Best Area Within REI To Take Advantage Of Cash
If someone has a large amount of cash, what area within REI is suited to best take advantage of this situation. E.g. with my limited knowledge I might say 'foreclosures' because often you need to pay cash for them, correct? And that helps limit the competing investor pool.
Thanks for any suggestions and/or examples!
-J
it's not only cash, it's what kind of returns you want as well as your risk tolerance. if you don't want the daily grind, you may buy notes. if you don't mind working you may stick with pre-foreclosures and reos. if you don't mind big risk for big reward, maybe you'll pursue being a (small or bigtime) lender.
think what kind of work you are willing to do and what kind of return would make you smile, then you'll help yourself more. but as you said, having cash onhand DOES weed out a lot of competition!
good luck.
"JonDoe.." A large sum of cash ?!??! I'd like to have that problem today, yet it is the reason I'm a r.e investor.
OK enough said.. by " large sum.." I will use my concept of "large"...and these are the "areas" I would look to ..Hard $$ Lender.. OR.. "Land Developer". Both are challenging investment "fields" with ample opportunties. Having been in, and around, the "breaking ground " phase of construction, the "developer" was the one reaping the most $$ for "his" risks. And I Do Mean Risks.
Regards, mcldavid
thanks for the replies jackman and mcldavid.
yes, jackman, I agree, what kind of rick/return and what kind/amount of work am I willing to do are important factors. BTW, what's a reo(s)? u mean repo?
where can I get an OVERVIEW of what each of these fields entail? I wish these forums had a 'sticky' at the top of each forum where it gave an overview of that business.
Curious, how is it that a lender makes big returns? leverage?
thanks again.
-J[ Edited by JonDoe on Date 01/15/2004 ]
the forums that you should look into for the particulars you asked about would be: building/developer, paper/notes/investing and foreclosures. read thru them and you'll start to see what they are each about.
actually tho, all of them would be a great place to start - including the beginner forum. you don't have to feel funny about asking any types of questions in this forum, people read it often to give helpful advice and information.
oh, and reo stands for Real Estate Owned, this is property that the bank owns - these usually didn't sell at the foreclosure sale. they're often hard to find too, but they're accessible with some research.
as far as lenders, i'm not at all qualified to answer that, but for starters i'd say because they pick what types of deals they work with and set all thier own fees, interest rates, repayment plans and (i'd say) plenty of times, they probably get all that money as well as the property back, when/if the applicant falls delinquent - just to repeat the process again.
Quote:
On 2004-01-15 15:24, JonDoe wrote:
thanks for the replies jackman and mcldavid.
yes, jackman, I agree, what kind of rick/return and what kind/amount of work am I willing to do are important factors. BTW, what's a reo(s)? u mean repo?
where can I get an OVERVIEW of what each of these fields entail? I wish these forums had a 'sticky' at the top of each forum where it gave an overview of that business.
Curious, how is it that a lender makes big returns? leverage?
thanks again.
-J
<font size=-1>[ Edited by JonDoe on Date 01/15/2004 ]</font>