Re: the resession got me too - Posted by JFinke KC
Posted by JFinke KC on January 30, 2002 at 14:05:51:
First of all, I would NOT get an equity loan as previously recommended. Wihtout a steady income, an extra installment loan could put a strain on your cashflow. However, You may want to look into an equity based line of credit for your REI needs, although, you would be better off with an unsecured line-of-credit. You do not want to jepordize your own home.
I was in a similar situation about a year ago. At the time, I had just started educating myself in REI and didn’t feel I was properly equiped to just jump in. I got another job and have been investing part time until I can build enough cashflow to quit. This is not a suggestion, just an expirience.
If I knew then what I know now, things would have been very different. I would have began advertising for motivated sellers and concentrated on flipping and contract assignments as well as taking properties subject to their existing financing and lease-optioning as an exit strategy. To me, these strategies seem the best for generating instant cash with little out of pocket cost.
Your best bet in REI is to learn as much as possible as quickly as possible. Even if you have some savings, try to avoid using your own money. Try to get together with other investors in your area. Maybe you can form some type of partnership.
I wish you the best of luck,