Newbie Query About My $$ And What To Do
Have been evesdropping on these boards for a bit of time and have been reading lots of books on the subject of REI. Want to get involved in either rentals or rehabs (hubby and I are both handy).
We currently live in north/central New Jersey and consider the full state (except too far south) our playing field.
Here's our financial situation:
Have $140,000 in equity in our existing family home (purchased 8 months ago).
Have $15-$20k in cash in the bank that we'd be willing to play with to get in on the REI game. Also have $40k in credit with credit cards we can tap if we want to. Our overall credit score is solid.
I'd be interested in hearing from seasoned REI investors as to what they would do with this type of available funds to start generating more money!
Hubby works full time in NYC (and keeps saying he's "tired of working for the man." I'm working part-time at my company while I raise my 1-year old son. We're in our mid-30's and both feeling we're just too darn smart to be working for other people. Not interested in being working stiffs forever.
I appreciate your advice in advance!
Lisa 
lisafreen,
by looking at your other posting I'd say..
''Do What The Big Boys Are Doing"
Here's a suggestion: you say " you're both handy" well line up a contractor for rehab bids, use "his" numbers as a guide, go look at the "HUD" listing, find something, now ( why use your $) approach a hard money lender for a "rehab / construction " loan ..of course you have read the postings here about how to structure the loan, right ?Then either you both fix it, or hire the contractor. Use your "solid" credit to open the "door" ...sell and DO IT again !
Now this is what I'm doing. After reading "some" postings here I found some mistakes in my first purchase, NOT to be repeated, so I learn and grow on. The Best TO You Two, mcldavid
[addsig]
Dear Lisa,
A one year old? Now thats full time. How do you handle that. If you can both work and have a one year old, I will not worry about you. You are destined for success.Well, you certainly have earned it.
I would not run the HUD's in your area might be a little too rough. I might try a few Preforeclosures.
Conform the front of the structures and spend any spare change in bathrooms and kitchens. Continue one by one until you double your inhouse cash, then start moving up.
Watch your values and get a realtor to expose to you MLS listings and those that did not sell. Watch your time on listing in the price range you are active in.
Just keep on the way you are. Sounds perfect. At $80,000 in house cash, then maybe a baby assemblage.
Cheers Lucius
Hello:
Go to the "Shop" section click on "consignment". Buy Ron Legrands
three cash flow modules. Study them for a month. Then take a HELOC on your existing home and start in the game:
-Retail
-Wholesale
-Lease Option
Best Riches,
Jeffrey Adam
That should be
-FSBO
-Retail/Wholesale
-Lease Option
And I agree
I was giving him advice based on what I do:
-Retail properties to end users.
-Wholesale properties to other investors
-Lease option properties to end users
Jeffrey Adam
[addsig]
You sad it right Jeff. Neb did not understand you well and to be really exact, the courses go in the following order:
- Wholesale/Retail
- For Sale By Owner
- Lease Option
Does it really meter? Cash rules!
Vanity - .... is not a joke !