Not knowing exactly what you want to do, the first thing I would suggest is to sock your $60k away until you learn the ins and outs of the business. Learn to do a deal with no money or very little money. Your $60k is a security blanket that I have seen disappear quickly for other beginners. Once you know the ins and outs of the business and you can make money without money, you will see how to make much more with money.
Now having said all that, I would concentrate on one area at a time. You have absorbed a lot of information from this site, you can’t use it all. Pick one area and get good at it before moving on to another.
I’ve got 60k to work with(better than $600.00 not as good as 200k) and a banker that can’t wait for me to push off, BUT----I can’t decide where best to start so therefore I haven’t! Through vewing the many postings I’ve seen hear I felt like possibly one of you pro’s could give me the clear direction I need from, someone who’s been there, done that, doin it,and is willing to share it. I have been submerged (no kiddin) in the study of SFH’s and REI since Jan I’ve seen and read so much info. that I’ve gotten “brain freeze”. I’ve been in the const. arena for years but it seems a world away from this type of REI. I’ve had some success with new const. and land appreciation, (rt place, rt time). I’m wanting to reduce my time from two other bussinesses and focus more on REI w/SFH’s. My preferance is to avoid the painful “learning curve”. I feel I have good sales and negociation skills and can meet the challanges and obtain the rewards that go with REI. I’m not afraid of risk,( I’ve been in construction for 24 years,that’s risky) but I am calculating with my cash, once I tie it up, I want it working hard and fast. I can make my own offers and list my own properties, but should I? Is a realtor a better way to go, or does it just depend? I’m most interested in flipping properties,but should I resolve myself to the fact that a successful REI program encompasses fsbo,l/o,rentals, ect. Where are my investment $'s likly to work the hardest for me right now, TODAY? I know I have to buy right, but in what price range is better for quick turn? Our real estate market is good (CENTRAL OHIO) and oppertunities many, I’m sure. SO—my $500.00 question for the week is “IF YOU WERE ME”??------- Now what COACH? Can you possibly capsulize a plan based on what I’ve sharred? THANKS ONE MILLION-in advance!!
Re: 60k cash “info. overload” DOER’S & SHAKERS now what?? - Posted by Lonnie Turner
Posted by Lonnie Turner on May 29, 2000 at 22:30:46:
Buy a couple of courses & then start the lead generating campaign wit that cash. Put up bandit signs, classsifieds inn your local papers, direct mail. I would use this money to generate leads for motivated sellers.
David is right, alot of folks subscribe to the Fire!Aim!Ready!theory of investing, they try to do something, anything before figuring out what ii is they need. I am in the process of outlining a basics class that goes over alot of the the thought process you are involved in now. You have considerable construction experience, and say you have been immersed in studying REI since Jan. As David pointed out, and as your experience as a tradesman will tell you, there is a right tool for any job, there are some that weren’t intended fo rthe job but get it done anyway, then there are those that are just flat out the wrong tool period. You have a darn good start on filling up your new toolbox, $60K in cash, a computer, internet access and the URL to this site!
Before you worry about “what to do” in RE, worry about what you need. David pointed out something important, in that we all start from wherever we are RIGHT NOW. We all have different wants, needs, desires, and that is what will dictate what we decide to get inot as far as investing. Do you need cash flow? Are you looking for long term capital growth and apreciation? What is the the market in your area calling for? Land? Houses? Apartments? Mobile Homes? Now that you have been exposed to the creative ideas round here, you need to take a close look around your market, and get to know it. Talk to brokers, agents, and most importantly, seek out other investors in your area. Buy them lunch, dinner, beer, scotch, etc. While you are looking at and figuring out what you need, and what the market needs, you will then begin to figure out what it is you should do. Then you can reach into your tool bag and come up with the ways to swing some deals!
Good Luck
Doug
PS I suggest you read Rich Dad Poor Dad, The Cash Flow Quadrant, and the Millionaire next door if you havent already
What is your plan? Is your plan to create cashflow? Is your plan to Invest part-time full time, or will your other businesses still need attention?
Will you still have income or will this money be generating just more.
Where are you at in your life… and where do you want to be.
I just got through reading Kiyosaki’s third book and it says you need 3 goals. To decide how much it will take for you to be…
Secure
Comfortable
Rich
Investing is a plan… Map your plan and then you’ll know the procedure. RE is just a tool and then there are many specifics tools within RE.
You say your most interested in flipping properties, well develop a plan for marketing for them, getting the m under contract and them flipping them retail or to other Investors.
You might be able to expand the cash into 50 properties that way with a $1000 earnest money on each or so. (I normally put $500 at most if any). If you flipped all the properties and made 5k each, you’d have turned your money into 250k.
David thanks for taking a shot at my loaded question with the limited imformation I gave. I am fairly secure,and comfortable, however I am forever chasing the “carrott”.Rich is word I’ve never had an oppertunity to adjust to, but wealthy and supremely secure, that would be my goal.My real goal is to obtain the most success I can at this time with the tools I have at my disposal. You say you rarely have more than $500.00 in a property. Is your formula to move volume at a lower profit point? What is the maximum per cent you will pay for a property in relationship to it’s fmv? Do you stick primarily with sfh’s? Are you buying from distressed homeowners, forclosures, thru realtors, or all of the above? Are you saying that having 10k, 20k, 50k, ect. isn’t really necessary or of no great benifit for an investor in sfh’s? Thanks, STILL STUCK!!
Read some of Robert Allen’s books (covering the 'little or nothing $down$ concepts). Learn to invest using other people’s money (OPM) thereby hanging onto as much of your own as possible.
Like SCook said, put your $60K aside for safe keeping until you know which direction you want to go.