The best way to describe “Making Money with Mobile Homes” by Lonnie Scruggs is that it is “Rich Dad Poor Dad” for mobile homes. Since “Rich Dad Poor Dad” is one of my favorite books, that makes this book one of my favorite books. The most important idea that I learned from “The Cash Flow Quadrant” by Robert Kiyosaki, was the idea of creating an income-producing asset from thin-air. Most of us work for money. We draw a paycheck. But if you can create an income-producing asset from thin air, then you will never have to work for money. An idea of an income-producing asset would be if you wrote a book about your military experiences. All the money that it generated would be in an infinite return. All you would have used was your time to create an asset. In “Making Money with Mobile Homes”, Lonnie shows us exactly how to create incoming-generating assets. The basic jest of his technique is to buy mobile homes for $3,000 to $4,000 and then sell them for $6,000 to $7,000. Now the part that is really interesting is that he does seller-financing for the homes. So instead of getting the increase in price in a one-time payment, he would get like 36-48 payments at a 25-30% interest rate. Since he would only have $2,000 invested but would come out with a total of $8,000 to $9,000, his yield would be like 150%. If you don’t understand this concept read the book. His incoming producing asset would be the note that would be created from the mobile being sold to the buyer over time. Once you get enough of these notes coming in, you will have a passive income for life. His method can be used on anything that people want but can’t afford. Many people are just concerned with the monthly payments, but can’t get a loan from the bank. That is why his technique is so successful. Since his techniques can be used on anything, my 5 takeaways will be focused on the way to create money.
1) Learn to see money everywhere. Most people miss opportunities to create money because they are programmed to work for money. If the money doesn’t come from a paycheck, they don’t see how to create money.
2) Learn to create a return on your money. If you have $20,000 in a savings account, find a way to get $5,000 or so working for you. If you can get a 15-20% return on your $5,000, not only will you have a safety net with the remaining money, but you can also get a great return.
3) Understand human nature. Most people want an affordable place to live in. They want to pay the mortgage and live quietly and comfortably. If you know that, you can leverage that to make amazing deals. Many people cannot get bank loans. So if you can offer them a low monthly payment, you can use that to increase the yields on your money.
4) Become a people person. One of the books I read states that you will not become rich if you don’t learn to work with people. I find this to be true. I think most people want to buy a home, go to work, and save for retirement. And that is it. There is nothing wrong with that. However, 3% of us will venture forth and create wealth for ourselves and our families. This will require us to work with people.
5) Learn to turn a turd into a stud. Looking at an old mobile home may not seem appealing, but mobile home rents are very close to stick-built homes. However, the purchase prices are much lower. You can create a fortune by looking at smaller homes and leveraging them. Don’t always look at the shiniest items. You will pay for that shine.
This book is a must-read for people who want to create wealth. Once you learn how to create incoming-producing assets out of thin air, you will not need to work a job to generate income. Working a job can have its own benefits, but if you are working just for a paycheck, there are better ways to spend your time. However, you need to learn how to create wealth. For most people, it doesn’t come naturally. The best thing about this book is that it gives actual case studies on creating wealth. As you read this book, you can start to imagine what scenarios will work in your town. Anything is possible, with the right self-education and work ethic. I highly recommend this book.
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https://www.pinterest.com/kingmarine/military-family-investing/Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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