I just wanted to write and thank Lonnie Scruggs and CRE Online for helping me get started. First, I want to say that I’m one of the biggest skeptics you’ll ever meet. But after ordering and going through Lonnie’s material, I did my first deal!
Here’s how it went: I called on an ad in the local paper for a 1972, 2-bedroom, 1.5-bath for $3,500. Despite only having about $1,500 to spend, I took Lonnie’s advice and followed up to look at the place anyway. I got about three steps out of my car toward shaking the owner’s hand, and he already dropped the price by $500. (Needless to say, I was excited.)
After talking with him for a bit, I realized he wasn’t living in the mobile home and had been paying two lot rents for two months. So, I got a sense for just how motivated he was. By the end of the first meeting, he was down to $2,500, which was still about $1,000 more than I had. I took Lonnie’s advice again and said I had to check with my “partner.”
I knew there was no chance of getting the money, so I figured I’d wait on the end of the month, which was a week away, to see if another month’s lot rent for an empty home would motivate him further.
When the week was up, I left him a message with my best offer of $1,500. Five minutes later, he called me, told me he got the message, and said he was thinking it would be better to sell it for $1,200, since I’d have lot rent coming up in a few days! I had to work hard to contain my shock. Can you imagine getting a lower offer than your best offer?
Well, after collecting myself, I finalized everything and sold the place to my sister for $3,000, $200/month for fifteen months, no interest. (She’s family!) It feels great to get that check for $200 every month. It’s not much, but it’s nice to have the extra income and to imagine the potential when I start adding to that.
I’m in the process now of looking for my next deal, and I’m psyched to get on it. Thanks again, to all the contributors to this website. I’ve learned a ton. And special thanks to Lonnie Scruggs!