Advice Please..

Currently, I am searching for my first investment property. I have $50,000 to invest. Now, should I utilize the full 50 on buying a property? Or, should I set aside some of my funds to start a wholesaling business in conjuntion with buying my first investment property? My reasoning behind entering the wholesale business is to possibly make extra income, while also gaining a better understanding in real estate investing.

Edited: 06/26/2010 at 07:29AM

Ana Hyler

Real Estate Investor · Lincoln, Nebraska

220 posts
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Icon_minipost Mar 09 '09, 03:17 AM

Well... make sure you know your goals before you put any money down for anything. Make sure you set your goals and then your strategy will jump out.
Good luck.

Edited: 06/26/2010 at 07:31AM

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James Hiddle

Real Estate Investor · Altus, Oklahoma

2515 posts
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Icon_minipost Mar 10 '09, 06:37 PM

Hey Mark I can help you but I charge $50,000 for coaching :mrgreen:

Edited: 06/26/2010 at 07:32AM by James Hiddle

Rachel H.

456 posts
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Icon_minipost Mar 10 '09, 11:39 PM

It's best to get your investment goals down on paper first. Also, you want to make sure your personal finances in order before moving forward on any type of investment. Then, you'll need to put in the time to educate yourself on the type of investing you want to pursue. Hope that helps!

Edited: 06/26/2010 at 07:32AM

Nick J.

SFR Investor · Scottsdale, Arizona

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Icon_minipost Mar 10 '09, 11:44 PM

Originally posted by Mr_Investor

Hey Mark I can help you but I charge $50,000 for coaching :mrgreen:

I'll mentor you and guarantee you a completed deal in 1 month for only $49,999.99........BUT WAIT there's more, if you order now I'll throw in this nice shiny BBQ grill..... :mrgreen:

Edited: 06/26/2010 at 07:32AM

Brendan O'Brien

Property Manager · Portsmouth, New Hampshire

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Icon_minipost Mar 11 '09, 12:04 AM

Regardless of what you do - you need to keep some cash back. You might buy that property and then find you need a new furnace two months later - or you have trouble finding a tenant - or...

Edited: 06/26/2010 at 07:32AM

Nicholas

· Jacksonville, Florida

20 posts
20 Influence

Icon_minipost Mar 11 '09, 12:17 AM

I agree with Dan. Try some of the little- to no-cost methods first.

I also agree with Rachel. Make sure your personal finances are in order first. $50K can work very hard for you in eliminating any debt you might have. I didn't start investing (in anything) until I was 100% debt free (with the exception of my mortgage).

I don't see any point in earning 8%, for example, when I'm paying out 12% on a credit card. But 8% makes sense when I only have a 5% mortgage.

I guess the point is just make sure your yield from investing is higher than the interest your paying out on debt every year.

Make sure you save money for marketing, staging, attorneys, etc.

Edited: 06/26/2010 at 07:32AM

Mark M.

Real Estate Investor · Modesto, California

26 posts
141 Influence

Icon_minipost Mar 11 '09, 06:22 AM

My 50k is investment money, it is not my life savings by any means. Also, I have zero debt with my home and student loans paid off ( FYI ).

I am interested in rentals ranging from $30,000 to $40,000. These properties are located in small farming communities. I have chose to target these areas in order to avoid high crime- war zones. although, drug problems do exist, the local law enforcement seem to be watching closely. Furthermore, the lots are large and the planning commisions in such towns are sometimes easier to deal with when trying to rezone to r2.

In terms of educating myself. I feel that alot of books on real estate investing are a load of crap. They seem to be just selling "hope" i.e. Robert Kyosaki. Managing your personal finances is common sense, live under your means ( buy what you need, not what you want). The best education is through frist hand experience.

Therefore, I am choosing to start with a small investment property for the experience. I was considering wholesaling but it just seems like BS without the wholseaer being able to cash out the motivated seller personally.

Thank you for your previous responses.... :wink:

Edited: 06/26/2010 at 07:33AM

Mark M.

Real Estate Investor · Modesto, California

26 posts
141 Influence

Icon_minipost Mar 11 '09, 03:34 PM

By the way... Mr. Investor and Nick

Both of you should sell investment books!

Keep in touch with yourselves!

Edited: 06/26/2010 at 07:33AM