I read a very cool and courageous post yesterday from Tony and I would like to explore it a bit. excerpt from Tony’s post:
Many times we reflect back upon past recessions and the great depression to see if we can garner some nugget of information that will lead us to safety now. Some among us are treading water, some are sinking, some are prospering and some are wondering what the heck to do.
Some seek to capitalize on cycles in different asset classes, others hold true to their long term investments. Each has arguments that are sound, just and appealing but can they all be right or all be wrong?
These are confusing times and because there is so much in transition in the macro economy there are fewer easy or obvious answers for me at least. I find that I go to bed most nights signing off with the words
Greg, wives are often good advisors, especially when it concerns economics and finances. I am in total agreement with Mrs. Mead. Whenever I am uncertain or just confused, I receive the same advice as you do, and it is always helpful. I have not been involved in any Lonnie deal, and I am very reluctant to be a lender during these uncertain times. Nevertheless, the dealers I know in Texas are active and doing very well. When I recently renewed my concealed hand gun license, the instructors emphasized the safe act:
Credit shot - - - check
Losing property to foreclosure/deed-in-lieu - - - check
Wife to tell me what to do - - - check
Head up my ass and wondering what the hell to do next - - - check
I have a good stable of land/home rentals, strong rental market, tens of thousands in business and personal debt, and a withering note portfolio.
My desire (of course) is to get back to doing a few Lonnie Deals to replace the income; the love of my life says I should use my meager profits to pay down debt, idea being to reduce monthly outgo by $300 versus increase income by $300.
It’s a battle in my head that will not resolve.
I haven’t posted here for months (or more?) but Greg’s recent return to the living has given me a little hope. I miss ya bro’!
Good to hear from you also. You’ve seen firsthand my small operation here in FL and I feel your pain. I’m going the income replacement route. A friend near me (Tampa) has added 23 LDs since February. Average lease payment? 202 dollars per month…WOW. 4K per month in new income.
I went out Friday with laptop and wireless printer and hit 5 MHPs. 3 were partially empty due to repos taken out the past 5 years and natural attrition. They were eager to talk and talk they did. The days of dealerships reserving empty lots with lot rental paid and/or spiffs is way over.There were 16 homes for sale in these 3 Parks and ALL for sale for cash. None of the three MHP owners were willing to waive lot rent while I sold the homes ala LDs so i left a card and walked. The other 2 were REIT owned and I gleaned a useful tidbit…One had REDUCED lot rent and credit score needed to move there. The other knew me from pulling repos out and asked me to leave and I left.
This single day was worth the cost,40 in gas and 9 hours as it helped me gel mentally what I REQUIRE:
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A Park that will waive lot rent during sales of homes.
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Allow and be eager to let anyone in if they have stale jobs and no felony arrests fo the past 7 years.
3.Truly understand and aid me every step of the L/D process.
- Sign a non compete agreement so my lookie loos don’t get jacked.
Tough requirements? Don’t think so my risk is partly deflected and they get lot rent. Some of these homes have been empty for 3 years or more.
I haven’t found the perfect Park yet but I will and it won’t be Corporate owned probably. That will slim down my stops.
I will find the right Park and have planted seeds in three MHPs that need my skills…who knows how it will all turn out but I can tell you now they need me more than I need them.
As an aside all three would allow me to asume lot rent without credit chrck or any app and assume sales (all cash) of existing for sale inventory LMAO.
I get bored easy and am terrible golfer so this works for me.
Greg