Posted by Ron (MD) on July 03, 2001 at 10:45:10:
…start with $200,000.
I do rehabs and have a lot of capital at risk at any one time. But, I’ve been doing it for over three years and have a real good idea of what I’m doing.
Also, despite the amount of money I have tied up in REI, I’m conservative by nature. It gives me the shivers to hear someone say he’s borrowed $200k and wants to use it as seed money to borrow even more, but isn’t sure for what specific purpose.
As the lead-in suggests, this is a business where you can make…or lose, a lot of money. Be sure you know what you’re doing before you find yourself at the wrong end of the old joke I paraphrased.