My name is Brian Beck and I started a company last year called Capstone Investment Properties LLC. I am an investor with 5 single family homes that are currently on Lease option plans. Last year in July, our area was hit with a huge flood and we all of a sudden had tons of people calling who needed a home fast and inexpensive. I began buying mobile homes and placing these families in the homes. As you can imagine, I ran through my cash pretty quickly.
The returns on these Lonnie Deals were extraordinary so I began marketing the idea to the other investors in our group. I wrote one sales letter for the newsletter that goes to over 400 investors in the area and quickly lined up 22 investors. For a year now, I have been searching out quality mobiles, buying them for the investors, charging a commission and then placing tenant/buyers in the homes for them. I guarantee the people I place in the homes for 3 months, and I pass the investment back to the investor. Average nice mobile home in our area sells for about 5,000 - 8,000 cash.
EXAMPLE: Last month I bought a 1995 Oakwood Single Wide home for 6,000.00. Beautiful 3 bed. 2 bath home with glamour bath in the master bedroom, island in the kitchen, new carpeting, etc. etc. Investor paid me 9,000.00 for it. (I charge a one time upfront commission of 3,000. 1500 buying fee, 1500 selling fee.) I sold the home for 16,900.00 at 13.25% interest. The tenant will pay 300.00/month for 7 years. Worst case scenario is the woman pays on time every month and does exactly what she is supposed to do. In that case, my investor only makes 25,739.15 from his 9,000.00 investment. Breaks down to somewhere around 28% return per year! Good enough, right!
In March I attended Mobile Home Millions V, met a lot of excellent people, and came home with a notebook of ideas. Capstone was making money on the commissions, but my business had no equity. So I switched gears and borrowed money from investors, bought the homes and kept them in Capstone’s name. Capstone currently has nearly 200,000.00 in notes! (Hurray for equity!!)
We now offer both options to investors. If you want to own your own “Lonnie deal” We charge a commission (3,000.00), do everything for you, and hand back the investment. You collect payments and manage the home. We will even manage it for you for a small portion of the monthly payment.(usually 25.00/month)
For passive investors we offer the loan. We ask for any amount. Our smallest loan is currently 2,500.00. Largest 30,000.00. We offer 13% annually on an unsecured loan for five years. We ask for a deferrment of payments for three months from the day you loan us the money. Example: You lend us 10,000.00 on August 1, 2007. Your first payment of 228.00/month hits your account on November 1, 2007. This three month deferral allows us time to purchase homes and not have to repay the loans with money we are borrowing. This option has been a hit with our investors who have Self Directed IRAs.
Anyway, why am I telling you this? We have a new sales letter going out in Octobers issue of our local newsletter and I will be taking on new investors. I thought I’d send this out and see if there are any investors out there who are maybe gun shy about their first “Lonnie deal.” Or who want to invest but don’t have the time to go out and find the deals. Or who have money languishing in an account making less than 13% interest and just want a passive investment making 13%. Maybe mobiles in your area are a lot more expensive. Here’s a chance to get some of the cheapo deals! Email me (palobeck@juno.com) or give me a call if you are interested or have questions. (440) 549-5957 Thanks a lot!!
Post Edited (08-12-07 01:39)