Are Lonnie Deals still a thing?

[Hannah Morris]

Are Lonnie deals still a thing? After watching Bigger podcast's episode with Amanda Cruise where she talked about starting off doing Lonnie deals. This conversation sparked my interest and I begun to do independent research. In the episode, Amanda says she started doing “Lonnie Deals” where she would seller-finance mobile homes to local buyers. 

I was able to post a family friend's mobile home on Facebook marketplace and craigslist, after one day, we had over 50 messages. Many people are going to come see it this weekend for a showing. That being said, what's the next step? I understand we are supposed to do our due diligence after the The SAFE Act in selecting a proper buyer. Once selecting a buyer, we need to have a promissory note written up and take a downpayment from the buyer.

From what I understand, it is "easy" to sell a promissory note for full cash. Does anyone have experience with this? Also thoughts on Lonnie deals?? We have received tremendous support so far and many stories about how this seller finance can potentially help their family.

[Rachel H.]

@Hannah Morris I've known others who have done both - bought and sold promissory notes. Those who do it are already mobile home investors themselves. When selling, sometimes they just need the extra cash. On the buying end, those who buy try to get some type of discount when purchasing these promissory notes. It all depends on the goals of each investor. 

Regarding selling on owner financing, if you have concerns you may want to look into working with a licensed mortgage originator. There are investors and even parks who work with them. You may want to talk to some people in the business in your area (i.e. park managers, mobile home dealers, etc) to get some referrals. 

Hope that helps!