What To Do With 60K
Hi, everyone. I'm in Inland empire So Cal. I'm getting 60K from refi. I plan to use this money to invest on RE. I have a friend that specializes in pre-foreclosure. She contacts owners that have one to two weeks before the NTS and buy the property cash. I know I don't have enough for buying anything cash. She is reluctant to teach me how pre-foreclosure deals work because she wants me to invest the 60K in her and promises to give me 25% interest + principle in three months.
Should I invest or buy smaller, cheaper, perhaps out of state properties (not pre-foreclosure) and hold them for appreciation using 60K as downpayment? Any help will be greatly appreciated as I understand this is a big turning point in my financial future and don't want to ruin it. 
Well you could trade the market, my favorite thing to do!!
As for real estate, I would try and use a reasonable ammount on a really strong deal..make your first your best!
As for education, read about 1k worth or articles on all online sites, decide what you like and persue wisely. Buying the cheapest course is not the best move, nor is the most expensive boot camp.
If you research your deal and force yourself to not overpay, then the chance it works out is very high.
GL
I am sure you know the saying about friends and money. I am not saying she is not going to come through for you, BUT, what if something were to happen. Could you stomach a "friend" losing your $60K. If you choose that route, have her walk you through the entire process and give you ALL, and I mean ALL the pro's and con's so that nothing is a surprise. If she is not willing to teach you anything, but is willing to take your money.........
Good Investing,
Jesse
As the old saying goes, "never put all your eggs in the same basket". Use some of that money to do your first deal , you will feel better about it, then do another one.
Prosperous investing,
td
i say find a lender who will let you do 5% down, you will get a higher interest rate, but if you plan to flip the property it won't matter. That way, you won't have all of your eggs in one basket as the other user said. you will also make a lot more money that way if you can get it at a good discount. also, you may know this, but having financing by a lender is also considered cash because the owner gets a check from the lender which is the same. if you do it this way, you can maximize the use of 60k and turn it into 90k or more if you do it right.
[addsig]
Thanks for all your suggestions. I think I will do a couple of pre-foreclosure flips then buy other properties to hold and rent out.
This forum is really great and I appreciate everyone here!
iam new to investing, but i was able to find 2 properties in tulsa,ok for 60k.
one was for 28k that needs about 2k in work, the other was 32k needs 800.00 in work, they both were appraised at 42k each.
if you would like to invest out of state i can help you out here.