cash, what to do with it - Posted by Phillip Baird

Posted by Bud Branstetter on May 04, 2001 at 11:02:34:

When you replace an asset you have to capitalize it. If you repair it then you can expense it. Replacing may cost more than you think. Repairs may be better.

cash, what to do with it - Posted by Phillip Baird

Posted by Phillip Baird on May 03, 2001 at 09:10:04:

Hello all,
I have an interesting dilemna. I recently listed my wife and my first house on the market at 119,950. After paying the realtor, first mortgage and home equity loan I should pocket close to 39,000 tax free (we will own the house two years in just a few weeks, beating the IRS 2 yr. mark). It would be easy to spend every penny of the money paying off debt (car loan, credit cards, computers, etc.). However, I would like to take some of the profit and turn it into a money making investment. Is that smart? Should I just pay off as much debt as possible? I would like to buy my first rehab property and begin my realestate career (and eventually quit my job), but I am undecided as to what I SHOULD do with the cash windfall. Any help will be greatly appreciated.


Re: cash, what to do with it - Posted by Tim Jensen

Posted by Tim Jensen on May 03, 2001 at 20:58:08:


Here is my .02 cents.

The first thing I would do is take 20% of the money and put it in one of those low interest CDs. It is a good idea to have a rainy day fund.

Next, I would pay off the credit card and computer debt. Something tells me that these are high interest rate debt. They NEED to be payed off.

Finally, I would take the rest of the money and try investing. You may want to do a rehab or a flip. Whatever you do, I would invest it.

Good Luck,


Re: cash, what to do with it - Posted by Bud Branstetter

Posted by Bud Branstetter on May 03, 2001 at 16:31:16:

After you get over the embarassment of the faux paux in typing lets get to the serious business. EDUCATE yourself. Do not start rehabbing. Learn how to make money with other peoples money. David Alexander doesn’t rehab and neither do a lot of others. Yet they make money. First thing I would do in your situation is go to the Rising Star program. Get rid of all the roadblocks first. Then go Bill Gatten’s seminar and become a Network member. Free mentoring for the rest of your life from a millionaire. After that if you feel like it you can explore other programs. The few thousand that this takes is worth not paying off the equivalent debt. How’s that for an opinion.

Re: cash, what to do with it - Posted by Bob (Md)

Posted by Bob (Md) on May 03, 2001 at 16:26:46:

Seriously, I’d do whatever gives you the highest return. Putting it in a savings account gives 3%, buying CDs gives 5.5%, paying off a mortgage gives 8% or so (whatever the rate), paying off a car loan gives you 8-15% (depending), paying off a credit card gives 20% or better. Rehabbing (if you use leverage) can give you 100% or more - for instance, you put in $10k of your money and borrow the rest. When you’re finished, you sell and make a $10k profit. Presto - 100% return on investment ($10k becomes $20k). THATs how the rich get richer. Seems to me that I’d worry about getting the 100% return first, then pay off all the other lower interest-rate stuff later.

Don’t spend it, unless you don’t need it. Actually, spend a little bit to celebrate, and put the rest to work. Hint - a weekend at a bed-and-breakfast would be quite nice and set you back $200 or so. Put the other 38,800 little Washingtons to work making more little Washingtons.

Re: cash, what to do with it - Posted by Bob (Md)

Posted by Bob (Md) on May 03, 2001 at 16:17:25:

Um…did you list your wife as an appurtnance, or did you just write her into the space marked “other” down there on the contract with the drapes, ceiling fans, etc.?

Re: cash, what to do with it - Posted by Ronald * Starr

Posted by Ronald * Starr on May 03, 2001 at 15:57:47:


Spend it quick, before it’s all gone.

The wife goes first, the house goes second, then the cash goes. You’ve really got a lot going for you. Or From you.

Good Investing and Good Wife-Selling*********Ron Starr

Re: cash, what to do with it - Posted by srkh

Posted by srkh on May 03, 2001 at 15:20:14:

Your wife comment has led to some hysterical replies.

If I were you I’d delay paying off the debt as long as you feel comfortable with your monthly cash flow. I’d use your money for a couple deals and make some money. Then, when you make some money make it a goal to use your original money to reach your goal of paying off debt. Make your money work for you and I believe that sometimes it’s easier to make money with a bit of money. Just my thoughts!

By the way – I bet you made so much on your sale because of your wife! We wives are VERY valuable and yes we appreciate, just like the house!

Re: cash, what to do with it - Posted by Jen-LA

Posted by Jen-LA on May 03, 2001 at 15:13:58:

Poor thing, only one serious answer so far. Oh well. I would definitely take some of the money and if you want to do a rehab, get a couple of them going with it. You can do that for little or no money out of your pocket (just stick with the smaller ones).

We usually pay down the credit cards with the highest interest rates- or whichever ones are almost payed off, just to get rid of them. I don’t know, but just remember that you can always pay off debt. You won’t always have all that cash that can work for you, and you’re right, those big chunks of money can disappear in a heartbeat.


Forget the debt…get a new wife 1st! NT - Posted by Chenel Moore_Fl

Posted by Chenel Moore_Fl on May 03, 2001 at 14:14:04:


In Case… - Posted by David Alexander

Posted by David Alexander on May 03, 2001 at 12:43:38:

You are like me and just cant type…

Money in Motion is better than killing what it can do, by paying off the debt, at least in my opinion.

But it also depends on how your wired. Some folks can go for it and others we be consumate savers for the rest of their lives. Savers have a tendency to pay off debt first when first starting.

I’m not saying dont pay off debt, just learn to pick and choose when you pay it off… Money should be working for you, not you for it.

Retire the debt and it’s job is done.

David alexander

Re: cash, what to do with it - Posted by JohnBoy

Posted by JohnBoy on May 03, 2001 at 10:13:32:

So, how did you list the wife in the purchase agreement…as personal property or real property? How much of the selling price was for the home and how much of that did you get for the wife? Heck, maybe I’ll put my wife up for sale with the house too!!! How long was the wife and house on the market before finding a buyer? LOL

Re: cash, what to do with it - Posted by Randall_OH

Posted by Randall_OH on May 03, 2001 at 09:48:49:

I never knew that you could list your wife for sale with a Realtor. Once word of this gets around, your Realtor may become the most successful Realtor in the country! LOL

Re: cash, what to do with it - Posted by Justin

Posted by Justin on May 03, 2001 at 16:31:42:

APPRECIATES?!? I don’t know about any of you other guys, but my wife NEVER appreciates anything I do.

Re: cash, what to do with it - Posted by jp

Posted by jp on May 04, 2001 at 18:59:29:

You and Dave Alexander are like two peas in a pod.

Re: cash, what to do with it - Posted by Mike Schmidt (IL)

Posted by Mike Schmidt (IL) on May 03, 2001 at 10:27:26:

Hmmm house that includes a wife…sounds like a major rehabber to me. I think I seen that add in paper.
House for Sale, includes wife
House in fair condition
Wife totally remodeled 2/2
Wife as follows
Includes new front porch
Rear porch needs work
Heating and cooling have no warrenty

better than that… - Posted by Rick

Posted by Rick on May 03, 2001 at 10:00:22:

how do you get a 1st mortgage on the wife?

Re: cash, what to do with it - Posted by Eric (NH)

Posted by Eric (NH) on May 03, 2001 at 19:00:43:

Do you expense or capitalize your wife when she begins to sag and leak?

Eric (NH)

Re: better than that… - Posted by Nate(DC)

Posted by Nate(DC) on May 03, 2001 at 16:02:06:

Or when you really need to get rid of your wife, find someone else to take her subject-to! :slight_smile:


Re: better than that… - Posted by Ronald * Starr

Posted by Ronald * Starr on May 03, 2001 at 14:17:41:

Now we’ll be looking forward to than new couree on

Alternative Financing for Wives

Good Laughing & Good Investing****Ron Starr