Re: Really Need Some Expert Advice--newbie With Funds
Hi all--
over the past few weeks ive been reading these posts and cannot believe the wealth of info i have found--its been almost overwhelming.
Here is my deal--i am a newbie to this business but am ready to start working. My scenario is: I have access to about 25k cash working capital, but my credit score is low (just around 600 but moving up as all debts have been paid). I currently rent the house I live in and do not want to do that anymore. My wife and i want to take that 25k and buy ourselves a house to live in and another to "flip." For the one for us to live in, we plan to do capital gains on it by improving upon it and living in it for at least two years then selling. For the one to flip, we are not so sure what to do. All I know is, I am ready to put myself and my 25k to work for me, and I guess what I am asking you all is, what do you recommend I do as my best course of action...keep in mind i have unlimited time, am somewhat handy, and have easy access to lots of contractors in my area (NW colorado) for the work I couldnt do myself.
Thank you all very much and regards,
Ben Blonder
" Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself."
William Faulkner
I would suggest, getting all of your cash back at closing. Set up the deal so that any cash you have to outlay you will get returned, this will build up cash reserves in case your tenant doesnt pay. If he does pay you have money for the next deal. You may want to make a deal on the house you live in now. Save yourself moving expenses. Or get a duplex, and live in 1/2 of it.
From what you have written, it sounds like you know enough to get started. If you havent already looked into it, you may want to do some research on Land Trusts, Self directed IRA's , etc. So that you can direct the money properly, and cover yourself.
Happy Hunting,
Kyle