Ohie Lonnie dealers wanted

Anyone in Ohio want to do Lonnie deals in my community?

Just got the rent numbers for April from the current owners and I can see that there will be a number of people looking for a new place to live real soon. Unfortunately, these people have homes to match their payment history—bad. Probably best for me to pull them out and start with better ones.

Is it some sort of truism in this industry that the people who live in the worst homes have the worst payment history? Or is that just my bad luck in this situation?

I close escrow on the 24th and then the fun begins. This place will require a lot of work to get it into good shape and I just don’t have the time or money to both fix it up and look for Lonnie deals. If you do business in eastern Ohio or western Pennsylvania, perhaps we can help each other out.

Thanks.

Rolf

Got some feedback from people on this idea and I want to modify it a little.

Homes are going to have to be moved into the community. I will give you free lot rent until the home sells and put a sign on the adjacent state highway advertising the homes. It will say the usual things like homes for sale, financing available, no banks, etc.

Rolf

Rolf,

You might want to find yourself a local notebuyer. Get the homes in yourself and then sell the notes to cover your expenses on getting repo’d homes in there and moving costs. Your true goal is to get lot rent going, not to make money on the homes.

I suggest you offer to pay moving expenses to any person who moves their own home into your park, and offer free lot rent until sold AND to show the homes of any Lonnie dealer who moves a home in.

If there’s not a Lonnie dealer in your neck of the woods, then you’ll have to either find another way (private investor funds); pay to move the homes in yourself or cultivate a Lonnie dealer- perhaps an enterprising resident of your park. Call the “we buy houses” ads locally to find out who might be a good candidate.

As a Lonnie dealer I would have zero interest in moving a home for a park owner unless it was a very, very sweet deal.

good luck,

Anne

Anne,

Hmmm. This is not as easy as some people make it sound. Funny how it always seems to be that way.

So how does this sound to anyone who is interested in Lonnie deals in east Ohio:

  1. Free lot rent until the home sells.

  2. I or my manager show the home to anyone who wants to see it.

  3. I place advertising (big sign) on the highway.

  4. Share credit report with you.

  5. Grass stays mowed around the home.

  6. On-going work in fixing up the community. It’s actually pretty nice right now and mainly needs just clean up.

I’m still looking for newer homes with vinyl or vertical metal and pitched roofs. Is that unrealistic?

Rolf

You’re getting pretty close, Rolf. I’ve been doing Lonnie deals for about 4 years and have only ever moved ONE home. There’s just no need to. Look at it from a lonnie dealer’s perspective . . . why go to the trouble, hassle & extra expense to move a home when there are PLENTY of GREAT deals to be had and you DON’T have to move them at all?! Seriously, think about that from the lonnie dealer’s perspective. Why would you do it?

Having said that, I plan to be moving some homes around this summer and here’s why:

  1. In my area I get calls from cash buyers in the $10,000-$25,000 range. It seems the demographic that has ready cash is also the demographic that also has farm property or a lake lot they want to move the home to. Given that part of my agreement with the parks I’ve been working with is that I won’t move homes out, I’ve had to turn down cash sales where I would’ve made an instant $5-10,000 profit. So I will be buying homes in parks where the park refuses to work together and making those available to be moved.

  2. I will also be moving some of these homes INTO my “pet” parks to help them fill up empty spaces. This is a good deal for them for obvious reasons. Here’s the MINIMUM I ask in return:

a) no lot rent until sold

b) no lot rent on ANY other home I own in the park until sold, even if it was already there when I bought it. This will allow me to increase the amount of inventory I can hold for sale (and thereby increase my sales volume and cashflow as well) without a great increase in hold costs. These are 300 & 600 space parks so this opens up a lot of other opportunity.

c) It would be great if they were also willing to pay for the move and, in fact, there are several parks here in the KC area offering $5-7,000 to move a home in, and reduced lot rent for a certain time period. I’m not in your area but if I were, given the size of your park, I would prefer to have you pay for the move as opposed to no lot rent on existing homes already in your park that I might buy.

So take your ideas 1-6 above, add a cash move-in incentive and I’d do it! For the right lonnie dealer you could even offer that cash incentive in the form of free lot rent for a year for his buyer and let him collect that directly from the home buyer, in addition to his monthly home payment.

Regards,

Michael

I live in eastern OH I think we should talk. I work with investors I ve done about 30 Lonnie deals

Anthony

Michael,

Umm, I’m not that desperate. In the immediate area, there are several other parks and ALL of them are either full or very close to it. Don’t know why but I’m not complaining. And, once I get my landscaping going, my place is simply prettier than most.

Sounds like you have been able to work out a pretty sweet deal for yourself and I congratulate you on getting it. I think it works best for me to stick with what I have offered for now and see what happens.

Thanks.

Rolf

Rolf,

I hope you didn’t take offense at my ideas. I was only outlining what I’ve worked out (a & b) and what I’ve seen other parks doing ©. It sounds like there is a good demand in your area and once things are spruced up in your park you should get some lots filled. I agree, no need give away more than is needed to accomplish the goal. Again, only ideas.

Regards,

Michael(KCMO)

Rolf you have a good start toward accomplishing what you desire and giving a just a little more to make it work has nothing to do with desperation, it has everything to do with working together for mutual benefit! I’ve had very similar response from most every park owner I’ve meet and I’ve yet to move a home into their parks.

From a Lonnie Dealers point of view it’s going to cost just as much if not more to move and set a home and likely a month in setup time compared to a deal that is ready to go right now. Time, Cost, & Effort eat into a Lonnie dealers reward since there is no equity gain in moving a home into the park.

From a park owners point of view you don’t want to spend the cash to move in a home that someone else is going to make money on… IMHO this is the wrong line of thinking having seen views from both sides of the road! I don’t know what your lot rents are but from the folks I’ve talked to I’m guessing they are around $250 give or take $50, move and setup cost are likely to run about $2500 total in your area if memory serves… Think about it like doing a LD, you invest $2500 to help a LD’er move a home in, they do all the work, and you give them say 90-120 days to setup the home and sell it. YOUR return is $250 / month for at least 10 years on average not counting your equity gain. Not counting the initial holding time this equates to a return of roughly 120% on your investment WITH NO WORK on your part! Not to mention the fact that they are also going to help you keep homes in your park.

There is plenty to go around in this business, I’ve found that by working with people I gain a lot more than I could ever possibly accomplish alone… Ernest wrote a course a while back titled “Get Rich Helping Others”, I took that phrase to heart and it’s amazing what has happened!

Best wishes,

Ryan Needler

or, as I have heard Zig Zigler say,

“You can get anything in life you want, if you help enough other people get what they want.”

Hi Rolf,
I’m in columbus but would love to assist you!

Warmest Regards
Kali

HI. Tried to send you a message but not sure if it went through. I live in China for much of the year, but you can always contact me through my website a www.wheathill.net.

The big Shell cracker plant is under construction and it is only 30 minutes from my place. I’m the closest community to it in OH.