Help!! My Wife Only Gave Me $10K
Millbrook, AL · Member since 2015 · 20 posts · 12 votes
So here's my challenge. I want to start investing in RE but my wife isn't so thrilled. She says I can have $10K to start out with. If I can make some money using that she says I can have more. (Guess who pays the bills?)
So, I said to her, "How do you expect me to do anything with that?"
She says, "You're always on that Bigger Pockets website. Why not ask them?"
So here I am.
What do you all think? She says I have to do this alone. No cheating with Clubs, partnering up, etc.
Would you go for a mobile home? Vacant land? Can you make any money with $10K?
I think you're approaching this the wrong way. Rather than have to "prove" to your wife something, maybe you should involve her more and talk with her and make it a project both of you can get into. Otherwise it seems like a "you versus her" thing.
as long as it cash flows and preforms @Michael Meeks
It is pretty well documented on this site the traps at the lower price points.
What would you need for a down payment(25%) for a small class A/B SFH rental in your area? You won't get 25% return, but you should be able to show profit relatively soon.
If 10K isn't enough - look for seller financing. It isn't just houses on the sale market that I would target - also look at rentals that have been listed for a long time. Make sure you don't pay a premium in price for easy terms.
Hi Jon,
I currently live in Auburn and am a newbie also. Regarding mobile homes, I have seen the beginnings of students trying to sell them. I saw one just this past week where the asking price was $2400.00 although there was a requirement that the trailer had to be moved. If you wanted to go this low with trailers (which don't appreciate in value, but could be rented for a positive cash flow), just let me know and I'll keep an eye out for you.
I'm currently looking at a 3br, 2 ba brick home that is being offered through a short sale. The bank wants 41K, but I only have 31K cash to invest. There will have to be some minor rehab of the property, but the agent told me that it had rented in the past for $750 per month. This will be my first investment, and I'm having to educate myself also before just jumping into the pond.
There is also a REI investor's meeting in Montgomery every month. You can find it on facebook at www.facebook.com/groups/MontgomeryREIC/. Mark Jennings is the organizer and you can also send him an email at [email protected]. I went last month, and it was really great to network with all these experienced investors.
Take time away from consulting (since you have it) get into the real estate industry in a "real" job somehow (get licensed as something). Do that job for 3-6 months.
While you're doing it, learn the basics.
Buy a primary residence 3.5% down multifamily that needs work (this is completely legit as long as you leave a unit vacant and are using it, for say, repair work and the occasional overnight).
Do the work yourself to learn more of the skills and the trade.
Rent out the other units as you finish them.
Get more money from wife.
Win.
you have the luxury of time here.
By the way - the only way you get 25% return in 6 months (clock starting once you spend the $10k) is to:
1) Do tons of marketing over a long period of time first
2) Do wholesaling or a flip
3) Get lucky
I recommend my strategy above. the graveyard is paved with get rich quick types.
Hi Everyone!
WOW!! The response has been overwhelming. I am trying to take it all in.
There is one thing though that makes me curious. I hear so much about no money down. Maybe it is just because at this point I am uneducated but this sounds so much like a late night info commercial.
I am currently reading Mr. Hicks' post regarding land contracts. Is there a link or podcast specifically for no money down scenarios where it explains how you approach a potential property with no money down and don't come off sounding like a shyster?
Thanks again. You all are blowing me away!
Hi Jon,
REI is a cash or terms business.
Cash is a low wholesale offer, like the auto sales business. You make a profit when you buy. like 30% under kelly bluebook or more.
Terms acquitions are a lease w option, wrap, sub2, sub2 and a note, master lease, etc.
See my blog for buying on terms deals.
http://www.biggerpockets.com/blogs/3-reiskills-and...
When you acquire on terms, you need a good attorney for your area.
I coach buying on terms, then and selling on lease to own as an exit strategy, no credit rating, little cash needed.
Good luck!
Hey All!
Sorry I have been absent for a bit. Regular job and all. I want to thank each and every person who responded. I am going to focus on the wholesale side and see how things go. I have begun to put together a business plan and educating myself through the podcasts and articles on Bigger Pockets.
I will keep you updated.
Hey All!
Sorry I have been absent for a bit. Regular job and all. I want to thank each and every person who responded. I am going to focus on the wholesale side and see how things go. I have begun to put together a business plan and educating myself through the podcasts and articles on Bigger Pockets.
I will keep you updated.
With 10K to use why not get your real estate license?
With a license you can offer sellers multiple exit strategies - sell retail or sell to an investor. You also can look for properties(both on and off the MLS) for buyers.
As a new agent you will probably have to do a million in deals to get 10K(especially if you discount), however these will likely be primarily properties that would not work as investments. Also if you get a 100K listing and represent them to buy a 150K listing you are 1/4 way to that figure.
I would only caution that when you wholesale there is a different risk, you can market and not come up with anything, not a single solitary deal. If you take a property down, even though you may mismanage it, at least you have an asset to work with. As a wholesaler you need to create a deal out of thin air. Not trying to discourage you, I would (and do) wholesale too but it's just not always as easy as it looks.
Believe it or not $10k is a lot of money to have at your disposal! Be glad she didn't give you a few hundred. One thing that you could do that has worked well for me is to get a list of all the properties that did not sell over the past several years during the ressision (2008 to 2012 or 13). You can get that info from a Realtor. You will find that there are thousands of homes and other properties that didn't sell. The beauty of these sellers is they are past the point of denial (where they still think the home is worth more than it really is). They are often now past that point and many of them are willing to either sell at a major discount or possibly offer owner financing. Investors often waste time and money trying to work with people that aren't motivated to work with them. No one is more interested in selling than someone that has already had their property on the market.
One other thought on investing. Don't hesitate to send letters and call these people. I have made $50k in 2015 doing just that. I have found awesome deals for a number of my clients by calling and asking the simple question "are you still interested in selling?". You get the answer you are looking for quickly and can move forward or move on quickly.
mam to man advice, you need to be man in the house.
trying to prove anything is not gonna do you any good. (with that said)
if your credit is decent and have a steady job, it would be a good idea to attempt to get your a line of credit where its only in your name, so you will get to use that without her "permission".
when you will have good 20-30% to put your skin into a deal, work with a local private investor to fund you the rest of the project. If you are handy and can do some of rehab your self, that's a plus, that means less money out of the pocket, so that you stay below your "allowed" 10k.
it will be pretty tough and honestly nearly impossible for you to try to do any flips with just 10k, so you need to worth with bank or investor.
If she "said" you are spending too much on BP, then you must of read enough info and have general knowledge, so its time to put it all into action.
This will take a lot of sacrifice of your time, risk, and decision making on YOUR OWN, but its possible if you will be making final calls your self.
If you are not gonna be using her income or her credit, You can finally be your own Boss.
(sorry for honesty)
give me the 10000 i can buy a house and finish fixing up the other give you 600 s month for 2 years just for being the first guy to invest with me the return on that 10000 will be 14400 a whopping 69.4 percent return on your money in a 6 month time frame you make 3600 which is a 35 percent return on your money .. how can i do that you ask ,the answer is i rent rooms in philadelphia for 400 a month per house that's below market because i want to keep my tenants invest with me and make your wife proud
So here's my challenge. I want to start investing in RE but my wife isn't so thrilled. She says I can have $10K to start out with. If I can make some money using that she says I can have more. (Guess who pays the bills?)
So, I said to her, "How do you expect me to do anything with that?"
She says, "You're always on that Bigger Pockets website. Why not ask them?"
So here I am.
What do you all think? She says I have to do this alone. No cheating with Clubs, partnering up, etc.
Would you go for a mobile home? Vacant land? Can you make any money with $10K?
Hello and welcome! Just have conversation with her about your concerns and see how she reacts. Anyone would tell you that you can make it with 10K to start off with. No matter what you do you have got to convince her what you want to do. Just let her know that you will be able to help her out but it might take a little time. Good luck!
Just to throw down something different, why not invest the $10K in a REIT? I know of several publicly-traded REITS that yield over 5%. The type of REIT that you pick should be based on common-sense of course + your personal bias :-) For instance, for optimal demographic trends you might look at hospital/healthcare REITS, high-end luxury property REITS, or self-storage REITS. Just wanted to offer an option that is sometimes not considered.
Maybe this is where various religions could be of assistance. Find one that allows multiple wive's and you could seriously increase your capital base.
in Kansas City contact an agent named Jennifer Rios.
They have a brokerage that will take you from A to Z to complete a profitable deal that will get you started
I can share my $10,000 deal.
I had a self directed IRA and most of it was invested in something. But it had $10,000 available and I wanted to make some money. I knew that buying a $10,000 house was not really something I really wanted to do and while we were wholesaling, I just didn't put that together. My plan was that I wanted to lend the money out for a return.
So being an avid member of my local REIA (ok I run the place), I researched who all the movers and shakers were that were buying houses and selling them quickly and I settled on 3 wholesalers that moved junky houses. Not areas I would want to own, but they were experienced and didn't hold houses long - and they were my competition in some cases.
I emailed the 3 wholesalers with my pitch. I know you wholesale and don't usually take title to many houses. However if you had a deal that if you closed on it, would be more profitable or if you needed the fix up funds to make it more profitable, would that be attractive. My IRA has $10,000 that I would lend and if you could ever put that money to work, let me know.
One of them called me back and had a deal. He said he wanted to borrow the $10,000 for up to 3 months. He thought he could buy his house and then get it sold with in 3 months. His purchase price was $10,000. He would pay me $2,000 (might have been $3,000) for the use of my money. If he only used it a week my IRA earned $2,000 or if he had it for 3 months, my IRA earned $3,000.
Long story, even longer he sold the house in about 3 months. It was a rented house with a paying tenant so he earned some rent and I think he sold the house for $15,000 - paying him $3,000 and my IRA $2,000.
Work the numbers that is an over all 20% return and if you annualize it, well you don't need a calculator to know it was an AWESOME return.
Of course there are creative ways to buy houses with no money and you can put the $10,000 to work in marketing.
@Chris Simmons that's just wrong but it made me laugh.
My first investment. I bought 5 acres of vacant land or 10 k. I had them all resurveyed into 5-1 acre lots and sold them all for $7500-8k each owner financed. Each purchasers down payment paid for survey and closing with a title company and because I offered owner financing the lots sold very fast. It was the easiest $ I ever made. But the land was a perfectly dividable rectangle with even fro have wider than depth.
I didn't realize what a rare gem I had found at the time
Hey All!
Sorry I have been absent for a bit. Regular job and all. I want to thank each and every person who responded. I am going to focus on the wholesale side and see how things go. I have begun to put together a business plan and educating myself through the podcasts and articles on Bigger Pockets.
I will keep you updated.
That post was May last year. Time for that update?...
So here's my challenge. I want to start investing in RE but my wife isn't so thrilled. She says I can have $10K to start out with. If I can make some money using that she says I can have more. (Guess who pays the bills?)
So, I said to her, "How do you expect me to do anything with that?"
She says, "You're always on that Bigger Pockets website. Why not ask them?"
So here I am.
What do you all think? She says I have to do this alone. No cheating with Clubs, partnering up, etc.
Would you go for a mobile home? Vacant land? Can you make any money with $10K?
Hi,
I hadn't been back to review the posts since I've posted to this. I promise I wasn't trying to be dishonest about the CTL Loans Joel. But I did just find the email for the person who claimed such to me. I'd be more than happy to share their info. I by all means only try to bring real solutions to the table.
Would you appreciate that upon closing a commercial property that your initial investment/investment is insured against loss? Are you currently closing with a self liquidating loan? Is it interest only? When you close are you only getting one income stream from the property? Are you having to close with months of reserves?
We've negotiated to do just such with a well known institutional investor. They have agreed to use our method to assist in the purchase of properties. The chart below explains why. By insuring each purchase against default in the beginning you create more income.
I apologize I don't mean to get off the initial topic here Jon. We currently are looking at some properties that have low prices with a decent equity spread. However, it's all in the numbers as they say.
| Our loan request will make you more money. |
| Loan Terms Of $100,000,000.00 USD. |
| Loan Amount: $100,000,000.00 |
| Loan Interest Rate: 3% |
| Loan Term: 30 years |
| Yearly Loan Payment: $3,000,000.00 |
| Number of Payments: 30 |
| Cumulative Payments: $190,000,000.00 |
| Total Interest Paid: $ 90,000,000.00 |
| Original |
| Loan Terms Of $100,000,000.00 USD. |
| Loan Amount: $100,000,000.00 |
| Loan Interest Rate: 3% |
| Loan Term: 30 years |
| Monthly Loan Payment: $421,604 |
| Number of Payments: 360 |
| Cumulative Payments: $151,777,450 |
| Total Interest Paid: $ 51,777,450 |
I'm wondering why you need the $10,000 to make money. I have been wholesaling for years & started first few years with ZERO funds. There are many free or VERY inexpensive ways to market for deals, and most motivated sellers don't need any earnest money. Plus, remember this is a numbers game, and you will run into deals that can be seller financed or gotten subject to existing lien, with no money down. Fix these & flip, wholesale your contract, or put a renter in & build equity. Just a few ways to make money with little to no money.