Posted by Steve-Atl on September 13, 2001 at 10:31:37:
Put the $100k in a safe place. Your first investment should be in your REI education. Read everything on this site and purchase some in-depth courses. Learn all you can about subject to, lease options, flipping, etc. Then crank up your marketing to get motivated sellers to call you. That’s much better than focusing on HUDs or calling ads in the paper. You’ll quickly realize that you don’t have to put up much of your $100k to aquire real estate.
I’m new here and I"d really like some advice.
I’m about to sell my business, which should net me around 100k.
I’ll have no career to fall back on. I can get by on about $750 a week, but at that pace my 100K will run out pretty fast if I dont’ do something constructive with it, so I need to put this money to work to create a cash flow.
What would be a good way to get going for someone new to real estate investing, with $100k to get things started?
I’m not exactly new, in the sense that I already own two rental properties and probably have about $125,000 of equity between the two houses. I also picked up a HUD property a few years ago and sold it for about a $15,000 profit in 4 months. That was nice, but I dont’ think it’s easily repeatable.
Some of my initial thoughts are to focus on HUD properties, look for motivated sellers through newspaper ads, or look at trustees sales.
Any advice?
Posted by Jim FL on September 13, 2001 at 17:02:40:
Tim,
Okay, you’ll have $100k to begin with.
Great! Now what?
I know many of us here at one point have said, “oh, the things I could do with a spare $100k.”
and frankly, after having been at this game for a few short years, my plans for such “Spare cash” have certainly changed.
So, here is what I suggest you do.
Take that $100k, deposit $95k in the bank, maybe a savings account for some, “just in case” money, and living expenses, and the majority of it in a C.D.
Then, take the other $5k, and do this
Fill your car with Gas
Stock up on grocery’s, and supplies for your home.
Get plenty of paper and ink for your computer printer.
Sit down in front of the computer and go online to read ALL you can on ivesting.
Read EVERYTHING here, and do some web searches for other sites as well.
(this will kill your first few weeks of being at home, hence the stocking up on supplies.)
Take a day off, catch up on sleep
goto the library and check out as many books as you can on Real Estate Investing, read them ALL
Now you should have a pretty good clue as to what technique interests you the most, so get a course or two on the subject.
Study the courses, and come here to CRE to post questions.
When you feel comfortable that you FULLY understand a technique, and are ready to apply it…go on to the next step…its a BIG one!
MARKETING!
Shout to the world that “Tim is here to buy HOUSES!” and here is where you can reach him.
Take whatever is left of the $5k, and use it to buy business cards, signs, flyers, mailers, web page, ads in as many papers as you can get.
Get your message in front of as many people as you can, and the calls will follow.
10.Set up an office, a space in your home that is ONLY for your REI business.
Get a phone line to use on the marketing material, and an answering system to take calls when you are away.
When sellers call, talk to them, as described in many posts here, and buy some houses.
You will see that you don’t need CASH to buy houses and create cash flow.
But, there may be “deals” that come along where a few thousand is needed to get into it.
Use “some” of your remaining $95k for that.
Just be sure to have an exit plan for the property to get these funds back out RIGHT AWAY!
And suddenly, your $100k will have grown to considerably more.
Re: have some cash, where do I start? - Posted by Ronald * Starr
Posted by Ronald * Starr on September 13, 2001 at 14:33:51:
Tim---------------------
I too recommend JohnBoy’s posts on getting started,. Beside his 50774 post, there is an earlier one on the Board2=“carleton sheets” forum number 17626. Also on getting started is Adam Kings’ recent post at 49299 on this main bulletinboard. I have a couple I posted also: on this main board at arc_2001/arc_28/28125 and my followup at arc_2001/arc_38/38056 I believe.
I would suggest that you get a bank llne of credit on the income properties if possible and maybe one on your own home.
There are a lot of different approaches to investing. That is why my post suggests that you need to figure out what approach appeals to you. Like you, I have longer-term hold rental properties. But, if you need to support yourself, you probably need to generate some cash. Your $100K should last you about 3 years, if you don’t have to use it for living expenses.
You should be able to start making money within 6 to 8 months, perhaps substantially sooner than that depending upon what approach you take.