Real Estate Investor · Houston, TX · Member since 2010 · 122 posts · 126 votes
16y
You don't need to waste money on courses & books right now. Use this forum as your knowledge "bank" because it's free and you have a limited budget. Get a "We buy houses" type of website (a template is cheap - $30/mo. at most) and use a portion of your available funds to do PPC marketing to drive traffic to the site. Once you get leads, get them under contract and wholesale them. I won't go into detail on how the whole process works because it's been described in detail countless times on this site. Do a search if you need more info on the process.
Make the most of the available funds you do have. $2000 may not be much to most folks, but it's definitely enough for you to get started with.
That's the plan of attack I'd use in your situation...
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
16y
Check out the mobile home invesing forum here on BP. In particular look for Terry Drake's postings. He has a knack for getting them cheap. Also look at John Fedro's blog.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
16y
The basic concept of a Lonnie deal is this: You buy a mobile home in a park for very cheap. You can do this, because it can cost someone so much to move it out of the park and get it setup somewhere else. Often they just want to be rid of it and to stop paying lot rent. You solve their problem with your cash offer.
Then you sell it for a down payment and monthly payments for a substantial margin. Many caveats, but one is to make sure park management will let you do this.
I highly recommend "Deals on Wheels" by Lonnie Scruggs.
I just got into doing mobile home investing, bought two for $4,500. Sold them for $4,500 a piece ($500 down payment, around $150 a month in payments). If they make all of their payments I should collect over $9,000 in two and a half years.
I'm sure this is something that you could replicate with $2000 or less in your area. I also recommend the books by Lonnie Scruggs and reading the posts in the mobile home investing section of bigger pockets.
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
In reading through the threads, there is one thing I'm missing. Are you trying to start full time in real estate investing? I would encourage you to set aside the $2K, spend time learning at least the basics while working a full time job. While you are learning you can build that 2K a bit and have something more to invest in some of the suggestions above.
It is wonderful to see you wanting to jump into real estate. I can feel your excitement. Many spend to much time analyzing deals and fail to act. I think there is a happy medium. You want to know the pitfalls that exist and how to avoid them so that you don't make costly mistakes. With 2000 you have little to make mistakes with. Take some time to learn and ask questions then act.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
This is not meant to be disparaging in any way. I have been there when 2k means everything in the world. I also know that when you're in that position you need to do whatever it takes to simply make more money and the truth is it is usually faster making more money by investing that money into a business you are active in or in some sort of professional licensing that would allow you to bill yourself out at more per hour, increasing your overall leverage. With that kind of income, 2k will go a lot longer into increasing your overall income.
Real estate will swallow up 2k in a blink of an eye.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
16y
Mike
With your $2K you can buy a used mobile home for cash. Do minor cosmetic repairs/cleaning and sell for $5K carrying back a note at 12-15%. Save up another $2K and repeat. Eventualy you will want to work up to owning the mobile home park to also get lot rent income. When your passive income stream surpasses your JOB income - you might even decide to drop out of the daily rat race!
Real Estate Investor · CA · Member since 2009 · 7 posts · 1 vote
16y
Mike,
Yeah, 2,000 is enough to get started.
Though I didn't start with 2,000, I did have a deal that profited pretty good once where I paid about that much.
I located a a flip property in Riverside, Ca. It wasn't in the best condition, but it was ok. There were holes in the walls, carpet needed to be replaced, etc...
The purchase price was only 55,000. The property ARV was around 75,000.
So I gave the seller 1,500 dollars down and we did seller financing. The terms of the agreement were that I would make NO payments on the loan until year 2. Mainly because I was going to be working on the property and paying the space rent (Mobile homes have space rent you need to pay to the park) during this time. She agreed to it. Heck, she was just glad someone was taking care of her headache.
So we closed the seller finance loan and the property belonged to me.
I immediately rented the property out for 545 dollars (A COMPLETE STEAL.. market rents were 1,400)
The 545 covered the space rent, so at least I wasnt out of pocket per month.
And one of the stipulations with my new tenants were that BECAUSE I was giving them a seriously reduced rent, they would help me repair the property.
The tenants painted, fixed the holes in the drywall, replaced what needed to be replaced, etc..
The whole process to about 7 months.
When the property was ready, I put it on the market and sold it for 70,000.
After everything was said and done, I pocketed around 13,000 after agent fees and misc expenses.
Not a bad way to turn 1,500 bucks into 13,000 in about 7 months.
The trick is to find the sellers that own property free and clear and are usually out of state so they can't actively manage their investments. Well, at least that's what I did.
Hope this helps
It's a lot of work, but 1) you learn A LOT and 2) it's a way to get your foot in the door.
Bryan
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
16y
Buy a MH for $2K cash - sell for 4-5K taking back a note for 12-15%. You now have what is referred to as "multiple streams of income". You have income from your job and income from the note you carried back! Save another $2K and do it again. When your passive income exceeds your active income perhaps it would be a good time to say good bye to the old JOB!