Find a few deals where you put the money in and get it all back out, never touching the principle. Maybe a deal where you borrow hard money for the purchase and use the 12k to fixup and market, and then retail or sale with owner financing, just make sure you get your money out so you can continue investing until you learn how to use OPM.
You could create at least 4 Lonnie Deals, and about 40k in paper, and 900/month income since your in a position to leave the money running you could probably buy antoher Mh every 3 months or so with the cashflow.
Some folks are gonna say leave your money parked until you get more knowledge but I promise if you put your money on the line the knowledge will come fast.
Just pay very close attention to getting the money back or at least having very high cash on cash returns.
I coming into $12,000 soon and I’m not sure what to do with it. I have no experience in real estate investing but I’m very interested in learning. I’ve attended my local REIA and I can’t get enough of this site. I would save $250 per month if I pay off my car($7,800 owed). I live in an apartment and my credit is pretty bad. No foreclosures, bankruptcies or repos but a few charge-offs from five years ago and some slow pays. I’m in the process of cleaning up my credit but I am totally at a loss. If I found a couple of notes…(after doing my due diligence of course) I could use the cash flow to pay bills. Or maybe tax liens are the way to go…I don’t know. It’s just that a person like me doesn’t come into that kind of money everyday and I don’t want to blow it. According to Robert Kiyosaki in “Rich Dad Poor Dad” I should increase my assets so I would like to use the money for that purpose. I’ll probably just park it in a money market fund until I educate myself in a particular area. What do you experts think?
Re: A small windfall…what should I do? (long) - Posted by PeteH(NYC)
Posted by PeteH(NYC) on June 17, 2000 at 23:42:43:
I’d think Lonnie deals would be the most economical and highest-yield route to travel. Haunt the mobile homes board, buy Lonnie’s books (they’re CHEAP!), and give some serious thought to the October weekend in Atlanta. Lots of good folks here to talk you through any deals you stumble across.