Posted by Rob Ricker on September 22, 2003 at 20:22:23:
IF you can negotiate a $80-85K price on a $100K condo, how about putting 20% down (or less if possible) and getting a purchase loan for the rest. It’s still all cash for the seller and makes no difference to them. Either way, they get $80-85K. You would have to pay the title company, appraiser, etc. TWICE if you buy with cash, then re-finance. That’s spendable money wasted. Just My Opinion
150K Cash to Invest**** Looking for Opinions*** - Posted by JimFitz
Posted by JimFitz on September 22, 2003 at 19:26:16:
Hi,
My Brother and I have an LLC and 150k in cash to invest. We are looking at a few ideas but need some advice. We have read many books, but are a little nervous on our first deal.
I want to buy a condo in the 100k range (new jersey is expensive). I feel with an all cash deal we can get a good price maybe 80k - 85k. I then want to turn around and refinace for 90% of the value, get my cash back and go on to another unit in the same manner. I would then look to get three or four condos this way, and rent them out.
Is this a good idea?
Posted by andyofindy on September 23, 2003 at 07:18:41:
Hi. If you have 150K to invest, here’s what I would do: For now, I would stick 125K of the money in a conservative type of investment, 15K toward more risky types of investing, and 10K towards your real estate investing education and start up.
Regarding the 15K of “riskier” types of investing, if you’ll email me, I will give you info that helped a friend’s brother turn $2850 into over $150K within 6 months, with no prior experience.
Regarding the 10K toward your real estate education, I can also direct you to someone who you’ve probably never heard of who has a system for earning $120K a year in real estate from only 20 minutes a day on the phone to tie up the properties. This guy is one of those genuinely caring people who really does look out for your best interest, and truly gets excited when you succeed with your first deal. He’s there to help you every step of the way. By the way, it won’t cost you the 10K I mentioned, but I thought it sounded like a nice number to begin your RE education, because frankly, you don’t even need that much.
I hope this helps, and feel free to email me for more info!
Andy
Re: 150K Cash to Invest - Posted by Brian,WI
Posted by Brian,WI on September 22, 2003 at 23:22:10:
Jim,
Being in the same boat and having heard this recently, it may interest you.
If you can invest in real estate WITH OUT cash, you can do it WITH cash.
I had just done a cash deal where I bought the house for cash, using my own, when I heard this. It was a wake-up call. Yeah it’s nice to have the money, but don’t you think it would be great if you can do it with out it?
Now go get a deal with out using your money!
Good luck
Brian,WI
opinion - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 22, 2003 at 21:40:44:
Jim Fitz–(NJ)----------------
Maybe.
You must do a cash flow analysis, whereby you total up all expected expenses of owning the property, including the property owner’s association dues. Then you have find out the rental value of the properties. Compare the two figures. If you are not making at least $100 pre-tax cash flow, after expenses, I’d suggest you probably do not want to buy the property, unless you are confident of good appreciation over the next few years to make up for the lack of good cash flow.
Have you read my post for beginners? If not, I recommend you put “beginners success” into the search function at the top of this main board of this CREONLINE.COM website.
Good InvestingRon Starr**