BiggerPockets

I have $50k set aside for a real estate project with the goal of turning it into $75k by March 1st, 2010 .... I've started looking in my hometown for potential projects. Your thoughts/ideas/projects/input are appreciated in helping me make this happen. :idea:

Rich - I'll more than likely buy a bank REO here in Portland, fix it up and resale it to a first-time homebuyer as starter homes in good condition are a premium in this area because of the low interest rates and govt incentives. The winter months and FHA seasoning issues concern me but looks like the tax credit will be extended maintaining demand for turn-key starter homes. I walked away from one last week after inspection revealed major mold but have another I'll offer on tomorrow ... just thought I'd see what others come up with.

OK Ted- Outside the box thinking.(imagine that- MOLD in oregon!!) Is there anything magical about the date of March 1?

1. Do you have a buyers list , yet? If you can find homes like Jon is discussing, you may be able to make your 25K quicker by NOT rehabbing them. Wholesale them for 5-10K per deal. You could do lots of them.

2. Loan the $. You could get close to your 25K in 6 months by loaning on 32 day loans at 10% for the month. Or, transactional loans at 2-3% per turn. Trust me, there are borrowers out there, but it takes some work.

3. Buy a property like Jon K does, if it exists in Swampville! Mobile on acreage. Split the acreage and sell a piece, or bring in ANOTHER mobile to the new acreage, and then sell them as cash flow at a discount.

4. Find and buy a discounted note.(or combination on notes) Example-75K note for your 50K. Then go find a F&C home that seller will do owner financing. Convince seller he is better to take your seasoned note, than a brand new carryback. He actually will be. Now, re-fi or sell. Repeat, repeat, repeat.

These are 4 outside the box ideas. Are these 4 doable?

#1- currently being done by NUMEROUS BP members
#2-Being done by BP members, including Will and I.
#3-Being done by Jon K
#4-Done by me and explained in more detail in my book.(which I'm not peddleing and currently have no more copies!!)

When times are tough, thinking outside the box sets the successful apart from the common masses, imo. Rich in FL.

Jon- thanks for the vote. Chapter 3, Scoth Tape, Glue and Paste is where the examples on notes are. You better re-readit oR send to someone that will!!!tic, of course, my friend. Rich

Jon - yes, I think we are on the same page .... a big reason I posted the question as there aren't sub $40k Portland homes making it tough when trying to buy bank REOs for cash.

Rich - WOW! fantastic ideas and gives me some more things to consider for reaching (or exceeding) my goal .... you are the Godfather of this site - your insight and willingness to share is so much appreciated!

Thanks Jon and Rich for the replies and love to hear from others as well!! :D

I would recommend wholesaling, you could easily make much more than the 25k you plan to make and you won't need to risk your 50k.

Brian Haskins

Ted, were you successful with this goal? Details?

Ted
There is nothing wrong with Cash Flow. Grossing $9,000 a year on a $50,000 +/- investment is nothing to sneeze at. Even if you net zero, you should be able to sell it for around $75,000 in 2011. But my guess is that you net between $5000 and $6000 a year, after expenses.

With having the house free and clear, now you can look at the 4 things Rich pointed out. Personally, I would take out a 50% loan and buy something else.

Good luck.

With having the house free and clear, now you can look at the 4 things Rich pointed out. Personally, I would take out a 50% loan and buy something else.

Good job on step 1, Ted. Now increase your position with something else and the snow ball starts gathering speed. Rich

Thanks Mike M & Rich! I'm looking for the next deal to keep things rolling ...