a couple of mobile home parks in May, and finally spotted a run down, overgrown 1968 12 X 56 Liberty mobile home in the third park.This is a nice park in a small town about 10 minutes from a good size city.
I found out from a neighbor that the park owner now owned the mobile home, and it hadn’t been lived in for five years. So I looked up the owner. He said he wanted $2,000 for it, and that there was $1,383 in back taxes due, and I was welcome to look at it as it was unlocked. The ceilings and floors were good, it was on a nice lot and had a pitched metal roof.
I told him I would give him $800, would pay the back taxes, (a total investment of $2,186.53), and did not want to pay lot rent until August 1. He agreed in a heartbeat.
I hired a high school kid to paint the outside and remove a falling-down shed at $6/hour. I had the toilet replaced; installed a new screen door; hired a plumber to replace some split pipes; and replaced the water heater. For curb appeal, I covered the tongue with layers of plastic scroll things that people run material through to make valances for windows.
I wove artificial flowers through the scroll work.( I got the plastic scroll things at a yard sale 10 for $1.00). I also took a pair of them, painted them black and put them on the front window for shutters. (a 20 cent investment and they look like wrought iron!)
I bought four 3 ft. sections of small white plastic fencing for $1.00 each at a dollar store and put them across the front.The repairs took only one week, and cost $914.48.
My total investment to this point including repairs was $3,101. I put a “for sale” sign on it, put an ad in a free ad book we have here in Maine, plus two small ads in throw-aways. I knew I wanted at least $6,900 for it. Instead, I sold it within one week for $7,950, $500 down, no interest. I am getting $206.94 a month for the next 36 months: a 69.5% yield! [Editor’s Note: Good news, Barbara, your yield is actually 88%.]
A young couple with a baby who live with her parents are thrilled with it. So simple, I couldn’t believe it! The former tenants also had left two large sofas and an entertainment center, so I gave these to my son who is furnishing a large house.
Lonnie’s info was invaluable and, as he told me on the, “Now on to the next one.” (I have an appointment to see one this afternoon!) I have had 35 calls as a result of my ads! The owner financing creates a wonderful market! In Maine only a bill of sale is required to sell a mobile home, and there is no sales tax.
The new owner procured his own insurance policy with me as loss payee, and tomorrow I am going to the courthouse to record my lien. He also went to the park owner himself and was approved. The park owner is receiving his lot rent a month earlier than expected, so everyone is happy–especially me!