Updated almost 12 years ago on . Most recent reply
Financial Goal
Hello BP!
Well i wanted your idea and suggestions on a goal I have. I want to pay off a $7,000 loan in the next 5 months. If I were to use my money from my job to pay it off in 5 months I would have to use up my whole salary which isn't possible at the moment. So what should I do? Should I start wholesaling right now and possibly have a deal or two closed by then? Should I get my real estate license and sell houses? Any suggestions?
Most Popular Reply
Well, first let me say at 20 years old getting into real estate is great! I actually started at 21 :/ and didn't get my first deal till 22 :// You're so far ahead of the game it's crazy!
I'd say wholesale. I hate wholesaling because all you're doing is throwing away deals for quick change.
But the real question is what is your interest rate on the loan? Calculate your ROI for your wholesale deal and compare to your loan interest rate and I'm sure you will know where to put your money. If you pay off that loan and the interest rate is 6% annually, that is what you're investing your money at, 6%.
Let's say you spend 1,500 dollars to get one wholesale deal that nets you 7k in 1 month. Annualized ROI is CRAZY!
That, as you can easily see, is where you should be putting your money as your returns are higher.
Keep it up and good luck on the first one.