Posted by JohnBoy on October 17, 2001 at 10:23:10:
If it were me knowing what I know now, I would take a couple thousand of that and use it for buying some courses. I’d put the rest in the bank and have myself a nice reserve fund if I needed to use any of it. Then I would focus on finding motivated sellers where you wouldn’t need any money to do deals. If had to I could use some of that to bring a loan current on a deal that I was taking over subject to and then I can replace it with the money I get down from my buyer. I’d focus on building cash flow from doing a lot of deals. Just knowing you have the money sitting in a bank will give you a lot more confidence to get out there and make offers. It seems a lot of people get stuck on this when they have little to no money to start with. For some reason they get hung up on thinking they need money to do this. You don’t, but it sure makes it nice just knowing it’s there if you needed it!
The only time I would use a chunk of that money on a deal is when I knew I would be able to get all back within a short period of time. Like buying a property well below market and being able to sell it quick for a nice profit! Every time you invest your own money into a deal where that money will remain invested for a long term, that’s that much less money you’ll have and eventually it will run out leaving you with no other options but to do deals that didn’t require your own cash!
If you read my post then you know by having that money to start with puts you that much further ahead of the game because you can enjoy the profits you make on deals now since you already have a nice reserve fund on hand!
Of course, if you feel you just need to spend that money then just feel free to send it to me and that will force you to learn how to do deals without needing your own cash!!!
Seriously though, I would educate myself first by getting some courses and then go out and do some deals that don’t require your own money!