Often students will come to my Rich Dad Education Elite Training Mobile Home Course having heard about the concept of the “Lonnie Deal” with either no information or the wrong information. Since this is an approach I actually follow in my own business model and teach in my course, I’d like to give you a brief overview.
First of all, the “Lonnie” part of the descriptor is referring to long time mobile home investor, author and trainer, Lonnie Scruggs, who is credited with making this approach more “mainstream” and has been very successful applying it. He also happens to be the individual who completely changed my stubborn stance from “No way would I ever think about owning a mobile home, much less a mobile home park” to “How quickly can I buy my next little metal box that spits out CASH?”
The technique, although quite flexible and applicable in a variety of settings, typically involves purchasing a mobile home in a mobile home park, possibly doing some minor rehab to get it into move-in condition, and then reselling it to an owner occupant that would much rather buy a home to live in than rent. The key to a “Lonnie Deal” is that the seller also finances the purchase of the home. When I say “finance the property,” I mean that the investor will become the bank/lender, and allow the buyer to make monthly payments until the home is paid off.
In my Rich Dad Education Elite Training Course, we will discuss how to turn a little metal box into a box that spits out CASH. We cover what paperwork to utilize, how to secure your interest and protect yourself, how to explain the approach to the buyer and the park management/ownership, what rate and terms make the most sense, and how to create a win/win and often a home ownership opportunity for someone that never thought they would own anything…much less their own home.
Because it can be very difficult to get bank financing on a mobile home, there is a huge demand for sellers who will finance the properties for their buyers. For example, while it may be difficult to sell a particular mobile home for $6000 in cash, it may be relatively easy to sell that exact same mobile home for $10,000 if it is financed. Often, buyers who can’t pay cash for the home don’t seem to have very many options.
A “typical” (if there is such a thing) Lonnie Deal involves buying a mobile home for anywhere from $1,000 to $10,000, possibly doing minor rehab (don’t worry, we will cover this in the Mobile Home Course too) and then reselling for often double the total cost to the investor, with owner financing and payments that make it affordable for the buyer and acceptable to the investor. If you run the numbers, you’ll find that Lonnie Deals provide a tremendous return on investment, with yields often over 100%!
For those of you that have never considered mobile home investing as a possibility but are looking for a way to get started in your “cash flow career” for very little capital and incredible returns, consider the Mobile Home Real Estate Course as an option. For those of you that are ready to own a “cash flow business” that can be structured to run itself (i.e. true passive income) consider taking the Rich Dad Education Elite Training Mobile Home Course. And for those of you that are simply curious about the industry or some of what I call my “healthy skeptics” come see me and let’s see if I can be successful at adjusting your mindset, like Lonnie changed mine. I look forward to seeing you in the Rich Dad Education Elite Training Mobile Home course!
Rich Dad Education Elite Mobile Home Trainer