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Lonnie Scruggs Review

Typically, if you want to get involved in Real Estate investing, you need a decent amount of cash to get started. Lonnie Scruggs, through his books "Deals on Wheels" and "Making Money with Mobile Homes," shows you another, much less expensive route to making money iin real estate - by investing in mobile homes.

It may not be as glamorous as buying apartments or condominiums, but the profits are very real. In his book, Lonnie Scruggs shows numerous examples of how you can get a 50% return or better in this industry.

In a typical "Lonnie Deal," you would purchase a mobile home for say, $5000. Then you would sell it for a higher amount, say $8000. Why would people pay you this higher amount? Because you carry the financing. So when you sell the mobile home, instead of getting cash, you receive a note that will pay you over the course of several years. When all is said and done, you can end up making 50% or more using the techniques Lonnie Scruggs teaches.

I have not done "Lonnie Deals" in my area, so I cannot speak from experience, but I did have one major concern after reading the book. Since you are selling to people who can't get traditional financing, there is an above average chance they will default on their payments. Yes, as a last resort, you can probably take back the mobile home, but when you are talking about recovering a $5000 property, legal fees, etc. may well end up costly you a good chunk of that money. And who is to say the mobile home won't be completely trashed when you get it back? The trashing of property happens all the time with foreclosed homes, since many people end up mistreating their homes once they realize they aren't going to be able to keep it.

Despite this, buying and selling mobile homes is attractive since 1) You can get started with much less money than other investments and 2) The returns are quite good. I have found very few books or resources that address mobile home investing, and Lonnie Scruggs' books are a good way to learn more about this business.