Doing Lonnie deals with traditionalhomes?

[Micahel Lorent]

The Lonnie deal concept seems interesting to me, but couldn't it be applied to a traditional home?

I mean, let's say you bought a home wholesale, or bought a fixer upper home at a good price. Then you rehab it.

But when you sell it, what if you offered financing? The same concept applies as the Lonnie deals: find people who want to buy a home and tell them you're more flexible than a bank and offer financing.

Let's say you bought a home for $65000, then put $20000 into rehabbing it. So let's say that's $85000 invested in the home.

Let's say you want to sell it for $120000
You could put an offer of 10% down, and the rest financed at 3% interest across 240 months

So you get the $12K down, and then the rest would go as follows

They finance $108,000 at 3% interest across 240 months (20 years)

That's $108,000 * 0.03 * 20

Or $64,800 interest, so a total of $172,800 in payments across 240 months at $720 per month for the buyer.

The pros would be that this is $720 of pure cash flow (since you aren't a landlord), and you'd make a very nice profit in total

So is this a feasible idea?

And what about regular Lonnie deals on mobiles? I've been reading alot about them, and they seem like the right thing to get into for a starting investor (I did want to get into SFH's a while ago but I'm still not sure where to begin); the most confusing thing in all of this is the processes of going through everything.

I'm not sure how the whole process goes for buying a home, since I don't own my own home (I rent a townhouse at a gated community); what happens when you want to buy a home?

Thanks for the help!