Thoughts on My strategy
Hello guys,
After reading a lot here in the forum, i was convinced that using my own money was not the best option for me to start flipping houses in a partnership with a friend. So after doing some thinking and analysis... i thought of this strategy
I have 50k Cash(which i'm not going to "use")
I have obtained 3 LOC's :
LOC 1 = 25k at 7.25%
LOC 2 = 25 at 8.25%
LOC 3 = 10k at 6.25%
I also took out a 13,000 credit card with no interest for first 15months.
My intentions are to take 25k from LOC 1, 10k From LOC3 and 15k from LOC 2 2 to finance my first deal.
Then i will use to the Credit card to pay the monthly payments for the LOC's which comes to me $1,000 a month, for the next 6 months(worse case).
This will leave me with out pockets expenses of : (for the credit card)
Month 1 = 20.00
Month 2 = 39.6
Month 3 = 58.81
Month 4 = 77.63
Month 5 = 91.08
Month 6 =114.20
Total: 406.28 over 6 months.
Projected profit would be no less than 10k..
Then i will use the projected profit to pay off or pat towards the highest interest LOC or even the credit card at that point...
I would appreciate any thoughts or suggestion. This is really my first time opening myself to using other people's money and getting myself into debt.
Thanks!