Other People's Money

9 Replies

How can I use this process without losing. Having access to a large amount is scary especially when it's my first time. So much information I don't know where or the smart place to start that will keep me going on my own once the "other people's money" is gone. Please help me with advise. What would you do? Knowing what you know now, how should I start with this money?

Thank you!!  

Shawna, I agree with Paul.  I don't understand your situation and your question.

... BUT  ...

You have come to a great place to learn about real estate investing.  Keep reading and ask more questions.  There are a ton of nice, helpful people who have been where you are now.  Ask.

Thank you Paul & Kevin. I have funds available to me but I'm so overwhelmed by what to do for fast cash using OPM. That's my only option at this point. I want to get my foot in the door & start getting experience. 

What did you want to do "before" you had money? What have you been studying up on and what aspect of REI interests you? Do you know your market? Do you want to fix n flip, buy & hold? You really have to give alot more details before anyone can help you!

Have you any experience?

- Char

I had to go look at your profile and you say you're interested in flipping. I would suggest going to the top of this page, click on LEARN tab and listen to all the podcasts...that should definately give you an idea. Also join you local REIA group and you can also go to meetup.com and search your area for an REI group.

Networking is very important, collect business cards and find out what other investor's want and fill that need.

Shawna, 

That's great that you have access to capital/money from investors. But, I agree that it's best to have a concrete example of what you plan to do with it. Just wondering, did you already present a plan to your investor(s)? Or did they already say they would find any type of venture that you wished to pursue? You will really need to have a solid plan for how you will invest/use this money. Even if your investor is not asking for this. Also try to think of as many exit strategies as possible. 

For example if you are planning to flip a house..if you can't flip it for whatever reason (market changes,etc)  ..then is it possible to rent the house for a while? Will the market rent support all the expenses? 

I think it's good you are asking these questions though rather than just jumping into something. 

Char Prado,

I was in the oil field before my career change. REI interests me because even when it's bad I can still have a cash flow and still be stable. I did not have that in the oil field. I'm learning the marketing now, as I reply back! As far as flipping houses, I have not as of yet. I need one that requires very little due I'm still learning and I don't want to get in over my head. So, I need to start very small for the first few flips. And experience I have none under the belt. I'm learning through my questions and researching. I clicked on the tab above, the podcasts are amazing!!! I love them. I have gotten so much information. Definitely very helpful. Thank you very much for replying to my message. I greatly appreciate your response.

Joseph M.

Wow!!!!! No the investors did not ask for a plan. They gave me multiple ways of funding me and strongly suggested wholesaling because it's quick and a good way to start learning and a great way to venture out to find my path in real estate. I'm branching out for advise because there's so many paths to getting started. I've never made a deal, never made the first step to making a deal so I'm at the beginning stage of my career and I can not afford to mess this opportunity up. I understand I will make mistake and I will definitely learn the first time but I'm on my own and need a strong foundation to take my first step. As far as exit strategies, never crossed my mind. I will most certainly research that and find the best exit strategies so I won't be taken. Thank you very much for you have brought up things that have not crossed my mind. Sincerely.

Originally posted by @Shawna Machen :

Thank you Paul & Kevin. I have funds available to me but I'm so overwhelmed by what to do for fast cash using OPM. That's my only option at this point. I want to get my foot in the door & start getting experience. 

 Investing always starts with... what exactly is the specific goal you're looking to achieve?  Cash flow or capital gains or both? What's your risk tolerance? How much by what date?  Etc give us specifics.

Jon S.

Hello!! My goal.......at this point getting over this anxiety. I haven't made a deal yet but getting my ducks in a row is certainly harder than actually running a daycare (for real). Specifies, that's what I'm asking. Fast cash would be a goal to achieve now while I'm learning the do's & don'ts. Wholesaling, finding a FSBO, setting up a contract with the seller meanwhile find a buyer to buy the property (fast) get that contract going, get to the title company so I can get paid. I know it's not that simple but geeeez!!! You mentioned risk tolerance, what is that?

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