Posted by ski on August 12, 2005 at 19:12:59:
Another possibility is to loan it out with say a 15% interest rate with a few points at closing, balloon of 1 year with a 6 month prepayment penalty all secured by a 1st lein mortgage. In the mean time you can have time to decide what you really want to do with the funds.
What would you do with $50,000? - Posted by MS-Utah
Posted by MS-Utah on August 12, 2005 at 10:08:12:
Hello,
I have saved up enough money to be able to make cash offers on cheap properties. I am considering checking the county for inexpensive condos that are owned free and clear, or have small mortgages. I have thought about mailing these owners a letter and making low offers stating that I can close in a day or two. The plan would be to flip these properties and make 10-15k and then do it over and over to build up more cash reserves. I love reading this board and would appreciate any insight into what you would do with $50,000. By the way-I have a full time job which more than sustains my family. I just want to grow this savings as quickly as possible. Thanks-Matt
Give it to Joe Kaiser … - Posted by Redline
Posted by Redline on August 14, 2005 at 24:45:38:
and beg him to spend two weeks with me.
YAH!
RL
Re: What would you do with $50,000? - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on August 12, 2005 at 12:27:30:
The plan is generally sound.
I would expect that you make your money over a short about of time so the market for condos vs. SFR is not much of a factor (many times condos are considered less desirable then a SFR).
Break out some of the funds for marketing. Create some budgets so you can track the performance of the marketing and refine things as you go along to see what works best.
Always have a bit of a contingency fund as buying for cash still has some minor holding costs.
You should also get the word out to local investors as they may have a deal they can flip to you which will work given your model.
John Corey
Chelsea Private Equity LLC
PS. I will send you an email about a marketing idea I use in my local market that might apply to your market.
Re: What would you do with $50,000? - Posted by Dons
Posted by Dons on August 12, 2005 at 12:25:03:
I own several condos. They can work if they are in a high enough rent area, otherwise the HOA dues can eat up the positive cash flow.
Another thing to consider is the fact that condos are difficult to sell unless they are in a really hot market. That’s why quick flipping doesn’t always happen with condos.
That said, Matt you are on the right track. Cash talks, and single family homes should be a lot easier to sell. What part of Utah? The area around Clinton and Roy are booming, and there is Hill Air Force Base which gives a constantly changing group of tenants.
To check rental prices in that area go to the Ogeden Standard-Examiner’s classified section. I belive it is online.
Don
Re: What would you do with $50,000? - Posted by dealmaker
Posted by dealmaker on August 12, 2005 at 11:52:51:
Sounds like a plan, I don’t usually like condos, though. Seems like the condo fees are enough to gold plate the exterior every 2-3 years. Why “free and clear”? People in that situation usually aren’t hurting for money. Look for GOOD DEALS, however that may be defined in your area.
In my experience cash talks, LOUDLY. When you tell someone you can close in a week, with no loan, or sale of your home contingency, it really gets their attention. My typical offer is about 50%- 60% of FMV. BTW, that’s not on a rehab, that’s on a ready to go place! All they can do is counter!
dealmaker
Viva Las Vegas!! - Posted by Joe (Oh)
Posted by Joe (Oh) on August 12, 2005 at 15:44:42:
Clackity-Clack-Clack-Clack! I got that HOT hand in the dice game baby girl…not really ;/
Buahaha!
Re: What would you do with $50,000? - Posted by chris
Posted by chris on August 12, 2005 at 15:24:52:
John would you also forward the marketing material to me? I am new and every bit of info I can get helps.