Little Capital to start on - Posted by Andy

import · October 15, 2003, 9:14am

Posted by andy on October 15, 2003 at 10:11:47:

I’m reading DOW but have not finished yet. I’l see what I can find in the archives as well. Thanks

import · October 15, 2003, 9:14am

Posted by Andy on October 15, 2003 at 09:14:56:

I don’t have a lot of capital to work with. Should I get a loan to buy my first hoem or land/home packages? I’m trying to figure out how to get started w/ little capital. If I use 3500 to start and then tie up that money buy financing how do I purchase my next. Won’t I run into problems trying to get financing from a bank for an old mobile home?

import · October 16, 2003, 11:17am

Re: Little Capital to start on - Posted by Al(Wi)

Posted by Al(Wi) on October 16, 2003 at 11:17:09:

I read a post on this board several months ago where someone mentoned an unknown author coached his pupils to limit their search to ‘out of state’ owners. They may be paying lot rent, and may GIVE YOU the mobile to 1) get out from under the lot rent and 2) protect their credit rating.
They may be harder than other deals to find, but it seems to be a good strategy in getting into the business without a cash outlay. Protect your cash for the unexpected expenses the other posters are talking about.

import · October 16, 2003, 10:30am

Re: Little Capital to start on - Posted by Don-NY

Posted by Don-NY on October 16, 2003 at 10:30:43:

Try to keep as much of your own money out of the deals as you can. You need a capital reserve fund for those times that expenses exceed income. In this business they will happen and you don’t want to be up against a time deadline by not having operating capital. We (my Wife and I) started without putting any of our own money in the first two deals and have done 7 deals in the last 15 months. Now go out and look at homes and have at least one tied up with an option in the next ten days.

import · October 15, 2003, 9:38am

Re: Little Capital to start on - Posted by Marty (MO)

Posted by Marty (MO) on October 15, 2003 at 09:38:25:

Andy-
What kind of research have you done and where are you located? To me, $3500 is more than enough to start on. Read the archives for posts by Lyal, Doc, KenS, and others for clear ideas on this. Also, read DOW and Jimmy Napier’s debt book. We started in April with none of our own money and have $800 positive cash flow by following these steps.
Good luck,
Marty