Getting Started


#1

I’m not new to real estate investing but I am new to the world of MHPs.

I’ve been soaking up a lot of info here on the forum and other sources. Comparing it to many other real estate investments, MHPs seem to have some distinct advantages that somehow I was not clued in to or my misconceptions stopped me from pursuing. This industry appears to be something I would really enjoy being a part of and provide great income given the right investments.

I plan to attend the upcoming boot camp and purchase the home study course to get a better understanding of the industry. Unfortunately, my funds are locked up in some very nice resort homes which produce little cash flow. I don’t see a sale/1031 of these properties anytime soon due to the current market. Eventually when I do have available funds to move forward, I want to have done my homework and be able to act fast. I would also seek a second set of eyes (consultant/mentor) to me ensure success of my first deal or two. I can’t sink the family ship (it’s more like a life raft). From then on, I could in turn help others the way I was helped.

The MHP community seems very helpful to one another - way more than I would have expected. I’m a big networking guy but my first thought is why is everyone seemingly so helpful when in fact, below the surface you’re just assisting your competitors while creating more competitors all the time with Mobile Home University and Mobile Home Millions 6 and so on? I’m sure that money is made on these as it should be for providing this valuable information, but why is everyone not just out doing more deals on their own behalf instead of spending time generating competition? What am I missing - am I just crazy or what???

Any of your thoughts on getting started, better educated or exchanging existing properties (Palm Springs, CA and Las Vegas) into a MHP would be greatly appreciated.

Thanks for reading and thanks in advance for your responses.

Doug M.


#2

Welcome to the wonderful world of wobbly boxes!

As you’ve already noticed we tend to assist one another, why is the question… Well it all started years ago with two wonderful people…

Earnest Tew and Lonnie Scruggs have both given freely of themselves and the knowledge they have gained over the years so that others can become financially free without reinventing the wheel. This does come with a price to the folks that use the information that they were given… A few years ago I personally asked Lonnie what I could ever do to repay him for what he’d given me and my family… His answer was simply “teach someone else to do deals”… then came his complete and utter uncomfortable silence that he teaches in negotiations right before he got pulled away and walked off. Many here have taken this same message to heart and are trying to pass it on to the future generations of deal junkies.

Still even with our mentors telling us to teach why would we create our own competition? Well, there are 8500 mobile homes in my county, there are 3 other people that work with the older homes in my area and that I’m aware of none of them are using the same system that I do… I can easily help people in surrounding areas without it affecting my business in the least. I want nothing to do with areas outside my home town, it doesn’t affect me in the least! (people close to me make fun of me for wanting to stay within 5 min of my house now days)

Now with that said your starting point is a little $30 book called “deals on wheels”, it has everything that you need to get started… If you have the money I would also recommend that you pick up Lonnies tape set and listen to it as you commute. After you have read the book from cover to cover you’ll need to get out and visit the parks, call on ads, and in general let people know that you want to buy a MH. Before you make your first purchase I would recommend that you reread deals on wheels at least once more.

After you’ve created your first note, you rinse and repeat… What ever you do take the information these folks have and put it to use, it does amazing things to ones future! =)

Best wishes,

Ryan Needler


#3

Thanks Ryan for your words of encouragement and wisdom.

I’m a big believer in giving back and that’s what I wanted to hear in answer to my questions.

I’ll get Lonnie’s book and read it closely. What I surmise from what little I know about this book, is that the “Lonnie Deals” are another business entirely from owning and operating a MHP but I’m sure there is also crossover between the two. Regardless, I need to know how both operate.

What I’m hoping to also hear is any advice on how often MHPs are 1031’d and to what kind of property - is it always another MHP? What MHP size to buy for new guy in the business - say three small parks with financing vs. one larger park for cash, are ever any low-down deals out there with seller financing, ect?

Did you attend the boot camp in your early days and if so, any words of wisdom regarding attending?

Thanks again and much appreciated,

Doug


#4

Lonnie deals are a great starting point or ending point, I have seen many people start with LD’s and transfer what they’ve learned to bigger deals. I personally started with LD’s and took up with small parks and am getting in to land homes more and more, I still do LD’s when they fall in my lap as it’s easy money… They are all interlinked in one form or another.

I have no desire left to own a BIG turn around park at this point, I’m starting to get lazy with the amount of work I want in my deals but it wasn’t long ago that I’d tackle dang near anything that wouldn’t eat me. If small parks and/or land homes are your goal after doing a few LD’s (or along with) I’d highly recommend Scott and Tony’s boot camp! I have attended it every time it’s been offered and the information that these guys give you is geared to the hands on guys and gals that wanna rock their local area. This is the event that helped set me free faster than I coulda ever dreamed…

If you are looking at big parks I’d recommend Mobile home millions, I’ve never personally attended the event but from talking to people that I respect I’m confident in recommending it without reservation.

If you’re not sure where you want to head, attend both and take the information and put it to work. This business is amazing but ONLY if you put what these folks give freely to work once you get back home!

Best wishes,

Ryan Needler


#5

Doug,

Although you would like to buy a MHP, reading Lonnie’s book and doing 3-5 deals is essentially Mobile Homes 101 & 102. My recommendations for basic and advanced learning in mobile homes is:

Core:

101-Read Deals on Wheels X2

102-Go out and do 1-3 Lonnie Deals

103-Attend Mobile Home Millions, Meeting of the Minds (MOM) or any other Mobile home meeting.

104-Do more Lonnie Deals

105-Teach someone else to do deals (including on this forum)

Advanced:

201-Go to Tony and Scott’s Small Park and Land Home Bootcamp.

202-Buy a small Park and/or land home(s).

301-Rinse and Repeat that which interests you so far.

302-Go to more mobile home Meetings.

303-Teach someone else to do deals.

Upper Level:

403-Attend Cory and Steve’s Mobile Home Park Bootcamp (intense).

404-Buy a large park (generally considered 70+ units)

405-Teach someone else to do deals

Graduate Level:

501-Recognize you can be happy at any level. Enjoy yourself, friends, family and colleagues.

Steve


#6

Ryan,

Thanks again for taking the time to reply.

I’ve gotten the message - get Lonnie’s book. I’ve listened and it’s on order. I’m looking forward to absorbing it and applying this wisdom.

I’m with you 100% on mimimizing brain damage - I don’t have a desire to do a turn-around park but one with small upsides and good location does have a strong appeal.

I see there are two boot camps - Steve and Correy’s whom I’m familiar with and Tony and Scott’s who I am unfamiliar with. Is there any fundamental difference between the two boot camps?

I will miss Mobile Home Millions 6 because I’ll be here reading Deals on Wheels…this time. From here I’ll form my plan.

Your encouragment and recommendations are always welcome…thanks once more!

Doug


#7

Steve,

Thanks - this is an excellent outline and great bullet-point writing in a form that even I can understand!

Lonnie’s book is on order. I was also planning to attend Correy and Steve’s boot camp hopefully at the end of May. I see that Tony and Scott have another but I am unfamiliar with it. How do I find them?

I’m wondering if being in CA puts me at a disadvantage when doing LDs due to the typically inflated prices and not being saturated with MHPs?

I may have to expedite my knowledge in MHPs shortly due to having to place some family 1031 funds. I could go the traditional route and buy apartments or a tenant-in-common purchase but I’m seeing more upside in MHPs that I could control myself…but I cannot afford a mistake (who can?) as this is the “family farm”.

Teaching someone else LDs is a given as I typically give much real estate advice gratis to friends and family and happy to do so. I don’t however, know anything (yet) about the MH business but I expect that to change soon with much encouragement from people like yourself.

Encouragement and wisdom always welcome here!

Thanks again,

Doug


#8

Where are you at in CA? I have done some deals in other states and I live in Paso Robles, CA


#9

I’m in Orange County.

I’d be very interested in hearing your experiences and how you source and manage your out-of-state deals.

Thanks,

Doug


#10

Rick,

I have been working in the MH industry with a dealer in the LA area for several years now and after reading Lonnie’s books I have “seen the light”. I know you are a park owner but do you have any experience with LD’s in the Southern California area or are you familiar with anyone who currently is doing them? They are a bit of a different animal around here and some insight and the ability to bounce ideas off someone else would be helpful.

Thanks -